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2018-08-15 Council Packet
KENAI CITY COUNCIL - REGULAR MEETING AUGUST 15, 2018 - 6:00 PM KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A.CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.Ordinance No. 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 D.2.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 D.3.Resolution No. 2018-47 – Approving A Twenty-Year Extension And Amendment To The Annual Rent And Lease Option Terms For The Lease And Concession Agreements For The Kenai Municipal Golf Course And Recreation Area Between The City Of Kenai And Griffin Golf Enterprises. (Administration) Resolution No. 2018-47.pdf E.MINUTES - None. F.UNFINISHED BUSINESS F.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. 1 Kenai City Council Meeting Page 2 August 15, 2018 (Council Member Knackstedt) [Clerk’s Note: This Item was Postponed to this Meeting from the August 1, 2018 Meeting; A Motion to Enact is On the Floor.] Ordinance No. 3034-2018.pdf G.NEW BUSINESS G.1.*Action/Approval – Bills to be Ratified. Payments over $15,000.pdf G.2.*Action/Approval – Purchase Orders Over $15,000 Purchase Orders over $15,000.pdf G.3.*Action/Approval – Non-Objection to the Issuance of a New Limited Marijuana Cultivation Facility License for Grateful Bud, LLC, License No. 16474. (Administration) Grateful Bud LLC.pdf G.4.*Action/Approval – Non-Objection to Issuance of a New Retail Marijuana Store License for Majestic Gardens, LLC, License No. 15393. (Administration) Majestic Gardens LLC.pdf G.5.*Ordinance No. 3037-2018 – Increasing Estimated Revenues And Appropriations In The Airport Special Revenue And Terminal Improvements Capital Project Funds, Accepting And Appropriating A Grant From The Federal Aviation Administration, Authorizing A Change Order To The Contract Of Wince Corthell-Bryson For Additional Design And Construction Administration Services, And Awarding A Construction Contract For The 2018 Airport Terminal Rehabilitation Project. (Administration) Ordinance No. 3037-2018.pdf G.6.*Ordinance No. 3038-2018 – Increasing Estimated Revenues And Appropriations In The Airport Special Revenue And Airport Improvements Capital Project Fund, Accepting And Appropriating A Grant From The Federal Aviation Administration, Authorizing Execution Of A Change Order To The Design And Engineering Contract Of Wince Corthell-Bryson For Construction Administration Services, And Awarding A Construction Contract To The 2018 Airport Fencing RehabilitationWith Access Control Project. (Administration) Ordinance No. 3038-2018.pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission H.3.Harbor Commission • Sub-Committee Update H.4.Parks and Recreation Commission H.5.Planning and Zoning Commission 07-25-18 P&Z Minutes - DRAFT.pdf 2 Kenai City Council Meeting Page 3 August 15, 2018 H.6.Beautification Committee H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager Mid-Month Reports.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2.Council Comments L.EXECUTIVE SESSION - None. M.PENDING ITEMS M.1.Action/Approval – Field of Flowers Signage (Council Member Knackstedt) [Clerk’s Note: This item was referred to the Beautification Committee and then the Airport Commission.] N.ADJOURNMENT INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review Purchase Orders between $2,500 - $15,000.pdf 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. 3 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. 4 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 5 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 6 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. 7 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 8 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. 9 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 47 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A TWENTY-YEAR EXTENSION AND AMENDMENT TO THE ANNUAL RENT AND LEASE OPTION TERMS FOR THE LEASE AND CONCESSION AGREEMENTS FOR THE KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA BETWEEN THE CITY OF KENAI AND GRIFFIN GOLF ENTERPRISES. WHEREAS, the Kenai Municipal Golf Course is an important asset to the City of Kenai providing recreational opportunities for residents and visitors; and, WHEREAS, the Kenai Municipal Golf Course was constructed on City-owned lands partially restricted by Section 6(f)(3) of the Land & Water Conservation Fund (LWCF), which requires the property to be maintained in perpetuity for public outdoor recreation; and, WHEREAS, on June 7, 1985 the City entered into a 20-year Lease and Concession Agreement with Richard Morgan for the construction and operation of a public golf facility with a 10-year option to extend; and, WHEREAS, on May 28, 1987, the City entered into a second Lease and Concession Agreement for an expansion of the Golf Course with Richard Morgan with similar terms to the first Lease and Concession Agreement; and WHEREAS, since the initiation of the Lease and Concession Agreements there have been various amendments and assignments, and the Lease and Concession Agreements are currently held by Griffin Golf Enterprises, LLC., and are set to expire on January 1, 2026 with an additional option to renew for an additional term of ten years; and, WHEREAS, Griffin Golf Enterprises has successfully managed and improved the golf course for the City of Kenai maintaining an 18-hole course with reasonable green fees; and, WHEREAS, the Leases provide for areas not being utilized for golf to be available to the public without charge for jogging and other uses not inconsistent with the primary use as a golf course; and, WHEREAS, Griffin Golf Enterprises identified needed improvements and upgrades required at the Kenai Municipal Golf Course over the next 20 years in excess of ordinary business income and requested an extension to the lease term and a reduction in the annual lease amount in order to complete required improvements in an economically reasonable manner; and, WHEREAS, Griffin Golf Enterprises has agreed that if an extension and reduction in the annual lease rate is approved, an investment of $120,000 in permanent land and building improvements on the premises will be completed within five (5) years from July 1, 2018 and payments to the City will decrease from approximately $8,000 per year for each Lease and Concession Agreement to $1.00 per year for each lease effective July 1, 2018; and, 10 WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such an amendment with Griffin Golf Enterprises, LLC, 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 Thirteenth Amendment to the Lease and Concession Agreement for the Kenai Municipal Golf Course and Recreation Area and in Twelfth Amendment to the Lease and Concession Agreement for the Kenai Municipal Golf Course and Recreation Area No. II as show in Exhibit A with a retroactive effective date of July 1, 2018; and, Section 2. That the Kenai City Manager is authorized to enter into such Amendments with Griffin Golf Enterprises, LLC; and, Section 3. That this resolution takes effect immediately upon adoption. ADOPTED 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 11 Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 1 of 5 THIRTEENTH AMENDMENT TO LEASE AND CONCESSION AGREEMENT KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA THIS Amendment to Lease and Concession Agreement is made as of the _____ day of ___________, 2018, by and between the CITY OF KENAI (City), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and GRIFFIN GOLF ENTERPRISES, LLC (Lessee), whose address is PO Box 289, Kenai, Alaska 99611. WITNESSETH WHEREAS, on June 7, 1985, the City entered into a lease with Richard I. Morgan, for City-owned lands identified as Exhibit “A”, a Preliminary Drawing for Field Survey to be replaced at a later date by a Field Survey, which lease was recorded at Book 265 Pages 720 - 731, on July 8, 1985, in the Kenai Recording District, Third Judicial District, State of Alaska (the Lease); and, WHEREAS, since June 7, 1985, the rights under the Lease have been assigned or transferred to various Lessees and the current Lessee is Griffin Golf Enterprises, LLC; and, WHEREAS, the Lease has been amended over the years, which amendments are recorded in the Kenai Recording District and are summarized as follows: Amendment to Lease, recorded at Book 362 Pages 004-005, on March 16, 1990, redetermining the green fees; Amendment to Lease, recorded at Book 395 Pages 749-753, on February 21, 1992, incorporated Exhibit “A” and “B” to supersede the Exhibits recorded with the original lease on July 8, 1985; Amendment to Lease, recorded at Book 411 Pages 642-646, on January 19, 1993, redetermining the green fees; Amendment to Lease, recorded at Book 472 Pages 950-952, on October 23, 1995, redetermining the green fees; Amendment to Lease, recorded at Book 515 Pages 816-820, on October 7, 1997, amending the lease rate; 12 Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 2 of 5 Amendment to Lease, recorded at Book 522 Pages 726-729, on February 10, 1998, revising the legal description as follows: Parcel A The unsubdivided remainder of Government Lots 1 and 2, located within the N1/2 N1/2 Section 3, T5N, R11W, S,M, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska containing 71.919 acres, according to Plat No. 97-105; Amendment of Golf Course Fees redetermining the green fees dated February 18, 2000 (Lessee and Lessor signed the Amendment; however it is not recorded in the Kenai Recording District); Amendment to Lease, recorded at 2005-003854-0, on May 11, 2005, redetermining the green fees; incorporating language that is required by the State Division of Parks and Outdoor Recreation and the National Parks Service; granting the City the right to enter and occupy the premises for a ski trail or trails; and, extending the expiration dates for additional ten-year terms to December 31, 2015; Amendment to Lease, recorded at 2007-004091-0, on April 20, 2007, redetermining the green fees; Amendment to Lease, recorded at 2010-003222-0, on April 23, 2010, redetermining the green fees; Amendment to Lease, recorded at 2013-004082-0, on April 29, 2013, redetermining the green fees; Amendment to Lease, recorded at 2015-010220-0, on November 10, 2015, redetermining the green fees; and, WHEREAS, the Lessee has requested the City amend certain terms of the lease in order to incentivize improvements and additional investment in the golf course and the City recognizes the benefit to the community of having a successful golf course providing recreational opportunity for it residents and visitors. NOW THEREFORE, the parties agree as follows: 1. The Lessee has the right to a twenty (20)-year lease extension beginning July 1, 2036 based on an investment of $120,000 in permanent land and building improvements on the premises to be completed within five (5) years from July 1, 2018. Within thirty (30) days after completion of the permanent improvements, the lessee shall submit 13 Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 3 of 5 written documentation acceptable to the City that the improvements have been completed as required. The City Manager shall make a report to the City Council of completion as soon as reasonably practical. If the entire investment of $120,000 is not fully completed by July 1, 2023, the terms and conditions of the lease will revert to the existing terms and conditions (including lese rate) as Amended by the Twelfth Lease Amendment and terminate on January 1, 2026 unless the Lessee opts to renew under the Twelfth Lease Amendment for an additional 10 years until 2036. 2. During the first five years of the lease, beginning July 1, 2018, the effective date of this Amendment, the Lessee shall either invest a minimum of $16,000 into permanent land and building improvements on the premises before July 1 of the following year or deposit $16,000 into a non interest bearing account. The account must be set up to allow withdrawals only by the Lessee with concurrence from the City for permanent land and building improvements on the premises. If any funds remain in the account, on July 1, 2023, the funds shall go to the City for payments in lieu of rent. Any investments of funds into permanent land and building improvements on the premises in excess of $16,000 in a year may be created towards any future year’s minimum investment or deposit amount. For example, if no improvements are made in year one, and $16,000 is deposited by Lessee into the account, and in year 2, $56,000 worth of permanent land and building improvements are made on the premises, the initial $16,000 deposited could be withdrawn for use towards the improvements, and no additional improvements or deposit would be required until year 4, when either an additional $8,000 worth of improvements would need to be made or an equal; amount deposited in the account. This Section (Section 2) in no way effects the requirement in Section 1 above that a total of $120,000 of improvements into permanent land and building improvements on the premises must be made within five years of July 1, 2018. 3. The Lessee shall pay annual rent of $1.00 per year for the first five (5) years, of the lease extension provided by this Thirteenth Lease Amendment beginning July 1, 2018 and expiring June 20, 2023. Beginning July 1, 2023, the Lessee shall pay annual rent equal to 10% of the amount of Ordinary Business Income plus any compensation paid to officers, partners or immediate family members exceeding $50,000 and not to exceed 8% of the true market assessed value of the raw land as determined by the Kenai Peninsula Borough Assessment. The Lessee agrees to submit annually a copy of its previous year’s Federal Tax Return or a request for an extension no later than May 31 for the City’s review and determination of payment due to the City. If the Ordinary Business Income exceeds $50,000, the City shall provide an invoice thirty (30) calendar days after receiving the Federal Tax Return from the Lessee. 