HomeMy WebLinkAbout2019-03-20 Council Packet KENAI CITY COUNCIL - REGULAR MEETING
MARCH 20, 2019 - 6:00 PM
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
http://www.kenai.city
A.CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
AGENDA APPROVAL
CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes
aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and
will be approved by one motion. There will be no separate discussion of these items unless a
council member so requests, in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General Orders.
B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker)
B.1.Craig Thomsen – Cleanup of Valhalla Heights Subdivision.
C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per
speaker; thirty (30) minutes aggregated)
D.PUBLIC HEARINGS
D.1.Ordinance No. 3053-2019 – Increasing Estimated Revenues and Appropriations in the
General Fund for the Donation of a Bush Doctor’s Historic Cabin from Doctor Peter Hansen
and Kenai Community Foundation and Supporting the Placement of the Cabin Adjacent to the
Kenai Visitor Center. (Council Members Molloy and Pettey)
Ordinance No. 3053-2019.pdf
D.2.Ordinance No. 3054-2019 – Accepting Drug Seizure Funds Forfeited to the City in the
Amount of $2,153.52 and Appropriating those Funds into the Police Professional Services
Account in the Furtherance of Criminal Investigations. (Administration)
Ordinance No. 3054-2019.pdf
D.3.Ordinance No. 3055-2019 – Accepting and Appropriating a Scholarship from the Alaska
Association of Municipal Clerks for Employee Travel and Training. (City Clerk)
Ordinance No. 3055-2019.pdf
D.4.Resolution No. 2019-15 – Amending its Comprehensive Schedule of Rates, Charges, and
Fees to Amend the Fee for Mobile Food Vendor Licenses. (City Clerk)
Resolution No. 2019-15.pdf 1
Kenai City Council Meeting Page 2
March 20, 2019
D.5.Resolution No. 2019-16 – Approving the Purchase of Ten Portable Radios and Accessories
for the Police and Fire Departments under a Sole Source Purchase from Motorola Solutions
using NASPO ValuePoint Contract Pricing for the Total Price of $55,401.16. (Administration)
Resolution No. 2019-16.pdf
D.6.Resolution No. 2019-17 – In Support of Modifying SB 57 and HB 59 to Restore Local
Municipalities Authority to Tax Oil and Gas Property Taxable Under AS 43.56 to a Maximum of
15 Mils. (Council Member Peterkin and Mayor Gabriel)
Resolution No. 2019-17.pdf
D.7.Resolution No. 2019-18 – Opposing SB 63 and HB 65 Repealing Fisheries Business Tax
Refunds to Municipalities and Revenue Sharing for Fishery Resource Landing Taxes.
(Council Member Peterkin and Mayor Gabriel)
Resolution No. 2019-18.pdf
E.MINUTES
E.1.*Regular Meeting of March 6, 2019
03-06-19 Council Minutes - DRAFT.pdf
F.UNFINISHED BUSINESS - None.
G.NEW BUSINESS
G.1.*Action/Approval – Bills to be Ratified. (Administration)
Payments over $15,000.pdf
G.2.*Action/Approval – Purchase Orders Exceeding $15,000. (Administration)
Purchase Orders over $15,000.pdf
G.3.*Ordinance No. 3057-2019 – Accepting and Appropriating a Grant from the State of Alaska
Department of Public Safety for Crime Prevention and Response and Equipment for the
Purchase of Portable Radios and Accessories for the Police Department, and to Purchase
Supplies in Support of the D.A.R.E Programs Conducted by the Police Department in Local
Elementary Schools. (Administration)
Ordinance No. 3057-2019.pdf
G.4.*Ordinance No. 3058-2019 – Amending Provisions in Kenai Municipal Code Title 7 – Finance,
Taxation, and Business Affairs of the City, including Investment of Monies – Scope and
Objectives 7.22.010; Land Sale Permanent Funds – General Fund Land Sale Permanent
Fund 7.30.005; Investments 7.30.020; Investments 7.30.020; Investments 7.30.020; and
Investments 7.30.020 for Updates to Management Practices for the City’s General Land Sale
and Airport Land Sale Permanent Funds. (Administration)
Ordinance No. 3058-2019.pdf
G.5.Action/Approval – Special Use Permit to State of Alaska Division of Natural
Resources-Forestry. (Administration)
SUP - State of Alaska DNR.pdf
G.6.Discussion – Onsite Marijuana Consumption. (Administration)
Discussion - Onsite Consumption.pdf
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Kenai City Council Meeting Page 3
March 20, 2019
H.COMMISSION/COMMITTEE REPORTS
H.1.Council on Aging
H.2.Airport Commission
H.3.Harbor Commission
H.4.Parks and Recreation Commission
03-07-19 Parks & Rec Summary - DRAFT.pdf
H.5.Planning and Zoning Commission
02-27-19 P&Z Minutes.pdf
H.6.Beautification Committee
H.7.Mini-Grant Steering Committee
I.REPORT OF THE MAYOR
J.ADMINISTRATION REPORTS
J.1.City Manager
Mid-Month Reports.pdf
J.2.City Attorney
J.3.City Clerk
Memo to Council - Records Destruction.pdf
K.ADDITIONAL PUBLIC COMMENT
K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker)
K.2.Council Comments
L.EXECUTIVE SESSION
M.PENDING ITEMS
M.1.Ordinance No. 3056-2019 - Amending Kenai Municipal Code 14.22.010-Land Use Table, to
Allow Business/ Consumer Services and Taxidermy/Gunsmithing in RR1 Zoning District by
Conditional Use Permit and Removing the Location Restriction on Professional Offices
Allowed by Conditional Use PermitWithin the RR1 Zone. (Council Members Peterkin and
Glendening)
[Clerk’s Note: This item was Referred to the Planning & Zoning Commission for a
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Kenai City Council Meeting Page 4
March 20, 2019
Recommendation at their March 27, 2019 Meeting and a Public Hearing Scheduled before the
City Council on April 3, 2019.]
INFORMATION ITEMS
Purchase Orders between $2,500 and $15,000 for Council Review
Purchase Orders between $2,500 - $15,000.pdf
N.ADJOURNMENT
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to
the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231.
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Sponsored by: Council Member Bob Molloy
and Council Member Glenese Pettey
CITY OF KENAI
ORDINANCE NO. 3053-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND FOR THE
DONATION OF A BUSH DOCTOR’S HISTORIC CABIN FROM DOCTOR PETER HANSEN AND
KENAI COMMUNITY FOUNDATION AND SUPPORTING THE PLACEMENT OF THE CABIN
ADJACENT TO THE KENAI VISITOR CENTER.
WHEREAS, in 1967, Dr. Peter Hansen moved to Kenai, a community with no hospital in the area,
and began practicing medicine, bringing with him used medical equipment he had acquired in
Juneau; and,
WHEREAS, the antique medical equipment has been saved and most recently stored by the City;
and,
WHEREAS, Dr. Hansen is in the process of constructing a Bush Doctor’s Historic Cabin to display
the antique medical equipment for public viewing; and,
WHEREAS, the construction project for this donation is funded by Dr. Hansen and the Kenai
Community Foundation, a nonprofit organization, including the funding for construction of the
cabin, preparation of the site for the cabin and antique medical equipment, and moving and setting
up the cabin and antique medical equipment at the site; and,
WHEREAS, a fund has been established with the Kenai Community Foundation to allow for future
contributions for capital improvements and maintenance; and,
WHEREAS, Dr. Hansen and the Kenai Community Foundation desire to donate the cabin and
medical equipment to the City and locate the building adjacent to the Kenai Visitor’s Center; and,
WHEREAS, Dr. Hansen would like his family members to be allowed access to the cabin to help
maintain and display the medical items; and,
WHEREAS, Dr. Hansen has worked with the Kenai Historical Society to develop a proposed site
plan that the Kenai Historical Society supports; and,
WHEREAS, the City Council graciously supports the plan for the donation of the Bush Doctor’s
Historic Cabin to the extent that it will accept the building and maintain the structure and
equipment and make it available for public viewing as funding and future plans allow; and,
WHEREAS, the City will assist with location of the cabin and antique medical equipment and
development of the site plan to the extent resources are available, primarily through the City’s in-
kind services.
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Ordinance No. 3053-2019
Page 2 of 2
_____________________________________________________________________________________
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 this is a non-code ordinance.
Section 2. That the City Manager is authorized to accept the donation of the Historical Bush
Doctor’s Cabin and equipment from Dr. Hansen and the Kenai Community Foundation.
Section3. Dr. Hansen’s family members will be granted access as reasonable to help
maintain and display the antique medical items.
Section 4. That estimated revenues and appropriation be increased as follows:
General Fund
Increase estimated revenues- $103,000
Donations
Increase Appropriations-Park Recreation and Beautification- $103,000
Buildings
Section 5. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Introduced: February 20, 2019
Enacted: March 20, 2019
Effective: March 20, 2019
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MEMORANDUM
TO: Mayor Gabriel, Council Members,
Student Representative, Administration
FROM: Council Members Molloy and Pettey
DATE: February 14, 2019
SUBJECT: Ordinance No. 3053-2019, Donation Of A Bush Doctor’s Historic Cabin
And Supporting The Placement Of The Cabin Adjacent To The Kenai Visitor Center
This ordinance authorizes the City Manager for the City of Kenai to accept a charitable donation
of a Bush Doctor’s Historic Cabin/Museum from Dr. Peter Hansen and the Kenai Community
Foundation. This generous donation will increase estimated revenues and increase
appropriations to Park Recreation and Beautification in the amount of $103,000. Dr. Hansen’s
Letter of Intent, his letter to the Kenai Historical Society, a letter of support from the Kenai
Historical Society, and the draft conceptual site plan, are additional explanation, comment, and
support for this ordinance.
This donation of $103,000 is intended to cover the costs of the construction project involved in
this donation, including the funding for construction of the cabin, preparation of the site, and
moving and setting up the cabin and antique medical equipment at the site. The source of these
charitable funds is a designated fund that Dr. Hansen has set up specifically for the Bush
Doctor’s Historic Cabin/Museum within the Kenai Community Foundation, which Dr. Hansen
intends to be a source of funds for future capital improvements to the cabin/museum.
We believe that the Bush Doctor’s Historic Cabin/Museum will add value to and be an additional
educational and enjoyment opportunity for visitors to Kenai. We are grateful to Dr. Hansen for
his generosity to the community; to the Kenai Community Foundation for its assistance with the
charitable donation process; and to the Kenai Historical Society for its support of this donation.
If enacted, the City will accept the donation of the cabin and antique medical equipment; will
assist with location of the cabin and antique medical equipment and development of the site.
The City will maintain the structure and equipment and make it available for public viewing.
Funding for this will come from the Kenai Community Foundation under the category of “Bush
Doctor’s Historic Cabin/Museum.”
We will ask for a postponement to the 3/20/19 Council Meeting with a public hearing to be held
at that meeting so that Dr. Hansen can participate in the public hearing. He is unable to be
present for the public hearing at the 3/06/19 Council meeting.
Council’s support of this ordinance is respectfully requested.
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / FAX: 907-283-3014
www.kenai.city
7
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LETIER OF INTENT -TO THE CITY OF KENAI
To Establish a Kenai Bush Doctor Cabin/Museum
By Peter Owen Hansen, M . D.
February 11, 2019
The purpose of this letter is to formalize with the City of Kenai my desire to construct, equip, and assist
in maintaining a one room log structure to be known as a Bush Doctor Cabin/Museum; to be donated to
and placed on City public property, which may be open at appropriated times of the year for public
visitation and educational purposes; and to fascinate and intrigue not only locals but tourists visiting our
town. It is my intent to see this project further beautify our downtown area, and be an attraction
drawing people into our community.
Now-some details. The year -1967. Town of Kenai had no doctors, no hospital, and was having a
boom with tar paper shacks and camper trailers everywhere. My wife and I moved here with kids ages
1,2, &3 and found a little log house to live in, and I brought with me used medical equipment I had
acquired practicing medicine in Juneau. Quickly I had to acquire more surgical, medical, x-ray,
laboratory, and physical therapy equipment to be able to deliver babies, treat every emergency, and
serve the rapidly growing industries in Nikiski. By 1987, I had to update my practice with new
equipment, but also saving the old for breakdowns on the new. I now have enough antique medical
equipment to fully equip a one room cabin which I would like to do, with educational displays showing
people what my medical practice was like 50 years ago. The abbreviated story since follows.
Nov. 5, 2017 -Presented the above to the Kenai Historical Society (KHS) along with need for storage of
my medical equipment due to my impending retirement. This was met with enthusiasm from the group.
Thoughts were of such a Cabin being in the Historical Cabin Park . (Presentation attached)
Nov. 8, 2017 -KHS President June Harris and I met with City Manager Paul Ostrander who offered warm
storage for my equipment. January 2018, I moved four pallets of my medical equipment in.
May 17, 2019 -Met with City Mgr Paul Ostrander -concern expressed about security of Hist. Cabin Park
July 2, 2019 -Met at KCCVC with Paul, Johna Beech, June & J. Harris & decision made to set cabin there.
Early Nov. 2019 -Nikiski Logsmith, Arnie Sellenger, begins construction of cabin in Nikiski.
Several Meetings Nov . Dec. & January-Building Inspector Mike Wesson, Engineers Mike Reberg & Mark
Fondren, Parks & Rec. Director Bob Frates, IT Director Dan Castimore, Paul Ostrander and City Attorney
Scott Bloom.
Feb . 4, 2019 -met at KCCVC with Johna Beech, Joe & June Harris to discuss site plan next to Visitor's
Center and by late in day Joe and I agreed to move the Steam Engine to make way for the cabin leaving
the Ward Sign in place .
Feb . 10,2019 -Kenai Historical Society unanimously passes motion supporting this project .
The Bush Doctor Cabin is a one room (15 X 16 Ft) log structure with low ceiling and a 6 Ft covered porch,
much like the log houses Johnny Parks built in the 1950s-60s in Kenai. My family of five lived in a four
room house of his when permanently moving to Kenai in 1967 . Emergencies often came to my door.
9
The intent is to move this cabin, which is being constructed in Nikiski, into the City in late May or early
June this year and place i t on a sauna tube foundation near the Visitor's Center; following that my
stored medical equipment would be moved into it along with other furnishings, and over the ensuing
months formation of a Bush Doctor's Cabin/Museum would take place.
Construction of the finished one room log cabin, moving the cabin into the City, construction of the
foundation, placing the cabin on its foundation, and direct expense involved in relocating other
historical items nearby is being funded by charitable irrevocable contributions, coming out of a
Designated Fund which I have set up specifically for this purpose, within the Kenai Community
Foundation (KCF); it is my desire there be no taxpayers' dollars spent directly on these. Future capital
improvements to the cabin/museum I anticipate being funded by the same KCF Fund .
I now have a request of the City, and the City Council, for a resolution:
• Supporting acceptance of the project as outlined above, and/or as amended by Council,
• Allowing myself, my wife, family descendents, and others I or they authorize to enter the
cabin/museum anytime for the purpose of maintaining, updating, or replacing historical medical
items to improve the museum; and also for showing the museum to others.
• Providing in-kind services when needed and available, to assist with completion of this project
and to beautify the landscape of the Visitors' Center area; and to assist with long term
maintenance of the cabin/museum (e.g. landscaping, police security as with other City
properties, moving heavy medical equipment, building repairs)
My family and I anticipate being involved during my lifetime i n the upkeep and maintenance of the
Kenai Bush Doctor's Cabin/Museum. The Charitable Fund established for this project and its future
preservation should continue indefinitely unless the log building and its contents are destroyed .
Kena i Comm Fndn Dr CabMus let of intent #2 2019.2.10
10
Kenai Historical Society
Kenai, Alaska 99611
November 5, 2017
RE : Open Letter to Officers and Members of the Kenai Historical Society
This is a personal request, as a member of the Kenai Historical Society, asking for consideration
of the Society in accepting for display or temporary storage for future display, the entire
package of historical medical equipment collected and used over the pa st 50 years in the City of
Kenai by the Kenai Medical Center, a professional corporation I established following my arrival
in Kenai in 1967. The Kenai Medical Center closed its doors and went out of business December
31, 2016.
Some of the equipment I brought with me to Kenai after closing my medical practice in Juneau,
other bits and pieces of historical significance were delivered to my office when Wildwood Air
Force Station, established in _1954_, was closed in the 1970's.
During the 1960' s and early 1970' s, Kenai' s population and citizens of the area had no access to
local hospital care ..... there was no hospital. My being the only physician in town, I was blessed
in coming here with having had the medical training and Boy Scout ingenuity to develop a
medical practice, and staff an office, trying to meet the needs of a "Boom Town" with camper
trailers and tar paper shacks on nearly every block. This meant things like taking every
ambulance call in my office; developing an X-ray facility, a laboratory, and a surgical room;
setting fractures, delivering over two hundred babies, doing many surgical procedures which
today are performed in a hospital setting; devising physical therapy techniques and providing
needed supplies for recovering patients; training local people to be medical assistants when
there were no nurses, laboratory techs, X-ray techs; and meeting the needs of rapidly growing
oil field industries in Nikiski and Cook lnlet ......... sending in daily accident victims. Then there
were weekly air evacuations of injured or sick to Anchorage hospitals ..... and training attendents
to go with pati ents.
The reason for sharing the above is so Society members can better understand the nature of
the antique items of medical equipment I have to donate; most of these I have had in storage
1
11
for 20-30 years . These include the setting of doctor's lab SO years ago ....... microscope with
slides & staining chemicals for bacteria identification, equipment for making blood agar media
to grow bacteria on, mini incubator; centrifuge for spinning blood down with pipettes, counting
chamber & mixer for doing blood counts; mailing packages for blood chemistry tests in which it
took 10 days to get results.
Surgical equipment includes the antique Ritter surgical table with accessories used for Ear-
Nose-Throat work, pelvic surgery, child deliveries, setting extremity fractures, and surgical
procedures of many types; a great assortment of instruments of many types used for things like
skin grafting, amputations, foreign body removals, gastric lavage; plaster & materials for
setting fractures & a cast cutter; gowns, dressings & bandages.
X-ray equipment -some has already been donated and is in one ofthe Historical cabins. Still
stored for donation are X-ray view boxes and a series of X-rays showing fractured bones,
gastric ulcers, colon polyps ........... all for display, which I have accumulated as a 1960s-1970s
subspecialist in Radiology on the Kenai Peninsula, before the day of having a Radiologist .
Physical therapy-crutches have also been donated and are in one of the Historical cabins. Still
stored is the Jacuzzi whirlpool pump used for debriding wounds and restoring range-of-motion
of extremity joints.
PROPOSAL: If the Society is currently unable to provide a suitable historical building for
displaying the above, and if the Society would provide suitable land for such, my family and I
would be interested in donating the construction of a one room cabin, to house and display the
above items in a manner emblematical of a Kenai doctor's office in the "Boom Town" it was SO
years ago.
This request and proposal is good thru December 31, this year. By then, I will need to seek
other places in the Central Peninsula to meet my needs of disposing the above. I would like to
keep this within the City of Kenai if possible, where I have lived and practiced medicine for
more than SO years; this in itself is a rarity in today's world.
Peter 0. Hansen, M . 0.
