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2019-05-15 Council Packet
KENAI CITY COUNCIL - REGULAR MEETING MAY 15, 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) C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.Ordinance No. 3063-2019 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2019 and Ending June 30, 2020 and Committing $500,000 of General Fund, Fund Balance for Capital Improvements, Amending the Salary Schedule in Kenai Municipal Code Chapter 23.55- Pay Plan, Amending Employee Classifications in Kenai Municipal Code Chapter 23.50, and Amending Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23.55. (Administration) Ordinance No. 3063-2019.pdf Ordinance No. 3063-2019 Budget Amendments.pdf D.2.Ordinance No. 3064-2019 – Increasing Estimated Revenues and Appropriations by $339.90 in the General Fund – Police Department for State Traffic Grant Overtime Expenditures. (Administration) Ordinance No. 3064-2019.pdf D.3.Ordinance No. 3065-2019 – Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) Ordinance No. 3065-2019.pdf D.4.Resolution No. 2019-28 – Authorizing a Budget Transfer within the Water and Sewer Fund for Appraisal Costs Related to the Purchase of Well Radius Property for the City’s Public Water 1 Kenai City Council Meeting Page 2 May 15, 2019 System. (Administration) Resolution No. 2019-28.pdf D.5.Resolution No. 2019-29 – Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2019 and Ending June 30, 2020. (Administration) Resolution No. 2019-29.pdf D.6.Resolution No. 2019-30 - Supporting Kenai Peninsula Borough Ordinance 2019-09 Amending the Borough’s Sales Tax Code to Levy a 12 Percent Tax on Temporary Lodging, Exempt Temporary Lodging Rentals from the General Sales Tax, and Allow Cities that Levy a Similar Sales Tax on Temporary Lodging to Exempt Up to One-Half of the Borough’s Temporary Lodging Tax, Subject to Borough Voter Approval. (Administration) Resolution No. 2019-30.pdf D.7.Resolution No. 2019-31 – Awarding a Concession Agreement for Management and Administrative Services to Provide Summer Ice Activities at the City of Kenai Multi-Purpose Facility. (Administration) Resolution No. 2019-31.pdf D.8.Resolution No. 2019-32 – Authorizing an Amendment to the Airport Advertising Concession Agreement for the Kenai Municipal Airport. (Administration) Resolution No. 2019-32.pdf D.9.Resolution No. 2019-33 – Authorizing Contracts for Employee Health Care and Other Benefits Effective July 1, 2019. (Administration) Resolution No. 2019-33.pdf E.MINUTES E.1.*Regular Meeting of May 1, 2019 05-01-19 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 Over $15,000. (Administration) Purchase Orders over $15,000.pdf G.3.*Action/Approval – Non-Objection to the Issuance of a New Liquor License for Griffin Golf, LLC. (City Clerk) Kenai Golf Course License No. 5788.pdf G.4.*Ordinance No. 3066-2019 – Accepting and Appropriating a Grant from the Federal Aviation Administration for the 2019 Airfield Marking, Crack Sealing, and Minor Pavement Repair Project and Awarding a Construction Contract to Complete the Work. (Administration) Ordinance No. 3066-2019.pdf G.5.*Ordinance No. 3067-2019 – Accepting and Appropriating $26,605.40 in Asset Forfeiture Sharing Funds and Appropriating Those Funds Into the Police Small Tools Account for the 2 Kenai City Council Meeting Page 3 May 15, 2019 Purpose of Purchasing Law Enforcement Equipment. (Administration) Ordinance No. 3067-2019.pdf G.6.*Ordinance No. 3068-2019 – Amending Kenai Municipal Code 14.20.320- Definitions and 14.20.330- Standards for Commercial Marijuana Establishments to Prohibit Onsite Consumption of Marijuana at Retail Marijuana Stores Requiring an Onsite Consumption Endorsement. (Council Members Pettey and Glendening) Ordinance No. 3068-2019.pdf G.7.Ordinance No. 3062-2019 – Increasing FY2019 General Fund Estimated Revenues and Appropriations by $20,859 and FY2020 General Fund Estimated Revenues and Appropriations by $35,418 in the General Fund Parks, Recreation and Beautification Department for the Receipt of a Grant from the United States Environmental Protection Agency Passed Through the State of Alaska Department of Environmental Conservation for Bacteria Level Monitoring on the City’s Beaches from May to September During 2019 and 2020. (Administration) [Clerk’s Note: This ordinance was enacted at the 5/1/19 meeting. Notice has been received by the granting agency that the amounts of the grant have changed. A motion to amend something previously adopted is in order and as such, appearance on this agenda serves as notice.] Ordinance No. 3062-2019.pdf Ordinance No. 3062-2019 Memo Amendment - Roberts Rules.pdf Ordinance No. 3062-2019 Memo Amendment No. 2.pdf G.8.Action/Approval – Application for Extension of Lease Application Expiration Date for the Undeveloped Portion of Tract A, General Aviation Apron No. 2. (Administration) Application for Extension of Lease.pdf G.9.Action/Approval – Consenting to the Assignment of Lease to Don Moffis for Lot 5, Block 1, Gusty Subdivision, Addition No. 1, Amended. (Administration) Lease Assignment to Don Moffis.pdf G.10.Action/Approval – Awarding an Employment Agreement between the City of Kenai and City Attorney, Scott Bloom. (Mayor Gabriel) [Clerk’s Note: Council May Convene into Executive Session to Discuss this Agenda Item which Pursuant to AS 44.62.310(C)(2) May be a Subject that Tends to Prejudice the Reputation and Character of the Applicant and per AS 44.62.310(c)(1) is a Matter of which the Immediate Knowledge may have an Adverse Effect Upon the Finances of the City.] G.11.Action/Approval – Amending an Employment Agreement between the City of Kenai and City Attorney, Scott Bloom. (Mayor Gabriel) G.12.Action/Approval – Amending an Employment Agreement between the City of Kenai and City Manager, Paul Ostrander. (Mayor Gabriel) G.13.Action/Approval – Amending an Employment Agreement between the City of Kenai and City Clerk, Jamie Heinz. (Mayor Gabriel) G.14.Discussion – Schedule a Work Session to Review and Discuss City Land Sale and Leasing 3 Kenai City Council Meeting Page 4 May 15, 2019 Policies and Practices. (Administration) Land Sale and Leasing Policy Scheduling.pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission H.3.Harbor Commission H.4.Parks and Recreation Commission H.5.Planning and Zoning Commission H.6.Beautification Committee H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager Mid-Month Reports.pdf Quarterly Financial Report.pdf Quarterly Investment Report.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2.Council Comments L.EXECUTIVE SESSION – See item G.10. M.PENDING ITEMS - None. 4 Kenai City Council Meeting Page 5 May 15, 2019 INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review PO's between $2,500 - $15,000.pdf Disability Pride Event Disability Pride Event.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. 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3063-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2019 AND ENDING JUNE 30, 2020 AND COMMITTING $500,000 OF GENERAL FUND, FUND BALANCE FOR CAPITAL IMPROVEMENTS, AMENDING THE SALARY SCHEDULE IN KENAI MUNICIPAL CODE CHAPTER 23.55- PAY PLAN, AMENDING EMPLOYEE CLASSIFICATIONS IN KENAI MUNICIPAL CODE CHAPTER 23.50, AND AMENDING COMMUNICATION DEPARTMENT UNIFORM ALLOWANCE IN KENAI MUNICIPAL CODE CHAPTER 23.55. WHEREAS, it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not later than the tenth day of June, adopt a budget for the following fiscal year and make appropriation of the monies needed; and, WHEREAS, committed fund balance represents resources whose use is constrained by limitations that Council imposes upon itself at its highest level of decision making, an Ordinance, and that remain binding unless removed in the same manner; and, WHEREAS, in recognition of deferred and ongoing maintenance needs of City roads and facilities, Council commits $500,000 for future renovation and improvements to City facilities; and, WHEREAS, the fiscal year 2020 Budget includes a 2.0% increase to the City’s Salary Schedule; and, WHEREAS, the pay increase will go into effect beginning July 1, 2019; and, WHEREAS, the FY2020 Budget includes a change in position requiring amendment to the City’s employee classifications; and, WHEREAS, a proposed change in uniform requirements in the Communication Department requires amendment to the uniform allowance section of the Kenai Municipal Code. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That certain document entitled "City of Kenai Fiscal Year 2020 Annual Budget" which is available for examination by the public in the Office of the City Clerk, the City’s website and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 2019 and ending June 30, 2020. Section 2. The following sums of money are hereby appropriated for the operations of the City of Kenai for the fiscal year commencing on the first day of July, 2019, and ending the 30th day of June, 2020, to be expended consistent with and subject to the restrictions, procedures, 6 Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: General Fund $16,520,301 Enterprise Fund – Congregate Housing Fund 496,568 Internal Service Funds: Equipment Replacement Fund 190,000 Employee Health Care Fund 2,733,336 Total Internal Service Funds 2,923,336 Special Revenue Funds: Personal Use Fishery Fund 499,035 Water & Sewer Fund 3,687,457 Airport Fund 3,003,306 Senior Citizen Fund 946,606 Total Special Revenue Funds 8,136,404 Capital Project Funds: Library Improvements Fund 50,000 Municipal Roadway Improvements Fund 200,000 Trail Construction Fund 37,800 Kenai Recreation Center Improvements Fund 100,000 Airport Operations Center Fund 40,000 Water & Sewer Improvements 75,000 Waste Water Treatment Plant Improvements Fund 630,000 1,132,800 Permanent Funds: Airport Land Sale Permanent Fund 908,811 General Land Sale Permanent Fund 124,252 Total Permanent Revenue Funds 1,033,063 Debt Service Fund – Library Expansion Bonds 172,704 Total All Funds $30,415,176 Section 3. Council herby commits $500,000 of Unassigned General Fund, Fund Balance for future renovations and improvements to City facilities and streets. Section 4. Amendment of Salary Schedule in Chapter 23.55 of the Kenai Municipal Code: That the Salary Schedule in Kenai Municipal Code Chapter 23.55-Pay Plan, is hereby amended as follows: Classified employees excluding those engaged in fire protection activities. Range A B C D E F AA BB CC Step 1 $10.50 $10.76 $11.03 $11.29 $11.55 $11.81 $12.08 $12.34 $12.60 7 Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 1.1 11.02 11.30 11.57 11.85 12.12 12.40 12.67 12.95 13.22 2 11.72 12.01 12.31 12.60 12.89 13.19 13.48 13.77 14.06 2.1 12.34 12.65 12.96 13.27 13.57 13.88 14.19 14.50 14.81 2.2 13.05 13.38 13.70 14.03 14.36 14.68 15.01 15.33 15.66 2.3 13.71 14.05 14.40 14.74 15.08 15.42 15.77 16.11 16.45 2.4 16.00 16.40 16.80 17.20 17.60 18.00 18.40 18.80 19.20 2.5 18.14 18.59 19.05 19.50 19.95 20.41 20.86 21.31 21.77 3 18.25 18.71 19.16 19.62 20.08 20.53 20.99 21.44 21.90 4 19.17 19.65 20.13 20.61 21.09 21.57 22.05 22.52 23.00 5 20.12 20.62 21.13 21.63 22.13 22.64 23.14 23.64 24.14 6 21.11 21.64 22.17 22.69 23.22 23.75 24.28 24.80 25.33 7 22.19 22.74 23.30 23.85 24.41 24.96 25.52 26.07 26.63 8 23.31 23.89 24.48 25.06 25.64 26.22 26.81 27.39 27.97 9 24.47 25.08 25.69 26.31 26.92 27.53 28.14 28.75 29.36 10 25.67 26.31 26.95 27.60 28.24 28.88 29.52 30.16 30.80 11 26.96 27.63 28.31 28.98 29.66 30.33 31.00 31.68 32.35 12 28.34 29.05 29.76 30.47 31.17 31.88 32.59 33.30 34.01 13 29.72 30.46 31.21 31.95 32.69 33.44 34.18 34.92 35.66 14 31.22 32.00 32.78 33.56 34.34 35.12 35.90 36.68 37.46 15 32.77 33.59 34.41 35.23 36.05 36.87 37.69 38.50 39.32 16 34.41 35.27 36.13 36.99 37.85 38.71 39.57 40.43 41.29 17 36.13 37.03 37.94 38.84 39.74 40.65 41.55 42.45 43.36 18 37.93 38.88 39.83 40.77 41.72 42.67 43.62 44.57 45.52 19 39.83 40.83 41.82 42.82 43.81 44.81 45.80 46.80 47.80 20 41.83 42.88 43.92 44.97 46.01 47.06 48.10 49.15 50.20 21 43.94 45.04 46.14 47.24 48.33 49.43 50.53 51.63 52.73 22 46.10 47.25 48.41 49.56 50.71 51.86 53.02 54.17 55.32 23 48.42 49.63 50.84 52.05 53.26 54.47 55.68 56.89 58.10 24 50.91 52.18 53.46 54.73 56.00 57.27 58.55 59.82 61.09 Classified employees engaged in fire protection activities Range A B C D E F AA BB CC Step 13 21.23 21.76 22.29 22.82 23.35 23.88 24.41 24.95 25.48 14 22.30 22.86 23.42 23.97 24.53 25.09 25.65 26.20 26.76 15 23.42 24.01 24.59 25.18 25.76 26.35 26.93 27.52 28.10 16 24.59 25.20 25.82 26.43 27.05 27.66 28.28 28.89 29.51 17 25.82 26.47 27.11 27.76 28.40 29.05 29.69 30.34 30.98 Department Head Service employees Range Minimum Maximum 18 $78,910 $104,153 19 80,930 109,345 20 87,010 114,864 21 91,390 120,638 22 95,897 126,579 23 100,722 132,963 24 105,887 139,769 Section 5. Amendment of Employee Classification in Chapter 23.50 of the Kenai Municipal Code: Employee Classifications in Kenai Municipal Code Chapter 23.50 –Classification Plan, is hereby amended as follows: 8 Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] CLASS CODE CLASS TITLE RANGE (a) SUPERVISORY AND PROFESSIONAL 101 City Manager NG 102 City Attorney NG 103 City Clerk NG 104 Finance Director* 24 105 Public Works Director* 23 106 Police Chief* 23 107 Fire Chief* 22 112 Airport Manager* 20 117 City Planner 16 118 Information Technology (IT) Manager 18 119 Assistant to City Manager/Special Projects 18 120 Library Director* 18 121 Senior Center Director* 18 122 Parks and Recreation Director* 17 123 Human Resources Director* 21 (b) ADMINISTRATIVE SUPPORT 203 Administrative Assistant I 8 204 Accounting Technician I 10 205 Accounting Technician II 11 206 Accountant 16 210 Administrative Assistant II 9 211 Administrative Assistant III 10 214 Library Assistant 6 218 Library Aide 2.5 219 Data Entry Clerk 1.1 (c) PUBLIC SAFETY 302 Fire Fighter 13 303 Police Lieutenant 20 304 Police Sergeant 18 305 Police Officer 16 306 Public Safety Dispatcher 9 307 Fire Engineer 15 311 Fire Captain 16 312 Fire Marshal 17 313 Communications Supervisor 12 314 Police Trainee 16/21 315 [BATTALION CHIEF/SAFETY OFFICER] Deputy Chief [17]20 316 Chief Animal Control Officer 11 317 Animal Control Officer 9 (d) PUBLIC WORKS 9 Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 401 Building Official/Manager 17 402 Shop Foreman 16 403 Street Foreman 16 404 Sewer Treatment Plant Operator 13 405 Water and Sewer Operator 13 407 Equipment Operator 11 408 Shop Mechanic 14 409 Equipment Lead Operator 14 410 Water and Sewer Foreman 16 412 Building Maintenance Technician 12 413 Sewer Treatment Plant Lead Operator 14 414 Sewer Treatment Plant Foreman 16 417 Airport Operations Specialist 11 418 Airport Operations Supervisor 15 419 Building Maintenance Lead Technician 14 420 Water and Sewer Lead Operator 14 (e) GENERAL SERVICES 504 Parks, Beautification and Recreation Operator 9 505 Parks, Beautification and Recreation Laborer 2.4 506 Cook 2.4 507 Activities/Volunteer Coordinator 2.4 508 Meals/Driver 2.4 509 Kitchen Assistant 2.2 510 Outreach Worker 1.1 511 Janitor 2.4 512 Driver 1 * Department Heads Section 6. Amendment of Communication Department Uniform Allowance in Chapter 23.55 of the Kenai Municipal Code: Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23.55 – Pay Plan, is hereby amended as follows: (a) The following annual allowances are established to defer the cost of uniform cleaning, maintenance, and replacement for second and succeeding years of service: Police $800 Fire $500 Animal Control $500 [DISPATCH $300] Payment shall be made in advance in July and January installments. (b) On hiring, the respective department head shall issue from stock or purchase from appropriate funds a basic uniform and equipment issue. 10 Ordinance No. 3063-2019 Page 2 of 6 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (c) Public Works Departments, Water and Sewer, and Animal Control personnel shall be authorized to purchase from appropriated funds, safety shoes, hard hats, and other OSHA required items. Laundry service will also be provided for those clothing items furnished. Section 7. 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 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect July 1, 2019. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: _ __________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________ Introduced: May 1, 2019 Enacted: May 15, 2019 Effective: July 1, 2019 11 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: April 25, 2019 SUBJECT: Ordinance 3063-2019 to adopt the FY2020 Budget The purpose of this memo is to summarize the changes that have been proposed to the FY2020 Budget since disbursement of work session materials on April 11th, and to communicate the result of these changes on each of the City’s operating funds. The following are the Administration’s recommended changes that have been incorporated into the draft budget and appropriating ordinance. New summary pages for the all funds, after incorporating the changes, are attached for your review. Administration Recommended Amendments: General Fund Revenues: Multipurpose Fees $20,000 Ambulance Fees 50,000 70,000 Expenditures: Legislative Transportation 4,800 Grants to Agencies 2,000 $6,800 These General Fund changes are the result of the following items: 1. Review of Multipurpose Facility revenues to date for FY19 and for fiscal years 2017 & 2018 suggest an increase in budgeted revenues by $20,000 to $130,000. 2. The Fire Chief is recommending an increase in Ambulance Billing Fees after comparison to allowable Medicare/Medicaid rates and comparison to the fees being charged by other 12 Page 2 of 2 Ordinance 3063-2019 departments in the state. The result is expected to be an increase in annual revenue of $50,000. 3. After discussion with Council at the budget work session, the City Manager thought it appropriate to restore $4,800 of Council’s travel and restore the $2,000 in miscellaneous grants to agencies. Council Recommended Amendments: General Fund Revenues – PERS Funding $411 Expenditures: Clerk Wages $6,196 Leave 239 Medicare 94 PERS 1,363 Unemployment Insurance 32 Workers Compensation 20 $7,944 These General Fund changes are the result of the following items: 1. Council proposed amendment to the Clerk’s compensation agreement for FY2020 was more than what was included in the draft budget. attachments 13 City of Kenai Fiscal Year 2020 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection FY2017 FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 TAXABLE VALUES (000'S) 868,724$ 871,076$ 872,108$ 871,829$ 892,023$ 905,020$ 918,839$ MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 3,919,797 3,868,445 3,855,798 3,881,792 3,940,692 4,008,100 4,067,011 Sales Tax 6,715,501 6,854,253 7,124,915 7,207,189 7,387,175 7,572,053 7,761,354 Total Property & Sales Taxes 10,635,298 10,722,698 10,980,713 11,088,981 11,327,867 11,580,153 11,828,365 Intergovernmental Revenue: PERS Funding 288,137 218,726 386,406 386,406 470,553 484,670 499,210 Community Assistance 278,232 250,852 223,258 210,345 171,001 171,001 171,001 Fish Tax 165,087 118,543 165,000 130,000 130,000 133,900 137,917 Other 83,990 101,120 58,000 96,740 113,300 118,965 124,913 Total State/Federal Revenue 815,446 689,241 832,664 823,491 884,854 908,536 933,041 Other Revenue Licenses and Permits 48,557 93,863 63,500 63,000 63,500 65,405 67,367 Ambulance Fees 419,940 443,544 425,000 450,000 500,000 515,000 530,450 Interest 35,762 45,801 100,000 150,000 180,000 180,000 180,000 Other 613,358 585,268 736,541 683,256 606,346 624,536 643,272 Total Other Revenue 1,117,617 1,168,476 1,325,041 1,346,256 1,349,846 1,384,941 1,421,089 Total Revenues 12,568,361 12,580,415 13,138,418 13,258,728 13,562,567 13,873,630 14,182,495 Transfer From Other Funds Charges to other funds 1,494,200 1,542,390 1,574,200 1,574,200 1,596,000 1,643,880 1,693,196 Capital Projects / Special Revenue 124,303 - 283,221 283,221 50,000 50,000 50,000 Enterprise 34,000 400,000 - - - - - Trust Fund 149,802 161,561 162,999 - 124,252 126,737 129,272 Total Transfers 1,802,305 2,103,951 2,020,420 1,857,421 1,770,252 1,820,617 1,872,468 Total Revenues and Transfers 14,370,666 14,684,366 15,158,838 15,116,149 15,332,819 15,694,247 16,054,963 EXPENDITURES/APPROPRIATIONS General Government 2,682,321 2,526,974 3,417,880 3,430,630 3,565,592 3,641,610 3,714,442 Public Safety 6,679,790 7,075,417 7,559,066 7,559,066 7,702,840 7,856,897 8,014,035 Public Works 2,148,432 2,270,210 2,492,669 2,496,246 2,399,834 2,447,831 2,496,788 Parks, Recreation & Cultural 1,984,887 1,955,374 2,073,983 2,118,402 2,070,830 2,112,247 2,154,492 Total Operating Expenditures 13,495,430 13,827,975 15,543,598 15,604,344 15,739,096 16,058,585 16,379,757 Transfers or Non-Operating 745,130 833,913 622,429 622,429 781,205 640,684 652,405 Total Expenditures/Appropriations 14,240,560 14,661,888 16,166,027 16,226,773 16,520,301 16,699,269 17,032,162 Total Surplus (Deficit) 130,106 22,478 (1,007,189) (1,110,624) (1,187,482) (1,005,022) (977,199) Projected Lapse - 5% - - 777,180 780,217 786,955 802,929 818,988 Adjusted Surplus (Deficit) 130,106 22,478 (230,009) (330,407) (400,527) (202,093) (158,211) Beginning Fund Balance 10,418,100 10,548,206 10,463,198 10,570,684 10,240,277 9,839,750 9,637,657 Ending Fund Balance 10,548,206 10,570,684 10,233,189 10,240,277 9,839,750 9,637,657 9,479,446 Restricted (588,937) (682,068) (700,599) (718,068) (754,068) (790,068) (826,068) Committed (409,746) (6,976,762) (7,117,565) (7,175,452) (6,836,838) (6,616,234) (6,171,686) Assigned (1,409,610) (2,416,658) (2,415,025) (2,346,757) (2,248,844) (2,231,355) (2,481,692) Unassigned Fund Balance 8,139,913$ 495,196$ -$ -$ -$ -$ -$ 14 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 2,688$ 1,546$ 4,169$ 4,169$ 4,637$ Usage Fees Beach Parking 182,853 174,613 175,000 118,307 146,460 Beach Camping 238,752 210,269 225,000 129,938 170,100 Dock Launch & Park 128,109 111,528 115,000 91,608 101,600 Dock Parking Only 14,807 12,010 15,000 9,547 10,800 Participant Drop-off Fee 10,717 7,481 8,000 5,943 6,715 Total Usage Fees 575,238 515,901 538,000 355,343 435,675 Miscellaneous Revenues Investment earnings 671 1,522 750 750 750 Other (3,680) 674 (1,500) (3,100) (3,500) Total Miscellaneous Revenues (3,009) 2,196 (750) (2,350) (2,750) Total Revenue 574,917 519,643 541,419 357,162 437,562 Expenditures Public Safety 116,875 114,542 96,686 96,686 88,051 Streets 53,068 32,938 61,066 61,066 55,235 Boating Facility 72,668 56,380 72,137 72,137 64,161 Parks, Recreation & Beautification 268,686 225,445 275,224 278,712 241,588 Total Expenditures 511,297 429,305 505,113 508,601 449,035 Transfers - General Fund - - 50,000 50,000 50,000 Total Expenditures & Transfers 511,297 429,305 555,113 558,601 499,035 Contribution To/(From) Fund Balance:63,620 90,338 (13,694) (201,439) (61,473) Projected Lapse - - 21,151 77,167 18,722 Adjusted (Deficit)/Surplus 63,620 90,338 7,457 (124,272) (42,751) Beginning Fund Balance 139,936 203,556 209,896 293,894 169,622 Ending Fund Balance 203,556$ 293,894$ 217,353$ 169,622$ 126,871$ 15 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 010 - Water and Sewer Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 23,142$ 17,347$ 33,668$ 33,668$ 42,205$ Usage Fees Service Hook-up 2,205 2,608 3,927 2,945 3,063 Residential Water 791,580 830,102 832,279 839,251 872,821 Commercial Water 315,494 327,519 350,141 335,700 349,128 Residential Sewer 1,170,897 1,182,083 1,182,299 1,197,528 1,245,429 Commercial Sewer 445,805 453,930 494,807 466,251 484,901 Total Usage Fees 2,725,981 2,796,242 2,863,453 2,841,675 2,955,342 Miscellaneous Revenues Penalty and Interest 35,839 36,959 43,250 40,000 41,600 Interest Earnings 5,117 11,775 16,000 12,000 12,480 Other 4,361 24,775 3,000 3,000 3,000 Total Miscellaneous Revenues 45,317 73,509 62,250 55,000 57,080 Total Revenues 2,794,440 2,887,098 2,959,371 2,930,343 3,054,627 Expenditures Water Department 719,328 841,231 949,971 967,771 1,037,087 Sewer Department 723,136 456,195 499,384 499,384 594,826 Wastewater Treatment Plant Department 987,096 1,116,312 1,208,057 1,208,057 2,055,544 Total Expenditures 2,429,560 2,413,738 2,657,412 2,675,212 3,687,457 Contribution To/(From) Fund Balance:364,880 473,360 301,959 255,131 (632,830) Projected Lapse (6%)- - 136,903 137,971 162,297 Adjusted (Deficit)/Surplus 438,862 393,102 (470,533) Beginning Fund Balance 1,705,552 2,070,432 2,633,097 2,543,792 2,936,894 Ending Fund Balance 2,070,432$ 2,543,792$ 3,071,959$ 2,936,894$ 2,466,361$ 16 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 - Airport Fund Department: Airport Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State & Federal Grants 29,726$ 21,891$ 36,385$ 36,385$ 42,663$ Usage Fees Fuel Sales 7,621 10,685 10,000 17,500 17,500 Fuel Flowage 29,207 12,093 35,000 15,000 15,000 Float Plane 620 722 1,500 750 750 Tie Down 7,403 6,832 7,500 7,500 7,500 Landing 529,132 401,556 432,500 432,500 505,500 Plane Parking 5,725 9,018 5,000 10,000 10,000 Total Usage Fees 579,708 440,906 491,500 483,250 556,250 Rents and Leases Land 674,781 691,152 547,610 547,610 563,293 Total Rents and Leases 674,781 691,152 547,610 547,610 563,293 Miscellaneous Penalty and Interest 8,321 7,513 5,000 5,000 5,000 Interest on Investments 15,598 20,563 25,000 25,000 35,000 Other 12,666 9,769 10,000 10,000 10,000 Total Miscellaneous 36,585 37,845 40,000 40,000 50,000 Terminal Revenue Parking Fees 233,284 223,360 250,000 250,000 250,000 Rents and Leases 308,275 317,431 378,160 378,160 395,344 Penalty and Interest 1,728 3,989 4,500 4,500 4,500 Car Rental Commissions 156,497 171,096 175,000 175,000 180,000 Advertising Commissions 7,421 10,648 9,000 9,000 9,000 Miscellaneous 1,145 3,983 1,500 1,500 1,500 Total Terminal Revenue 708,350 730,507 818,160 818,160 840,344 Transfers In Airport Land Trust Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Transfers In 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Revenues 3,204,564 3,132,649 3,163,680 3,155,430 2,961,361 Expenditures Airport Terminal 578,256 578,328 630,109 2,200,875 616,753 Airport Airfield 1,640,517 1,631,810 1,731,779 1,757,779 1,750,795 Airport Administration 411,745 621,759 596,199 591,699 348,507 Airport Other Buildings and Areas 139,947 261,943 164,943 169,443 248,777 Airport Training Facility 40,295 36,125 38,474 38,474 38,474 Total Expenditures 2,810,760 3,129,965 3,161,504 4,758,270 3,003,306 Contribution To/(From) Fund Balance:393,804 2,684 2,176 (1,602,840) (41,945) Projected Lapse (6%)- - 116,255 116,254 116,016 Adjusted (Deficit)/Surplus 118,431 (1,486,586) 74,071 Beginning Fund Balance 4,682,502 5,076,306 5,380,197 5,078,990 3,592,404 Ending Fund Balance 5,076,306$ 5,078,990$ 5,498,628$ 3,592,404$ 3,666,475$ 17 City of Kenai Fiscal Year 2020 Operating Budget Fund: 019 - Senior Citizens Fund Department: Title III Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State Grants 208,654$ 198,577$ 203,626$ 203,626$ 205,831$ USDA Grant 22,415 18,958 15,000 15,000 20,000 Choice Waiver 220,419 195,012 200,000 135,000 125,000 KPB Grant 126,207 126,207 126,207 126,207 126,207 United Way 5,977 9,598 15,000 15,000 15,000 Rents and Leases 8,260 8,324 13,000 13,000 13,000 Donations 6,975 47,668 32,000 32,000 32,000 Donation - Senior Connection 7,677 50,000 50,000 50,000 50,000 Meal Donations 75,321 82,837 82,500 82,500 82,500 Transfer from General Fund - Operations 183,291 176,739 170,857 214,252 241,393 Transfer from General Fund - Capital - - 45,670 45,670 14,100 Other 306 (42) 300 300 300 Total Revenue 865,502 913,878 954,160 932,555 925,331 Expenditures Senior Citizen Access 153,905 157,065 157,364 157,364 191,256 Congregate Meals 218,035 220,661 285,370 287,995 261,266 Home Meals 176,509 205,562 209,875 210,750 223,664 Senior Transportation 67,803 80,087 81,234 81,234 104,527 Choice Waiver 249,525 250,503 244,671 244,671 165,893 Total Expenditures 865,777 913,878 978,514 982,014 946,606 Contribution To/(From) Fund Balance:(275) - (24,354) (49,459) (21,275) Projected Lapse (3%)- - 24,354 49,459 23,460 Adjusted (Deficit)/Surplus (275) - - - 2,185 Beginning Fund Balance 275 - - - - Ending Fund Balance -$ -$ -$ -$ 2,185$ 18 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 009 - Congregate Housing Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 1,780$ 1,153$ 1,866$ 1,866$ 2,865$ Rents and Leases 386,613 394,618 390,515 390,515 406,145 Interest on Investments 1,822 2,558 4,000 4,000 4,000 Miscellaneous 95 (300) - - - Total Revenues 390,310 398,029 396,381 396,381 413,010 Expenses 498,181 475,300 503,144 503,144 496,568 Net Income (loss)(107,871) (77,271) (106,763) (106,763) (83,558) Beginning Retained Earnings 474,257 506,832 539,893 570,007 482,690 Capital Asset Acquistions - - (121,000) (121,000) - Allocated to Capital Projects - - - - - Credit for Depreciation 140,446 140,446 140,446 140,446 140,446 Available Retained Earnings 506,832$ 570,007$ 452,576$ 482,690$ 539,578$ 19 City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Charge for Services -$ 1,903,581$ 2,148,495$ 2,148,495$ 2,436,200$ Participant premiums - 236,949 243,552 243,552 297,108 Transfer from Other Funds 117,637 - - - - Interest Earnings - 836 1,000 1,000 1,000 Total Revenues 117,637 2,141,366 2,393,047 2,393,047 2,734,308 Expenses - 2,010,581 2,391,806 2,391,806 2,733,336 Net Income (loss)117,637 130,785 1,241 1,241 972 Beginning Retained Earnings - 117,637 100,000 248,422 249,663 Available Retained Earnings 117,637$ 248,422$ 101,241$ 249,663$ 250,635$ 20 City of Kenai Fiscal Year 2020 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 59 - Equipment Replacement Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Rents & Leases 339,205$ 324,104$ 379,876$ 379,876$ 321,754$ Interest Earnings 4,770 7,006 20,000 20,000 14,000 Other income - - - 400,000 25,000 Total Revenues 343,975 331,110 399,876 799,876 360,754 Expenses - Depreciation 168,486 160,125 160,125 160,125 190,000 Net Income (loss)175,489 170,985 239,751 639,751 170,754 Transfers out - (400,000) - - - Total net income (loss) and transfers out 175,489 (229,015) 239,751 639,751 170,754 Beginning Net Position 2,981,827 3,157,316 2,928,301 2,928,301 3,568,052 Ending Net Position 3,157,316 2,928,301 3,168,052 3,568,052 3,738,806 Invested in Capital Assets (1,456,036) (1,754,920) (2,739,818) (2,594,366) (2,404,366) Unrestricted Net Position 1,701,280$ 1,173,381$ 428,234$ 973,686$ 1,334,440$ 21 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Land Sales Permanent Funds Original Manager Actual Actual Budget FY2019 Proposed FY2017 FY2018 FY2019 Projection FY2020 FUND 082-52 Airport Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 2,055,039$ 1,513,454$ 1,520,536$ 1,520,536$ 1,333,556$ Acct. 36645 Interest on Land Sale Contracts - - 10,000 10,000 10,000 Acct. 33640 Land Sales 362,731 9,234 - - - Total Revenue 2,417,770 1,522,688 1,530,536 1,530,536 1,343,556 Expenses Transfer to Airport Land System Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Contributions To/(From) Fund Balance 1,242,356 312,340 300,511 300,511 434,745 Beginning Fund Balance 23,037,659 24,280,015 24,600,203 24,592,355 24,892,866 Ending Fund Balance 24,280,015$ 24,592,355$ 24,900,714$ 24,892,866$ 25,327,611$ FUND 081-52 General Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 256,966$ 187,598$ 189,844$ 189,844$ 175,829$ Acct. 36645 Interest on Land Sale Contracts - - - - - Acct. 33640 Land Sales - 54,001 - - - Total Revenue 256,966 241,599 189,844 189,844 175,829 Expenses Transfer to General Fund 149,802 161,561 162,999 - 124,252 Contributions To/(From) Fund Balance 107,164 80,038 26,845 189,844 51,577 Beginning Fund Balance 2,942,775 3,049,939 2,965,790 3,129,977 3,319,821 Ending Fund Balance 3,049,939$ 3,129,977$ 2,992,635$ 3,319,821$ 3,371,398$ 22 City of Kenai Fiscal Year 2020 Operating Budget Fund 048 - Debt Service Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Bond Interest Subsidy 34,959 34,996 34,996 34,996 32,607 Transfer from General Fund 140,439 142,002 143,402 143,402 140,097 Total Revenue 175,398 176,998 178,398 178,398 172,704 Expenditures Parks, Recreation & Culture 175,398 176,998 178,398 178,398 172,704 Contributions To/From Fund Balance - - - - - Beginning Fund Balance - - - - - Ending Fund Balance -$ -$ -$ -$ -$ 23 City of Kenai Fiscal Year 2020 Capital Budget Summary of Projects and Funding Sources General Fund Airport Special Revenue Fund Water & Sewer Special Revenue Fund Senior Citizen Special Revenue Fund Library Improvements Capital Project Fund Funds Provided: General Fund Revenues/Reserves 14,100$ -$ -$ -$ -$ Airport Fund Revenues/Reserves - 800 - - - Water & Sewer Fund Revenues/Reserves - - 355,000 - - Transfer from Other Funds: General Fund - - - 14,000 50,000 Airport Special Revenue Fund - - - - - Water & Sewer Special Revenue Fund - - - - - Total Funds Provided 14,100 800 355,000 14,000 50,000 Funds Applied: 14,100 800 - - - - - - - 50,000 Kenai Recreation Center roof repair - - - - - Kenai Recreation Center grading repair - - - - - - - - - - - - 300,000 - - - - - - - - - - - - - - - - - - - 55,000 - - - - - - - - - - - - - - - - - to be identified - - - - - Municipal Park trail construction - - - - - Senior Center sound system upgrade Phase II - - - 14,000 - Total Funds Applied 14,100 800 355,000 14,000 50,000 Net Results From Operations -$ -$ -$ -$ -$ WWTP Aeration basin restore/coating SCADA system integration Hydrant mapping & installation Phase I City street sink hole repairs Other street repair and improvement projects WWTP Belt Press replacement Network equipment replacement Phase I Concrete sidewalk and retaining wall repair Airport Operations dry sprinkler system replacement Water & Sewer Utility masterplan and rate study WWTP Clarifier/Pump house coatings 24 City of Kenai Fiscal Year 2020 Capital Budget Summary of Projects and Funding Sources Kenai Recreation Center Improvements Capital Project Fund Airport Operations Facility Capital Project Fund Waste Water Treatment Plant Capital Project Fund Water & Sewer Capital Project Fund Municipal Roadway Improvements Capital Project Fund Trail Construction Capital Project Fund Total -$ -$ -$ -$ -$ -$ 14,100$ - - - - - - 800 - - - - - - 355,000 100,000 - - - 200,000 37,800 401,800 - 40,000 - - - - 40,000 - - 630,000 75,000 - - 705,000 100,000 40,000 630,000 75,000 200,000 37,800 1,516,700 - - - - - - 14,900 - - - - - - 50,000 50,000 - - - - - 50,000 50,000 - - - - - 50,000 - 40,000 - - - - 40,000 - - - - - - 300,000 - - 40,000 - - - 40,000 - - 500,000 - - - 500,000 - - 90,000 - - - 90,000 - - - - - - 55,000 - - - 75,000 - - 75,000 - - - - 71,000 - 71,000 - - - - - - - - - - - 129,000 129,000 - - - - - 37,800 37,800 - - - - - - 14,000 100,000 40,000 630,000 75,000 200,000 37,800 1,516,700 -$ -$ -$ -$ -$ -$ -$ 25 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Network Equip. Replacement Dan Castimore Various 001, 008 Finance 2 $14,900 0014182024 $14,100 0084642024 $800 Purchase and install prior to July 2020. Replace network equipment that is no longer supported by the vendor. This includes network switches that are 10 years old, and wireless equipment that is no longer compatible with the wireless controller. None. 26 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Concrete Sidewalk & Retaining Scott Curtin Library Impr. Capital Proj Fund 218 Buildings 1 $50,000 GF $50,000 Design - 1st quarter FY20 Construction - dependent on block availability The existing CMU wall at the Library was not replaced with the Library Renovation Project 10 years ago. It is failing and does not look good with the renovated portions of the Library. Additionally, there are several cracked sidewalks that should be replaced for safety reasons. Demolition and replacement of affected areas, installation of new concrete sidewalks and new landscape retaining wall blocking. 27 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Kenai Rec. Center Roof Repair Scott Curtin Kenai Recreation Center CP 119 Recreation 2 $50,000 GF $50,000 Repair 1st Quarter FY20 The Recreation Center roof has portions that are beyond their intended useful life. Areas within the Rec Center are experiencing some minor roof leaking. This project will provide for a Hot Mop and top cap layer to seal up leaking areas. 28 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Kenai Rec. Center Grading Scott Curtin Kenai Recreation Center CP 119 Recreation 3 $50,000 GF $50,000 Design / Construction - 1st quarter FY20 The grading at the Recreation Center does not currently provide enough positive drainage away from the structure. Snow & Rain have begun to deteriorate the exterior siding, as well as interior drywall and tile within the affected area. This project will regrade the property to drain away from the building down to a new storm detention basin. 29 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Replace Dry Sprinkler Scott Curtin Airport Ops Capital Proj Fund 328 Airport - Kenai Ops Facility 1 $40,000 Airport SR $40,000 Seventeen year old Dry Sprinkler piping is corroding and again starting to develop leaks. When leaks occur, the dry system could activate and fill with water. During freezing conditions, pipes could freeze and cause extensive damage. Three bays are involved: Apparatus bay, wash bay and sand storage bay. Replace dry sprinkler piping, and reroute under ceiling with galvanized pipe. Failure of dry sprinkler system will cause system discharge and damage to the facility and its contents. 30 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Update Master Plan/Rate Study Scott Curtin Water & Sewer SR Fund 010 Water, Sewer & WWTP 2 $300,000 0104674531 $150,000 0104664531 $75,000 0104654531 $75,000 RFP - 1st quarter FY20 The current Master Plan was completed in 2003/2004. There have been numerous changes to permitting requirements, personnel changes, equipment failures, etc. in that time. The rate increases that resulted from that plan were implemented and we have not had a rate increase for two years. Costs split between water and sewer are $75,000 each. The direction this report will provide will prevent funds from being expended on lower priority items. Master Plans should be updated every 10 years. This will provide a direction for future improvements and expenditures. 31 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Clarifier/Pump Housing Coatings Scott Curtin WWTP CP Fund 625 WWTP 5 $40,000 WWTP $40,000 Seasonal work. Begin 1st quarter FY20 Complete 4th quarter FY20 Exteriors of Clarifier Tanks are raw concrete that have weathered for 40 years. Areas of concrete have exposed aggregate, doors and frames are extremely rusted due to the salt air. This project will provide an exterior coating to both clarifier's and pump house and replacement of exterior doors. Most of the work will be completed by staff. Replacement of three metal doors, frames and hardware. Patching of rough concrete areas. Application of topcoat. This will be rolled on product and will look similar to a rough stucco. Staff will work on as work/staff availability permits. This is appropriate long term maintenance. It will provide a noticeable face lift to the facility where the public will notice the property is being cared for. 32 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Belt Filter Press Roscoe Barrett WWTP CP Fund 625 WWTP 1 $500,000 WWTP $500,000 Design - 1st quarter FY20 Invitation to bid - 3rd quarter FY20 Construction - 4th quarter FY20 The belt press was installed during the last upgrade in 1981, for the past 15 years it has remained serviceable only by the extraordinary effort of the crew. This press is no longer in production and it has become difficult to find replacement parts. Some parts have been fabricated to remain operational. Add a screw press to the existing system utilizing the same sludge piping, polymer injection and drainage system currently in place. Estimates of design and improvements would cost approximately $500.000.00. The belt press is the last stage of wastewater treatment and a very critical component in operational control. If for any reason this process through either a major breakdown or the possibility of a long delay in obtaining parts our process could be compromised to the point of failing our permit. 33 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Aeration Basin Restore/Coating Scott Curtin WWTP CP Fund 625 WWTP 4 $90,000 WWTP $90,000 Design - 1st quarter FY20 Construction - 4th quarter FY20 The WWTP has four, 130,000 gallon aeration basins. Each basin is approximately 76' x 20' x12'. The basins are 40+ years old, and they have some concrete cracking, as well as some concrete scouring at the surface from years of the basins churning. Basins need sand blasting, epoxy fill of cracks, patching of scoured areas and epoxy coating. Phase I will complete one of the four basins. Completion of this work will allow the basins to continue to operate for another 30 years. 34 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: SCADA Integration Scott Curtin Water & Sewer SR Fund 621 Water/Sewer/WWTP 3 $55,000 0104654531 $12,500 0104664531 $12,500 0104674531 $30,000 Phase I to be completed in FY2020. The City has an existing Wonderware SCADA system operational. The Water/Sewer side is extensively more setup than the WWTP. The only items tying into SCADA at the WWTP are level indicators for the hypochlorite and bisulfite tanks. There are numerous other items that could be tied in, including the new blowers and DO probes. Requesting we spread costs out over the next few years to coincide with new equipment replacing old. Water/Sewer: Continue with an annual $25K/year service contract for SCADA Integration split between Water and Sewer for the next three years. Implementation of this system will gain insight and oversight into our operational processes which will provide opportunities for efficiency and lower operating costs. 35 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Hydrant Mapping & Installation Scott Curtin Water & Sewer CP Fund 621 Water 6 $150,000 W&S SR $150,000 Mapping - 1st quarter FY20 Installation - 4th quarter FY20 Correctly identify all hydrants within city limits and map to GIS. Provide for installation of hydrants at dead ends of main runs to allow for sufficient flushing. This project will provide for the verification of all hydrants, their locations and ownership, placement onto GIS by Gary, our GIS integrator, and some installation of new hydrants in areas identified. This will allow for a greater control and understanding of our water system. Provide a more thorough flushing of the distribution system. Areas of the City which may continue to be underserved by hydrants at risk of fire. Risk of allowing some areas of distribution system seeing low flows having lower quality water due to inability to thoroughly flush mains. 36 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: City Street Sink Hole Repairs Scott Curtin Municipal Roadway Imp. CP 755 N/A 1 $71,000 Gen. Fund $71,000 FY20 Construction season. Public Works has identified several City streets which have been negatively impacted by sinkholes and other settling. Cause of the problems varies from failing storm drains to non-suitable materials being present in road base. This project will excavate and repair broken storm drains, excavate and remove non-suitable materials, and repave impacted areas. City streets identified for work include Aliak, Highbush, Water Gate & Pirate, Water Gate & Schooner, Water Gate & Setnet, Fourth & Haller, Eagle Rock & Tern, and Silver Salmon. Repair will mitigate future damage and expense associated with failures. 37 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Streets Improvements/Repairs Scott Curtin Municipal Roadway Imp. CP 755 Streets 2 $129,000 General $129,000 FY2020 Construction season after project identification. Funds to be available for road and curb repairs after project prioritization. N/A 38 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Municipal Park Trail Const. Bob Frates Trail Construction CP Fund 751 N/A 1 $37,800 Gen. Fund $37,800 Construction in summer 2019. Project establishes trails in close proximity of existing use areas (ballpark, poetry trail, and playground area). Project will include construction of 0.40 miles of new trail, surveying for future trail construction, and bridge design work for future trail construction. Future operational costs for the trail work would be minimal and are estimated to be less than $1,000. 