4. The Lessee agrees to provide an Annual Operations Plan to the City Manager which includes a summary of business activity, report of number and type of green fees sold, competitive analysis of fees compared to other courses on the Kenai Peninsula Borough, schedule of events and programs (including youth programs), organizational structure and staffing, description of services, equipment and maintenance plan, goals and strategies for increased membership and revenue. The Annual Operations Plan must be submitted annually no later than November 31st for 14 Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 4 of 5 the City’s review. If the Annual Operations Plan shows three consecutive years of 10% or greater reduction in the number of green fees sold, the City Council shall have the option to terminate the Lease and Concession Agreement at its sole discretion. Should the City consider terminating the lease, it may consider whether factors beyond the Lessee’s control are responsible for the reduction in public usage, such as atypical weather or economic recessions. 5. Article XVII, titled “Lease Option”, of the Original Lease dated June 7, 1985, is deleted in its entirety. The Lessee shall not have a guaranteed right of first refusal to lease. 6. Except as expressly modified or stated herein, all other terms and conditions of the Lease (as amended) remain in full force and effect. CITY OF KENAI By: _________________________ Paul Ostrander Its: City Manager GRIFFIN GOLF ENTERPRISES, LLC By: __________________________ Name: ________________________ Its: ___________________________ Approved as to form: _______________________ Scott Bloom City Attorney 15 Thirteenth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area Page 5 of 5 State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this ____ day of ________, 2018, by Paul Ostrander, City Manager for the City of Kenai. ___________________________ Notary Public of Alaska My Commission Expires: _______ State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this ____ day of ________, 2018, by _________________________(Name), _________________________(Title) for GRIFFIN GOLF ENTERPRISES, LLC ____________________________ Notary Public of Alaska My Commission Expires: _______ RETURN TO: CITY OF KENAI 210 Fidalgo Avenue Kenai, AK 99611-7794 16 Twelfth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 1 of 5 TWELFTH AMENDMENT TO LEASE AND CONCESSION AGREEMENT KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA NO. II THIS Amendment to Lease and Concession Agreement is made as of the _____ day of ___________, 2018, by and between the CITY OF KENAI (City), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and GRIFFIN GOLF ENTERPRISES, LLC (Lessee), whose address is PO Box 289, Kenai, Alaska 99611. WITNESSETH WHEREAS, on May 28, 1987, the City entered into a lease with Richard I. Morgan, for City-owned lands identified as Exhibit “A”, a Preliminary Drawing for Field Survey to be replaced at a later date by a Field Survey, which lease was recorded at Book 311 Pages 134 - 143, on May 28, 1987, in the Kenai Recording District, Third Judicial District, State of Alaska (the Lease); and, WHEREAS, since May 28, 1987, the rights under the Lease have been assigned or transferred to various Lessees and the current Lessee is Griffin Golf Enterprises, LLC; and, WHEREAS, the Lease has been amended over the years, which amendments are recorded in the Kenai Recording District and are summarized as follows: Amendment to Lease, recorded at Book 362 Pages 002-003, on March 16, 1990, redetermining the green fees; Amendment to Lease, recorded at Book 395 Pages 754-756, on February 21, 1992, incorporated Exhibit “A” to supersede the Exhibit recorded with the original lease on May 28, 1987; Amendment to Lease, recorded at Book 411 Pages 639-641, on January 19, 1993, redetermining the green fees; Amendment to Lease, recorded at Book 515 Pages 816-820, on October 7, 1997, amending the lease rate; 17 Twelfth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 2 of 5 Amendment to Lease, recorded at Book 522 Pages 726-729, on February 10, 1998, revising the legal description as follows: Parcel B The unsubdivided remainder of Government Lots 3 and 4, located within the N1/2 N1/2 Section 3, T5N, R11W, S,M, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska containing 71.919 acres, according to Plat No. 97-105; Amendment of Golf Course Fees redetermining the green fees dated February 18, 2000 (Lessee and Lessor signed the Amendment; however it is not recorded in the Kenai Recording District); Amendment to Lease, recorded at 2005-003854-0, on May 11, 2005, redetermining the green fees; incorporating language that is required by the State Division of Parks and Outdoor Recreation and the National Parks Service; granting the City the right to enter and occupy the premises for a ski trail or trails; and, extending the expiration dates for additional ten-year terms to December 31, 2015; Amendment to Lease, recorded at 2007-004091-0, on April 20, 2007, redetermining the green fees; Amendment to Lease, recorded at 2010-003222-0, on April 23, 2010, redetermining the green fees; Amendment to Lease, recorded at 2013-004082-0, on April 29, 2013 redetermining the green fees; Amendment to Lease, recorded at 2015-010220-0, on November 10, 2015 redetermining the green fees; and, WHEREAS, the Lessee has requested the City amend certain terms of the lease in order to incentivize improvements and additional investment in the golf course and the City recognizes the benefit to the community of having a successful golf course providing recreational opportunity for it residents and visitors. NOW THEREFORE, the parties agree as follows: 1. The Lessee has the right to a twenty (20)-year lease extension beginning July 1, 2036 based on an investment of $120,000 in permanent land and building improvements on the premises to be completed within five (5) years from July 1, 2018. Within thirty (30) days after completion of the permanent improvements, the lessee shall submit written documentation acceptable to the City that the improvements have been completed as 18 Twelfth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 3 of 5 required. The City Manager shall make a report to the City Council of completion as soon as reasonably practical. If the entire investment of $120,000 is not fully completed by July 1, 2023, the terms and conditions of the lease will revert to the existing terms and conditions (including lese rate) as Amended by the Eleventh Lease Amendment and terminate on January 1, 2026 unless the Lessee opts to renew under the Eleventh Lease Amendment for an additional 10 years until 2036. 2. During the first five years of the lease, beginning July 1, 2018, the effective date of this Amendment, the Lessee shall either invest a minimum of $16,000 into permanent land and building improvements on the premises before July 1 of the following year or deposit $16,000 into a non interest bearing account. The account must be set up to allow withdrawals only by the Lessee with concurrence from the City for permanent land and building improvements on the premises. If any funds remain in the account, on July 1, 2023, the funds shall go to the City for payments in lieu of rent. Any investments of funds into permanent land and building improvements on the premises in excess of $16,000 in a year may be created towards any future year’s minimum investment or deposit amount. For example, if no improvements are made in year one, and $16,000 is deposited by Lessee into the account, and in year 2, $56,000 worth of permanent land and building improvements are made on the premises, the initial $16,000 deposited could be withdrawn for use towards the improvements, and no additional improvements or deposit would be required until year 4, when either an additional $8,000 worth of improvements would need to be made or an equal; amount deposited in the account. This Section (Section 2) in no way effects the requirement in Section 1 above that a total of $120,000 of improvements into permanent land and building improvements on the premises must be made within five years of July 1, 2018. 3. The Lessee shall pay annual rent of $1.00 per year for the first five (5) years, of the lease extension provided by this Twelfth Lease Amendment beginning July 1, 2018 and expiring June 20, 2023. Beginning July 1, 2023, the Lessee shall pay annual rent equal to 10% of the amount of Ordinary Business Income plus any compensation paid to officers, partners or immediate family members exceeding $50,000 and not to exceed 8% of the true market assessed value of the raw land as determined by the Kenai Peninsula Borough Assessment. The Lessee agrees to submit annually a copy of its previous year’s Federal Tax Return or a request for an extension no later than May 31 for the City’s review and determination of payment due to the City. If the Ordinary Business Income exceeds $50,000, the City shall provide an invoice thirty (30) calendar days after receiving the Federal Tax Return from the Lessee. 4. The Lessee agrees to provide an Annual Operations Plan to the City Manager which includes a summary of business activity, report of number and type of green fees sold, competitive analysis of fees compared to other courses on the Kenai Peninsula Borough, schedule of events and programs (including youth programs), organizational structure and staffing, description of services, equipment and maintenance plan, goals and strategies for increased membership and revenue. The Annual Operations Plan must be submitted annually no later than November 31st for the City’s review. If the Annual Operations Plan shows three consecutive years of 10% or greater reduction in 19 Twelfth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 4 of 5 the number of green fees sold, the City Council shall have the option to terminate the Lease and Concession Agreement at its sole discretion. Should the City consider terminating the lease, it may consider whether factors beyond the Lessee’s control are responsible for the reduction in public usage, such as atypical weather or economic recessions. 5. Article XVII, titled “Lease Option”, of the Original Lease dated June 7, 1985, is deleted in its entirety. The Lessee shall not have a guaranteed right of first refusal to lease. 6. Except as expressly modified or stated herein, all other terms and conditions of the Lease (as amended) remain in full force and effect. CITY OF KENAI By: _________________________ Paul Ostrander Its: City Manager GRIFFIN GOLF ENTERPRISES, LLC By: __________________________ Name: ________________________ Its: ___________________________ Approved as to form: _______________________ Scott Bloom City Attorney 20 Twelfth Amendment to Lease and Concession Agreement Kenai Municipal Golf Course and Recreation Area No. II Page 5 of 5 State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this ____ day of ________, 2018, by Paul Ostrander, City Manager for the City of Kenai. ___________________________ Notary Public of Alaska My Commission Expires: _______ State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this ____ day of ________, 2018, by _________________________(Name), _________________________(Title) for GRIFFIN GOLF ENTERPRISES, LLC ____________________________ Notary Public of Alaska My Commission Expires: _______ RETURN TO: CITY OF KENAI 210 Fidalgo Avenue Kenai, AK 99611-7794 21 CANDLELIGHT DRCANDLELIGHT DRPENNY CI TERESA STSHELIKOFF STSOUTH TINKER LNNORTH TINKER LNCOLONIAL DR LINWOOD LNLAWTON DR AUK ST DEEPWOOD CTCOLONIAL DRSILVERSMITH LNPINEWOOD LNLINWOOD LNKIANA LN JAMES STDOLLY VARDEN STKULILA PLK E N A I S P U R H W Y STEELHEAD CT CROW CT KAKNU WAYCHINITNA PLCHINIAK STCOTTAGE CICASTLE STLANTERN CI KAKNU WAY COPPER LNBAKER STCOPPER LNCANDLELIGHT DRKIANA LN HIGHBUSH LNLAWTON DR GLACIER STBAKER STRAINBOW DRHIGHBUSH LNBLARNEYROY WAYSALMON STMISTY HAVEN LNRANDEE LN HIGHBUSH LNBAKER STCIBIGHORN CI PEBBLE BEACH CT INDIANWELLS CT BRANNIGANCIGRAVEL STSWIRES RDaccess/water easement2006-011437-066' VACATE ROW2009-006759-02006-011437-0 2009-011422-0 VACATE 50' ROW1605 210401401205 10 041031215 1217 811 1303 1304 1009 1107 11091105 100820110041006 1108 10611210410211010051003 10410510061002 10 041031215 1217 1200 1202 1204 2132141003 1005 1007 1011 1013 1109 1113 30530330430430393 9 1 2061206 110711031105 208 1012 116 114117119 130213001100 1031105 1205 1104 1307 13081306 1201201 1203 1002 3023002041002 10081 0 0 6 2121014 110410041006100810101012 3051405 1400132213201316 16452142082062042023061009110711091105 100820110041006 1108 10610410211010051003 10510061002 411407324 311 411407410408408B408A9057324 311 30320920730320920713101310 1131131203 1002 302300204206 207205 203206 207205 2031200304942330210031007100910111013110911131201 10151011 2102071008 1010 205206100710051003 100920420310041002 10081 0 0 6 2121014 110410041006100810101012 1112 1121141154109007409907240740740740691364034044039168401903 4021202 1204 2132141003 1005 1007 1009 101310091013 10151011 2102071008 1010 205206100710051003 10092042031004 1208 2082061206 110711031105 208304306303304305303 30430430393 9 19423 3021003 1007 1009 4011109 11119135 11101106 1204 316314313313409408405403320318 317 31 51203 811 813 901815 903 905 810 812 105104104107106106109108108111110110113112919993 2 8 31231192313093109 2 6 3 310313 309308309311309312 30830630630730730630731030593 5 9 3999 2 4 5 92014169025409408405403320318 317 31 51203410408408B408A9057 1303 1304 1061061051021403 1407 1303302 1304 21420820641690253051208 2081011021061650164016451303 1616 307410900740990724073061303302 1304 18121808380405459460455456 1061051021403 14071405407407406913640340440391684019034024014061109111191351110110612043163143133139199932831231192313093109263310313309309311309312308306306307307306307310305935939992459201 109201202202205110202206322 313 322 313 813 901815 903 905 810 812 105104104107106106109108108111110110113112112114115116 114117119 130213001100 1031105 1205 1104 1307 13081306 1202012022042012022043043063034054051051031606202205 1091081071021511101 1515 1500 1405 1407 1406 1121101101081082042021141061301 10213141312114106130110213141312 1314 1720 1706180117081716180317101714180518061712 1712 1711 1720 1706180117081716180317101714180518061712 1712 171113094081606 1303 1304 1303 1304 1510 1512 1602 1604 4104894804794071509 469470380405459460455456 4584033101652 4031630 1305 1307 1311 13101308 1502 3083091506 1507 13094081606 18121808181018101510 1512 1602 1604 4104894584033101652 40316301616 3091305 1307 1311 13101308 1502 3083093061506 4804794071509 4694701675 1675 167013061306 3033023021305 1307 1309 1311 3002042081308 2122082052041507 406404410 1301 1302 312310408402406404410 1301 1302 31231040840217111051031606202 1091081071511101 1515 1500 1405 1407 1406 1121101101081081063033023021305 1307 1309 1311 3002042081308 2122082052041310 1316 1318 13121314207 140013221316 4131902 1904 3154143144131902 1904 1906 315414314214214201695751200695751200206203305108 1091317 1908 1700 1720168016601640 3141031501 814 201Lot 1B Lot 1A . 