P. 0 . Box 1390
Kenai, Alaska 99611
Home phone: 907-283-461S
Kenai Historical Society Ltr 2017.11.3
2
12
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HL<·t~i::.J-...vxu.tg, 111.:.
P.O. Box 1348
Kenai, AK 99611
February 11, 2019
kenaihistory@gmail.com
This is a letter of support to the Kenai City Council from the Kenai
Historical Society.
The Kenai Historical Society agrees to support the Bush Doctor Historic
Cabin project as presented to June and Joe Harris at a meeting with Dr.
Pete Hanson on February 9, 2019; namely only the moving of the steam
donkey winch.
The Membership also approved support after the presentation by Dr. Pete
H anson of the project at their Historical Society meeting on February 10,
2019.
June Harris, President
"'· I ~r-~l I . VU..--VLA_J_~ ~
Kenai Historical Society
13
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3054-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING DRUG
SEIZURE FUNDS FORFEITED TO THE CITY IN THE AMOUNT OF $2,153.52 AND
APPROPRIATING THOSE FUNDS INTO THE POLICE PROFESSIONAL SERVICES
ACCOUNT FOR THE PURPOSE OF CRIMINAL INVESTIGATIONS.
WHEREAS, the Kenai Police Department has received notice from the Court authorizing the
forfeiture to the Kenai Police Department of $2,153.52 in cash related to the adjudication of drug
cases; and,
WHEREAS, the cash was seized during drug investigations, in which the Kenai Police
Department was the investigating agency; and,
WHEREAS, the Police Department, pursuant to conditions of acceptance, will utilize the forfeited
funds in the furtherance of the administration of justice.
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 forfeited funds in the amount
of $2,153.52 and to expend those 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 –
Forfeitures - Police $2,153.52
Increase Appropriations –
Police – Professional Services $2,153.52
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.
14
Ordinance No. 3054-2019
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Introduced: March 6, 2019
Enacted: March 20, 2019
Effective: March 20, 2019
15
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: February 21, 2019
SUBJECT: Ordinance No. 3054-2019 - Ordinance Accepting and Appropriating
Forfeiture
____________________________________________________________________________
The City of Kenai currently holds $2,153.52 in investigative seizure money that has been forfeited
to the Department. The Kenai Court ordered the forfeiture of funds including $2,153.52 to the
Kenai Police Department. The forfeiture is the result of drug investigations in which the Kenai
Police Department was the investigating agency. The funds are designated to be used in the
furtherance of the administration of justice.
I am respectfully requesting an ordinance appropriating $2,153.52 into the General Fund, Police-
Professional Services account to help pay for professional services related to police
investigations.
Your consideration is appreciated.
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_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: City Clerk
CITY OF KENAI
ORDINANCE NO. 3055-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND
APPROPRIATING A SCHOLARSHIP FROM THE ALASKA ASSOCIATION OF MUNICIPAL
CLERKS FOR EMPLOYEE TRAVEL AND TRAINING.
WHEREAS, the Office of the City Clerk has received a $1,550 scholarship from the Alaska
Association of Municipal Clerks (AAMC) for travel expenses for the Deputy Clerk to attend training
at the Northwest Clerks Institute held in Tacoma, Washington; and,
WHEREAS, it is in the best interest of the City of Kenai to accept and appropriate these 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 funds in the amount of $1,550 from
AAMC for travel expenses for the Deputy Clerk to attend training at the Northwest Clerks Institute
and to execute agreements and to expend the funds to fulfill the purpose and intent of this
ordinance.
Section 2. That estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Miscellaneous Grants $1,550
Increase Appropriations:
City Clerk – Travel & Transportation $1,550
Section 3. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
17
Ordinance No. 3055-2019
Page 2 of 2
____________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Introduced: March 6, 2019
Enacted: March 20, 2019
Effective: March 20, 2019
18
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, CMC, City Clerk
DATE: February 21, 2019
SUBJECT: Ordinance No. 3055-2019 – Appropriating a Scholarship from AAMC
______________________________________________________________________
The Alaska Association of Municipal Clerks fundraises continually to offer a number of financial
scholarships to its members to attend Northwest Clerks Institute. Completion of the three-year Institute
is essential to receive the designation of Certified Municipal Clerk from the International Institute of
Municipal Clerks. Funds can be utilized for registration, housing, and travel.
Deputy Clerk, Jacquelyn LaPlante, has been awarded funds ($1,550) to attend Northwest Clerks
Institute, held at the University of Puget Sound in Tacoma, Washington in June 2019. This ordinance
will appropriate the $1,550 scholarship to allow Ms. LaPlante to attend the training.
Your consideration is appreciated.
19
_____________________________________________________________________________________
Sponsored by: City Clerk
CITY OF KENAI
RESOLUTION NO. 2019-15
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS
COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO AMEND THE FEE FOR
MOBILE FOOD VENDOR LICENSES.
WHEREAS, in 1978, the City established regulations for Mobile Food Vendor Licenses and
associated fees which were $120 for one year of issuance with the option of a shorter duration
and proportionately reduced fee; and,
WHEREAS, through Ordinance 3048-2019, the City amended certain regulations to simplify the
mobile food vendor licensing process, including an annual calendar year license term; and,
WHEREAS, the fee is not intended to generate revenue, however, the licensing process is
intended to educate licensees about the requirements for operating in the City and cover minimal
administration costs; and,
WHEREAS, setting the fee for the Mobile Food Vendor License at $50 recognizes that the
vendors typically don’t operate in the winter months but by having a license which is a full year
provides the opportunity to operate in shoulder or off season events they may have declined in
the past due to not being licensed and makes the fee comparable to other nearby municipalities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The Mobile Food Vendor section of the City’s Comprehensive Schedule of Rates,
Charges and Fees be amended as follows:
MOBILE FOOD VENDOR LICENSE
5.25.050 Annual Mobile Food Vendor License $120.00 $50.00
(License may be purchased on a 30-day basis.)
Section 2. That this resolution takes effect April 5, 2019 to coincide with Ordinance No. 3048-
2019.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk 20
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: March 12, 2019
SUBJECT: Resolution No. 2019-15 – Mobile Food Vendor License Fee
As a companion to Ordinance No. 3048-2019, this resolution proposes an amendment to the fee
schedule for Mobile Food Vendor Licenses. A part of the intent of Ordinance No. 3048-2019 and the
intent of this resolution is to simplify the licensing by providing a calendar year term, giving the vendor
a license which is good for an entire year, at a reasonable cost. The intent for this licensing program
is to educate the licensees about the requirements for operating in the City and for that reason, it is
unnecessary for the vendors to come in multiple times per year to extend or get a new license. The
reduction in the fee from $120 per year to $50 per makes the fee comparable to other cities that license
Mobile Food Vendors such as Palmer, Seward, and Soldotna. Additionally, by providing a full, one-
year term, the vendors would have the opportunity to participate in a shoulder or off-season event
which they may have declined in the past due to not being licensed.
Your consideration is appreciated.
21
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019 – 16
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE
PURCHASE OF TEN PORTABLE RADIOS AND ACCESSORIES FOR THE POLICE AND FIRE
DEPARTMENTS UNDER A SOLE SOURCE PURCHASE FROM MOTOROLA SOLUTIONS
USING NASPO VALUEPOINT CONTRACT PRICING FOR THE TOTAL PRICE OF $55,401.16.
WHEREAS, the City of Kenai received and accepted a grant award from the State of Alaska
Department of Military and Veterans’ Affairs in the amount of $55,350 for the purchase of portable
radios and accessories for the Police and Fire Departments (Ordinance 3045-2018); and,
WHEREAS, the Police and Fire Departments both have complete inventories of Motorola Radios,
have personnel with experience working on and programming the Motorola Radios, and have
accessories in place for managing these radios; and,
WHEREAS, these funds are sufficient to replace ten radios, or approximately 20% of those used
by the Police and Fire Departments and this partial replacement makes purchasing very similar
equipment critical to maintenance and operations; and,
WHEREAS, a “Sole Source Procurement Method” for the purchase of these radios and
accessories from Motorola Solutions has been authorized by the granting authority; and,
WHEREAS, Motorola is the only source for the Motorola APX 6000 radios to be purchased and
those radios are covered in NASPO Valuepoint contract pricing that is standardized and ensures
the lowest price available on the products; and,
WHEREAS, KMC 7.15.070(b)(1) allows the City of Kenai to purchase equipment without giving
an opportunity for competitive bidding if the equipment can only be furnished by a single dealer
or which has a uniform price wherever bought.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That effective July 1, 2018, the Police & Fire Departments are authorized to
purchase Motorola radios and accessories in the amount of $55,401.16.
Section 2. That the City Manager is authorized to make a sole source purchase, per City
Code, in lieu of the City conducting a competitive bid process.
Section 3. That the City Manager is authorized to issue a purchase order in the amount of
$55,401.16 for purchasing Motorola portable radios and accessories.
Section 4. That this resolution takes effect immediately upon adoption.
22
Resolution No. 2019-16
Page 2 of 2
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
23
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: March 4, 2019
SUBJECT: Resolution No. 2019-16 approving the sole source purchase of public
safety radios from Motorola Solutions.
______________________________________________________________________
The City of Kenai applied for and received a grant through the State of Alaska Department of
Military and Veterans’ Affairs in the amount of $55,350 for the purchase of portable radios and
accessories for the Police and Fire Departments. The City accepted and appropriated those grant
funds under Ordinance 3045-2018.
This memo supports the resolution for a sole source purchase in the amount of $55,401.16 for
those radios and accessories from Motorola Solutions. The $51.16 difference between the grant
amount and the purchase order request will be covered by the police operating budget.
There are a number of reasons to use a sole source with Motorola for this purchase. KPD and
KFD are both fully equipped with Motorola radios, and their personnel have experience working
on and programming the Motorola radios. The departments also have accessories in place for
managing these radios. These funds are sufficient to only replace 10 radios or approximately
20% of the portable radios in use by the departments. This partial replacement further
necessitates the need to purchase like equipment for both maintenance and operations. The
portable radios that are currently in use by both departments (Motorola) have proven extremely
reliable, with availability of maintenance from the vendor when required. The Motorola APX6000
radios to be purchased are covered under the NASPO Valuepoint contract that is standardized
and ensures the lowest price available on the products.
A sole source purchase has been approved by the granting agency, the State of Alaska
Department of Military and Veterans’ Affairs.
I am respectfully requesting consideration of the resolution authorizing the purchase from
Motorola Solutions in the amount of $55,401.16. 24
_____________________________________________________________________________________
Sponsored by: Mayor Gabriel and
Council Member Peterkin
CITY OF KENAI
RESOLUTION NO. 2019 - 17
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, IN SUPPORT OF MODIFYING
SB 57 AND HB 59 TO RESTORE LOCAL MUNICIPALITIES’ AUTHORITY TO TAX OIL AND
GAS PROPERTY TAXABLE UNDER AS 43.56 TO A MAXIMUM OF 15 MILLS.
WHEREAS, Governor Michael Dunleavy has transmitted SB 57 and HB 59 to the legislature
which creates a new mandatory municipal tax exemption on oil and gas exploration, production
and pipeline transportation property; and,
WHEREAS, as a result this bill removes local tax authority and shifts all revenue from property in
the municipalities to the state on oil and gas, exploration, production and pipeline transportation
property which would provide estimated additional tax revenues of $450,000,000 to the state next
fiscal year; and,
WHEREAS, removing revenue sources from municipalities and forcing them to increase the
burden on residents to provide similar service does not equate to cutting the State budget; and,
WHEREAS, Article X, Section 1, of the Alaska Constitution provides for maximum local self-
government and a liberal construction applied to the powers of local government; and,
WHEREAS, prohibiting municipalities from taxing or sharing in revenue from taxes on property
within municipal jurisdictions that burden local resources is not only unreasonable, but flies in the
face of Article X, Section 1, of the Alaska Constitution; and,
WHEREAS, City of Kenai revenues from oil and gas properties are estimated at $274,455 for
fiscal year 2020 and the Kenai Peninsula Borough’s revenues from the same are estimated at
$14,784,733; and,
WHEREAS, this reduction in revenues would burden the City of Kenai’s ability to fund, maintain,
and improve roads, provide other services including 911, police, fire, and emergency medical,
senior citizen, and recreational services to visitors and residents; and,
WHEREAS, this measure would cause the City of Kenai to seek other sources of revenue to fund
basic services which would likely be in the form of significant increases in local taxes and fees;
and,
WHEREAS, this would also drastically affect other municipalities in the state with oil and gas
properties, severely impairing their ability to provide education and other services to their
residents; and,
WHEREAS, allowing municipalities to collect taxes on oil and gas property in their boundaries is
just, equitable, and appropriate as municipalities are impacted by their presence including
incurring costs of providing education to their employees and their families, fire and emergency 25
Resolution No. 2019-17
Page 2 of 2
medical services, law enforcement, solid waste services, road services, hospital services,
recreational services, 911 services, and many other services; and,
WHEREAS, the general property tax rate levied by the City is currently 4.35 mills on property
located in the City which is a reasonable and responsible rate; and,
WHEREAS, the highest property tax rate levied against any oil and gas property in the Kenai
Peninsula Borough is currently 10.33 mills and the lowest such rate is 4.70 mills; and,
WHEREAS, a more equitable approach would be to allow municipalities to levy a tax under AS
43.56 of up to 15 mills on oil and gas property thereby ensuring that the State of Alaska would
receive tax revenue allowed under AS 43.56 from these properties and continuing to provide
much needed funding for the affected municipalities.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That Governor Dunleavy and the state legislature are strongly encouraged to
modify SB 57 and HB 59 to allow municipalities to continue to levy local property taxes on AS
43.56 oil and gas properties at a rate up to 15 mills.
Section 2. That a copy of this resolution shall be sent to Governor Dunleavy, all members of
the Alaska House of Representatives and all members of the Alaska State Senate.
Section 3. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
26
MEMORANDUM
TO: Members, Kenai City Council
FROM: Mayor Brian Gabriel and City Council Member Robert Peterkin
DATE: March 14, 2019
SUBJECT: Resolution No. 2019 – 17 in Support of Modifying SB 57 and HB 59
____________________________________________________________________________
Governor Michael Dunleavy has transmitted Senate Bill 57 and House Bill 59 to the legislature
for their consideration. These bills specifically exempt oil and gas, exploration, production and
pipeline transportation property from taxation by municipalities while preserving the States right
to tax those properties.
The Constitution of the State of Alaska was crafted to create a strong, fiscally sound system of
local government. Specifically, the first section of the Local Government Article of the Alaska
Constitution states: “The purpose of this article is to provide for maximum local self-government
with a minimum of local government units, and to prevent duplication of tax-levying jurisdictions.
A liberal construction shall be given to the powers of local government”. By imposing exemptions
and limiting the ability to generate revenues, the State is weakening a municipality’s ability to
provide for maximum local self-governance; an important tenant of our Constitution.
We recognize the difficulties the State is facing, with falling oil revenues and dwindling savings,
however, replacing those revenues by undermining the ability of local municipalities to generate
revenues to provide essential services does not resolve the State’s fiscal issues, it simply shifts
the burden to the local level. This Resolution recommends a more equitable approach to the
taxation of oil and gas properties, protecting a municipality’s right to levy tax on these properties
at a reasonable level up to 15 mills, while providing an opportunity for the State to receive tax
revenues on the same property.
Your consideration is appreciated.
27
_____________________________________________________________________________________
Sponsored by: Mayor Gabriel and
Council Member Peterkin
CITY OF KENAI
RESOLUTION NO. 2019 - 18
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, OPPOSING SB 63 AND HB 65
REPEALING FISHERIES BUSINESS TAX REFUNDS TO MUNICIPALITIES AND REVENUE
SHARING FOR FISHERY RESOURCE LANDING TAXES.
WHEREAS, Governor Michael Dunleavy has transmitted SB 63 and HB 65 to the legislature
which would remove local municipalities’ ability to receive local fisheries business taxes and
fishery resource landing taxes; and,
WHEREAS, these bills shifts local tax authority and revenue from the City of Kenai to the state;
and,
WHEREAS, the taxes are based on fish landed or processed within the municipal jurisdictions;
and,
WHEREAS, Article X, Section 1, of the Alaska Constitution provides for maximum local self-
government and a liberal construction applied to the powers of local government; and,
WHEREAS, removing revenue sources from municipalities and forcing them to increase the
burden on residents to provide similar service does not equate to cutting the State budget and is
inconsistent with Article X Section 1 of the Alaska Constitution; and,
WHEREAS, the State of Alaska Department of Commerce, Community and Economic
Development Division of Community and Regional Affairs webpage provides, that the
Department’s Shared Fishery Business tax Program was created to help municipalities impacted
by the effects of the rapidly expanding offshore fish processing industry; and,
WHEREAS, the City provides numerous resources to the commercial fishing industry including a
dock, police, fire, emergency medical, planning, senior housing and care, water, sewer, library
and road services; and,
WHEREAS, in fiscal year 2019 the City received approximately $128,000 from the fishery
business tax and fishery resource landing tax; and,
WHEREAS, this reduction in revenue would burden the City’s ability to fund services to this
industry and/ or force the City to seek other revenue services potentially further burdening the
industry.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That Governor Dunleavy and the state legislature are strongly encouraged to
rescind or not support SB 63 and HB 65 and continue to allow local municipalities to receive raw
28
Resolution No. 2019-18
Page 2 of 2
fish taxes and fisheries business taxes and provide services to the commercial fishing industry
without additional burden.
Section 2. That a copy of this resolution shall be sent to Governor Dunleavy, all members of
the Alaska House of Representatives and all members of the Alaska State Senate.
Section 3. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
29
MEMORANDUM
TO: Members, Kenai City Council
FROM: Mayor Brian Gabriel and Council Member Robert Peterkin
DATE: March 14, 2019
SUBJECT: Resolution No. 2019 – 18 Opposing SB 63 and HB 65
____________________________________________________________________________
Governor Michael Dunleavy has transmitted Senate Bill 63 and House Bill 65 to the legislature
which would remove local municipalities’ ability to receive local fisheries business taxes and
fishery resource landing taxes. These two taxes are collected by the State and shared with
municipalities in order for those local governments to provide services, strengthen infrastructure
and build capacity for the industry to operate effectively in these communities.
These revenues are an important component of the City of Kenai’s annual budget, equating to
$128,000 in fiscal year 2019. Other years, this revenue is more significant. For example, in fiscal
year 2016 revenues for fisheries business taxes and fishery resource landing taxes exceeded
$198,000.
Because the impacts associated with these fisheries is most significant where the landings occur,
it is fair and reasonable that the revenue generated from these taxes goes to those communities.
Maintaining the current methods of sharing these revenues is important to the City of Kenai and
to many other communities across the State.
This Resolution strongly encourages Governor Dunleavy and the state legislature to rescind or
not support Senate Bill 63 and House Bill 65.
Your support is appreciated.
30
KENAI CITY COUNCIL – REGULAR MEETING
MARCH 6, 2019 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR BRIAN GABRIEL, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on March 6, 2019, in City Hall Council
Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Brian Gabriel, Mayor Robert Molloy (absent)
Henry Knackstedt Tim Navarre
Jim Glendening Robert Peterkin
Glenese Pettey
A quorum was present.