39 City of Kenai Fiscal Year 2020 Capital Budget Project Name: ___________________________ Project Manager: ____________________________ Fund: ___________________________ Fund Number: ____________________________ Department: ___________________________ Department Priority:____________________________ Estimated Cost:__________________________ Proposed Funding Source(s): Source 1: ___________ Amount: ___________ Source 2: ___________ Amount: ___________ Source 3: ___________ Amount: ___________ Source 4: ___________ Amount: ___________ Source 5: ___________ Amount: ___________ Project Status: New Continuation of proposed project Supplemental funding to existing project Proposed Project Schedule: Project Description: Anticipated Impact on Operating Budget: Senior Center Sound Phase II Dan Castimore Senior Citizen Fund 019 Access 1 $14,000 GF $14,000 Install equipment prior to July 2020 This project would provide additional microphones and microphone stands, provide a VOIP card to allow for teleconferences using the sound system, and complete the control system. Currently there are no controls for the sound system in the game room, which limits the usefulness of this system. In the initial project, cabling for wired microphones was installed, but no equipment was purchased. This will allow us to better accommodate our seniors who have hearing or visual impairments, thus improving their quality of life. With this new addition, we will increase our add on options for Center rentals making us more competitive with modern technology in a tight market. 40 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 8, 2019 SUBJECT: Recommended Amendment to Ordinance 3063-2019 The purpose of this memo is to recommend amendments to the FY2020 Draft Budget and FY2020 Budget adoption ordinance, Ordinance 3063-2019, and the basis for each recommendation. New summary pages for the all funds, after incorporating the changes, are attached for your review. Budget Document Amendments General Fund Revenues: Other Animal Shelter Fees $42,000 Expenditures: Police Transportation $26,000 Animal Control Operating Supplies 1,500 Professional Services 3,500 $31,000 Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the General Fund appropriation amount in Section 2 to be $16,551,301 and amend the Total All Funds appropriation amount to be $30,446,176. Proposed changes to the Police – Transportation account is recommended to fund police academy training for two officers. In the past, the State of Alaska has paid the costs for new 41 Page 2 of 3 Ordinance 3063-2019 officers to attend the Alaska State Trooper academy in Sitka. Budget cuts in recent years has forced the Alaska Police Standards Council to begin charging local agencies approximately $13,000 per attendee. The department currently has three open position and anticipates at least two will be new officers requiring attendance to the Sitka academy. Proposed changes to Animal Control are the result of a proposal to contract with the City of Soldotna to perform animal control shelter services. The City will accept and shelter animals from Soldotna Animal Control in exchange for a minimum annual fee of $42,000 for up to one-hundred fifty (150) animals and a fee of $384 per animal over one-hundred fifty (150). Budget Document Amendments Water & Sewer Fund Expenditures: Water Professional Services ($ 87,500) Transfer to Other Funds 87,500 - Sewer Professional Services ($ 87,500) Transfer to Other Funds 87,500 - Waste Water Treatment Plant Professional Services ($180,000) Transfer to Other Funds 180,000 - Total Water & Sewer Fund $ - Water & Sewer Improvements Capital Project Fund Revenues: Transfer from Other Funds $175,000 Expenditures: Water & Sewer Utility masterplan and rate study $150,000 SCADA system integration 25,000 Total Expenditures $175,000 Wastewater Treatment Plan Improvements Capital Project Fund Revenues: Transfer from Other Funds $180,000 Expenditures: Water & Sewer Utility masterplan and rate study $150,000 SCADA system integration 30,000 Total Expenditures $180,000 Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the Water & Sewer Improvements Capital Project Fund appropriation amount in Section 2 to be $250,000, amend the Wastewater Treatment Plant Improvements Capital 42 Page 3 of 3 Ordinance 3063-2019 Project Fund appropriation amount to be $810,000 and amend the Total All Funds appropriation amount to be $30,801,176. The administration is recommending moving the expenditures for the Water & Sewer Utility masterplan and rate study from the utility’s operating budget to the capital budget as the project is likely to last beyond a single fiscal year and budgets for capital project funds are project length rather than limited to a single fiscal year. Overall spending does not increase but total expenditures do because the transfer from the utility’s operating fund is an expenditure of funds and the spending of funds in the capital project is also an expenditure. Budget Ordinance Amendments The following clerical amendments are needed to Ordinance 3063-2019. Amend the Class Title of the Human Resource Director* to delete the underline in Section 5. The underline should not have been included in the ordinance and should be removed. Amend the Range of the Janitor from a Range 2.4 to a Range 2.3 in Section 5. This proposed amendment to the Janitor Position pay range was inadvertently omitted from the Ordinance at introduction. With the recent vacancy in the position, the administration took an opportunity to regrade the position and believe it is better classified at range 2.3. Personnel amounts for the Senior Citizen Fund represent the position at a range 2.3 as well. Your support for these amendment is respectfully requested. attachments 43 City of Kenai Fiscal Year 2020 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection FY2017 FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 TAXABLE VALUES (000'S)868,724$ 871,076$ 872,108$ 871,829$ 892,023$ 905,020$ 918,839$ MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 3,919,797 3,868,445 3,855,798 3,881,792 3,940,692 4,008,100 4,067,011 Sales Tax 6,715,501 6,854,253 7,124,915 7,207,189 7,387,175 7,572,053 7,761,354 Total Property & Sales Taxes 10,635,298 10,722,698 10,980,713 11,088,981 11,327,867 11,580,153 11,828,365 Intergovernmental Revenue: PERS Funding 288,137 218,726 386,406 386,406 470,553 484,670 499,210 Community Assistance 278,232 250,852 223,258 210,345 171,001 171,001 171,001 Fish Tax 165,087 118,543 165,000 130,000 130,000 133,900 137,917 Other 83,990 101,120 58,000 96,740 113,300 118,965 124,913 Total State/Federal Revenue 815,446 689,241 832,664 823,491 884,854 908,536 933,041 Other Revenue Licenses and Permits 48,557 93,863 63,500 63,000 105,500 108,665 111,925 Ambulance Fees 419,940 443,544 425,000 450,000 500,000 515,000 530,450 Interest 35,762 45,801 100,000 150,000 180,000 180,000 180,000 Other 613,358 585,268 736,541 683,256 606,346 624,536 643,272 Total Other Revenue 1,117,617 1,168,476 1,325,041 1,346,256 1,391,846 1,428,201 1,465,647 Total Revenues 12,568,361 12,580,415 13,138,418 13,258,728 13,604,567 13,916,890 14,227,053 Transfer From Other Funds Charges to other funds 1,494,200 1,542,390 1,574,200 1,574,200 1,596,000 1,643,880 1,693,196 Capital Projects / Special Revenue 124,303 - 283,221 283,221 50,000 50,000 50,000 Enterprise 34,000 400,000 - - - - - Trust Fund 149,802 161,561 162,999 - 124,252 126,737 129,272 Total Transfers 1,802,305 2,103,951 2,020,420 1,857,421 1,770,252 1,820,617 1,872,468 Total Revenues and Transfers 14,370,666 14,684,366 15,158,838 15,116,149 15,374,819 15,737,507 16,099,521 EXPENDITURES/APPROPRIATIONS General Government 2,682,321 2,347,926 3,237,629 3,250,379 3,392,394 3,464,948 3,534,247 Public Safety 6,679,790 7,075,417 7,559,066 7,559,066 7,733,840 7,888,517 8,046,287 Public Works 2,148,432 2,270,210 2,492,669 2,496,246 2,399,834 2,447,831 2,496,788 Parks, Recreation & Cultural 1,984,887 2,134,422 2,254,234 2,298,653 2,244,028 2,288,909 2,334,687 Total Operating Expenditures 13,495,430 13,827,975 15,543,598 15,604,344 15,770,096 16,090,205 16,412,009 Transfers or Non-Operating 745,130 833,913 622,429 622,429 781,205 640,684 652,405 Total Expenditures/Appropriations 14,240,560 14,661,888 16,166,027 16,226,773 16,551,301 16,730,889 17,064,414 Total Surplus (Deficit)130,106 22,478 (1,007,189) (1,110,624) (1,176,482) (993,382) (964,893) Projected Lapse - 5%- - 777,180 780,217 788,505 804,510 820,600 Adjusted Surplus (Deficit)130,106 22,478 (230,009) (330,407) (387,977) (188,872) (144,293) Beginning Fund Balance 10,418,100 10,548,206 10,463,198 10,570,684 10,240,277 9,852,300 9,663,428 Ending Fund Balance 10,548,206 10,570,684 10,233,189 10,240,277 9,852,300 9,663,428 9,519,135 Restricted (588,937) (682,068) (700,599) (718,068) (754,068) (790,068) (826,068) Committed (409,746) (6,976,762) (7,117,565) (7,164,452) (6,835,109) (6,614,037) (6,169,000) Assigned (1,409,610) (2,416,658) (2,415,025) (2,357,757) (2,263,123) (2,259,323) (2,524,067) Unassigned Fund Balance 8,139,913$ 495,196$ -$ -$ -$ -$ -$ 44 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 2,688$ 1,546$ 4,169$ 4,169$ 4,637$ Usage Fees Beach Parking 182,853 174,613 175,000 118,307 146,460 Beach Camping 238,752 210,269 225,000 129,938 170,100 Dock Launch & Park 128,109 111,528 115,000 91,608 101,600 Dock Parking Only 14,807 12,010 15,000 9,547 10,800 Participant Drop-off Fee 10,717 7,481 8,000 5,943 6,715 Total Usage Fees 575,238 515,901 538,000 355,343 435,675 Miscellaneous Revenues Investment earnings 671 1,522 750 750 750 Other (3,680) 674 (1,500) (3,100) (3,500) Total Miscellaneous Revenues (3,009) 2,196 (750) (2,350) (2,750) Total Revenue 574,917 519,643 541,419 357,162 437,562 Expenditures Public Safety 116,875 114,542 96,686 96,686 88,051 Streets 53,068 32,938 61,066 61,066 55,235 Boating Facility 72,668 56,380 72,137 72,137 64,161 Parks, Recreation & Beautification 268,686 225,445 275,224 278,712 241,588 Total Expenditures 511,297 429,305 505,113 508,601 449,035 Transfers - General Fund - - 50,000 50,000 50,000 Total Expenditures & Transfers 511,297 429,305 555,113 558,601 499,035 Contribution To/(From) Fund Balance:63,620 90,338 (13,694) (201,439) (61,473) Projected Lapse - - 21,151 77,167 18,722 Adjusted (Deficit)/Surplus 63,620 90,338 7,457 (124,272) (42,751) Beginning Fund Balance 139,936 203,556 209,896 293,894 169,622 Ending Fund Balance 203,556$ 293,894$ 217,353$ 169,622$ 126,871$ 45 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 2,688$ 1,546$ 4,169$ 4,169$ 4,637$ Usage Fees Beach Parking 182,853 174,613 175,000 118,307 146,460 Beach Camping 238,752 210,269 225,000 129,938 170,100 Dock Launch & Park 128,109 111,528 115,000 91,608 101,600 Dock Parking Only 14,807 12,010 15,000 9,547 10,800 Participant Drop-off Fee 10,717 7,481 8,000 5,943 6,715 Total Usage Fees 575,238 515,901 538,000 355,343 435,675 Miscellaneous Revenues Investment earnings 671 1,522 750 750 750 Other (3,680) 674 (1,500) (3,100) (3,500) Total Miscellaneous Revenues (3,009) 2,196 (750) (2,350) (2,750) Total Revenue 574,917 519,643 541,419 357,162 437,562 Expenditures Public Safety 116,875 114,542 96,686 96,686 88,051 Streets 53,068 32,938 61,066 61,066 55,235 Boating Facility 72,668 56,380 72,137 72,137 64,161 Parks, Recreation & Beautification 268,686 225,445 275,224 278,712 241,588 Total Expenditures 511,297 429,305 505,113 508,601 449,035 Transfers - General Fund - - 50,000 50,000 50,000 Total Expenditures & Transfers 511,297 429,305 555,113 558,601 499,035 Contribution To/(From) Fund Balance:63,620 90,338 (13,694) (201,439) (61,473) Projected Lapse - - 21,151 77,167 18,722 Adjusted (Deficit)/Surplus 63,620 90,338 7,457 (124,272) (42,751) Beginning Fund Balance 139,936 203,556 209,896 293,894 169,622 Ending Fund Balance 203,556$ 293,894$ 217,353$ 169,622$ 126,871$ 46 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 010 - Water and Sewer Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 23,142$ 17,347$ 33,668$ 33,668$ 42,205$ Usage Fees Service Hook-up 2,205 2,608 3,927 2,945 3,063 Residential Water 791,580 830,102 832,279 839,251 872,821 Commercial Water 315,494 327,519 350,141 335,700 349,128 Residential Sewer 1,170,897 1,182,083 1,182,299 1,197,528 1,245,429 Commercial Sewer 445,805 453,930 494,807 466,251 484,901 Total Usage Fees 2,725,981 2,796,242 2,863,453 2,841,675 2,955,342 Miscellaneous Revenues Penalty and Interest 35,839 36,959 43,250 40,000 41,600 Interest Earnings 5,117 11,775 16,000 12,000 12,480 Other 4,361 24,775 3,000 3,000 3,000 Total Miscellaneous Revenues 45,317 73,509 62,250 55,000 57,080 Total Revenues 2,794,440 2,887,098 2,959,371 2,930,343 3,054,627 Expenditures Water Department 719,328 841,231 949,971 967,771 1,037,087 Sewer Department 723,136 456,195 499,384 499,384 594,826 Wastewater Treatment Plant Department 987,096 1,116,312 1,208,057 1,208,057 2,055,544 Total Expenditures 2,429,560 2,413,738 2,657,412 2,675,212 3,687,457 Contribution To/(From) Fund Balance:364,880 473,360 301,959 255,131 (632,830) Projected Lapse (6%)- - 136,903 137,971 140,997 Adjusted (Deficit)/Surplus 438,862 393,102 (491,833) Beginning Fund Balance 1,705,552 2,070,432 2,633,097 2,543,792 2,936,894 Ending Fund Balance 2,070,432$ 2,543,792$ 3,071,959$ 2,936,894$ 2,445,061$ 47 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 - Airport Fund Department: Airport Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State & Federal Grants 29,726$ 21,891$ 36,385$ 36,385$ 42,663$ Usage Fees Fuel Sales 7,621 10,685 10,000 17,500 17,500 Fuel Flowage 29,207 12,093 35,000 15,000 15,000 Float Plane 620 722 1,500 750 750 Tie Down 7,403 6,832 7,500 7,500 7,500 Landing 529,132 401,556 432,500 432,500 505,500 Plane Parking 5,725 9,018 5,000 10,000 10,000 Total Usage Fees 579,708 440,906 491,500 483,250 556,250 Rents and Leases Land 674,781 691,152 547,610 547,610 563,293 Total Rents and Leases 674,781 691,152 547,610 547,610 563,293 Miscellaneous Penalty and Interest 8,321 7,513 5,000 5,000 5,000 Interest on Investments 15,598 20,563 25,000 25,000 35,000 Other 12,666 9,769 10,000 10,000 10,000 Total Miscellaneous 36,585 37,845 40,000 40,000 50,000 Terminal Revenue Parking Fees 233,284 223,360 250,000 250,000 250,000 Rents and Leases 308,275 317,431 378,160 378,160 395,344 Penalty and Interest 1,728 3,989 4,500 4,500 4,500 Car Rental Commissions 156,497 171,096 175,000 175,000 180,000 Advertising Commissions 7,421 10,648 9,000 9,000 9,000 Miscellaneous 1,145 3,983 1,500 1,500 1,500 Total Terminal Revenue 708,350 730,507 818,160 818,160 840,344 Transfers In Airport Land Trust Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Transfers In 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Revenues 3,204,564 3,132,649 3,163,680 3,155,430 2,961,361 Expenditures Airport Terminal 578,256 578,328 630,109 2,200,875 616,753 Airport Airfield 1,640,517 1,631,810 1,731,779 1,757,779 1,750,795 Airport Administration 411,745 621,759 596,199 591,699 348,507 Airport Other Buildings and Areas 139,947 261,943 164,943 169,443 248,777 Airport Training Facility 40,295 36,125 38,474 38,474 38,474 Total Expenditures 2,810,760 3,129,965 3,161,504 4,758,270 3,003,306 Contribution To/(From) Fund Balance:393,804 2,684 2,176 (1,602,840) (41,945) Projected Lapse (6%)- - 116,255 116,254 116,016 Adjusted (Deficit)/Surplus 118,431 (1,486,586) 74,071 Beginning Fund Balance 4,682,502 5,076,306 5,380,197 5,078,990 3,592,404 Ending Fund Balance 5,076,306$ 5,078,990$ 5,498,628$ 3,592,404$ 3,666,475$ 48 City of Kenai Fiscal Year 2020 Operating Budget Fund: 019 - Senior Citizens Fund Department: Title III Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State Grants 208,654$ 198,577$ 203,626$ 203,626$ 205,831$ USDA Grant 22,415 18,958 15,000 15,000 20,000 Choice Waiver 220,419 195,012 200,000 135,000 125,000 KPB Grant 126,207 126,207 126,207 126,207 126,207 United Way 5,977 9,598 15,000 15,000 15,000 Rents and Leases 8,260 8,324 13,000 13,000 13,000 Donations 6,975 47,668 32,000 32,000 32,000 Donation - Senior Connection 7,677 50,000 50,000 50,000 50,000 Meal Donations 75,321 82,837 82,500 82,500 82,500 Transfer from General Fund - Operations 183,291 176,739 170,857 214,252 239,208 Transfer from General Fund - Capital - - 45,670 45,670 14,100 Other 306 (42) 300 300 300 Total Revenue 865,502 913,878 954,160 932,555 923,146 Expenditures Senior Citizen Access 153,905 157,065 157,364 157,364 191,256 Congregate Meals 218,035 220,661 285,370 287,995 261,266 Home Meals 176,509 205,562 209,875 210,750 223,664 Senior Transportation 67,803 80,087 81,234 81,234 104,527 Choice Waiver 249,525 250,503 244,671 244,671 165,893 Total Expenditures 865,777 913,878 978,514 982,014 946,606 Contribution To/(From) Fund Balance:(275) - (24,354) (49,459) (23,460) Projected Lapse (3%)- - 24,354 49,459 23,460 Adjusted (Deficit)/Surplus (275) - - - - Beginning Fund Balance 275 - - - - Ending Fund Balance -$ -$ -$ -$ -$ 49 City of Kenai Fiscal Year 2020 Operating Budget Fund 048 - Debt Service Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Bond Interest Subsidy 34,959 34,996 34,996 34,996 32,607 Transfer from General Fund 140,439 142,002 143,402 143,402 140,097 Total Revenue 175,398 176,998 178,398 178,398 172,704 Expenditures Parks, Recreation & Culture 175,398 176,998 178,398 178,398 172,704 Contributions To/From Fund Balance - - - - - Beginning Fund Balance - - - - - Ending Fund Balance -$ -$ -$ -$ -$ 50 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Land Sales Permanent Funds Original Manager Actual Actual Budget FY2019 Proposed FY2017 FY2018 FY2019 Projection FY2020 FUND 082-52 Airport Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 2,055,039$ 1,513,454$ 1,520,536$ 1,520,536$ 1,333,556$ Acct. 36645 Interest on Land Sale Contracts - - 10,000 10,000 10,000 Acct. 33640 Land Sales 362,731 9,234 - - - Total Revenue 2,417,770 1,522,688 1,530,536 1,530,536 1,343,556 Expenses Transfer to Airport Land System Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Contributions To/(From) Fund Balance 1,242,356 312,340 300,511 300,511 434,745 Beginning Fund Balance 23,037,659 24,280,015 24,600,203 24,592,355 24,892,866 Ending Fund Balance 24,280,015$ 24,592,355$ 24,900,714$ 24,892,866$ 25,327,611$ FUND 081-52 General Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings 256,966$ 187,598$ 189,844$ 189,844$ 175,829$ Acct. 36645 Interest on Land Sale Contracts - - - - - Acct. 33640 Land Sales - 54,001 - - - Total Revenue 256,966 241,599 189,844 189,844 175,829 Expenses Transfer to General Fund 149,802 161,561 162,999 162,999 124,252 Contributions To/(From) Fund Balance 107,164 80,038 26,845 26,845 51,577 Beginning Fund Balance 2,942,775 3,049,939 2,965,790 3,129,977 3,156,822 Ending Fund Balance 3,049,939$ 3,129,977$ 2,992,635$ 3,156,822$ 3,208,399$ 51 City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Charge for Services -$ 1,903,581$ 2,148,495$ 2,148,495$ 2,436,200$ Participant premiums - 236,949 243,552 243,552 297,108 Transfer from Other Funds 117,637 - - - - Interest Earnings - 836 1,000 1,000 1,000 Total Revenues 117,637 2,141,366 2,393,047 2,393,047 2,734,308 Expenses - 2,010,581 2,391,806 2,391,806 2,733,336 Net Income (loss)117,637 130,785 1,241 1,241 972 Beginning Retained Earnings - 117,637 100,000 248,422 249,663 Available Retained Earnings 117,637$ 248,422$ 101,241$ 249,663$ 250,635$ 52 City of Kenai Fiscal Year 2020 Operating Budget Fund: 061 - Equipment Replacement Fund Department: 59 - Equipment Replacement Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Rents & Leases 339,205$ 324,104$ 379,876$ 379,876$ 321,754$ Interest Earnings 4,770 7,006 20,000 20,000 14,000 Other income - - - 400,000 25,000 Total Revenues 343,975 331,110 399,876 799,876 360,754 Expenses - Depreciation - - 160,125 160,125 190,000 Net Income (loss)343,975 331,110 239,751 639,751 170,754 Transfers out - (160,125) - - - Total net income (loss) and transfers out 343,975 170,985 239,751 639,751 170,754 Beginning Net Position 2,981,827 3,325,802 3,496,787 3,496,787 4,136,538 Ending Net Position 3,325,802 3,496,787 3,736,538 4,136,538 4,307,292 Invested in Capital Assets (1,456,036) (1,754,920) (2,739,818) (2,594,366) (2,404,366) Unrestricted Net Position 1,869,766$ 1,741,867$ 996,720$ 1,542,172$ 1,902,926$ 53 City of Kenai Fiscal Year 2020 Operating Budget Budget Projection Fund: 009 - Congregate Housing Fund Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues PERS Grant 1,780$ 1,153$ 1,866$ 1,866$ 2,865$ Rents and Leases 386,613 394,618 390,515 390,515 406,145 Interest on Investments 1,822 2,558 4,000 4,000 4,000 Miscellaneous 95 (300) - - - Total Revenues 390,310 398,029 396,381 396,381 413,010 Expenses 498,181 475,300 503,144 503,144 496,568 Net Income (loss)(107,871) (77,271) (106,763) (106,763) (83,558) Beginning Retained Earnings 474,257 506,832 539,893 570,007 482,690 Capital Asset Acquistions - - (121,000) (121,000) - Allocated to Capital Projects - - - - - Credit for Depreciation 140,446 140,446 140,446 140,446 140,446 Available Retained Earnings 506,832$ 570,007$ 452,576$ 482,690$ 539,578$ 54 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3064-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $339.90 IN THE GENERAL FUND – POLICE DEPARTMENT FOR STATE TRAFFIC GRANT OVERTIME EXPENDITURES. WHEREAS, the Kenai Police Department joins with other law enforcement agencies statewide to support Alaska Highway Safety Office (AHSO) traffic safety programs to reduce fatalities and injuries on roadways; and, WHEREAS, AHSO traffic-related overtime funds require no local match and allow the department to provide specific traffic safety patrols; and, WHEREAS, actual AHSO overtime expenditures for traffic safety patrols totaled $339.90 from July 1, 2018 through April 15, 2019; and, WHEREAS, overtime for these additional traffic safety patrols was not budgeted and the department is requesting appropriation into overtime budget equal to the amount of AHSO grant funding received. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept these grant funds from the State of Alaska in the amount of $339.90 and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 2. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues – State Grants - Police $339.90 Increase Appropriations – Police - Overtime $339.90 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. 55 Ordinance No. 3064-2019 Page 2 of 2 _____________________________________________________________________________________ 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 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________________ Introduced: May 1, 2019 Enacted: May 15, 2019 Effective: May 15, 2019 56 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: April 16, 2019 SUBJECT: Ordinance No. 3064-2019 - Ordinance accepting and appropriating Alaska Highway Safety Office grant funds for Police Overtime ______________________________________________________________________ The Kenai Police Department continues to participate in traffic enforcement overtime patrols, reimbursed to the City of Kenai through a grant by the Alaska Highway Safety Office (AHSO). These overtime patrols are not budgeted in the FY19 budget. Actual overtime costs for traffic enforcement during fiscal year FY19 to date, which qualified for AHSO reimbursement, was $339.90. AHSO – overtime reimbursements are deposited into the general fund. I respectfully request consideration of the ordinance accepting and appropriating the grant amount to the police overtime account. 57 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3065-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A VOLUNTEER FIRE ASSISTANCE (VFA) GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE FOREST SERVICE PASSED THROUGH THE STATE OF ALASKA DIVISION OF FORESTRY FOR THE PURCHASE OF FORESTRY FIREFIGHTING EQUIPMENT. WHEREAS, Kenai Fire Department (KFD) personnel currently use structural firefighting ensemble to respond to wildland fire incidents, which causes increased stress and fatigue while engaged in firefighting activities; and WHEREAS, grant funding will be used to purchase pants and shirts for KFD personnel, to be used while responding to Forest Fire Incidents; and WHEREAS, the State of Alaska Division of Forestry has provided a grant in the amount of $7,467.97 to assist the City of Kenai Fire Department in purchasing forestry firefighting gear; and, WHEREAS, appropriation of this grant for its intended purpose is in the best interest of the City and its residents. 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 United States Department of Agriculture Forest Service passed through the State of Alaska Division of Forestry in the amount of $7,467.97 for the purchase of forestry firefighting equipment and is authorized to execute a grant agreement and to expend the grant funds to fulfill the purpose and intent of this Ordinance. Section 2. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues – Federal Grants – Fire $7,467.97 Increase Appropriations – Fire – Small Tools/Minor Equipment $7,467.97 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 58 Ordinance No. 3065-2019 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________________ Introduced: May 1st, 2019 Enacted: May 15th, 2019 Effective: June 14th, 2019 59 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Tony Prior, Battalion Chief DATE: April 18, 2019 SUBJECT: Ordinance No. 3065-2019 – Accepting and Appropriating a Volunteer Fire Assistance Grant for the Purchase of Forestry Firefighting Equipment ____________________________________________________________________________ The City of Kenai Fire Department has been awarded a Volunteer Fire Assistance (VFA) grant in the amount of $7,467.97 for the purchase of forestry firefighting gear from the United States Department of Agriculture Forest Service through State of Alaska Division of Forestry. The grant will fund the purchase of forestry firefighting pants and shirts for our personnel, which will enable them to respond to forestry fires in gear other than structural turn outs. Your consideration is appreciated. 60 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019-28 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE WATER AND SEWER FUND FOR APPRAISAL COSTS RELATED TO THE PURCHASE OF WELL RADIUS PROPERTY FOR THE CITY’S PUBLIC WATER SYSTEM. WHEREAS, the parcel adjacent to the Beaver Creek Subdivision located at the intersection of the Kenai Spur Highway and Shotgun Drive, described as Alaska State Land Survey 2013-49 Tract A and recorded as Plat 2017-8, Kenai Recording District and located in Section 36, Township 6 North, Range 11 West, Seward Meridian, will be used for well site and watershed protection; and, WHEREAS, on August 31, 2010, the City of Kenai applied to purchase the property from the State of Alaska Department of Natural Resources, Division of Mining, Land, and Water; and, WHEREAS, on October 29, 2012, pursuant to Alaska Statute 38.05, the State of Alaska Department of Natural Resources, Division of Mining, Land, and Water issued a Final Finding and Decision allowing the property to be sold through a non-competitive sale to the City subject to a reversionary interest by the State should the property cease to be used for public and charitable purposes; and, WHEREAS, on March 27, 2014, pursuant to Alaska Statute 38.05, the State of Alaska Department of Natural Resources, Division of Mining, Land, and Water issued a First Amended Final Finding and Decision to address Boundbrook Drive and the dedication of a 30-foot right-of-way; and, WHEREAS, on February 25, 2019, the Department of Natural Resources, Division of Mining, Land, and Water issued a Second Final Finding and Decision to address the School Trust Land, an appraisal valuation date, and fee; and, WHEREAS, on February 25, 2019, the Alaska Department of Natural Resources, Division of Mining, Land, and Water gave notice to the City of Kenai to proceed to appraisal following the State requirements; and, WHEREAS, after requesting three quotes for an appraisal, the City selected MacSwain Associates, LLC, based upon their cost estimate of the appraisal of $7,000; and, WHEREAS, sufficient funds are available for transfer within the Water and Sewer Fund for the purchase of these services. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That the following budget transfer be made: 61 Resolution No. 2019-28 Page 2 of 2 Water & Sewer Fund From: 010-465-4999 Water, Contingency $7,000 To: 010-465-8061 Land $7,000 Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________ 62 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager Cc: Scott Curtin, Public Works Director FROM: Elizabeth Appleby, City Planner DATE: April 26, 2019 SUBJECT: Resolution 2019-28 – Authorizing a Budget Transfer within the Water and Sewer Fund ____________________________________________________________________________ In 2010, the City of Kenai applied to the State of Alaska to acquire a parcel as a preference right applicant for a public and charitable use of municipal well site and for protection of the Beaver Creek Watershed. In 2012, the State signed a Final Finding and Decision to approve the sale of the property to the City. The Decision allows for a non-competitive sale to the City for the appraised fair market value, subject to a reversionary interest by the State should the property cease to be used for public and charitable purposes. In 2014, pursuant to Alaska Statute 38.05, the State of Alaska Department of Natural Resources, Division of Mining, Land, and Water issued a First Amended Final Finding and Decision to address Boundbrook Drive and the dedication of a 30-foot right-of-way on the plat of the parcel. The City paid for a survey of the property which created the subject parcel, described as Alaska State Land Survey 2013-49 Tract A and recorded as Plat 2017-8, Kenai Recording District. The parcel is approximately 28.77 acres within the Rural Residential Zone of the City. In 2019, the City received a Second Final Finding and Decision to address the School Trust Land, appraisal valuation date, and appraisal fee. The City also received notice to proceed to appraisal in 2019. 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ALAS»C • CONT~.....,.(; ~-131 "C-.U 110tN ltCCCMa«O OIS'lfltCT ·'ib 20130049 65 CITY OF KENAI WELL-PUMP HOUSE 1 1 1 2 6 4 5 3 3 12 2 2 14 25 24 12 10 13 11 TR. A 63836383 36203620 480 35213521 64486448 64156415 2302202302206351 6223 51846159 515251686320 6351 6223 51846159 515251686320 3740 4203630 3710 3720 3730 6384 460490 6352 3740 4203630 3710 3720 3730 6384 460490 6352 64166416 KENAI SPUR HWY ADL 51055SHOTGUN DRMINCHUMINA AVE BEAVER LOOP RDN FERN ST. 210 ' Date: 4 /2 6/20 19 The information depicted hereon is for graphic representationonly of the best available sources. The City of Kenai assumes no responsibility for errors on this map. 1 inch equals 250 feet Alaska State Land Survey2013-49Tract A (Kenai Peninsula Borough Parcel Number 04103060) 460 Shotgun Drive 66 67 68 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019-29 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA FIXING THE RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR COMMENCING JULY 1, 2019 AND ENDING JUNE 30, 2020. WHEREAS, Kenai Municipal Code requires that the rate of levy of property tax be set annually not later than the tenth day of June; and, WHEREAS, the Council has adopted the "City of Kenai 2020 Annual Budget," which estimates property tax revenue based upon a tax rate of 4.35 mills. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the rate of levy of property tax for the fiscal year commencing July 1, 2019 and ending June 30, 2020 be fixed at 4.35 mills. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 69 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 9, 2019 SUBJECT: Resolution 2019-29 Establishing the City of Kenai FY2020 Property Tax Mill Rate Resolution 2019-29 will establish the rate of levy of property tax for FY2020, tax year 2019. The proposed rate of levy is 4.35 and will result in $435 in taxes being paid for each $100,000 of assessed property value. The rate is unchanged and will generate the necessary property taxes to support the adopted FY20 budget. The last mill rate change for the City was in FY2015. Your support is respectfully requested. 70 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019 - 30 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, SUPPORTING KENAI PENINSULA BOROUGH ORDINANCE 2019-09, AMENDING THE BOROUGH’S SALES TAX CODE TO LEVY A 12 PERCENT TAX ON TEMPORARY LODGING, EXEMPT TEMPORARY LODGING RENTALS FROM THE GENERAL SALES TAX, AND ALLOW CITIES THAT LEVY A SIMILAR SALES TAX ON TEMPORARY LODGING TO EXEMPT UP TO ONE-HALF OF THE BOROUGH’S TEMPORARY LODGING TAX, SUBJECT TO BOROUGH VOTER APPROVAL. WHEREAS, due to the continuing decline in state assistance to municipalities and other losses of revenue, the Kenai Peninsula Borough is pursuing a borough-wide tax on temporary lodging rentals similar to bed taxes levied by other Cities and Boroughs in Alaska; and WHEREAS, the City of Kenai attracts a significant number of visitors to the Kenai Peninsula each year, and although visitors contribute to the economy, the City does not currently receive any direct revenue from visitors to offset demands on public services other than the City’s share of general sales tax; and, WHEREAS, the City at one time had a Hotel/Motel Room Tax of five percent (5%), which was transmitted from the operator and/or owner renting rooms to the City; however, effective June 15, 1996, the Hotel/Motel Room Tax was suspended until such time as Council directs otherwise; and, WHEREAS, under the Borough Ordinance, a temporary lodging tax would be established and apply to “temporary lodging,” defined as “a service to provide any structure or portion of a structure, permanent or temporary, fixed or mobile, in which a person, for money or other consideration, may obtain lodging, dwelling or sleeping accommodations for less than one month,” and excludes any motor home or tent not provided by the seller; and, WHEREAS, the City of Kenai does not currently have a bed tax and, if adopted and approved by voters, Borough Ordinance 2019-09 would allow the City to participate in a Borough-wide bed tax levied by cities within the Borough in which the borough-wide bed tax would be collected by the Borough and fifty percent (50%) remitted to the City; and, WHEREAS, the revenue generated from the Borough portion of the bed tax would be used for educational purposes and make other Borough revenues available to offset visitor costs, the City would be able to designate where to direct its portion of the bed tax; and, WHEREAS, this Resolution of support does not obligate the City to enact a bed tax but if a majority of Borough qualified voters approved Borough Ordinance 2019-09 on the October 1, 2019 Kenai Peninsula Borough ballot then the City must enact its own bed tax in order to participate in the City’s share in the Borough-wide rate remitted to the City of Kenai. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: 71 Resolution No. 2019-30 Page 2 of 2 Section 1: That it supports Kenai Peninsula Borough Ordinance 2019-09, Amending the Borough’s Sales Tax Code to Levy a Tax on Temporary Lodging, Exempt Temporary Lodging Rentals from the General Sales Tax, and Allow Cities that Levy a Similar Sales Tax on Temporary Lodging to Exempt up to One-Half of The Borough’s Temporary Lodging Tax, Subject to Borough Voter Approval. Section 2: That a copy of this resolution be transmitted to Mayor Charlie Pierce and Kenai Peninsula Borough Assembly Members. Section 3: That this resolution take effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 72 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Paul Ostrander, City Manager DATE: May 6, 2019 SUBJECT: Resolution 2019-30 – Supporting Kenai Peninsula Borough Ordinance 2019-09 to Establish a Temporary Lodging Tax ____________________________________________________________________________ Kenai Peninsula Borough Ordinance 2019-09 would establish a Temporary Lodging Tax, exempt temporary lodging rentals from the General Sales Tax, and allow cities to exempt up to one half of the Borough’s Temporary Lodging Tax, subject to Borough voter approval. Borough Ordinances 2017-17 and 2017-29 as well as 2018-24, which would have asked voters to approve a 6% and 12% bed tax, respectively, failed in 2017 and 2018. City of Kenai Resolution 2017-53 supported Borough Ordinance 2017-17. In 1991, the City enacted a Hotel/Motel bed tax of 5%, which was administered by the City and transmitted by the operator and/or owner renting rooms. The tax was put in place to promote economic development and tourism within the City but was suspended in 1996 until such time as the Council directed otherwise. At the time, an area-wide bed tax was not in place, putting City of Kenai businesses at a competitive disadvantage when local lodging was in low demand. The suspension of the bed tax was due to the possibility of adverse impacts on Kenai hotel/motel operators that asserted the tax made them uncompetitive with similar businesses outside of the City of Kenai that did not have a bed tax. City of Kenai businesses have expressed that RV and tent sites should be subject to any Temporary Lodging Tax to provide equity and assure competitiveness with motels, hotels and bed and breakfasts. Council may want to consider recommending the Assembly amend Borough Ordinance 2019-09 to include the taxation of RV and tent sites. If adopted and approved by voters, Borough Ordinance 2019-09 would allow the City to participate in a Borough-wide 6% bed tax levied by cities within the Borough in which the borough-wide rate of 12% would be collected by the Borough and 6% remitted to the City. The City’s participation in a bed tax would include approximately 28 businesses operating as motels, hotels, or bed and breakfasts within the City of Kenai and would not include motor homes or tents. 73 Page 2 of 2 Resolution 2019-30 Bed taxes are a common source of local government revenues. Other Alaska cities and boroughs have a bed tax with rates that range from 4% to 12%. Opposition to a bed tax by the hotel and travel industry is often lessened if some of the bed tax revenue is directed towards tourism promotion efforts. If a bed tax was enacted, the Council could appropriate a portion of the revenues specifically towards tourism marketing. The City of Kenai attracts a significant number of visitors to the Kenai Peninsula each year, and although visitors contribute to the economy, the City does not currently receive any direct revenue from visitors to offset demands on public services other than the City’s share of general sales tax. The estimated annual distribution of tax revenue of a 6% bed tax for a full fiscal year is approximately $150,000 to the City of Kenai. Support of Resolution 2019-30 does not obligate the City to enact a bed tax or determine the distribution of revenue but supports placing an area-wide bed tax on the October 1, 2019 Kenai Peninsula ballot. Your consideration is appreciated. 74 Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2019-09 Page 1 of 4 Introduced by: Bagley Date: 05/07/19 Hearing: 06/05/19 Action: Vote: KENAI PENINSULA BOROUGH ORDINANCE 2019-09 AN ORDINANCE AMENDING THE BOROUGH’S SALES TAX CODE TO LEVY A 12 PERCENT TAX ON TEMPORARY LODGING, EXEMPT TEMPORARY LODGING RENTALS FROM THE GENERAL SALES TAX, AND ALLOW CITIES THAT LEVY A SIMILAR SALES TAX ON TEMPORARY LODGING TO EXEMPT UP TO ONE- HALF OF THE BOROUGH’S TEMPORARY LODGING TAX, SUBJECT TO VOTER APPROVAL WHEREAS, the Kenai Peninsula Borough (“borough”) needs to raise revenue to protect the general fund, which has been declining due to substantial losses in tax revenues due to past increases in tax exemptions, the continuing and projected large decline in state assistance to municipalities, other proposed cuts in municipal funding, and the increasing reliance on borough funding for education; and WHEREAS, the borough is currently facing a potentially severe budget deficit for FY 2020; and WHEREAS, currently 49 Alaska municipalities including cities and boroughs have a bed tax, with bed tax rates that are based on a percentage of price ranging from 4 percent to 12 percent; and WHEREAS, the Kenai Peninsula Borough and the Aleutians East Borough are the only second- class boroughs in the state without an additional sales tax on temporary lodging; and WHEREAS, several hundred thousand visitors travel to the Kenai Peninsula each year and contribute in a large way to the area’s economy but also create a large demand on public services in the borough; and WHEREAS, impacted borough services include solid waste, roads, recreational and senior citizen services, 911 and emergency services, hospital services and disaster services; and WHEREAS, while the revenue to the borough generated from this additional sales tax on temporary lodging would be used solely for educational purposes, it would also make other borough revenues available to offset these visitor costs and help maintain the fund balance; and 75 Ordinance 2019-09 New Text Underlined; [DELETED TEXT BRACKETED] Kenai Peninsula Borough, Alaska Page 2 of 4 WHEREAS, “temporary lodging” is currently defined in the borough sales tax code as “a service to provide any lodging of less than one month”; and WHEREAS, to clarify that this tax does not apply to the rental of spaces for motor homes, tents, and other similar temporary shelters not provided by the seller, and what is considered temporary lodging, the definition of “temporary lodging” is amended; and WHEREAS, a temporary lodging tax of 12 percent is estimated to generate approximately $1,100,000 in additional revenues in FY2020 and $4,400,000 in FY2021 and FY2022; and WHEREAS, to enable the cities to levy a similar tax and allow the tax to apply evenly throughout the borough, the ordinance exempts from the borough’s 12 percent temporary lodging tax an amount equal to a similar city tax of up to one-half of the borough’s temporary lodging tax; and WHEREAS, as this includes an increase in the sales tax rate voter approval is required; and WHEREAS, this also specifically authorizes cities to levy a temporary lodging tax to ensure the general law cities may legally do so under AS 29.45.700(a) after the borough exempts temporary lodging from its general sales tax provisions in this ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH: SECTION 1. KPB 5.18.100 is amended as follows: 5.18.100. General—Levied—Amount. A. There is levied by the borough a consumer's sales tax of up to 3 percent maximum rate on all retail sales, on all rents, and on all services made or rendered within the borough, measured by the gross sales price of the seller. B. In addition to the tax levied in paragraph A of this section, there is levied in the borough a sales tax on the rental of temporary lodging of up to 12 percent of the rental price of all such rentals within the borough, except as specifically exempted herein. C. In addition to the sales taxes levied by the borough, any municipality within the borough may levy a consumer's sales tax and a temporary lodging tax that may be included in their general sales tax, taxed separately, or both, as provided by Alaska Statute which shall be reported, collected, and enforced according to the terms of this chapter. 