850 ' Date: 8/7/2018 The information depicted hereon is for graphic representationonly of the best available sources. The City of Kenai assumes no responsibility for errors on this map. 1 in ch equals 833 feet KENAI MUNICIPALGOLF COURSE ANDRECREATION AREA PARCEL AGovernment Lots 1 & 2Section 3, T6N, R11W PARCEL BLot 3, Portion of Lot 4,Section 3, T5N, R11W, S.M. Parcel AParcel B EXHIBIT A 22 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Paul Ostrander, City Manager DATE: August 3, 2018 SUBJECT: Resolution No. 2018 - 47 – Kenai Municipal Golf Course Lease and Concession Amendments Lease History On June 7, 1985, the City entered into a 20-year Lease and Concession Agreement with Richard Morgan for the construction and operation of a public golf facility with a 10-year option to extend and, in 1987, the City entered into a second Lease for an adjacent area with similar terms to the first Agreement. The Lease(s) required construction of a regulation 9-hole golf course, putting green, driving range, clubhouse building, roads and parking, and a watering system at a value not less than $300,000. Annual rent was set on a schedule at $500 for each area the first year and escalating to $7,500 for the 11th through the remainder of the Lease. An additional 10-year term was granted with an annual rent of $5,000 per year for each area. On October 21, 2015, the City Council passed Resolution 2015-60, authorizing an amendment that provided a second 10-year term with a 10-year option to extend and a lease rate of $8,000 per year for each area beginning in 2016, for a total of $16,000 for both areas with an increase of 2% annually. Land Status / Restrictions The Kenai Municipal Golf Course was constructed on lands partially restricted by Section 6(f)(3) of the Land & Water Conservation Fund (LWCF), which requires the property to be maintained in perpetuity for public outdoor recreation. In 1998, the City requested the restriction on adjacent lots located within the Five Irons Heights Subdivision be lifted and placed on the City-owned golf course, which was processed by the Division of Parks and Outdoor Recreation and approved by the National Park Service (NPS), the LWCF grantor agency, resulting in restrictions under Section 6(f)(3) of the LWCF for the entirety of the Kenai Municipal Golf Course 23 Page 2 of 2 Resolution No. 2018 - 47 – Kenai Municipal Golf Course Lease and Concession Amendments The Kenai Golf Course Lease(s) are uniquely restricted when compared to other General Fund Land leases: 1. The land is protected by the LWCF and carries administrative requirements performed by the City, such as annual inspection and reporting. 2. All leases or concessions for LWCF 6(f)3 areas must clearly indicate the area is to be operated for public outdoor recreation purposes in compliance with provisions of the LWCF grant program; require that the area be identified as being publicly owned and operated as a public outdoor recreation facility; require all fees charged by the lessee/concessioner to be competitive with similar private facilities; and make clear that compliance with all Civil Rights and accessibility legislation is required. 3. The Lease provides for areas not being utilized for golf to be available to the public without charge for jogging and other uses not inconsistent with the primary use as a golf course. The City has a separate agreement for use of ski trails and use of the parking lot. Proposal under Resolution 2018-47 On June 5, 2018, Griffin Golf Enterprises, LLC identified needed improvements and upgrades required at the Kenai Municipal Golf Course over the next 20 years in excess of ordinary business income and requested a reduction in the annual lease amount and a lease extension option. Administration met with representatives of Griffin Golf Enterprises to consider several alternatives to address the proposals and future maintenance and capital needs of the golf course. Griffin Golf Enterprises, LLC provided information on Facility Management Agreements between other municipal organizations and private management organizations and ultimately requested an amendment to the annual rent to $1.00 per year. In recognition of the uniqueness of this property, as well as to maximize the benefits of the Kenai Municipal Golf Course for the residents of the City, and provide a lease structure that creates the best environment for long term success, Administration has worked with the Lessee to recommend amendments to the leases that reduce the annual rent to $1 / year and extend the term of the lease 20 years upon completion of new investments of $120,000 in permanent land and building improvements. The 20-year term extension was calculated utilizing the recently adopted on-Airport investment table. Resolution No. 2018-47 provides for continued recreational opportunities and improvements at the Kenai Municipal Golf Course. The proposed amendments also ensure that both the City and the Lessee benefit from the continued success of the Golf Course. After improvements are completed in the first five years of the lease, 10% of any ordinary business income in excess of $50,000 would be due to the City not to exceed 8% of the true market assessed value of the raw land as determined by the Kenai Peninsula Borough Assessment. In order to ensure funds are invested in improvements, the current annual rent will be deposited by the Lessee into a non- interest bearing account to be used for the proposed improvements. Thank you for your consideration. cc: Griffin Golf Course, LLC 24 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. 25 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. 26 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. 27 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) 28 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 29 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 30 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 31 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, 32 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 33 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 34 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 35 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 36 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 37 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. 38 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. 39 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. 40 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 41 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. 42 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, 43 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 44 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. 45 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 46 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. 47 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 48 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Scott Bloom, City Attorney DATE: August 9, 2018 SUBJECT: Amendment Memorandum for Ordinance No. 3034-2018 – Repealing and Replacing Chapter 16.05 Special Assessment Districts. ____________________________________________________________________________ This memorandum provides recommended amendments to Ordinance 3034-2018. I request Council move the following amendments: 1. Amend section 16.05.120(h)(4) on page 12 of 17 of the Ordinance by clarifying the signatory requirements for trusts: (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. must be accompanied by a certification that the trustee(s) has the authority to sign on behalf of the trust. 2. Amend section 16.05.140(f) on page 14 of 17 of the Ordinance by maintain decisions consistent with current city code at the time the assessment is levied: (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. in any manner consistent with applicable City Ordinances. 3. Amend the Special Assessment Flow Chart to remove and replace Resolution with Ordinance in KMC 16.05.095(e) notice inclusions. Thank you for your consideration 49 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 Ordinance 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 50 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: AUGUST 15, 2018 VENDOR DESCRIPTION PERS PERS INTEGRITY JANITORIAL JULY SERVICE AT CITY HALL PRECIOUS JANITORIAL JULY SERVICE AT LIBRARY PRECIOUS JANITORIAL JULY SERVICE AT TERMINAL PRECIOUS JANITORIAL JULY SERVICE AT POLICE PRECIOUS JANITORIAL JULY SERVICE AT VISITOR CENTER INVESTMENTS VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 81,527.94 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. 51 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: AUGUST 15, 2018 VENDOR DESCRIPTION DEPT. POLICE VEHICLES LIGHTING & ALASKA SAFETY ACCESSORIES POLICE UNITED ROTAR Y BRUSH CORP CASSETTE BROOMS AIRPORT ALASKA GARDEN & PET SUPPLY UREA -20 TONS DELIVERED AIRPORT INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O. # -DEPT. ACCOUNT AMOUNT MACH INERY & EQUIPMENT 15,773.70 OPERA TING SUPPLIES 21 , 150 .00 OPERATING SUPPLIES 17 ,600 .00 REASON AMOUNT TOTAL PO AMT 52 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross – Police Chief DATE: August 9, 2018 SUBJECT: Alaska Safety Purchase Order Exceeding $15,000 ______________________________________________________________________ The purpose of this memo is to request authorization for a purchase order in the amount of $15,773.70 to Alaska Safety for police vehicle accessories to equip two new police vehicles that will be arriving in October. Those accessories include: push bumpers, light bars, wiring kits, consoles, gun locks, partitions, transport seats, window barriers, computer mounts, etc. The accessory order has been developed in conjunction with the City Shop, which will be installing the equipment on the vehicles. Alaska Safety holds the State contract to provide those accessories to the State of Alaska, they have been a reliable source for those products in the past, and there are not local vendors that provide that equipment. The FY19 Annual Budget approved by the City Council includes funding for these vehicle accessories in the police machinery and equipment account. Thank you for your consideration. 53 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander - City Manager FROM: Mary L. Bondurant – Airport Manager DATE: August 9, 2018 SUBJECT: Purchase Order – United Rotary Brush Co. The purpose of this memo is to request approval to purchase broom bristles from United Rotary for the two runway brooms. This is replenishing broom bristles for the 2018-2019 winter season. Three vendors were asked for quotes: United Rotary $ 7,050.00 per set delivered ($21,150 total) Yukon Equipment $ 9,113 per set delivered ($27,339 total) MB Equipment – does not make the cassette brooms to fit the machines United Rotary’s price was found to be fair and reasonable. Thank you for your consideration. 54 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander - City Manager FROM: Mary L. Bondurant – Airport Manager DATE: August 9, 2018 SUBJECT: Purchase Order – Alaska Garden & Pet The purpose of this memo is to request approval to purchase prilled urea (bulk) from Alaska Garden & Pet. This is replenishing stock on hand for the 2018-2019 winter season. This urea meets the FAA specifications for use in runway deicing. Three vendors were asked for quotes: Alaska Garden & Pet – 2 ton $17,600 delivered Univar – 2 ton $25,000 delivered Wilbur Ellis – no response Alaska Garden & Pet’s price was found to be fair and reasonable. Thank you for your consideration. 55 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: August 2, 2018 SUBJECT: New Limited Marijuana Cultivation Facility The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new Limited Marijuana Cultivation Facility License: Applicant: Grateful Bud, LLC Owner: Jennifer Huffman D/B/A: Grateful Bud, LLC Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. A review of City accounts has been completed and the applicant has satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the request for the Limited Marijuana Cultivation Facility License will be forwarded to the Alcoholic & Marijuana Control Office and the applicant. Your consideration is appreciated. Attachments 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 56 "Vtl/~e with a Past City with a Future" 210 Fidalgo Avenue, Kenai , Alaska 99611-7794 Telephone : 907-283-7535 /FAX: 907-283-3014 MEMORANDUM TO: FROM : DATE : RE : David Ross, Police Chief Terry Eubank, Finance Department Scott Bloom , Legal Department Willie Anderson, Lands Management Elizabeth Appleby, C ity Planner ~mie Heinz, City Clerk July 20 , 2018 Limited Marijuana Cultivation Facility l':l:tJr:d mr 1992 The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new license : Applicant: Owners : D/B/A: Grateful Bud , LLC Jennifer Huffman Grateful Bud , LLC Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review records maintained by your department (i.e . water and sewer billings, lease/property payment history, citations , etc.) by the above reference applicant and advise if obligations have been met. Mark the appropriate box below. If obligations have not been met, attach information to this memorandum indicating what obligations are outstanding and how the obligations can be cured . Please let me know if you have any questions. Thanks . 