Also in attendance were:
**Student Representative Tristan Summers
Paul Ostrander, City Manager
Scott Bloom, City Attorney
Jamie Heinz, City Clerk
3. Agenda Approval
Mayor Gabriel noted the following revisions to the agenda:
Remove item G.2. Purchase Orders over $15,000
MOTION:
Council Member Knackstedt MOVED to approve the agenda with the requested revisions to the
agenda. Vice Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT
VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
31
City of Kenai Council Meeting Page 2 of 7
March 6, 2019
MOTION:
Council Member Knackstedt MOVED to approve the consent agenda and Council Member
Glendening SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
It was requested that New Business item 5, Ordinance No. 3056-2019, be removed from the
consent agenda.
VOTE:
YEA: Knackstedt, Gabriel, Glendening, Pettey, Peterkin, Navarre
NAY:
MOTION PASSED UNANIMOUSLY.
*All items listed with an asterisk (*) are considered to be routine and non-controversial
by the council and will be approved by one motion. There will be no separate
discussion of these items unless a council member so requests, in which case the item
will be removed from the consent agenda and considered in its normal sequence on
the agenda as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS – None.
C. UNSCHEDULED PUBLIC COMMENTS
Joe Harris expressed concern with the Request for Proposal for the Visitor Center noting the
address was for the cabin where the Historical Society operates.
Marian Nelson provided an overview of the upcoming exhibitions at the Kenai Fine Arts Center
and requested that the restored fire truck be present at the Fine Arts Center during the June
exhibition.
D. PUBLIC HEARINGS
1. Resolution No. 2019-14 – Authorizing the City Manager to Enter into an Amended
Restaurant Concession Agreement for the Kenai Municipal Airport. (Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-14 and Vice Mayor
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public hearing
was closed.
There was concern that the reduction amount and length of time wasn’t enough and it was
suggested the manager be given authority to amend, as necessary, through the construction
project.
32
City of Kenai Council Meeting Page 3 of 7
March 6, 2019
It was suggested that what was done with this concession, should be done with the rest and a
point was made that not all tenants were in similar situations.
Clarification was provided that the intent was to reduce the payment percentage during the
impactful months with the thought the receipts would go up in the summer months due to
increased travel.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend Section 1 of the resolution to read, “That the City Manager
is authorized to execute an amendment to the concession contract with The Brother’s Café to
amend the monthly percentage of gross receipts, plus applicable sales tax, until the restaurant is
no longer impacted by construction activity during the Terminal Rehabilitation Project as
determined by the City Manager. If gross receipts indicate an additional discount is justified, the
City Manager may further decrease the monthly percentage of gross receipts due to the City
during the Terminal Rehabilitation Project, in compliance with applicable FAA requirements.
Decisions made by the City Manager shall be final and not subject to appeal.” And to also amend
the last whereas clause to read, “City Administration has determined that the request is
reasonable due to impacts from the construction, and that an additional decrease for an extended
period of time and in the monthly percentage may be justified,” and Council Member Glendening
SECONDED the motion. UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
Clarification was provided the amended fee would be applied retroactively for the February
payment.
VOTE ON THE MAIN MOTION AS AMENDED: There being no objection; SO ORDERED.
E. MINUTES
1.*Work Session Summary of February 20, 2019
Approved by the consent agenda.
2.*Regular Meeting of February 20, 2019
Approved by the consent agenda.
F. UNFINISHED BUSINESS
1. Ordinance No. 3048-2019 – Amending Kenai Municipal Code Chapter 5.25, Mobile
Food Vendors, to Revise Application Requirements, License Terms, and Business
Conduct Requirements and Make Other Housekeeping Amendments. (City Clerk)
[Clerk’s Note: During the 02/06/19 Meeting, this Item was Postponed to This Meeting;
a Motion to Enact is On the Floor.]
• Substitute Ordinance No. 3048-2019
MOTION TO AMEND:
33
City of Kenai Council Meeting Page 4 of 7
March 6, 2019
Council Member Knackstedt MOVED to amend by replacing with the substitute ordinance. Vice
Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT.
VOTE: There being no objection; SO ORDERED.
VOTE ON THE MAIN MOTION AS AMENDED:
YEA: Knackstedt, Gabriel, Glendening, Pettey, Peterkin, Navarre
NAY:
MOTION PASSED UNANIMOUSLY.
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified.(Administration)
Approved by the consent agenda.
2. *Action/Approval – Purchase Orders Exceeding $15,000. (Administration)
[Clerk’s Note: This item was removed from the agenda during approval of the agenda.]
3. *Ordinance No. 3054-2019 - Accepting Drug Seizure Funds Forfeited to the City
in the Amount of $2,153.52 and Appropriating those Funds into the Police
Professional Services Account in the Furtherance of Criminal Investigations.
(Administration)
Approved by the consent agenda; public hearing set for March 20, 2019.
4. *Ordinance No. 3055-2019 – Accepting and Appropriating a Scholarship from the
Alaska Association of Municipal Clerks for Employee Travel and Training.
(Administration)
Approved by the consent agenda; public hearing set for March 20, 2019.
5. *Ordinance No. 3056-2019 – Amending Kenai Municipal Code 14.22.010-Land
Use Table, to Allow Business/ Consumer Services and Taxidermy/Gunsmithing in
RR1 Zoning District by Conditional Use Permit and Removing the Location
Restriction on Professional Offices Allowed by Conditional Use Permit Within the
RR1 Zone. (Council Members Peterkin & Glendening)
MOTION:
Council Member Glendening MOVED to introduce Ordinance No. 3056-2019, refer it to the
Planning and Zoning Commission for a recommendation at their March 27 meeting, and set the
hearing before City Council for the April 3 meeting and Council Member Peterkin SECONDED
the motion. UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
34
City of Kenai Council Meeting Page 5 of 7
March 6, 2019
6. Discussion – Special Use Permit to Kenaitze Indian Tribe for Snow Storage.
(Administration)
MOTION:
Council Member Knackstedt MOVED to approve the Special Use Permit to Kenaitze Indian Tribe
for snow storage. Vice Mayor Navarre SECONDED the motion and requested UNANIMOUS
CONSENT.
VOTE: There being no objection; SO ORDERED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – The upcoming March for Meals Auction was noted; next meeting
March 14.
2. Airport Commission – No report; next meeting March 14.
3. Harbor Commission – No report; next meeting March 11.
4. Parks and Recreation Commission – No report; next meeting March 7.
5. Planning and Zoning Commission – It was reported that at their February 27 meeting,
the Commission heard an encroachment permit which was postponed to the next
meeting for proper public notice and also heard a conditional use permit for a Boarding
House which was approved; next meeting March 13.
6. Beautification Committee – No report; next meeting April 9.
7. Mini-Grant Steering Committee – No report.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Attended the recent Election Stakeholder Meeting where the group was looking
at recommendations for the borough regarding elections;
• Swore in a new police officer;
• Spoke before the Chamber of Commerce Luncheon for the State of the City.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Attended a roundtable discussion to discuss the SFY2020 budget;
• Continuing to attempt to discuss the Board of Fisheries action with the Governor’s
Office;
• Red Cross successfully moved into the Beacon Building;
• Discussing accessibility options for a piece of property on the flats; agreed to
using an existing section line easement;
• Contacted the congressional delegation regarding the Bluff Erosion Project; still
waiting on the signed Director’s Report; still pursuing accelerated funding;
• Noted upcoming leave. 35
City of Kenai Council Meeting Page 6 of 7
March 6, 2019
2. City Attorney – No Report.
3. City Clerk – No Report.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
Vice Mayor Navarre noted he was in Juneau at AML during last meeting; thanked the City
Manager and Finance Director for their work in analyzing the budget and impacts to the City; was
supportive of Kenai Peninsula Borough legislation for municipalities taxing oil and gas properties.
Further noted he attended Alaska Gas Line Development Corporation meetings where they
discussed downsizing, buyers, and Federal Energy Regulatory Commission permitting; also
discussed the Alaska Stand Alone Pipeline.
Council Member Glendening expressed kudos in how public works handled the recent snow
events; noted the airport project was progressing well; looked forward to budget interactions.
Council Member Peterkin noted he attended the Chamber of Commerce luncheon. Also noted
he planned to introduce a resolution similar to the Kenai Peninsula Borough’s regarding mil rates
on oil producing properties.
Student Representative Summers provided an update on a recent trip student council took, prom,
their Pennies for Patients project, state cross-country skiing competition in Fairbanks, recent
Kenai Middle School choir concert, and a recent Job Shadow event where he followed a
mechanical engineer.
Council Member Knackstedt expressed appreciation for the Red Cross being in Kenai; noted he
was unable to attend the Chamber of Commerce luncheon because he judged Caring for the
Kenai projects.
L. EXECUTIVE SESSION – None.
M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 7:27 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of March 6,
2019.
_____________________________
Jamie Heinz, CMC
City Clerk
36
City of Kenai Council Meeting Page 7 of 7
March 6, 2019
**The student representative may cast advisory votes on all matters except those subject to
executive session discussion. Advisory votes shall be cast in the rotation of the official council
vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded
in the minutes. A student representative may not move or second items during a council meeting.
37
PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: MARCH 20, 2019
VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT
PERS PERS VARIOUS LIABILITY 91,111 .56
INTEGRITY JANITORIAL FEB. SERVICE AT CITY HALL NON-DEPARTMENTAL REPAIR & MAINTENANCE 1 ,389.00
PRECIOUS JANITORIAL FEB. SERVICE AT LIBRARY LIBRARY REPAIR & MAINTENANCE 2,795 .00
PRECIOUS JANITORIAL FEB. SERVICE AT TERMINAL AIRPORT REPAIR & MAINTENANCE 4 ,495.00
PRECIOUS JANITORIAL FEB . SERVICE AT POLICE POLICE REPAIR & MAINTENANCE 978.00
PRECIOUS JAN ITORIAL FEB . SERVICE AT VISITOR CENTER VISITOR CENTER REPAIR & MAINTENANCE 928.00
HOMER ELECTRIC ELECTR ICITY USAGE VARIOUS UTILITIES 131,322.84
EN STAR GAS USAGE VARIOUS UTILITIES 39,329.02
INVESTMENTS
VENDOR DESCRIPTION MATURITY DATE AMOUNT Effect. Int.
38
PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL
COUNCIL MEETING OF: MARCH 20, 2019
VENDOR DESCRIPTION
ALASKA RO TEQ CORP. (2) WASTING PUMPS
INCREASE OF EXISTING PURCHASE ORDER
VENDOR
SADLER PROPERTY
MANAGEMENT
DESCRIPTION
FY19 CONTRACTOR FEE FOR
CONGREGATE HOUSING
DEPT.
WWTP
P.O. # -DEPT.
115832 -CONG.
HOUSING
ACCOUNT
MACHINERY & EQUIPMENT
REASON
TO COVER
REMAINING FY
AMOUNT
2,000 .00
AMOUNT
16,826.00
TOTAL PO AMT
63 ,260.00
39
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin – Public Works Director
DATE: March 13, 2019
SUBJECT: PO over $15,000-Alaska Roteq Corporation
____________________________________________________________________________
The purpose of this memo is to authorize the purchase of two (2) wasting pumps for the City’s
Waste Water Treatment Plant. These pumps will replace the existing 30+ year old pumps, one
of which has been out of service for some time. This is a high priority item for the Department.
Staff has been working to reinstitute levels of redundancy within our process, this planned
replacement will provide a greater level of safety and security to Plant Operations.
Public Works Staff competitively quoted three different manufacturer offerings. Alaska Roteq
Corporation was determined as providing two pumps at the greatest value to the City. Total cost
of these pumps is $16,826.00. This is a planned and budgeted purchase with funds coming from
account 010-467-8064.
Approval of this purchase will assist Staff in maintaining the Facility’s permit requirements while
providing for the continued safe operation of the Plant.
Council’s approval is respectfully requested.
40
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: March 11, 2019
SUBJECT: Purchase Order Increase to Sadler Property Management
The purpose of this memo is to request an increase of $2,000 to purchase order #115832 to
Sadler Property Management (Contractor) for the FY19 Contractor’s Fee for Vintage Pointe
Manor.
The initial purchase order was as follows:
FY18 Contractor’s Fee $58,450.08
Emergency Repairs 1,882.63
Repair Parts 927.29
Total $61,260.00
Emergency parts and repairs historically were paid through the department. The current contract
dated October 1, 2016, allows these to be paid through the Contractor. I am asking for the
increase to cover the remainder of FY19.
Thank you for your consideration.
41
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3057-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND
APPROPRIATING A GRANT FROM THE STATE OF ALASKA DEPARTMENT OF PUBLIC
SAFETY FOR CRIME PREVENTION AND RESPONSE AND EQUIPMENT FOR THE
PURCHASE OF PORTABLE RADIOS AND ACCESSORIES FOR THE POLICE DEPARTMENT,
AND TO PURCHASE SUPPLIES IN SUPPORT OF THE DARE PROGRAMS CONDUCTED BY
THE POLICE DEPARTMENT IN LOCAL ELEMENTARY SCHOOLS.
WHEREAS, The State of Alaska Department of Public Safety received funding from the
legislature specifically for “Crime Prevention and Response and Equipment”.
WHEREAS, the Kenai Police Department applied for part of that funding and received notice that
it was awarded $108,000 for specific items; and,
WHEREAS, the projects that were awarded funding include replacement of police portable radios
for $100,000, and supplies for the DARE program in the amount of $8,000; and,
WHEREAS, the portable public safety radios used by police are reaching the end of their
maintenance life, and these funds, in addition to a previous grant, will complete the replacement
of the portable radios in the police department; and,
WHEREAS, these funds do not require a monetary match from the City.
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 Public Safety for the purchase of portable police radios and for the purchase of
DARE supplies.
Section 2. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Police - State Grants $108,000
Increase Appropriations –
Police – Small Tools $100,000
Police – Operating 8,000
$108,000
Section 3. That the City Manager is authorized to execute any required grant documents and
expend the funds in accordance with grant provisions and conditions.
42
Ordinance No. 3057-2018
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New Text Underlined; [DELETED TEXT BRACKETED]
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of April, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: _________________
Introduced: March 20, 2019
Enacted: April 3, 2019
Effective: April 3, 2019
43
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: March 11, 2019
SUBJECT: Ordinance No. 3057-2019 accepting and appropriating a grant from the
State of Alaska Department of Public Safety to purchase portable radios
and DARE supplies.
______________________________________________________________________
The State of Alaska Department of Public Safety (DPS) was allotted funds for “Crime Prevention
and Response and Equipment” during the last legislative session. DPS solicited from law
enforcement agencies Statewide for local requests for the use of those funds.
The Police Department submitted several requests to utilize those funds and two of those
requests were approved:
1. P-25 compliant portable radios and accessories - $100,000
2. Supplies to support the DARE program in local schools - $8000
The portable radios currently in use are nearing the end of their maintenance life, and this grant,
in addition to some previous grant funds, will complete the replacement of all those portable radios
in the police department.
The supplies used in the teaching of the DARE program (i.e. DARE books, water bottles, t-shirts,
etc.) have long been funded with the support of local donations and industry partners. This
infusion of supplies, along with continued local support will be invaluable to continuing this
program in the local elementary schools.
I am respectfully requesting consideration of the ordinance accepting and appropriating those
grant funds for the purposes they were intended.
44
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3058-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING
PROVISIONS IN KENAI MUNICIPAL CODE TITLE 7 – FINANCE, TAXATION, AND BUSINESS
AFFAIRS OF THE CITY, INCLUDING INVESTMENT OF MONIES – SCOPE AND OBJECTIVES
7.22.010; LAND SALE PERMANENT FUNDS – GENERAL FUND LAND SALE PERMANENT
FUND 7.30.005; INVESTMENTS 7.30.020; FOR UPDATES TO MANAGEMENT PRACTICES
FOR THE CITY’S GENERAL LAND SALE AND AIRPORT LAND SALE PERMANENT FUNDS.
WHEREAS, 2019 represents the tenth year of the current policy of investing the City General
Land Sale and Airport Land Sale Permanent Funds; and,
WHEREAS, the proposed amendments will change the investment methodology and distribution
methodology of the City’s permanent funds to better ensure their long-term viability and ability to
consistently contribute to the annual operations and capital needs of the City’s General and
Airport Special Revenue Funds; and,
WHEREAS, in consultation with the City’s Permanent Fund investment advisor the administration
is proposing changes to the City’s authorized investments in KMC 7.30.020(b), to incorporate a
new asset class to provide improved diversification and enhance the return of the portfolio; and,
WHEREAS, the proposed amendments provide other general housekeeping amendments.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. Amendment of Section 7.22.010 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 7.22.010- Investment of Monies – Scope and objectives, is hereby
amended as follows:
7.22.010 Scope and objectives.
(a) This chapter applies to the investment of all City monies held in all City funds, except for
pension and retirement monies, deferred compensation accounts and the Airport Land
Sale Permanent Fund and General Fund Land Sale Permanent Fund which shall be
governed by KMC 7.30.
(b) The City’s investment portfolio shall be managed so that the portfolio, as a whole, meets
the objectives set forth below. All persons selecting investments for City monies shall
adhere to these objectives, which are listed in order of relative importance:
(1) Safety of principal;
45
Ordinance No. 3058-2018
Page 2 of 6
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New Text Underlined; [DELETED TEXT BRACKETED]
(2) Maintaining sufficient liquidity to meet the City’s cash flow requirements; and
(3) Achieving a reasonable market-average rate of return.
Section 2. Amendment of Section 7.30.005 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 7.30.005- Land Sale Permanent Funds – General Fund Land Sale
Permanent Fund, is hereby amended as follows:
7.30.005 General Fund Land Sale Permanent Fund.
(a) A separate fund of the City of Kenai is hereby established as the General Fund Land Sale
Permanent Fund. The purpose of the fund is to account for the principal proceeds of the
sale of City-owned non-trust lands that are not subject to deed or other conveyance
restrictions that require the funds be used for specific other uses or benefits (General Fund
Lands).
(b) The General Fund Land Sale Permanent Fund shall be a restricted fund. City Charter
prescribes the establishment of a separate City account for the principal proceeds from
sales of City-owned, non-trust lands; however, the establishment of the investment
guidelines for that account is within the discretion of the Kenai City Council.
(c) The net proceeds received by the City on closing sale of non-trust lands shall be deposited
in the General Fund Land Sale Permanent Fund. Where notes are taken in payment for
General Fund Lands, all principal payments on said notes shall be deposited in the
General Fund Land Sale Permanent Fund. Interest on notes taken in payment for General
Fund Lands shall be recorded as investment earnings in the General Fund Land Sale
Permanent Fund.
(d) (Money placed in the General Fund Land Sale Permanent Fund shall not be available for
use by the City for any purpose other than for investments in accordance with City Charter
and ordinances.
(e) Interest or income earned by the General Fund Land Sale Permanent Fund shall be
recorded as investment earnings in the General Fund Land Sale Permanent Fund and
[THEN] can be deposited in the General Fund or held in reserve in the fund. The City
Council may, by ordinance, transfer funds from the General Fund to the General Fund
Land Sale Permanent Fund. After such a transfer, the money will become a part of the
General Fund Land Sale Permanent Fund to be used only for the investment purposes for
which the fund is established.
