HomeMy WebLinkAbout2019-06-19 Council Packet KENAI CITY COUNCIL - REGULAR MEETING
JUNE 19, 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. 3069-2019 – Appropriating FY2019 Budgeted Funds for Municipal Roadway
Improvements in the Municipal Roadway Improvements Capital Project Fund for Future
Roadway Projects. (Administration)
Ordinance No. 3069-2019.pdf
D.2.Ordinance No. 3070-2019 – Authorizing a Budget Transfer in the General Fund, Decreasing
Estimated Revenues and Appropriations in the Senior Citizen Special Revenue Fund and
Appropriating FY2019 Budgeted Amounts in the Senior Center Improvement Capital Project
Fund for Carpet Replacement. (Administration)
Ordinance No. 3070-2019.pdf
D.3.Ordinance No. 3071-2019 - Increasing Estimated Revenues and Appropriations in the
General, Airport Special Revenue, Personal Use Fishery Special Revenue, and Senior
Citizen Special Revenue Funds; Authorizing the Binding of Insurance Coverage for the City
for the Period of July 1, 2019 through June 30, 2020; and Authorizing Execution of a
Three-Year Agreement for Insurance Coverage. (Administration)
a.Motion for Introduction
b.Motion for Second Reading (Requires a Unanimous Vote)
c.Motion for Adoption (Requires Five Affirmative Votes)
Ordinance No. 3071-2019.pdf 1
Kenai City Council Meeting Page 2
June 19, 2019
D.4.Resolution No. 2019-37 - Authorizing the City Manager to Enter Into an Automated Teller
Machine (ATM) Concession for the Kenai Municipal Airport. (Administration)
Resolution No. 2019-37.pdf
D.5.Resolution No. 2019-38 – Amending City Council Policy 2017-01, Procedures for the Use and
Management of City Issued Mobile Devices, to Provide Procedures for Planning and Zoning
Commission Use and Make Other Housekeeping Amendments. (Council Member
Knackstedt)
Resolution No. 2019-38.pdf
D.6.Resolution No. 2019-39 - Authorizing the Transfer of Funds from the General Fund Library
Department to the General Fund Buildings Department; and Authorizing the Issuance of a
Purchase Order in the Amount of $16,795.00 for the Replacement of ADA Automatic Door
Operators at the Library. (Administration)
Resolution No. 2019-39.pdf
D.7.Resolution No. 2019-40 – Authorizing a Budget Transfer in the General Fund – Police
Department for the Purchase of a Forensic Investigation Tool. (Administration)
Resolution No. 2019-40.pdf
D.8.Resolution No. 2019-41 – Authorizing a Facility Management Agreement with the Boys & Girls
Club of the Kenai Peninsula, Inc. for the Operation and Management of the Kenai Recreation
Center in the Amount of $130,000 Per Year. (Administration)
Resolution No. 2019-41.pdf
D.9.Resolution No. 2019-42 – Awarding an Agreement for Providing and Servicing Portable
Restrooms and Dumpsters on the North and South Kenai Beaches, Including Portable
Restrooms at the City Dock, During the 2019 Personal Use Fishery. (Administration)
Resolution No. 2019-42.pdf
D.10.Resolution No. 2019-43 – Awarding An Agreement For Providing And Servicing Road
Accessible Dumpsters At The End Of South Spruce Street, Kenai Little League Parking Lot
And Kenai City Dock During The 2019 Personal Use Fishery. (Administration)
Resolution No. 2019-43.pdf
D.11.Resolution No. 2019-44 - Supporting Kenai Peninsula Borough Ordinance 2019-11,
Repealing KPB 5.18.430(F) which Requires Voter Approval to Increase the Sales Tax Cap.
(Vice Mayor Navarre)
Resolution No. 2019-44.pdf
E.MINUTES
E.1.*Regular Meeting of May 15, 2019
05-15-19 Council Minutes - DRAFT.pdf
E.2.*Regular Meeting of June 5, 2019
06-05-19 Council Minutes - DRAFT.pdf
F.UNFINISHED BUSINESS
F.1.Ordinance No. 3068-2019 – Amending Kenai Municipal Code 14.20.320- Definitions and
14.20.330- Standards for Commercial Marijuana Establishments to Prohibit Onsite
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Kenai City Council Meeting Page 3
June 19, 2019
Consumption of Marijuana at Retail Marijuana Stores Requiring an Onsite Consumption
Endorsement. (Council Members Pettey and Glendening) [Clerk’s Note: This Item was
Postponed from the June 5 Meeting to This Meeting; A Motion to Enact is On the Floor]
•Substitute Ordinance No. 3068-2019 – Amending Kenai
Municipal Code 14.20.320 – Definitions, and Implementing a Moratorium Prohibiting Onsite
Consumption of Marijuana at Retail Marijuana Stores Requiring an Onsite Consumption
Endorsement Until July 1, 2021.