1.!.eJice Department 'P k initials ~ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The appli~t)as outstanding obligations and an additional page has been attached . 2;..!i_~ce ~initials U1'i have reviewed all records for my department and the applicant is current on obligations or obligations do not exis t. 0 The}"l ica nt has outstanding obligations and an additional page has been attached . 3~1 initials WI ha ve re vi ewed all records for my department and the applicant is current on obligations or obl igations do not exi st. 0 The applicant has outstanding obligations and an additional page has been attached . 4~ds Management ~ initials ~ I have re viewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outsta.ptjlng obligations and an additional page has been attached. 5 . Planning and Zoning t::.t'\ initials (lJ I ha ve reviewed all re cords for my departm ent and the applicant is cu rrent on obligations or obligations do not exist. Orhe applicant has outstan ing o ligations and an additional page has been attached . Re turned t o Clerk's office : _"7-+-"d'__._-+--..._._.._ 57 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 July 20, 2018 City of Kenai Attn: Jamie Heinz VIA Email: jheinz@kenai.city jblankenship@kpb.us micheleturner@kpb.us License Number: 16474 License Type: Limited Marijuana Cultivation Facility Licensee: GRATEFUL BUD LLC Doing Business As: GRATEFUL BUD LLC Physical Address: 1817 Sunset Blvd Kenai, AK 99611 Designated Licensee: Jennifer Huffman Phone Number: 907-513-1152 Email Address: jhuffman_907@hotmail.com ☒ New Application ☐ Transfer of Ownership Application AMCO has received a completed application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under 3 AAC 306.025(d)(2). To protest the approval of this application(s) pursuant to 3 AAC 306.060, you must furnish the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of the date of this notice, and provide AMCO proof of service of the protest upon the applicant. 3 AAC 306.010, 3 AAC 306.080, and 3 AAC 306.250 provide that the board will deny an application for a new license if the board finds that the license is prohibited under AS 17.38 as a result of an ordinance or election conducted under AS 17.38 and 3 AAC 306.200, or when a local government protests an application on the grounds that the proposed licensed premises are located in a place within the local government where a local zoning ordinance prohibits the marijuana establishment, unless the local government has approved a variance from the local ordinance. This application will be in front of the Marijuana Control Board at our August 15-17, 2018 meeting. Sincerely, Erika McConnell, Director amco.localgovernmentonly@alaska.gov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eceived by AMCO 6.26.18 60 Received by AMCO 6.26.18 61 Received by AMCO 6.26.18 62 Received by AMCO 6.26.18 63 Received by AMCO 6.26.18 64 Received by AMCO 6.26.18 65 Received by AMCO 6.26.18 66 Received by AMCO 6.26.18 67 Received by AMCO 6.26.18 68 Received by AMCO 6.26.18 69 Received by AMCO 6.26.18 70 Received by AMCO 6.26.18 71 Received by AMCO 6.26.18 72 Alco hol and Ma riju ana Con trol Office 550 W 7'1 ' Avenue , Suite 1600 Ancho rage, AK 99501 m a rijua na .li ce n ~im:@a la s ka .gov https;//w ww .co mme rcc.a l;iska .gov /we u/ci mrn Pho ne: 907 .269.0350 Ala ska M arijuana Co ntrol Boa rd Form MJ-01: Marijuana Establishment Operating Plan Section 6 -Transportation and Delivery of Marijuana and Marijuana Products Review th e requi rem e nts under 3 AAC 3 0 6.750, and ident ify how t he proposed est abl is hment will m eet the listed requ i re m ents . Applica nts should be abl e to an swer "Yes" to all item s below. Marijua na Tra n sp ortati o n : The ma r iju an a es t ab li shment from wh ich a sh ip m ent o f ma rijuana o r marijua na p ro d uct o r iginates w ill ensure t hat any ind i vid ual t rans porting m ar ij u ana sha ll have a ma rijuana handler permit required und er 3 AAC 306. 70 0 Th e mari1u ana est ab lish m ent t hat originat es the tran spo rt of any ma ri juana o r marijuan a p roduct wi ll use the mari juan a inventory tracki ng sys tem to reco rd the t y pe, amou nt, and w eight of mari j uana o r m arijua n a produ ct b ei ng transported , t h e name of t he transp o rter, t he tim e o f departure il nd expect ed d elivery . a nd the m ake , mod el, a nd li ce n se plate numbe r of t he t ran sporting ve hicl e Th f' m ar iju an a esta bl is hment t h at o r ig inates the tra nsp o rt o f any marijuana o r m arijuana product w i ll ensu r e t ha t a complete printed t r ansport ma nifest o n a for m prescr ib ed by th e boa r d mu st be kep t w it h the m ar ijuana or m ar ijuana product at all t i mes during transpo r t [)uri ng tran sport, any marijuana o r mar ij uana p roduct w ill be in a sealed package o r co ntaine r in a lock ed, safe, and secur e st o rage compart ment in the veh icle t ra nsporti ng t h e m arijuana o r m arijua na p roduct, and t he se <.1lc d p ackage will no t be o p ened duri ng transport t\ny ve hicle t r ansporting mar ij u a na o r m arijuan a product will travel d ir e ctly f rom t h e shipp ing manju an a es tablish m e nt t o t h e receivin g m ar ij u ana es t a blishment, and will not m ake any unneces sa r y stops i n bet w een excep t t o d eliver or pick up mariju an a o r m arijuana pr oduct at <m y other license d m ariju an a es tablis hment Whe n the m ar ijuana es t ab lis hment rece ives mar ijuana o r ma rijuana product from ano ther licensed ma r ijuana est ab lish m ent, t he r ecipient of the shipment wi ll use t he m arijuana inven t ory tracki ng system to r eport the t ype. amount, an d weight of m;:i riju an a o r marijuana product received The m ar ijuan a es t ablish m ent w ill r efuse t o accep t any shipment of ma rijua na or ma r ijuana produc t t hat is not accompanied by th e transport m an if es t I Fonn M J-01 ] (rev 02/12/2016) JAN 3 0 ZUlH Yes No D D D D D D D 73 Received by AMCO 6.26.18 74 Received by AMCO 6.26.18 75 Alcohol and Marijuana Control Offi ce r;:,o W 7'" Avenue, Suite 1600 An c:hor;ige, AK 9950 1 rnari j uana .I icen si ng(iilalaska .gov https://www.comme r c:e.aldska .gov/w eb/arnco Phone: 907.269.03 5 0 Alaska Marij uana Control Board Fo rm MJ -01: Marijuana Es tabli shme nt Operating Plan No ildv c r tise m en t tor marijuana or marijuana product w ill be placed : W ithin one t housand feet of the perimeter of any child-centered facility, including a school, childcare facility, o r other facility p r ovidi ng services t o children, a p l ayground or recreation center, a public park, a library, or a game arcade that is open to persons unde r the age of 21 On or in a public transit vehicle or public transit shelter On or in a publicly o wned or operated property Within 1000 feet of a substance abuse or treatment facility On a campus for post-secondary education Signa ge a nd Promotion al Materials : I understand and ag r ee t o follow the limitations for signs under 3 AAC 306.360(a) The retail marijuana stor e will not use giveaway coupons as promotional materials, o r cond uct promotional activities such as games or competitions to encou rage sa le of marijuana or marijuana products All advertising for marijuana o r any marijuana product will contain the warnings required u nder 3 AAC 306.360(e) [form M J-01] {r ev 02/12/2016) Agree Di sagree DD D D DD DD DD Agree Di sag re e DD D D D D 76 Received by AMCO 6.26.18 77 Alasl<a Marijuana Control Board Operating Plan Supplemental Alcohol and Marijuana Control Office 550 W 7'h Avenue . Suit.:-1600 Anchorage, AK 99501 marijuanaJicensing@alaska .gov https://www.commcrce.ala!>ka.gov/wcb/amco Phone: 907.269.0350 Form MJ-04: Marijuana Cultivation Facility What is this form? This operating plan supplemental form is required tor all applicants seeking a milrijuana cultivation facility license and must accompany the Marijuana Establishment Operating Plan (Fonn MJ-01). per 3 AAC 306.020(b)(ll). Applicants should review Chapter 306: Articte 4 of the Alaska Administrative Code. This form will be used to document how an applicant intends to meet the requirements of those regulations. If your business hils a formal opcr<ltinp, plan, you may include a copy of that operating plan with your application, but all fields of t his form must still be completed per 3 AAC 306.020 and 3 AAC 306.420(2). What additional information is required for cultivation facilities? Applicants must identify how the proposed establishment will comply with applicable regulations regarding the following : • Prnhibil ions • Cultivation plan o Odor control o Testing procedure and protocols • Security This form must be submitted to AMCO's main office before any marijuana cultivation facility license application will be considered complete. Section 1 -Establishment Information Fnter information for the business seeking to be licensed, as identified on the 1icen5e app lication . 1047'-( Licensee: Grateful Bud LLC License Number: licenseType: Limited Marijuana Cultication Facility Doing Business As : Grateful Bud :. LLC PremisesAddress: 1817 Sunset Blvd City: Kenai State; ALASKA ZIP: 99611 [Form MJ-04) jrev 02/05/2016) Page lof8 78 Received by AMCO 7.9.18 79 Alaska Marijuana Control Board Alcohol and Marijuana Control OfficC' 550 W 7'" /\venue, Suite 1600 An chor;:ig~, AK 99501 marijuana.l1ccn r.ing@alaska .eov ht IPS :/lwwv1 .comm('rcc .a l aski:l.t:ov /web/amco Ph o ne : 907.26 '.J.0350 Operating Plan Supplemental Form MJ-04: Marij uana Cultivation Facility Describe the mari juana cultivation facility's growing medium(s) to be used: Th e fo llowing mediums will be used at Grateful Buds facil ity. Soil (fo x farms ocean forests) Rocwol will be used for cloning and rooting medium Hydroton will be used for drainage of medium Perlite will be used for areati on of medium Clone X wi ll be used for t aki ng cuttings Describe t he marijuana cu lt ivation faci li ty's fertili ze rs , chemicals, gases, and delivery systems, including carbon dio>Cide management, to be used: Hu mboldt Mas1 c r A & Masle r B fe rtalize r sys lcm will b e 1Jsed in con ju ncl ion w ith Humboldls S onic Bloom. No g as or C02 de livery sys l eni i~ b eing u sed a: Gr;itP.ful B uels . T he c:hcm1 cri l analysis for lhe master A&B icrtal 1z.P.r 1;; a s follows Si"o ·Naler soluble N11rogcn 2% wal er solub le Phospho r ous 6% water so luble Pot;-iss1 ur.i Humboldts Sonic Bloom cherrical analys is is as follows: 5 1% water soluble P hosphate :;4% water soluhle. Potasr1 ALL MSOS OR S OS will be avarl ah le u pon req uest Describe the ma rijua na cult ivation facility's irriga tion and waste water systems to be used: Irrig ation will consist of a la rge storage ta nk for holding of waste water. W aste \Nater will then be moved via submersi ble wate r pump and pumpe d from 1 OOgal ta ble tanks tolarge hold ing tank where it will be complet ely recycled and ren ewed via Rev e r so Osmosis and returned back to table tanks. All wate r will be recycled a nd re used w ith no waste. I I I I [Form M J·04) jr ev02/05/2016) JAN 3 0 ~ P13gE 3 or s 80 Alaska M arijuana Control Board Operating Plan Su ppleme ntal Alcohol and M arijuanci Control Office 5 50 W 7'" Avenue, Suite j600 An chor;igr:, Al< 9 9501 m;:;riju;:in;:i .l1 ce n~ing@alaska .go v http s ://w ww.c om111eru~.<tl<1 s ka .v.uv/web/amco Phone: 907 .269.0350 Form MJ-04: Marijuana Cultivation Facility Describe the marijuana cultivation facility's waste disposal arrangements: Grateful Buds will give the board at least 3 days notice in METRIC before maki ng plant waste unusable and disposing of it. Grateful Buds will store waste in la rge plastic bags, then placed into covered totes, in a confined space within the grow area, without the use of any solvents. It will then be made un usable by mixing equal parts of non compostable materials. Al l sol id waste will be ground up. properly packaged and disposed of at a permitted C l ass I or Class II landfill w illing to accept the waste. The operator of t he landfill will be contacted prior to delivering the waste confirming the waste will be accepted and to comply with the possible additional requirements . Section 4 -Odor Control Review th e r equirements under 3 AAC 306.430, .:ind identify how the proposed premises will meet the listed requiremen t. Describe the odor control m ethod(s) to be used and how t he marijuana cultivation faci lity will ensure that any marijuana at the facility does not emit an odor that is detectable by the public from outside the facility: Grateful Buds air filtration will far exceed required volumes of air changes needed to prevent any oder being emmited from the facility. The designated 1,247sq ft of facility has an air volume of roughly 12,000Cubic Feet. Our Extra large Carbon Air F ilters can flow an impressive 1400CFM EACH=2800cfrn of possibl e air flow total Our Twin 10" Hyper-Max exhaust fans draw 1,050CFM EACH. CFM=(Cubic Feet A Min) =2. 100CFM of extractio n pe r min Runn ing our air filtration system will scrub the entire volume of air in our facility 1 O times an hour preventing any detectable odors from leaving the premises . A l so the amount of negative pressure("Vaccum") produced by the fans drawing suction on a restricted airspace will entirely prevent any odors from being able to escape to be detected by the publi c as per 3 AAC 306.430 (c) (2) [Form MHJ4) (rev 02/05/2016) 81 ,._\\p.,A:.v_·4 ,.( ,., ... ""~---· C"!), .c:-.· ~ · o ~C t c · ·~. ">. • :· /~ _,.-' -.... { 1>~ -v• l. ·~}' Alaska Marijuana Co n trol Board Alcoh o l and Mari juana Con trol Office 550 W 7'" Ave nu e, Suite 1600 Anc.hor;ige, AK 99 50 1 man r u;:in;:i .h ce n<;ing(@ a l a ~l\a.gov h tt p s://www.cornrnc rce .a l a~ka .