Section 3. Amendment of Section 7.30.20 of the Kenai Municipal Code: That Kenai Municipal
Code, Section 7.30.020- Land Sale Permanent Funds – Investments, is hereby amended as
follows:
7.30.020 Investments.
(a) The Land Sale Permanent Funds shall be managed by the Finance Director, with the
following conditions:
46
Ordinance No. 3058-2018
Page 2 of 6
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New Text Underlined; [DELETED TEXT BRACKETED]
(1) The City will contract for the management of the investments for each Land Sale
Permanent Fund with one (1) or more professional investment managers with
experience handling institutional endowment investments subject to Council
approval.
(2) The Land Sale Permanent Funds shall be invested in such types of income
producing investments as limited by subsection (b), Authorized Investments for the
Land Sale Permanent Funds. The investments for each Land Sale Permanent
Fund shall be approved by resolution annually, usually during the City budget
process, in the form of an asset allocation plan, with each Land Sale Permanent
Fund following the same asset allocation plan. The asset allocation plan shall have
specific categories of investments for the funds with percentage targets that allow
for reasonable fluctuations above and below the target percentage. The plan will
establish benchmarks for evaluating the performance of each investment manager
and asset classification. Investments shall be managed such that the target ranges
of the asset allocation plan are adhered to.
(3) All income derived from investment of each Land Sale Permanent Fund, including
interest income, realized gains, and undistributed earnings [SHALL BE INCLUDED
IN THE CORPUS OF EACH] can be distributed or reinvested into the respective
Land Sale Permanent Fund and shall be invested in accordance with subsection
(b), Authorized Investments for the Land Sale Permanent Funds.
(4) Appropriations from the Airport Land Sale Permanent Fund may be made as
follows:
(A) In any fiscal year, [AN AMOUNT NOT TO EXCEED FIVE PERCENT
(5%) OF] the amount available for appropriation for airport operations
and capital needs will be based upon the five (5) year average of the
fund’s calendar year end market value [MAY BE APPROPRIATED FOR
AIRPORT OPERATIONS AND CAPITAL NEEDS. FOR THE FIRST
FIVE (5) YEARS THE CALENDAR YEAR END MARKET VALUES
FOLLOWING THE EFFECTIVE DATE OF THE ORDINANCE
CODIFIED IN THIS SECTION WILL BE AVERAGED TO CALCULATE
THE AVERAGE FUND MARKET VALUE.] An amount not to exceed
3.8% of the 5 year average market value may be distributed if the
average market value is less than the fund’s inflation adjusted principal
balance. An amount not to exceed 4.2% of the 5 year average market
value may be distributed if the average market value is greater than the
fund’s inflation adjusted principal balance.
[(B) FOR THE FIRST YEAR, FY 2009, THE APPROPRIATION FROM THE
FUND SHALL NOT EXCEED THE LESSER OF EITHER FIVE
PERCENT (5%) OF THE MARKET VALUE OF THE FUND AT THE
EFFECTIVE DATE OF THE ORDINANCE CODIFIED IN THIS
SECTION OR THE INCREASE IN THE MARKET VALUE OF THE
FUND FROM THE EFFECTIVE DATE OF THE ORDINANCE
CODIFIED IN THIS SECTION TO MAY 31, 2009.
47
Ordinance No. 3058-2018
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New Text Underlined; [DELETED TEXT BRACKETED]
(C) FOR THE SECOND YEAR, FY 2010, THE APPROPRIATION FROM
THE FUND SHALL NOT EXCEED THE LESSER OF EITHER FIVE
PERCENT (5%) OF THE MARKET VALUE OF THE FUND AT
DECEMBER 31, 2008 OR THE INCREASE IN THE MARKET VALUE
OF THE FUND FROM THE EFFECTIVE DATE OF THE ORDINANCE
CODIFIED IN THIS SECTION TO MAY 31, 2010, LESS THE AMOUNT
APPROPRIATED FOR FY 2009.]
(5) Appropriations from the General Fund Land Sale Permanent Fund shall be limited
to the lesser of the [ACTUAL CALENDAR YEAR] cumulative earnings at calendar
year end for the fund or [FIVE] four percent ([5]4%) of the fund’s fair market value
as of December 31st of each year. Cumulative earnings is defined as the market
value at calendar year end minus the fund’s inflation adjusted principal balance.
(b) Authorized Investments for the Land Sale Permanent Funds.
(1) Investments authorized by KMC 7.22.030.
(2) Corporate obligations of investment-grade quality as recognized by a nationally
recognized rating organization. If, after purchase, these obligations are
downgraded below investment grade, the obligations shall be sold in an orderly
manner within ninety (90) days of downgrading.
(3) Domestic equities, which taken as a whole, attempt to mirror the characteristics or
replicate the Standard and Poor’s 500 Index or another index of similar
characteristics and approved by Resolution of the Council as a component of the
annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual
funds and exchange traded funds (ETFs).
(4) Domestic equities, which taken as a whole, attempt to replicate the Standard and
Poor’s 400 Mid-Cap Index or another index of similar characteristics and
approved by Resolution of the Council as a component of the annual Land Sale
Permanent Funds Asset Allocation Plan, including both mutual funds and
exchange traded funds (ETFs).
(5) Domestic equities, which taken as a whole, attempt to replicate the Standard and
Poor’s 600 Small-Cap Index or another index of similar characteristics and
approved by Resolution of the Council as a component of the annual Land Sale
Permanent Funds Asset Allocation Plan, including both mutual funds and
exchange traded funds (ETFs).
(6) International equities, which taken as a whole, attempt to replicate the Financial
Times Stock Exchange Developed ex North America Index or another index of
similar characteristics and approved by Resolution of the Council as a component
of the annual Land Sale Permanent Funds Asset Allocation Plan, including both
mutual funds and exchange traded funds (ETFs).
(7) Equities, which taken as a whole, attempt to replicate the universe of domestic
real estate investment trusts as represented by the Standard and Poor’s REIT
48
Ordinance No. 3058-2018
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_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
composite index or another index of similar characteristics and approved by
Resolution of the Council as a component of the annual Land Sale Permanent
Funds Asset Allocation Plan, including both mutual funds and exchange traded
funds (ETFs).
(8) Emerging market equities, which taken as a whole, attempt to replicate the
Financial Times Stock Exchange Emerging Index or another index of similar
characteristics and approved by Resolution of the Council as a component of the
annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual
funds and exchange traded funds (ETFs).
(9) Global infrastructure equities, which taken as a whole, attempt to replicate the
STOXX Global Broad Infrastructure Index, or a substantially similar index,
including both mutual funds and exchange traded funds.
(10) Domestic bonds, which taken as a whole attempt to mirror the characteristics or
replicate the Bloomberg Barclays Aggregate bond index or another index of
similar characteristics and approved by Resolution of the Council as a component
of the annual Land Sale Permanent Funds Asset Allocation Plan, including
individual securities, mutual funds and exchange traded funds (ETFs).
(c) Officers and employees involved in the investment process shall refrain from personal
business activity that could conflict with proper execution of the investment program, or
that could impair their ability to make impartial investment decisions. Such employees and
officers shall disclose to the City Manager any material financial interests in financial
institutions that conduct business with the City and such information shall be kept
confidential to the extent otherwise allowed by law. Employees and officers shall
subordinate their personal investment transactions to those of the City, particularly with
regard to the timing of purchases and sales. A “material financial interest” in an entity is a
financial interest of any kind, which, in view of all the circumstances, is substantial enough
that it would, or reasonably could, affect the employee’s or officer’s judgment with respect
to transactions to which the entity is a party.
(d) The Finance Director shall submit to the City Council a quarterly investment report that
summarizes recent and anticipated market conditions and that describes the City’s
investment portfolio in terms of transactions during the quarter, maturities, risk
characteristics, and investment return compared with both bench mark performance
returns and with the City’s budgetary expectations.
(e) The Finance Director shall establish custody and safekeeping procedures with regard to
all investments authorized by this chapter. All such investment securities, or their related
collateral securities, shall be either held by the City or by a custodial agent for the City.
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
49
Ordinance No. 3058-2018
Page 2 of 6
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of April, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: _________________
Introduced: March 20, 2019
Enacted: April 3, 2019
Effective: May 3, 2019
50
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: March 13, 2019
SUBJECT: Ordinance No. 3058-2019 – Proposed Amendment to the Authorized
Investments and Distribution Methodology for the City’s Permanent
Funds.
____________________________________________________________________________
The purpose of this memo is to recommend passage of ordinance 3058-2019. Ordinance 3058-
2019 will codify recommended changes to the allowable investments of the City’s General Fund
Land Sale and Airport Land Sale Permanent Funds and the distribution methodology for each of
these funds. A brief explanation of the recommended amendment for the applicable sections of
the Kenai Municipal Code (KMC) has been provided for your consideration.
7.22.010 Scope and objectives.
The requested amendment to KMC 7.22.010(a) should be classified as a housekeeping
amendment. The City’s General Land Sale Permanent Fund has been invested in the same
manner as the Airport Land Sale Permanent Fund since April of 2011. This is a change that
should have been made at that time but was overlooked.
7.30.005 General Fund Land Sale Permanent Fund.
The requested amendment to KMC 7.30.005(e) provides the framework for establishment of an
earnings reserve for the General Fund Land Sale Permanent Fund. Pursuant to Kenai Municipal
Charter section 5-11, there is a prohibition on the spending of the proceeds from City-owned, non-
trust lands. The administration proposes establishing an earnings reserve, similar to the Alaska
Permanent Fund Earnings Reserve, where investment earnings on the proceeds from City-
owned, non-trust lands can accumulate and be distributed to the City’s General Fund for use for
any lawful purpose. Distributions from this earnings reserve may occur outside of the year in
which investment earning occur. This is a fundamental change in the distribution methodology
for the General Fund Land Sale Permanent Fund that is expected to provide more consistent
distribution while complying with the requirement to never spend the principle balance received
from the sale of City-owned, non-trust lands.
51
Page 2 of 2
Ordinance No. 3058-2019 – Proposed Amendment to the Authorized Investments and
Distribution Methodology for the City’s Permanent Funds.
7.30.020 Investments.
The requested amendment to KMC 7.30.020(a)(3) codifies additional changes needed to
implement the earnings reserve concept for the General Fund Land Sale Permanent Fund started
with amendments to 7.30.005(e).
The requested amendment to KMC 7.30.020(a)(4)(A) will codify the new distribution methodology
for the Airport Land Sale Permanent Fund as recommended by the City’s investment advisor.
The new distribution methodology changes the annual distribution from five percent (5%) of the
five (5) year average of the fund’s calendar year end market value to four point two percent (4.2%)
if the five (5) year average market value is greater than inflation adjusted principal or three point
eight percent (3.8%) if the five (5) year average market value is less than inflation adjusted
principal. This new distribution methodology is needed to ensure the sustainability of the Airport
Land Sale Permanent Fund because the projections for future returns is less than the estimates
of ten years ago but provides for increased distributions should investment returns exceed
projections. The remaining changes to KMC 7.30.020(a)(4) can be classified as a housekeeping
amendment. The requested changes will eliminate language which was needed in 2008 for the
original implementation of the new Airport Land Sale Permanent Fund investment and distribution
methodology. These section can be eliminated as they are no longer needed or applicable.
The requested changes to KMC 7.30.020(a)(5) will codify the proposed distribution methodology
for the General Fund Land Sale Permanent Fund where the lesser of four percent (4%) of the
funds market value or the earnings reserve balance may be distributed in any one year.
The requested amendment to KMC 7.30.020(b) adds a new subsection nine (9) and ten (10) to
expand the allowable investment to include a new asset class, infrastructure, and provide the
benchmark by which the returns of this asset class will be measured. The City Investment
advisors have recommended the addition of this new asset class to enhance the returns of the
portfolio while increasing the overall risk of the portfolio by a minor amount.
Adoption of these amendments is recommended and will codify the City’s intent to provide for
inflation proofing of its permanent funds, provide for new distribution methodologies for both the
General Fund Land Sale and Airport Land Sale Permanent Funds that are both consistent and
sustainable, will expand the allowable investments to incorporate a new asset class to enhance
returns without significantly increase risk, and will provide housekeeping amendments. Your
support for Ordinance 3058-2019 is respectfully requested.
52
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary L. Bondurant
DATE: March 15, 2019
SUBJECT: Action/Approval – Special Use Permit State of Alaska DNR/Forestry
The State of Alaska, Department of Natural Resources/Division of Forestry is requesting renewal
of a Special Use Permit for a six month term from April 1, 2019 through September 30, 2019.
The Permit is for aircraft loading and parking on approximately 30,000 square of the apron
adjacent to their lease lot.
The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting.
Apron Rate Increases to Arrive at Market in 6 years
Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144
FY2016 $ 0.357
FY2017 $ 0.528
FY2018 $ 0.699
FY2019 $ 0.870
FY2020 $ 1.041
FY2021 $ 1.210
The State of Alaska is current on all fees owed and we have a current Certificate of Insurance.
Airport Commission reviewed the request at the March 14, 2019 Commission meeting and
recommends Council approval.
Does Council recommend the City Manager enter into a Special Use Permit with the State
of Alaska Division of Forestry?
Attachment
53
SPECIAL USE PERMIT 2019
The CITY OF KENAI (City) grants to STATE OF ALASKA DEPARTMENT OF
NATURAL RESOURCE S/DIVISION OF FORESTRY (Permittee), whose address is 550
W. Seventh Avenue, Suite 1450, Anchorage, AK 99501-3566 , a Special Use Permit to
conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport
subject to the requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as
de scribed in the attached diagram shown in the attached Exhibit A for the uses identified in
this Permit.
2. Term. The term of this Permit shall be for six months commencing on April 1, 2019,
and ending on September 30 , 2019. Regardless of the date of signature, this Permit shall be
effective as of April 1, 2019.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee plus applicable sales tax as follows:
April $2,175.00
May $ 2 ,175 .00
June $ 2 ,175.00
July $ 2 ,602.50
August $ 2 ,602.50
September $ 2 ,602 .50
B . Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses pem1itted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Pemlit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services , a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200 , Kenai , AK 99611. All permit fees
Special Use Pe1n1it-DNR/Forestry (Parking) Page 1 of 9 54
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due
(KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See ii 22, Termination).
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose(s):
Aircraft loading and parking. NOTE: This permit does not guarantee the exclusive use of
the area identified in Exhibit A. City reserves the right to re-assign Permittee. upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises .
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Aimort and as those laws and
regulations may b e amended from time to time.
Solicitation of donations or operation of a business or other commercial entemrise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft. aircraft engine. propeller. or apparatus in an area of the
Airport other than that specifically designated for that pumose by the Aimort Manager or
designated representative. The Aimort Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees , and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occmTence that threatens the safety of the Airport, the safety
Special Use Permit-DNR/Forestry (Parking) Page 2of9 55
of persons using the Airport, the public health or the envirorunent, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below , to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death , broad-fonn contractual, with a per-
occurrence limit of not less than $1 ,000 ,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee ' s
fuel handling activities . The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30 .045 . Permittee
is further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1 ,000 ,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy mu st name the
City as an additional insured .
D. All insurance required must meet the following additional requirements :
1. All policies will be by a company/corporation currently rated "A-"or
better by A.M. Best.
Special Use Permit-DNR/F orestry (Parking) Page 3of9 56
11. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies , certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ui. Permittee shall request a waiver of subrogation against City from
Permittee 's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv . Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by April 1,
2019. The effective date of the insurance shall be no later than April
1, 2019.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Pennittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless , the City of Kenai, its officers , agents, employees,
and volunteers from and against all actions , damages , costs , liability, claims, losses,
judgments , penalties, and expenses of every type and description , including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this pro v ision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises , Permittee 's acce ss to the Kenai Municipal Airport, and/or Pem1ittee's
exercise of the privileges granted in this Pennit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
Special Use Pennit-DNR/Forestry (Parking) Page 4 of9 57
12. Fuel Spill Prevention and Response Plan. Areas of the apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills . The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Permittee's use of the apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Pennittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee 's activities .
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8 , hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil , grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within 50'
of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150 /5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airp01is , the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current
version of the International Fire Codes . All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13 . Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials .
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14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap . Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable , and not
unjustly discriminatory , prices for each product or service provided at the Airport.
15. Licenses and Permits . Permittee shall obtain and maintain all required federal,
state , and local licenses, certificates, and other documents required fo r its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal , state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City 's grant assurances and federal
obligati ons.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20 . No Waiver. Failure to insist upon a strict compliance with the terms , conditions ,
and requirements herein contained, or referred to , shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements .
21. Personalty. Permittee shall remove an y and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 .00 per day. The City of
Special Use Permit-DNR/Forestry (Parking) Page 6 of9 59
Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
22. Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and , as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing , Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates , charges and fees. Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. lmpoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition , a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
25. Definitions. As used in this Permit, "Permittee" means State, Department of
Natural Resources. Division of Forestry, and where the context reasonably indicates , its
officers, agents, and employees. "Airport" means the Kenai Municipal Airport.
Special Use Permit-DNR/Forestry (Parking) Page 7of9 60
CITY OF KENAI
Paul Ostrander
City Manager
Date
STATE OF ALASKA
DEPARTMENT OF NATURAL
RESOURCES, DIVISION
OF FORESTRY
Timothy Dabney
Deputy Director,
Division of Forestry
Date
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS .
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai , an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires : ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrument was acknowledged before me by Timothy Dabney, Deputy Director,
DNR/Division of Forestry, on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires: ____ _
Special Use Permit-DNR/Forestry (Parking) Page 8of9 61
ATTEST:
Jamie Heinz, City Clerk
SEAL :
APPROVED AS FORM:
Seo
Special Use Permit-DNR/Forestry (Parking) Page 9of9 62
----
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Exhibit A 63
Kevin Meyer
Lieutenant Governor
State Capitol
Juneau, Alaska 99811
907.465.3520
WWW.LTGOV.ALASKA.GOV
OFFICE OF THE LIEUTENANT GOVERNOR
ALASKA
MEMORANDUM
TO: Debbie Morgan
530 West 7•h Ave, Suite 1700
Anchorage, Alaska 99501
907.269.7460
L T.GOVERNOR@ALASKA.GOV
Department of Commerce, Community and Economic Development
FROM:
DATE:
RE:
April Simpson, Office of the Lieutenant Governor ~ \ 9J.
465.4081 10"0
March 12, 2019
Filed Permanent Regulations: Marijuana Control Board
Marijuana Control Board: Marijuana Onsite Consumption (3 AAC 306.370)
Attorney General File:
Regulation Filed:
Effective Date:
Print:
JU2017200548
3/12/2019
4/11/2019
230,July 2019
cc with enclosures: Linda Miller, Department of Law
Judy Herndon, LexisN exis
64
ORDER CERTIFYING THE CHANGES TO
REGULATIONS OF MARIJUANA CONTROL BOARD
The attached 17 pages of regulations, dealing with onsite consumption endorsements for
marijuana licenses, are certified to be a correct copy of the regulation changes that the Marijuana
Control Board adopted at its December 20, 2018 meeting, under the authority of AS 17.38.121
and after compliance with the Administrative Procedure Act (AS 44.62), specifically including
notice under AS 44.62.190 and 44.62.200 and opportunity for public comment under
AS 44.62.210.
This action is not expected to require an increased appropriation.