76 Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2019-09 Page 3 of 4 SECTION 2. That KPB 5.18.200(A) is amended by amending paragraph 22, as follows: 5.18.200. Exemptions/waivers—Exemptions. A. The following classes of retail sales, services and rentals are exempt: … 22. The rental of temporary lodging shall be exempt from the borough general sales tax levied pursuant to KPB 5.18.100(A). SECTION 3. That KPB 5.18.215 is hereby enacted, as follows: 5.18.215. Exemptions/waivers—Temporary lodging within cities in the borough. Rentals of temporary lodging within any city in the borough are exempt from the borough’s temporary lodging room tax in an amount equal to a similar temporary lodging tax that is either levied separately from or included in the city’s general sales tax, or both, with a maximum total exemption of one-half of the borough’s temporary lodging tax. SECTION 4. That KPB 5.18.900, Definitions, is hereby amended by amending the definition of temporary lodging as follows: 5.18.900. Definitions. When not clearly otherwise indicated by the context, the following words and phrases, as used in this chapter, have the following meanings: . . . “Temporary lodging” [IS DEFINED AS] means a service to provide any structure or portion of a structure, permanent or temporary, fixed or mobile, in which a person, for money or other consideration, may obtain lodging, dwelling, or sleeping accommodations for less than one month. This term includes hotels, apartment hotels, motels, tourist homes, houses or courts, lodging houses, inns, rooming houses, hostels, trailers, bed and breakfasts, dormitories except as excluded below, and any other facility, structure, or room of whatever name where space for lodging, dwelling, or sleeping may be secured for consideration. “Room” excludes any self-contained and powered motor home or tent not provided by the seller, tent or tent space, hospital, medical clinic, sanitarium, or nursing home; or any student dormitory operated by a non-profit or public educational entity. SECTION 5. That a ballot proposition shall be placed before borough voters at the regular election on October 1, 2019 to read as follows: 77 Ordinance 2019-09 New Text Underlined; [DELETED TEXT BRACKETED] Kenai Peninsula Borough, Alaska Page 4 of 4 Shall Ordinance 2019-09 be approved? Ordinance 2019-09 establishes a borough sales tax of up to 12 percent on temporary lodging, exempts temporary lodging from the borough general sales tax, and exempts the amount of any city temporary lodging tax up to one-half of the borough’s temporary lodging tax. “Temporary lodging” includes a service to provide lodging as described in the ordinance of less than one month for money or other consideration”. Yes _____ A “yes” vote means you approve of a borough temporary lodging tax of up to 12 percent instead of the general sales tax on temporary lodging, with an exemption for any similar tax on temporary lodging tax levied by a city on the lodging. This exemption in cities cannot exceed one-half of the borough’s temporary lodging tax. No _____ A “no” vote means you oppose a borough temporary lodging tax of up to 12 percent instead of the existing general sales tax on temporary lodging, with an exemption for any similar tax on temporary lodging tax levied by a city on the lodging. This exemption in cities cannot exceed one-half of the borough’s temporary lodging tax. SECTION 6. That Sections 5 and 6 of this ordinance shall become effective immediately upon enactment of this ordinance. Sections 1, 2, 3 and 4 of this ordinance shall become effective April 1, 2020, only if the proposition contained in Section 5 is approved by a majority of voters voting on the question in the regular election of October 1, 2019. ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH ON THE * DAY OF *, 2019. ____________________________________ Wayne H. Ogle, Assembly President ATTEST: __________________________________ Johni Blankenship, MMC, Borough Clerk Yes: No: Absent: 78 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019 - 31 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR MANAGEMENT SERVICES TO PROVIDE SUMMER ICE ACTIVITIES AT THE CITY OF KENAI MULTI-PURPOSE FACILITY. WHEREAS, the City has been contracting with a contractor to provide summer ice at the Kenai Multi-Purpose Facility during the months of May through September; and, WHEREAS, in exchange for the payment of utilities the contractor maintains the facility and independently runs certain services including youth camps, tournaments and public skates benefiting the local community; and, WHEREAS, the City’s three year contract to maintain the facility and perform management and administrative services for summer ice ended September 30, 2018; and, WHEREAS, the City advertised in the Clarion Newspaper and solicited other potential interest for managing the facility for summer ice activities; and, WHEREAS, Red Line Sports was the only response to the solicitation for management services and the recommendation of the Administration is to award the Contract for Contract Management Services to Red Line Sports; and, WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such agreement with Red Line Sports on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That a Contract for Management Services at the City of Kenai Multi-Purpose Facility for summer ice activities is awarded to Red Line Sports and the City Manager is authorized to execute an Agreement with generally the same terms as the previous agreement for the period beginning May 25, 2019 and ending September 30, 2021. Section 2. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15 day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 79 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: May 7, 2019 SUBJECT: Resolution No. 2019-31 – Management Services Contract for Summer Ice Activity at the Kenai Multi-Purpose Facility ____________________________________________________________________________ Purpose of this correspondence is to notify you that the seasonal three year term contract for management services to provide summer ice activities at the City of Kenai Multi-Purpose Facility has expired. The City advertised in the Clarion Newspaper and solicited other potential interest for managing the facility for summer ice activities. Red Line Sports was the only response to the solicitation for management services. If approved, Red Line Sports will provide summer ice activities at the Kenai Multi-Purpose Facility during the months of May through September in exchange for payment of utilities, Zamboni rental and public skates benefiting the local community. Thank you for your consideration. 80 Contract for Services at City of Kenai Multi-Purpose Facility Page 1 of 9 CONTRACT FOR SERVICES AT CITY OF KENAI MULTI-PURPOSE FACILITY THIS AGREEMENT is made this ___ day of _______________ 2019, by and between the CITY OF KENAI (Owner), 210 Fidalgo Avenue, Kenai, AK 99611-7794, and DBA Red Line Sports (Contractor), owned by Vince Redford, an individual, 168 Trumpeter Ave, Soldotna, AK 99669(address). WITNESSETH: WHEREAS, Owner desires to contract for annual management and administrative services of the facility in order to provide summer ice at the Multi-Purpose Facility, and; WHEREAS, the Owner advertised and solicited interest for the right to perform management and administration services for the purpose of providing summer ice skating activities, and; WHEREAS, Red Line Sports and the Owner have come to an agreement regarding the terms and conditions of such a contract. NOW, THEREFORE, the parties hereto agree as follows: I. Beginning each year on May 23 through September 30 Contractor shall provide and perform management and administration of the City of Kenai Multipurpose Facility for Summer Ice Activities -beginning May 23, 2019 and ending September 30, 2021. 2. All personnel furnished by Contractor shall be employees of Contractor, and Contractor shall pay all salaries and expenses of, and all federal social security taxes, federal and state unemployment taxes, and any similar payroll taxes relating to such employees. Contractor is an independent contractor, and it will not at any time directly or indirectly act as an agent, servant, or employee of the Owner, or make any commitments or incur any liabilities on behalf of the Owner without its express written consent. 81 Contract for Services at City of Kenai Multi-Purpose Facility Page 2 of 9 3. Contractor shall provide all proper safeguards and assume all risks incurred in performing its services hereunder. 4. Contractor shall provide the insurance coverage set forth herein and deliver to Owner certificates of insurance in accordance therewith within ten days of the signing of this Agreement and before any services are performed under this Agreement. 5. Contractor is responsible for the direct supervision of its personnel through his designated representative, and such representative shall in tum be available at all reasonable times to report and confer with the designated agents of the Owner with respect to services rendered. The designated agent for Contractor is Vince Redford. 6. Contractor agrees that the services to be provided hereunder shall be performed by qualified, careful and efficient employees in strict conformity with the best practices and highest applicable standards. 7. In exchange for the right to manage and administer the facility, Contractor agrees to make monthly payments to the Owner for actual utility costs (less the City's average summer carrying costs) and use of the City's Zamboni ($25 per day). The estimated cost based on historical utility usage is approximately $13,389.90. An ice installation credit, representing the costs of ice installation, will be credited to contractor as long as usable installed ice in a condition meeting general industry standards remains in the facility as of September 30, of each year of the contract. Contractor will be invoiced for utility costs and Zamboni use on the first day of each following month, and payment to the owner will be due on the 15th of each month. 8. Ice Scheduling, reservations, scheduling and collection of program fees shall be the responsibility of the Contractor. Public Skate times shall be offered throughout the week at a minimum of 1.5 hours per week and a minimum of 2-hours per week shall be dedicated to Open Skate. All Public Skate and Open Skate times shall be publicly advertised. 1. An estimate and example is provided in Attachment A. 82 Contract for Services at City of Kenai Multi-Purpose Facility Page 3 of 9 9. The Contractor shall perform ice installation and provide necessary material and supplies, such as ice paint, line kits and goal kits. 10. The Ice Resurfacing Machine (Zamboni) is owned by the City of Kenai. The Contractor and his/her designee shall perform all Zamboni driving and perform ice resurfacing at scheduled times. 11. Purchase of propane for the purposes of filling the Zamboni shall be the responsibility of the Contractor. 12. Routine Maintenance and Operations of lce Resurfacing Machine (Zamboni) shall be the responsibility of the Contractor. The Contractor shall perform the following routine maintenance operations: 1. Perform oil/fluids and perform changes at manufacturer's prescribed maintenance schedule. 2. Purchase lubricant and lubricate fittings and moving parts per manufacturer's prescribed maintenance schedule. 3. Remove, install, and adjust Zamboni blades prior to and after sharpening. The Contractor shall be responsible for sharpening of the blades. 4. Remove, change and install board brushes on Zamboni as needed. 5. Wash and wax Zamboni. 6. Regular maintenance of tires on Zamboni . All major repair work such as, but not limited to, internal or external engine work, drive train, auger bearings, hydraulic or cooling system leaks shall be the responsibility of the Contractor. All repair work and preventative maintenance shall be documented and submitted to the City of Kenai at the end of the summer ice session. A daily inspection of the Zamboni shall be documented and submitted to the City of Kenai at the end of the summer session. 13. The Contractor shall perform ice edge maintenance as necessary. 83 Contract for Services at City of Kenai Multi-Purpose Facility Page 4 of 9 14. Lock-Up and Security. The Contractor shall be responsible for securing the Zamboni and performing daily or nightly facility lock-up. 15. The Contractor shall assume responsibility for general cleanliness of Facility. This shall include, but not limited to, cleaning of bleachers, sweeping of warming shacks, litter control, sweeping/mopping of mats and perimeter area, and cleaning/disinfecting restroom facility, and stocking of restroom products. 16. The Contractor shall be responsible for routine maintenance of the rink boards, glass and goals. Routine maintenance of the rink boards and glass shall include, but not limited to, light repair work and cleaning as needed. 17. Electrical. The City shall be responsible for maintenance of electrical components related to the Facility, unless stated otherwise in the Agreement. 18. Refrigeration System. The Contractor shall be responsible for routine and preventative maintenance of the refrigeration system as specified by the manufacturer. Purchase of oil and refrigeration chemicals needed to operate the refrigeration system shall be the responsibility of the Contractor. The Contractor or his/her employees shall perform light repair work as needed to all mechanical and machinery components related to the refrigeration system i.e., compressors, pumps, belts, electrical circuits, plumbing, motors and controls with exception to warranty work. The system shall be inspected daily and maintained in good functioning order required to operate the facility and make artificial ice. All daily inspection and maintenance records shall be posted for review and submitted to the City at the end of season. The Contractor shall follow industry standards and be sensitive to energy costs by operating the refrigeration system in the most efficient manner possible without sacrificing quality of ice. This may include, but is not limited to, monitoring outside temperatures, shutting down compressor and pumps at night, and maintaining proper ice thickness. 84 Contract for Services at City of Kenai Multi-Purpose Facility Page 5 of 9 19. Major repair work or replacement of machinery and equipment shall be the responsibility of the Contractor. Major repair work may include, but is not limited to, internal or external engine or equipment work. The City will be responsible for administering subcontracts or agency agreements related to the O&M of the Facility and the refrigeration system, if needed. 20. Permits, Regulations and Certificates. The Contractor or any of his/her designees working with or handling Freon must possess a valid EPA Recovery Technician Type II Certificate. Proof of certification must be submitted to the City and a copy of such certification posted on the premises. The Contractor and his/her designee must comply with all applicable federal, state and local government laws, regulations and permits. 21. The Contractor shall be responsible for all related utility costs. 22. Insurance Requirements & Indemnification: a. General The Contractor shall not commence work until he has obtained all insurance required under this section and has satisfied the City in this respect; nor shall he allow any subcontractor to commence work until he also has obtained similar insurance which is applicable to his work. The Contractor shall maintain insurance throughout the life of this Contract. Such insurance shall be by a company/corporation currently rated "A-"or better by A.M. Best. b. Workmen's Compensation Insurance The Contractor shall obtain and maintain during the life of this Contract, workmen's compensation insurance for all employees who will work on this project, and if any work is sublet, the Contractor shall require the subcontractor similarly to provide such insurance for all of the latter's 85 Contract for Services at City of Kenai Multi-Purpose Facility Page 6 of 9 employees unless they are included under the protection afforded by the Contractor. If employees engaged in hazardous work are not protected under the AS23.30, by workmen's compensation insurance, the Contractor and any subcontractor who is affected must provide compensation insurance with a private company which in amount shall be equivalent to that provided by the Alaska workmen's compensation insurance for the protection of employees who are not so engaged. The minimum limits of coverage shall be: (A) Alaska Worker's Compensation and (A) Statutory (B) Employer's Liability Insurance (B) $1,000,000 per occurrence All workman's compensation policies or endorsements thereto shall in all cases where possible contain a waiver of subrogation against the City. c. Bodily Injury, Property Damage and Vehicle Liability Insurance The Contractor shall obtain and maintain in force during the life of this Contract such general liability and property-damage insurance as shall protect the City and the Contractor against losses which may result from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from any operations under this Contract, whether such operations be those of the Contractor, a subcontractor or anyone directly or indirectly employed by either of them and the amount of such insurance shall be as f ollows unless modified by the Special Provisions of these specifications. The minimum limits of coverage shall be: General Liability Bodily Injury & Property Damage $1,000,000 (Five Hundered Thousand Dollars) Combined Single Limit per occurrence Auto Liability with included Operations, Contractual Liability, and Owned, Hired, and Non-owned Vehicles $300,000 (Three Hundred Thousand Dollars) Combined Single Limit per occurrence 86 Contract for Services at City of Kenai Multi-Purpose Facility Page 7 of 9 All general liability policies or endorsements thereto shall in all cases where possible name the City as Additional Named Insured thereunder and shall contain a waiver of subrogation against the City. d. Subcontractor's Bodily Injury and Property Damage Insurance and Vehicle Liability Insurance The Contractor shall either (1) require each of his subcontractors to procure and to maintain during the life of his subcontract, Subcontractor's Bodily Injury and Property Damage Insurance and Vehicle Liability Insurance of the type and in the amounts specified in subparagraph (c) hereof or, (2) insure the activities in his policy, specified in subparagraph (c) hereof. e. Scope of Insurance The insurance required under subparagraphs (c) and (d) hereof shall provide adequate protection for the Contractor and his subcontractors, respectively, against damage claims which may arise from operations under this Contract, whether such operations be by the insured or by anyone directly or indirectly employed by him. f. Proof of Carriage of Insurance The Contractor shall furnish the City with certificates showing the type, amount, class of operations covered, effective dates and date of expiration of policies. Such certificates shall also contain substantially the following statement: "The insurance covered by certificate will not be canceled or materially altered, except after twenty (20) days written notice has been received by letter by the City of Kenai." 23. Indemnification To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the City of Kenai and its agents, officers, and employees from and against all claims, damages, 87 Contract for Services at City of Kenai Multi-Purpose Facility Page 8 of 9 losses and expenses including attorneys' fees arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease, death or personal injury, or to injury to or destruction of tangible property including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder . In any and all claims against the City of Kenai or its agents, officers, or employees by any employee of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the indemnification obligation under this Article shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under Worker's Compensation acts, disability benefit acts, or other employee benefit acts. 24. This Agreement may be terminated with cause by giving fifteen (15) days written notice by certified mail to the other party. Cause is defined as the violation of the terms and conditions of this Agreement. The City may terminate without cause with thirty (30) days written notice. Termination of this Agreement by the Contractor without cause shall cause the Contractor to be liable to the City for any increased costs of procuring the services provided in this Agreement and any other damages provided by law. This Agreement, together with the attached Specifications, contains all of the covenants and agreements between said parties with respect to the subject matter of this Agreement. 25. The parties may by mutual written consent amend the terms of this Agreement. IN WITNESS WHEREOF, parties have caused this Agreement to be executed as of the date first above written. CITY OF KENAI RED LINE SPORTS 88 Contract for Services at City of Kenai Multi-Purpose Facility Page 9 of 9 By: _________________________ By: Paul Ostrander Vince Redford Its: City Manager Its: Owner STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY the foregoing instrument was acknowledged before me this ___ day of ______________, 2019, by Paul Ostrander, City Manager of the City of Kenai, a home rule municipality, on behalf of the City. Notary Public in and for Alaska My Commission expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY the foregoing instrument was acknowledged before me this ____ day of ______________, 2019, by Vince Redford, Owner of Red Line Sports., an Alaska corporation, on behalf of the corporation. Notary Public in and for Alaska My Commission expires: Approved as to form: ______________ _________ Scott M. Bloom City Attorney 89 ATTACHMENT A Kenai Multi-Purpose Facility Calculation of Facility Rental Rates for Summer of 2019 EXPLANATION/CALCULATION OF EXPENSES Cost of Electricity per Month $12,500.00 ($13,800 less average summer cost of $1,300/month) Cost of Natural Gas per Month 140.00$ ($300 less average summer cost of $160/month) COST OF ICE INSTALLATION (IF ICE STAYS IN UNTIL HOCKEY SEASON) Unit Quantity Unit Cost Sub-Total Ice Paint/Stripe Kit EA 1 500.00$ 500.00$ Ice Maintenance Contractor HR 40 40.00$ 1,600.00$ Laborer HR 8 20.00$ 160.00$ Electricity Day 3 416.67$ 1,250.01$ Natural Gas Day 3 14.00$ 42.00$ Total 3,552.01$ DAILY COST OF ICE OPERATION Unit Quantity Unit Cost Sub-Total Electricity Day 1 416.67$ 416.67$ Natural Gas Day 1 4.67$ 4.67$ Zamboni Day 1 25.00$ 25.00$ Total 446.34$ Description of Cost Item Description of Cost Item 90 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019 - 32 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, AUTHORIZING AN AMENDMENT TO THE AIRPORT ADVERTISING CONCESSION AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT. WHEREAS, on March 1, 2017 the Kenai City Council adopted a resolution authorizing the City Manager to enter into an Agreement with the Concessionaire based upon certain terms and conditions covering operation of the terminal advertising concession at the Airport; and, WHEREAS, the terminal rehabilitation project will temporarily disrupt the Concessionaire’s business and require additional capital investment from the Concessionaire; and, WHEREAS, the City and the Concessionaire mutually desire to amend the existing Terminal Advertising Concession Agreement for the benefit of both parties, by addressing costs of new display improvements, temporary reduced fees, and a 3-year extension. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That the City Manager is authorized to enter into an Airport Advertising Concession Agreement with Alaska Channel for the period of March 1, 2017 through February 28, 2025. Section 2: That this resolution take effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 91 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant, Airport Manager DATE: May 6, 2019 SUBJECT: Resolution 2019-32 – Terminal Advertising Concession The terminal rehabilitation project will make extensive changes to areas in the terminal that are currently used by the advertising concessionaire. In order to accommodate these changes, the Airport and Alaska Channel have agreed to modernize the wall displays bringing a visual enhancement that eyes will be drawn to when entering the terminal building. The current displays are old and tired. New tension displays will add to the new aesthetics, function, ambiance, and can be put any place. Current advertisers are excited for the upgrades and new advertisers are waiting for the completion of the terminal rehabilitation project to enter the program. Thank you for your consideration. 92 First Amendment To Airport Concession Agreement with Alaska Channel Page 1 of 5 FIRST AMENDMENT TO CITY OF KENAI KENAI MUNICIPAL AIRPORT TERMINAL ADVERTISING CONCESSION AGREEMENT THIS FIRST AMENDMENT is made this ___ day of May, 2019, between the City of Kenai (City), whose address is 210 Fidalgo, Kenai, AK 99611, and Alaska Channel (Concessionaire), whose address is 507 E. Street, Suite 206, Anchorage, AK 99501. RECITALS A. The City owns and operates the Kenai Municipal Airport and Airport Terminal Building (collectively “Airport”), located in Kenai, Alaska. B. On March 1, 2017, the Kenai City Council adopted a resolution authorizing the City Manager to enter into an Agreement with the Concessionaire based upon certain terms and conditions covering operation of the terminal advertising concession at the Airport. C. The City has undertaken an extensive terminal remodel project that will temporarily disrupt Concessionaire’s business in the terminal and require additional capital investment from the Concessionaire once the project is complete. D. The City and Concessionaire mutually desire to amend the existing Terminal Advertising Concession Agreement for the benefit of both parties. The City and Concessionaire therefore agree as follows: 1. Amend Article II- Term, of the Agreement to read as follows: ARTICLE II-TERM A. Term: The term of this Agreement is effective as of March 1, 2017 through midnight of February 28, 2025, unless terminated earlier as provided herein. B. Holding Over: If the Concessionaire holds over, provides services, and remains in possession of the Premises without a written renewal or extension of this Agreement, the City’s allowance of continued operations by Concessionaire does not operate as a renewal or extension of the rights granted under this Agreement, and, instead the parties agree that this creates only a month-to-month extension, regardless of any payment the City accepts. The Concessionaire’s obligations to perform under this Agreement will continue until either it or the City terminates the services under this Agreement by giving the other party at least 10 days’ written notice. The payment due for any extended period during which services are provided without a written extension of this Agreement is the monthly rent as it would have been due for the preceding year and plus the applicable percentage rent due for that period of additional operation and such payments shall be payable in the same manner. 93 First Amendment To Airport Concession Agreement with Alaska Channel Page 2 of 5 2. Amend Article V-Rent, Fees, Taxes and Payments, of the Agreement to read as follows: ARTICLE V – RENT, FEES, TAXES, AND PAYMENTS A. For the rights and privileges granted under this Agreement, and Concessionaires agreement to make a capital investment in the Kenai Airport Terminal as provided in the April 15, 2019 Revised Budget for Non Lit Tension Fabric Displays & 2 Digital Displays with Digital Signage, Attached hereto as Exhibit 1, Concessionaire shall pay the City: 1. From the effective date of this First Amendment until August 1, 2020, or 6 months after renovations are substantially completed, whichever comes later, a percentage payment of 30% of annual gross revenue plus applicable sales tax. 2. (a) After August 1, 2020, or 6 months after renovations are substantially completed, whichever comes later, a minimum annual guaranteed amount of Nine-Thousand Dollars ($9,000), plus applicable sales tax. The percent payment, of 30% on annual gross revenue beyond the minimum annual guaranteed amount will be retained by Concessionaire until the total retainage equals $14,264. (b) Thereafter, Concessionaire will make payments to the City as follows: $9,000 minimum annual guaranteed amount or the percent of gross revenue payments below (including applicable sales tax) whichever is higher: Year One 30 % Year Two 30 % Year Three 30 % Year Four 30 % Year Five 30 % Year Six 30 % Year Seven 30 % Year Eight 31 % Concessionaire shall furnish to the Airport each month a statement showing total Gross Revenue by advertiser, as defined herein, for the preceding month. After subsection 2(a) above is completed, with each monthly statement, the Concessionaire shall remit to the Airport 1/12th of the MAG and the above stated percentage of its Gross Revenue, in excess of $30,000, derived through the end of the reporting month. The monthly statements and payment will be paid by the 20th day of the month following the last day of the reporting month of service. For purposes of this Agreement, annual revenue will include all revenue earned from the first day of this Agreement and end one calendar year thereafter. Concessionaire agrees to remit payments to the City at Kenai, City Hall, in United States currency, 94 First Amendment To Airport Concession Agreement with Alaska Channel Page 3 of 5 either by check, cash, bank draft, or money order. Concessionaire will submit payments free from any claim, demand, setoff, or counterclaim of any kind against the City. After subsection 2(a) above is completed the percentage payment payable to the City by the Concessionaire under this Agreement shall be owned by the City when the Concessionaire’s annual gross revenue exceeds $30,000 and at the time of each customer transaction and will be held in trust by the Concessionaire while the funds are in Concessionaire’s custody and control. The Concessionaire is responsible for these fees until delivered to the City. If any fees payable to the City are lost, stolen, or otherwise unlawfully removed from the custody and control of the Concessionaire, the Concessionaire remains responsible to the City for the revenue. Concessionaire shall pay for all telephone service to the assigned areas. The Airport shall pay for all heating, air conditioning and electrical service provided to the Assigned Areas. B. Unpaid Fees: Any rent, charge, fee, liquidated damage/penalty, interest, or other consideration due but unpaid at the expiration or cancellation of this Agreement is a charge against the Concessionaire and its property, real or personal, at the Airport or where otherwise located. The City has any lien rights allowed by law. Either the City or its authorized agent may provide enforcement. C. Taxes: Concessionaire shall pay any borough, city, or other sales and property taxes due on base rent, percentage rent, and any other fee due under this Agreement. D. Other Fees: The City reserves the right to impose and collect charges and fees from Concessionaire for the following: 1. The use of specified equipment, facilities, or services when such use is requested by Concessionaire; and/or, 2. The privilege of accessing the Airport to conduct any business other than an on-Airport advertising concession business. E. Audit: In addition to the audit rights specified elsewhere herein, the City (itself or through and/or its designated representatives) reserves the right to audit Concessionaire’s books and records at any time for the purpose of verifying the Gross Revenue. If, as a result of such an audit, it is established by the City that Concessionaire has understated the Gross Receipts received by 3% or more (after the deductions and exclusions provided for herein), the entire expense of said audit shall be borne by Concessionaire Any amount found to be underpaid will be assessed to Concessionaire along with penalty, audit costs, if applicable, and interest. E. Revenue Diversion: Concessionaire shall not cause or allow to be diverted from the Airport any of its advertising business in any manner to avoid or reduce its Gross Revenues upon which its financial obligations owed the City is computed. In the event Concessionaire establishes, owns, operates, or manages during the term hereof any advertising business within five miles of the Airport, it agrees to make all books, records, and other pertinent documents of such advertising business available for audit by the City and/or its designated representative to ensure compliance 95 First Amendment To Airport Concession Agreement with Alaska Channel Page 4 of 5 with this provision. If, as a result of such an audit, it is established by the City that Concessionaire has understated the Gross Revenues received by 3% or more (after the deductions and exclusions provided for herein), the entire expense of said audit shall be borne by Concessionaire. Any amount found to be underpaid will be assessed to Concessionaire along with penalty, audit costs, if applicable and interest. 3. The concessionaire understands that FAA regulations mandate compliance with Grant Assurances and if problems develop with the extension, terms and conditions will be adjusted to the extent necessary to satisfy FAA. 4. This First Amendment and all conditions and obligations under this Amendment shall be effective as of _________________2019, regardless of the dates of signature below. 5. Except as expressly modified or stated herein, all other terms and conditions of the KENAI MUNICIPAL AIRPORT TERMINAL ADVERTISING CONCESSION AGREEMENT remain in full force and effect. CITY OF KENAI CONCESSIONAIRE By: By: Paul Ostrander Date Yael Kaufman Date Its: City Manager Its: General Manager ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ___ day of ______, 2019, by, Paul Ostrander, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. NOTARY PUBLIC for State of Alaska My Commission Expires: STATE OF ALASKA ) ) ss. 96 First Amendment To Airport Concession Agreement with Alaska Channel Page 5 of 5 THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ___ day of ________, 2019, by Yeal Kaufman, General Manager of Alaska Channel, an Alaska corporation, on behalf of the corporation. NOTARY PUBLIC for State of Alaska My Commission Expires: ATTEST: __________________________ Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: __________________________ Scott Bloom, City Attorney 97 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019-33 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING CONTRACTS FOR EMPLOYEE HEALTH CARE AND OTHER BENEFITS EFFECTIVE JULY 1, 2019. WHEREAS, as part of a comprehensive employee benefit package and pursuant to KMC 23.40.120 the City provides group medical, dental, vision, life, and supplemental life insurance to its employees; and, WHEREAS, the City’s current provider for this group medical and dental insurance is PREMERA Blue Cross Blue Shield of Alaska, VSP for vision insurance, and UNUM for both life and supplemental life insurance; and, WHEREAS, PREMERA Blue Cross Blue Shield of Alaska has provided a no-shop renewal quote plus a one-month premium holiday for continuing group medical and dental coverage at a premium increase of X.XX% and minor changes to plan provisions; and, WHEREAS, VSP has provided a renewal quote with no increase; and, WHEREAS, ____________ has provided a quote with ___________ in rate per $1,000 of insurance but a requested increase in the maximum amount of basic life insurance provided by the City from the lesser of one and one-half (1 1/2) an employee’s base pay or $65,000 to the lessor of one and one-half (1 1/2) an employee’s base pay or $100,000; and, WHEREAS, the estimated increase in the maximum City provided life insurance amount is estimated to cost $X,XXX annually; and, WHEREAS, providing quality major medical, dental, vision, life, and supplemental life insurance is a component of a comprehensive compensation package which allows the City to recruit and retain quality employees to provide the services of the City for its residents. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Council authorizes the City Manager to execute a contract with PREMERA Blue Cross Blue Shield of Alaska to provide group medical and dental insurance to the employees of the City of Kenai effective July 1, 2019 for an estimated annual premium of $X,XXX,XXX. Section 2. That the City Council authorizes the City Manager to execute a contract with VSP to provide vision insurance to the employees of the City of Kenai effective July 1, 2019 for an estimated annual premium of $15,858. 98 Resolution No. 2019-33 Page 2 of 2 Section 3. That the City Council authorizes the City Manager to execute a contract with __________ to provide life and supplemental life insurance to the employees of the City of Kenai effective July 1, 2019 for an estimated annual premium of $XX,XXX. Section 4. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________ 99 KENAI CITY COUNCIL – REGULAR MEETING MAY 1, 2019 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 VICE MAYOR TIM NAVARRE, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on May 1, 2019, in City Hall Council Chambers, Kenai, AK. Vice Mayor Navarre called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Vice Mayor Navarre led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor (absent) Robert Molloy Henry Knackstedt Tim Navarre Jim Glendening Robert Peterkin Glenese Pettey A quorum was present. Also in attendance were: **Tristan Summers, Student Representative Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, City Clerk 3. Agenda Approval Mayor Gabriel noted the following revisions to the packet: Add to item D.1. Ordinance No. 3061-2019 • Amendment Memo Add to item D.2. Ordinance No. 3062-2019 • Amendment Memo MOTION: Council Member Molloy MOVED to approve the agenda with the requested revisions to the packet and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. 100 City of Kenai Council Meeting Page 2 of 8 May 1, 2019 VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the floor for public comment; there being no one wishing to be heard, the public comment period was closed. VOTE: There being no objections, SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS – None. C. UNSCHEDULED PUBLIC COMMENTS None. D. PUBLIC HEARINGS 1. Ordinance No. 3061-2019 – Amending Kenai Municipal Code 14.20.320 - Definitions, 14.20.330 - Standard for Commercial Marijuana Establishments and 14.22.010 - Land Use Table, to Incorporate Onsite Consumption of Marijuana at Retail Marijuana Establishments into the City Of Kenai’s Code of Ordinances. (Legal) MOTION: Council Member Molloy MOVED to enact Ordinance No. 3061-2019 and Council Member Peterkin SECONDED the motion. Vice Mayor Navarre opened for public hearing. Sherry Innes spoke against the ordinance noting the recent crime and her understanding it was related to drugs. She added she was opposed to marijuana when it was initially legalized in the state and expressed concern for those consuming, and then getting on the road to drive home. There being no one else wishing to be heard, the public hearing was closed. An overview of the Planning and Zoning Commission recommendation was provided. Whether there was a need for the endorsement in the community, local operators intent to apply for the endorsement, concerns about testing levels in a person’s system when driving, length of 101 City of Kenai Council Meeting Page 3 of 8 May 1, 2019 time marijuana stays in a person’s system, not wanting to put drivers on roads at risk, and minimal public input regarding the matter were topics discussed. MOTION TO AMEND: Council Member Molloy MOVED to amend section 2 of the ordinance to read: “(a) Commercial marijuana establishments and indoor only onsite consumption endorsements may be permitted or allowed with a conditional use permit under KMC 14.20.150, as provided in the City of Kenai’s land use table, KMC 14.22.010, and the provisions of this section,” and Council Member Knackstedt SECONDED the motion. It was noted the effect was to limit consumption to indoor only. Clarification was provided that there were regulations in place for odor control. VOTE ON THE AMENDMENT: YEA: Knackstedt, Glendening, Pettey, Navarre, Molloy, Peterkin NAY: **Student Representative Summers: YEA MOTION PASSED UNANIMOUSLY. MOTION TO AMEND : Council Member Molloy MOVED to amend section 2 of the ordinance to read: “(k) An onsite consumption endorsement may only be operated on a daily basis between the hours of 2:00 p.m. and 10:00 p.m.” and Council Member Peterkin SECONDED the motion. It was suggested there needed to be something in code to limit the hours as there was nothing in state law. VOTE ON THE AMENDMENT: YEA: Knackstedt, Glendening, Pettey, Navarre, Molloy, Peterkin NAY: **Student Representative Summers: YEA MOTION PASSED UNANIMOUSLY. MOTION TO AMEND : Council Member Molloy MOVED to amend by adding a fifth whereas clause to read, “whereas, to protect public health and safety, hours of operation of onsite consumption endorsements are limited to between 2:00 p.m. and 10:00 p.m.; and.” Council Member Knackstedt SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND : 102 City of Kenai Council Meeting Page 4 of 8 May 1, 2019 Council Member Knackstedt MOVED to amend by adding a sixth whereas to read, “whereas, to protect public health and safety as well as minimize conflicts between onsite consumption and adjacent businesses, residences and the public, outdoor onsite consumption is prohibited; and,” and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. There was no objection to opening for additional public comment. Ryan Tunseth spoke in favor of the ordinance noting if the liberty of doing something was allowed under the law, it should be allowed. He added that the Marijuana Control Board made an effort to clarify the freestanding building clause in the law; also added that the recent movement of the enforcement division of the marijuana licensing division caused difficulty in understanding how enforcement worked and who reported to who. Ryan suggested there wasn’t a huge need for onsite consumption but there was some need such as renters that couldn’t consume where they rented. There being no one else wishing to speak; public comment was closed. Clarification was provided that the ordinance failing was not the same as prohibiting the endorsement and, if the desire was to prohibit the endorsement, an ordinance prohibiting would be needed to brought forth. VOTE ON THE MAIN MOTION AS AMENDED: YEA: Molloy, Peterkin NAY: Knackstedt, Glendening, Pettey, Navarre **Student Representative Summers: NAY MOTION FAILED. 2. Ordinance No. 3062-2019 – Increasing FY2019 General Fund Estimated Revenues and Appropriations by $20,859 And FY2020 General Fund Estimated Revenues And Appropriations by $35,418 in the General Fund Parks, Recreation, and Beautification Department for the Receipt of a Grant from the United States Environmental Protection Agency Passed Through the State of Alaska Department of Environmental Conservation for Bacteria Level Monitoring on the City’s Beaches during the 2019- 2020 Personal Use Fishery. (Administration) MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 3062-2019 and Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the public hearing. Maggie Harings thanked Council for support in the past and asked for continued support. She provided clarification on the Kenai Watershed Forum’s testing process and their interactions with the State of Alaska Department of Environmental Conservation (DEC). 