~ov/we b /a nico Ph one: 907.26').0350 Operating Plan Sup plem ental Form MJ-04: M arij uana Cul t iva t io n Facility Section 5 -Testing Procedure and P rotocols Rev iew the requirements under 3 AAC 306.455 and 3 AAC 306 .465, and identify how the proposed premises will m ee t the listed require ments. Applicants should be a ble to answer "Agree" to the item below. I understand and agree that: Th e board will or the director shall from time lo tirnC! r eq uire the marijuana cultivation facility to provid e samples ot the growing medium, so il a mendments, fert ilizers. crop production aids, pestici d es, o r water for rilndom compliance check s Describe the testing procedure and protocols the marijuana cultivation faci lity will follow: Ar,rcc D rs agr ee 00 Grateful Buds will provide a sampleof each harvested batch of marijuana produced at its facility to a marijuana testing facilityand will not sell or transport any marijuana until a ll labratory testing requi red under 3 ACC 306.645 has been comple ted. Grateful Buds will collect a random , homogeneous sample for testing by segragating harvested marijuana into batches of i ndividual strains of bud and flower, the n selecting a random sample from each batch in an ammount required by the marijuana testing facility. Grateful Buds will then designate aan individual responsible for collecting each sample; the owner/licensee w ill prepare a signed statement to the marijuana testing faci lity. The owner/licensee will maintain a copy as a busSOiness record under 3AAC 306. 755 and transport the sample to the marijuana testing facilities licensed premises in compliance with 3 ACC 306.750. Grateful Buds will segregate the entire batch from which the testing sample was selecte d until the marijuana testing facility reports the results from its tests. During this period of segregation. GB's shall maintain th e batch in a secure. cool , and dry placeto prevent the marijuana from becoming contaminated or loosing its efficency. GB's will not sell or t ra nsport any marijuana from the segregated batch until the marijuana testing faci lity has completed its testi ng, and provided those r esu lts in writing, to Grateful Buds . GB's shall maintain th e testi ng results as part of its business books and records . Grateful Buds shall provide at the request of board or the director , samples of its growing medium, for random compliance checks. GB's shall bear all the costs for testing. GB's shall co ll ect the test sampl es and will cooperate to facilitate the collection of the sam les. [Form MJ-04] (r ev 0 2/0 5/2016) 82 Alaska Marijuana Control Board Op era ting Plan Sup plemental Alcohol and Marijuana Co ntrol Office 550 W 7'" Avenue, Suite 1600 An cho rage , AK 99501 marijuana.licensing@alaska .go v ht:t ps://www.com mcrcc.alask a.gov/wcb/amco Phon e : 907.269.0350 Form MJ-04: Marijuana Cultivation Facility Section 6 -Security Rev i ew the req u irem e nts under 3 AAC 3 06.430 Jnd 3 AAC 306 .470-3 AAC 3 0 6.475. ilnd idcntifv how the propo se d or cm iscs will meet the listed requi r ements. Applican t s sh ou ld be able to an swe r "Agree" to the two item s b elow. The marijuana cultivation facility applicant has: Agree Di sagree Rci.ld ilnd u n d crstilnds ilnd agrees t o t h e pac kag ing of marij uana r equ irements under 3 AAC 306.470 0 D Read and understands an d agrees to t he labe ling o f marijuana req ui r ements under 3 AAC 305.1175 El D Restrict ed Access Area (3 AAC 306.430): Yes No Will the m arijuana cu ltivati on facility include outdoor prod uction ? 00 If "Ves", describe the outdoor structure(s) or the expanse o f open or clear ground fully enclosed by a physical barr ier: fO)f<i'~s iM'• , u -~-·-- [Form MJ-0 4 ) (r ev 0 2/05/2016) JAN 3 0 2018 Pa ge 6 of 8 83 Alaska Marijuana Control Board Operating Plan Supplemental Alc ohol and Mari juana Con t rol Office 550 W 7'1' Ave nue, Suite 1600 Anchorage, AK 99'.>0 l m;irijuana.l1 censing@alas ka.gov https:ljwww.cornrnerce .ala ska.gov/web /amcu rhone: 907.269.0350 Form MJ-04: Marijuana Cultivat ion Facility Describe the method(s) used to ensure that any marijuan a at the marijuana cultivation facility cannot be observed by the j.lUb lic from outside the facility: The facility will have sealed rooms for all stages of cultivation, which in themselves are self contained ins id e hermeticly sealed rooms; inside the facility where they are completely out of any possible view of the pub li c . The public will not be able to view o r observe the inside of the facility from outside th e facility . I certify that as a marijuana cultivation facility, I will submit monthly reports to the Department of Revenue and pay the excise tax required under AS 43.61.010 and 43.61.020 on all marijuana sold or provided as a sample to a marijuana establishment, as required under 3 AAC 306.480. I declare under penalty of perjury that I have examined this form, including all accompanying schedules and statements, and to t he b e" ".' mr know'iT~d "to be true. ,o.,ect. and com pl ete k'°''""'f je_t'ln~&r_ H~«Mtt_r--. __ Printed name Subsc ribed and sworn to before me this 3o day of ~Q~\A._C.'-...!~ __ , 20 \_?_. ~~~ Notary Publi c in and fc}~tate of Ala ska K. Waterbury [Form MJ-04) (rev 02/05/2016) 84 Alaska Marijuana Control Board Operating Plan Supplemental Alcohol and Marijuana Control Office 550 W 7'h Avenue, Su itl· 1600 Anchorugc. AK 99501 muriju;mu.liccnsing(a);i l ;isk;i.gov http s ://www.commerce.al a ska.eov /web/ am co Phone: 907 .269 .035 0 Form MJ-04: Marijuana Cultivation Facility (Additional Space as Needed): [Form M J-04) (rev 02/05/2016) JAN 3 0 2016 Page 8 of 8 85 Received by AMCO 6.26.18 86 Received by AMCO 6.26.18 87 Received by AMCO 6.26.18 88 Received by AMCO 6.26.18 89 Received by AMCO 6.26.18 90 Received by AMCO 6.26.18 91 Received by AMCO 6.26.18 92 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Office of the Borough Clerk Johni Blankenship, MMC Borough Clerk Office of the Borough Clerk July 27, 2018 Sent via email: amco.localgovernmentonly@alaska.gov Records & Licensing Supervisor Alcohol & Marijuana Control Office RE: New Application for Limited Marijuana Cultivation Facility Business Name : Grateful Bud LLC License Location : Kenai/1817 Sunset Blvd License No. : 16474 Dear AMCO Staff, This serves to advise that the Kenai Peninsula Borough (KPB) has reviewed the above referenced application and has no objection to the issuance of the license. Should you have any questions, or need additional information, please don’t hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk cc: jheinz@kenai.city 93 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: August 2, 2018 SUBJECT: New Retail Marijuana Store The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new Retail Marijuana Store License: Applicant: Majestic Gardens, LLC Owner: Deniece Isaacs D/B/A: Majestic Gardens, LLC Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. A review of City accounts has been completed and the applicant has satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the request for the Retail Marijuana Store License will be forwarded to the Alcoholic & Marijuana Control Office and the applicant. Your consideration is appreciated. Attachments 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 94 "Villa!Je with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO: FROM : DATE: RE: David Ross, Police Chief Terry Eubank, Finance Department Scott Bloom , Legal Department Willie Anderson , Lands Management eA Elizabeth Appleby, City Planner ~'-!i amie Heinz, City Clerk July 30 , 2018 LiR1ited Marij11ana Ci •ltivatio14facility- l!!.\1 ,1111.' 1992 The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new license: Applicant: Owners: D/B/A: Grateful Bud Jennife ff man ful Bud , LLC J.fd1c;s-f1'l 6 (}ftJ.JM, L..~ 1:::>eh l f te ..z:,s,cutu~ s ~·e.S--h L 6~~ UL Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review records maintained by your department (i.e . water and sewer billings , lease/property payment history, citations, etc.) by the above reference applicant and advise if obligations have been met. Mark the appropriate box below. If obligations have not been met, attach information to this memorandum indicating what obligations are outstanding and how the obligations can be cured. Please let me know if you have any questions. Thanks. 1. Police Department ,..; 2 initials Q{ have re viewed all re cords for my department and the applicant is current on obligations or obligations do not exist. 0 The ap~,?;has outstanding obligations and an additional page has been attached . 2. Finance --/--.t:.-!-initials "{;] I have re viewed all records for my department and the appli cant is current on obligations or obligations do not exist. 0 The ralicant has outstanding obligations and an additional page has been attached . 3. Legal initials · ~ I have re viewed all re co rds for my department and the applicant is current on obligations or obligations do not exist. 0 The applicant has ou~ing obligations and an additional page has been attached . 4. Lands Management initials !Zl 1 ha ve reviewed all re cords for my department and the applica nt is current on obligations or obligation s do not exi st. Orhe applicant has outstf£.g obligations and an additiona l page has been attached. 5. Planning and Zoning initials fil ha ve rev iewed all records for my department and the applicant is current on obligation s or obligations do not exi st. Orhe applicant has outsr ing bli ati ons and an additiona l page has been attached. Returned to Clerk's office : 2' I 95 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 July 30, 2018 City of Kenai Attn: Jamie Heinz Via Email: jheinz@kenai.city Kenai Peninsula Borough Attn: Borough Clerk Via Email: jblankenship@kpb.us micheleturner@kpb.us License Number: 15393 License Type: Retail Marijuana Store Licensee: Majestic Gardens llc Doing Business As: MAJESTIC GARDENS LLC Physical Address: 12656 Kenai Spur Hwy Kenai, AK 99611 Designated Licensee: Deniece M Isaacs Phone Number: 907-398-3267 Email Address: majesticgardens@alaska.net ☒ New Application AMCO has received a completed application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under 3 AAC 306.025(d)(2). To protest the approval of this application(s) pursuant to 3 AAC 306.060, you must furnish the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of the date of this notice, and provide AMCO proof of service of the protest upon the applicant. 3 AAC 306.010, 3 AAC 306.080, and 3 AAC 306.250 provide that the board will deny an application for a new license if the board finds that the license is prohibited under AS 17.38 as a result of an ordinance or election conducted under AS 17.38 and 3 AAC 306.200, or when a local government protests an application on the grounds that the proposed licensed premises are located in a place within the local government where a local zoning ordinance prohibits the marijuana establishment, unless the local government has approved a variance from the local ordinance. This application will be in front of the Marijuana Control Board at our August 15-17, 2018 meeting. Sincerely, Erika McConnell, Director amco.localgovernmentonly@alaska.gov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eceived by AMCO 7.24.18 98 Received by AMCO 7.24.18 99 Received by AMCO 7.24.18 100 Received by AMCO 7.24.18 101 Received by AMCO 7.24.18 102 Received by AMCO 7.24.18 103 Received by AMCO 7.24.18 104 Received by AMCO 7.24.18 105 Received by AMCO 7.24.18 106 Received by AMCO 7.24.18 107 Received by AMCO 7.24.18 108 Received by AMCO 7.24.18 109 Received by AMCO 7.24.18 110 Received by AMCO 7.24.18 111 Received by AMCO 7.24.18 112 Received by AMCO 7.24.18 113 Received by AMCO 7.24.18 114 Received by AMCO 7.24.18 115 Received by AMCO 7.24.18 116 Alcohol & Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 marijuana.licensing@alaska.gov https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350Alaska Marijuana Control Board Cover Sheet for Marijuana Establishment Applications What is this form? This cover sheet must be completed and submitted any time a document, payment, or other marijuana establishment application item is emailed, mailed, or hand-delivered to AMCO's main office. Items that are submitted without this page will be returned in the manner in which they were received. Section 1 – Establishment Information Enter information for the business seeking to be licensed, as identified on the license application. Licensee:Majestic Gardens llc License Number:15393 License Type:Retail Marijuana Store Doing Business As:MAJESTIC GARDENS LLC Physical Address:12656 Kenai Spur Hwy City:Kenai State:AK Zip Code:99611 Designated Licensee: Deniece M Isaacs Email Address:majesticgardens@alaska.net Section 2 – Attached Items List all documents, payments, and other items that are being submitted along with this page. Attached Items: OFFICE USE ONLY Received Date: Payment Submitted Y/N: Transaction #: MJ-03 Operating Plan Supplement retail marijuana store 1-6pp Received by AMCO 6.14.18 117 Received by AMCO 6.14.18 118 Received by AMCO 6.14.18 119 Received by AMCO 6.14.18 120 Received by AMCO 6.14.18 121 Received by AMCO 6.14.18 122 Received by AMCO 6.14.18 123 Alcohol & Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 marijuana.licensing@alaska.gov https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350Alaska Marijuana Control Board Cover Sheet for Marijuana Establishment Applications What is this form? This cover sheet must be completed and submitted any time a document, payment, or other marijuana establishment application item is emailed, mailed, or hand-delivered to AMCO's main office. Items that are submitted without this page will be returned in the manner in which they were received. Section 1 – Establishment Information Enter information for the business seeking to be licensed, as identified on the license application. Licensee:Majestic Gardens llc License Number:15393 License Type:Retail Marijuana