On the record, in considering public comments, the Marijuana Control Board paid special
attention to the cost to private persons of the regulatory action being taken.
The regulation changes described in this order take effect on the 30th day after they have been
filed by the lieutenant governor, as provided in AS 44.62.180.
Date:
Erika McConnell, Director
Alcohol and Marijuana Control Office
FILING CERTIFICATION
I, Kevin Meyer, Lieutenant Governor for the State of Alaska, certify that on
m *"'"c "'-I d.-'20 Jt_ at I J. :3 3 (.hi ., I filed the attached regulations according to
the provisions of AS 44.62.040 -44.62.120.
Effective:
Register:
V"\·\ l \ I lo l/Ji .
0 ;{)I "\1' ~\J l ~ \1 .
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3 AAC 306.015( d) is amended to read:
( d) The board will impose other conditions or restrictions on a license or endorsement
issued under this chapter when it finds that it is in the interests of the public to do so.
(Eff. 2/21/2016, Register 217; add'l am 2/21/2016, Register 217; am Z.. I~ 2 01 q ,
. ,..,.,;;/ 'lt\t !L /.!J_/2ol'I 'R"j'Jhr t;o Regi s t er~ I
Authority: AS 17.38.010 AS 17.38.150 AS 17.38.200
AS 17.38.070 AS 17.38.190 AS 17.38.900
AS 17.38.121
3 AAC 306.025 is amended to read:
3 AAC 306.025. Application procedure. (a) An applicant must initiate a new
marijuana establishment license or endorsement application on a form the board prescribes,
using the board's electronic system.
(b) After initiating a new marijuana license or endor ement application, the applicant
must give notice of the application to the public by
(1) posting a copy of the application, on the form the board prescribes , for 10
days at
(A) the location of the proposed licensed premises ; and
(B) one other conspicuous location in the area of the proposed premises;
(2) publishing an announcement once a week for three consecutive weeks in a
newspaper of general circulation in the area; in an area where no newspaper circulates, the
applicant must arrange for broadcast announcements on a radio station serving the local area
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where the proposed licensee seeks to operate twice a week for three successive weeks during
triple A advertising time; the newspaper or radio notice must state
(A) the name of the applicant;
(B) the name and location of the proposed premises;
(C) the type of license or endorsement applied for along with a citation
to a provision of this chapter authorizing that type of license or endorsement; and
(D) a statement that any comment or objection may be submitted to the
board; and
(3) submitting a copy of the application on the form the board prescribes to
(A) the local government; and
(B) any community council in the area of the proposed licensed premises.
( c) After the applicant completes the notice requirements in (b) of this section and
submits each remaining application requirement listed in 3 AAC 306.020, the applicant must
pay the application and license fees set out in 3 AAC 306.100. The notice requirements in (b) of
this section must be given within the 90 days preceding the submittal of all application
requirements listed in 3 AAC 306.020 and the application and license fee.
( d) When the director receives an application for a marijuana establishment license or
endorsement the director shall determine if the application is complete. Any application for a
marijuana establishment license or endorsement that the director receives without the
application and license fee is incomplete. If the director determines the application is complete,
the director shall immediately give written notice to;
( 1) the applicant;
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(2) the local government with jurisdiction over the applicant's proposed licensed
premises;
(3) the community council if the proposed licensed premises are located within
the boundary of a community council established by municipal charter or ordinance; and
( 4) any nonprofit community organization that has requested notification in
writing.
( e) If an application for a marijuana establishment license or endorsement is
incomplete, the director shall notify the applicant by electronic mail at the address provided by
the applicant and shall either
( 1) return an incomplete application in its entirety; or
(2) request the applicant to provide additional identified items needed to
complete the application.
(f) When the director informs an applicant that its application is incomplete as provided
in ( e) of this section, the applicant must complete the application not later than 90 days after the
date of the director's notice. If an applicant fails to complete its application during the 90-day
period after the director's notice, the applicant must file a new application and pay a new
application fee to obtain a marijuana establishment license or endorsement.
(g) The director may, not less than 90 days after initiation of an application, inform an
applicant by electronic mail at the address provided by the applicant that missing application
requirements listed in 3 AAC 306.020 must be submitted within 90 days. If an applicant fails to
submit all missing application requirements during the 90-day period after the director's notice,
the applicant must file a new application and pay a new application fee to obtain a marijuana
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establishment license. (Eff. 2/21/2016, Register 217; am 12/28/2017, Register 224;
am L!.!:J...! 2.01<-1 , Register z2q ; am _i__/_I\_/ lo I ~ , Register i~ O )
Authority: AS 17.38.010
AS 17.38.070
AS 17.38.121
3 AAC 306.060 is amended to read:
AS 17.38.150
AS 17.38.190
AS 17.38.200
AS 17.38.900
3 AAC 306.060. Protest by local government. (a) Not later than 60 days after the
director sends notice of an application for a new marijuana establishment license, a new onsite
consumption endorsement, renewal of a marijuana establishment license , renewal of an
onsite consumption endorsement, license conversion, or transfer of a marijuana establishment
license to another person, a local government may protest the application by sending the
director and the applicant a written protest and the reasons for the protest. The director may not
accept a protest received after the 60-day period. If a local government protests an application
for a new or renewal license, a new or renewal onsitc consumption endors ement, for a
license conversion , or for a transfer of a license to another person, the board will deny the
application unless the board finds that the protest is arbitrary, capricious, and umeasonable.
(b) A local government may recommend that the board approve an application for a new
license, a new onsite consumption endorsement, renewal of a license, renewal of an on.site
consumption endorsement, license conversion, or transfer of a license to another person
subject to a condition. The board will impose a condition a local government recommends
unless the board finds the recommended condition is arbitrary, capricious , and umeasonable. If
the board imposes a condition a local government recommends , the local government shall
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assume responsibility for monitoring compliance with the condition unless the board provides
otherwise.
( c) If a local government determines that a marijuana establishment has violated a
provision of AS 17.38, this chapter, or a condition the board has imposed on the licensee, the
local government may notify the board. Unless the director finds that the local government's
notice is arbitrary, capricious, and unreasonable, the director shall prepare the determination as
an accusation against the licensee under AS 44.62.360 and conduct proceedings to resolve the
matter as provided under 3 AAC 306.820. (Eff. 2/21/2016, Register 217; am2JJ.\ I to\'\ ,
Registeri11_; am-1_/JLj iol~ , Re g i ter t3o )
Authority: AS 17.38.010 AS 17.38.150 AS 17.38.200
AS 17.38.070
AS 17.38.121
3 AAC 306.100 is amended to read:
AS 17.38.190 AS 17.38.900
3 AAC 306.100. Fees; refund. (a) The non-refundable application fee for a new
marijuana establishment license, an application for license conversion, or an application to
transfer a license to another person is $1,000. The non-refundable a11plication fee for a new
onsite consumption endorsement is $1,000.
(b) The non-refundable application fee for a license renewal application is $600. If a
renewal application is late as provided under 3 AAC 306 .035(e), an additional non-refundable
late renewal application fee is $1,000. The non-refundable application fee for renewal of an
onsite consumption endorsement is $600.
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( c) The non-refundable fee to request board approval of a change in a licensed marijuana
establishment's business name, ownership, licensed premises diagram, operating plan, or
proposed new marijuana product is $250. A change fee does not apply to an application for
transfer of a license or a transfer of controlling interest to another person.
( d) The annual license or endorsement fee, to be paid with each application for a new
marijuana establishment facility license or endorsement and each license or endorsement
renewal application is
(1) for a retail marijuana store license, $5,000;
(2) for a limited marijuana cultivation facility license, $1,000;
(3) for a marijuana cultivation facility license, $5,000;
( 4) for a marijuana concentrate manufacturing facility license,$1,000;
(5) for a marijuana product manufacturing facility license, $5,000:
(6) for a marijuana testing facility license, $1,000.i.
(7) for an onsite consumption endorsement to a retail marijuana tore
license, $2,000.
(e) The fee for a marijuana handler permit card is $50.
( f) If the board denies an application for a license or endorsement, or for renewal of a
license or endorsement, the board will refund the annual license or endorsement fee. The
board will not refund a license or endorsement fee after the license or endorsement has been
issued.
(g) Processing fees for late renewal after failure to pay taxes are as follows:
(1) if a licensee pays its delinquent tax after a local government protests renewal
of the license, but before the board denies license renewal, $200;
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(2) if a licensee pays its delinquent tax after appealing the board's denial of a
license renewal , but before a hearing officer is appointed to hear the applicant's appeal, $500 ;
(3) if a licensee pays its delinquent tax after appealing the board's denial of a
license renewal, but before the administrative hearing begins, $5 ,000;
( 4) if a licensee pays its delinquent tax after an administrative hearing that results
in a hearing officer recommendation to deny the license renewal , $10,000.
(h) The fee for a second or subs equent inspection for a new marijuana establishment is
$500. The fee applies to an inspection requested after a marijuana establishment fails a
preliminary inspection, and is not issued a license. The director may waive the fee upon
submission of a written request. (Eff. 2/21/2016, Register 21 7; am 7/19/201 7, Register 223 ; am
8/11/2018 , Register 227; am!:___j ~ 2 01q , Register 2 2~ ; am _i_/_I\_/ Zo \t\ ,
Reg is ter 1, ;o )
Authority: AS 17.38 .010
AS 17.38.070
AS 17.38 .121
AS 17.38.150
AS 17.38.190
3 AAC 306 is amended by adding a new section to read:
AS 17.38.200
AS 17.38.900
3 AAC 306.110. Endorsements generally. (a) An endorsement expands the boundaries
of a licensed premises or the authorized activities of the licensed business.
(b) Only the board may issue an endorsement.
(c) An endorsement is valid only in conjunction with a license. An endorsement may
only be transferred to another person if the license for which the endorsement was issued is also
transferred to that person . An endorsement expires if the license expires or the license is
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revoked. An endorsement is suspended ifthe license is suspended. (Eff. j__/Jl_/ 2o \1 ,
Register z.2Q)
Authority: AS 17.38.010
AS 17.38.070
AS 17.38.121
3 AAC 306.200 is amended to read:
AS 17.38.150
AS 17.38.190
AS 17.38.200
AS 17.38.900
3 AAC 306.200. Local options. (a) If a majority of the persons voting on the question
vote to approve the option, or if a local government's assembly or city council passes an
ordinance to the same effect, the local government shall adopt a local option to prohibit
(1) the sale or importation for sale of marijuana and any marijuana product;
(2) the operation of any marijuana establishment, including one or more of the
following license or endorsement types:
(A) a retail marijuana store;
(B) a marijuana cultivation facility;
(C) a marijuana product manufacturing facility;
(D) a marijuana testing facilitY.;.[.]
(E) an onsite consumption endorsement to a marijuana retail store
license;
(3) specific operational characteri tics of an onsite consumption
endorsement to a marijuana 1·etail store licen e, including consumption by smoking or
vap.ing, or outdoor consumption.
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(b) A ballot question to adopt a local option under this section must at least contain
language substantially similar to: "Shall (name of local government) adopt a local option to
prohibit (local option under (a) of this section)? (yes or no)."
(c) The ballot for an election on the options set out in (a)(2) of this section must include
a brief explanation of the activity that each license or endorsement type on the ballot may carry
out.
(d) If a local government dissolves under AS 29.06.450, any marijuana establishment
license issued to that local government expires when the local government dissolves.
(e) A local government may not prohibit the personal use and posse ssion of marijuana
and marijuana products as authorized under AS 17.38.020.
(f) Nothing in 3 AAC 306.200 -3 AAC 306.260 precludes a local government from
applying for a marijuana establishment license or endorsement under other provisions of this
chapter. (Eff. 2/21/2016, Register 217; am_.:l_/Jlj 2.o\tq , Register i;o )
Authority: AS 17.38.020 AS 17.38 .200 AS 17.38 .900
AS 17.38.190 AS 17.38.210
3 AAC 306.250 is amended to read:
3 AAC 306.250. Effect on licenses of restriction on sale. If a majority of the voters
vote under 3 AAC 306 .200(a) to prohibit sale of marijuana and marijuana products or the
operation of marijuana establishments, or if the assembly or city council passes an ordinance to
the same effect, the board will not issue, renew, or transfer to another person a license for a
marijuana establishment, or issue or renew au endorsement, with premises located within the
boundary of the local government. A license for a marijuana establishment or endorsement
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Register t3o ~2019 COMMERCE, COMMUNITY AND EC. DEV.
within the boundary of the local government is void 90 days after the results of the election are
certified, or after the effective date of an ordinance to the same effect if the local government
opted out by ordinance. A license or endorsement that expires during the 90 days after the
certification of a local option election, or during the period of time between passage of an
ordinance to the same effect and the effective date of that ordinance, may be extended until it is
void under this section, by payment of a prorated portion of the annual license or endorsement
fee. (Eff. 2/21/2016, Register 217, am 7/27/2017, Register 223; am_i_;_ll _/ 2olei
Register 2 ~o )
Authority: AS 17.38.020 AS 17.38.200 AS 17.38.900
AS 17.38.190 AS 17.38.210
3 AAC 306.31 O(b) is amended to read:
(b) A licensed retail marijuana store may not
(1) conduct business on or allow a consumer to access the retail marijuana store's
licensed premises between the hours of 5:00 a.m. and 8:00 a.m. each day;
(2) allow a person to consume marijuana or a marijuana product on the retail
marijuana store's licensed premises, except as provided in 3 AAC 306.305(a)(4);
reason,
(3) offer or deliver to a consumer, as a marketing promotion or for any other
(A) free marijuana or marijuana product, including a sample; or
(B) alcoholic beverages, free or for compensation; or[.]
(4) allow intoxicated or drunken persons to enter or to remain on the
licensed premises.
10
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R g ister 'Z ~o ;J" \J 2019 COMMERCE, COMMUNITY AND EC. DEV.
(Eff.2/2112016 Register 2 17 ;am j_/_I_\ I 2.ot 1 Reg i s ter Z~o )
Authority: AS 17.38 .010
AS 17.38.070
AS 17.38.121
3 AAC 306.355 is amended to read:
AS 17.38.150
AS 17.38.190
AS 17.38.200
AS 17.38.900
3 AAC 306.355. Limit on quantity sold. {fil A retail marijuana store may not sell to
any one person per day[IN A SINGLE TRANSACTION]
(1) more than one ounce of usable marijuana;
(2) more than seven grams of marijuana concentrate for inhalation, or
(3) marijuana or marijuana products ifthe total amount of marijuana, marijuana
products, or both marijuana and marijuana products sold contains more than 5,600 milligrams
of THC.
(b) These limits include marijuana or marijuana product sold for onsite
con s umption under 3 AAC 306.370(a)(2). (Eff. 2/21/2016, Register 217; am~/11_/ ~ot.q ,
Registe r Z.~o )
Authority: AS 17.38.010
AS 17.38 .070
AS 17.38.121
AS 17.38.150
AS 17.38 .190
3 AAC 306 is amended by adding a new section to read:
11
AS 17.38.200
AS 17.38.900
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Register Z5o ~2 019 COMMERCE, COMMUNITY AND EC. DEV.
3 AAC 306.370. Onsite consumption endorsement for retail marijuana stores. (a)
Unless prohibited by local or state law, a freestanding licensed retail marijuana store with an
approved onsite consumption endorsement is authorized to
(1) sell marijuana and marijuana products, excluding marijuana concentrates, to
patrons for consumption on the licensed premises at the time of purchase only in an area
designated as the marijuana consumption area and separated from the remainder of the
premises, either by a secure door and having a separate ventilation system, or by being outdoors
in compliance with (c)(4) below;
(2) sell for consumption on the premises
(A) marijuana bud or flower in quantities not to exceed one gram to any
one person per day;
(B) edible marijuana products in quantities not to exceed 10 mg of THC
to any one person per day; and
(C) food or beverages not containing marijuana or alcohol; and
(3) allow a person to remove from the licensed premises marijuana or marijuana
product that has been purchased on the licensed premises for consumption under this section,
provided it is packaged in accordance with 3 AAC 306.345.
(b) A licensed retail marijuana store with an approved onsite consumption endorsement
may not
(1) sell marijuana concentrate for consumption in the marijuana consumption
area or allow marijuana concentrate to be consumed in the marijuana consumption area;
(2) allow any licensee, employee, or agent of a licensee to consume marijuana or
marijuana product, including marijuana concentrate, during the course of a work shift;
12
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Register _Z_3_Q_~2019 COMMERCE, COMMUNITY AND EC. DEV.
(3) allow a person to consume tobacco or tobacco products in the marijuana
consumption area;
( 4) allow a person to bring into or consume in the marijuana consumption area
any marijuana or marijuana product that was not purchased at the licensed retail marijuana
store;
(5) sell, offer to sell, or deliver marijuana or marijuana product at a price less
than the price regularly charged for the marijuana or marijuana product during the same
calendar week;
(6) sell, offer to sell, or deliver an unlimited amount of marijuana or marijuana
' product during a set period of time for a fixed price;
(7) sell, offer to sell, or deliver marijuana or marijuana product on any one day at
prices less than those charged the general public on that day;
(8) encourage or permit an organized game or contest on the licensed premises
that involves consuming marijuana or marijuana product or the awarding of marijuana or
marijuana product as prizes; or
(9) advertise or promote in any way, either on or off the premises, a practice
prohibited under this section.
( c) A marijuana consumption area shall have the following characteristics:
( 1) the consumption area shall be isolated from the other areas of the retail
marijuana store, separated by walls and a secure door, and shall have access only from the retail
marijuana store;
(2) a smoke-free area for employees to monitor the marijuana consumption area;
13
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Register Z3o ,~2019 COMMERCE, COMMUNITY AND EC. DEV.
(3) a ventilation system that directs air from the marijuana consumption area to
the outside of the building through a filtration system sufficient to remove visible smoke,
consistent with all applicable building codes and ordinances, and adequate to eliminate odor at
the property line;
( 4) if outdoors, be found by the board to be compatible with uses in the
surrounding area through evaluation of
(A) neighboring uses;
(B) the location of air intake vents on neighboring buildings;
(C) a sight-obscuring wall or fence around the outdoor marijuana
consumption area;
(D) objections of property owners, residents, and occupants within 250
linear feet or the notification distance required by the local government, whichever is
greater; and
(E) any other information the board finds relevant.
( d) An applicant for an onsite consumption endorsement must file an application on a
form the board prescribes, including the documents and endorsement fee set out in this section,
which must include
(1) the applicant's operating plan, in a format the board prescribes, describing the
retail marijuana store's plan for
including:
(A) security, in addition to what is required for a retail marijuana store,
(i) doors and locks;
(ii) windows;
14
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COMMERCE, COMMUNITY AND EC. DEV.
(iii) measures to prevent diversion; and
(iv) measures to prohibit access to persons under the age of 21;
(B) ventilation. If consumption by inhalation is to be permitted,
ventilation plans must be
(i) signed and approved by a licensed mechanical engineer;
(ii) sufficient to remove visible smoke; and
(iii) consistent with all applicable building codes and ordinances;
(C) monitoring overconsumption;
(D) unconsumed marijuana, by disposal or by packaging in accordance
with 3 AAC 306.345; and
(E) preventing introduction into the marijuana consumption area of
marijuana or marijuana products not sold by the retail marijuana store, and marijuana or
marijuana products not sold specifically for onsite consumption;
(2) the applicant's detailed diagram of the marijuana consumption area which
must show the location of
(A) the licensed premises of the retail marijuana store;
(B) serving area or areas;
(C) ventilation exhaust points, if applicable;
(D) the employee monitoring area;
(E) doors, windows, or other exits; and
(F) access control points;
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Register 1..3!_~ 2019 COMMERCE, COMMUNITY AND EC. DEV.