103 City of Kenai Council Meeting Page 5 of 8 May 1, 2019 Branden Bornemann clarified what was said to the media in 2018 adding that if there was an exceedance, DEC was obligated to publicly notice within 24 hours. He explained that he negotiated in this year’s contract, City of Kenai involvement in the public noticing prior to releasing. Finally, Branden clarified there was funding for one set of samples to have DNA testing. There being no one else wishing to be heard, public hearing was closed. MOTION TO AMEND: Council Member Knackstedt MOVED to amend the last line in the title to read, “bacteria level monitoring on the City’s beaches from May to September during 2019 and 2020, “amend the first whereas clause to read, “whereas, the State of Alaska Department of Environmental Conservation has issued a grant to the City for bacterial level monitoring from May to September during 2019 and 2020; and,” amend the third whereas clause to read, “whereas, bacteria levels during the testing period in the past have exceeded water recreation standards established by the State of Alaska Department of Environmental Conservation in Register 226 that could pose a health risk to the fishery participants and City residents utilizing the beach; and,” and amend the final whereas clause to read, “whereas, it is in the best interest of the City to monitor the bacterial level on its beaches.” and Council Member Molloy SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. VOTE ON THE MAIN MOTION: YEA: Knackstedt, Glendening, Pettey, Molloy, Peterkin, Navarre NAY: **Student Representative Summers: YEA MOTION PASSED UNANIMOUSLY. 3. Resolution No. 2019-27 – Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City’s Permanent Funds for Calendar Year 2019. (Administration) MOTION: Council Member Molloy MOVED to adopt Resolution No. 2019-27 and Council Member Peterkin SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public hearing was closed. VOTE: YEA: Knackstedt, Glendening, Pettey, Molloy, Peterkin, Navarre NAY: **Student Representative Summers: YEA MOTION PASSED UNANIMOUSLY. 104 City of Kenai Council Meeting Page 6 of 8 May 1, 2019 E. MINUTES 1.*Regular Meeting of April 17, 2019 Approved by the consent agenda. 2.*Work Session of April 18, 2019 Approved by the consent agenda. 3.*Special Meeting of April 23, 2019 Approved by the consent agenda. F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. (Administration) Approved by the consent agenda. 2. *Action/Approval – Purchase Orders Over $15,000. (Administration) Approved by the consent agenda. 3. *Ordinance No. 3063-2019 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2019 and Ending June 30, 2020 and Committing $500,000 of General Fund, Fund Balance for Capital Improvements, Amending the Salary Schedule in Kenai Municipal Code Chapter 23.55- Pay Plan, Amending Employee Classifications in Kenai Municipal Code Chapter 23.50, and Amending Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23.55. (Administration) Introduced by the consent agenda and public hearing set for May 15. 4. *Ordinance No. 3064-2019 – Increasing Estimated Revenues and Appropriations by $339.90 in the General Fund – Police Department for State Traffic Grant Overtime Expenditures. (Administration) Introduced by the consent agenda and public hearing set for May 15. 5. *Ordinance No. 3065-2019 – Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) Introduced by the consent agenda and public hearing set for May 15. H. COMMISSION/COMMITTEE REPORTS 105 City of Kenai Council Meeting Page 7 of 8 May 1, 2019 1. Council on Aging – restated his report from the April 17 meeting; next meeting May 9. 2. Airport Commission – No report; next meeting May 9. 3. Harbor Commission – No report; next meeting rescheduled to May 13. 4. Parks and Recreation Commission – No report; next meeting May 2. 5. Planning and Zoning Commission – It was reported that at their April 24 meeting the Commission approved a resolution supporting onsite marijuana consumption. Also noted the Commission discussed alcohol establishments not being included in the land use table and commissioners expressed gratitude for training for commissioners in the budget; next meeting May 8. 6. Beautification Committee – No report; next meeting May 14. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Vice Mayor Navarre reiterated that the Mayor had presented proclamations for National Youth Week and Sexual Assault Awareness Month on April 17. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Met with the State of Alaska Department of Environmental Conservation regarding the Kenai River; • The draft budget had been distributed; • Spoke about the City on a radio talk show; • Noted John Wichmann had retired from the fire department; • In discussions regarding consolidating Soldotna and Kenai animal shelters into Kenai’s shelter; • Noted an upcoming Alaska Municipal League meeting regarding online sales tax collection, statewide; • Engaging the federal delegation regarding Wildwood Road ownership; • The next concession being impacted by the Terminal Rehabilitation Project, the advertising concession, would be coming forth for amendments; • Working with the Boys and Girls Club on management of the Recreation Center. 2. City Attorney – No Report. 3. City Clerk – J. Heinz reported the deadline for adopting ballot proposition language was August 7 and a bill to change state election procedures to by mail had been introduced in the legislature. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 106 City of Kenai Council Meeting Page 8 of 8 May 1, 2019 Sherry Innes noted she enjoyed watching the officials discuss the matters before them and appreciated the time taken on the matters adding that government doesn’t have to say “yes” to every request. She also encouraged preservation of the outdoor lifestyle that is prevalent in Kenai and spoke in favor of the local schools. 2. Council Comments Council Member Pettey thanked those that testified. Council Member Glendening thanked Vice Mayor Navarre for running the meeting and thanked the City Manager for updates to the important issues. He also noted he would be absent from the next meeting. Council Member Peterkin appreciated the discussion and thanked the City Manager for his work. Student Representative Summers noted end-of-year testing was taking place and provided an update on upcoming musical competitions. Council Member Molloy thanked the student representative for his report, John Williams for the Cook Inlet Regional Citizen’s Advisory Council report, and Andeavor for the information regarding the project to convert the AK Liquid Natural Gas facility to a cool down facility; commended the Vice Mayor for running a smooth meeting. Council Member Knackstedt expressed gratitude to the Finance Director and staff for the draft budget; attended the Kenaitze ground breaking ceremony for their education complex noting it was a large development that would employ several in the city; attended the banquet for the 2019 Caring for the Kenai project development grant; noted the water line upgrade project at the Kenai Spur Highway at Beaver Loop had not been awarded yet. L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:30 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of May 1, 2019. _____________________________ Jamie Heinz, CMC City Clerk **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. 107 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: MAY 15, 2019 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT PERS PERS VARIOUS LIABILITY 88,696.21 INTEGRITY JANITORIAL APRIL SERVICE AT CITY HALL NON-DEPARTMENTAL REPAIR & MAINTENANCE 1,389.00 PRECIOUS JANITORIAL APRIL SERVICE AT LIBRARY LIBRARY REPAIR & MAINTENANCE 2,795.00 PRECIOUS JANITORIAL APRIL SERVICE AT TERMINAL AIRPORT REPAIR & MAINTENANCE 4,495.00 PRECIOUS JANITORIAL APRIL SERVICE AT POLICE POLICE REPAIR & MAINTENANCE 978.00 PRECIOUS JANITORIAL APRIL SERVICE AT VISITOR CENTER VISITOR CENTER REPAIR & MAINTENANCE 928.00 HOMER ELECTRIC ELECTRICITY USAGE VARIOUS UTILITIES 122,941.57 INVESTMENTS VENDOR DESCRIPTION MATURITY DATE AMOUNT Effect. Int. PIPER JAFFRAY U.S. GOVT SECURITY 5/3/2021 245,000.00 2.45% PIPER JAFFRAY U.S. GOVT SECURITY 5/10/2022 245,000.00 2.45% PIPER JAFFRAY U.S. GOVT SECURITY 4/17/2024 247,361.80 2.8% PIPER JAFFRAY U.S. GOVT SECURITY 5/23/2022 245,000.00 2.45% 108 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: MAY 15, 2019 VENDOR DESCRIPTION DEPT. INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O. # -DEPT. INGRAM LIBRARY SERVICES LIBRARY MATERIALS 117420 -LIBRARY ACCOUNT REASON ADDITIONAL MATERIALS AMOUNT 4,000.00 AMOUNT TOTAL PO AMT 25,000.00 109 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner, Library Director DATE: May 7, 2019 SUBJECT: Increase to Purchase Order 117420 ____________________________________________________________________________ The City Council approved Resolution 2019-11 at their meeting on February 6, 2019. The Resolution awarded a Three Year Agreement to Ingram Content Group for the Purchase of Library Materials and authorized the issuance of a Purchase Order in the Amount of $21,000 for the remainder of Fiscal Year 2019. The Agreement is for a three year term with the option to execute two, one-year extensions. Additional fiscal year Purchase Orders shall total $40,000 per year through the duration of the agreement. At this time the Library Director requests that Purchase Order 117420 be increased in the amount of $4,000. This would bring the total amount of purchase orders to Ingram for Fiscal Year 2019 to $39,000 more accurately representing the amount anticipated when we issued the Request for Proposals and expenditures for future fiscal years as per the agreement. Council consideration is respectfully requested. 110 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: May 3, 2019 SUBJECT: New Liquor License The following establishment submitted an application to the Alcohol and Marijuana Control Office for a new liquor license: • Griffin Golf, LLC D/B/A Kenai Golf Course Pursuant to KMC 2.40, a review of City accounts has been completed on the applicant and they have satisf ied all obligations to the City. With the approval of Council, a letter of non-objection to the new liquor license will be forwarded to the ABC Board and the applicant. Your consideration is appreciated. 111 "Vt1/tlje with a Past, City with a Future" tire city of, KENAl~SKA 'V 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO: FROM: DATE: RE : David Ross, Chief of Police Willie Anderson, Lands Terry Eubank, Finance Department Scott Bloom , Legal Department Elizabeth Appleby, City Planner Jamie Heinz, CMC, City Clerk April 23, 2019 Liquor License Renewal t:d!td mr 1992 12011 The Alcohol & Marijuana Control Office has sent notification that the following applicant has applied for a new Liquor License #5788: Applicant: D/B/A: Griffin Golf, LLC Kenai Golf Course Pursuant to KMC 2.40.010, it is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review account(s) maintained by your department (i.e. water and sewer billings, lease/property payment history, citations, etc.) by the above reference applicant. Initial whether account(s) and/or payment plan(s) are current or delinquent. If accounts are delinquent, attach information to this memorandum indicating amounts owed and for which accounts. Please let me know if you have any questions. Once you have completed your section, please route to the next department. Thanks! 1. Police Department 'J>? initials G~ve reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The ap~ has outstanding obligations and an additional page has been attached. 2. Finance 7L_ initials 0 I have reviewed all records for my department and the applicant is current on obligations or obligations do not exi st. 0 The applicant has outstanding obl igations and an additional page has been attached . 3~1 2 ~ initials ~ I ha ve reviewed all records for my department and the applicant is current on obligations or obligations do not exi st. DThe appl icant has outsta11djng .obligations and an additional page has been attached . 4~s Management ~itials ~ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outstanding obligations and an additional page has been attached . 5. Planning and Zoning €JX initials Q) I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe appl icant has outst din bligations and an additional page has been attached. Returned to Clerk 's office : -1--i-.L->--- 112 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 April 23, 2019 City of Kenai Attn: Jamie Heinz, City Clerk VIA Email: jheinz@kenai.city Cc: cityclerk@kenai.city joanne@borough.kenai.ak.us jblankenship@borough.kenai.ak.us tshassetz@kpb.us License Type: Golf Course License Number: 5788 Licensee: Griffin Golf, LLC Doing Business As: Kenai Golf Course Premises Address: 1500 Lawton Drive ☒ New Application ☐ Transfer of Ownership Application ☐ Transfer of Location Application ☐ Transfer of Controlling Interest Application We have received a completed application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your protest within 60 days and show proof of service upon the applicant. AS 04.11.491 – AS 04.11.509 provide that the board will deny a license application if the board finds that the license is prohibited under as a result of an election conducted under AS 04.11.507. AS 04.11.420 provides that the board will not issue a license when a local governing body protests an application on the grounds that the applicant’s proposed licensed premises are located in a place within the local government where a local zoning ordinance prohibits the alcohol establishment, unless the local government has approved a variance from the local ordinance. Sincerely, Erika McConnell, Director amco.localgovernmentonly@alaska.gov 113 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7'h Avenue, Suit e 1600 Anchorage , AK 99501 alcohol.licensing@a l aska.gov httos://www.commer ce.alaska.gov/web/amco Ph one: 907.269.0350 Form AB-00: New License Application What is this form? Thi s new license applica ti on form is required for all individuals or entities se eking to app ly for a new liq uor lice nse . App licants should review Title 04 of Alaska Statutes and Chapter 304 of the Alaska Administrative Code . A ll fie lds of this form must be completed, per AS 04 .11.260 and 3 AAC 304.105. This form must be completed and submitted to AMCO's main office, along with all other required forms and documents, before any license application will be considered complete. Section 1 -Establishment and Contact Information Enter information for the business seeking to be license d. Licensee: Griffin Golf, LLC License Type: Golf Course I Statutory Reference: I 04 .11 .11s Doing Business As: Kenai Golf Course Premises Address: 1500 Lawton Drive City: Kenai I State: IAK I ZIP: 199611 local Governing Body: City of Kenai Community Council: Kenai City Council Mailing Address: P.O. Box 289 City: Kenai I State: IAK I ZIP : 199611 Designated Licensee: Mark Griffin, Member Contact Phone : 907-690-1398 I Business Phone: I Contact Email: magriff30@hotmail .com Yes No Seasonal License? [{] D If "Yes", write your six-month operating period: April 15-0ctober 15 Complete Date: I Board Meeting Date: Issue Date: [Form AB-00) (re v 10/10/2016) OFFICE USE ONLY License Years : Transaction #: BRE: AMCO ilAR 1 s 201 9 License#: I s7~ct /041l~ T-..J 2_ Page 1of 5 114 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licensing@alaska .gov https://www.commerce.alaska .gov/web/amco Phone: 907.269.0350 Form AB-00: New License Application Premises to be licensed is: [{] an existing facility Section 2 -Premises Information D a new building D a proposed building The next two questions must be completed by beverage dispensary (including tourism) and package store applicants only: What is the distance of the shortest pedestrian route from the public entrance of the building of your proposed premises to the outer boundaries of the nearest school grounds? Include the unit of measurement in your answer. What is the distance of the shortest pedestrian route from the public entrance of the building of your proposed premises to the public entrance of the nearest church building? Include the unit of measurement in your answer . Section 3 -Sole Proprietor Ownership Information This section must be completed by any sole proprietor who is applying for a license. Entities should skip to Section 4. If more space is needed, please attach a separate sheet with the required information. Th e following information must be completed for each licensee and each affiliate (spouse). This individual is an: D applicant Oaffiliate Name : Address: City: I State: I I ZIP : I This individual is an: D applicant Oaffiliate Name: Address: City: I State: I I ZIP: I [Form AB-00] (rev 10/10/2016} MAR i s·zo1s 115 Alaska Alcoholic Beverage Control Board Alcohol and Ma rijuana Co ntrol Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licensing@alaska .gov https ://www.commerce .alaska .gov/web/amco Phone: 907.2 69.0350 Form AB-00: New License Application Section 4 -Entity Ownership Information This section must be completed by any entity, including a corporation, limited liability company (LLC), partnership, or limited partnership, that is applying for a license. Sole proprietors should skip to Section 5. If more space is needed, please attach a separate sheet with the required information. • If the applicant is a corporation, the following information must be comp leted for each stockholder who owns 10% or more of the stock in the corporation, and for each president, vice-president, secretary, and managing officer. • If the applicant is a limited liability organization, the fo llowing information must be completed for each member with an ownership interest of 10% or more, and for each manager. • If the app licant is a partnership. including a limited partnership. the following i nformation must be completed for each partner with an interest of 10% or more, and for each general partner. Entity Official: Mark Griffin Title{s): Member Address: 4 7083 Belmont Court City: Kenai Entity Official: Lara Griffin Title(s): Member Address: 47083 Belmont Court City: Kenai Entity Official: Title(s): Address: City: Entity Official : Title(s): Address: City: [Form AB-OOJ (rev 10/10 /2016) Phone: %Owned: 50 State: AK ZIP: 99611 I Phone: I '107 :39'55°A16 I %Owned: !so I State: IAK I Phone: I I State: I I Phone: I j State: I AMCO MAR 13 2019 I ZIP: 199611 I %Owned: I I ZIP: I I %Owned: I I ZIP: I Page 3 ofS 116 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Co ntrol Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licensing@alaska .gov https://www.commerce .alaska .gov/web/amco Phone: 907.26 9.0350 Form AB-00: New License Application This subsection must be completed by any applicant that is a corporation or LLC. Corporations and LLCs are required to be in good standing with the Alaska Division of Corporations (DOC) and have a registered agent who is an individual resident of the state of Alaska. DOC Entity#: 10095955 j AK Formed Date: 12/11/2018 Home State : I AK Registered Agent: Mark Griffin Agent's Phone : 907-690-1398 Agent's Mailing Address: 4 7083 Belmont Court City: Kenai I State: AK ZIP: Residency of Agent: Is your corporation or LLC's registered agent an individual resident of the state of Ala ska? Section 5 -Other Licenses Ownership and financial interest in other alcoholic beverage businesses: Does any represe ntative or owner n am ed in this application have any dir ect or indir ect fi nancial int erest in any othe r alcoholic b eve rag e bu siness t hat does bu siness in or is licensed in Ala ska? 199611 Ye s No 00 Yes No 0 0 If ''Yes", disclose which individual(s) has the financial interest, what the type of business is, and if licensed in Alaska, which license number(s) and license type(s): Section 6 -Authorization Communication with AMCO staff: Does any person other t ha n a licensee n am ed in this appli cation have authority to discuss th is licen se w ith AMCO staff? If ''Yes", disclose the name of the individual and the reason for this authorization: I G regory D . Stein, Attorney [Form AB-00) (rev 10/10/2016 ) AMCO MAR 13 2019 Ye s No 00 Page 4 of 5 117 Alcohol and Marijuana Control Office 550 W 7'h Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licensing@alaska .gov https ://www.commerce.alaska .gov/web/amco Phone: 907.269.0350 Alaska Alcoholic Beverage Control Board Form AB-00: New License Application Section 7 -Certifications Read each line below, and then sign your initials in the box to the right of each statement: I certify that all proposed lice n sees (a s defined in AS 04.11.260) and affiliates have been listed on this application. I certify that all propose d licensees have been listed with the Divi sion of Corporations. I certify that I understand that providing a false statement on this form or any other form provided by AMCO is grounds for rejection or denial of this application or revoca tion of any license is su ed . I certify that all licensees, agents, and employees who sell or serve alcoholic beverage s or check the identification of a patron will complete an approved alcohol serv er education course, if required by AS 04 .21.025, and, while selling or serving alcoholic b eve rages , will carry or have available to show a current course card or a photocopy of the card certifying completion of approved alcohol serve r education course, if r equi r ed by 3 AAC 304.465. I agree t o provide all information r equ ired by the Alcoholic Beverage Control Board in support of this application . Initials As an applicant for a liquor license, I declare under p enalty of perjury that I have read and am familiar with AS 04 and 3 AAC 304, and that th is application, including all accomp anying sche dules and statements, is true, correct, and complete. s~ Notary Public in and for the State of~fr~l~c.~J~K~5------ Prin t ed name of licensee My commission expires: __ .r_,1-/_3"""'/........,~'""'I.__ __ Subscri bed and sworn to before me this ~ day of f < (,., ""1 ..----G~R~E~G~O~R~Y~D -. ~ST~E~l ~N ----. Notary Public State of Alaska '20J_j_ . My Commission Expires May 03, 2021 (Form AB-00] (rev 10/10/20 16) AMCO MAR 13 2019 Page Sof 5 118 AMCO Received 4/23/2019 119 AMCO Received 4/23/2019 120 AMCO Received 4/23/2019 121 AMCO Received 4/23/2019 122 AMCO Received 4/23/2019 123 !'1ertv. Ho"t, Do3 Ckeesebv'Jer Phl lly Ch.ee!>e-S~ 5tM,)t4;,'d, er~K.+~$t S~,,,.;,'clt a:f5 Nuts -rr~: lmlx c°'J;!Oar5 GlfM . St>J.~ . vJ"'ier P6wer~e. JA:.e r~ 6-t~ee- f;eer vJ ~rte. . c.;Jer . t'lv#:Y\J ,_. .f3~n~fl.tt$ 124 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Office of the Borough Clerk Johni Blankenship, MMC Borough Clerk Office of the Borough Clerk 4/25/2019 Sent via email: jheinz@kenai.city Kenai City Hall City of Kenai RE: Non-Objection of Application Dear Ms. Heinz, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/TS Encl. cc: magriff30@hotmail.com; jheinz@kenai.city; DHenry@kpb.us; JRodgers@kpb.us Licensee/Applicant : Griffin Golf, LLC Business Name : Kenai Golf Course License Type : Golf Course License Location : 1500 Lawton Drive , City of Kenai License No. : 5788 Application Type : New Liquor License 125 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Suggested by: Administration CITY OF KENAI ORDINANCE NO. 3066-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION FOR THE 2019 AIRFIELD MARKING, CRACK SEALING, AND MINOR PAVEMENT REPAIR PROJECT AND AWARDING A CONSTRUCTION CONTRACT TO COMPLETE THE WORK. WHEREAS, the runway and taxiway centerlines, hold lines, surface painted position signs, and apron markings require remarking due to fading, rubber marks, and the lack of reflective beads; and, WHEREAS, Federal Aviation Grant Assurance No. 11 requires the City to assure or certify that it has implemented an effective airport pavement maintenance-management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed or repaired with Federal financial assistance at the Kenai Municipal Airport; and, WHEREAS, the Federal Aviation Administration agreed that the marking and crack sealing on the runway, taxiways and apron and the minor pavement repair in the safety area of the runway is grant eligible; and, WHEREAS, Ordinance No. 3046-2018 SUBSTITUTE enacted December 19, 2019 appropriated $26,000 for the design of this project which was awarded to Wince-Corthell-Bryson; and, WHEREAS, the Administration has received confirmation these services are eligible for 93.75% Federal Aviation Administration (FAA) reimbursement, $XXX, XXX with the remaining and 6.25% of project costs, $XX, XXX to be provided by the City of Kenai; and, WHEREAS, XXX bids were received and XXXXXXXX, Inc. was the lowest responsive bid; and, WHEREAS, award of the bid to XXXXXXX, Inc. would be in the best interest of the City; and, WHEREAS, the recommendation from City Administration is to award the contract to XXXXXXX, Inc. for the total cost of $X,XXX, XXX. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA Section 1. That the City Manager is authorized to accept grant funding for $X,XXX,XXX from the Federal Aviation Administration and to execute a grant agreement and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 2. That estimated revenues and appropriations be increased as follows: Airport Improvement Capital Project Fund Increase Estimated Revenues - Federal Grant $X, XXX, XXX 126 Ordinance No. 3066-2019 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Increase Appropriations Construction $X, XXX, XXX Administration XX, XXX $XXX, XXX Section 3. That the City Manager is authorized to execute a construction contract to XXXXX, Inc., for $X, XXX, XXX. Section 4. That the City Manager is authorized to issue a purchase order to XXXXXX, Inc., in the amount of $X, XXX, XXX. Section 5. That the City Manager is authorized to execute an Amendment to the Professional Services Agreement with Wince-Corthell-Bryson in the amount of $ 63,020 for construction administration services. Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5TH day of June, 2019. ____________________________________ BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________ Introduced: May 15, 2019 Enacted: June 5, 2019 Effective June 5, 2019 127 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant, Airport Manager DATE: May 6, 2019 SUBJECT: Ordinance 3066-2019 – Airfield Marking, Crack sealing, & Minor Pavement Repair The Airport received notification from the FAA to move forward with the Invitation to Bid for the above FY19 project. This project consists of airfield painting, the crack sealing of the runway, taxiways and apron, apron seal coating, and minor pavement repair along the shoulders of the runway. The project will be advertised the week of May 6, 2019 for 21 days. Bid review and recommendation will be presented to Council at the June 5, 2019 meeting. This ordinance provides for acceptance of a grant from the Federal Aviation Administration and execution of a construction contract to the successful bidder with a corresponding purchase order and authorization to amend the professional services contract to Wince-Corthell-Bryson for construction management. Thank you for your consideration. 128 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3067-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING $26,605.40 IN ASSET FORFEITURE SHARING FUNDS AND APPROPRIATING THOSE FUNDS INTO THE POLICE SMALL TOOLS ACCOUNT FOR THE PURPOSE OF PURCHASING LAW ENFORCEMENT EQUIPMENT. WHEREAS, in April of 2019 Kenai Police Department received an asset forfeiture sharing check in the amount of $26,605.40 from the Alaska State Troopers, Alaska Bureau of Investigations – Statewide Drug Enforcement Unit; and, WHEREAS, the Police Department, pursuant to conditions of acceptance, will utilize the forfeiture funds to purchase law enforcement equipment for use by the Police Department. 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 Equitable Sharing Funds in the amount of $26,605.40 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 $26,605.40 Increase Appropriations – Police – Small Tools $26,605.40 . 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. 129 Ordinance No. 3067-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of June, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________ Introduced: May 15, 2019 Enacted: June 5, 2019 Effective: June 5, 2019 130 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: May 2, 2019 SUBJECT: Ordinance No. 3067-2019 - Ordinance Accepting and Appropriating Asset Forfeiture Sharing Funds from the State of Alaska Department of Public Safety ______________________________________________________________________ The Kenai Police Department received $26,605.40 in asset forfeiture sharing funds from the State of Alaska Department of Public Safety. Those funds were shared with the Kenai Police Department after being forfeited to the State of Alaska through Federal court and are subject to federal “Equitable Sharing” requirements to be use for Law Enforcement. The funds were forfeited in connection with drug investigation cases, for which the regional drug task force (including the Kenai Police Department) was involved. I am respectfully requesting consideration of the ordinance appropriating $26,605.40 into the General Fund, Police- Small Tools account to pay for law enforcement equipment. Your consideration is appreciated. 131 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Members Pettey and Glendening CITY OF KENAI ORDINANCE NO. 3068-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 14.20.320- DEFINITIONS AND 14.20.330- STANDARD FOR COMMERCIAL MARIJUANA ESTABLISHMENTS TO PROHIBIT ONSITE CONSUMPTION OF MARIJUANA AT RETAIL MARIJUANA STORES REQUIRING AN ONSITE CONSUMPTION ENDORSEMENT. WHEREAS, on November 4, 2014, the Alaskan voters passed Ballot Measure 2, an Act to Tax and Regulate the Production, Sale and Use of Marijuana; and, WHEREAS, on January 20, 2016 the City of Kenai enacted regulations governing commercial marijuana establishments in the City; and, WHEREAS, on March 12, 2019 Lieutenant Governor Kevin Meyer signed into law new regulations from the Marijuana Control Board allowing retail marijuana stores to allow onsite consumption of marijuana under certain conditions through a state issued onsite consumption endorsement to a retail marijuana store; and, WHEREAS, 3 AAC 306.200 provides that a City Council by ordinance may prohibit onsite consumption endorsements to a retail marijuana store within its jurisdiction; and, WHEREAS, after consideration by the Planning and Zoning Commission, the City Council failed to enact Ordinance 3061-2019, which would have allowed onsite consumption through the City’s conditional use permit process; and, WHEREAS, it is in the best interest for public safety and welfare for the City to prohibit onsite consumption of marijuana requiring an onsite consumption endorsement at retail marijuana stores; and, WHEREAS, at it’s regular meeting of May 22, 2019 the Planning and Zoning Commission recommended the City Council ____________ this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 14.20.320 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.20.320 - Definitions, is hereby amended as follows: 14.20.320 Definitions. (a) General Interpretation. 132 Ordinance No. 3068-2019 Page 2 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (1) Words used in the present tense include the future tense. (2) The singular number includes the plural. (3) The word “person” includes a corporation as well as an individual. (4) The word “lot” includes the word “plot” or “parcel.” (5) The term “shall” is always mandatory. (6) The word “used” or “occupied” as applied to any land or building shall be construed to include the words “intended,” “arranged” or “designed to be used or occupied.” (b) Specific Definitions. “Accessory Building” means a detached building or structure, the use of which is appropriate, subordinate, and customarily incidental to that of the main building or to the main use of the land and which is located on the same lot as the main building or use, except as allowed by a conditional use permit. An accessory building shall be considered to be a part of the main building when joined to the main building by a common wall or when any accessory building and the main building are connected by a breezeway. “Accessory Use” means a use customarily incidental and subordinate to the principal use of the land, building, or structure and located on the same lot or parcel of land. “Administrative Official” means the person charged with the administration and enforcement of this chapter. “Agricultural Building” means a building or structure used to shelter farm implements, hay, grain, poultry, livestock, or other farm produce, in which there is no human habitation and which is not used by the public. “Agriculture” means the science, art, and business of cultivating soil, producing crops, and raising livestock; farming. “Airport” means a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport. An airport consists of at least one (1) surface such as a paved or gravel runway, a helicopter touchdown and lift off (TLOF) area, helipad, or water runway for aircraft takeoffs and landings, and often includes buildings such as control towers, hangars and terminal buildings. “Airport Compatible Uses” means uses which include, but are not limited to: Hangars, Fixed Base Operators, Aircraft Repair and Manufacturing, Aircraft Sales, and other uses 133 Ordinance No. 3068-2019 Page 3 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] approved by the Ordinance of the City of Kenai, and the Federal Aviation Administration’s regulations, and compatible with the current Airport Master Plan, the Airport Layout Plan and the Comprehensive Plan. “Alley” means a public way designed and intended to provide only a secondary means of access to any property abutting thereon. “Alteration” means any change, addition, or modification in construction, location, or use classification. “Animal Boarding” means any building or structure and associated premises in which animals are fed, housed, and/or exercised for commercial gain. “Apartment House,” see “Dwelling, multiple-family.” “Area, Building” means the total of areas taken on a horizontal plane at the main grade level of the principal building and all accessory buildings, exclusive of steps. “Assemblage” means a large gathering of people for an event such as a concert, fair, or circus. “Assisted Living” means a living arrangement in which people with special needs, especially seniors with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. “Automobile Sales” means the use of any building or structure and associated premises for the display and sale of new or used automobiles, panel trucks or vans, trailers, or recreation vehicles and including any warranty repair work and other repair service conducted as an accessory use. “Automobile Service Station” means the use of any building or structure and associated premises or other space used primarily for the retail sale and dispensing of motor fuels, tires, batteries, and other small accessories; the installation and servicing of such lubricants, tires, batteries, and other small accessories; and such other services which do not customarily or usually require the services of a qualified automotive mechanic. “Automobile Wrecking” means the dismantling of used motor vehicles or trailers or the storage or sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. 134 Ordinance No. 3068-2019 Page 4 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Automotive Repair” means the use of any building or structure and associated premises on which a business, service, or industry involving the maintenance, servicing, repair, or painting of vehicles is conducted or rendered. “Bank” means any establishment or building or structure used for a financial institution that provides financial services for its clients or members. The term “bank” includes savings and loan. “Bed and Breakfast” means a residential, owner-occupied dwelling in which rooms are rented to paying guests on an overnight basis with no more than one (1) meal served daily. “Boarding House” means a dwelling where the principal use is a dwelling by the owner or keeper and where the owner or keeper provides lodging for three (3) or more persons who are not members of the owner’s or keeper’s family and the lodgers pay compensation to use one (1) or more rooms. The common parts of the building or structure are maintained by the owner or keeper who may also provide lodgers with some services, such as meals, laundry, and cleaning. Boarding houses are not motels or hotels and are not open to transient guests. “Building” means any structure built for the support, shelter, or enclosure of persons, animals, or property of any kind. “Building Code” means the building code and/or other building regulations applicable in the City. “Building, Existing” means a building erected prior to the adoption of the ordinance codified in this chapter or one for which a legal building permit has been issued. “Building Height” means the vertical distance from the “grade,” as defined herein, to the highest point of the roof. “Building, Principal or Main” means a building or structure in which is conducted the principal or main use on the lot which said building is situated. “Business/Consumer Services” means the provision of services to others on a fee or contract basis, such as advertising and mailing; building maintenance; employment service; management and consulting services; protective services; equipment rental and leasing; commercial research; development and testing; photo finishing; and personal supply services. “Cabin Rentals” means the renting out of one (1) or more individual, detached dwelling units or buildings to provide overnight sleeping accommodations for a period of less than thirty (30) consecutive days. 135 Ordinance No. 3068-2019 Page 5 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Cemetery” means any property used to inter the dead in buried graves or in columbarium, stacked vaults, or similar structures. “Centerline” means the line which is in the center of a public right-of-way. “Church” means a building or structure in which persons regularly assemble for worship, ceremonies, rituals, and education pertaining to a particular system of beliefs. The term “church” includes a synagogue or temple. “City” means the City of Kenai, Alaska. “Clinic” (or outpatient clinic or ambulatory care clinic) means a health care facility that is primarily devoted to the care of outpatients. Clinics can be privately operated or publicly managed and funded, and typically cover the primary health care needs of populations in local communities, in contrast to larger hospitals which offer specialized treatments and admit inpatients for overnight stays. “Collector Street” means a street located and designed for the primary purpose of carrying through traffic and of connecting major areas of the City. Unless otherwise designated by the Commission, collector street shall be defined on the plan for streets and community facilities in the comprehensive development plan. “College” means an educational institution providing postsecondary (after high school) education. “Commercial Kennel” has the same meaning given in KMC 3.05.010. “Commercial Marijuana Establishment” means any Retail Marijuana Store excluding onsite consumption endorsements, Marijuana Cultivation Facility, Marijuana Product Manufacturing Facility, and Marijuana Testing Facility. “Commercial Recreation” means a recreation facility operated as a business and open to the public for a fee. “Commission” means the Kenai Planning and Zoning Commission. “Communication Antenna” has the same meaning given in KMC 14.20.255. “Communication Tower” has the same meaning given in KMC 14.20.255. “Conditional Use” means a use which is permitted under the terms of this chapter provided that under the specified procedures, the Commission finds that certain conditions, specified in this chapter are fulfilled. Conditional uses are listed in the Land Use Table. 136 Ordinance No. 3068-2019 Page 6 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Condominium” means a common interest ownership dwelling in which: (1) Portions of the real estate are designated for separate ownership; (2) The remainder of the real estate is designated for common ownership solely by the owners of those portions; (3) The undivided interests in the common elements are vested in the unit owners. In the Land Use Table (KMC 14.22.010), “condominiums” shall be treated as two (2) or more family dwellings. For example, a four (4) unit condominium building would be treated as a four (4) family dwelling. “Coverage” means that percentage of the total lot area covered by the building area. “Crematory/Funeral Home” means building or structure used for preparation of the deceased for display and/or interment and may also be used for ceremonies connected with interment. Preparation may include cremation, which is the process of reducing dead bodies to basic chemical compounds in the form of gases and bone fragments. This is accomplished through burning—high temperatures, vaporization, and oxidation. “Day Care Center” means an establishment where child care is regularly provided for children for periods of less than twenty-four (24) hours, including the building housing the facility and adjoining areas, and where tuition, fees, or other compensation for the care of the children is charged. “Dormitory” means a building, whether public or private, associated with a school, college or university and designed, used, and arranged for private sleeping, studying, and living accommodation for students. “Dwelling” means a building or any portion thereof designed or used exclusively for residential occupancy including one-family, two-family and multiple-family dwellings, but not including any other building wherein human beings may be housed. “Dwelling, One-Family” means any detached building containing only one (1) dwelling unit. “Dwelling, Two-Family” means any building containing only two (2) dwelling units. “Dwelling, Multiple-Family” means any building containing three (3) or more dwelling units. “Dwelling Unit” means one (1) or more rooms and a single kitchen in a dwelling designed as a unit for occupancy by not more than one (1) family for living or sleeping purposes. 