Store Doing Business As:MAJESTIC GARDENS LLC Physical Address:12656 Kenai Spur Hwy City:Kenai State:AK Zip Code:99611 Designated Licensee: Deniece M Isaacs Email Address:majesticgardens@alaska.net Section 2 – Attached Items List all documents, payments, and other items that are being submitted along with this page. Attached Items: OFFICE USE ONLY Received Date: Payment Submitted Y/N: Transaction #: Premises Diagrams notarized Diagram 1 diagram 2 & 5 combo diagram 3 diagram 3A diagram 3B diagram 3C diagram 4 diagram 2&5 combo (duplicate) MJ-02, 2pages 8pages Received by AMCO 7.23.18 124 Received by AMCO 7.23.18 125 Received by AMCO 7.23.18 126 Received by AMCO 7.23.18127 Received by AMCO 7.23.18128 Received by AMCO 7.23.18 129 Received by AMCO 7.23.18 130 Received by AMCO 7.23.18 131 Received by AMCO 7.23.18 132 Received by AMCO 7.23.18 133 Received by AMCO 7.23.18 134 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Office of the Borough Clerk Johni Blankenship, MMC Borough Clerk Office of the Borough Clerk August 1, 2018 Sent via email: amco.localgovernmentonly@alaska.gov Records & Licensing Supervisor Alcohol & Marijuana Control Office RE: New Application for Retail Marijuana Store Business Name : Majestic Gardens LLC License Location : Kenai/12656 Kenai Spur Hwy License No. : 15393 Dear AMCO Staff, This serves to advise that the Kenai Peninsula Borough (KPB) has reviewed the above referenced application and has no objection to the issuance of the license. Should you have any questions, or need additional information, please don’t hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk cc: majestigardens@alaska.net 135 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3037-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT SPECIAL REVENUE AND TERMINAL IMPROVEMENTS CAPITAL PROJECT FUNDS, ACCEPTING AND APPROPRIATING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION, AUTHORIZING A CHANGE ORDER TO THE CONTRACT OF WINCE CORTHELL-BRYSON FOR ADDITIONAL DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES, AND AWARDING A CONSTRUCTION CONTRACT FOR THE 2018 AIRPORT TERMINAL REHABILITATION PROJECT. WHEREAS, the Kenai Municipal Airport terminal building was constructed in 1968, expanded in 1983, and renovated in 1989 and 2001; and, WHEREAS, the 2017 Phase Two Airport Master Plan identified deferred maintenance items, and near and midterm facility requirements needed to rehabilitate the terminal building; and, WHEREAS, upgrading and modernizing the terminal building will enhance the experience of visitors and citizens travelling to and from the Kenai Municipal Airport; and, WHEREAS, it is anticipated that approximately 88% of this project will be grant eligible through the Federal Aviation Administration with the remainder of project costs to be provided by the City of Kenai; and, WHEREAS, sufficient fund balance exists to provide the Airports approximate 12% share of the project; and, WHEREAS, XX bids were received and XXXXXXXXXXXXXXX, is the lowest responsive bid; and, WHEREAS, the change order request by Wince Corthell-Bryson for additional design and construction administration services has been reviewed by City Administration and determined to be fair and reasonable; and, WHEREAS, the recommendation from City Administration is to award the contract for terminal rehabilitation to XXXXXXXXXX for the total cost of $XXX, XXX and execute a change order to the engineering and design contact of Wince-Corthell-Bryson by $XXX, XXX for a total amount of $XXX, XXX. WHEREAS, acceptance of the grant from the Federal Aviation Administration, award of a contract to XXXXXXXXXXXX, the lowest responsive bidder, for rehabilitation of the terminal, and execution of a change order to the design and engineering contract of Wince Corthell-Bryson is in the best interest of the City. 136 Ordinance No. 3037-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 grant funding for $XXX, XXX from the Federal Aviation Administration and to execute a grant agreement and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 2. That the estimated revenues and appropriations be increased as follows: Airport Special Revenue Fund: Increase Estimated Revenues – Appropriation of Fund Balance $X, XXX, XXX Increase Appropriations Terminal – Transfer to Other Funds $X, XXX, XXX Terminal Improvements Capital Project Fund: Increase Estimated Revenues – Transfer from Airport Special Revenue Fund $X, XXX, XXX FAA Grant X, XXXX, XXX $XX, XXX, XXX Increase Appropriations – Construction $ XX, XXX, XXX Engineering XXX, XXX $XX, XXX, XXX Section 3. That the City Manager is authorized to execute a construction contract with XXXXXXXXXXX for $XXX, XXX. Section 4. That the City Manager is authorized to execute a change order to the design and engineering contract of Wince-Corthell-Bryson in the amount of $XXX, XXX for additional design and construction administration services. Section 5. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. 137 Ordinance No. 3037-2018 Page 3 of 3 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of September, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: August 15, 2018 Enacted: September 5, 2018 Effective: September 5, 2018 138 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant – Airport Manager DATE: August 6, 2018 SUBJECT: Ordinance No. 3037-2018 – Airport Terminal Building Rehabilitation Project ____________________________________________________________________________ City and Airport administration have been working diligently with FAA officials over the past months to strategize funding options for the rehabilitation of the airport terminal building. The Airport received notification on July 19, 2018 that the FAA intends to fully fund the project with conventional airport improvement program monies in FY18; however, this also meant that the project had to be at least 95% designed, advertised, grant application submitted based on the bids, and the City to be administratively prepared to sign the grant offer by September 4, 2018. This opportunity is allowing us to bid the complete project and not push back or phase the project. This project will start in October 2018 with a completion date of December 1, 2019. This project has been a long time coming and will modernize the terminal, address deferred maintenance items, near and midterm facility requirements, and allow passengers a more enjoyable experience when travelling through the Kenai Airport. This project is currently being advertised with bid openings on August 27, 2018. Due to the time constraints, the dollars related to the construction and engineering costs are blank. A substitute ordinance will be presented at the September 5, 2018 City Council meeting with the actual costs based on the bids. Thank you for your consideration. 139 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3038-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT SPECIAL REVENUE AND AIRPORT IMPROVEMENTS CAPITAL PROJECT FUND, ACCEPTING AND APPROPRIATING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION, AUTHORIZING EXECUTION OF A CHANGE ORDER TO THE DESIGN AND ENGINEERING CONTRACT OF WINCE CORTHELL-BRYSON FOR CONSTRUCTION ADMINISTRATION SERVICES, AND AWARDING A CONSTRUCTION CONTRACT TO THE 2018 AIRPORT FENCING REHABILITATION WITH ACCESS CONTROL PROJECT. WHEREAS, the access control system installed in the airport perimeter fence is outdated and unrepairable; and, WHEREAS, airport access control is a fundamental requirement of 49 CFR Part 1542 in order to deter and prevent unauthorized access to airports; and, WHEREAS, replacing and upgrading the current control system will establish a reasonable level of security for ramp and runway access and ensure the airport meets this requirement; and, WHEREAS, the Federal Aviation Administration agreed that the replacement of the access control and the design services are grant eligible; and, WHEREAS, the Administration has received confirmation these services are grant eligible for 93.75% FAA reimbursement, $XXX,XXX, with the remaining 6.25% of project costs, $XXX,XXX to be provided by the City of Kenai; and, WHEREAS, XX bids were received and XXXXXXXXXXXXXXXX, is the lowest responsive bidder; and, WHEREAS, the change order request by Wince Corthell-Bryson for construction administration services has been reviewed by City Administration and determined to be fair and reasonable; and, WHEREAS, the recommendation from City Administration is to award the contract for fencing rehabilitation with access control to XXXXXXXXXXXX for the total cost of $XXX,XXX and execute a change order to the engineering and design contact of Wince-Corthell-Bryson by $XXX,XXX for a total amount of $XXX,XXX, and; WHEREAS, acceptance of the grant from the Federal Aviation Administration, award of a contract to XXXXXXXXXXXX, the lowest responsive bidder, for fencing rehabilitation with access control, and execution of a change order to the design and engineering contract of Wince Corthell-Bryson is in the best interest of the City. 140 Ordinance No. 3038-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 grant funding for $ XXX,XXX from the Federal Aviation Administration and to execute a grant agreement and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 2. That the estimated revenues and appropriations be increased as follows: Airport Special Revenue Fund:\ Increase Estimated Revenues – Appropriation of Fund Balance $XX,XXX Increase Appropriations Other Buildings & Areas– Transfer to Other Funds $XX,XXX Airport Improvements Capital Project Fund: Airport Fencing Rehabilitation with Access Control Project Increase Estimated Revenues – Transfer from Airport Special Revenue Fund $ XX,XXX FAA Grant XXX,XXX $XXX,XXX Increase Appropriations – Construction $XX,XXX Engineering XX,XXX $XXX,XXX Section 4. That the City Manager is authorized to execute a construction contract with XXXXXXXXXXX for $XXX,XXX. Section 5. That the City Manager is authorized to execute a change order to the design and engineering contract of Wince-Corthell-Bryson in the amount of $XXX, XXX for construction administration services. Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. 141 Ordinance No. 3038-2018 Page 3 of 3 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5 day of September, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: August 15, 2018 Enacted: September 5, 2018 Effective: September 5, 2018 142 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant – Airport Manager DATE: August 3, 2018 SUBJECT: Ordinance No. 3038-2018 – Airport Fencing with Access Control Project ____________________________________________________________________________ The Airport received FAA approval to advertise for the above project on July 31, 2018 and gave granting authority with FY18 airport improvement funds. This project will replace an obsolete access control system on nine gates in the airport’s perimeter fence. This is a much needed project that will ensure there is a reasonable level of security preventing unauthorized access to the airfield and allow the Kenai Airport to meet the requirements of 49 CFR Part 1542. This project is currently being advertised with bid openings on August 27, 2018. Due to time constraints related to getting a grant application in and a grant offer by September 5, the dollars related to the construction and engineering costs are blank. A substitute ordinance will be presented at the September 5, 2018 City Council meeting with the actual costs based on the bid. Thank you for your consideration. 143 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING JULY 25, 2018 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA VICE CHAIR BOB SPRINGER, PRESIDING MINUTES 1. CALL TO ORDER Commission Vice Chair Springer called the meeting to order at 7:02 p.m. a. Pledge of Allegiance Commission Vice Chair Springer led those assembled in the Pledge of the Allegiance. b. Roll Call Commissioners present: Vice-Chair R. Springer, D. Fikes, K. Peterson, G. Greenberg, J. Halstead, V. Askin Commissioners absent: Chair J. Twait Staff/Council Liaison present: City Planner E. Appleby, Deputy City Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison H. Knackstedt A quorum was present. c. Agenda Approval MOTION: Commissioner Askin MOVED to approve the agenda and Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused absences – Jeff Twait. 