(3) the title, lease, or other documentation showing the applicant's sole right of
possession of the proposed marijuana consumption area, if the area is not already part of the
approved licensed premises for the retail marijuana store;
( 4) an affidavit that notice of an outdoor marijuana consumption area has been
mailed to property owners, residents, and occupants of properties within 250 linear feet of the
boundaries of the property on which the onsite consumption endorsement is proposed, or the
notification distance required by the local government, whichever is greater.
( e) The retail marijuana store holding an onsite consumption endorsement under this
chapter shall
(1) destroy all unconsumed marijuana left abandoned or unclaimed in the
marijuana consumption area in accordance with the operating plan and 3 AAC 306.740;
(2) monitor patrons in the marijuana consumption area at all times, specifically
for overconsumption;
(3) display all warning signs required under 3 AAC 306.360 and 3 AAC 306.365
within the marijuana consumption area, visible to all consumers;
( 4) provide written materials containing marijuana dosage and safety information
for each type of marijuana or marijuana product sold for consumption in the marijuana
consumption area at no cost to patrons;
(5) package and label all marijuana or marijuana product sold for consumption
on the premises as required in 3 AAC 306.345; and
(6) comply with any conditions set by the local government or placed on the
endorsement by the board.
16
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Regis te r 'Z bO ~ 2019 COMMERCE, COMMUNITY AND EC. DEV .
(f) The holder of an onsite consumption endorsement must apply for renewal annually at
the time of renewal of the underlying retail marijuana store license. (Eff. i_1_l l_I Z 01 q ,
Register Z3o )
Authority: AS 17.38.010
AS 17.38.070
AS 17.38.121
AS 17.38.150
AS 17.38.190
AS 17.38.200
AS 17.38.900
3 AAC 306.990(b) is amended to add the following subsections:
( 41) "drunken person" has the meaning given in AS 04.21.080(b )(9);
(42) "freestanding" has the meaning given in AS 18.35.30l(i)(l);
( 43) "intoxicated" has the meaning given in AS 11.81.900(b )(34);
( 44) "marijuana consumption area" means a designated area within the licensed
premises of a retail marijuana store that holds a valid onsite consumption endorsement, where
marijuana and marijuana products, excluding marijuana concentrates, may be consumed.
( 45) "retail marijuana store premises" means an area encompassing both the
retail marijuana store and any marijuana consumption area.
( 46) "sight-obscuring wall or fence" means a wall or fence, including any gates,
constructed of solid material and a minimum of six feet in height. (Eff. 2124/2015, Register 213;
am 2/21/2016, Register 217; am 10/11/2017, Register 224; am 8/11/2018, Register 227;
an1 _1l_ll _/ 2.0 l1 , Register z;o )
Authority: AS 17.38.010 AS 17.38.150 AS 17.38.200
AS 17.38.070
AS 17.38.121
AS 17.38.190
17
AS 17.38.900
82
MEMORANDUM
To: The Honorable Kevin Meyer
Lieutenant Governor
From: Susan R. PollarcBW
Chief Assistant Attorney General
and Regulations Attorney
Legislation and Regulations Section
State of Alaska
Department of Law
Date: February 28, 2019
File No.: JU2017200548
Tel. No.: 465-3600
Re: Marijuana Control Board:
Marijuana Onsite Consumption
(3 AAC 306.370)
The Department of Law has reviewed the attached regulations of the Marijuana Control
Board against the statutory standards of the Administrative Procedure Act. Based upon our
review, we find no legal problems. This memorandum constitutes the written statement of
approval under AS 44.62.060(b) and (c) that authorizes your office to file the attached
regulations. The regulations implement standards for onsite consumption of marijuana
(excluding concentrates) in a freestanding licensed retail marijuana store with an endorsement.
An endorsement is not a separate license for a retail marijuana store; it is a separate authorization
on top of a retail marijuana store license.
The subject of these regulations was considered by the board for approximately two years
(and 11 public meetings). Our review addresses whether the procedural steps were followed and
whether the regulations are consistent with the authorizing statute and reasonably necessary to
carry out its purpose. AS 44.62.030 and 44.62.060 (review ofregulations for legality,
constitutionality, and consistency with other regulations). We also address federal law in relation
to the proposed regulations. AS 44.62.020 ("To be effective, each regulation adopted must be
within the scope of authority conferred and in accordance with standards prescribed by other
provisions oflaw.) Davis v. State, 235 P.3d 1017, 1020 (Alaska App. 2010); Beran v. State, 705
P.2d 1280, 1287 (Alaska App. 1985).
Procedural steps. The proposed regulations were published on August 23, 2018; the
notice stated the board was considering regulations for onsite consumption endorsements for
retail marijuana establishments. The board accepted written and oral comments, with oral
comments occurring at a hearing on December 19, 2018. The regulations were adopted by the
Marijuana Control Board after the close of the public comment period.
The August 23, 2018 public notice gives notice that the board would consider onsite
marijuana consumption endorsements for retail marijuana establishments. The board took written
and oral comments. The board adopted the regulation at its December 20, 2018 meeting. Further,
the public notice and the January 8, 2019 certification of adoption order states that this action is
83
Hon. Kevin Meyer, Lieutenant Governor
Office of the Lieutenant Governor
February 28, 2019
Page 2of4
not expected to require an increased appropriation. Therefore, a fiscal note under AS 44.62.195
is not required.
Consistency with authorizing statute. The board is authorized to propose and adopt
regulations. Further, while marijuana consumption "in public" is illegal (AS 17.38.040)
consumption within regulated, licensed premises is anticipated; the board has statutory authority
to make changes to the area of a licensed premises "necessary to ensure control over the sale and
consumption of marijuana on the premises." AS l 7.38.12l(c). Under current regulation, "in
public" does not "include an area on the premises of a licensed retail marijuana store designated
for onsite consumption." 3 AAC 306.990(a)(5)(C). The board further provides in these
regulations that marijuana consumption is limited to a "marijuana consumption area within the
licensed premises of a retail marijuana store that holds a valid onsite consumption endorsement."
3 AAC 306.990(b)(44).
Consumption of marijuana in a licensed premises excludes marijuana concentrates
(3 AAC 306.990(b)(44)), but envisions that some consumption may be through smoking
marijuana or a marijuana product. Accordingly, we considered AS 18.35.301, which addresses
public health law by prohibiting smoking tobacco in certain places, but the statute provides an
exception for smoking "in an establishment licensed under AS 17.38 that is freestanding if the
smoking is in accordance with regulations adopted by the Marijuana Control Board created
under AS 17.38.080." AS 18.35.301(h)(3). "Freestanding" means a building that is not supported
by another structure and does not share ventilation or internal airspace with an adjoining
structure and smoke from the building cannot travel into the adjoining structure.
AS 18.35.301(i)(l). The regulations proposed here adopt this definition of "freestanding" in 3
AAC 306.990(b )( 42).
In short, we find that the state statutes provide the board with necessary regulatory
authority, and anticipate onsite consumption of marijuana, in a freestanding building.
Reasonably necessary to carry out the statutory purpose. Here we consider if the
regulation is reasonable and not arbitrary. Kelly v. Zamarello, 486 P.2d 906 (Alaska 1971).
Initially we note that the board considered the issue of onsite consumption for approximately two
years, including approximately 11 meetings of substantive discussion about onsite consumption.
The result is a detailed regulation, 3 AAC 306.370, onsite consumption endorsement for retail
marijuana stores, to set the standards for onsite consumption. We are confident the record
reflects that the board engaged in reasoned decision making. See, Alaska Fish & Wildlife
Conservation Fund v. State, 347 P.3d 97 (Alaska 2015).
Specifically, the section limits consumption endorsements to stores that are freestanding,
and where not otherwise prohibited by local or state law. 3 AAC 306.370(a). A marijuana store
with a consumption endorsement is authorized to sell marijuana products including limited
quantities of bud or flower or products not to exceed 10 mg of THC and not including
concentrates, for consumption in a designated area that is separated from the rest of the store by
a secure door and having a separate ventilation system or that is outdoors. 3 AAC 306.370(a)(l)
and (2).The store may sell food or beverages not containing marijuana or alcohol (3 AAC
306.370(a)(2)(C)) and may allow customers to take away from the premises product that they
84
Hon. Kevin Meyer, Lieutenant Governor
Office of the Lieutenant Governor
February 28, 2019
Page 3of4
have purchased for consumption on the premises so long as it is packaged properly. 3 AAC
306.370(a)(3). The section provides that a store with an endorsement may not:
(1) sell concentrate for consumption in the consumption area or allow it to be consumed
in the consumption area;
(2) allow consumption by employees while on the job;
(3) allow tobacco consumption;
(4) allow offsite purchases to be consumed in the consumption area;
(5) offer "happy hour" type discounts;
(6) offer "all-you-can-eat" type deals;
(7) offer "in-house" type discounts;
(8) offer or encourage games or contests that involve marijuana consumption or
awarding of marijuana as prizes; or
(9) advertise any prohibited practice, whether on or off the premises.
In addition, this section sets out the physical characteristics of a marijuana consumption
area. 3 AAC 306.370(c). It must be accessible only from inside the store but must be isolated
from the rest of the store, have a smoke-free area from which employees can monitor the
consumption area, and have a ventilation system that directs air outside and removes visible
smoke and odor at the property line. 3 AAC 306.370(c)(l)-(3). If the consumption area is
outdoors, it must be found by the board to be compatible with uses in the surrounding area. 3
AAC 306.370(c)(4). This paragraph requires at least the consideration of a sight-obscuring wall
or fence around the area and consideration of the objections of neighbors.
Obtaining an endorsement for onsite consumption requires an applicant to hold a license
for a retail marijuana store. To apply for an endorsement to allow onsite consumption on the
licensed premises, the applicant must show plans for security, ventilation, monitoring
consumption, disposition of unconsumed marijuana, and preventing introduction of product not
purchased onsite. 3 AAC 306.370(d)(l). In addition, the application must include a detailed
diagram of the consumption area, ventilation exhaust points, the employee monitoring area, and
access control points, as well as proof of possession of the property and proof that notice of any
outdoor consumption area has been given to nearby property owners. 3 AAC 306.370(d)(2)-(4).
Subsection (c) requires an endorsement holder to destroy all unconsumed product left by
customers, monitor consumption, display warning signs required of stores, provide dosage and
safety information for each product that is sold for consumption, ensure that all product is
packaged properly, and comply with all conditions set by local government or the board. Finally,
onsite endorsements must be renewed annually. 3 AAC 306.370(f).
Local governments can adopt a local option to prohibit onsite consumption endorsements,
just as they can now opt out of specific license types (stores, cultivation facilities, manufacturing
facilities and testing facilities) (3 AAC 306.200(a)(2)); with the proposed amendments, they
could also opt to prohibit specific operational characteristics of an onsite consumption
endorsement, including by smoking or vaping, or consuming outdoors. 3 AAC 306.200(a)(3); 3
85
Hon. Kevin Meyer, Lieutenant Governor
Office of the Lieutenant Governor
February 28, 2019
Page 4 of 4
AAC 306.250. Also, these proposed amendments would allow a local government to hold an
endorsement if it has a retail store license. 3 AAC 306.200(f).
In our view, the regulations are reasonably necessary to assure onsite consumption is
retained in the licensed premises of a freestanding building.
Federal law. Next, we address whether the regulations are problematic under federal law.
Under Alaska law, some commercial marijuana activity is authorized under AS 17.38, including
onsite consumption on a licensed premises; for the reasons explained above these regulations are
authorized by state law. But marijuana cultivation, use, and possession remains illegal under
federal law. The regulations cannot resolve this conflict. Previously, the federal government
issued guidance for states with legalized marijuana suggesting that the federal government would
be more inclined to leave enforcement of criminal law applicable to commercial marijuana to
states where the state has a robust regulatory system.1 Accordingly, our state's marijuana
regulation has been developed with attention to former key federal guidance, including
regulatory action to ensure safe and clear packaging, regulations to ensure marijuana is not
accessible to persons under age, and robust vetting requirements for licensees. The current
regulations appear to establish robust requirements for onsite consumption designed to ensure
limited onsite use, and with restrictions (such as requirements for security) designed to ensure
that marijuana consumption occurs only by those of legal age on a designated area of a licensed
premise, remains on the premise, and includes only consumption of marijuana purchased at the
licensed premise. Accordingly, we believe that the board has established restrictions to ensure
compliance with state law.
SRP:lbp
cc: Erika McConnell, Director
Marijuana Control Board
Department of Commerce, Community, and Economic Development
Debbie Morgan, Regulations Contact
Department of Commerce, Community, and Economic Development
Jedediah Smith, Local Government Specialist
Alcohol and Marijuana Control Office
Department of Commerce, Community, and Economic Development
Harriet Dinegar Milks, Assistant Attorney General
Commercial, Fair Business, and Child Support Section
James M. Cole, Deputy Attorney General, U.S. Dep't of Justice, Memorandum for All
United States Attorneys, Guidance Regarding Marijuana Enforcement (Aug. 29, 2013; later
withdrawn, Memorandum from Attorney General Jefferson B. Sessions III to All U.S. Attorneys
(Jan. 4, 2018), https://www.justice.gov/opa/press-release/file/1022196/download.
86
KENAI PARKS & RECREATION COMMISSION
MARCH 7, 2019 – 6:00 PM
KENAI CITY COUNCIL CHAMBERS
VICE-CHAIR GRANT WISNIEWSKI, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Vice-Chair Wisniewski called the meeting to order at 6:10 p.m.
a. Pledge of Allegiance
Vice-Chair Wisniewski led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Commissioners present: Vice-Chair T. Wisniewski, J. Dennis
Commissioners absent: Chair C. Stephens, J. Joanis, S. Kisena, F. Perez
Staff/Council Liaison present: Parks & Rec Director B. Frates, Council Member H.
Knackstedt
No quorum was present.
c. Agenda Approval
2. SCHEDULED PUBLIC COMMENTS – None.
3. UNSCHEDULED PUBLIC COMMENT
4. APPROVAL OF MEETING SUMMARY
a. February 7, 2019
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Discussion – 2019 Non-Routine Work Tasks & Project List
7. REPORTS
a. Parks and Recreation Director
b. Commission Chair
c. City Council Liaison
8. NEXT MEETING ATTENDANCE NOTIFICATION – April 4, 2019
9. COMMISSION QUESTIONS & COMMENTS
87
_____________________________________________________________________________________________
Parks and Recreation Commission Meeting Page 2 of 2
March 7, 2019
10. ADDITIONAL PUBLIC COMMENT
11. INFORMATION
a. MPF Ice Schedule (March)
12. ADJOURNMENT
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn LaPlante
Deputy City Clerk
88
KENAI PLANNING & ZONING COMMISSION
REGULAR MEETING
FEBRUARY 27, 2019 – 7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVENUE, KENAI, ALASKA
CHAIR JEFF TWAIT, PRESIDING
MINUTES
1. CALL TO ORDER
Commission Chair Twait called the meeting to order at 7:00 p.m.
a. Pledge of Allegiance
Commission Chair Twait led those assembled in the Pledge of the Allegiance.
b. Roll Call
Commissioners present: Chair J. Twait, Vice-Chair D. Fikes, R. Springer, G.
Greenberg, T. McIntyre, J. Halstead, V. Askin
Commissioners absent:
Staff/Council Liaison present: City Planner E. Appleby, Deputy City Clerk J. LaPlante, City
Attorney S. Bloom, City Clerk J. Heinz, Planning Dept.
Assistant W. Anderson, Council Liaison B. Molloy
A quorum was present.
c. Agenda Approval
Chair Twait noted the following revisions to the packet:
Add to item 6.a. Resolution No. PZ2019-04
• Correction of Map
Add to item 6.b. Resolution No. PZ2019-01
• Staff Memorandum
• Six Emails in Support of Resolution
• Kenai Police Dispatch Call Records
MOTION:
Commissioner Halstead MOVED to approve the agenda with the revisions noted and
Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED.
d. Consent Agenda
89
___________________________________________________________________________________
Planning and Zoning Commission Meeting Page 2 of 8
February 27, 2019
MOTION:
Commissioner Springer 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 – None.
2. *APPROVAL OF MINUTES – January 9, 2019
The minutes were approved by the Consent Agenda.
3. SCHEDULED PUBLIC COMMENT – (10 minutes) None scheduled.
4. UNSCHEDULED PUBLIC COMMENT – (3 minutes) None.
5. CONSIDERATION OF PLATS – None.
6. PUBLIC HEARINGS
a. Resolution PZ2019-04 – Application for an Encroachment Permit for an Existing Single-
Family Residence Side Yard Setback for the property located at 2730 VIP Drive, Kenai,
Alaska, 99611, and further described as Lot 12, Block 3, VIP Ranch Estates Subdivision
Part One. The application was submitted by Tom Campanella, 2730 VIP Drive, Kenai,
Alaska 99611
The City Planner reviewed the staff report as provided in the meeting packet and specifically
noted the as-built survey disclosed the attached garage on the single-family residence
encroached into the side yard setback. She added that in 2009 a building permit was issued to
enclose the carport and there was an error in measurements or development of the site plan.
The City Planner noted that there was a clerical error in the notices for this action, and to allow
proper notice with correct information, it was recommended this item be postponed to the next
meeting for the purpose of holding another public hearing.
The City Planner summarized that the applicant met the criteria for issuance of an Encroachment
Permit set forth in the Kenai Municipal code, subject to the following conditions:
• Applicant must comply with all federal, State of Alaska, and local regulations; and
• Pursuant to KMC 14.20.185(g), this permit shall expire automatically upon termination or
interruption of the use; damage to the building, structure, or object which makes it
uneconomic to repair the building, structure, or object; or, the expiration of the useful life
of the building, structure, or object, whichever comes first.
90
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Planning and Zoning Commission Meeting Page 3 of 8
February 27, 2019
MOTION:
Chair Twait MOVED to postpone Resolution No. PZ2019-04 to the next Commission Meeting on
March 13 to allow proper notice with corrections, and Commissioner Halstead SECONDED the
motion. There being no objection; SO ORDERED.
b. Resolution PZ2019-01 – Application for a Conditional Use Permit to operate a Boarding
House located at 160 Phillips Drive, Kenai, Alaska 99611, and further described as Lot
9, Block 8, Valhalla Heights Subdivision Part 3. The application was submitted by Perry
and Sheryl Neel, P.O. Box 1075, Kasilof, Alaska 99610
The City Planner reported that staff found the applicant meets the criteria for issuance of a
conditional use permit and recommended approval of the application for the use of a boarding
house, subject to the following conditions:
• Applicant must comply with all federal, State of Alaska, and local regulations;
• Applicant will file an annual report for the Conditional Use Permit as set forth in Kenai
Municipal Code 14.20.150(f) prior to the 31st day of December of each year;
• Applicant will include a copy of the house rules as part of their annual Conditional
Use Permit report to the City;
• Applicant will report the number of residents living on the property and the typical
number of vehicle kept on the property as part of their annual Conditional Use Permit
report to the City;
• No more than five people may live in the boarding house at any given time (the
number of people includes both the caretaker and paying residents); and
• The residence, driveway, and yard must be kept neat in appearance.