137 Ordinance No. 3068-2019 Page 7 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Elementary School” means any school usually consisting of grades pre-kindergarten through grade 6 or any combination of grades within this range. “Essential Service” means the erection, construction, alteration, or maintenance by public utility companies or municipal departments or commissions, of underground or overhead gas, electrical, steam, or water transmission or distribution systems, collection, communication, supply, or disposal systems, including poles, wires, mains, drains, sewers, pipes, conduits, cables, fire alarm boxes, traffic signals, hydrants, and other similar equipment and accessories in connection therewith. This definition shall not be interpreted to include public buildings. “Family” means any number of individuals living together as a single housekeeping unit in a dwelling unit. “Farming” means a tract of land cultivated for the purpose of commercial agricultural production. “Fence, Height” means the vertical distance between the ground directly under the fence and the highest point of the fence. “Floor Area” means the total of each floor of a building within the surrounding outer walls but excluding vent shafts and courts. “Fraternal Organization” means a group of people formally organized for a common object, purpose, or interest (usually cultural, religious or entertainment) that conducts regular meetings and has written membership requirements. “Frontage” means all the property fronting on one (1) side of a street between intersection streets. “Garage, Private” means an accessory building or any portion of a main building used in connection with residential purposes for the storage of passenger motor vehicles. “Garage, Public” means any garage other than a private garage, available to the public, operated for gain, and which is used for storage, repair, rental, greasing, washing, servicing, adjusting, or equipping of automobiles or other vehicles. “Gas Manufacturer/Storage” means the surface use of lands used in the production, the mechanical transformation, or the chemical transformation of hydrocarbon gas and includes uses for gas conditioning/compressor stations. “Storage” means surface uses necessary for storage of produced or non-native natural gas. 138 Ordinance No. 3068-2019 Page 8 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Governmental Building” means a building or structure owned and operated by any department, commission, or agency of the United States or of a state or municipality and used to conduct official business of government. “Grade (Ground Level)” means the average level of the finished ground at the center of all walls to a building. In case walls are parallel to and within five (5) feet of a public sidewalk, the ground level shall be measured at the sidewalk. “Greenhouse” means a building or structure, usually a glassed or clear plastic enclosure, used for the cultivation and protection of plants. “Guest Room” means any room in a hotel, dormitory, boarding, or lodging house used and maintained to provide sleeping accommodations for one (1) or more persons. “Guide Service” means any activity on any premises used for collecting or returning persons from recreational trips when remuneration is provided for the service. “Gunsmith” means a person who repairs, modifies, designs, or builds firearms. “High School” means a secondary school usually consisting of grades 9 through 12 or any appropriate combination of grades within this range. “Home Occupation” means an accessory use carried out for remuneration by a resident in the resident’s dwelling unit. “Hospital” means an institution that provides medical, surgical, or psychiatric care and treatment for the sick or the injured. “Hotel” means a building or group of buildings containing more than five (5) guest rooms used for the purpose of offering public lodging on a day-to-day basis with or without meals. “Junkyard” means any space one hundred (100) square feet or more of any lot or parcel of land used for the storage, keeping, or abandonment of junk or waste material, including scrap metals or other scrap materials, or for the dismantling, demolition, or abandonment of automobiles, other vehicles, machinery, or any parts thereof. “Library” means a collection of sources, resources, and services, and the structure in which it is housed; it is organized for use and maintained by a public body, an institution, or a private individual. “Licensed Premises For Commercial Marijuana Establishment” means any and all designated portions of a building or structure, or rooms or enclosures in the building or structure, at the specific address for which a Commercial Marijuana Establishment license is 139 Ordinance No. 3068-2019 Page 9 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] issued, and used, controlled, or operated by the Commercial Marijuana Establishment to carry out the business for which it licensed. “Loading Space” means an off-street space or berth on the same lot with a building or structure to be used for the temporary parking of commercial vehicles while loading or unloading merchandise or materials. “Lodge” means a building or group of buildings containing five (5) or fewer guest rooms used for the purpose of offering public lodging on a day-to-day basis with or without meals. “Lot” means a parcel of land occupied or to be occupied by a principal use and having frontage on a public street. “Lot, Corner” means a lot situated at the junction of, and bordering on, two (2) intersecting streets, two (2) platted rights-of-way, two (2) government easements, or any combination thereof. “Lot Coverage” means that portion of the lot covered by buildings or structures that require a building permit. “Lot Depth” means the horizontal distance separating the front and rear lot lines of a lot and at right angles to its width. “Lot Line, Front-Corner Lot” means the shortest street line of a corner lot. “Lot Line, Front-Interior Lot” means a line separating the lot from the street. “Lot Line, Rear” means a line that is opposite and most distant from the front lot line, and in the case of irregular, triangular, or gore shaped lot, a line not less than ten feet (10') in length, within a lot, parallel to and at the maximum distance from the front lot line. “Lot Line, Side” means any lot boundary line not a front lot line or a rear lot line. “Lot Width” means the mean horizontal distance separating the side lot lines of a lot and at right angles to its depth. “Manufactured Housing” means a dwelling unit that meets Department of Housing and Urban Development Standards for manufactured housing and is wider than sixteen feet (16'), has a roof pitch of 4:12 or greater with roofing and siding common to standard residential construction and is transported to the site and placed on a permanent foundation. “Manufacturing/Fabricating/Assembly” means the mechanical or chemical transformation of materials or substances into new products including assembling of components parts, the 140 Ordinance No. 3068-2019 Page 10 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] manufacturing of products, and the blending of materials such as lubricating oils, plastics, resins or liquors. “Marijuana” means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. The term does not include fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products. “Marijuana Concentrate” means resin, oil, wax, or any other substance derived from the marijuana plant by any method which isolates the Tetrahydrocannabinol (THC)-bearing resins of the plant. “Marijuana Cultivation Facility” means any entity with a state license registered to cultivate, prepare, and package marijuana and to sell marijuana to Marijuana Retail Facilities, Marijuana Products Manufacturing Facilities, Marijuana Testing Facilities, but not to consumers. “Marijuana Cultivation Facility, Standard” means an entity registered to cultivate in an area greater than 500 square feet under cultivation, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. “Marijuana Cultivation Facility, Limited” means an entity registered to cultivate in an area of 500 square feet or less of cultivation, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. “Marijuana Products” means concentrated marijuana and marijuana products that are comprised of Marijuana and other ingredients and are intended for use or consumption, such as, but not limited to edible products, ointments, and tinctures. “Marijuana Product Manufacturing Facility” means a state licensed fully enclosed secure indoor facility registered to purchase marijuana, manufacture, prepare and package marijuana products, and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers. 141 Ordinance No. 3068-2019 Page 11 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Marijuana Testing Facility” means a state licensed commercial marijuana testing facility that is registered to analyze and certify the safety and potency of Marijuana and Marijuana Products. “Mini-Storage Facility” means a completely enclosed structure containing three (3) or more areas or rooms available for lease or rent for the purpose of the general storage of household goods, vehicles or personal property; where the lessee of the unit is provided direct access to deposit or store items and where vehicles do not fill the majority of the allowed storage space. “Mobile Home” means a structure, which is built on a permanent chassis in accordance with Department of Housing and Urban Development Standards and designed to be used as a dwelling unit, with or without a permanent foundation when connected to the required utilities. A mobile home is subject to all regulations applying thereto, whether or not wheels, axles, hitch or other appurtenances of mobility are removed and regardless of the nature of the foundation provided. “Mobile Home Park” means a site with required improvements and utilities for the long-term parking of mobile homes which may include services and facilities for the residents. “Modular Home” means a dwelling constructed in modules or sections at a place other than the building site, built to conform to Title 4 of the Kenai Municipal Code, is transported to the site and then assembled and placed on a permanent foundation. “Motel” means a group of one (1) or more detached or semi-detached buildings containing two (2) or more individual dwelling units and/or guest rooms designed for, or used temporarily by, automobile tourists or transients, with a garage attached or parking space conveniently located to each unit, including groups designated as auto courts, motor lodges, or tourist courts. “Museum” means a building or structure that houses and cares for a collection of artifacts and other objects of scientific, artistic, or historical importance and makes them available for public viewing through exhibits that may be permanent or temporary. “Necessary Aviation Facilities” means any air navigation facility, airport visual approach aid, airfield lighting and signage, meteorological device or any type of device approved by the Federal Aviation Administration (FAA), the location and height of which is fixed by its functional purpose. 142 Ordinance No. 3068-2019 Page 12 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Nonconforming Lot” means a lot lawfully existing at the time this chapter became effective, which by reason of area or dimensions, does not meet the development requirements for the zone in which it is located. “Nonconforming Structure” means a structure or portion thereof, lawfully existing at the time this chapter became effective, which by reason of its yards, coverage, height, or other aspects of design, does not meet the development requirements of this zone. “Nonconforming Use” means a use of a structure of land, or of a structure and land in combination, lawfully existing at the time this chapter became effective, or established on the premises of a previous nonconforming use as specified in this chapter, which is not in conformity with the uses permitted in the zone in which it exists. “Nursing, Convalescent or Rest Home” means a building or structure used as a residence for people who require constant nursing care and/or have significant deficiencies with activities of daily living. “Office” means a room or group of rooms used for conducting the affairs of a business, profession, service, industry, or government. “Onsite Consumption Endorsement” means the state regulated consumption of certain marijuana products at or adjacent to a retail marijuana store by patrons of the commercial marijuana establishment. “Park” means a tract of land, designated by a public entity for the enjoyment of the public and generally used for active and passive recreational activities. “Parking, Public Lots” means a parking area available to the public, whether or not a fee for use is charged. “Parking Space, Private” means any automobile parking space, excluding garages, not less than nine feet (9') wide and one hundred eighty (180) square feet in total area. “Parking Space, Public” means an area of not less than one hundred eighty (180) square feet exclusive of drives or aisles giving access thereto in area accessible from streets and alleys for the storage of passenger motor vehicles operated by individual drivers. “Person” means a natural person, his or her heirs, executors, administrators, or assigns, and also including firm, partnership, or corporation, or their successors and/or assigns or the agent of any of the aforesaid. 143 Ordinance No. 3068-2019 Page 13 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Personal Services” mean establishments engaged in providing services involving the care of a person or his or her apparel. “Planned Unit Residential Development” means an alternative method of development of a residential neighborhood under more flexible conditions than otherwise required in a specific zoning district. “Principal Use” means the major or predominant use of a lot or parcel of land. “Profession” means an occupation or calling requiring the practice of a learned art through specialized knowledge based on a degree issued by an institution of high learning, e.g., Doctor of Medicine. “Property Owner” means the owner shown on the latest tax assessment roll. “Public” means a place to which the public or a substantial group or persons has access and includes highway, rivers, lakes, transportation facilities, schools, places of amusement or business, parks, playgrounds, prisons, hallways, lobbies and other parts of apartments houses and hotels not constituting rooms or apartments designed for actual residence. “Recreation” means leisure activities sometimes requiring equipment and taking place at prescribed places, sites, parks, or fields. It can include active recreation, such as structured individual or team activities requiring the use of special facilities, courses, fields or equipment or passive recreation, such as activities that do not require prepared facilities such as wildlife and bird viewing, observing and photographing nature, picnicking, and walking. “Recreational Vehicle” means a vehicular-type unit, primarily designed as temporary living quarters for recreational camping, or travel use, which either has its own motor power or is mounted on or drawn by another vehicle. Recreational vehicles include, but are not limited to, travel trailers, camping trailers, truck campers, and motor homes. “Recreational Vehicle Park” means an area established by a conditional use permit for the parking of two (2) or more recreational vehicles on a temporary basis. “Recreation or Youth Center” means a building, structure, athletic playing field, or playground, run or created by a local government or the state to provide athletic, recreational, or leisure activities for minors, or operated by a public or private organization, licensed to provide shelter, training, or guidance for persons under 21 years of age. “Restaurant” means an establishment where food and drink is prepared, served, and consumed primarily within the principal building. 144 Ordinance No. 3068-2019 Page 14 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Retail Business” means establishments engaged in selling goods or merchandise to the general public for business or personal/household consumption and rendering services incidental to the sale of such goods. “Retail Marijuana Store” means a state licensed entity registered to purchase marijuana from a marijuana cultivation facility, to purchase marijuana and marijuana products from a marijuana manufacturing facility, and sell marijuana and marijuana products to consumers. “Secondary Use” means a use allowed on a lot or parcel of land only if there is also an allowed principal use on the property. “Sign” means any words, letters, parts of letters, figures, numerals, phrases, sentences, emblems, devices, trade names, or trademarks by which anything is made known, such as are used to designate an individual, firm, association, corporation, profession, business, or a commodity or product, which are visible from any public street or highway and used to attract attention. “Square Feet Under Cultivation” means an area of the licensed premises of a standard or limited cultivation facility that is used for growing marijuana, measured on the perimeter of the floor or growing space for marijuana “Square Feet Under Cultivation” does not include hallways, equipment storage areas, or other areas within the licensed premises that are not used for growing marijuana such as an office, or a processing or storage area. “State Highway” means a right-of-way classified by the State of Alaska as a primary or secondary highway. “Storage Yard” means a lot used primarily for the storage of operational vehicles, construction equipment, construction materials or other tangible materials and equipment. “Street” means a public right-of-way used as a thoroughfare and which is designed and intended to provide the primary means of access to property abutting thereon. “Structure” means that which is built or constructed, an edifice or a building of any kind, composed of parts joined together in some definite manner. “Subsurface Extraction of Natural Resources” means removing valuable minerals or other geological materials from the earth, from an ore body, vein or (coal) seam. Materials recovered could include gas, oil, base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock salt and potash. “Surface Extraction of Natural Resources” means removal of material, usually soil, gravel, or sand for use at another location. 145 Ordinance No. 3068-2019 Page 15 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Taxidermy” means the act of mounting or reproducing dead animals, fish, and/or birds for display. “Theater” means a building or structure, or part thereof, devoted to the indoor exhibition of motion pictures and/or of live dramatic, speaking, musical, or other presentations. “Townhouse” means single-family dwelling units constructed in a series or group of two (2) or more units separated from an adjoining unit by an approved party wall or walls, extending from the basement of either floor to the roof along the linking lot line. “Tree Nursery” means a place where trees/plants are propagated and grown to usable size. “Use” means the purpose for which land or a building is arranged, designed, or intended, or for which either land or a building is or may be occupied or maintained. “Variance” means the relaxation of the development requirements of this chapter to provide relief when the literal enforcement would deprive a property owner of the reasonable use of his or her real property. “Warehouse” means a building or structure used for the storage of goods, wares and merchandise that will be processed, sold or otherwise disposed of off of the premises. “Wholesale Business” means business conducted primarily for the purpose of selling wares or merchandise in wholesale lots to retail merchants for resale. “Yard” means an open, unoccupied space, other than a court, unobstructed from the ground to the sky, except where specifically provided by this chapter, on the same lot on which a building is situated. “Yard, Front” means a yard extending across the full width of the lot between the front lot line of the lot and the nearest exterior wall of the building which is the nearest to the front lot line. “Yard, Rear” means a yard extending across the full width of the lot between the most rear main building and the rear lot line. “Yard, Side” means a yard on each side of a main building and extending from the front lot line to the rear lot line. The width of the required side yard shall be measured horizontally from the nearest point of a side lot line to the nearest part of the main building. “Zoning Change” means the alteration or moving of a zone boundary; the reclassification of a lot, or parcel of land, from one zone to another; and the change of any of the regulations contained in this chapter. 146 Ordinance No. 3068-2019 Page 16 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] “Zoning Ordinance or Ordinances” mean the zoning ordinance of the City of Kenai and Kenai Municipal Code Chapter 14. Section 2. Amendment of Section 14.20.330 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.20.330 – Standards for Commercial Marijuana Establishments, is hereby amended as follows: 14.20.330 Standards for [C]Commercial [M]Marijuana [E]Establishments. The purpose of this section is to establish general standards for commercial marijuana establishments. (a) Commercial marijuana establishments may be permitted or allowed with a conditional use permit under KMC 14.20.150, as provided in the City of Kenai’s land use table, KMC 14.22.010, and the provisions of this section. Onsite Consumption Endorsements may not be approved by conditional use permit or otherwise and are not permitted within the City, (b) Applicants applying for a conditional use permit must include an area map drawn to scale indicating all land uses on other properties within a five hundred (500) foot proximity of the lot upon which the applicant is seeking a conditional use permit. This shall be in addition to the conditional use permit submission requirements in KMC 14.20.150. (c) A public hearing shall be scheduled before the Planning and Zoning Commission to review the conditional use permit application once it has been deemed complete. The public hearing shall be scheduled in accordance with the requirements in KMC 14.20.280, except that notification shall be mailed to all real property owners on record on the Borough Assessor’s records within a five hundred (500) foot periphery of the parcel affected by the proposed action. (d) The preparation, packaging, manufacturing, processing, and storing of all marijuana, marijuana concentrate or marijuana products must be conducted within a fully enclosed, secure indoor facility. The growing and cultivating of marijuana must be conducted within a fully enclosed, secure indoor facility or greenhouse with view-obscuring rigid walls, a roof and doors, unless a nonrigid greenhouse, or other structure, is specifically approved, in which case the cultivation must be enclosed by a sight-obscuring wall or fence at least six (6) feet high. (e) All commercial marijuana establishments shall not emit an odor that is detectable by the public from outside the commercial marijuana establishment. (f) No portion of a parcel upon which any commercial marijuana establishment is located shall be permitted within the following buffer distances: (1) One thousand (1,000) feet of any primary and secondary schools (K-12) and five hundred (500) feet of any vocational programs, post-secondary schools, including but not limited to trade, technical, or vocational schools, colleges and universities, recreation or youth 147 Ordinance No. 3068-2019 Page 17 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] centers, correctional facilities, churches, and state licensed substance abuse treatment facilities providing substance abuse treatment; and (2) Buffer distances shall be measured as the closest distance from the perimeter of a stand- alone commercial marijuana establishment structure to the outer boundaries of the school, recreation or youth center, or the main public entrance of a church, correctional facility, or a substance abuse treatment facility providing substance abuse treatment. If the commercial marijuana establishment occupies only a portion of a structure, buffer distances are measured as the closest distance from the perimeter of the closest interior wall segregating the commercial marijuana establishment from other uses, or available uses in the structure, or an exterior wall if closer, to the outer boundaries of the school, recreation or youth center, or the main public entrance of a church or correctional facility, or a substance abuse treatment facility providing substance abuse treatment. (g) As provided in the Land Use Table, a person or licensee may apply for a conditional use permit to allow for a marijuana cultivation facility, standard, on lots of forty thousand (40,000) square feet or greater in size, and a marijuana cultivation facility, limited, on any size lot. (h) A marijuana cultivation facility, standard, or a marijuana cultivation facility, limited, shall only be allowed on a lot which has an existing structure consistent with a principal permitted use. (i) A marijuana cultivation facility located in an accessory building shall be subject to the setback provisions in KMC 14.24.020, Development Requirements Table. A person or licensee seeking relief from the provisions in the Development Requirements Table may apply for a variance subject to the provisions of KMC 14.20.180. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk 148 Ordinance No. 3068-2019 Page 18 of 18 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Introduced: *, 2019 Enacted: *, 2019 Effective: *, 2019 149 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Council Members Glenese Pettey and Jim Glendening DATE: March 12, 2019 SUBJECT: Ordinance No. 3068 – 2019 ____________________________________________________________________________ This Ordinance would prohibit onsite consumption of marijuana and marijuana products at retail stores requiring an onsite consumption endorsement. We feel this ordinance is necessary to protect public safety and welfare. Because this Ordinance requires a change to the City’s zoning code, requires a recommendation from the Planning and Zoning Commission. We request it be pulled from the consent agenda and be referred to the Planning and Zoning Commission for consideration at their May 22, 2019 meeting, and be brought back to Council for a public hearing at the first meeting in June. Your consideration is appreciated. 150 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3062-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, INCREASING FY2019 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $20,859 AND FY2020 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $35,418 IN THE GENERAL FUND PARKS, RECREATION AND BEAUTIFICATION DEPARTMENT FOR THE RECEIPT OF A GRANT FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR BACTERIA LEVEL MONITORING ON THE CITY'S BEACHES FROM MAY TO SEPTEMBER DURING 2019 AND 2020. WHEREAS, the State of Alaska Department of Environmental Conservation has issued a grant to the City for bacteria level monitoring from May to September during 2019 and 2020; and, WHEREAS , monitoring will be provided through a cooperative agreement with the Kenai Watershed Forum; and, WHEREAS , bacteria levels during the testing period in the past have exceeded water recreation standards as established by the State of Alaska Department of Environmental Conservation in Register 226 that could pose a health risk to the fishery participants and City residents utilizing the beach; and, WHEREAS , it is in the best interest of the City to monitor the bacteria level on its beaches . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows : Section 1. That FY2019 estimated revenues and appropriations be increased as follows: General Fund : Increase Estimated Revenues : Federal Grants -Other Increase Appropriations: Parks, Recreation & Beautification - Professional Services $20,859 $20,859 Section 2. That FY2020 estimated revenues and appropriations be increased as follows : General Fund: Increase Estimated Revenues : Federal Grants -Other $35.418 New T ext Un derlin ed ; [DELET ED TEXT BRACKETED] 151 Ordinance No. 3062-2019 Page 2 of 2 Increase Appropriations : Parks, Recreation & Beautification - Professional Services $35.418 Section 3. That the City Manager is authorized to accept a grant and expend the funds to fulfill the purpose of this Ordinance. 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), Section 1 of this ordinance shall take effect upon adoption . Section 2 of this ordinance shall take effect July 1, 2019 . ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of May, 2019. N--------=---rlt'I Approved by Finance : jtb__ New Text Underlined; (DELETED TEXT BRACKETED] Introduced: April 17, 2019 Enacted : May 1, 2019 Effective: May 1, 2019 & July 1, 2019 152 "(ltff~ tP/t/i a Pa~~ Ct'tf tP/t/i a h.t«l"e 11 210 F id algo Ave , Kenai , Alaska 99611 -7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Robert J. Frates, Parks & Recreation Director April 9, 2019 Ordinance 3062-2019 -DEC Grant for Bacteria Level Monitoring in the Kenai River The purpose of this correspondence is to recommend Council approval of Ordinance 3062-2019. This action provides for the appropriation of funds to support testing for coliform and enterococci bacteria in the Kenai River during the Personal Use Fishery by the Kenai Watershed Forum (KWF). This work will be accomplished by the Kenai Watershed Forum through a cooperative agreement with funding being passed through to the KWF. This mirrors a previous process utilized in 2018. Thank you for your consideration. 153 'Vtfl'~ «1/t/i a Pair~ Ct'tt «1/th a Fat~ " 210 Fidalgo Ave, Kenai , Alaska 99611 -7794 Telephone : (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager May 1, 2019 Ordinance No. 3062-2019 -Amendments To accurately reflect that bacteria level monitoring on and around the Kenai City beaches is conducted from May to September, not just during the personal use fishery, to specifically explain what bacteria levels are being exceeded, and to clarify that the elevated bacteria levels are not a result of the personal use fishery, the administration respectfully requests the following amendments be considered by the Kenai City Council. In the title : AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING FY2019 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $20,859 AND FY2020 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $35,418 IN THE GENERAL FUND PARKS , RECREATION AND BEAUTIFICATION DEPARTMENT FOR THE RECEIPT OF A GRANT FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR BACTERIA LEVEL MONITORING ON THE CITY'S BEACHES FROM MAY TO SEPTEMBER DURING [THE] 2019 AND [-] 2020 [PERSONAL USE FISHERY]. In the first whereas: WHEREAS, the State of Alaska Department of Environmental Conservation has issued a grant to the City for bacteria level monitoring from May to September during [THE] 2019 [-] and 2020 [PERSONAL USE FISHERY]; and , In the third whereas: WHEREAS , bacteria levels during the testing period [PERSONAL USE FISHERY] in the past have exceeded water recreation standards as established by the State of Alaska Department of 154 Page 2 of 2 Ordinance 3062 -2019 -Amendments Environmental Conservation in Register 226 [TESTED AT ELEVATED LEVELS] that could pose a health risk to the fishery participants and City residents utilizing the beach; and, In the final whereas: WHEREAS, it is in the best interest of the City to monitor the bacteria level on its beaches [TO PROTECT ITS VISITORS AND RESIDENTS FROM POTENTIAL DANGERS CAUSED BY THE WASTE GENERATED BY THE PERSONAL USE FISHERY]. 155 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: May 8, 2019 SUBJECT: Ordinance No. 3062-2019 – Robert’s Rules Procedures After enactment of Ordinance No. 3062-2019, administration was notified by the granting agency that they wanted to change amounts in the grant being passed through. In order to accomplish this, I recommend a motion to amend something previously adopted. Robert’s Rules provides the following information on amending something previously adopted: • That this action be noticed (accomplished in the publication of the agenda); • Must be moved when no other motion is pending; • Can be applied to anything; • Must be seconded; • Is debatable; • Is amendable; • Requires a majority vote when notice is provided; • An affirmative vote cannot be reconsidered; • Would not be in order if something had been done, as a result of the vote on the main motion, that is impossible to undo (the associated grant has not yet been executed). Suggested Script: In accordance with the notice given in the call of this meeting, I move to amend Ordinance No. 3062- 2019 by [read amendments provided in the memo provided by administration]. Thank you for your consideration. 156 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: May 8, 2019 SUBJECT: Ordinance No. 3062-2019 – Amendment #2 ____________________________________________________________________________ The Alaska Department of Environmental Conservation (AKDEC) desires to include microbial source tracking (MST) testing in May and June before the start of the Personal Use Fishery. In the previous version of the grant, there was no MST testing scheduled for FY19, only in FY20. MST testing helps determine fecal bacteria sources and will include human, gull and dog markers to further assess the bacteria sources at the Kenai beaches. The Administration respectfully requests the following additional amendments be considered by the Kenai City Council: In the title: AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING FY2019 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $25,359 [$20,859] AND FY2020 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $35,418 IN THE GENERAL FUND PARKS, RECREATION AND BEAUTIFICATION DEPARTMENT FOR THE RECEIPT OF A GRANT FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR BACTERIA LEVEL MONITORING ON THE CITY’S BEACHES FROM MAY TO SEPTEMBER DURING 2019 AND 2020. In Section 1: That FY2019 estimated revenues and appropriations be increased as follows: General fund: Increase Estimated Revenues: $25,359 [$20,859] Federal Grants – Other Increase Appropriations: Parks, Recreation & Beautification - $25,359 [$20,859] 157 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager Cc: Mary Bondurant, Airport Manager FROM: Elizabeth Appleby, City Planner DATE: May 8, 2019 SUBJECT: Action/Approval – Request Submitted by SOAR for Extension of Lease Application Expiration Date ____________________________________________________________________________ On May 6, 2019, SOAR International Ministries, Inc. (SOAR) submitted a letter requesting a six- month extension to the expiration date of the their lease application for an undeveloped portion of Tract A, General Aviation Apron No. 2 within the Airport Reserve. SOAR’s lease application expires on May 18, 2019. Kenai Municipal Code 21.10.050 states that lease applications, “shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time, entered into a lease, unless the City Council for good cause grants an extension for a period not the exceed six (6) months”. The property requires subdivision prior to entering into a lease with the City. Pursuant to Kenai Municipal Code 21.10.040(c), lease applications which propose a subdivision require the applicant to pay for the subdivision unless City Council determines the subdivision serves other airport purposes and it is reasonable for the City to share in the cost. SOAR’s lease application was passed by City Council on August 1, 2018 after it was approved by the Planning and Zoning Commission on June 13, 2018 and the Airport Commission on July 14, 2018. SOAR was provided three costs estimates by the City to complete the subdivision on October 9, 2018 with reminders sent December 13, 2018, March 13, 2019, April 18, 2019. SOAR has not responded to these requests, indicated which surveyor they would use to complete the subdivision, or provided other update on their plan to complete the improvements outlined in their lease application. The survey quotes at this point in time may be no longer be accurate and new cost estimates would need to be requested. If an extension were approved, no other potential lessee may file an application to lease the parcel. Based on the minimum work completed toward subdivision in the first year of the 158 Page 2 of 2 Application for Extension of Lease application and the potential for other applications on this lot, Administration recommends denial of the extension as SOAR has not presented good cause to grant an extension. This would allow for competing lease applications to be submitted for the parcel to the City for the parcel. Thank you for your consideration. 159 Intern a tional Ministri es Apri l 1, 2019 City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 Due to the delay in the sal e of SOAR's current buildings and the transfer o f SOAR's curr ent leases SOAR would like to request a six month extension of the expiration date of our current lease application fo r t he undeveloped portion of Tract A, Gener al Aviation Apron No. 2 . Thank you for your consideration. K~c1_f/2 Richard Page ()-<- Director, SOAR Internat ional Ministries 135 Granite Poin t Court I Kenai, Alas ka 99611 RECEIVED CITY OF KENAI DATE 5',..(1)~1q PLANNING DEPARTMENT www.soarinternational.org 1 .888. 388.7627 160 April 18, 2019 SOAR International Ministries Inc. 135 Granite Point Court Kenai, AK 99611 Attn : Dick Page "Vt11a:Je with a Pas~ Ci-fy w/fh a Future" 210 Fida Igo Avenue, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I FAX: (907) 283-3014 www.ci.kenai.ak.us \ Re: 30-Day Notice of Expiration of Lease Application for the Und~veloped Portion of Tract A, General Aviation Apron No. 2 \ Dear Mr. Page : On May 18 , 2018 , SOAR International Ministries , Inc. (SOAR) submitted an applicat ion to the City of Kenai to lease the undeveloped portion of Tract A, General Aviation Apron No . 2 within the Airport Reserve . On August 1, 2018 , the Kenai City Council approved a lease w ith lot improvements as outlined on the lease application , including a hangar, aircraft ramp and tie-down area, and parking . City Council approved of a45-year lease term. Kenai Municipal Code 21 .10.050 states that lease applications , "shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time , entered into a lease , unless the City Council for good cause grants an extension for a period not to exceed s ix (6) months." Your lease application will expire on May 18, 2019 without further action by you . SOAR was to subdivide the property prior to lease execution such that only the port ion of the lot SOAR wished to lease would be included in the lease and in lease payments . The City of Kenai obtained three estimates br the cost of the subdivision : • Edge Survey , $4,850 • Segesser Surveys , $3 ,500 • Mclane Consultants , $5 ,990 The City of Kena i has requested SOAR choose a surveyor to conduct the subd ivis ion . Kenai Municipal Code 21 .10.040 (c) requires the lease applicant to pay subdivision costs , "Applications which propose a subdivision shall require the appl icant to be responsible for all costs associated with the subdivision, including but not limited to any new appraisal , engineering services , surveying and consulting costs , unless in the sole discretion of the City Counc il, the City Council determines that the subdivision serves other airport purposes ." Until a subdivision is completed , the City may not enter into a lease with SOAR. 161 Prior to the expiration ·of your lease application on May 18,2019, either: 1) Select a surveyor, complete the subdivision, and enter into a le ase, or, 2) Submit a written request for an extens io n of the expiration date of your lease application (not to exceed six months). Attached to th is letter is Resolution 2018-46 approving of your lease appl ication. Please contact Elizabeth Appleby about this matter at 283-8235 or g§l?.Rl~..@kenai.dry . CITY OF KENAI UJ~g:_~ Wilma E . Anderson Planning Assistant Attachments cc: Paul Ostrander, City Manager Christine Cunningham , Assistant to City Manager Willie Anderson , Planning Assistant Mary Bondurant, Airport Manager 162 11Vill~e w£th a Pas~ C£ty w£th a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I FAX : (907) 283-3014 March 15, 2019 SOAR International Ministries Inc. 135 Granite Point Court Kenai, AK 99611 Attn: Dick Page www.ci.kenai.ak .u s Re: 60-Day Notice of Expiration of Lease Application for the Undeveloped Portion of Tract A, General Aviation Apron No. 2 Dear Mr. Page: On May 18, 2018, SOAR International Ministries , Inc. (SOAR) submitted an application to the City of Kenai to lease the undeveloped portion of Tract A, General Aviation Apron No . 2 within the Airport Reserve . On August 1, 2018, the Kenai City Council approved a lease with lot improvements as outlined on the lease application, including a hangar, aircraft ramp and tie -down area, and parking. City Council approved of a 45 -year lease term . Kenai Municipal Code 21.10.050 states that lease applications, "shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time, entered into a lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months ." Your lease application will expire on May 18, 2019 without further action by you . SOAR was to subdivide the property prior to lease execution such that only the portion of the lot SOAR wished to lease would be included in the lease and in lease payments . The City of Kenai obtained three estimates for the cost of the subdivision: • Edge Survey, $4,850 • Segesser Surveys, $3,500 • Mclane Consultants, $5 ,99 0 The City of Kenai has requested SOAR choose a surveyor to conduct the subdivision. Kenai Municipal Code 21 .10.040 (c) requires the lease applicant to pay subdivision costs, "Applications which propose a subdivision shall require the applicant to be responsible for all costs associated with the subdivision , including but not limited to any new appraisal, engineering services, surveying and consulting costs, unless in the sole discretion of the City Council, the City Council determines that the subdivision serves other airport purposes." Until a subdivision is completed, the City may not enter into a lease with SOAR. 163 Prior to the expiration of your lease application on May 18, 2019, either: 1) Select a surveyor, complete the subdivision, and enter into a lease, or, 2) Submit a written request for an extension of the expiration date of your lease application (not to exceed six months). Attached to this letter is Resolution 2018-46 approving of your lease application. Please contact me about this matter at 283-8235 or eappleby@kenai.c ity. CITY OF KENAI Elizabeth Appleby City Planner Attachments cc: Paul Ostrander, City Manager Christine Cunningham, Assistant to City Manager Willie Anderson, Planning Assistant Mary Bondurant, Airport Manager 164 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 -46 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE EXECUTION OF A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE FORM BETWEEN THE CITY OF KENAI AND SOAR INTERNATIONAL MINISTRIES, INCORPORATED, FOR THE UNDEVELOPED PORTION OF TRACT A, GENERAL AVIATION APRON NUMBER TWO. WHEREAS, on May 18, 2018, SOAR International Ministries, Inc., {SOAR) submitted an application to lease City owned properties within the Airport Reserve, described as the undeveloped portion of Tract A, General Aviation Apron Number 2; and, WHEREAS, SOAR's lease application states plans to construct a hangar facility for aircraft storage and maintenance; a connecting office facility, an aircraft ramp and tie-down area, and parking, an investment that aligns with a lease term of 45 years; WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai Municipal Code for zoning, Kenai's Comprehensive Plan, the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations; and, WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30) days of publishing a public notice of the lease application from SOAR; and, WHEREAS, at their regular meeting on June 13, 2018, the Planning and Zoning Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, at their regular meeting on July 12, 2018, the Airport Commission reviewed the lease application and recommended approval by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease between the City of Kenai, Lessor, and SOAR International Ministries, Incorporated, Lessee, as follows: Lot improvements as outlined in lease application from SOAR International Ministries, Incorporated, including an approximately 120 foot x 180 foot hangar facility for aircraft storage and maintenance, an approximately 100 foot x 11 O foot connecting office facility, an aircraft ramp and tie-down area, and parking to be completed within two (2) years of signing the lease; The evidence must be submitted to the City within 60 days of the completion of the development and improvements; 165 Resolution No. 2018-46 Page 2 of 2 The lease term will be 45 years; Lot developments will prevent unauthorized access to the airfield; Structures will be built behind the 100 foot building restriction line ; The relocation of the airport perimeter fence will allow aircraft full access to the proposed aircraft ramp and tie down area; Paving will be completed up to the existing transient aircraft apron pavement; SOAR is responsible for all snow removal , and snow may not touch the perimeter security fence or be piled to a height that would allow access to the airport; and SOAR will subdivide the property to designate the portion of Tract A, General Aviation Apron Number Two (2) that it wishes to lease from the City of Kenai as set forth on Exhibit A attached hereto, and the subdivision will include a 40-foot easement for utilities . Section 2: That this resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of August, 2018 . BRIAN GABRIEL SR., MAYOR 166 'lftfl'tlj'e w/t~ a Pa~~ Ct'tf w/t~ a Fa.tf.if'e " 210 F idalgoAve , Kenai , Alaska 99611-7794 Te lephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Elizabeth Appleby, City Planner July 24, 2018 Resolution 2018-46 -Kenai Municipal Airport Reserve Lease Application from SOAR International Ministries, Inc. -209 N. Willow St, the undeveloped portion of Tract A, General Aviation Apron No. 2 SOAR International Ministries, Inc. (SOAR) submitted an application on May 18, 2018, to lease an undeveloped portion of Tract A, General Aviation Apron No . 