144 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 2 of 4 July 25, 2018 2. *APPROVAL OF MINUTES: June 27, 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 – None. 7. UNFINISHED BUSINESS – None. 8. NEW BUSINESS a. *Resolution No. PZ2018-35 - Application for a Home Occupation Permit to operate a gunsmithing, repair, and selling of firearms business from the existing garage located at 115 Haida Dr., submitted by Andrew Whipple, 115 Haida Dr., Kenai, AK 99611 The rules were suspended and consideration was taken to amend the motion of the Consent Agenda. MOTION TO AMEND: Commissioner Peterson MOVED to amend the Consent Agenda, removing item 8(a) and Commissioner Askin SECONDED. There were no objections; SO ORDERED. City Planner Appleby reviewed the staff report and explained how the applicant’s intended use met the development requirements for a Home Occupation Permit. Appleby noted that City Staff recommended the Planning and Zoning Commission approve the application for a Home Occupation Permit to operate a gunsmithing, repair, and selling of firearms business from the existing garage on this residential property, subject to the following conditions: • Applicant must comply with all Federal, State, and local regulations, including, but not limited to regulations imposed by the Bureau of Alcohol, Tobacco, and Firearms; • Prior to operation, the applicant must submit a copy of the federal firearms license issued by the Bureau of Alcohol, Tobacco, and Firearms to the City of Kenai; and • If the Fire Marshall for the City of Kenai deems it necessary to perform a fire inspection, pursuant to KMC 14.20.230(h)(2), the premises shall be inspected for compliance with the Fire Code (KMC 8.05). Failure to comply with the Fire Code (KMC8.05) shall be grounds for the suspension or revocation of the home occupation permit. MOTION: Commissioner Peterson MOVED to adopt Resolution No. PZ2018-35 with staff recommendations and Commissioner Askin SECONDED the motion. It was noted a clerical error was made only on the agenda and the resolution number should be PZ2018-17. Staff noted the number change in the motion by Commissioner Peterson. There were 145 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 3 of 4 July 25, 2018 no objections to the correction being reflected in the motion. Vice Chair Springer opened the floor for public testimony; there being no one wishing to be heard, the public testimony was closed. Clarification was provided that there would not be any use of heavy machinery, alleviating any noise concerns. The applicant also clarified that he did not apply for a manufacturing or reloading license and the business would be focused on adjusting sights, cleaning, polishing, and tampering. He added that he did not intend to move in the near future, as it would result in having to re-apply for his license to operate the business. VOTE: YEA: Springer, Halstead, Peterson, Fikes, Askin, Greenberg NAY: MOTION PASSED UNANIMOUSLY. b. Commercial Marijuana Facility Update – Statistics on facilities permitted by the Planning and Zoning Commission City Planner Appleby reviewed the Marijuana Facility Statistics as provided in the packet with maps showing the location of all facilities, manufacturing facilities, retail facilities, and cultivation facilities within Kenai. She noted two marijuana facilities were denied approval. The standard cultivation facility, Lone Fox Farms was deemed incompatible within the residential zoning district while the other facility, Majestic Gardens did not meet buffer requirements. Neither of them were included on the maps. Appleby additionally noted the Kenai Police Department received no calls for service at any of the addresses for permitted marijuana facilities. She further reported that the discussion of State of Alaska onsite use regulations was delayed and expected in August. Appleby noted that City staff recommended the Planning and Zoning Commission not spend time at present considering updates to the Kenai Municipal Code related to marijuana facilities until after the State’s discussion on onsite consumption was determined. The City Planner was thanked for the report and update. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Knackstedt reviewed the action agenda from the July 5 City Council Meeting. He specifically noted the Kenai Municipal Airport Terminal was going through a substantial design change phase and provided an update on the status. b. Borough Planning – Commissioner Fikes reported that the Commission met on July 16; noted five plats were approved; specifically noting a controversial one that was approved, located off Ciechanski Road, Virginia Drive with covenants and restrictions. She added that a conditional land use permit for a cannabis business was approved; and an extraction site use permit on an Anchor Point homestead lot was not approved 146 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 4 of 4 July 25, 2018 and may go to the Board of Adjustment for review. c. Administration – City Planner Appleby reported staff has been helping manage the dipnet personal use fishery, responded to some land sale and leasing inquiries, and was updating policies and tracking procedures, including lands as part of a larger effort of to create a City alliance plan. She noted updating the Sign Code was a priority. She further reported that she attended the Rotary Club of Soldotna’s Economic Development Forum on July 23 and expected that surveys would be sent to residents of Kenai. She clarified that the result would be a report of industries that were compatible and desirable to be located within the City of Kenai, the Kenai Peninsula Borough and possibly the City of Homer and City of Soldotna. Appleby clarified the Kenai Sign Code was not clear and not concurrent with Federal law about signs. She noted she would have an update and timeline at the next Commission meeting. 11. ADDITIONAL PUBLIC COMMENT – None. 12. INFORMATIONAL ITEMS a. Planning and Zoning Resolutions – Second Quarter 2018 b. Code Enforcement – Second Quarter 2018 c. Building Permits – Second Quarter 2018 d. Memorandum of Agreement Between City of Kenai and Kenai Municipal Borough for Hazard Mitigation Plan Coordination Appleby provided a summary of the informational items in the packet. 13. NEXT MEETING ATTENDANCE NOTIFICATION: August 8, 2018 Commissioner Greenberg noted he would be absent. 14. COMMISSION COMMENTS & QUESTIONS There was discussion about updating code similarly to the Kenai Peninsula Borough that restricts development within the flood plain. City Planner Appleby noted she would provide more information to help the Commission make a recommendation and setting a date for a work session at the next meeting. Commissioner Fikes thanked Appleby for the report around the Marijuana Facilities in Kenai. 15. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:44 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk 147 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant – Airport Manager DATE: August 3, 2018 SUBJECT: August Mid-month Report 2017 Terminal Rehabilitation Project – Design: Wince-Corthell-Bryson presented the 95% plans and specs along with the Construction Safety and Phasing Plan for City and FAA review on July 24, 2018. The City requested FAA approval to advertise the project. FAA completed their review and gave concurrence on August 1 to advertise. 2018 Terminal Rehabilitation Project – Construction: Great News! On July 19, the FAA informed us that they intend to fully fund the Terminal Rehabilitation Project with conventional airport improvement program monies in FY18. Advertising starts on August 9 with a bid opening on August 27, 2018. A grant application must be submitted to the FAA by September 4, 2018. The project should start in October 2018. 2018 Fencing Rehabilitation – FAA reviewed the Construction Safety and Phasing Plan along with the plans and specs and gave approval to advertise. The project is advertised as of August 6, 2018 with a bid opening on August 27, 2018. A grant application must be submitted by September 4, 2018. In-House Activities – Maintenance staff is busy screening sand, landscaping, mowing, and ordering commodities for the 2018-2019 winter season. August 20-24, 2018 - Airport Manager will be in Seattle, WA attending the FAA/AMAC Conference. 148 149 150 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager THROUGH: Dave Ross, Police Chief FROM: Jessica “JJ” Hendrickson, Animal Control Chief DATE: August 1, 2018 SUBJECT: July 2018 Animal Control Monthly Report This month the Kenai Animal Shelter took in 103 animals. Animal intake and disposition: DOGS: INTAKE 52 DISPOSITION 38 Waiver 13 Adopted 14 Stray 20 Euthanized 3 Impound 0 Claimed 16 Protective Custody 4 Field Release 0 Quarantine 1 Transferred to Rescue 5 Other Intakes 5 Other Dispositions 0 CATS: INTAKE 47 DISPOSITION 29 Waiver 29 Adopted 9 Stray 18 Euthanized 2 Impound 0 Claimed 2 Protective Custody 0 Field Release 0 Quarantine 0 Transferred to Rescue 16 Other Intakes 0 Other Dispositions 0 OTHER ANIMALS: INTAKE 4 DISPOSITION 3 Rabbit 3 Rabbit 2 Guinea Pig 1 Guinea Pig 1 DOA: 3 OTHER STATISTICS: Dog 2 Licenses (City of Kenai Dog Licenses) 7 Cat 1 Microchips (Dog and Cat) 1 151 Page 2 of 2 Mid-Month Report 6 Citations 6 Animal dropped with After Hours (days we are closed but cleaning and with KPD) 32.20 Volunteer Hours Logged 24 Animals are known borough animals 67 Field Investigations & patrols Statistical Data: 426 2016 YTD Intakes 468 2017 YTD Intakes 469 2018 YTD Intakes 152 MEMORANDUM TO: Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner DATE: August 7, 2018 SUBJECT: Library Mid-Month Report ______________________________________________________________________ July Circulation Figures Adult Fiction 1,494 Internet Access 1,026 Adult Non-Fiction 993 iPad use 260 Young Adult Fiction 327 Games 15 Periodicals 136 Room Booking 162 Juvenile Fiction 672 Music 57 Juvenile Non-Fiction 446 DVDs 2,053 Easy Fiction 1,226 Audio books 108 Easy Non-Fiction 212 Miscellaneous 184 Interlibrary Loan 3 Computer Programs Books – Consortium 286 Media – Consortium 138 Total Print 5,795 Total Non-Print 4,003 Total Circulation 7/18 9,798 Downloadable Audio 652 Total Circulation 7/17 9,495 Downloadable EBooks 594 % change +3% In-House circulation 302 153 Page 2 of 2 Mid-Month Report Library Door Count……. 8,685 Income Fines $ 912.04 Xerox 5.00 Lost/Damaged 110.99 Test Proctoring Fee 100.00 Printing 300.75 Other 0.00 Total income $ 1,428.78 In July 2 volunteers worked about 25 hours. There were 18 children’s programs with 416 total in attendance, and 8 adult and family programs with 40 attendees. In July we ordered 6 interlibrary loan items not available through the consortium and received 3 items, we returned 5 items and loaned 14 items to other libraries who are out of state or not in the consortium. Library Cards Issued July ILL 3 Kasilof 1 Kenai 45 Nikiski 11 Non-Resident 6 Other Peninsula 1 Soldotna 4 Total 71 154 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Anthony Prior, Battalion Chief DATE: August 7, 2018 SUBJECT: Mid-Month Report To date we are currently 4% above last years call volume and have responded to 902 calls for service. Calls for service related to dip net fisheries is down from last year as we only responded to 2 calls for service from July 10-31. We participated in 4 No Wake Patrols with less boat traffic on the river this year during those patrols. Boat 1 responded to 2 mutual aid requests from CES for a boat fire and a distressed wind surfer. We hosted another car seat event in conjunction with Safe Kids at Station 1 on the 19 of July. We continue to have community needs for these events and the number of cars/kids serviced is increasing during each event. We will continue to promote these events through our Facebook page to attain our goal of having all kids safely secured when they are passengers in vehicles. We were able to provide water transportation for the Harbor Commission on the 27th as they were able to assess the river during the dip net season. On August 1st Lifemed Alaska provided annual training with our department for helicopter safety, landing zones, loading of patients on emergency incidents and capabilities of their crews and aircraft. We continue to train our newer members in Engine Operation, Expanded Scope Medical Training, and Airport Requirements. As we progress in our preparation to host the Alaska Fire Conference in September, we now have registration online for anyone who may be interested in attending. Whether you are in the Fire Service or Government Official who maybe interested in topics related to Emergency Services, there are classes of interest for all. 155 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: August 7, 2018 SUBJECT: Finance Department, August 2018 Mid-month Report The department has been extremely busy since the beginning of the new fiscal year on July 1st with the 2018 Personal Use Fishery. IT once again assured all shacks were online and ready to process transactions, software enhancements were completed, and City Hall performed daily reconciling activities. In addition, IT administered the Kenai Dipnet App that continues to be a success with much positive feedback from users and increased functionality for City personnel. IT is nearing completion on bid documents for replacement of the City’s data center equipment. The current data center infrastructure is six years old with total replacement estimated at $155,000. Replacement will increase capacity and performance of the City’s data center with a projected useful life of five years. With the end of FY2018, the department’s focus has switched to closing of that year’s books and completion of the City’s Comprehensive Annual Financial Report. This process includes closing of the FY18 financial records, fiscal year end grant reporting, completion of the annual Audit and finally financial statement preparation. The annual audit is scheduled for the week of October 8th. Finance is working with all City departments to implement electronic timesheets. Currently the Fire and Parks, Recreation, and Beautification departments are submitting timesheets electronically to Finance. Electronic timesheets are more efficient and provide increased reporting for departments. It is Finance’s goal to transition all City departments to electronic timesheets by the end of this fiscal year. 156 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: August 7, 2018 SUBJECT: Mid-month Report ____________________________________________________________________________ The past month has been busy for the Parks & Recreation Department. Below are some of the recent highlights and accomplishments: • The Kenai Personal Use Fishery concluded early on July 30. The department coordinated beach clean-up efforts with the KCHS ski team and a handful of Wal-Mart employees. Clean-up efforts included raking and picking up of litter and debris from parking lot areas and beaches. Remaining items (fencing and signs) were removed a couple days later. • Approximately 60 yards topsoil was hauled into 4th Ave. Park, leveled and seeded. The area landscaped was a low area where the old playground equipment was located. • Crews re-installed a new Merry-go-Round apparatus at Municipal Park. The gearbox in the original unit was defective. The replacement was covered through warranty. • Staff made a second fertilizer application to the wildflower garden area. The fertilizer has helped stimulate more growth and we’re starting to see more wildflowers sprouting. • Fairways at the Kenai Eagle Disc Golf Course were cleaned up with a brush hog mower. • The department’s gardener has been busy creating some new landscapes. Areas of focus have been LH Memorial Park and the landscaped bed along the Kenai Spur Hwy near Home Depot. Additionally, she has been busy performing some fall pruning of town trees. • All Little League fields are currently being roto-tilled for the season. • The Women’s Resource Center will be hosting their annual 5K/10K run Saturday, August 11 at the Softball Greenstrip. • Larger “No Pallet Burning” signs have been made. The crew removed an estimated total of 800 lbs of nails from the Kenai South beach. • There were a total of 8 scheduled shelter reservations during the month of July. • Parking lots at Cunningham Park and Beaver Creek Park were bladed thanks to the Street Department. 