MOTION:
Commissioner Springer MOVED to approve Resolution No. PZ2019-04 and Commissioner Askin
SECONDED the motion.
Chair Twait opened the floor for public testimony.
Perry Neel, owner, explained that he was a part of the Wildwood prison ministry team and a
mentor in the re-entry program to transition inmates back into society. He noted that there was an
ongoing need for transition programs for people being released from prison. Mr. Neel added he
and his wife purchased the home in 2011 with the intent to offer it as a means for transition, with
rules in place. The home had been used for this type of assistance since 2012 as he was unaware
he needed a conditional use permit. He clarified that there were five bedrooms, six beds, and
Mika Reems was the current house manager, offering supervision on behalf of the owners,
enforcing house rules, and the residents were to remain in compliance with their conditions for
release. He further noted they have a weekly bible study, a potluck the evening of fellowship, and
are required to show positive efforts of moving forward.
Virginia Turner expressed opposition to the application noting she was a former correctional
officer, and did not feel comfortable living there. She added that she wanted the owner or manager
onsite 100 percent of the time.
Charles Ray Reeves, expressed gratitude to owners’ efforts to help but opposed the location of
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the current halfway/boarding house. He further noted he backed out of the purchase of the
property based on the interactions he has had with those that live in the halfway/boarding house.
Craig Thomsen expressed gratitude toward the owners’ efforts, but opposed the house in this
neighborhood. Mr. Thomsen read from the Kenai Municipal Code about intent of a Rural
Residential zone. He noted that this type of home use was in violation of residential code,
depreciated the value of his home, and affected his health and safety. He recommended that the
City Planner speak to patrol officers regarding the call volume and response times to that house.
Jeff Landrum spoke in support of the Conditional Use Permit noting he was a former inmate. He
expressed appreciation to the owners and their help in his transition. He noted he was in the
house for 7 months; the home was clean, safe and a proactive environment; it was a well-
organized and faith-based home; and the manager was there continually, very interactive with the
residents. Mr. Landrum stated he was now a foreman electrician, and Mr. Neel’s house was an
instrumental part of his recovery.
Mika Reems spoke in support of the application and reported that he moved in, in July 2017. He
explained that he worked a part-time job, made regular contact with each resident of the house
each day, there were strict rules in place that had to be followed, and parole officers stopped by
for random check-ins. Mr. Reems added that he saw a positive transition of people at the house
leaving as a productive citizen on their own.
Cathy Campbell expressed concern with this type of housing and questioned if staff had
substance abuse training or similar to meet the potential need in an emergency. She further
expressed concern with living in a neighborhood with this type of housing.
Jake Gibbs spoke in support of the permit stating he managed the house, full-time, from
approximately May 2013 to February 2018. He added that it was a safe place for men in need
that offered hope, compassion, positive encouragement and a second chance.
Cheryl Russell spoke in opposition of the application, noting there was increased drug use in that
neighborhood, and she had concern for the incoming families with young children moving to that
area.
Tim Barber spoke in support of the permit and expressed appreciation of the efforts by Mr. Neel
and his wife. Mr. Barber explained he was not in prison but moved to Kenai from Virginia with
nowhere to live and Mr. Neel offered him this home and gave him a chance to go in the right
direction, and obtain a good job. Mr. Barber noted the owners care about the residents and he
was thankful for what they do. He added that he had seen a few residents return to Wildwood,
but this was an opportunity for a second chance to those that wanted positive change.
Loretta Pierce spoke in opposition of a boarding house and noted that she did not know it was
already acting as one. Ms. Pierce expressed concern with conditional use permit applicants only
receiving minimal reprimand for not having one in place. She stated she wanted the missed
conditional use permits to be looked into and receive penalty. Ms. Pierce added that the
neighborhood had much more foot traffic.
Ed Marsh spoke in support of the owners’ efforts and supported the boarding house. He explained
that he had been carrying the Alcoholics Anonymous message at the prison for several years and
was a part of the Kairos Prison Ministry. He stated that the path of least resistance is drugs and
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alcohol. Mr. Marsh noted the need for a place to transition from prison and a positive environment
for change.
Michael Lavelly spoke in support of the permit. He expressed understanding to the public
concerns about not wanting places like a boarding house, or a daycare, or similar businesses in
in their neighborhoods even though it is agreed there is need. He clarified that, though he was a
member of Kairos Prison Ministry, he had been to jail and homeless in his life and without
compassionate people like Mr. Neel and his wife, these men would have little chance for change.
Alison Bushnell, Housing Specialist at Love Inc., spoke in support of the application and stated
that one of biggest struggles they face is housing. She noted that this house has helped with
struggles of homelessness or men transitioning from prison needing placement. Ms. Bushnell
stated Mr. Neel, his wife and this house was an asset to community. She clarified it was not built
to be a typical emergency shelter; it offered a home and accountability with the lease contract.
Jennifer Thomsen thanked the owners for their efforts but expressed concern about the lack of
municipal code controlling this specific type of house and the limitations in the future and potential
increase of these types of houses, interrupting rural harmony.
Grant Shuman spoke in support of the application and stated he lived in the house. He expressed
gratitude for the life change that could not have been possible without the love, support, and home
by the owners. He noted he was introduced by Love, Inc. and clarified there was no specific
process to be eligible to live in the house.
Dennis Murray expressed support for the application and noted it was not for profit work, it was
mission work. He noted that it sounded like there were more problems and increased concern in
the neighborhood due to the undeveloped lots. He added that he hopes to see the
community/neighborhood work together to help these people. Mr. Murray pointed out that there
was a Freedom House for women in Soldotna and another home similar for men being opened in
Soldotna. He suggested that this was not a halfway house.
Clyde Crandall spoke in support of the permit and stated he was a Kairos Prison Ministry member
and a part of the ministry for five years. He stated he has had many dealings with the house
transition program and helped establish rules at the home. Mr. Crandall noted the owners were
helping fulfill a need in the community; not for profit. He added that he deals with the residents
regularly to make a positive difference in their lives and the community. He added that he
supported building more if it was an option.
There being no one else wishing to be heard, public comment was closed.
Perry Neel clarified that the back-up plan, in the absence of a house manager, was the longest
resident/senior in the house. Mr. Neel noted that there was approximately six months without a
house manager, and he was there more often and the senior resident helped.
Clarification was provided regarding the vetting process, which included contact by Love, Inc.,
probation officers, or homeless people recommended by Love, Inc. Mr. Neel noted they now ask
about mental stability, and if a sex offender to ensure they are registered but does not
discriminate. He further clarified that there was no curriculum, other than bible study and it was
not a halfway house. He added that he would be open to do background check on a homeless
person that has no history from Wildwood or parole officer.
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MOTION TO AMEND:
Commissioner Springer MOVED to amend Condition No. 5 to say, “No more than six people, to
include on-site manager…”; Commissioner Halstead SECONDED the motion.
It was noted that parking spaces should meet Kenai Municipal Code requirements with the
number of people in the home.
VOTE ON THE AMENDMENT:
YEA: Twait, Askin, Halstead, Greenberg, Fikes, Springer
NAY: McIntyre
MOTION PASSED.
MOTION TO AMEND:
Commissioner Springer MOVED to amend the conditions to include an annual building inspection
by the City to confirm it is a safe living environment and Commissioner Askin SECONDED the
motion.
VOTE ON THE AMENDMENT:
YEA: Askin, McIntyre, Greenberg, Fikes, Springer, Twait
NAY: Halstead
MOTION PASSED.
MOTION TO AMEND:
Commissioner McIntyre MOVED to add a Condition 8. Parking spaces be provided in accordance
with Kenai Municipal Code regulated parking for a boarding house, and Commissioner Fikes
SECONDED the motion.
There was discussion regarding the ability to defer from municipal code requirements.
Commissioner Fikes noted she found that the conditions were met, she agrees with an annual
inspection and would be voting in favor.
The City Planner reiterated that the house rules were provided in the application and a required
condition of approval.
It was clarified that State statute requires that the location of sex offenders be made known and
that there was a State website, tracking the locations of sex offenders.
Chair Twait noted the fact that the house had been operating for 6 years and, if approved, would
have more requirements in place; he would be voting in favor.
Commissioner Greenberg agreed that it could be uncomfortable for neighbors but the business
practices were focused on and it aligned with the requirements of a conditional use permit; he
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February 27, 2019
would be voting in favor.
VOTE ON THE AMENDMENT:
YEA: Askin, McIntyre, Greenberg, Fikes, Springer, Twait, Halstead
NAY:
MOTION PASSED UNANIMOUSLY.
VOTE ON MAIN MOTION AS AMENDED:
YEA: Askin, Springer, Halstead, McIntyre, Fikes, Twait, Greenberg
NAY:
MOTION PASSED UNANIMOUSLY.
Chair Twait noted there was a 15-day appeal period.
7. UNFINISHED BUSINESS – None.
8. NEW BUSINESS – None.
9. PENDING ITEMS – None.
10. REPORTS
a. City Council – Council Member Molloy reviewed the action agenda from the January
16 and February 6 City Council Meetings and two work sessions. He specifically noted
Council and Administration met with Capital Management Partners to discuss the
Permanent Fund. He clarified the Bowling Alley and its balloon payment has been
ongoing discussion. U-Haul purchased the old Lowes building but plans and revenues
to the City of Kenai are unknown.
b. Borough Planning – Vice-Chair Fikes reported the Commission met on February 25
and approved an Ordinance for a Memorandum of Understanding (MOU) between the
State of Alaska, Department of Transportation and Kenai Peninsula Borough regarding
the Kenai escape route; there was a public hearing that approved a land use permit for
gravel extraction, noting it was a second time around, as there was concern regarding
the requirements for berms around the property.
c. Administration – City Planner Appleby reported on the following:
• She provided the January 2019 Report in the packet; and
• Tomorrow is release date for draft EIS to be released for the Alaska LNG Project.
11. ADDITIONAL PUBLIC COMMENT
Virginia Turner suggested working together to develop a section in Code for the future that clarifies
the difference between private property and a true boarding house.
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February 27, 2019
Charles Reeves inquired about the Bowling Alley and purpose for the old Lowes Building. He
thanked the Commission for the discussion.
12. INFORMATIONAL ITEMS
a. January 2019 Planning and Zoning Department Report City of Kenai Bicycle Friendly
Community Report Card
13. NEXT MEETING ATTENDANCE NOTIFICATION – March 13, 2019
City Planner noted she planned on work sessions prior to regular meetings until the summer.
14. COMMISSION COMMENTS & QUESTIONS
Commissioners thanked the public for their attendance and testimony.
15. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 10:07 p.m.
Minutes prepared and submitted by:
____________________________
Jacquelyn LaPlante
Deputy City Clerk
96
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Bondurant, Airport Manager
DATE: March 11, 2019
SUBJECT: March Mid-month Report
2018 Terminal Rehabilitation Project – Construction: The project has moved to all areas
inside the terminal except the lounge. A construction meeting is held every Tuesday with
the City, Airport, and the contractor.
2019 Airfield Marking, Crack Ssealing, & Pavement Repair (Design) - Wince-Corthell-
Bryson met with Airport Management to finalize the Construction Safety & Phasing Plan.
The plan must be submitted to the OEAAA website for a 45-day review. The project will
be bid in April with work to begin in May 2019.
In-house Activities –
Mother Nature has finally slowed down and the Airport crew is in clean-up mode with the
snow and equipment maintenance. The crew did a great job keeping the runway open
with the last heavy snowfall. The seasonal equipment operator positions end March 31,
2019 and the full-time equipment operators will return to the normal Monday – Friday 8am
to 5pm shift.
Airport Administration continues to work with City Administration on revisions to Title 22
on Disposition of City-Owned Lands.
Airport FY2020 budget with Special Projects was submitted to City Administration on
February 15, 2019.
97
FINANCE DEPARTMENT MID-MONTH REPORT
March 2019
To: Mayor Gabriel
Council Members
Thru: Paul Ostrander, City Manager
From: Terry Eubank, Finance Director
Date: March 13, 2019
Re: Monthly Report
For the past month much of the department’s focus has been on the preparation
of the FY2020 Budget. The Council is tentatively scheduled to receive its first draft
of the FY2020 budget on April 3rd. There is much work to be done by all City
departments in preparing the FY2020 budget.
The department has also been working to codify the recommended changes to the
allowable investments of and the distribution methodology for the City’s two
permanent funds. This process culminated with drafting of Ordinance 3058-2019
which is before you for introduction.
The department is working with the Human Resources Department to transition
different function including employee benefit renewal and administration. Ms.
Brown’s knowledge is going to be a great asset to the City and will assist in
maintaining and improving our employee benefits.
Preparation is also being made for renewal of the City’s insurances (general
liability, property, workers’ compensation, airport, and marine). The City’s three
year agreement with its current insurer ends on June 30, 2019 and the City will be
soliciting quotes in anticipation of entering a new three-year agreement for these
coverages.
98
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Jeff Tucker, Fire Chief
DATE: March 8, 2019
SUBJECT: Fire Department Mid-Month Report - March
____________________________________________________________________________
In February the department responded to 130 call for service as compared to 120 calls in February
2018. For the first two months of the year the department has responded to 298 calls as
compared to 233 in 2018. This is a 27.89% increase as compared to 2018.
In February the department held its quarterly training with our Medical Directors. During this
training we conducted run reviews and advanced scope EMS training.
Two department members attended the 3-day Safe Kids Coalition Car Seat Technician Training
Class. The department now has a total of four trained technicians, one on each shift and our
Administrative Assistant.
Fire Marshal Jeremy Hamilton attended the annual State of Alaska Building and Fire Officials
Forum in Anchorage. The Forum includes training tracks, presentations and discussions.
Engineer Sam Satathite attended the “Leadership in Supervision” course at the National Fire
Academy in Emmitsburg, Maryland. This course “presents the fire and emergency medical
services (EMS) supervisor with the basic leadership skills and tools needed to perform effectively
in the fire and EMS environment, to successfully transition to supervisory and leadership roles,
and establish a conceptual foundation and framework for success in leadership roles by exploring
creative, analytical, political and critical thinking perspectives.”
Chief Tucker attended the annual meeting of the Kenai Peninsula Program Advisor Board to
review and take action on recent and upcoming activities in the program. Chief Tucker Chairs
this Boad.
99
MEMORANDUM
TO: Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Jo Joiner, Library Director
DATE: March 8, 2019
SUBJECT: Library Mid-Month Report
______________________________________________________________________
February Circulation Figures
Adult Fiction 1,001 Internet Access 703
Adult Non-Fiction 1,090 iPad use 128
Young Adult Fiction 124 Games 2
Periodicals 59 Room Booking 165
Juvenile Fiction 287 Music 24
Juvenile Non-Fiction 273 DVDs 2,033
Easy Fiction 1,067 Audio books 78
Easy Non-Fiction 257 Miscellaneous 102
Interlibrary Loan 2 Computer Programs
Books – Consortium 202 Media – Consortium 159
Total Print 4,362 Total Non-Print 3,394
Total Circulation 2/19 7,756 Downloadable Audio 532
Total Circulation 2/18 8,575 Downloadable EBooks 628
% change -9% % change in downloadable +25%
In-House circulation 376
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Page 2 of 2
Library Mid-Month Report
Library Door Count……. 7,410
Income
Fines $ 233.95
Xerox 0.00
Lost/Damaged 0.00
Test Proctoring Fee 40.00
Printing 265.25
Other 0.00
Total income $ 539.20
In February 4 volunteers worked about 24 hours. There were 11 children’s programs with 200 total in
attendance, and 15 adult and family programs with 188 attendees. We conducted one tour for 8
students. In February we ordered 5 interlibrary loan items not available through the consortium and
received 4 items, we returned 4 items and loaned 14 items to other libraries who are out of state or not
in the consortium.
Library Cards Issued February
ILL 1
Kasilof 1
Kenai 29
Nikiski 6
Ninilchik 2
Non-Resident 5
Other Peninsula 3
Soldotna 4
Total 52
101
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Robert J. Frates, Parks & Recreation Director
DATE: March 11, 2019
SUBJECT: Mid-Month Report – February 2019
____________________________________________________________________________
There were a total of 80.50 hours rented at the multi-purpose facility for the month of February.
A total of 72 hours were rented last year during this same time. This winter’s ice season will come
to a close on March 18th.
February’s snowfall presented local skiers with some of the best skiing in several years. The
Kenai Middle School hosted the Borough Championship Ski Race on March 1st with a total of 65
skiers from Homer, Soldotna, Kenai and Seward. There were a total of 52.50 grooming hours put
into the Kenai Nordic Trails for the month of February.
A total of 47.50 hours were spent removing snow off facility sidewalks and another four hours
maintaining a variety of parking lots. Team member Charlotte Thurman expended 93.50
removing snow around fire hydrants. A big “thank you” goes to the fire department and street
department for assisting.
Staff spent 34 hours maintaining the Daubenspeck Family Park pond. Due to the amount of snow
this season, we have kept the skating area to a manageable but appropriate size. We have not
seen as much use this season as in year’s past although this may change as we enter into March,
particularly with the MPF closing on the 18th.
The department is working with the Alaska Department of Corrections for the construction of four
standard picnic tables. They will also be donating four octagon shaped tables as well. Moreover,
ADF&G will be donating two additional interpretive displays for the Kenai River Flats Wildlife
Viewing Boardwalk off Bridge Access Road.
102
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: March 2019
SUBJECT: Mid-Month Report; Public Works / Capital Projects
• Terminal Building Rehabilitation Project – Blazy Construction was issued a Notice to Proceed
on October 1, 2018. The project is approximately 15% complete to date. Inside the facility
the new Car Rental areas have been framed out, mechanicals installed and inspected, drywall
work is beginning; Airline Tenant space #2 is now framed out, mechanicals underway, will be
installing drywall by months end. Additional interior work completed includes installation of
new electrical panels, installation of various underground plumbing, and demolition of 95% of
the terminal ceilings. Exterior work includes the removal of the majority of siding / wall panels.
Project Completion date is currently scheduled for February 2, 2020 after being pushed back
due to the full extent of the asbestos abatement. The A/E Team and Contractor have
processed roughly 75% of the required submittals, as well as responding to 130 RFIs to date.
The project is proceeding well and as spring arrives activity will pick up as the approved
equipment and materials continue to arrive at the site.
• Automated Flight Service Station Renovations Phase 3 (Interior remodel) – Invitations to Bid
were released on November 16, 2018 with Bids due on December 14, 2018. Ordinance 3049-
2019 was enacted on February 20, 2019 accepting additional Funding from the FAA for the
Project to be completed as requested. Polar North Construction was issued a formal Notice
of Award on February 27, 2019; Agreement has been executed with a Notice to Proceed
issued on March 14, 2019.
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Page 2 of 4
Mid-Month Report
• WWTP Improvements – The combined Aeration Blower Replacement / DO Probes project
Invitation to Bid was released on February 13, 2019 with Bids due on March 27, 2019. Project
is anticipated to take place throughout the summer with completion in the fall. Additional
maintenance work taking place this period included the revitalization of a backup Rotary
Screen and conveyor for the Plant’s Head works. This equipment has not run in over a
decade, and was brought back to life with coordination between the WWTP & City Shop Staff.