2 within the Airport Reserve . SOAR is current on rent payments for the three lots currently leased within the Airport Reserve from the City . SOAR proposes to lease Tract A, General Aviation Apron No. 2 for an aeronautical use . SOAR proposes to construct an approximately 120 foot x 180 foot hangar for aircraft storage and maintenance. There would also be a connecting office facility of approximately 100-foot x 110- foot, an aircraft ramp and tie-down area, and parking. Possible activities noted on SOAR's lease application include flight training, aircraft parts sales, aviation safety meetings, community meetings, and storage of aircraft floats. SOAR requested a lease term of 55 years to start on September 1, 2018, however, the maximum term of a lease allowed under KMC 21 .10.080 is 45 years. SOAR proposes to build on the portion of the lot that is currently treed, and would need to subdivide the lot prior to construction. This section of the lot is surrounded by existing development and other disturbed surfaces . SOAR would need to ensure the fence encompassing its development met Airport safety and security standards. Pursuant to KMC 14 .20.065, the parcel is within the Airport Light Industrial (ALI) Zone. The purpose of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed aeronautical use by SOAR is a permitted and compatible use in the ALI Zone. 167 Page 2 of 2 Resolution 2018-46 The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives , and action items for the City, including this one pertaining to the Kenai Municipal Airport: • Objective T-1: Support future development near or adjacent to the airport when such development is in alignment with the Kenai Municipal Airport's primary mission, "To be the commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet." The proposed use by SOAR complies with the Imagine Kenai 2030 Comprehensive Plan in that it supports development on lease lots and the development is in alignment with the Kenai Municipal Airport's marketing strategy. The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for local economic development. The proposed use by SOAR complies with the Airport Land Use Plan. It would enhance local economic development. The lease application complies with the Airport Layout Plan, Airport Master Plan, Airport Improvement Program Grant Assurances, Federal Aviation Administration requirements, and Airport Operations. The development will create new land lease revenue, employment opportunities, and offer services to airport users that are not currently available . Pursuant to KMC 21.10.060(c), the City must publish public notice of a lease application and allow thirty (30) days for competing lease applications for the same property to be submitted to the City for consideration. The City published a public notice of the SOAR lease application in the Peninsula Clarion on May 29, 2018. The City did not receive a competing application to lease this parcel within 30 days of the notice (through June 28th). The Planning and Zoning Commission recommended approval of the lease application at their meeting held on June 13, 2018, contingent upon SOAR submitting a plat to the Planning and Zoning Commission for the subdivision of the lot that SOAR is interested in leasing from the City of Kenai. The Airport Commission and Airport Manager recommended approval of the lease application at their July 14th meeting, contingent upon SOAR subdividing the property and reserving a 40-foot utilities easement, paving up to the existing transient aircraft apron pavement, relocating one flood light to the north , and meeting Federal Aviation Administration and Transportation Security Administration requirements for security and access . Thank you for your consideration . 168 City of Kenai Kenai Municipal Airport Land Lease Application Name of Applicant: Richard Page RECEIVED CITY OF KENAI MAY 8 J 2 0 ~ !-----.. -----+-' Application for : 0New Lease 0Amendment 0 Extens ion/Renewal Mailing Address : 34225 Page Street City: Soldotna State : Alaska Zip Code : 99669 Phone Number(s): Home Phone : (907)252-1841 Cell Work/ Message Phone : (907)283-1961 E-mail: (Optional) RichardPage@soarinternational.org Name to Appear on Lease: SOAR International Ministries Mailing Address: 135 Granite Point Court City: Kenai State : Alaska Zip Code : 99611 Phone Number(s}: Home Phone : (907) 252-1841 Cell Work/ Message Phone: (907) 283-1961 E-mail: (Optional) Type of Applicant: D Individual (at least 18 years of age) D Partnership D Limited Liability Company (LLC) D Government Description of Property and Term Requested ~Corporation Oother _____ _ Legal Descnpt1on of Property: I 1 1 ' 1 • r ' p p ac Does the Property Require Subdivision? (if Yes, answer next two questions) DYES ~NO Are you prepared to be responsible for all costs associated with subdivision? DYES DNo Do you believe the proposed subdivision would serve other Airport purposes? DYES ONO Do you have or have you ever had a Lease with the City of Kenai? ~YES ONO If Yes, please provide description of property leased (e .g. legal or physical description): Lot 1 A, Block 2, General Aviation Apron No . 3 Lot 3 , Block 1 General Aviation Apron, according to Plat No . 73-68 Is this application for renewal or term extension of an existing lease? DYES ~NO If Yes, please provide a description of the property leased: Proposed Use (check one): lvl Aeronautical D Non-Aeronautical Do you plan to construct new or additional improvements? 169 If yes, will the improvement change or alter the use under an existing lease? DYES ~N O If yes, what is the new proposed use? If J'flis, wh8l,is the tX&e of Fo?s~v~ent? ie·'ffi· p~JdinH imfrrg~ement 1<:1~0 imgirovemen~ New ic e an angar ihties o A ntern tio a 1nist es n angar fac1 1t1es t accommo ate transient corporate aircraft. n _ ................ ;...,,1 c:o~ ....._._....J .n.r fl: ..... L...a. .a.-.-. in ;.,.._,, .i..-...-;1:•. If &es, Whi;it is the natura of me im~rovements? (e.g. maintenance, landscaping, new construction) New onstruct1on, paving, an Ian scap1 g. List of proposed use and business activities: Base o operations for SOAR International Ministries including airc raft storage and maintenance, hangaring of transient aircraft, possible FBO operation, possible flight training facility, possible aircraft parts sales, facilities for installation, removal, and ins ide storage of aircraft floats, facilit ies for community activities such as aviation safety meetings, community fundraisers, etc . Lease Extension or Renewal Method to determine value of improvements/term for a lease renewal or expiring lease: D Professional estimate of the remaining useful life of the principle improvement on the property IV I Market value appraisal of the principle improvement on the property DPurchase price of improvements S ubmitting an application fo r a lease does not gi ve th e app l icant a ri ght to lease or use the land requested in the appl ication. T he application shall expire twe lve (12) months afte r the date the application has been made if the City and the applicant have not, by th at tim e , entered into a lease, unless the C ity Council for good cause grants an extension for a pe riod not to exceed six (6) months. The City has no obl igation to amend, renew or extend a lease and may decline to do so upon maki ng specific find ings as to w hy a lease renewa l, extension , or amendment is not in the best interest of the City Signature : Date: e:J5 18 2oJ8 Print Name: Title: 170 ~'\OR A G.E: \-\A NQs-A R.._ ftt>'(:'R..al( ''2.o x \ ~ l __ J I j I. o~FI c..k6 Pr-f\lD ri A "l:;.A€.. -AW~'>t \ c>o x H c 171 i I .· ::== •lo-'_ .... l .... ~4.A • 172 VICINITY MA~ r"·aoo' 'POR S-32 ,T.GN ,R.11111 ,SM ----, \ \' ~---------- ~) ·::'~~ ~~.! CG 0 0 0 ~ Tf?ACr "A" ~-•-.. -· CERT"•CATE OF NA O IS THE OWN°" OF THE RTlrYTHAT THE CrTY or KE' AT THE CITY AOOPTS nm I HEREBY CE DES CR IBED HEREON , TH L EASEMrnTS TO OWNERSH IP 8 D£01eAT ION PROPEITTY SHO\lr'N ANO 0 DOES HER~ey GAANT AL PLAN OF sueo•v•!i !ON, AN lHEU~OWN~ ---TON ANAG ·WI L LIP.M B I C1TY M PL '1 APPROVAL SULA BOROVGH' Kl PR(7;£0 BY THE KENA I "l"l',,r -1?) /'f,n THIS PL AT WAS AP E MEETING OF er-v PLANN IN G COMMISSION AT TH PfNINS.ILA BOROu<lH KENA I .A ~,b Q(~"-' BY : AUTHORIZED ~ICIAL. ~ ·r"ft>EET AOOAESS ~ "''" cq,f-/ID •' ~-·--Cll "l 10· I ·~ .. -~.:')~~ 1 ·1 /( P'1~ _.1,-,. "· I . ,., 'i I ··-<t-.;Jg --·· p I "" ( .. , ~ .'5(,. ·--.• , \~~~;~~l SCALE 1"•100' w NO. 2 'fiAL AVIATTON APRO. GENE. • .,,.. SWV<,ANO CRES WITM l N THE 5·24'3 A T6N.,R.ll W.,S.M., 'NI 1/4 SEl/4 OF SEC 3'2; NSuLA emwuGH' KENAI PEN AL4SKA CITY OF KENAI BOX ~BO KE,..,_1, AK 99611 MA LONE SURVEYTMi BOX !56Ei KENAI, Af(, 93611 S-5 -81 -·--~ -··--·-·· 173 \' 0 fd . ro u nci ~ml !loll --........... ~ l'OUnd-l'lt!ll! bOll .-,----'s~.2~a~o..4_2'w. fd. ,00 .00 fd .~.~.noi! \ l l __ TAXI WAY A-.J -----s .2s 0 -42·w. l'r, .~,' , I " : I --2 ~ 60 0 <? 0 l(l N set 11 k.no;~29 ·56 rn f!!:t 9e fl•I. TRACT "A" 228 ,381 s.l 5·243 or:. 0 ID i oppro~. IOc ., ( Cily Waterl ine I "Ill CERT I F'ICATl 1 HEREBY PR OPERT Y S PLAN OF SU! THE USE SI-It w~ CITY MANA • .A:T'TEST' ~l CJTY CLER~ I NOTARY'S t SUBSCRlBEt 19_5U___ N~E MY COMMIS ! PL AT APP!' THIS Pl PLANNING KENA I F'FN e =S 174 • • • • • TIWA • • WATER/SEWER, •. SITE DEVELOPMENT, AND LEASE LOTS • • • • \ I I\ /I I '.,,' I 1/\1 -v 'J - • • T/WJ I SITE DEV :: 0 OVER FL• ,.._.,,__--t PARKIN C I I I I I Nn\ ( nuu I ~~ 175 r I Ii ~ I I ~ 4 I II I I I ~ I I I i I ;> ' J I I I I I II I I I I I ' i I I I I I ~ I I I r I 176 111'-0" / 36'·3' ~ I £ib,.. ~ I I f'H'l ! 1 I 175'--0' I I I I I I I I L ______ J =~========================================================================~========= 08) --r------------L---------t--· '! jliilig~!~lll~l~/~11111 ~l ":.:'.'.'..:::=::='":.:'.'.'..:::=::=''..:.:.":.:'.~~~~~~~~~~~~~~~'..:.:.":.:'.'.'..:::=::=''..:.:.":.:'.'.'..:::=::='~t ==================================================================================== i I I I ~ J / , J ! 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SOAR HANGAR MARCH 21, 2017 JOB# 1623 177 PEDESTRIAN PASSAGEWAY ME CHANICAL k7sTR~ 9'-2" x 7'-10' 8'-5' x 1;.4-· ' 175'--0' 0 0 A 14·-0· x 1a·-0· 1 '( OVERHEAC DOOR 'j' I I I I I I I I ?:===================================================---L J ===========================================================E ~~~===--------------H+ ----------------------- EVAPORATIVE TRENCH ~ I HANGAR 175'--0" x 100'--0" ::E ~=================================================================================================================E ~=================================================================================================================~ 0 0 ------·-- ~ IL~ ( _ r KLA U DER & COMPANY ARCHITECTS, INC. MAIN HANGAR FLOOR PLAN SOAR HANGAR MARCH 21, 2017 JOB# 1623 118" = 1'-0 " (22X34); 1/1 6' = 1'-0" (11X17) REF 178 48'-10" 38'-4 " L ~ 1 I ~· -10'-6~. STAIR ' ~ DINING BE LOW ;'.".' j -, \ Q ' N ' .___ (oPEN TO_ BALCONY-----...... TWO STORY ON N :.. ATR IUM BELOW ) c;, r\w\. l)~l BALCONY-_, I en <"l I OFF ICE IDI_ WOMEN ME~ EQUIPMENT 5' 5' ~ 11 '-6' x 11'-11" ti)3" x 9'-< 8'-3" x 9' PLATFORM co ~ l_gf) LJLJ / PRINT ALCOVE / ' 16'-0" )( 8'-6" UI ·lt;t: l~"~-~ i- IX -... ~ -· STAIF !OJ I 9 ~ "' --L..9;1~ "' ---L_oPENTO ..... ;:::: ~---j ---..... '---BELOW / ~ ~ OFFICE""!'=" !Ai\ ..... 1--9 ..... ........ 11 '-6' x 12'-n'- "" ~ ~ ..... ..... N ~ ........ '--..... ~n ~ ~ """--I-..... ~ -QJ 1--1-- '-'- p'1'" I- I '--li------1 iii \ rv"' '--- 4'-8 " ~OFFICE i., 16'-2" x 20'-7 9 _, -fD ~ N t= 0 ~I "' l g 0 j 0 0 0 ~ 17'-4 " 16'-6" 0 '! ~ SECOND FLOOR PLAN 1/8' = 1'-0' (22X34); 1/16" = 1'-0" (11X17) REF I. 12'-0" 1 ~ ~Al LVI ~y !Ai\ ~ ~ 1 '-6 x ''-{ 5' ~ ' CD \ ·-,_ ·~ ----'c• hr1 / ou ~o ~ I I I -- :-r "' N 5' "' . ... ·' co N I 1 µ I I Pl DI I I h J N <ii ._ " 9 ~ ~ 'l' 1o N 9 "' 12'-0" ~ -~ ,.. -.... ' / \ r I ' E:IT lro I >Ai Kl NG SRI NbA t::s ~G o·-o· x 1'" • ' I ~ ' /, / ' ' -,.. ~- ~J L: I I Flt. AY . I l r 11 1'·0' 38'-4" 14'-6" 14 '-6" .... ,.. \I ' ,.. \I STAIR z 0 ~ 16'-10" BREAK ROOM 0 27'-8 " x 20'-8' r--------------------- ; ____. LINE OF BALCONY UP r---ABOVE : I EVAPORATIVE TRENCH t2"-a· :it 16'-<r OVERHEAD ODOR 16'-6' / I , OFF ICE n, \ 14'-6' x 1 1·-0~ LINE OF BALCONY ABOVE ' ,.. \I I TWO STORY ATRIUM ii: UJ u UJ a: LOSSY ro 0 ild ~ SUSPENDED FRO M ABOVE [Jl Gf)IREPLACE 0 8J Og rQJ PALLET STORAGE 110VOLTREEL &AIR HOSE REEL SHOP 60'-0" x 59'-0" OCCUPANCY LOAD 49 ..-----220 VOLT REEL 0 110 \/OL T REEL &AIR HOS€ REEL EVAPORATIVE TRENCH 60 '-6" 220 VOLT REEL ----1111 110VOLTREEL &AIR HOS E REEL MECHANICAU ELECTRICAL 16'-0" x 11'-0" GARAGE BAY 16'-0" x 40'-0 " 1t 0 VOLT REEL & AIR HOSE REE EVAPORATIVE TRENCH .... \ 12'-8". 16'-0' OVERHEAD DOOR a OFFICE I SHOP FIRST FLOOR PLAN 118" = 1'-0" (22X34); 1/16" = 1'-0" (11X17) REF 12'-0" ~ H~I WY 12 6" x '-0 ->- --I I _...,... -..' ... lo L ....... h \ ENLARGED PEDESTRIAN PASSAGEWAY 114" = 1'-0" (22X34); 1/6' = 1'-0' (11X17) REF I / ' \ KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR -- MARCH 21, 2017 JOB# 1623 S: _, "' N 179 SOUTH ELEVATION 3132" = 1'-0" (22x34); 3/64" = 1'·0" (11x17) KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 180 NORTH ELEVATION 3/32" = 1'-0" (22x34 ); 3/64' = 1'-0" (11x17) WEST ELEVATION 3132 " = 1'-0' (22x34); 3164 " = 1'-0" (11x17) KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 181 y @ --------------------.. ----------------------------------------------------------___ __l_ ------------------------------~ -------------------------------------------------: { I i f ,---~ -----------------~-------------------------· -------------------....... __ -----------~------------------------------------------------------... --....... : l ~ J l : I ' I ! : : : : ' : ' : r r---______ 1 t ! ! l r : :l ~ -, ' _ M1±:, 1r:::tT::,i:::i:,::1r:--r:r:::,rr:::tT::1~T+::::~,~,i-~11r+1~ c= _ _J i : i r---11 . t:=------1 m -i-----'· t ,--~ ' -I -tu T Bl j-----i II LJ I~ I.___-__ -_----j --- " ''--------------------------------------------------------.. --.. --------------------------------------------------.. --.. ------------------------------------------J ___ ,i : i .. _ ---....... ------------------------------~~-------------------------------------------------------.. ------------------_ ... ------------------------------------ BUILDING SECTION 3/32' = 1'-0" (22x34); 3/64" = 1'--0" (11X17) f----------- BUILDING SECTION -ENLARGED 118" = 1'--0" (22x34); 1116' = 1'--0 " (11x17) 12 ------------------------------------- ------------~---- ------------+-------------------!---------------------------~ ELEV.38'-7 1/2" $ T .O. RIDGE ELEV,31'-4" $ T .O. EAVE ELEV.0'-0" 1ST FLOOR TYPICAL ROOF ASSEMBLY 'A'------------ 5" INSULATED METAL PANEL STEEL PURLINS STEEL BEAM TYPICAL WALL ASSEMBLY 'A' 4" INSULATED METAL PANEL STEEL GIRT STEE L COLUMN \ - 4' CONCRETE SLAB WI ____ ....,___,f----> THICKENED EDGE, TYP WALL SECTION 112'' = 1'-0" (22x34 ); 1/4' = 1'-0" (11x17) KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21 , 2017 JOB# 1623 182 ~ ELEV. 17'-9 1/4" T.0. RIDGE ~ ELEV.15'-0" / ~ T.O. WALL I l BUILDING SECTION -ENLARGED 1/8" = 1'-0" (22x34); 1/16" = 1'-0" (11x17) @ ~ I I : ,,----"-----, : I I I l I I ! r I I ! ! I I I : ! i BUILDING SECTION -ENLARGED 118" = 1'-0' (22x34 ); 1116" = 1'-0' (11x17) 12 _j r=·=i -rt ------1 ~ --------------.1 12 nn n r ] I ELEV.35'-11112" T .O. RIDGE ELEV.30'-11112" $ T.O . EAVE ~ ~ ELEV.11'-6" $ 2NO FLOOR ELEV.35'·11112" $ T.O . RIDGE ELEV.31 '-4" $ T .O. EAVE ELEV.11'-6" $ 2ND FLOOR ELEV.0'-0" $ 1ST FLOOR TYPICAL ROOF ASSEMBLY 'B' METAL PANEL UNOERL.A YM ENT (1) LA YER 518" PL YWOOO SHEATH ING ROOF T RUSSES 18" FIB ERGLAS S BATT INSULATION IN TRUSS CAVITY VAPOR BARRIER (1} LA YER )'2" GYPSUM BOARD TYPICAL WALL ASS EMBLY 'B' --~..;..JI- METAL PANEL MOISTU RE BARRIER (1) LAYER 112 PLYWOO D SHEATHING 2x8 WOOD ST UDS AT 16" O.C . FIBERGLASS BATT INSULATION VAPOR BARRIER (1) LAY ER 518" GYPSUM BOARD VINYL WINDOW, ------ TYP 4" CONCR ETE SLAB Wf -----U-_,_,__ THICKENED EDGE. TYP WALL SECTION 112' = 1'-0' (22x34 ); 1/4" = 1'-0' (11 x17) KLAUDER & COMPANY ARC HITE CTS, INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 183 184 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: May 8, 2019 SUBJECT: Action Approval for Lease Assignment to Don Moffis and Joann Doyle ____________________________________________________________________________ Mary Jane Doyle has submitted a request to the City to assign her Lease of Airport Lands to Don Moffis and Joann Doyle. Mary Jane Doyle leases the property described as Lot 5, Block 1, Gusty Subdivision Addition No. 1. The lot will continue to be leased for the Big Dipper Car Wash and the assignment will not constitute a change of use. A map of the parcel is attached to this memorandum. Mary Jane Doyle is in compliance with the terms of the existing lease. The original lease was executed on November 16, 1983, and recorded on December 12, 1983, in Book 225 at Pages 376 – 394. The most recent amendment is the Eighth Amendment to Lease executed on January 22, 2013, which adjusted the lease rate to $7,236.97 per year. The original lease was executed by Patrick J. Doyle and Mary J. Doyle, husband and wife. Patrick Doyle passed away on August 20, 2016. Mary Jane Doyle entered into an Agreement for Purchase and Sale of Real Property to Don Moffis and Joann Doyle on May 7, 2019, for the business and leasehold interest in the property. If City Council approves, City Administration would execute the assignment of the leases from Mary Jane Doyle to Don Moffis and Joann Doyle. City Administration has no objection to the lease assignment. Thank you for your consideration. 185 GUSTY AD D. N O. 1 GUSTYSUBD. GUSTYADDN NO. 2 2 5 6A 4 3TR. B 12 (1) (2) 1147211535 11 6 0 0 11616 11631 11568 11536 11504 11599 11595 44511616 11631 11568 11536 11504 1147211535 11 6 0 0 11599 11595 445KENAI SPUR HWY COHOE AVECORAL ST. 70 ' Date: 5 /9 /2 01 9 The information depicted hereon is for graphic representationonly of the best available sources. The City of Kenai assumes no responsibility for errors on this map. 1 inch equals 83 feet Lot 5,Block 1,Gusty Subdivision,Addition No. 1 (Kenai Peninsula Borough Parcel Number04327015) 186 Consent to Assignment of Lease – Lot 5, Block 1, Gusty Subd. Addition No. 1, Amended Page 1 of 2 CITY OF KENAI CONSENT TO ASSIGNMENT The Assignment of that certain Lease of Airport Lands entered into on November 16, 1983, and recorded in Book 225 at Page 376 - 394, on December 12, 1983, in the Kenai Recording District, from MARY JANE DOYLE whose address is 2243 Beaver Loop Road, Kenai, AK 99611, to DON MOFFIS and JOANN DOYLE, husband and wife, whose address is 2241 Beaver Loop Road, Kenai, AK 99611, covering the following-described property: Lot 5, Block 1, GUSTY SUBDIVISION ADDITION NO. 1, AMENDED, according to the official plat thereof, filed under Plat No, 84-183, in the records of the Kenai Recording District, Third Judicial District, State of Alaska, is hereby ACKNOWLEDGED AND CONSENTED TO, subject to the same terms and conditions as contained in the above-described original Lease of Airport Lands, and any and all amendments thereto. This Consent is given by the City of Kenai without waiving any right or action, or releasing the Assignor from any liability or responsibility under the aforementioned Lease, and does not relieve the Assignee from the condition requiring the City's approval for any subsequent sublease or assignment. Dated this ____day of ______________, 2019. _____________________________ Paul Ostrander City Manager 187 Consent to Assignment of Lease – Lot 5, Block 1, Gusty Subd. Addition No. 1, Amended Page 2 of 2 ACKNOWLEDGEMENT STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ______ day of _____________, 2019, Paul Ostrander, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. _____________________________ Notary Public for Alaska My Commission Expires: _________ Approved as to form: _____________________________ Scott Bloom, City Attorney After Recording, Return to: City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 188 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Paul Ostrander, City Manager DATE: May 6, 2019 SUBJECT: Discussion Item – Scheduling a Council Work Session for Land Sale and Leasing Policies and Practices ____________________________________________________________________________ The purpose of this memo is to provide additional information to assist in scheduling a work session to discuss administrative recommendations on changes to the City’s Land Sale and Leasing Policies and Practices. Administration will provide an approximately ten-minute presentation on recommendations from a working group of City staff involved in land management as it relates to the lease and sale of General Fund Lands and Airport Land Outside of the Airport Reserve as well as an update on the City’s Land Management Plan. The working group is available to present June 10 – June 30, 2019. Your consideration is appreciated. 189 June 2019 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 3 4 5 6 7 8 Kenai Peninsula Air Fair 9 10 11 12 13 14 15 Clerk and Deputy Clerk in WA at Training Harbor Commission Mtg 6:00 p.m. Planning & Zoning Work Session 5:30 p.m. Planning & Zoning Mtg. 7:00 p.m. Council on Aging Mtg 4:30 pm Airport Commission Mtg 6:00 pm Kenai Kite Festival 16 17 18 19 20 21 22 Father’s Day City Council Mtg. 6:00 p.m. 23 24 25 26 27 28 29 Planning & Zoning Mtg. 7:00 p.m. 30 190 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 9, 2019 SUBJECT: Finance Department, May 2019 Mid-month Report For the past month much of the department’s focus has been on the preparation of the City’s FY2020 Budget. Budget Ordinance adoption is scheduled for the May 15th Council meeting. City code requires adoption by June 10th. The Resolution establishing the 2019 mill rate is also scheduled for adoption on May 15th to coincide with adoption of the FY2020 Budget Ordinance. The department is working on a renewal plan for employee benefits. A resolution authorizing renewal is also in the May 15th Council Packet. The City is negotiating through our broker, USI Insurance Services, to get the best renewal rate and coverage for the City and its employees. The department submitted its property, liability and workers’ compensaton insurance premium credit application for the upcoming renewal year. This is a large document that takes cooperation from all departments. Special thanks is owed to Ms. Feltman of Public Works for her assistance in putting the document together. This document is a bit time consuming but has reduced the City’s insurance costs by an average of $40,000 per year. The document shows the commitment to safety, training and education by the City and its employees. We are currently waiting on renewal quotes for these coverages from both public entity risk pools operating in the State. Quotes are expected any day and a resolution authorizing the binding of coverage for FY2020 will likely be before Council for passage at the June 5th Council meeting. The department is preparing for the upcoming Personal Use Fishery. Preparation includes updates to the Dip Net App, updates to our point of sale software, and road work on South Spruce Ave. 191 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Jeff Tucker, Fire Chief DATE: May 6, 2019 SUBJECT: Fire Department Mid-Month Report - April ____________________________________________________________________________ In April the department responded to 125 call for service as compared to 121 calls in April 2018. April statistically is the department’s slowest month of the year. For the first quarter of the year the department has responded to 531 calls compared to 478 in 2018. This is an 11.09% increase compared to 2018. Compared to the previous 5 years average of 449 calls for service during the first quarter of the year the department is up 18.26%. With the retirement of Engineer John Wichman the department conducted a testing process for the vacant Engineer position. Firefighter Pete Coots was the successful candidate and was promoted effective April 22, 2019. The Department sent three individuals to the pre-build conference for our new fire engine. Engineer Sam Satathite, Shop Foreman Randy Parrish and Fire Chief Jeff Tucker met with factory representatives at the Pierce factory in Bradenton, Florida, to review the design of the new engine. Delivery at this time is planned for mid-November. Fire Chief Jeff Tucker attended the Congressional Fire Services Institute’s 31st Annual National Fire & Emergency Services Symposium and Dinner in Washington DC. Administrative Assistant Rebecca Matthews attended the Kenai Chamber of Commerce & Visitor Centers Women in Business Summit. The department completed our annual training program at CINGSA. The crews review operating plans and receive updates on any changes at the facility. 192 MEMORANDUM TO: Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner DATE: May 1, 2019 SUBJECT: Library Mid-Month Report ______________________________________________________________________ April Circulation Figures Adult Fiction 1,148 Internet Access 766 Adult Non-Fiction 1,005 iPad use 155 Young Adult Fiction 159 Games 4 Periodicals 101 Room Booking 148 Juvenile Fiction 339 Music 51 Juvenile Non-Fiction 333 DVDs 1,922 Easy Fiction 831 Audio books 70 Easy Non-Fiction 160 Miscellaneous 65 Interlibrary Loan 3 Computer Programs Books – Consortium 329 Media – Consortium 135 Total Print 4,408 Total Non-Print 3,316 Total Circulation 4/19 7,724 Downloadable Audio 662 Total Circulation 4/18 8,455 Downloadable EBooks 535 % change -8.6% % change in downloadable +20% In-House circulation 325 193 Page 2 of 2 Library Mid-Month Report Library Door Count……. 8,046 Income Fines $ 415.84 Xerox 159.25 Lost/Damaged 19.20 Test Proctoring Fee 20.00 Printing 273.00 Other 2.00 Total income $ 889.29 In April 10 volunteers worked about 58 hours. There were 18 children’s programs with 462 total in attendance, and 220 adult and family programs with 192 attendees. In April, we ordered 1 interlibrary loan item not available through the consortium and received 1 item, we returned 1 item and loaned 2 items to other libraries who are out of state or not in the consortium. Library Cards Issued April Kasilof 3 Kenai 28 Nikiski 5 Ninilchik 1 Non-Resident 3 Other Peninsula 6 Soldotna 4 Total 50 194 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: May 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 37% complete to date. Inside the facility the new Car Rental areas and Airline Tenant space 2 are nearing their final completion. Anticipating Grant and Budget moving into their new spaces within the next month. On the exterior the roof abatement continues, new roofing installation is now complete on about 1/3 of the building and is expected to continue through the end of May. Project Completion date remains scheduled for February 2, 2020. The A/E Team and Contractor have processed roughly 95% of the required submittals, as well as responding to 179 RFIs to date. The project is proceeding well. New Roofing Lounge & New Steel 195 Page 2 of 4 Mid-Month Report • 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. Submittals are being processed, however work has yet to begin due to additional unanticipated requirements from the FAA. Update: Contractor was able to mobilize and begin work on facility starting 4/29/19, demolition of training rooms is underway. Coordination with the FAA is now proceeding well. • 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. Two Bids were received with Peninsula Construction being the lowest responsive and responsible bidder. The City elected to execute a deductive alternate #1 which removed the digester blowers and associated DO probe from the project for budget purposes. Executed Contract is for $1,035,000.00 and shall provide for complete replacement of the three Aeration Basin Blowers and associated DO Probes and analyzer. Project is anticipated to take place throughout the summer with completion in the fall. Council approved the project through Resolution 2019-21 at the April 3, 2019 meeting. Notice to Award was issued to Peninsula Construction on April 10, 2019. Update: Contractor has mobilized to the site, submittals are ongoing. Notice to Proceed was issued on April 11, 2019. Project is expected to run through October 31, 2019. Blower Dissolved Oxygen Probe • 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 196 Page 3 of 4 Mid-Month Report documents being modified to account for the new damages. Invitations to Bid for this project will likely be May 2019. • Purchase Street Sweeper – Bid was awarded to Yukon Equipment and Street Sweeper was delivered 5/10/19 and placed into service! • 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 with Proposals due on April 4, 2019. A Professional Services Agreement was executed with Morrison Maierle on May 8, 2019. Site Visits are schedule for 5/13-5/14 with Design Documents anticipated completion of July 31, 2019, and a formal invitation to bid for construction first week of August 2019. 197 Page 4 of 4 Mid-Month Report • USACE Bluff Erosion – See City Manager’s report. Director’s Report from the Army Corp of Engineers was signed April 10, 2019. • 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. Update: The 16” new water main associated with this project has now been installed under the Highway. • 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 begin as early as June 2019. 198 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant, Airport Manager DATE: May 1, 2019 SUBJECT: May Mid-month Report 2018 Terminal Rehabilitation Project – Construction: This project is well under way. The Upper Deck is closed from April 1 through May 31, 2019. All Departure and Arrival traffic is at the north end of the terminal, south entrance is closed off. 2019 Airfield Marking, Crack Sealing, & Pavement Repair – Design is complete and the project will be advertised the week of May 7, 2019. 2019 Alaska Fire Training Facility Rehabilitation – A contract was awarded for design services and should be complete middle of July. Invitations to bid for construction will be advertised late July and early August 2019. In-house Activities – Airport Operations continues snow and sand clean-up on the airfield and terminal grounds. The float plane basin is open and the crew will be working on the slips and repairing the roof to the registration shack. 19th Annual Kenai Peninsula Air Fair - Mark your calendar for Saturday, June 8th! Posters and t- shirts are printed! We are very excited to have the 9th Army Band for live music and many military units have committed to the event. TSA Inspection – The annual TSA inspector will be at the Kenai Airport on May 13-14th. FAA Certification Inspection – The annual FAA 139 certification inspection will be held June 25- 27, 2019. 199 Page 2 of 2 Airport Mid-Month Report 2 Tri-annul Mass Casualty – A requirement of CFR 139.325 for a holder of a Class 1 Airport Operating Certificate is a full-scale airport emergency plan exercise at least once every 36 consecutive calendar months. This drill is scheduled for October 2, 2019. 200 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: May 6, 2019 SUBJECT: April 2019 Monthly Report This month the Kenai Animal Shelter took in 68 animals. Animal intake and disposition: DOGS: INTAKE 41 DISPOSITION 21 Waiver 16 Adopted 7 Stray 8 Euthanized 1 Impound 3 Claimed 5 Protective Custody 0 Field Release 0 Quarantine 3 Transferred to Rescue 8 Other Intakes 11 Other Dispositions 0 CATS: INTAKE 25 DISPOSITION 30 Waiver 12 Adopted 18 Stray 13 Euthanized 5 Impound 0 Claimed 1 Protective Custody 0 Field Release 0 Quarantine 0 Transferred to Rescue 6 Other Intakes 0 Other Dispositions 0 OTHER ANIMALS: INTAKE 2 DISPOSITION 2 Guinea Pig 2 Guinea Pig 2 DOA: 5 OTHER STATISTICS: Dog 4 Licenses (City of Kenai Dog Licenses) 11 Cat 1 Microchips (Dog and Cat) 2 Rabies Clinic 331 201 Page 2 of 2 Animal Control Mid-Month Report 2 Citations 6 Animal dropped with After Hours (days we are closed but cleaning and with KPD) 61.5 Volunteer Hours Logged ? Animals are known borough animals 31 Field Investigations & patrols Statistical Data: 223 2017 YTD Intakes 228 2018 YTD Intakes 246 2019 YTD Intakes 202 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: May 7, 2019 SUBJECT: Planning and Zoning April 2019 Report ____________________________________________________________________________ Below are a summary of activity in April 2019 for the Planning and Zoning Department. Planning and Zoning Commission Agenda Items and Resolutions The Planning and Zoning Commission recommended approval of one plat, recommended approval of one lease renewal of land within the Airport Reserve, and recommended approval one change to Kenai Municipal Code with amendments: • Resolution PZ2019-10 – Original Preliminary Plat of Inlet Woods 2019 Replat, submitted by McLane Consulting, Inc., P.O. Box 468, Soldotna, Alaska 99611, on behalf of the Hall Building LLC, P.O. Box 2829, Kenai, AK 99611 • Application for Renewal of Lease Land within the Airport Reserve submitted by Schilling Rentals LLC, for the property described as Lot 9A, FBO Subdivision No. 9, located at 433 N. Willow Street, Kenai, Alaska 99611 • Resolution PZ2019-13 – Amending Kenai Municipal Code 14.20.320 – Definitions - 14.20.330 – Standard for Commercial Marijuana Establishments and 14.22.010 – Land Use Table, to Incorporate Onsite Consumption of Marijuana at Retail Marijuana Establishments into the City of Kenai’s Code of Ordinances Planning and Zoning staff approved of two site plans administratively: 203 Page 2 of 2 Planning and Zoning Mid -Month Report • Resolution PZ2019-08 – Application for a landscaping/site plan approval for Kenai Peninsula Housing Initiative located at 2390 Redoubt Avenue, Kenai, Alaska 99611, and further described as Lot 2, Kenai Meadows • Resolution PZ2019-05 – Application for a landscaping/site plan approval for John C. Schweiger Loving Trust located at 255 South Willow Street, Kenai, Alaska 99611, and further described as Lot 8, Aleyeska Subdivision Part 2 Lands, Economic Development, and Outreach The City Planner attended a board meeting for the Kenai Peninsula Economic Development District. The City Planner attended a meeting of the 2020 U.S. Census Complete Count Committee. The City Planner attended a meeting of the City of Kenai Council on Aging to discuss planning resources from AARP. The City Planner attend a board meeting for the Alaska Chapter of the American Planning Association. 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 and following up with City lands contacts. City staff met to discuss Kenai Municipal Code for City-owned properties. Plans and Reports The City Planner met to discuss the Kenai Peninsula Coordinated Public Transit-Human Services Transportation Plan, with a draft plan expected to be released in May 2019. Code Enforcement 5 cases were opened in April 2019: • 2 – Junked or Abandoned Vehicles • 1 – Garbage • 2 – Illegal Structures 204 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: May 7, 2019 SUBJECT: Mid-month Report - May ____________________________________________________________________________ The department has been performing various maintenance tasks and making preparations in anticipation of the summer season. The following is a list of recent accomplishments: • Coordinating use of baseball and softball fields with KCHS. Late snow in Homer and in the Mat-Su Valley caused some scheduling issues and allowed Kenai to host some extra games. KCHS will be hosting the 2019 Region III Conference Softball Tournament, May 24 and 25. • Completed all interviews for our temporary maintenance openings. • Held our first annual Easter Egg Hunt on April 19, 2019. • Staff spent some time scouting various City properties for illegal camps. • Coordinated removal of dead spruce trees with a church organization. There are some pending trees in Municipal Park and a few behind the Main St. Tap & Grill along Ryan’s Creek Trail. • The Director and Mark Griffin inventoried beetle kill trees at the Kenai Golf Course on May 4, 2019. There are 65 to 70 trees that are recommended for removal. • Restrooms with running water were serviced and opened for use. Trash receptacles delivered to several spots. • Staff obtained permit and burned slash in the City yard. • Parking lot and sidewalk areas swept, including Municipal Park, Daubenspeck Family Park, Blue Star Memorial and Leif Hansen Memorial Park. • Maintenance is being performed to remaining ball diamonds at the Kenai Little League and Adult Softball complex. All fields should be opened and available for use by May 10. • Ordered & received fertilizer. • Solicited last year’s community gardeners for early sign-ups. • The department has recovered 18 sharps from the field since March 25. 205 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: May 6, 2019 SUBJECT: Police & Communications Department Activity – April 2019 Police handled 719 calls for service in March. Dispatch received 256 9-1-1 calls. Officers made 41 arrests. Traffic enforcement resulted in 117 traffic contacts and 45 traffic citations. There were 4 DUI arrests (1 felony). Officers investigated 9 motor vehicle crashes. There were no collisions involving moose. There were no collisions involving drugs or alcohol. April training included: The KPD officer on the SERT team attended two days of training. One officer attended a three day Street Crimes training in Anchorage. One officer attended a week of Child First interview training in Anchorage. One officer started a two week Drug Enforcement class in Anchorage. One dispatcher attended a week long emergency medical dispatching training conference in Washington, DC. In addition to handling police calls in various schools, the School Resource Officer assisted with ALICE drills at four of the Kenai schools. He also participated in a pre-prom safety presentation at KCHS and was present for prom. 2502 913 2673 997 2417 1090 0 1000 2000 3000 Total Police Service Calls 911 Calls Received 2019(Jan 1 - Apr 30)2018(Jan 1 - Apr 30)2017(Jan1 - Apr 30) 206 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: May 6, 2019 SUBJECT: April 2019 Monthly Report Congregate Meals Served (Dining Room) 1312 Home Delivered Meals 1426 Volunteer Hours (43 individuals) 553 Unassisted Transportation Rides 389 Assisted Transportation Rides 151 Social Security Video Service 53 individuals Senior Center Rentals 2 Total Events Sign Ins (through MySeniorCenter) 2,657 Total Unduplicated Participants (through MySeniorCenter) 274 Spring is here! April activities included a No-Host Dinner to Roscoe’s in Ninilchik, Easter egg decorating and a delicious Easter Brunch on Good Friday. The Senior Center is the new home for the local Pioneers of Alaska, which is a statewide organization whose mission is to collect and preserve the history of Alaska and maintain genealogy rolls of those who founded Alaska and made it their home. Monthly meetings are held on the 2nd Monday of each month at 6 p.m. The Pioneers used to meet at the Senior Center when it was housed in the Fort Kenai building. Spotlighting volunteer Don Erwin this month. Don is retired Marathon management and is quite essential to the weekly operations of the Senior Center. He volunteers regularly as a driver and trains staff on the use of the wheelchair van. He also serves as Vice-Chair of the Mayor’s Council on Aging. Don is a great asset to the Senior Center staff for his knowledge and abilities that he brings to the table. 207 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 6, 2019 SUBJECT: Quarterly Financial Report Attached is a relatively easily produced quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of March 31, 2019. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough through February. The first calendar quarter 2019 sales tax filings and tax payments are not in at this point and we will not be received for this quarter until the end of April or early May. State and Federal is below budget in all funds because of PERS aid. The State doesn’t actually give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we will record revenue and expenditures for these items. 208 Quarterly General Fund Expenditure Report For Quarter Ended March 31, 2019 Original * FY2018 FY2019 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 1,024,939$ 1,037,439$ -$ (1,037,439)$ 0.00% Taxes 10,722,698 10,980,713 10,980,713 7,938,685 (3,042,028) 72.30% Licenses/Permits and Ambulance 580,156 528,000 528,000 351,298 (176,702) 66.53% State/Federal 740,441 885,464 929,710 422,511 (507,199) 45.45% Dock/Multipurpose/Miscellaneous 152,902 119,500 119,500 116,097 (3,403) 97.15% Fines and Forfeitures 67,347 93,000 95,154 53,379 (41,775) 56.10% Interest and Miscellaneous 316,871 531,741 637,791 515,758 (122,033) 80.87% Transfers/Central Admin Fees 2,103,951 2,020,420 2,020,420 1,252,093 (768,327) 61.97% Total Revenues 14,684,366 16,183,777 16,348,727 10,649,821 (5,698,906) 65.14% EXPENDITURES & TRANSFERS General Government 01 City Clerk 247,305$ 311,005$ 312,555$ 213,474$ 99,081$ 31.70% 11 Legislative 158,693 174,150 174,150 124,798 49,352 28.34% 12 Legal 297,294 359,998 359,998 235,243 124,755 34.65% 13 City Manager 327,461 352,446 352,446 247,318 105,128 29.83% 14 Human Resources - 169,809 169,809 66,850 102,959 60.63% 15 Finance 635,325 709,531 709,531 494,420 215,111 30.32% 16 Land Administration 1,333 24,337 29,337 9,515 19,822 67.57% 18 Non-Departmental 478,599 903,077 910,577 424,697 485,880 53.36% 19 Planning and Zoning 198,156 226,876 226,876 155,027 71,849 31.67% 20 Safety 3,760 19,150 19,150 650 18,500 96.61% Total General Government 2,347,926 3,250,379 3,264,429 1,971,992 1,292,437 39.59% Public Safety 21 Police 2,852,647 3,107,201 3,109,355 2,184,952 924,403 29.73% 22 Fire 3,052,652 3,171,122 3,171,122 2,117,249 1,053,873 33.23% 23 Communications 788,262 858,551 858,551 575,640 282,911 32.95% 29 Animal Control 381,856 422,192 423,692 300,089 123,603 29.17% Total Public Safety 7,075,417 7,559,066 7,562,720 5,177,930 2,384,790 31.53% Public Works 31 Public Works Administration 196,415 185,811 185,811 102,843 82,968 44.65% 32 Shop 617,384 669,652 669,652 418,307 251,345 37.53% 33 Streets 961,944 1,077,437 1,077,437 579,350 498,087 46.23% 34 Buildings 320,542 386,950 386,950 241,713 145,237 37.53% 35 Street Lighting 173,925 172,819 176,396 118,429 57,967 32.86% 60 Dock 52,665 74,783 71,206 16,243 54,963 77.19% Total Public Works 2,322,875 2,567,452 2,567,452 1,476,885 1,090,567 42.48% Parks and Recreation & Culture 03 Visitor Center 179,048 180,251 180,251 129,779 50,472 28.00% 40 Library 893,001 892,033 900,283 575,662 324,621 36.06% #Parks, Recreation & Beautification 1,009,708 1,112,167 1,251,163 786,301 464,862 37.15% Total Parks and Recreation & Culture 2,081,757 2,184,451 2,331,697 1,491,742 839,955 36.02% Total Operating Expenditures 13,827,975 15,561,348 15,726,298 10,118,549 5,607,749 35.66% Transfer to other funds Street Improvement Capital Project Fund 75,172 200,000 200,000 200,000 - 0.00% Senior Center Impr. Capital Projects - 45,670 45,670 - 45,670 100.00% Kenai Recreation Center Capital Project Fund - 27,500 27,500 27,500 - 0.00% New City Shop Capital Project Fund 35,000 - - - - - Public Safety Building Capital Proj. Fund 120,000 35,000 35,000 35,000 - Kenai Animal Shelter Capital Proj. Fund 35,000 - - - - Cemetery Improvements Capital Proj. Fund 250,000 - - - - Senior Citizen Special Revenue Fund 176,739 170,857 170,857 128,142 42,715 25.00% Debt Service 142,002 143,402 143,402 143,271 131 0.09% Total Transfer to other funds 833,913 622,429 622,429 533,913 88,516 14.22% Total Expenditures & Transfers 14,661,888 16,183,777 16,348,727 10,652,462 5,696,265 34.84% Net Revenues over(under) Expenditures 22,478$ -$ -$ (2,641)$ (2,641)$ *Note: The original budget includes outstanding encumbrances at 6/30/2018. 