Ordinance No. 3068-2019.pdf
Substitute Ordinance No. 3068-2019.pdf
G.NEW BUSINESS
G.1.*Action/Approval – Bills to be Ratified. (Administration)
Payments over $15,000.pdf
G.2.*Action/Approval – Purchase Orders Exceeding $15,000. (Administration)
FY20 Purchase Orders.pdf
G.3.*Action/Approval – Non-Objection to the Renewal of a Marijuana Retail Store License for
Cook Inlet Cannabis Company, D/B/A East Rip. (City Clerk)
East Rip Renewal.pdf
G.4.*Action/Approval – Special Use Permit to Alaska Air Fuel, Inc. for Aircraft Loading and Parking
on the Apron. (Administration)
Alaska Air Fuel SUP.pdf
G.5.*Action/Approval – Special Use Permit to Crowley Fuels, LLC for Aircraft Loading and Parking
on the Apron. (Administration)
Crowley Fuel SUP.pdf
G.6.*Action/Approval – Special Use Permit to Empire Airlines, Inc. for Aircraft Parking on the
Apron. (Administration)
Empire Airlines SUP.pdf
G.7.*Action/Approval – Special Use Permit to Everts Air Fuel, Inc. for Aircraft Loading and Parking
on the Apron. (Administration)
Everts Air Fuel SUP.pdf
G.8.*Action/Approval – Special Use Permit to United Parcel Service Company for Aircraft Loading
and Parking on the Apron. (Administration)
United Parcel Service Co. SUP.pdf
G.9.Action/Approval – Special Use Permit to James Doyle d/b/a Weaver Brothers for Truck and
Trailer Storage. (Administration)
Weaver Brothers SUP.pdf
G.10.Action/Approval – Special Use Permit to Alaska Salmon Fertilizer for Filet Services to Collect
Fish Cleaning Waste. (Administration)
Alaska Salmon Fertilizer SUP.pdf
G.11.Action/Approval – Confirm Mayoral Nomination for Recommendation of City of Kenai
Representative to Kenai Peninsula Borough Planning and Zoning Commission. (Mayor
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Kenai City Council Meeting Page 4
June 19, 2019
Gabriel)
Borough P&Z Recommendation.pdf
G.12.Discussion – Land Sale and Leasing Policies and Procedures. (Administration)
Land Sale and Leasing Discussion.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
Midmonth Reports.pdf
J.2.City Attorney
J.3.City Clerk
K.ADDITIONAL PUBLIC COMMENT
K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker)
K.2.Council Comments
L.EXECUTIVE SESSION
M.PENDING ITEMS
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Kenai City Council Meeting Page 5
June 19, 2019
INFORMATION ITEMS
Purchase Orders between $2,500 and $15,000 for Council Review
Purchase Orders between $2,500 - $15,000.pdf
Federal Energy Regulatory Commission Notice of Intent – Kenai LNG Cool Down Project
Info - Trans Foreland.pdf
N.ADJOURNMENT
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to
the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231.
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New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3069-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING
FY2019 BUDGETED FUNDS FOR MUNICIPAL ROADWAY IMPROVEMENTS IN THE
MUNICIPAL ROADWAY IMPROVEMENT CAPITAL PROJECT FUND FOR FUTURE
ROADWAY PROJECTS.
WHEREAS, the FY2019 General Fund Budget included a $200,000 transfer to the Municipal
Roadway Improvement Capital Project Fund for project to be identified; and,
WHEREAS, in order to expend funds on projects, the funds must first be appropriated in the
Municipal Roadway Improvement Capital Project Fund; and,
WHEREAS, the administration is preparing projects which will be presented to Council for
approved by resolution; and,
WHEREAS, appropriation of the funds will allow projects to be identified and awarded via
resolution, thus shortening the time to begin work on projects.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the estimated revenues and appropriations be increased as follows:
Municipal Roadway Improvement Capital Project Fund:
Increase Estimated Revenues –
Transfer from the General Fund $200,000
Increase Appropriations:
Construction $200,000
Section 2. Identified projects will be presented to Council via resolution for approval prior to
expending of funds.
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.
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Ordinance No. 3069-2019
Page 2 of 2
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Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: ___________
Introduced: June 5, 2019
Enacted: June 19, 2019
Effective: June 19, 2019
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin – Public Works Director
DATE: May 30, 2019
SUBJECT: Ordinance No. 3069-2019
This memo recommends passage of Ordinance No. 3069-2019 appropriating FY2019 budgeted
funds for Municipal Roadway Improvements into the Municipal Roadway Improvement Capital
Project Fund for Future Roadway Projects.