With this equipment now being functional again, the City has an extra measure of security in
the event of an equipment failure. PO approval is also being requested this month for the
budgeted purchase of two Wasting Pumps for the RAS/WAS building. We are currently
relying on one usable 30+ year old pump, with its backup also out of service. This purchase
will allow for new pumps with redundancy again, adding to the security of the facility’s
operations.
Blower Dissolved Oxygen Probe
Rotary Screen
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Page 3 of 4
Mid-Month Report
• Dock repair – The City Dock received some new damages as a result of the November 30,
2018 Earthquake. Public Works and Finance are coordinating with the insurance company
to complete an Engineer’s assessment of the damages. Anticipating the current project
documents being modified to account for the new damages. Invitations to Bid for this project
will likely be April 2019.
• Purchase Street Sweeper – Bid was awarded to Yukon Equipment and Street Sweeper is
expected to deliver in April 2019.
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Page 4 of 4
Mid-Month Report
• Recreation Center Improvements – Repairs to correct the exterior grading / drainage will take
place May/June 2019. Remaining grant funds are expected to be used by end of fiscal year
June 30th.
• Kenai Cemetery Expansion 2018 – Design Documents are 100% complete. Project will bid
late winter for a May/June 2019 construction start.
• Peninsula Avenue Bluff Erosion 2018 – Design Documents are now 100% complete. Project
Area continues to be monitored throughout the winter months for additional erosion.
Invitations to Bid will be released late winter for a May/June 2019 construction start. Early
March 2019 Public Works Staff removed trees near the roadway erosion to allow trucks to
quickly access in the event breakup occurs too quickly.
• Alaska Regional Fire Training Facility – RFP for Engineering, Design, and Construction
Administration Services Released March 14, 2019.
• USACE Bluff Erosion – See City Manager’s report.
• DOT KSH Rehabilitation (Widening to 5 lanes) Phase 1 Swires Rd. to Eagle Rock Dr. was bid
on March 30, 2018. City of Kenai water main replacement crossing KSH at Shotgun/Beaver
Loop designed, funded, and will be bid with DOT project. Project has now stopped for winter
and will start back up in Spring 2019.
• DOT KSH Rehabilitation (Widening to 5 lanes) Phase 2 Eagle Rock Dr. to Sports Lake –
ADOT advises this project will take place 2019.
• DOT Beaver Loop Road and Pedestrian Pathway Project – ADOT advises construction may
be possible in 2019.
106
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: March 4, 2019
SUBJECT: February 2019 Monthly Report
This month the Kenai Animal Shelter took in 55 animals. Animal intake and disposition:
DOGS:
INTAKE 13 DISPOSITION 10
Waiver 4 Adopted 7
Stray 6 Euthanized 0
Impound 0 Claimed 3
Protective Custody 0 Field Release 0
Quarantine 0 Transferred to Rescue 0
Other Intakes 3 Other Dispositions 0
CATS:
INTAKE 42 DISPOSITION 35
Waiver 25 Adopted 15
Stray 16 Euthanized 1
Impound 0 Claimed 0
Protective Custody 0 Field Release 0
Quarantine 0 Transferred to Rescue 19
Other Intakes 1 Other Dispositions 0
OTHER ANIMALS:
INTAKE 0 DISPOSITION 0
DOA: 7 OTHER STATISTICS:
Dog 5 Licenses (City of Kenai Dog Licenses) 29
Cat 2 Microchips (Dog and Cat) 2
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Page 2 of 2
Animal Control Mid-Month Report
1 Citations
2 Animal dropped with After Hours (days we are closed but cleaning and with KPD)
46.50 Volunteer Hours Logged
22 Animals are known borough animals
15 Field Investigations & patrols
Statistical Data:
103 2017 YTD Intakes
112 2018 YTD Intakes
128 2019 YTD Intakes
108
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: March 11, 2019
SUBJECT: Planning and Zoning February 2019 Report
____________________________________________________________________________
Below are a summary of activity in February 2019 for the Planning and Zoning Department.
Planning and Zoning Commission Agenda Items and Resolutions
The Planning and Zoning Commission approved of one conditional use permit:
Resolution PZ2018-30 - Application for a Conditional Use Permit to operate a Boarding House
located at 160 Phillips Drive, Kenai, Alaska 99611, and further described as Lot 9, Block 8,
Valhalla Heights Subdivision Part 3. The application was submitted by Perry and Sheryl Neel,
P.O. Box 1075, Kasilof, Alaska 99610
Sign Code initial work session – purpose and intent statements
Lands, Economic Development, and Outreach
The temporary lands staff-person is making progress research City-owned lands, which will be
used to create a Land Management Plan.
The City Planner and Administration met to clarify lands processes and tracking.
City staff met to discuss Kenai Municipal Code for City-owned properties.
The City Planner attended a Parks and Recreation Commission meeting to communicate
information about bicycling in Kenai.
The City Planner attended a board meeting of the Kenai Peninsula Borough Alaska LNG Project
Advisory Committee.
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Page 2 of 2
Planning and Zoning Mid -Month Report
Plans and Reports
The City Planner communicated with a consultant who will be assisting the City to update the
local hazard mitigation plan.
The City Planner met to discuss the Central and Southern Kenai Peninsula Coordinated Public
Transit-Human Services Transportation Plan.
Code Enforcement (Complaint Responses and Community Outreach Measures)
2 cases were opened in February 2019:
• 2 – Junked or Abandoned Vehicles
110
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: March 7, 2018
SUBJECT: Police & Communications Department Activity – February 2019
Police handled 526 calls for service in February. Dispatch received 202 9-1-1 calls. Officers
made 39 arrests. Traffic enforcement resulted in 69 traffic contacts and 24 traffic citations.
There were two DUI arrests (one felony). Officers investigated 16 motor vehicle crashes. There
were four collisions involving moose. There was one collision involving drugs or alcohol.
February training included: Two officers attended Advanced Law Enforcement Rapid Response
Training (ALERRT) in Kenai. The KPD officer on the SERT team attended two days of training.
Nine officers attended a Defensive Tactics in-service training in Kenai. One new officer
completed the lateral training academy in Sitka. All dispatchers attended training in Soldotna
for the Computer Aided Dispatch (CAD) upgrades occurring in March. One dispatcher attended
APSIN training in Anchorage. One dispatcher attended incident response training in New
Mexico, which was grant funded.
In addition to handling police calls in various schools, the School Resource Officer has completed
teaching DARE at Kaleidoscope after graduating two classes of fifth graders.
1169
467
1274
517
1140
551
0
500
1000
1500
Total Police Service Calls 911 Calls Received
2019(Jan 1 - Feb 28)2018(Jan 1 - Feb 28)2017(Jan1 - Feb 28)
111
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: March 11, 2019
SUBJECT: February 2019 Monthly Report
Congregate Meals Served (Dining Room) 1,196
Home Delivered Meals 1,345
Volunteer Hours (36 individuals) 631
Unassisted Transportation Rides 382
Assisted Transportation Rides 130
Social Security Video Service 52 individuals
Senior Center Rentals 0
Total Events Sign Ins (through MySeniorCenter) 2,190
Total Unduplicated Participants (through MySeniorCenter) 231
• February activities included a No-Host Dinner to the King Salmon Restaurant,
Kaleidoscope Elementary performing at lunchtime and February Waffle Fridays was again a big
hit!
• Spotlighting Volunteer Carol Freas this month as she is a regular face around the Senior
Center. Carol works at the Reception Desk two days each week, puts together the base for our
monthly newsletter, serves at the Secretary for Kenai Senior Connection, Inc., and is a big help
to the kitchen for special events. Her tireless help is very much appreciated.
• Our Annual Volunteer Luncheon was well attended as we celebrated and recognized
those individuals who help make our place run smoothly. Using the MySeniorCenter software,
we were able to track 8,548 volunteer hours during 2018. The national monetary value placed on
volunteer hours for last year is $24.69 per hour, which equals to $211,065.93 for 2018! We have
the saying “Volunteers are the heart of our Center” - this rings so true especially during these
troubling financial times.
112
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: March 14, 2019
SUBJECT: Report to Council – Destruction of Records
In accordance with the City of Kenai Public Records Management Schedule and Record Retention
Policy, approved and adopted under Resolution No. 2017-22, the City Clerk's Office disposed of certain
City Records on March 14, 2019, which were subject to disposal under the Schedule.
Human Resources 3 boxes
Public Works 9 boxes
Legal Department 14 boxes
Clerk’s Office 4 boxes
Finance Department 50 boxes
Airport 1 box
Fire Department 3 boxes
Parks and Recreation 1 box
Animal Shelter 4 boxes
The records were authorized for destruction by the respective department managers and the city
attorney, as per KMC10.30. A complete list of the above referenced obsolete records is available for
review in the Clerk's Office.
113
PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW
COUNCIL MEETING OF: MARCH 20, 2019
VENDOR DESCRIPTION DEPT .
REGRIGERATION SUPPLIES R-22 REFRIGERANT RECREATION
PREFERRED PLUMBING REPLACE SNOW MELT CONTROLLERS AIRPORT
KENAI CATERING EMPLOYEE APPRECIATION CATERING NON-DEPT.
ADO RAMA W IRELESS EQUIPMENT LEGISLATIVE
ACCOUNT AMOUNT
OPERATING SUPPLIES 5,310.00
REPAIR & MAINTENANCE 7 ,209.00
MISCELLANEOUS 3,696.00
SMALL TOOLS 2 ,927 .75
114
ACTION AGENDA
KENAI CITY COUNCIL -REGULAR MEETING
MARCH 20, 2019 -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 rou ti ne and non-controversial
by the council and will be approved by one motion . There will be no separate
discussion of these items unless a council member so requests , in which case the item
will be removed from the consent agenda and considered in its normal sequence on
the agenda as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per
speaker)
1. Craig Thomsen -Cleanup of Valhalla Heights Subdivision.
C. UNSCHEDULED PUBLIC COMMENTS (Public comment lim ited to three (3) minutes per
speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. ENACTED UNANIMOUSLY. Ordinance No. 3053-2019 -Increasi ng Estimated
Revenues and Appropriations in the General Fund for the Donation of a Bush Doctor's
Historic Cabin from Doctor Peter Hansen and Kenai Community Founda tion and
Supporting the Placement of the Cabin Adjacent to the Kenai Visitor Center. (Council
Members Molloy and Pettey)
2. ENACTED UNANIMOUSLY. Ordinance No. 3054-2019 -Accepting Drug Seizure
Funds Forfeited to the City in the Amount of $2, 153.52 and Appropriating those Funds
into the Police Professional Services Account in the Furthera nce of Crim inal
Investigations . (Administration)
3. ENACTED UNANIMOUSLY. Ordinance No. 3055-2019 -Acceptin g and
Appropriating a Scholarship from the Alaska Association of Mun icip al Clerks for
Employe e Travel and Training . (C ity Clerk )
4. ADOPTED UNANIMOUSLY. Resolution No. 20 19-15 -Amending its
Comprehensive Schedule of Rates , Ch arges , and Fees to Amend the Fee for Mobile
Food Vendor Licenses . (City Clerk )
Kenai City Council Meeti ng
March 20, 2019
Page 1 of 3
5. ADOPTED UNANIMOUSLY. Resolution No. 2019-16 -Approving the Purchase of
Ten Portable Radios and Accessories for the Police and Fire Departments under a
Sole Source Purchase from Motorola Solutions using NASPO ValuePoint Co ntract
Pric ing for the Tota l Price of $55,401 .16. (Administration )
6. ADOPTED UNANIMOUSLY. Resolution No. 2019-17 -In Support of Modifying SB 57
and HB 59 to Restore Local Municipalities Authority to Tax Oi l and Gas Property
Ta xable Under AS 43.56 to a Maximum of 15 Mils . (Counc il Member Peterkin and
Mayor Gabriel)
7. ADOPTED UNANIMOUSLY. Resolution No. 2019-18 -Opposing SB 63 and HB 65
Repealing Fisheries Business Ta x Refunds to Municipa li ties and Revenue Sharing for
Fishery Resource Landing Ta xes . (Counci l Member Pe ter kin and Mayor Gabrie l)
E. MINUTES
1. APPROVED BY THE CONSENT AGENDA. *Regu lar Meeting of March 6 , 2019
F. UNFINISHED BUSINESS-None.
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Bills to be Ratified .
(Administration)
2. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Purchase Orders
Exceeding $15 ,000 . (Administration)
3 . INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 4103119.
*Ordinance No. 3057-2019 -Accepting and Appropriating a Grant from the State of
Alaska Department of Public Safety for Crime Prevention and Response and
Equ ipment for the Purchase of Portable Radios and Accesso ries for the Police
Department, and to Purchase Supplies in Support of the D.A.R.E Programs
Conducted by the Police Department in Local Elementary Schools. (Adm inistration )
4. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 4103119.
*Ordi nance No. 3058-2019 -Amending Provisions in Kena i Municipal Code Title 7 -
Finance , Taxation , and Business Affairs of the City , includ ing Investment of Monies -
Scope and Objectives 7.2 2.01 O; Land Sale Permanent Funds -General Fund Land
Sale Permanent Fund 7.30 .005 ; Investments 7 .30 .020; Investments 7.30 .020 ;
In vestments 7.30 .020 ; and Investments 7.30.020 fo r Updates to Ma nagement
Practices for the City 's General Land Sale and Airport Land Sale Permanen t Funds.
(Administration)
5 . APPROVED UNANIMOUSLY. Action/Appr oval -Special Use Permit to State of
Alaska Division of Natural Resources-Forestry. (Administration )
6. Discussion -Onsite Marijuana Consumption . (Adm inist ra ti on)
Kenai City Co uncil Meeting
March 20, 201 9
Page 2 of 3
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. 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
M. PENDING ITEMS
1. Ordinance No. 3056-2019 -Amending Kenai Municipal Code 14.22.010-Land Use
Table , to Allow Business/ Consumer Services and Taxidermy/Gunsmithing in RR1
Zoning District by Condit ional Use Permit and Removing the Location Restriction on
Professional Offices Allowed by Conditional Use Permit Within the RR1 Zone . (Council
Members Peterkin and Glendening)
[Clerk 's Note: This item was Referred to the Planning & Zoning Commission for a
Recommendation at their March 27, 2019 Meeting and a Public Hearing Scheduled
before the City Council on April 3, 2019.]
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 Meeting
March 20, 2019
Page 3 of 3
CITY OF KENAI
NOTICE OF ORDINANCES AND RESOLUTIONS
ADOPTED AT THE MARCH 20, 2019
KENAI CITY COUNCIL MEETING
NOTICE IS HEREBY GIVEN the City of Kenai Council passed the follo wi ng Ordinance(s)
and /or Resolution(s) at the above-referenced meeting .
1 . ENACTED UNANIMOUSLY. Ordinance No. 3053-2019 -Increas ing Estimated
Revenues and Appropriations in the General Fund for the Donation of a Bush Doctor's
Historic Cabin from Doctor Peter Hansen and Kenai Community Foundation and
Supporting the Placement of the Cabin Adjacent to the Kenai Visi tor Center. (Council
Members Molloy and Pettey)
2. ENACTED UNANIMOUSLY. Ordinance No. 3054-2019 -Accepting Drug Seizure
Funds Forfeited to the City in the Amount of $2 , 153.52 and Appropriating those Funds
into the Police Professional Services Account in the Furtherance of Crim ina l
Investigations. (Administration)
3. ENACTED UNANIMOUSLY. Ordinance No. 3055-2019 -Accepting and Appropriating
a Scholarship from the Alaska Association of Municipa l C lerks for Employee Travel and
Training . (City Clerk )
4 . ADOPTED UNANIMOUSLY. Resolution No. 2019-15 -Amending its Comprehensive
Schedule of Rates , Charges, and Fees to Amend the Fee for Mobile Food Vendor
Licenses . (City Clerk)
5. ADOPTED UNANIMOUSLY. Resol ution No. 2019-16-Approving the Purchase of Ten
Portable Radios and Accessories for the Police and Fire Departments under a Sole
Source Purchase from Motorola Solutions using NASPO ValuePoint Contract Pricing for
the Total Price of $55,401 .16. (Administration)
6 . ADOPTED UNANIMOUSLY. Resolution No. 2019-17 -In Support of Modifying SB 57
and HB 59 to Restore Local Municipalities Authority to Tax Oil and Gas Property
Taxable Under AS 43 .56 to a Maximum of 15 Mils. (Council Member Peterki n and Mayor
Gabriel)
7. ADOPTED UNANIMOUSLY. Resolution No. 2019-18 -Opposing SB 63 and HB 65
Repealing Fisheries Business Tax Refunds to Municipalities and Re venue Sharing for
Fishery Resource Landing Ta xes . (Council Member Peterki n and Mayor Gabriel )
NOTICE OF PUBLIC HEARING
MARCH 20, 2019
CITY OF KENAI COUNCIL MEETING
NOTICE IS HEREBY GIVEN the City Council of the City of Kenai will conduct a public hearing
on the following Ordinance(s) and/or Resolution(s) on the above-noted meeting date :
1. Ordinance No. 3053-2019 -Increasing Estimated Revenues and Appropriations in
the General Fund for the Donation of a Bush Doctor's Historic Cabin from Doctor
Peter Hansen and Kenai Community Foundation and Supporting the Placement of
the Cabin Adjacent to the Kenai Visitor Center. (Council Members Molloy and Pettey)
2 . Ordinance No. 3054-2019 -Accepting Drug Seizure Funds Forfeited to the City in
the Amount of $2 , 153.52 and Appropriating those Funds into the Police Professional
Services Account in the Furtherance of Criminal Investigations. (Administration)
3. Ordinance No. 3055-2019-Accepting and Appropriating a Scholarship from the
Alaska Association of Municipal Clerks for Employee Travel and Training . (City
Clerk)
4. Resolution No. 2019-15 -Amending its Comprehensive Schedule of Rates,
Charges, and Fees to Amend the Fee for Mobile Food Vendor Licenses. (City Clerk)
5. Resolution No. 2019-16-Approving the Purchase of Ten Portable Radios and
Accessories for the Police and Fire Departments under a Sole Source Purchase from
Motorola Solutions using NASPO ValuePoint Contract Pricing for the Total Price of
$55,401 .16. (Administration)
6 . Resolution No. 2019-17 -In Support of Modifying SB 57 and HB 59 to Restore
Local Municipalities Authority to Tax Oil and Gas Property Taxable Under AS 43.56
to a Maximum of 15 Mils . (Council Member Peterkin and Mayor Gabriel)
7. Resolution No. 2019-18 -Opposing SB 63 and HB 65 Repealing Fisheries
Business Tax Refunds to Municipalities and Revenue Sharing for Fishery Resource
Landing Taxes. (Council Member Peterkin and Mayor Gabriel)
The public hearing will commence at 6:00 p.m., or as soon thereafter as business permits, in the
Kenai City Council Chambers, 210 Fida Igo Avenue, Kenai, Alaska, 99611. All interested
persons are invited to attend the meeting and participate in the public discussion . Written
comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 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 otice.