209 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended March 31, 2019 Original * FY2018 FY2019 Amended YTD Actual Budget Budget Actual Variance % REVENUES Beach Parking 174,614$ 175,000$ 175,000$ 118,307$ (56,693)$ -32.40% Beach Camping 210,269 225,000 225,000 129,939 (95,061) -42.25% Dock Launch & Park 111,528 115,000 115,000 91,478 (23,522) -20.45% Dock Parking Only 12,009 15,000 15,000 9,547 (5,453) -36.35% Participant Drop-off Fee 7,481 8,000 8,000 5,943 (2,057) -25.71% Interest Earnings 1,522 750 750 - (750) -100.00% PERS Grant 1,546 4,169 4,169 - (4,169) -100.00% Credit Card Fees 674 (1,500) (1,500) (3,175) (1,675) 111.67% Total Revenue 519,643 541,419 541,419 352,039 (189,380) -34.98% EXPENDITURES Public Safety 114,542$ 96,686$ 96,686$ 86,431$ 10,255$ 10.61% Streets 32,938 61,066 61,066 40,358 20,708 33.91% Boating Facility 56,380 72,137 72,137 42,853 29,284 40.59% Parks, Recreation & Beautification 225,445 328,712 328,712 260,916 67,796 20.62% Total Expenditures 429,305 558,601 558,601 430,558 128,043 22.92% Net Revenues over Expenditures 90,338$ (17,182)$ (17,182)$ (78,519)$ (61,337)$ *Note: The original budget includes outstanding encumbrances at 6/30/2018. 210 Quarterly Airport Fund Expenditure Report For Quarter Ended March 31, 2019 Original * FY2018 FY2019 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ -$ 1,594,590$ -$ (1,594,590)$ 0.00% State/Federal 21,891 36,385 36,385 - (36,385) 0.00% Interest , Leases & Fees 797,425 716,745 716,745 621,526 (95,219) 86.72% Terminal Revenues 701,429 748,025 748,025 536,169 (211,856) 71.68% Landing Fees 401,556 432,500 432,500 288,749 (143,751) 66.76% Transfers In 1,210,348 1,230,025 1,230,025 - (1,230,025) 0.00% Total Revenues 3,132,649 3,163,680 4,758,270 1,446,444 (3,311,826) 30.40% EXPENDITURES & TRANSFERS Terminal Area 578,328$ 630,109$ 630,676$ 380,620$ 250,056$ 39.65% Airfield 1,631,810 1,731,779 1,757,779 1,259,043 498,736 28.37% Administration 287,537 596,199 357,611 206,753 150,858 42.18% Other Buildings & Areas 199,008 (68,278) 169,743 97,529 72,214 42.54% Training Facility 36,125 38,474 38,474 3,240 35,234 91.58% Total Expenditures 2,732,808 2,928,283 2,954,283 1,947,185 1,007,098 34.09% Transfer to other funds Airport Improvement Capital Projects 397,157 233,221 1,803,987 1,570,721 233,266 0.00% Total Transfer to other funds 397,157 233,221 1,803,987 1,570,721 233,266 12.93% Total Expenditures & Transfers 3,129,965 3,161,504 4,758,270 3,517,906 1,240,364 26.07% Net Revenues over Expenditures 2,684$ 2,176$ -$ (2,071,462)$ (2,071,462)$ *Note: The original budget includes outstanding encumbrances at 6/30/2018. 211 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended March 31, 2019 Original * FY2018 FY2019 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ -$ -$ -$ -$ 0.00% State/Federal 17,347 33,668 33,668 - (33,668) 0.00% Water/Sewer Fees 2,796,242 2,863,453 2,863,453 2,124,153 (739,300) 74.18% Penalty and Interest 36,959 43,250 43,250 34,013 (9,237) 78.64% Interest and Miscellaneous 36,550 19,000 19,000 3,768 (15,232) 19.83% Total Revenues 2,887,098 2,959,371 2,959,371 2,161,934 (797,437) 73.05% EXPENDITURES & TRANSFERS Water 841,231$ 967,771$ 980,271$ 673,372$ 306,899$ 31.31% Sewer 310,002 499,384 499,384 269,685 229,699 46.00% Wastewater Treatment Plant 1,116,312 1,208,057 1,208,057 771,910 436,147 36.10% Total Expenditures 2,267,545 2,675,212 2,687,712 1,714,967 972,745 36.19% Transfer to other funds - Water & Sewer Capital Projects 146,193 - - - - - Total Transfer to other funds 146,193 - - - - - Total Expenditures & Transfers 2,413,738 2,675,212 2,687,712 1,714,967 972,745 36.19% Net Revenues over Expenditures 473,360$ 284,159$ 271,659$ 446,967$ 175,308$ *Note: The original budget includes outstanding encumbrances at 6/30/2018. 212 Quarterly Senior Fund Expenditure Report For Quarter Ended March 31, 2019 Original * FY2018 FY2019 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 24,354$ 24,354$ -$ (24,354)$ 0.00% State Grants 198,577 203,626 203,626 143,136 (60,490) 70.29% USDA Grant 18,958 15,000 15,000 12,445 (2,555) 82.97% Choice Waiver 195,012 200,000 200,000 105,651 (94,349) 52.83% KPB Grant 126,207 126,207 126,207 126,207 - 100.00% United Way 9,598 15,000 15,000 3,631 (11,369) 24.21% Rents & Leases 8,324 13,000 13,000 3,478 (9,522) 26.75% Miscellaneous Donations 40,797 25,000 28,500 1,709 (26,791) 6.00% Donations - Senior Connection 50,000 50,000 50,000 11,918 (38,082) 23.84% Meal Donations 82,836 82,500 82,500 49,787 (32,713) 60.35% Ride Donations 6,870 7,000 7,000 3,211 (3,789) 45.87% Transfer from General Fund - Operations 176,739 170,857 170,857 128,143 (42,714) 75.00% Transfer from General Fund - Capital - 45,670 45,670 - (45,670) 0.00% Other (40) 300 300 20 (280) 6.67% Total Revenues 913,878 978,514 982,014 589,336 (392,678) 60.01% EXPENDITURES & TRANSFERS Senior Citizen Access 157,065$ 157,364$ 157,364$ 97,030$ 60,334$ 38.34% Congregate Meals 220,661 285,370 287,995 153,065 134,930 46.85% Home Meals 205,563 209,875 210,750 131,720 79,030 37.50% Senior Transportation 80,086 81,234 81,234 58,759 22,475 27.67% Choice Waiver 250,503 244,671 244,671 169,210 75,461 30.84% Total Expenditures 913,878 978,514 982,014 609,784 372,230 37.90% Transfer to other funds - - - - - - - Total Transfer to other funds - - - - - - Total Expenditures & Transfers 913,878 978,514 982,014 609,784 372,230 37.90% Net Revenues over Expenditures -$ -$ -$ (20,448)$ (20,448)$ *Note: The original budget includes outstanding encumbrances at 6/30/2017. 213 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: April 29, 2019 SUBJECT: March 2019 Quarterly Investment Report City of Kenai Investment Portfolio At March 31, 2019 the City had investments with a market value of $22,280,896 that is down from $24,304,851 at December 31, 2018. The City’s portfolio is yielding 2.24% that is up from 2.14% at December 31, 2019. City’s Investment Portfolio US Agency Securities $ 3,487,025 AML Investment Pool 487,341 Wells Fargo Money Market 1,590,806 FDIC Insured Certificates of Deposit 16,152,532 Bank Balance 563,192 Total $ 22,28,896 Permanent Fund Investments The first quarter 2019 saw a recovery of the fourth quarter 2018 sell-off and no change in the Federal Funds Rate. Equities propelled the portfolio to a return of 7.77% for calendar year 2019. Since inception the portfolio has returned 7.99%. As of March 31, 2019 the portfolio value was $28,558,245, comprised of $25,251,842 (88.42%) Airport Land Sale Permanent Fund, $3,158,393 (11.06%) General Land Sale Permanent Fund monies, and $148,011 (0.52%) Kenai Community Foundation holdings. With the Airport Land Sale Permanent Fund’s year ending balance of $23,429,628, the allowable transfer to airport operations for FY2019 is $1,203,690. The FY2019 budgeted amount was $1,230,025 meaning the actual will be $26,335 less than budgeted. This transfer will be made in June prior to yearend. Because of the sell-off in the fourth quarter of 2018 there will be no transfer in FY2019 from the General Land Sale Permanent Fund. Future transfers are more probable with the new methodology codified by Council. 214 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY March 31, 2019 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 563,192$ 0.40% Wells Fargo Secured Money Market 1,590,806 2.39% FDIC Insured Certificates of Deposit 16,152,532 2.37% Alaska Municipal League Investment Pool 487,341 2.34% Total Cash & Cash Equivalents 18,793,871 2.31% Average Yield Government Securities Maturities Less than 1 Year 1,000,000 2.43% Maturities 1 to 2 Years 1,997,505 1.69% Maturities Greater than 2 Years 489,520 1.50% Total Government Securities 3,487,025 1.88% Total Portfolio 22,280,896$ 2.24% Investment Portfolio - Purchase Price 20,394,240$ Investment Portfolio - Fair Value 06/30/18 20,134,606 Fair Value Adjustment - 06/30/18 (259,634) Fair Value Adjustment thru - 03/31/19 155,321 Cummulative Change in Fair Value (104,313)$ March 31, 2019 $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 Liquidity 20% Minimum Maturity 1 - 2 years Maturity over 2 years 30% Maximum Portfolio Liquidity Policy Minimum/Maximum Actual 215 CITY OF KENAI Investments 03-31-19 COK CITY OF KENAI INVESTMENTS 3/31/2019 Current year cost or Unrealized Expected Call 06/30/18 03/31/19 Gain Accrued EFFECT. SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE FHLMC 1.70 8/24/20 1 TIME 5/24/18 w/ 5 days 3134GBMD1 1,000,000 978,760.00 990,320.00 11,560.00 1,747.22 1.700 FNMA 1.375 3/30/21 9/30/2016 Quarterly w/10 days. Step 3/17 1.50, 3/18 1.75, 3/19 2.0, 3/20 3.25 3136G3DV4 500,000 485,080.00 493,695.00 8,615.00 3,456.60 2.000 FNMA 1.50 5/25/21 11/25/2016 Quarterly w/10 days.3136G3MW2 502,479 481,300.00 489,520.00 8,220.00 2,625.00 1.500 TVA 3.875 2/15/21 Bullet 880591EL2 555,678 514,815.00 513,490.00 (1,325.00) 2,475.69 1.370 US Treasury 1.625 3/31/19 Bullet 912828C65 1,000,451 1,000,451.07 1,000,000.00 (451.07) 8,125.00 2.430 TOTAL 3,558,607.95 3,460,406.07 3,487,025.00 26,618.93 18,429.51 1.800 FDIC Insured CD's CD - 12/31/10 3.55 AXP 12/4/23 27471 02589AA28 249,998 249,998.13 251,619.90 1,621.77 2,811.79 3.160 33681 06062R5M0 245,000 245,000.00 245,088.20 88.20 2,550.68 2.500 33648 06279KRF5 245,000 245,000.00 245,017.15 17.15 2,381.87 2.350 3.10 BANK MIDWEST CD 9/15/23 5170 063615BM9 245,000 245,000.00 246,913.45 1,913.45 312.12 3.100 2.60 OZK 11/4/19 110 06417NDZ3 245,000 245,000.00 245,262.15 262.15 488.66 2.600 1.60 BPRN 10/28/19 58513 064520AH2 245,000 242,040.40 243,843.60 1,803.20 53.70 1.600 2.30 BACR 10/18/22 57203 06740KLD7 245,000 236,385.80 240,697.80 4,312.00 2,547.33 2.300 2.85 BAY ST. SVGS BK 4/6/20 90311 072623AK7 245,000 245,000.00 245,911.40 911.40 2,219.10 2.850 1.65 BHLB 10/28/19 23621 084601KU6 245,000 242,199.65 243,917.10 1,717.45 1,738.83 1.650 2.30 CAMDEN NATION BANK 4/30/19 4255 133033DY3 245,000 245,000.00 245,004.90 4.90 2,346.63 2.300 2.4 COF 4/19/22 33954 1404202E9 247,000 240,825.00 244,426.26 3,601.26 2,663.54 2.400 2.4 COF 8/30/22 4297 14042RHS3 245,000 237,809.25 241,770.90 3,961.65 483.29 2.400 1.65 CATY 10/28/19 18503 149159LK9 245,000 242,199.65 243,914.65 1,715.00 55.38 1.650 2.60 CENBKK 6/18/20 35450 156444BG5 245,000 245,000.00 245,365.05 365.05 244.33 2.600 3.15 CFBANK 9/18/23 28263 15721UCQ0 245,000 245,000.00 247,430.40 2,430.40 296.01 3.150 3.30 C 9/7/23 7213 17312QS34 245,000 245,000.00 248,946.95 3,946.95 553.77 3.300 1.70 ADS 8/28/19 57570 20033AWB8 245,000 242,885.65 244,304.20 1,418.55 45.64 1.700 1.65 CWBKNA 12/30/19 57176 20084TJW4 247,000 243,549.41 245,535.29 1,985.88 357.30 1.650 2.75 DISCOVER BANK 9/21/20 5649 254673TS5 245,000 245,000.00 246,006.95 1,006.95 239.97 2.750 2.55 CMS 1/18/22 57293 29278TAK6 245,000 240,724.75 244,056.75 3,332.00 273.86 2.550 2.55 FRMRBT 3/19/20 1291 309162AE5 245,000 245,000.00 245,166.60 166.60 222.51 2.550 2.60 FRSTFD 1/10/20 58647 32026UMA1 245,000 245,000.00 245,259.70 259.70 1,396.16 2.600 2.85 FIBIND 6/30/20 34607 32056GDE7 245,000 245,000.00 246,136.80 1,136.80 612.16 2.850 1.60 FRME 12/30/19 4365 32082BEL9 247,000 243,369.10 245,441.43 2,072.33 346.48 1.600 2.30 FINN 02/21/20 5452 332135HH8 245,000 243,576.55 244,634.95 1,058.40 169.82 2.300 2.70 FRC 7/7/20 59017 33616CBR0 245,000 245,000.00 245,700.70 700.70 453.08 2.700 1.50 FSBDQN 6/28/19 21805 336460CC2 247,000 244,858.51 246,476.36 1,617.85 324.82 1.500 3.10 SRCE 10/21/22 9087 33646CKJ2 245,000 245,000.00 247,288.30 2,288.30 228.89 3.100 2.65 First St Bk Bigfork 10991 33651EAD4 245,000 245,000.00 245,367.50 367.50 213.45 2.650 2.80 FIRST WESTN TR BK 57607 337504AE4 245,000 245,000.00 245,820.75 820.75 206.74 2.800 2.35 GS 8/30/22 33124 38148PNS2 245,000 237,333.95 241,374.00 4,040.05 473.22 2.350 2.30 HSBC 7/14/22 57890 40434YLE5 245,000 237,341.30 241,266.20 3,924.90 1,188.75 2.300 2.55 HAFC 10/21/19 24170 410493DS6 245,000 245,000.00 245,188.65 188.65 188.28 2.550 2.60 IBKC 3/23/20 28100 45083AKP6 245,000 245,000.00 245,284.20 284.20 191.97 2.600 1.65 ILBKIL 10/31/19 33708 45906ABU0 245,000 242,177.60 243,902.40 1,724.80 354.41 1.650 19977 465076MS3 245,000 245,000.00 244,985.30 (14.70) - 2.350 2.30 KENNEB 08/24/20 17897 489265AZ1 245,000 242,243.75 244,424.25 2,180.50 586.66 2.300 1.65 KEY 10/25/19 17534 49306SZA7 245,000 242,226.60 243,934.25 1,707.65 1,749.90 1.650 2.60 LSAVBK 1/3/20 253 549104EF0 245,000 245,000.00 245,257.25 257.25 1,535.78 2.600 2.25 MBFI 2/14/20 3628 55266CYJ9 245,030 243,432.00 244,541.85 1,109.85 271.85 2.250 1.70 MSBKGR 10/24/19 5766 56062HAD1 245,000 242,395.65 244,007.75 1,612.10 91.29 1.700 8056 588493JS6 245,000 245,000.00 245,004.90 4.90 2,346.63 2.300 57777 58958PFB5 245,000 245,000.00 245,007.35 7.35 2,464.77 2.400 1.70 MERICK 8/30/19 34519 59013JA25 245,000 242,868.50 244,294.40 1,425.90 365.15 1.700 2.65 Metabank Sioux Falls SD 30776 59101LFD4 245,000 245,000.00 245,311.15 311.15 2,419.12 2.650 2.60 MS 2/15/22 32992 61747MK83 245,000 240,996.70 244,216.00 3,219.30 785.34 2.600 1.75 MS 9/30/19 34221 61760ADR7 245,000 242,981.20 244,318.90 1,337.70 375.89 1.700 2.05 NTLNYC 8/30/22 18734 634116CM7 245,000 234,438.05 238,973.00 4,534.95 440.33 2.050 3.40 NCBSVG 12/21/23 32612 635573AL2 247,234 247,233.86 250,034.75 2,800.89 2,305.01 3.220 2.75 NEWBUF 1/17/20 31257 643056BG8 245,000 245,000.00 245,575.75 575.75 276.88 2.750 2.15 NRTHFL 10/25/22 28710 66612ABX5 245,000 234,842.30 239,414.00 4,571.70 2,280.18 2.150 2.80 ORIENTAL BANK 9/14/20 31469 68621KCC3 245,000 245,000.00 246,166.20 1,166.20 375.89 2.800 2.10 SMARTB 11/27/19 58463 83172HDR8 245,000 243,436.90 244,465.90 1,029.00 56.38 2.100 1.75 SOWNAT 5/8/20 4801 845182BA1 245,000 240,563.05 243,042.45 2,479.40 281.92 1.750 2.75 SBIIN 02/16/23 33682 856285HZ7 245,000 239,877.05 243,961.20 4,084.15 812.19 2.750 2.35 SYF 10/20/22 27314 87164WTC2 245,000 236,856.20 241,097.15 4,240.95 2,571.16 2.350 2.15 EVER 10/28/22 34775 87270LAV5 245,000 234,785.95 239,379.70 4,593.75 2,208.02 2.150 2.05 THFDSL 10/27/21 30012 88413QBT4 245,000 237,356.00 241,508.75 4,152.75 2,146.60 2.050 1.60 TWNBNK 10/28/19 18487 89210PBL6 245,000 242,040.40 243,843.60 1,803.20 53.70 1.600 3.00 TOWN 9/27/21 35095 89214PCA5 245,000 245,000.00 247,364.25 2,364.25 120.82 3.000 2.80 UBS 9/14/20 57565 90348JDQ0 245,000 245,000.00 246,166.20 1,166.20 338.30 2.800 17266 90421MCL5 245,000 245,000.00 245,046.55 46.55 2,499.67 2.450 3.25 VYSTAR CREDIT UNION 12/11/20 68490 92891CCB6 245,000 245,000.00 248,219.30 3,219.30 698.08 3.250 1.70 WEX 10/18/19 34697 92937CGA0 245,000 242,449.55 244,042.05 1,592.50 1,882.81 1.700 2.00 WFC 10/27/22 3511 94986T2N6 245,000 240,016.70 244,492.85 4,476.15 2,094.25 2.000 2.50 ZION 8/14/19 2270 98970L3N1 245,000 245,000.00 245,093.10 93.10 2,315.75 2.500 TOTAL FDIC Insured CD's 16,185,262.20 16,033,315.11 16,152,531.69 119,216.58 65,984.86 2.368 WELLS MONEY MKT 1,590,806.18 1,590,806.18 1,590,806.18 - 3,041.94 2.390 AML POOL - City ACCT Agreed to Amlip 487,341.22 487,341.22 487,341.22 - 907.13 2.340 Agreed to GL 21,822,017.55 21,571,868.58 21,717,704.09 145,835.51 88,363.44 WF Cash Agreed to WF 563,191.81 563,191.81 563,191.81 - - 0.400 TOTAL 22,385,209.36 22,135,060.39 22,280,895.90 145,835.51 88,363.44 MONTHS (104,313.46) TOTAL CURRENT YIELD 2.2437% Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 6,684,268.77 2.5020%5,615,753 1,068,516.21 OK Liquidity 20% Minimum 4,456,179.18 2.1077%11,719,512 (7,263,332.51) OK Maturity 1 - 2 years 2.2729%4,945,632 2.2437%22,280,896 2.50 BOBIN 7/31/19 2.35 BOIIN 5/1/19 2.35 IDBNY 6/26/19 2.30 MERCHANTS BNK OF INDIANA 4/30/19 2.40 MERBKB 7/30/19 2.45 UMPQ 7/31/19 216 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY March 31, 2019 Current or Current Average Portfolio Target Portfolio 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 Yield Weight Weight Maximum Fixed Income Cash & Cash Equivalents 2,100,230 1,403,998 90,388 1,661,032 1,545,212 2.39%5.41% Total Cash & Cash Equivalents 2,100,230 1,403,998 90,388 1,661,032 1,545,212 Government & Corporate Securities Government Securities 4,902,429 5,372,788 7,514,414 5,874,888 6,821,504 2.38%23.89% Corporate Securities 5,661,962 5,577,526 5,166,325 5,153,955 4,570,777 2.82%16.01% Total Government & Corporate Securities 10,564,391 10,950,314 12,680,739 11,028,843 11,392,281 2.56%39.90% Total Fixed Income 12,664,621 12,354,312 12,771,127 12,689,875 12,937,493 2.55%45.31%45.00%65.00% Equities Domestic Equities Standard & Poor's 500 Index 5,529,449 5,579,731 5,702,415 5,007,131 5,751,108 20.14%20.00%25.00% Standard & Poor's 600 Small-Cap Index 1,459,340 1,412,562 1,402,625 1,170,059 1,323,301 4.63%5.00%10.00% Standard & Poor's 400 Mid-Cap Index 2,879,200 2,802,375 2,819,740 2,416,173 2,807,855 9.83%10.00%15.00% Total Domestic Equities 9,867,989 9,794,668 9,924,780 8,593,363 9,882,264 34.60%35.00%50.00% International Equities Europe Pacific ETF 3,335,175 2,957,795 2,893,212 2,577,221 2,845,695 9.96%10.00%15.00% Vanguard Emerging Market ETF 1,940,340 1,588,428 1,451,135 1,321,379 1,449,173 5.07%5.00%10.00% Total International Equities 5,275,515 4,546,223 4,344,347 3,898,600 4,294,868 15.03%15.00%25.00% Real Estate Vanguard REIT ETF 1,056,580 1,140,300 1,410,465 1,315,599 1,443,620 5.06%5.00%10.00% Total Real Estate 1,056,580 1,140,300 1,410,465 1,315,599 1,443,620 5.06%5.00%10.00% Total Equities 16,200,084 15,481,191 15,679,592 13,807,562 15,620,752 Total Portfolio 28,864,705 27,835,503 28,450,719 26,497,437 28,558,245 7.77%100.00%100.00%150.00% Total ALSPF Balance 25,520,119 24,612,777 25,156,764 23,429,629 25,251,842 Total GLSPF Balance 3,202,031 3,078,461 3,146,501 2,930,478 3,158,393 Total Kenai Community Foundation 142,554 144,265 147,454 137,330 148,011 Fair Market Value 0.00% 25.00% 50.00% 75.00% Fixed Income Standard & Poor's500 Index Standard & Poor's600 Small-Cap Index Standard & Poor's400 Mid-Cap Index Europe Pacific ETF VanguardEmerging Market ETF Vanguard REIT ETF Portfolio Composition Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight Current Month Current Quarter Year to Date Last 1 Year Inception to Date Portfolio 0.98%7.77%7.77%3.85%7.99% Benchmark 0.98%7.97%7.97%4.65%8.11% -5.00% 0.00% 5.00% 10.00% 15.00%Portfolio Performance 217 $15,000,000 $17,000,000 $19,000,000 $21,000,000 $23,000,000 $25,000,000 $27,000,000 Total ALSPF Balance Transfer of $1,195,313 to Airport Operations. Transfer of $1,147,714 to Airport Operations. Transfer of $1,184,356 to Airport Operations. Transfer of $1,210,348 to Airport Operations. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Total GLSPF Balance Transfer of $1,158,473 to Airport Operations. Transfer of $154,172 to General Fund Operations. Transfer of $153,493 to General Fund Operations. $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Total Kenai Community Foundation Balance $50,000 investment. $5,000 investment. Initial investment of $66,143. Transfer of $149,802 to General Fund Operations. Transfer of $161,561 to General Fund Operations. 218 Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCECurrentMonthCurrentQuarterYear toDateLatest 1YearInception toDatePortfolio0.98 7.77 7.77 3.85 7.99Benchmark0.98 7.97 7.97 4.65 8.110.001.002.003.004.005.006.007.008.009.00Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:Equity BlendPORTFOLIO COMPOSITIONFixed Income45%US Lg Cap20%US Md Cap10%US Sm Cap5%Int'l10%Emer Mkts5%Real Estate5%MANAGEMENT TEAMClient Relationship Manager: Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager: Bill Lierman, CFA®Contact Phone Number: 907/272 -7575ACCOUNT ACTIVITYPortfolio Value on 02-28-19 28,277,366Contributions 0Withdrawals -384Change in Market Value 203,369Interest 29,044Dividends 45,911Portfolio Value on 03-31-19 28,555,306CITY OF KENAI PERMANENT FUNDSAccount Statement - Period Ending March 31, 2019219 Alaska Permanent Capital Management Co. PORTFOLIO SUMMARY AND TARGET CITY OF KENAI PERMANENT FUNDS March 31, 2019 % Asset Class & Target Market Value Assets Range FIXED INCOME (45%) US Fixed Income (40.0%) 11,392,281 39.9 35% to 65% Cash (5.0%) 1,563,668 5.5 0% to 10% Subtotal: 12,955,949 45.4 EQUITY (50%) US Large Cap (20.0%) 5,751,108 20.1 15% to 25% US Mid Cap (10.0%) 2,807,855 9.8 5% to 15% US Small Cap (5.0%) 1,301,906 4.6 0% to 10% Developed International Equity (10.0%) 2,845,695 10.0 5% to 15% Emerging Markets (5.0%) 1,449,173 5.1 0% to 10% Subtotal: 14,155,737 49.6 ALTERNATIVE INVESTMENTS (5%) Real Estate (5.0%) 1,443,620 5.1 0% to 10% Subtotal: 1,443,620 5.1 TOTAL PORTFOLIO 28,555,306 100 220 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityFNMA & FHLMC20,773 FHLMC POOL G14203 104.5621,720 103.20 21,438 0.08 831 69 2.624.000% Due 04-01-26Accrued Interest69 0.0021,720 21,507 0.08 69CASH AND EQUIVALENTSDIVIDEND ACCRUAL 21,395 21,395 0.07WF ADV GOVT MM FD-INSTL #1751 1,542,273 1,542,273 5.401,563,668 1,563,668 5.48CORPORATE BONDS200,000 MICROSOFT CORP 117.24 234,472 100.24 200,476 0.70 8,400 2,800 2.684.200% Due 06-01-19200,000 HSBC USA INC 99.61 199,216 99.75 199,494 0.70 4,750 1,821 2.782.375% Due 11-13-19250,000 CAPITAL ONE 99.94 249,850 99.50 248,742 0.87 5,875 995 2.962.350% Due 01-31-20200,000 ENTERPRISE PRODUCTS OPER 112.75 225,494 103.33 206,666 0.72 10,400 867 2.785.200% Due 09-01-20250,000 PNC BANK NA 99.72 249,30099.60 248,995 0.87 6,125 2,484 2.702.450% Due 11-05-20200,000 NBC UNIVERSAL MEDIA LLC 109.20 218,408 103.30 206,608 0.72 8,750 4,375 2.664.375% Due 04-01-21200,000 AMERICAN EXPRESS CREDIT 99.92 199,850 99.35 198,698 0.70 4,500 1,825 2.572.250% Due 05-05-21200,000 MORGAN STANLEY 114.98 229,964 105.81 211,624 0.74 11,000 1,925 2.895.500% Due 07-28-21200,000 GILEAD SCIENCES INC 96.28 192,564 98.00 196,002 0.69 3,900 325 2.661.950% Due 03-01-22200,000 BANK AMER CORP 99.34 198,686 101.27 202,540 0.71 6,600 1,467 2.943.300% Due 01-11-23200,000 AVALONBAY COMMUNITIES 100.82 201,632 99.65 199,302 0.70 5,700 253 2.942.850% Due 03-15-23150,000 DISCOVERY COMMUNICATIONS 98.88 148,320 99.55 149,319 0.52 4,875 2,437 3.373.250% Due 04-01-23200,000 AFLAC INC 104.97 209,950103.92 207,836 0.73 7,250 2,135 2.633.625% Due 06-15-23200,000 BANK OF NEW YORK MELLON 97.83195,666 97.26 194,512 0.68 4,400 550 2.872.200% Due 08-16-23200,000 JPMORGAN CHASE & CO 105.18 210,362 104.10 208,192 0.73 7,750 1,292 2.963.875% Due 02-01-24200,000 METLIFE INC 105.46 210,930 103.32 206,638 0.72 7,200 3,420 2.883.600% Due 04-10-24221 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity175,000 PRUDENTIAL FINANCIAL INC 103.15 180,505 103.47 181,072 0.63 6,125 2,314 2.773.500% Due 05-15-24200,000 WELLS FARGO & COMPANY 99.88 199,764 100.78 201,568 0.71 6,600 403 3.143.300% Due 09-09-24150,000 KIMCO REALTY CORP 94.92 142,377 99.08 148,624 0.52 4,950 825 3.473.300% Due 02-01-25150,000 REYNOLDS AMERICAN INC 108.47 162,700 102.79 154,189 0.54 6,675 2,021 3.934.450% Due 06-12-25200,000 APPLIED MATERIALS INC 107.96 215,912 105.20 210,400 0.74 7,800 3,900 3.013.900% Due 10-01-25150,000 CITIGROUP INC 101.65 152,470 101.58 152,373 0.53 5,550 1,218 3.433.700% Due 01-12-26200,000 LOWE'S COS INC 100.05 200,098 97.35 194,704 0.68 6,200 2,549 3.483.100% Due 05-03-27Accrued Interest42,201 0.154,628,491 4,570,777 16.01 42,201DOMESTIC LARGE CAP EQUITY FUNDS/ETF18,975 FLEXSHARES QUAL DIV ETF 40.79 773,897 44.80 850,080 2.98 NA17,350 SPDR S&P 500 ETF 142.48 2,472,028 282.48 4,901,028 17.16 NA3,245,925 5,751,108 20.14DOMESTIC MID CAP EQUITY FUNDS/ETF14,825 ISHARES CORE S&P MIDCAP 400 ETF 72.98 1,081,926 189.40 2,807,855 9.83 NADOMESTIC SMALL CAP EQUITY FUNDS/ETF16,875 ISHARES S&P SMALLCAP 600 INDEX ETF 33.28 561,644 77.15 1,301,906 4.56 NAINTERNATIONAL EQUITY FUNDS/ETF23,400 ISHARES ETF CORE MSCI EAFE 51.54 1,206,15060.77 1,422,018 4.98 NA21,950 ISHARES MSCI EAFE INDEX FUND CLOSED-END FU 61.68 1,353,874 64.86 1,423,677 4.99 NA2,560,024 2,845,695 9.97EMERGING MARKET FUNDS/ETF28,025 ISHARES ETF CORE MSCI EMERGING MKTS 42.08 1,179,249 51.71 1,449,173 5.07 NAREAL ESTATE17,275 JPMORGAN BETABUILDERS MSCI US REIT ETF 76.55 1,322,481 83.57 1,443,620 5.06 NAU.S. TREASURY 200,000 US TREASURY NOTES 100.09 200,172 100.39 200,774 0.70 5,000 435 2.292.500% Due 02-28-21150,000 US TREASURY NOTES 100.06 150,094 97.57 146,349 0.51 1,687 424 2.241.125% Due 06-30-21222 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity375,000 US TREASURY NOTES 99.34 372,510 99.67 373,770 1.31 7,969 2,003 2.272.125% Due 06-30-21750,000 US TREASURY NOTES 100.59 754,414 99.36 745,192 2.61 15,000 6,305 2.262.000% Due 10-31-21525,000 US TREASURY NOTES 101.31 531,879 99.38 521,761 1.83 10,500 2,654 2.232.000% Due 12-31-21425,000 US TREASURY NOTES 97.12 412,765 99.66 423,555 1.48 9,031 2,270 2.232.125% Due 06-30-22350,000 US TREASURY NOTES 99.72 349,016 101.45 355,071 1.24 9,187 799 2.242.625% Due 02-28-23300,000 US TREASURY NOTES 98.24 294,727 101.07 303,210 1.06 7,500 932 2.242.500% Due 08-15-23500,000 US TREASURY NOTES 100.23 501,133 100.50 502,520 1.76 11,875 1,476 2.272.375% Due 08-15-24150,000 US TREASURY NOTES 99.71 149,561 102.58 153,867 0.54 4,125 1,037 2.302.750% Due 06-30-25110,000 US TREASURY NOTES 100.35 110,382 101.93 112,119 0.39 2,887 479 2.322.625% Due 01-31-26550,000 US TREASURY NOTES 99.75 548,645 101.14 556,253 1.95 13,750 1,196 2.322.500% Due 02-28-26205,000 US TREASURY NOTES 93.93 192,557 95.39 195,543 0.68 3,331 1,261 2.331.625% Due 05-15-26250,000 US TREASURY NOTES 95.26 238,145 97.57 243,915 0.85 5,000 1,892 2.352.000% Due 11-15-26190,000 US TREASURY NOTES 95.29 181,049 98.94 187,982 0.66 4,275 1,618 2.392.250% Due 11-15-27220,000 US TREASURY NOTES 98.74 217,225 102.85 226,274 0.79 6,050 752 2.392.750% Due 02-15-28300,000 US TREASURY NOTES 102.38 307,141 106.07 318,222 1.11 9,375 3,548 2.413.125% Due 11-15-28200,000 US TREASURY NOTES 100.48 200,953 101.84 203,672 0.71 5,250 653 2.412.625% Due 02-15-29Accrued Interest29,733 0.105,712,366 5,799,784 20.31 29,733AGENCIES250,000 FHLMC 99.73 249,32598.99 247,485 0.874,250 24 2.381.700% Due 09-29-20250,000 FEDERAL HOME LOAN BANK - STEP UP 99.85 249,625 98.73 246,835 0.86 5,000 1,889 2.362.000% Due 11-14-22300,000 FEDERAL FARM CREDIT BANK 100.00 300,000 100.00 300,000 1.05 8,550 3,729 2.852.850% Due 04-24-25200,000 FHLB 99.79 199,580 100.00 200,010 0.70 7,250 242 3.623.625% Due 03-19-27223 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityAccrued Interest5,883 0.02998,530 1,000,213 3.50 5,883TOTAL PORTFOLIO 22,876,025 28,555,306 100 309,050 77,887 224 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TradeDate Date Security Quantity AmountPURCHASESU.S. TREASURY 03-07-19 03-08-19 US TREASURY NOTES 125,000 124,833.992.625% Due 02-15-2903-08-19 03-12-19 US TREASURY NOTES 200,000 200,171.882.500% Due 02-28-2103-20-19 03-22-19 US TREASURY NOTES 150,000 150,691.412.500% Due 02-28-2603-22-19 03-25-19 US TREASURY NOTES 100,000 95,117.191.625% Due 05-15-2603-22-19 03-25-19 US TREASURY NOTES 75,000 76,119.142.625% Due 02-15-29646,933.61646,933.61DEPOSITS AND EXPENSESMANAGEMENT FEES03-31-19 03-31-19 MANAGEMENT FEES 4,046.284,046.28DividendDOMESTIC LARGE CAP EQUITY FUNDS/ETF03-15-19 04-30-19 SPDR S&P 500 ETF 21,394.6103-21-19 03-21-19 FLEXSHARES QUAL DIV ETF3,864.5825,259.19DOMESTIC MID CAP EQUITY FUNDS/ETF03-26-19 03-26-19 ISHARES CORE S&P MIDCAP 400 ETF10,389.51DOMESTIC SMALL CAP EQUITY FUNDS/ETF03-26-19 03-26-19 ISHARES S&P SMALLCAP 600 INDEX ETF4,395.16225 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TradeDate Date Security Quantity AmountREAL ESTATE03-25-19 03-25-19 JPMORGAN BETABUILDERS MSCI US REIT ETF5,867.1145,910.97InterestAGENCIES03-19-19 03-19-19 FHLB 3,625.003.625% Due 03-19-2703-29-19 03-29-19 FHLMC 2,125.001.700% Due 09-29-205,750.00CASH AND EQUIVALENTS03-01-19 03-01-19 WF ADV GOVT MM FD-INSTL #17512,902.90CORPORATE BONDS03-01-19 03-01-19 ENTERPRISE PRODUCTS OPER5,200.005.200% Due 09-01-2003-01-19 03-01-19 GILEAD SCIENCES INC 1,950.001.950% Due 03-01-2203-11-19 03-11-19 WELLS FARGO & COMPANY3,300.003.300% Due 09-09-2403-15-19 03-15-19 AVALONBAY COMMUNITIES2,850.002.850% Due 03-15-2313,300.00226 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TradeDate Date Security Quantity AmountFNMA & FHLMC03-15-19 03-15-19 FHLMC POOL G14203 70.814.000% Due 04-01-2622,023.71PRINCIPAL PAYDOWNSFNMA & FHLMC03-15-19 03-15-19 FHLMC POOL G14203 471.72 471.724.000% Due 04-01-26471.72Purchased Accrued InterestU.S. TREASURY 03-07-19 03-08-19 US TREASURY NOTES 190.352.625% Due 02-15-2903-08-19 03-12-19 US TREASURY NOTES 163.042.500% Due 02-28-2103-20-19 03-22-19 US TREASURY NOTES 224.182.500% Due 02-28-2603-22-19 03-25-19 US TREASURY NOTES 583.561.625% Due 05-15-2603-22-19 03-25-19 US TREASURY NOTES 206.662.625% Due 02-15-291,367.791,367.79SALES, MATURITIES, AND CALLSCORPORATE BONDS03-08-19 03-12-19 TORONTO-DOMINION BANK200,000 199,500.002.250% Due 09-25-1903-20-19 03-22-19 NEWELL BRANDS INC 150,000 147,447.003.850% Due 04-01-23346,947.00227 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TradeDate Date Security Quantity AmountU.S. TREASURY 03-07-19 03-08-19 US TREASURY NOTES 125,000 123,447.271.250% Due 02-29-2003-22-19 03-25-19 US TREASURY NOTES 170,000 170,484.772.625% Due 07-31-20293,932.04640,879.04Sold Accrued InterestCORPORATE BONDS03-08-19 03-12-19 TORONTO-DOMINION BANK2,087.502.250% Due 09-25-1903-20-19 03-22-19 NEWELL BRANDS INC 2,743.133.850% Due 04-01-234,830.63U.S. TREASURY 03-07-19 03-08-19 US TREASURY NOTES 33.971.250% Due 02-29-2003-22-19 03-25-19 US TREASURY NOTES 653.352.625% Due 07-31-20687.325,517.95WithdrawCASH AND EQUIVALENTS03-20-19 03-20-19 WF ADV GOVT MM FD-INSTL #1751383.81383.81228 Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 03-01-19 Through 03-31-19Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss03-07-19 125,000 US TREASURY NOTES 124,806.64 123,447.27 -1,359.371.250% Due 02-29-2003-08-19 200,000 TORONTO-DOMINION BANK203,782.00 199,500.00 -4,282.002.250% Due 09-25-1903-15-19 471.72 FHLMC POOL G14203 493.24 471.72 -21.524.000% Due 04-01-2603-20-19 150,000 NEWELL BRANDS INC 159,022.50 147,447.00 -11,575.503.850% Due 04-01-2303-22-19 170,000 US TREASURY NOTES 170,059.77 170,484.77 425.002.625% Due 07-31-20TOTAL GAINS 425.00TOTAL LOSSES -17,238.40658,164.16 641,350.76 -16,813.40 229 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TranDate Date Code Activity Security AmountWF ADV GOVT MM FD-INSTL #175103-01-19 Beginning Balance 1,497,549.9003-01-19 03-01-19 dp Interest WF ADV GOVT MM FD-INSTL #17512,902.9003-01-19 03-01-19 dp Interest ENTERPRISE PRODUCTS OPER 5,200.005.200% Due 09-01-2003-01-19 03-01-19 dp Interest GILEAD SCIENCES INC 1,950.001.950% Due 03-01-2203-07-19 03-08-19 wd Purchase US TREASURY NOTES -124,833.992.625% Due 02-15-2903-07-19 03-08-19 wd Accrued Interest US TREASURY NOTES -190.352.625% Due 02-15-2903-07-19 03-08-19 dp Sale US TREASURY NOTES 123,447.271.250% Due 02-29-2003-07-19 03-08-19 dp Accrued Interest US TREASURY NOTES 33.971.250% Due 02-29-2003-08-19 03-12-19 wd Purchase US TREASURY NOTES -200,171.882.500% Due 02-28-2103-08-19 03-12-19 wd Accrued Interest US TREASURY NOTES -163.042.500% Due 02-28-2103-08-19 03-12-19 dp Sale TORONTO-DOMINION BANK 199,500.002.250% Due 09-25-1903-08-19 03-12-19 dp Accrued Interest TORONTO-DOMINION BANK 2,087.502.250% Due 09-25-1903-11-19 03-11-19 dp Interest WELLS FARGO & COMPANY 3,300.003.300% Due 09-09-2403-15-19 03-15-19 dp Interest AVALONBAY COMMUNITIES 2,850.002.850% Due 03-15-2303-15-19 03-15-19 dp Interest FHLMC POOL G14203 70.814.000% Due 04-01-26230 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TranDate Date Code Activity Security Amount03-15-19 03-15-19 dp Paydown FHLMC POOL G14203 471.724.000% Due 04-01-2603-19-19 03-19-19 dp Interest FHLB 3,625.003.625% Due 03-19-2703-20-19 03-22-19 wd Purchase US TREASURY NOTES -150,691.412.500% Due 02-28-2603-20-19 03-22-19 wd Accrued Interest US TREASURY NOTES -224.182.500% Due 02-28-2603-20-19 03-22-19 dp Sale NEWELL BRANDS INC 147,447.003.850% Due 04-01-2303-20-19 03-22-19 dp Accrued Interest NEWELL BRANDS INC 2,743.133.850% Due 04-01-2303-20-19 03-20-19 wd Withdrawal from Portfolio -383.8103-21-19 03-21-19 dp Dividend FLEXSHARES QUAL DIV ETF 3,864.5803-22-19 03-25-19 wd Purchase US TREASURY NOTES -95,117.191.625% Due 05-15-2603-22-19 03-25-19 wd Accrued Interest US TREASURY NOTES -583.561.625% Due 05-15-2603-22-19 03-25-19 wd Purchase US TREASURY NOTES -76,119.142.625% Due 02-15-2903-22-19 03-25-19 wd Accrued Interest US TREASURY NOTES -206.662.625% Due 02-15-2903-22-19 03-25-19 dp Sale US TREASURY NOTES 170,484.772.625% Due 07-31-2003-22-19 03-25-19 dp Accrued Interest US TREASURY NOTES 653.352.625% Due 07-31-2003-25-19 03-25-19 dp Dividend JPMORGAN BETABUILDERS MSCI US REIT ETF5,867.1103-26-19 03-26-19 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF10,389.51231 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 03-01-19 To 03-31-19Trade Settle TranDate Date Code Activity Security Amount03-26-19 03-26-19 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF4,395.1603-29-19 03-29-19 dp Interest FHLMC 2,125.001.700% Due 09-29-2003-31-19 Ending Balance 1,542,273.47DIVIDEND ACCRUAL03-01-19 Beginning Balance 0.0003-15-19 04-30-19 dp Dividend SPDR S&P 500 ETF 21,394.6103-31-19 Ending Balance 21,394.61 232 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2019Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeFNMA & FHLMC3128MC3L7 256,397.0000 20,772.6600 FHLMC POOL G14203 104.562501 21,720.41 103.20200 21,437.80 69.24 830.91Accrued I69.2421,720.41 21,507.04 69.24 830.91CASH AND EQUIVALENTSDIVIDEND ACCRUAL 21,394.61 21,394.61 0.00VP4560000 WF ADV GOVT MM FD-INSTL #1751 1,542,273.47 1,542,273.47 0.001,563,668.08 1,563,668.08 0.00CORPORATE BONDS001055AL6 200,000.0000 200,000.0000 AFLAC INC 104.975000 209,950.00 103.91800 207,836.00 2,134.72 7,250.000258M0EB1 200,000.0000 200,000.0000 AMERICAN EXPRESS CREDIT 99.925000 199,850.00 99.34900198,698.00 1,825.00 4,500.00038222AJ4 200,000.0000 200,000.0000 APPLIED MATERIALS INC 107.956000 215,912.00 105.20000210,400.00 3,900.00 7,800.0005348EAR0 200,000.0000 200,000.0000 AVALONBAY COMMUNITIES 100.816000 201,632.00 99.65100 199,302.00 253.33 5,700.0006051GEU9 200,000.0000 200,000.0000 BANK AMER CORP 99.343000 198,686.00 101.27000 202,540.00 1,466.67 6,600.0006406FAD5 200,000.0000 200,000.0000 BANK OF NEW YORK MELLON 97.833000 195,666.00 97.25600194,512.00 550.00 4,400.0014042RFH9 250,000.0000 250,000.0000 CAPITAL ONE99.940000 249,850.00 99.49700 248,742.50 995.49 5,875.00172967KG5 150,000.0000 150,000.0000 CITIGROUP INC101.647000 152,470.50 101.58200 152,373.00 1,217.92 5,550.0025470DAH2 150,000.0000 150,000.0000 DISCOVERY COMMUNICATIONS 98.880000 148,320.00 99.54600149,319.00 2,437.50 4,875.0029379VAP8 200,000.0000 200,000.0000 ENTERPRISE PRODUCTS OPER 112.747000 225,494.00 103.33300 206,666.00 866.67 10,400.00375558BH5 200,000.0000 200,000.0000 GILEAD SCIENCES INC 96.282000 192,564.00 98.00100196,002.00 325.00 3,900.0040428HPN6 200,000.0000 200,000.0000 HSBC USA INC99.608000 199,216.00 99.74700 199,494.00 1,820.83 4,750.0046625HJT8 200,000.0000 200,000.0000 JPMORGAN CHASE & CO 105.181000 210,362.00 104.09600 208,192.00 1,291.67 7,750.0049446RAU3 150,000.0000 150,000.0000 KIMCO REALTY CORP 94.918000 142,377.00 99.08300148,624.50 825.00 4,950.00548661DP9 200,000.0000 200,000.0000 LOWE'S COS INC 100.049000 200,098.00 97.35200 194,704.00 2,548.89 6,200.0059156RBH0 200,000.0000 200,000.0000 METLIFE INC 105.465000 210,930.00 103.31900 206,638.00 3,420.00 7,200.00594918AC8 200,000.0000 200,000.0000 MICROSOFT CORP117.236000 234,472.00 100.23800 200,476.00 2,800.00 8,400.0061747WAL3 200,000.0000 200,000.0000 MORGAN STANLEY114.982000 229,964.00 105.81200 211,624.00 1,925.00 11,000.0063946BAE0 200,000.0000 200,000.0000 NBC UNIVERSAL MEDIA LLC 109.204000 218,408.00 103.30400206,608.00 4,375.00 8,750.0069353REU8 250,000.0000 250,000.0000 PNC BANK NA 99.720000 249,300.00 99.59800 248,995.00 2,484.03 6,125.0074432QBZ7 175,000.0000 175,000.0000 PRUDENTIAL FINANCIAL INC 103.146000 180,505.50 103.47000181,072.50 2,313.89 6,125.00761713BG0 150,000.0000 150,000.0000 REYNOLDS AMERICAN INC 108.467000 162,700.50 102.79300154,189.50 2,021.04 6,675.0094974BGA2 200,000.0000 200,000.0000 WELLS FARGO & COMPANY 99.882000 199,764.00 100.78400 201,568.00 403.33 6,600.00Accrued I42,200.974,628,491.50 4,570,776.97 42,200.97 151,375.00DOMESTIC LARGE CAP EQUITY FUNDS/ETF33939L860 18,975.0000 18,975.0000 FLEXSHARES QUAL DIV ETF 40.785097 773,897.21 44.80000 850,080.00 0.0078462F103 17,350.0000 17,350.0000 SPDR S&P 500 ETF142.479989 2,472,027.81 282.48000 4,901,028.00 0.003,245,925.02 5,751,108.00 0.00DOMESTIC MID CAP EQUITY FUNDS/ETF464287507 14,825.0000 14,825.0000 ISHARES CORE S&P MIDCAP 400 ET72.979855 1,081,926.35 189.400002,807,855.00 0.00 233 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2019Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeDOMESTIC SMALL CAP EQUITY FUNDS/ETF464287804 16,875.0000 16,875.0000 ISHARES S&P SMALLCAP 600 INDEX33.282625 561,644.29 77.15000 1,301,906.25 0.00INTERNATIONAL EQUITY FUNDS/ETF464287465 21,950.0000 21,950.0000 ISHARES MSCI EAFE INDEX FUND C61.679900 1,353,873.81 64.86000 1,423,677.00 0.0046432F842 23,400.0000 23,400.0000 ISHARES ETF CORE MSCI EAFE 51.544877 1,206,150.11 60.77000 1,422,018.00 0.002,560,023.92 2,845,695.00 0.00EMERGING MARKET FUNDS/ETF46434G103 28,025.0000 28,025.0000 ISHARES ETF CORE MSCI EMERGING42.078450 1,179,248.56 51.71000 1,449,172.75 0.00REAL ESTATE46641Q738 17,275.0000 17,275.0000 JPMORGAN BETABUILDERS MSCI US 76.554600 1,322,480.72 83.56700 1,443,619.92 0.00U.S. TREASURY 9128283F5 190,000.0000 190,000.0000 US TREASURY NOTES 95.289063 181,049.22 98.93800 187,982.20 1,617.89 4,275.009128283W8 220,000.0000 220,000.0000 US TREASURY NOTES 98.738636 217,225.00 102.85200 226,274.40 752.07 6,050.009128284A5 350,000.0000 350,000.0000 US TREASURY NOTES 99.718751 349,015.63 101.44900 355,071.50 798.91 9,187.509128285M8 300,000.0000 300,000.0000 US TREASURY NOTES 102.380210 307,140.63 106.07400 318,222.00 3,548.00 9,375.009128286A3 110,000.0000 110,000.0000 US TREASURY NOTES 100.347655 110,382.42 101.92600112,118.60 478.59 2,887.509128286B1 200,000.0000 200,000.0000 US TREASURY NOTES 100.476565 200,953.13 101.83600203,672.00 652.62 5,250.009128286D7 200,000.0000 200,000.0000 US TREASURY NOTES 100.085940 200,171.88 100.38700200,774.00 434.78 5,000.009128286F2 550,000.0000 550,000.0000 US TREASURY NOTES 99.753551 548,644.53 101.13700 556,253.50 1,195.65 13,750.00912828D56 500,000.0000 500,000.0000 US TREASURY NOTES 100.226562 501,132.81 100.50400 502,520.00 1,476.17 11,875.00912828F96 750,000.0000 750,000.0000 US TREASURY NOTES100.588543 754,414.07 99.35900745,192.50 6,304.95 15,000.00912828R36 205,000.0000 205,000.0000 US TREASURY NOTES 93.930453 192,557.43 95.38700 195,543.35 1,260.72 3,331.25912828S27 150,000.0000 150,000.0000 US TREASURY NOTES100.062500 150,093.75 97.56600146,349.00 424.21 1,687.50912828U24 250,000.0000 250,000.0000 US TREASURY NOTES 95.257812 238,144.53 97.56600 243,915.00 1,892.27 5,000.00912828U81 525,000.0000 525,000.0000 US TREASURY NOTES101.310269 531,878.91 99.38300521,760.75 2,653.85 10,500.00912828VS6 300,000.0000 300,000.0000 US TREASURY NOTES 98.242279 294,726.84 101.07000 303,210.00 932.32 7,500.00912828WR7 375,000.0000 375,000.0000 US TREASURY NOTES 99.335939 372,509.77 99.67200 373,770.00 2,003.19 7,968.75912828XG0 425,000.0000 425,000.0000 US TREASURY NOTES 97.121094 412,764.65 99.66000 423,555.00 2,270.29 9,031.25912828XZ8 150,000.0000 150,000.0000 US TREASURY NOTES 99.707033 149,560.55 102.57800 153,867.00 1,036.95 4,125.00Accrued I29,733.435,712,365.75 5,799,784.23 29,733.43 131,793.75AGENCIES3130ACNX8 250,000.0000 250,000.0000 FEDERAL HOME LOAN BANK - STEP 99.850000 249,625.00 98.73400 246,835.00 1,888.89 5,000.003130ADUE0 200,000.0000 200,000.0000 FHLB 99.790000 199,580.00 100.00500 200,010.00 241.67 7,250.003133EHGK3 300,000.0000 300,000.0000 FEDERAL FARM CREDIT BANK 100.000000 300,000.00 100.00000 300,000.00 3,728.75 8,550.003134GBH21 250,000.0000 250,000.0000 FHLMC 99.730000 249,325.00 98.99400 247,485.00 23.61 4,250.00Accrued I5,882.92998,530.00 1,000,212.92 5,882.92 25,050.00TOTAL PORTFOLIO22,876,024.60 28,555,306.16 77,886.56 309,049.66 234 Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCE0.000.050.100.150.200.250.300.350.40CurrentMonthCurrentQuarterYear toDateLatest 1YearInceptionto DatePortfolio0.28 0.30 0.30 N/A 0.30Benchmark0.21 0.39 0.39 N/A 0.39Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:FTSE 90 day t-billFixed Income Portfolio StatisticsAverage Quality: AAA Yield to Maturity: 2.38% Average Maturity: 0.22 YrsACCOUNT ACTIVITYPortfolio Value on 02-28-19 5,334,426Contributions 0Withdrawals 0Change in Market Value 10,311Interest 4,489Dividends 0Portfolio Value on 03-31-19 5,349,227PORTFOLIO COMPOSITIONCash79%US Treas21%MANAGEMENT TEAMClient Relationship Manager: Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager: Brandy Niclai, CFA®Contact Phone Number: 907/272-7575KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDAccount Statement - Period Ending March 31, 2019235 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDMarch 31, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityCASH AND EQUIVALENTSWFB PUBLIC INST BANK DEPOSIT ACCOUNT 70,493 70,493 1.32U.S. TREASURY 1,100,000 US TREASURY NOTES 99.57 1,095,316 99.69 1,096,568 20.50 13,750 3,456 2.491.250% Due 06-30-19Accrued Interest3,456 0.061,095,316 1,100,024 20.56 3,456TREASURY BILLS900,000 US TREASURY BILLS 99.67897,019 99.90 899,109 16.81 NA 0 2.240.000% Due 04-16-191,050,000 US TREASURY BILLS 99.42 1,043,889 99.66 1,046,440 19.56 NA 0 2.320.000% Due 05-23-191,050,000 US TREASURY BILLS 99.23 1,041,967 99.47 1,044,487 19.53 NA 0 2.370.000% Due 06-20-191,200,000 US TREASURY BILLS 98.79 1,185,493 99.06 1,188,672 22.22 NA 0 2.400.000% Due 08-22-194,168,367 4,178,709 78.12 0TOTAL PORTFOLIO 5,334,177 5,349,227 100 13,750 3,456 236 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 03-01-19 To 03-31-19Trade Settle TradeDate Date Security Quantity AmountDEPOSITS AND EXPENSESMANAGEMENT FEES03-31-19 03-31-19 MANAGEMENT FEES 668.65668.65InterestCASH AND EQUIVALENTS03-01-19 03-01-19 WFB PUBLIC INST BANK DEPOSIT ACCOUNT3,311.513,311.51237 Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 03-01-19 Through 03-31-19Avg. CostDate Quantity Security Basis Proceeds Gain Or LossTOTAL GAINS 0.00TOTAL LOSSES 0.000.00 0.00 0.00 238 Alaska Permanent Capital Management Co.CASH LEDGERKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 03-01-19 To 03-31-19Trade Settle TranDate Date Code Activity Security AmountWFB PUBLIC INST BANK DEPOSIT ACCOUNT03-01-19 Beginning Balance 67,181.6403-01-19 03-01-19 dp Interest WFB PUBLIC INST BANK DEPOSIT ACCOUNT3,311.5103-31-19 Ending Balance 70,493.15 239 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDMarch 31, 2019Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeCASH AND EQUIVALENTSWFBPIBDA6 WFB PUBLIC INST BANK DEPOSIT A 70,493.15 70,493.15 0.00U.S. TREASURY 912828XV7 1,100,000.0000 1,100,000.0000 US TREASURY NOTES 99.574219 1,095,316.41 99.68800 1,096,568.00 3,456.49 13,750.00Accrued I3,456.491,095,316.41 1,100,024.49 3,456.49 13,750.00TREASURY BILLS912796QH5 1,050,000.0000 1,050,000.0000 US TREASURY BILLS 99.417976 1,043,888.75 99.66100 1,046,440.50 0.00 0.00912796QM4 1,050,000.0000 1,050,000.0000 US TREASURY BILLS 99.234930 1,041,966.77 99.47500 1,044,487.50 0.00 0.00912796SE0 1,200,000.0000 1,200,000.0000 US TREASURY BILLS 98.791083 1,185,493.00 99.05600 1,188,672.00 0.00 0.00912796UX5 900,000.0000 900,000.0000 US TREASURY BILLS 99.668750 897,018.75 99.90100 899,109.00 0.00 0.004,168,367.27 4,178,709.00 0.00 0.00TOTAL PORTFOLIO5,334,176.83 5,349,226.64 3,456.49 13,750.00 240 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: MAY 15, 2019 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT REPAI R & BEACON OHSS KTF FIRE TRAINER TRAINING FACILITY MAINTENANCE 13,235.31 YUKON EQUIPMENT ANNUAL ARFF CERTIFICATION SHOP REPAIR & MAINTENANCE 3,500.00 ALASKA LIBRARY NETWORK AK DIGITAL LIBRARY ANNUAL FEE LIBRARY BOOKS 3,300.00 CREATIVE PRODUCT SOURCING DARE SUPPLIES POLICE OPERATING SUPPLIES 8,004.38 AXON ENTERPRISES BODY CAMERAS POLICE SMALL TOOLS 4,794.00 241 llS&llllTY 2"d Annual Disability Pride Event The Kenai Peninsula will celebrate its 2"d Disability Pride Celebration on Saturday, July 20, 2019 at the Soldotna Creek Park from 12pm-4pm. This is a national event, which celebrates the signing of the Americans with Disability Act. But it is particularly significant for our state, since we now have a Shared Vision for Developmental Disabilities in Alaska, which was signed into law in August 2018 . Celebrations will occur across the state in Anchorage, Juneau, Kodiak and Fairbanks. We anticipate a strong turnout for the event and are looking forward to seeing Senator Micciche on the giant, accessible slip and slide again. The day gives individuals with disabilities, and their families and friends, a chance to FULLY participate. As a community it's important to empower our people. We are doing this through inclusion and pride. This is a fully accessible and inclusive event in which all activities will be available to all individuals of any ability. We encourage individuals from all over the Kenai Peninsula to participate. In the future, we hope to ex pand and reach as many rural communities as possible . The budget for this event is $3000.00. We achieve this goal by inviting state and local businesses to participate. Proceeds will purchase the venue, t-shirts, self-advocacy, employer and community member awards, food and activities . All sponsors will be listed on the back of the 2019 Disability Pride t-shirt. Your donation is ta x deductible and a public acknowledgement and thank you will be printed in the Peninsula Clarion . Disability Pr ide extends a warm invitation to you and your busine ss to participate in this awesome community event. We hope to hear back from you by June 3, 2019. For more information, please contact Maggie Winston at 907-740-0410 or Nikki Marcano 907-262-6351. Donations can be mailed to the: Independent Living Center : 47255 Princeton Ave #8; Soldotna, AK 99669 Thanks in advance for your support. Disability Pride Coo r dinator 242 MAY 1 5, 2019 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to item D.1. Ordinance No. 3063-2019 • Amendment Memo - Healthcare City Manager • Amendment Memo – Kenai Watershed Forum Council Member Molloy • Public Comment – Kenai Watershed Forum City Clerk Add to item D.6. Resolution No. 2019-30 • Amendment Memo Council Member Molloy • Public Comment City Clerk Add to item D.9. Resolution No. 2019-33 • Amendment Memo City Manager MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 14, 2019 SUBJECT: Recommended Amendment to Ordinance 3063-2019 The purpose of this memo is to recommend amendments to the FY2020 Draft Budget and FY2020 Budget adoption ordinance, Ordinance 3063-2019, with the completion of employee benefit renewal negotiations. The administration is recommending the following renewal for employee benefits: 1. Renewal with PREMERA Blue Cross Blue Shield of Alaska for employee group medical insurance. Renewal premiums are 13.95% higher than FY2019 rates but after a one- month premium holiday, the year over year rate increase is 4.46%. The following changes to the plan design are considered minor: a. Increase in copay for specialty office visits from $25 to $65. b. Increase in copay for walk-in or urgent care visits from $25 to $40. c. Establishment of a $150 individual/$300 family deductible for Tier II, III & Specialty Drugs. The proposed benefit package will increase the funding amount of the City’s HRA to provide reimbursement for this new deductible. d. Increase in the copay amount for prescription drugs. Despite these plan design changes, the employee maximum exposure actually decreases because of the proposed increase to HRA funding. 