The Public Works Department, in coordination with the Streets Department staff and the
Administration, are actively prioritizing projects, which will be brought to council for approval by
resolution in the weeks ahead. Approval of this Ordinance, coupled with the funds becoming
available July 1st with the FY2020 budget will allow the Public Works Department to effectively
address the street maintenance needs of the community.
Council’s support and approval is respectfully requested. Thank you for your consideration.
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_____________________________________________________________________________________
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3070-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A
BUDGET TRANSFER IN THE GENERAL FUND, DECREASING ESTIMATED REVENUES AND
APPROPRIATIONS IN THE SENIOR CITIZEN SPECIAL REVENUE FUND AND
APPROPRIATING FY2019 BUDGETED AMOUNTS IN THE SENIOR CENTER IMPROVEMENT
CAPITAL PROJECT FUND FOR CARPET REPLACEMENT.
WHEREAS, the FY2019 General Fund Budget included a $34,500 transfer to the Senior Citizen
Special Revenue Fund for replacement of carpet in the Senior Center Dining Room; and,
WHEREAS, the carpet replacement project will not be awarded by June 30, 2019 as the Senior
Center is awaiting grant approval; and,
WHEREAS, if the funds are not moved to the Senior Center Improvement Capital Project Fund
prior to year-end it will lapse requiring supplemental appropriation in FY2020; and,
WHEREAS, moving the funds to the Senior Center Improvement Capital Project Fund will make
the funds available until such time as the project is completed.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. The following budget transfer is authorized:
General Fund:
Transfer to Senior Citizen Special Revenue Fund $(34,500)
Transfer to Senior Center Improvement Capital Project Fund 34,500
$ -
Section 2. Estimated revenues and appropriations in the Senior Citizen Special Revenue
Fund be decreased as follows:
Revenues – Transfer from General Fund – Capital $(34,500)
Expenditures – Congregate Meals – Buildings $(34,500)
Section 3. Increasing estimated revenues and appropriations in the Senior Center
Improvement Capital Project Fund for dining room carpet replacement as follows:
Increase estimated revenues – Transfer from General Fund $34,500
Increase expenditures – Construction $34,500
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Ordinance No. 3070-2019
Page 2 of 2
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Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
upon adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: ___________
Introduced: June 5, 2019
Enacted: June 19, 2019
Effective: June 19, 2019
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin – Public Works Director
DATE: May 30, 2019
SUBJECT: Ordinance No. 3070-2019
This memo recommends passage of Ordinance No. 3070-2019 transferring funds to the Senior
Center Improvement Capital Project Fund. Public Works staff in coordination with the Senior
Center, has competitively quoted the requested flooring replacements. The following quotes were
received:
• Floor-Ever Inc. $29,953.00
• Four D Carpet-One Inc. $32,146.82
• Home Gallery $34,550.00
Floor-Ever was determined as providing the lowest responsible quote.
Senior Center staff is moving forward with this information in an application for a Rasmussen
Grant. Funds are being requested to roll into the Senior Center Capital Project Fund to allow time
for a determination to be made on grant eligibility. In the event the Senior Center staff is
successful in obtaining a grant a large portion of the costs associated with this work will be
covered by the grant.
Council’s support and approval is respectfully requested. Thank you for your consideration.
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3071-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL, AIRPORT SPECIAL
REVENUE, PERSONAL USE FISHERY SPECIAL REVENUE, AND SENIOR CITIZEN SPECIAL
REVENUE FUNDS; AUTHORIZING THE BINDING OF INSURANCE COVERAGE FOR THE
CITY FOR THE PERIOD OF JULY 1, 2019 THROUGH JUNE 30, 2020; AND AUTHORIZING
EXECUTION OF A THREE-YEAR AGREEMENT FOR INSURANCE COVERAGE.