157 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: August 7, 2018 SUBJECT: Planning and Zoning July 2018 Report ____________________________________________________________________________ Below are a summary of tracking measures in July 2018 for the Planning and Zoning Department. Planning and Zoning Resolutions The Planning and Zoning Commission approved of a home occupation permit, and Planning and Zoning staff approved of two landscape site plans: • PZ 2018-18 – Landscape/Site Plan Approval for Airport Reserve Leased Property at 433 North Willow Street and further described as Lot 9A, No. 9, FBO Subdivision. Application submitted by Schilling Rentals (approved by staff 7/16/18). • PZ 2018-15 – Landscape/Site Plan Approval for a Six-Unit Residential Structure located at 2392 Redoubt Avenue and further described as Lot 1, Kenai Meadows. Application submitted by Kenai Peninsula Housing Initiatives (approved by staff 7/17/18). • PZ 2018-17 – Home Occupation Permit Approval for Gunsmithing and Repairs, Selling Firearms at 115 Haida Drive and further described as Lot 4, Block 3, Redoubt Terrace Subdivision Additional No. 8. Submitted by Andrew Whipple (approved by Planning and Zoning Commission 7/25/18). Building Permits • 12 Residential, Total Value $715,137 • 2 Commercial, Total Value $8,220 158 Page 2 of 2 Planning and Zoning July 2018 Report Lands and Code Review The Planning and Zoning Commission reviewed Quarter 2, 2018 statistics. The Commission also reviewed all locations and types of permits issued for commercial marijuana establishments during their 7/25/18 meeting. Code Enforcement Four cases closed in July 2018. Six current active cases. Junk or Abandoned Vehicles 1 Debris & Junk 2 Garbage 2 Building Code Violation 0 Miscellaneous Code Violation 1 TOTALS: 5 Location of Code Violations, Jan-July 2018 159 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: August 8, 2018 SUBJECT: Police & Communications Department Activity – Month of July 2018 Police handled 1101 calls for service, which is about 8.5% less than July of 2017 (The year to date call volume still remains up about 6.5%). Dispatch received 346 9-1-1 calls, 281 of which came from cell phones. Officers made 45 arrests. Traffic enforcement resulted in 344 traffic contacts and 101 traffic citations. There were also approximately 94 citations issued for parking or camping issues primarily related to the personal use fishery. There were 7 DUI arrests (2 felony). Officers investigated 19 motor vehicle crashes. There were two collisions involving caribou and one involviing a moose. There was one collision involving drugs or alcohol. There was one fatal collision between a vehicle and a pedestrian. July training included: Two KPD officers attended two days of SERT training. There was no other training attended in the month of July. 5321 1905 4996 2100 4670 2099 0 2000 4000 6000 Total Police Service Calls 911 Calls Received 2018(Jan 1 - July 31)2017(Jan1 - July 31)2016(Jan 1 - July 31) 160 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: August 8, 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; Anticipating both projects out for bid by early October. • Fencing Rehab with Access Control –Bid Phase. Invitation to Bid was released on August 6, 2018 with Bids due on August 27, 2018. Pre-Bid meeting scheduled for August 13, 2018. All approvals required to this point have been received by the FAA. • Terminal Building Rehab Conceptual Plan and Design – Bid Phase. Invitation to Bid was released on August 6, 2018 with Bids due on August 27, 2018. Pre-Bid meeting scheduled for August 13, 2018. All approvals required to this point have been received by the FAA. • 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 Late 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. This will complete the work required by the FAA lease agreement. Currently reviewing 100% Drawings. Anticipate bidding in late August. • Purchase Street Sweeper – Update: Bid release was 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 161 Page 2 of 2 Mid-Month Report including replacing Roof Top Units and system upgrades, e.g. thermostat locations and flow balancing. No new Update • 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: Construction has now been completed, final payment is pending. • 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: Final Bid Docs have been received, anticipate bidding in late 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. 162 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: August 7, 2018 SUBJECT: July Monthly Report July 2018 Home Meals NTS Choice Clients Meals Clients Meals 60+ Service Area 46 862 7 249 60+ Outside Service Area 1 28 1 28 Under 60 + Service Area 0 0 4 154 Under 60+ Outside Service Area 0 0 1 30 Subtotals 47 890 13 461 Total 1351 • During the month of July, 45 volunteers donated 708 hours of their time; 52 individuals used the Social Security Video Service; and, 1,315 congregate meals were served in the dining room. • The Kenai Senior Connection, Inc., sponsored a July 4th Pie & Hotdog Booth on the Kenai Park Strip. Folks from all over stopped by to purchase a slice of homemade goodness or even a whole pie. Our pies are always a big hit and it is fun to see familiar faces come back each year. • The Alaska Polka Chips with Marge Ford performed for our July 20th Polka Dot Dance. The 12 member polka band hails from Anchorage and make an annual trip to Kenai. This is a favorite event for those who can polka or waltz, complete with sauerkraut brats from Howard’s Snack Shack. Over 50 participated or volunteered from around the community. • Activities & Volunteer Coordinator Carol Bannock accepted a position with Kenai’s Park & Recreation Department leaving quite a gap in the heart of the Senior Center. We wish her well in this new position and anticipate bringing in a new Coordinator later in August. • According to MySeniorCenter©, 236 individuals recorded their activities in the month of July for a total of 4,136 hours! On the average, each individual spent 17.5 hours at the Senior Center participating in some form of activity. 163 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF : AUGUST 15, 2018 VENDOR DESCRIPTION DEPT. J&D PAINTING PAINTING & WALLPAPER REMOVAL CONGREGATE HOUSING AMERICAN BUREAU OF CRANE INSP. CRANE & LIFT CERTIFICATIONS SHOP PROFORCE LAW ENFORCEMENT TASERS PERSONAL USE FISHERY CROWLEY PETROLEUM FLOAT PLANE BASIN FUEL AIRPORT CHRISTINE BABCOCK FY19 PHYSICIAN CONSULTATION FEE FIRE TERRI ELLIOTT FY19 PHYSICIAN CONSULTATION FEE FIRE ACCOUNT AMOUNT REPAIR & MAINTENANCE 3,800.00 REPAIR & MAINTENANCE 2,737.60 SMALL TOOLS 6,490.97 OPERATING SUPPLIES 4,660.52 PROFESSIONAL SERVICE 6,000.00 PROFESSIONAL SERVICE 6,000.00 DIGITAL BLUEPRINT PLANS & SPECS PRINTING A/P TERMINAL MODIFICATIONS ENGINEERING 8,000.00 164 AUGUST 15, 2018 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to item D.3. Resolution No. 2018-47 City Attorney • Amendment Memo ACTION AGENDA KENAI CITY COUNCIL -REGULAR MEETING AUGUST 15, 2018 -6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http ://www.kenai .city A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests. in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders . B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3035-2018 -Increasing Estimated Revenues and Appropriati ons by $2057.58 in the General Fund (FY18)-Police Department for State Traffic Grant Overtime Expenditures. (Administration ) 2. ENACTED UNANIMOUSLY. Ordinance No. 3036-2018 -Accepting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books. (Administration) 3. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2018-47 -Approving A Twenty-Year Extension And Amendment To The Annual Rent And Lease Option Terms For The Lea se And Concession Agreements For The Kenai Municipal Golf Course And Recreation Area Between The City Of Kenai And Griffin Golf Enterprises . (Administration) E. MINUTES -None . F. UNFINISHED BUSINESS 1. ENACTED AS AMENDED. Ordinance No. 3034-2018 -Repealing Kenai Municipal Code Chapters 16.05-General Provisions. and 16.10-Proced ure , within Title 16- Kenai Ci ty Counci l Mee ting August15,2018 Pag e 1 of 3 Public Improvements and Special Assessments and Re-Enacting and Renaming Chapter 16 .05-Special Assessment Districts. (Council Member Knackstedt) [Clerk's Note: This Item was Postponed to this Meeting from the August 1, 2018 Meeting; A Motion to Enact is On the Floor.] G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Bills to be Ratified . 2. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Purchase Orders Over $15,000 3 . APPROVED BY THE CONSENT AGENDA. *Action/Approval -Non-Objection to the Issuance of a New Limited Marijuana Cultivation Facility License for Grateful Bud, LLC, License No. 16474. (Administration) 4. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Non-Objection to Issuance of a New Retail Marijuana Store License for Majestic Gardens, LLC, License No. 15393. (Administration) 5 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0910512018. *Ordinance No. 3037-2018 -Increasing Estimated Revenues And Appropriations In The Airport Special Revenue And Terminal Improvements Capital Project Funds , Accepting And Appropriating A Grant From The Federal Aviation Administration, Authorizing A Change Order To The Contract Of Wince Corthell-Bryson For Additional Design And Construction Administration Services, And Awarding A Construction Contract For The 2018 Airport Terminal Rehabilitation Project. (Administration) 6. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0910512018. *Ordinance No. 3038-2018 -Increasing Estimated Revenues And Appropriations In The Airport Special Revenue And Airport Improvements Capital Project Fund, Accepting And Appropriating A Grant From The Federal Aviation Administration, Authorizing Execution Of A Change Order To The Design And Engineering Contract Of Wince Corthell-Bryson For Construction Administration Services, And Awarding A Construction Contract To The 2018 Airport Fencing Rehabilitation With Access Control Project. (Administration) H. COMMISSI ON/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission • Sub-Committee Update 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR Kenai City Council Meeting August15,2018 Page 2 of 3 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 1. Action/Approval -Field of Flowers Signage (Council Member Knackstedt) [Clerk's Note: This item was referred to the Beautification Committee and then the Airport Commission.] N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review The agenda and supporting documents are posted on the City's website at www. kenai. citv. Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907-283-8231 . Kenai City Council Mee ting Au gus t1 5,2018 Page 3 of 3 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE AUGUST 15, 2018 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and/or Resolution(s) at the above-referenced meeting . 1. ENACTED UNANIMOUSLY. Ordinance No. 3035-2018-Increasing Estimated Revenues and Appropriations by $2057.58 in the General Fund (FY18)-Police Department for State Traffi c Grant Overtime Expenditure s. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3036-2018 -Accepting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books . (Administration) 3. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2018-47 -Approving A Twenty-Year Extension And Amendment To The Annual Rent And Lease Option Terms For The Lease And Concession Agreements For The Kenai Municipal Golf Course And Recreation Area Between The City Of Kenai And Griffin Golf Enterprises . (Admi n is tration ) 4. ENACTED AS AMENDED. 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 Renam ing Chapter 16.05- Special Assessment Districts. (Council Member Knackstedt) Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk. Please be advised, subject to legal limitatio ns , ordinances and /or resolutions may have been amended by the Council prior to adoption without further public notice . ie einz, CMC, City Clerk e :August16,2018 NOTICE OF PUBLIC HEARING AUGUST 15, 2018 CITY OF KENAI COUNC IL 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. 3035-2018 -Increasing Estimated Revenues and Appropriations by $2057.58 in the General Fund (FY18)-Police Department for State Traffic Grant Overtime Expenditures. (Administration) 2 . Ordi nance No. 3036-2018 -Accepting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books. (Administration) 3. Resolution No. 2018-47-Approving A Twenty-Year Extension And Amendment To The Annual Rent And Lease Option Terms For The Lease And Concession Agreements For The Kenai Municipal Golf Course And Recreation Area Between The City Of Kenai And Griffin Golf Enterprises. (Administration) The public hearing will commence at 6:00 p.m., or as soon thereafter as business permits, in the Kenai City Council Chambers, 21 O Fidalgo Avenue, Kenai, Alaska , 99611 . All interested persons are invited to attend the meeting and participate in the public discussion . Written comments may be sent to the Kenai City Council , c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK , 99611. Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances and/or resolutions may be amended by the Council prior to adoption without further public notice .