2. Renewal with VSP to provide primary vision insurance. VSP provided a no increase bid for renewal. There are no proposed changes to the plan design. 3. Renew with PREMERA Blue Cross Blue Shield of Alaska for employee dental insurance. Renewal premiums are 11.99% lower than FY2019 rates and after a one-month premium holiday, the year over year rate decrease is 19.32%. There are no proposed changes to the plan design. Page 2 of 27 Page 2 of 3 Ordinance 3063-2019 4. Renewal with UNUM for employer provided and employee supplemental life insurance. UNUM provided a renewal quote with modest increases. With renewal, the administration is recommending increasing the employer provided coverage amount from one and one- half times and employees base pay with a $65,000 maximum to one and one-half times and employees base pay with a $100,000 maximum. In addition to plan design changes being imposed by PREMERA, the Administration recommends implementation of an Eligible Opt-out Arrangement to provide a financial compensation, $300 per month for a full-time employee or $150 per month for a part-time employee, who decline City insurance because they and their family have alternate coverage. An Eligible Opt-out Arrangement must meet the following six criteria: a. The employee must provide “reasonable evidence” that the employee has or is expected to have minimum essential coverage (MEC) for the relevant period (the plan year for which the opt-out payment is offered). b. The MEC cannot be coverage in the individual market, either on or off the exchange; but it can be government coverage such as Medicare Part A, most Medicaid, CHIP and most TRICARE programs. c. “Reasonable evidence” may be the employee’s attestation. d. Reasonable evidence/attestation must be provided at least annually. e. Reasonable evidence must be provided no earlier than a reasonable period of time before coverage starts (e.g., at open enrollment), and the employer can allow employees to provide it after the plan year starts. f. The arrangement must provide that the employer cannot make opt-out payments (and the employer in fact must not) if the employer knows or has reason to know that the employee does not or will not have MEC. The result of this renewal and these amendments will be a total FY2020 Budget increase of $206,705 or 8.64% with a projected increase in Employee Health Care Fund reserves of $121,001 in FY2020. This proposed renewal will allow for a reduction in the proposed expenditures for employee benefits which were included in the proposed budget. Employee monthly health care premiums based on this renewal will be: Employee monthly premium FY2020 FY2019 Change Employee Only $ 102.00 $ 98.00 $ 4.00 Employee w/Children 204.00 178.00 26.00 Employee w/Spouse 185.00 196.00 (11.00) Employee & Family 278.00 268.00 10.00 Part time Employee Only 469.00 455.00 14.00 Part time Employee w/Children 1,394.00 1,173.00 221.00 Part time Employee w/Spouse 1,212.00 1,349.00 (137.00) Part time Employee & Family 2,141.00 2,070.00 71.00 Cost per eligible employee Full time $22,501 $20,031 $2,470 Page 3 of 27 Page 3 of 3 Ordinance 3063-2019 Part time 11,251 10,016 1,235 Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the Employee Health Care Fund appropriation amount in Section 2 to be $2,598,511, the Total Internal Service Funds amount to be $2,788,511 and amend the Total All Funds appropriation amount to be $30,666,351. Budget Document Amendments Employee Health Care Fund Revenues: Participant premiums ($ 14,796) Expenditures: Insurance ($134,825) Attached is a revised copy of the Employee Health Care Fund Summary including the proposed amendments. Your support for these amendment is respectfully requested. Attached Page 4 of 27 City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary Original Manager Actual Actual Budget Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues Charge for Services -$ 1,903,581$ 2,148,495$ 2,148,495$ 2,436,200$ Participant premiums - 236,949 243,552 243,552 282,312 Transfer from Other Funds 117,637 - - - - Interest Earnings - 836 1,000 1,000 1,000 Total Revenues 117,637 2,141,366 2,393,047 2,393,047 2,719,512 Expenses - 2,010,581 2,391,806 2,391,806 2,598,511 Net Income (loss)117,637 130,785 1,241 1,241 121,001 Beginning Retained Earnings - 117,637 100,000 248,422 249,663 Available Retained Earnings 117,637$ 248,422$ 101,241$ 249,663$ 370,664$ Page 5 of 27 City of Kenai Fiscal Year 2020 Operating Budget Fund: 011- Employee Health Care Fund Department: 18 - Employee Health Care Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease)% Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries -$ -$ -$ -$ -$ -$ - 0200 Overtime - - - - - - - 0250 Holiday Pay - - - - - - - 0300 Leave - - - - - - - 0400 Medicare - - - - - - - 0450 Social Security - - - - - - - 0500 PERS - - - - - - - 0600 Unemployment Insurance - - - - - - - 0700 Workers Compensation - - - - - - - 0800 Health & Life Insurance - - - - - - - 0900 Supplemental Retirement - - - - - - - Total Salaries & Benefits -$ -$ -$ -$ -$ -$ - Maintenance and Operations 2021 Office Supplies - - - - - - - 2022 Operating & Repair Supplies - - 10,000 10,000 10,000 - - 2024 Small Tools/Minor Equipment - - - - - - - 2026 Computer Software - - - - - - - 4531 Professional Services 26,972 5,394 29,200 29,200 29,410 210 0.72% 4532 Communications - - - - - - - 4533 Travel & Transportation 1,544 309 10,000 10,000 10,000 - - 4534 Advertising - - - - - - - 4535 Printing & Binding - - - - - - - 4536 Insurance 1,982,065 396,413 2,342,606 2,342,606 2,549,101 206,495 8.81% 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts.- - - - - - - 4541 Postage - - - - - - - 4666 Books - - - - - - - 4667 Dues & Publications - - - - - - - 4999 Contingency - - - - - - - 5041 Miscellaneous - - - - - - - 5045 Depreciation - - - - - - - 5047 Grants to Agencies - - - - - - - Total Maint. and Operations 2,010,581$ 402,116$ 2,391,806$ 2,391,806$ 2,598,511$ 206,705$ 8.64% Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - - - - - - - 8063 Improvements - - - - - - - 8064 Machinery & Equipment - - - - - - - 9090 Transfers Out - - - - - - - Total Capital Outlay and Transfers -$ -$ -$ -$ -$ -$ - Department Total:2,010,581$ 402,116$ 2,391,806$ 2,391,806$ 2,598,511$ 206,705$ 8.64% Page 6 of 27 City of Kenai Fiscal Year 2020 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Employee Health Care 2022 Operating &Repair Supplies.Wellness committee supplies. 4533 Travel &Transportation.Wellness committee training and travel. 4531 Professional Services.Broker services,$25,000 and HRA/FSA administration charges, $4,410. 4536 Insurance.Medical, dental and prescription drug coverage, $2,333,122,HRA employer funding, $195,195, and employer provided life insurance, $20,784. Page 7 of 27 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 14, 2019 SUBJECT: Requested Amendment to Ordinance 3063-2019 At the request of Councilman Molloy, the following amendment language is provided for the FY2020 Draft Budget and FY2020 Budget adoption ordinance, Ordinance 3063-2019, to provide $5,000 in funding for baseline water quality testing of the Kenai River to be performed by the Kenai Watershed Forum. Budget Ordinance Amendments The following amendment is needed to Ordinance 3063-2019 to incorporate this recommendation. Amend the General Fund appropriation amount in Section 2 to be $16,556,301 and amend the Total All Funds appropriation amount to be $30,671,351. Budget Document Amendments General Fund Expenditures: Legislative Grants to Agencies $5,000 Attached is a revised copy of the General Fund Summary including the recommended amendment for your consideration. Attached Page 8 of 27 City of Kenai Fiscal Year 2020 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Proposed Projection Projection FY2017 FY2018 FY2019 FY2019 FY2020 FY2021 FY2022 TAXABLE VALUES (000'S)868,724$ 871,076$ 872,108$ 871,829$ 892,023$ 905,020$ 918,839$ MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 3,919,797 3,868,445 3,855,798 3,881,792 3,940,692 4,008,100 4,067,011 Sales Tax 6,715,501 6,854,253 7,124,915 7,207,189 7,387,175 7,572,053 7,761,354 Total Property & Sales Taxes 10,635,298 10,722,698 10,980,713 11,088,981 11,327,867 11,580,153 11,828,365 Intergovernmental Revenue: PERS Funding 288,137 218,726 386,406 386,406 470,553 484,670 499,210 Community Assistance 278,232 250,852 223,258 210,345 171,001 171,001 171,001 Fish Tax 165,087 118,543 165,000 130,000 130,000 133,900 137,917 Other 83,990 101,120 58,000 96,740 113,300 118,965 124,913 Total State/Federal Revenue 815,446 689,241 832,664 823,491 884,854 908,536 933,041 Other Revenue Licenses and Permits 48,557 93,863 63,500 63,000 105,500 108,665 111,925 Ambulance Fees 419,940 443,544 425,000 450,000 500,000 515,000 530,450 Interest 35,762 45,801 100,000 150,000 180,000 180,000 180,000 Other 613,358 585,268 736,541 683,256 606,346 624,536 643,272 Total Other Revenue 1,117,617 1,168,476 1,325,041 1,346,256 1,391,846 1,428,201 1,465,647 Total Revenues 12,568,361 12,580,415 13,138,418 13,258,728 13,604,567 13,916,890 14,227,053 Transfer From Other Funds Charges to other funds 1,494,200 1,542,390 1,574,200 1,574,200 1,596,000 1,643,880 1,693,196 Capital Projects / Special Revenue 124,303 - 283,221 283,221 50,000 50,000 50,000 Enterprise 34,000 400,000 - - - - - Trust Fund 149,802 161,561 162,999 - 124,252 126,737 129,272 Total Transfers 1,802,305 2,103,951 2,020,420 1,857,421 1,770,252 1,820,617 1,872,468 Total Revenues and Transfers 14,370,666 14,684,366 15,158,838 15,116,149 15,374,819 15,737,507 16,099,521 EXPENDITURES/APPROPRIATIONS General Government 2,682,321 2,347,926 3,237,629 3,250,379 3,397,394 3,470,048 3,539,449 Public Safety 6,679,790 7,075,417 7,559,066 7,559,066 7,733,840 7,888,517 8,046,287 Public Works 2,148,432 2,270,210 2,492,669 2,496,246 2,399,834 2,447,831 2,496,788 Parks, Recreation & Cultural 1,984,887 2,134,422 2,254,234 2,298,653 2,244,028 2,288,909 2,334,687 Total Operating Expenditures 13,495,430 13,827,975 15,543,598 15,604,344 15,775,096 16,095,305 16,417,211 Transfers or Non-Operating 745,130 833,913 622,429 622,429 781,205 640,684 652,405 Total Expenditures/Appropriations 14,240,560 14,661,888 16,166,027 16,226,773 16,556,301 16,735,989 17,069,616 Total Surplus (Deficit)130,106 22,478 (1,007,189) (1,110,624) (1,181,482) (998,482) (970,095) Projected Lapse - 5%- - 777,180 780,217 788,755 804,765 820,861 Adjusted Surplus (Deficit)130,106 22,478 (230,009) (330,407) (392,727) (193,717) (149,234) Beginning Fund Balance 10,418,100 10,548,206 10,463,198 10,570,684 10,240,277 9,847,550 9,653,833 Ending Fund Balance 10,548,206 10,570,684 10,233,189 10,240,277 9,847,550 9,653,833 9,504,599 Restricted (588,937) (682,068) (700,599) (718,068) (754,068) (790,068) (826,068) Committed (409,746) (6,976,762) (7,117,565) (7,169,452) (6,841,807) (6,620,870) (6,175,969) Assigned (1,409,610) (2,416,658) (2,415,025) (2,352,757) (2,251,675) (2,242,895) (2,502,562) Unassigned Fund Balance 8,139,913$ 495,196$ -$ -$ -$ -$ -$ Page 9 of 27 City of Kenai Fiscal Year 2020 Operating Budget Fund: 001 - General Fund Department: Legislative Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease)% Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries 48,000$ 48,060$ 48,000$ 48,000$ 48,000$ -$ - 0200 Overtime - - - - - - - 0250 Holiday Pay - - - - - - - 0300 Leave - - - - - - - 0400 Medicare 696 697 696 696 696 - - 0450 Social Security 2,976 2,980 2,976 2,976 2,976 - - 0500 PERS - - - - - - - 0600 Unemployment Insurance - - - - - - - 0700 Workers Compensation 174 159 142 142 149 7 4.93% 0800 Health & Life Insurance - - - - - - - 0900 Supplemental Retirement - - - - - - - Total Salaries & Benefits 51,846$ 51,896$ 51,814$ 51,814$ 51,821$ 7$ 0.01% Maintenance and Operations 2021 Office Supplies 20 173 200 200 200 - - 2022 Operating & Repair Supplies 1,837 2,729 2,800 2,800 2,800 - - 2024 Small Tools/Minor Equipment 943 1,548 10,800 10,800 1,200 (9,600) (88.89%) 2026 Computer Software 270 465 300 300 300 - - 4531 Professional Services 41,000 39,788 46,250 46,250 47,661 1,411 3.05% 4532 Communications 551 570 870 870 870 - - 4533 Travel & Transportation 7,444 8,313 12,000 12,000 10,000 (2,000) (16.67%) 4534 Advertising 7,905 5,916 3,600 3,600 2,500 (1,100) (30.56%) 4535 Printing & Binding - 57 500 500 500 - - 4536 Insurance - - - - - - - 4537 Utilities - - - - - - - 4538 Repair & Maintenance - - - - - - - 4539 Rentals - - - - - - - 4540 Equip. Fund Pmts.- - - - - - - 4541 Postage - - - - - - - 4666 Books - 32 200 200 200 - - 4667 Dues & Publications 7,440 7,480 8,120 8,120 8,120 - - 4999 General Contingency - - - - - - - 5041 Miscellaneous 5,835 7,256 5,950 5,950 5,950 - - 5045 Depreciation - - - - - - - 5047 Grants to Agencies 33,602 35,557 30,746 30,746 30,746 - - Total Maint. and Operations 106,847$ 109,884$ 122,336$ 122,336$ 111,047$ (11,289)$ (9.23%) Capital Outlay & Transfers 8061 Land - - - - - - - 8062 Buildings - - - - - - - 8063 Improvements - - - - - - - 8064 Machinery & Equipment - - - - - - - 9090 Transfers - - - - - - - Total Capital Outlay and Transfers -$ -$ -$ -$ -$ -$ - Manager Total:158,693$ 161,780$ 174,150$ 174,150$ 162,868$ (11,282)$ (6.48%) Page 10 of 27 City of Kenai Fiscal Year 2020 Operating Budget Fund: 001 - General Fund Department: 11 - Legislative 2024 Small Tools/Minor Equipment.IPad purchase for newly elected councilors. 4531 Professional Services. Annual City Audit. Peninsula Oilers water & Sewer 2,746$ Kenai Chamber of Commerce 4th of July Celebration 2,500 Kenai Chamber of Commerce holiday fireworks 3,500 Industry Appreciation Day 500 Economic Outlook Forum 500 Kenai Boys & Girls Club 10,000 Kenai Historic Society cabin docent 4,000 Kenai Watershed Forum 5,000 Miscellaneous grants to be identified 2,000 30,746$ 5047 Grants to Agencies.Operational or special project grants provided to local organizations. 4533 Travel &Transportation.Travel for councilors elected in 2019 to attend newly elected official's training and Alaska Municipal League Conference, Travel for the Mayor to attend Alaska Conference of Mayors and Alaska Municipal League Conference, and registration for seven to attend the Summer Alaska Municipal League Meeting in Soldotna. 4534 Advertising. Miscellaneous promotional items for the City. Page 11 of 27 Page 12 of 27 Page 13 of 27 Page 14 of 27 MEMORANDUM OF UNDERSTANDING March 2015 BETWEEN ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND ALASKA DEPARTMENT OF FISH AND GAME AND ALASKA DEPARTMENT OF NATURAL RESOURCES AND ANALYTICA, INC. AND CITY OF KENAI AND CITY OF SOLDOTNA AND COOK INLET AQUACULTURE ASSOCIATION AND THE KENAI PENINSULA BOROUGH AND THE KENAITZE INDIAN TRIBE AND THE KENAI WATERSHED FORUM AND U.S. FISH AND WILDLIFE SERVICE, ALASKA REGION AND U.S. FOREST SERVICE, CHUGACH NATIOINAL FOREST This Memorandum of Understanding between the above-listed parties, hereinafter referred to as Agencies/Organizations, reflects the general policy guidelines within which the Agencies/Organizations agree to operate in relation to the “Kenai River Watershed Water Quality Monitoring Program”, hereinafter referred to as the WQ Program. Page 15 of 27 WHEREAS, Water quality monitoring was identified in the “Kenai River Comprehensive Management Plan” adopted December 1997 as an important component to the management of the Kenai River and its health, and WHEREAS, The goal of the 1998 Framework for Water Quality Monitoring of the Kenai River is to provide a water quality monitoring strategy to ensure the environmental integrity of the Kenai River Watershed, and WHEREAS, Water quality monitoring began in 2000, resulting in data being collected under the WQ Program for 14 years, and WHEREAS, The water quality data collected under this program has been used to establish baseline conditions, conduct ongoing water quality trend analysis for numerous streams in the Kenai River Watershed and to prepare two water quality reports summarizing all data, trends and management implications, and WHEREAS, The data from this program have been used to identify problems in the Kenai River, and these problems have been addressed and resolved, maintaining the health and integrity of the Kenai River, and WHEREAS, Water quality data from this program have been collected under a Alaska Department of Environmental Conservation approved Quality Assurance Project Plan, and WHEREAS, The data collected under this project are in the public domain and available to the public, which fosters agency and community understanding of the current and future conditions of the Kenai River, and WHEREAS, The City of Soldotna, through its staff and facilities at the Wastewater Treatment Plant, has donated services to assist in analysis of Kenai River water samples, and WHEREAS, Analytica Inc. has donated a variable discount rate, based on the number of samples being analyzed and not to exceed 30%, for the analysis of Kenai River Watershed water samples and technical assistance in the design and implementation of the monitoring program, and WHEREAS, The Kenai National Wildlife Refuge has a congressionally established legal purpose to protect the water quality of the Refuge, and WHEREAS, Local, State and Federal Agencies, and non-governmental organizations party to this Memorandum of Understanding recognize the Kenai River to be important to the human and ecological community of the central Kenai Peninsula, and WHEREAS, There is a benefit to collecting water quality information for improving the understanding of the Kenai River Watershed, and Page 16 of 27 WHEREAS, There are benefits in coordinating efforts for the planning, collection, analysis, management and presentation of water quality data, and WHEREAS, The previous Memorandum of Understanding for the Kenai River Water Quality Monitoring Program signed in 2010 has expired. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: 1. To work cooperatively to facilitate a long-term Water Quality Monitoring Program for the Kenai River Watershed. 2. To support the collection and analysis of water samples for the Kenai River Watershed Waters Quality sampling effort through funding, in-kind services or other mechanisms to the degree allowed by normal planning and budget constraints and to the extent allowable by applicable laws, regulations and policies. 3. Public access to Memorandum of Understanding must not be limited, except when such records must be kept confidential and would have been exempted from disclosure pursuant to Freedom of Information regulations (5 U.S.C. 552). 4. Modifications within the scope of this Memorandum of Understanding must be made by mutual consent of the parties, by the issuance of a written modification signed and dated by all properly authorized, signatory officials, prior to any changes being performed. Request for the modification should be made, in writing, at least 30 days prior to implementation of the requested change. 5. Any of the parties, in writing, may terminate this Memorandum of Understanding in whole, or in part, at any time before the date of expiration. 6. The parties to this Memorandum of Understanding agree to be responsible for damages to their own property and injuries to their own employees/volunteers, except for damage/injuries resulting from the fault or negligence of the other party. Any claim for damage to property or persons made against the Government will be pursued in accordance with the provision of the Federal Tort Claims Act. 7. No member of, or Delegate to, Congress shall be admitted to any share or part of this Memorandum of Understanding, or any benefits that may arise there from; but this provision shall not be construed to extend to this agreement if made a corporation for its general benefit. Page 17 of 27 8. To acknowledge that this Memorandum of Understanding does not: A. Limit agencies, local governments, tribes or organizations in the collection or use of data for purposes other than that of the cooperative effort; B. Authorize any of the parties to obligate or transfer funds. Specific projects or activities that involve the transfer of funds, services, or property among the parties require execution of separate agreements and are contingent upon the availability of appropriated funds. C. Intend to conflict with federal, state, or local laws or regulations, with an understanding if there are conflicts, this agreement will be amended at the first opportunity to bring it into conformance with applicable laws or regulations; and D. Intend to enlarge or diminish the responsibilities or statutory authority of any of the signatories or any other party over the management of water or its resources within the Kenai River drainage. This Memorandum of Understanding will be effective through December 31st, 2019, at which time all parties will reevaluate the need and desire to enter into any subsequent understanding. Once all parties have signed and returned the Memorandum of Understanding, each party will receive a copy of the signatory pages. By signature below, each party certifies that the individual listed in the individual parties are authorized to act in their respective areas for matters related to this Memorandum of Understanding. In witness whereof, the parties hereto have executed this Memorandum of Understanding as of the last date written below. Page 18 of 27 SIGNATURE PAGE, INCLUDES: - Commissioner, Alaska Department of Fish and Game - Commissioner, Alaska Department of Environmental Conservation - Commissioner, Alaska Department of Natural Resources - Commissioner, Alaska Department of Fish and Game - Business Development Mangaer, Analytica Group LLC - Executive Director, Cook Inlet Aquaculture Association - City Manager, City of Kenai - City Manager, City of Soldotna - Mayor, Kenai Peninsula Borough - Forest Supervisor, Chugach National Forest - Regional Director, US Fish and Wildlife Service Page 19 of 27 Page 20 of 27 Page 21 of 27 Page 22 of 27 Page 23 of 27 ANCHORAGE KENAI SOLDOTNA JUNEAU HAINES SITKA HOMER ASPENHOTELSAK.COM P.O. Box 90244 Anchorage, AK 99509 P : 907.258.0006 May 15, 2019 Kenai City Council 210 Fidalgo Ave. Kenai, AK 99611 To Kenai City Council Members: This letter is sent in opposition to the Kenai Peninsula Borough’s intent to increase the sales/bed tax to 12% to be used for education. Understandably, in this tough economic crisis, additional revenue is needed to fund the Borough, but we object to a targeted tax on one industry and would advocate for a more broad-based approach that would include all businesses, or all Alaskans to share in. In the Kenai Borough’s proposal, Assembly Member Bagley has stated that the Borough does NOT have a bed tax. The current 6% sales tax is paid per night, per room, with no tax cap at our hotels – this is indeed the definition of a bed tax. Now with the proposed increase to 12% - the borough assembly is proposing to have the same tax as the largest cities in the state – Juneau and Anchorage. Aspen Hotels of Alaska has eight locations throughout the state – including the new 72 room Homer Aspen which will be opening next week. We just spent $200,000 remodeling our Kenai Aspen and $200,000 last year remodeling our Soldotna Aspen. We do this to provide a first-class lodging experienced for Alaskans, tourists, business travelers – we do it to maintain a high standard – all while not raising rates at all. The hotel industry is already paying more than our fair share of taxes as we pay by night with no tax cap. Fishing on the Kenai River has decreased. Oil companies have decreased their business on the Peninsula. Our occupancies continue to remain low. Driving up the cost of doing business, and targeting one industry by increasing taxes on them, doesn’t make for a fair and equitable business climate for the hotel industry on the Kenai Peninsula. We strongly oppose this potential increase and ask the Kenai City Council to carefully discuss the negative effects it may have on the Alaskan market – and therefore on all of the hotels on the Peninsula. I appreciate your consideration and time. Sincerely, George Swift President/Owner, Aspen Hotels of Alaska Page 24 of 27 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 14, 2019 SUBJECT: Resolution No. 2019-33 ____________________________________________________________________________ The purpose of this memo is to provide recommended amendments to Resolution 2019-33. At the time of drafting the resolution, negotiations had not yet been finalized for FY2020 City of Kenai employee benefits. With negotiations now complete, the following amendments are recommended to authorize the negotiated benefits, providers, and costs for FY2020 City of Kenai employee benefits. The Administration is recommending the following: 1. Renewal with PREMERA Blue Cross Blue Shield of Alaska for employee group medical insurance. Renewal premiums are 13.95% higher than FY2019 rates but after a one- month premium holiday, the year over year rate increase is 4.46%. The following changes to the plan design are considered minor: a. Increase in copay for specialty office visits from $25 to $65. b. Increase in copay for walk-in or urgent care visits from $25 to $40. c. Establishment of a $150 individual/$300 family deductible for Tier II, III & Specialty Drugs. The proposed benefit package will increase the funding amount of the City’s HRA to provide reimbursement for this new deductible. d. Increase in the copay amount for prescription drugs. Despite these plan design changes, the employee maximum exposure actually decreases because of the proposed increase to HRA funding. Page 25 of 27 Page 2 of 3 Resolution 2019-33 In addition to plan design changes being imposed by PREMERA, the Administration recommends implementation of an Eligible Opt-out Arrangement to provide a financial compensation, $300 per month for a full-time employee or $150 per month for a part-time employee, who decline City insurance because they and their family have alternate coverage. An Eligible Opt-out Arrangement must meet the following six criteria: a. The employee must provide “reasonable evidence” that the employee has or is expected to have minimum essential coverage (MEC) for the relevant period (the plan year for which the opt-out payment is offered). b. The MEC cannot be coverage in the individual market, either on or off the exchange; but it can be government coverage such as Medicare Part A, most Medicaid, CHIP and most TRICARE programs. c. “Reasonable evidence” may be the employee’s attestation. d. Reasonable evidence/attestation must be provided at least annually. e. Reasonable evidence must be provided no earlier than a reasonable period of time before coverage starts (e.g., at open enrollment), and the employer can allow employees to provide it after the plan year starts. f. The arrangement must provide that the employer cannot make opt-out payments (and the employer in fact must not) if the employer knows or has reason to know that the employee does not or will not have MEC. 2. Renewal with VSP to provide primary vision insurance. VSP provided a no increase bid for renewal. There are no proposed changes to the plan design. 3. Renew with PREMERA Blue Cross Blue Shield of Alaska for employee dental insurance. Renewal premiums are 11.99% lower than FY2019 rates and after a one-month premium holiday, the year over year rate decrease is 19.32%. There are no proposed changes to the plan design. 4. Renewal with UNUM for employer provided and employee supplemental life insurance. UNUM provided a renewal quote with modest increases. With renewal, the administration is recommending increasing the employer provided coverage amount from one and one- half times and employees base pay with a $65,000 maximum to one and one-half times and employees base pay with a $100,000 maximum. Amendments needed to the Resolution to adopt the proposed plan are: 1. Amend the third whereas to replace X.XX% with 3.13%. 2. Amend the fifth whereas to fill in the first blank with UNUM and fill in the second blank with no change. 3. Amend the sixth whereas to replace $X,XXX with $20,784. 4. Amend Section 1 to replace $X,XXX,XXX with $2,368,161. 5. Amend Section 3 by filling in the blank with UNUM and replacing $XX,XXX with $20,784. Page 26 of 27 Page 3 of 3 Resolution 2019-33 The result of this renewal and these amendments will be a total FY2020 Budget increase of $206,705 or 8.64% with a projected increase in Employee Health Care Fund reserves of $121,001 in FY2020. Your support for the renewal and these amendments is respectfully requested. Page 27 of 27 Kenai City Council Meeting Page 1 of 4 May 15, 2019 ACTION AGENDA KENAI CITY COUNCIL – REGULAR MEETING MAY 15, 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 routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3063-2019 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2019 and Ending June 30, 2020 and Committing $500,000 of General Fund, Fund Balance for Capital Improvements, Amending the Salary Schedule in Kenai Municipal Code Chapter 23.55- Pay Plan, Amending Employee Classifications in Kenai Municipal Code Chapter 23.50, and Amending Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23.55. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3064-2019 – Increasing Estimated Revenues and Appropriations by $339.90 in the General Fund – Police Department for State Traffic Grant Overtime Expenditures. (Administration) 3. ENACTED UNANIMOUSLY. Ordinance No. 3065-2019 – Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 2019-28 – Authorizing a Budget Transfer within the Water and Sewer Fund for Appraisal Costs Related to the Purchase of Well Radius Property for the City’s Public Water System. (Administration) Kenai City Council Meeting Page 2 of 4 May 15, 2019 5. ADOPTED UNANIMOUSLY. Resolution No. 2019-29 – Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2019 and Ending June 30, 2020. (Administration) 6. ADOPTED AS AMENDED. Resolution No. 2019-30 – Supporting Kenai Peninsula Borough Ordinance 2019-09 Amending the Borough’s Sales Tax Code to Levy a 12 Percent Tax on Temporary Lodging, Exempt Temporary Lodging Rentals from the General Sales Tax, and Allow Cities that Levy a Similar Sales Tax on Temporary Lodging to Exempt Up to One-Half of the Borough’s Temporary Lodging Tax, Subject to Borough Voter Approval. (Administration) 7. ADOPTED UNANIMOUSLY. Resolution No. 2019-31 – Awarding a Concession Agreement for Management and Administrative Services to Provide Summer Ice Activities at the City of Kenai Multi-Purpose Facility. (Administration) 8. ADOPTED UNANIMOUSLY. Resolution No. 2019-32 – Authorizing an Amendment to the Airport Advertising Concession Agreement for the Kenai Municipal Airport. (Administration) 9. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-33 – Authorizing Contracts for Employee Health Care and Other Benefits Effective July 1, 2019. (Administration) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of May 1, 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 Over $15,000. (Administration) 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Non-Objection to the Issuance of a New Liquor License for Griffin Golf, LLC. (City Clerk) 4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING SET FOR 06/05/19. *Ordinance No. 3066-2019 – Accepting and Appropriating a Grant from the Federal Aviation Administration for the 2019 Airfield Marking, Crack Sealing, and Minor Pavement Repair Project and Awarding a Construction Contract to Complete the Work. (Administration) 5. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING SET FOR 06/05/19. *Ordinance No. 3067-2019 – Accepting and Appropriating $26,605.40 in Asset Kenai City Council Meeting Page 3 of 4 May 15, 2019 Forfeiture Sharing Funds and Appropriating Those Funds Into the Police Small Tools Account for the Purpose of Purchasing Law Enforcement Equipment. (Administration) 6. INTRODUCED, REFERRED TO PLANNING & ZONING FOR RECOMMENDATION AT THEIR 5/22/19 MEETING, SET FOR PUBLIC HEARING BEFORE CITY COUNCIL ON 6/05/19. *Ordinance No. 3068-2019 – Amending Kenai Municipal Code 14.20.320- Definitions and 14.20.330- Standards for Commercial Marijuana Establishments to Prohibit Onsite Consumption of Marijuana at Retail Marijuana Stores Requiring an Onsite Consumption Endorsement. (Council Members Pettey and Glendening) 7. AMENDED UNANIMOUSLY. Ordinance No. 3062-2019 – Increasing FY2019 General Fund Estimated Revenues and Appropriations by $20,859 and FY2020 General Fund Estimated Revenues and Appropriations by $35,418 in the General Fund Parks, Recreation and Beautification Department for the Receipt of a Grant from the United States Environmental Protection Agency Passed Through the State of Alaska Department of Environmental Conservation for Bacteria Level Monitoring on the City’s Beaches from May to September During 2019 and 2020. (Administration) [Clerk’s Note: This ordinance was enacted at the 5/1/19 meeting. Notice has been received by the granting agency that the amounts of the grant have changed. A motion to amend something previously adopted is in order and as such, appearance on this agenda serves as notice.] 8. EXTENSION REQUEST FAILED. Action/Approval – Application for Extension of Lease Application Expiration Date for the Undeveloped Portion of Tract A, General Aviation Apron No. 2. (Administration) 9. APPROVED UNANIMOUSLY. Action/Approval – Consenting to the Assignment of Lease to Don Moffis for Lot 5, Block 1, Gusty Subdivision, Addition No. 1, Amended. (Administration) 10. APPROVED UNANIMOUSLY. Action/Approval – Awarding an Employment Agreement between the City of Kenai and City Attorney, Scott Bloom. (Mayor Gabriel) [Clerk’s Note: Council May Convene into Executive Session to Discuss this Agenda Item which Pursuant to AS 44.62.310(C)(2) May be a Subject that Tends to Prejudice the Reputation and Character of the Applicant and per AS 44.62.310(c)(1) is a Matter of which the Immediate Knowledge may have an Adverse Effect Upon the Finances of the City.] 11. AMENDED UNANIMOUSLY. Action/Approval – Amending an Employment Agreement between the City of Kenai and City Attorney, Scott Bloom. (Mayor Gabriel) 12. AMENDED UNANIMOUSLY. Action/Approval – Amending an Employment Agreement between the City of Kenai and City Manager, Paul Ostrander. (Mayor Gabriel) 13. AMENDED UNANIMOUSLY. Action/Approval – Amending an Employment Agreement between the City of Kenai and City Clerk, Jamie Heinz. (Mayor Gabriel) Kenai City Council Meeting Page 4 of 4 May 15, 2019 14. WORK SESSION SET FOR 6/11/19 AT 6:00 P.M. Discussion – Schedule a Work Session to Review and Discuss City Land Sale and Leasing Policies and Practices. (Administration) 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 – See item G.10. M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review 2. Disability Pride Event 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. C ITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE MAY 15, 2019 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and/or Resolution(s) at the above-referenced meeting . 1. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3063-20 19 -Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2019 and Ending June 30, 2020 and Committing $500 ,000 of General Fund, Fund Balance for Capital Improvements , Amending the Salary Schedule in Kenai Municipa l Code Chapter 23 .55-Pay Plan , Amending Employee Classifications in Kenai Municipal Code Chapter 23 .50 , and Amending Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23.55. (Administration) 2 . ENACTED UNANIMOUSLY. Ordinance No . 3064-2019 -Increasing Estimated Revenues and Appropriations by $339.90 in the General Fund -Police Department for State Traffic Grant Overtime Expenditures. (Administration) 3. ENACTED UNANIMOUSLY. Ordinance No. 3065-20 19 -Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 20 19-28 -Authorizing a Budget Transfer within the Water and Sewer Fund for Appraisal Costs Related to the Purchase of Well Radius Property for the City's Public Water System . (Administration) 5 . ADOPTED UNANIMOUSLY. Resolution No. 2019-29 -Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2019 and Ending June 30 , 2020 . (Administration) 6. ADOPTED AS AMENDED. Resolution No. 2019-30 -Supporting Kenai Peninsula Borough Ordinance 2019-09 Amending the Borough 's Sales Tax Code to Levy a 12 Percent Tax on Temporary Lodg ing , Exempt Temporary Lodging Rentals from the General Sales Tax, and Allow Cities that Levy a Similar Sales Tax on Temporary Lodging to Exempt Up to One-Half of the Borough's Temporary Lodging Tax, Subject to Borough Voter Approval. (Administration) 7. ADOPTED UNANIMOUSLY. Resolution No. 2019-31 -Awarding a Concession Agreement for Management and Administrative Services to Provide Summer Ice Activities at the City of Kenai Multi-Purpose Facility. (Administration) 8. ADOPTED UNANIMOUSLY. Reso lution No. 2019-32 -Authorizing an Amendment to the Airport Advertising Concession Agreement for the Kenai Municipal Airport. (Administration) 9. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-33 -Authorizing Contracts for Employee Health Care and Other Benefits Effective July 1, 2019. (Administration) Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk. Please be advised, subject to legal limitations, ordinances and/or resolutions may have been amended by the Council P,rior to adoption without further public notice. NOTICE OF PUB LI C HEARING MAY 15, 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. 3063-2019 -Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2019 and End ing June 30, 2020 and Committing $500,000 of General Fund, Fund Balance for Capital Improvements, Amending the Salary Schedule in Kenai Municipal Code Chapter 23 .55-Pay Plan , Amending Employee Classifications in Kenai Municipal Code Chapter 23 .50, and Amending Communication Department Uniform Allowance in Kenai Municipal Code Chapter 23 .55 . (Administration) 2. Ordinance No. 3064-2019 -Increasing Estimated Revenues and Appropriations by $339.90 in the General Fund -Police Department for State Traffic Grant Overtime Expenditures . (Administration) 3. Ordinance No. 3065-2019 -Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) 4. Resolution No. 2019-28-Authorizing a Budget Transfer within the Water and Sewer Fund for Appraisal Costs Related to the Purchase of Well Radius Property for the City's Public Water System . (Administration) 5 . Resolut ion No. 2019-29 -Fixing the Rate of Levy of Property Tax for the Fisca l Year Commencing July 1, 2019 and Ending June 30 , 2020. (Administration) 6. Resolution No. 2019-30-Supporting Kenai Peninsula Borough Ordinance 2019-09 Amending the Borough's Sales Tax Code to Levy a 12 Percent Tax on Temporary Lodging , Exempt Temporary Lodging Rentals from the General Sales Tax, and Allow Cities that Levy a Similar Sales Tax on Temporary Lodging to Exempt Up to One- Half of the Borough's Temporary Lodging Tax, Subject to Borough Voter Approval. (Adm inistration) 7 . Resolution No . 2019-31 -Awarding a Concession Agreemen t for Management and Administrative Services to Provide Summer Ice Activities at the City of Kenai Multi- Purpose Fac ility. (Administrat ion) 8. Resol ution N o. 2019-32 -Authorizing an Amendment to the Airport Advertis ing Concession Agreement for the Kenai Municipal Airport. (Administration) 9 . Resolution No. 2019-33-Authorizing Contracts for Employee Health Care and Other Benefits Effective July 1, 2019 . (Administration ) The public hearing will commence at 6:00 p.m ., or as soon thereafter as business permits, in the Kenai City Council Chambers , 210 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/o r resolutions are available in the Office of the Kenai City Clerk and will be avai lable 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 notic MEMO: TO: File FROM: Jamie Heinz, City Clerk DATE: May 16 , 2019 SUBJECT: Confidential Meeting Material Confidential material was presented to the Council and is sealed as a part of the permanent meeting record. For more information, contact me at 907-283-8231 or visit with me at City Hall, Office of the City Clerk. 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014