WHEREAS, with the assistance of its broker, the City solicited quotes for General Liability &
Automobile, Property & Mobile Equipment, Airport Liability and Workers’ Compensation from the
two public entity risk pools operating in Alaska; and,
WHEREAS, Alaska Public Entity Insurance provided the lowest total quote for General Liability &
Automobile, Property & Mobile Equipment, Airport Liability, and Workers’ Compensation; and,
WHEREAS, after a coverage comparison, the City’s broker has recommended binding of
insurance with Alaska Public Entity Insurance for the policy year beginning July, 1, 2019 through
June 30, 2020 and executing a three-year agreement for coverage to commence on July 1, 2019
and ending June 30, 2022; and,
WHEREAS, execution of a three-year agreement for coverage entitles the City to a discount of
$29,629 and allows the City to terminate the agreement at any time should the annual premium
for coverage increase by more than 10% year over year, excluding changes in declared values;
and,
WHEREAS, sufficient funds were not included in the FY2020 budget for the General, Airport
Special Revenue, Personal Use Fishery Special Revenue, and Senior Citizen Special Revenue
Funds to bind coverage requiring supplemental funding, and;
WHEREAS, pursuant to KMC 1.15.70(d) the City may introduce and finally pass on the same day,
an ordinance making, repealing, transferring or otherwise changing an appropriation; and,
WHEREAS, maintaining quality and sufficient amounts of insurance coverage 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 estimated revenues and appropriations be increased as follows:
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Ordinance No. 3071-2019
Page 2 of 3
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General Fund:
Increase Estimated Revenues -
Appropriation of Fund Balance $14,498
Increase Appropriations –
Non-Departmental - Insurance $13,807
Non-Departmental - Transfer to Other Funds 691
$14,498
Airport Special Revenue Fund:
Increase Estimated Revenues -
Appropriation of Fund Balance $1,026
Increase Appropriations –
Airfield - Insurance $1,136
Airport Terminal – Insurance (762)
Airport Administration - Insurance 652
$1,026
Personal Use Fishery Special Revenue Fund:
Increase Estimated Revenues -
Appropriation of Fund Balance $542
Increase Appropriations –
Public Safety - Insurance $95
Streets – Insurance 55
Parks, Recreation & Beautification - Insurance 274
Boating Facility - Insurance 118
$542
Senior Citizen Special Revenue Fund:
Increase Estimated Revenues -
Transfer from General Fund $691
Increase Appropriations –
Senior Citizen Access - Insurance $159
Congregate Meals – Insurance 166
Home Meals - Insurance 124
Transportation – Insurance 69
Choice Waiver - Insurance 173
$691
Section 2. That the City Manager is authorized bind the City’s insurance coverages for the
policy period of July 1, 2019 through June 30, 2020 with Alaska Public Entity Insurance.
Section 3. That the City Manager is authorized to execute a three-year agreement for
insurance with Alaska Public Entity Insurance to for the period July 1, 2019 through June 30,
2022.
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Ordinance No. 3071-2019
Page 2 of 3
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New Text Underlined; [DELETED TEXT BRACKETED]
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: ___________
Introduced: June 19, 2019
Enacted: June 19, 2019
Effective: July 1, 2019
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attachment
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: June 11, 2019
SUBJECT: Ordinance 3071-2019 – Recommendation to bind coverage with
Alaska Public Entity Insurance.
The purpose of the memo is to recommend binding of General Liability & Automobile, Property &
Mobile Equipment, Airport Liability and Workers’ Compensation insurance with Alaska Public
Entity Insurance (APEI) for the period July 1, 2019 through June 30, 2020 and to authorize the
execution of a three-year agreement with APEI for these coverages.
Execution of a three-year agreement entitles the City to a discount of $29,629. The City may
terminate this agreement at any time should the annual premium for coverage increase by more
than 10% year over year, excluding changes in declared values.
APEI is the City’s current insurer, has provided the lowest renewal quote, and after review of the
quotes and policies is being recommended by our broker. See attached broker analysis and
recommendation.
Your support for Ordinance 3071-2019 is respectfully requested.
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THRU: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: June 11, 2019
SUBJECT: Ordinance 3071-2019
The purpose of the memo is to recommend introduction and adoption of Ordinance 3071-2019 at
the June 19, 2019 meeting of the Kenai City Council and to request the below amendments prior
to adoption.
Introduction and Adoption in a Single Meeting.
Generally, Ordinances are introduced at one meeting and voted on at the subsequent meeting to
provide public notice of the action at two separate meetings. KMC 1.15.070(d) as cited below,
provides for introduction and passage of appropriating ordinances in a single meeting.
KMC 1.15.070(d)
No ordinance, except an emergency ordinance or an ordinance making, repealing, transferring,
or otherwise changing appropriations, may be finally passed on the same day that it is introduced.
By unanimous consent of all Council Members present, such ordinances may be read a second
time and then, by the required vote, be passed, on the same day on which they are introduced.
All persons present shall be given an opportunity to be heard before the vote on final passage.
In an effort to assure greater public notice this provision is rarely utilized, in fact has not been
used during my 11-year tenure as your finance director. As a result of insurance costs for the
upcoming fiscal year exceeding budget estimates and the timing of which quotes were received,
I respectfully request utilization of the provision is KMC 1.15.070(d) for introduction and passage
of Ordinance 3071-2019 at the June 19, 2019 meeting of the Kenai City Council to provide
sufficient funds for binding of insurance coverages for FY2020.
Requested Amendments
After the deadline for packet item titles had passed, I received a revised quote from Alaska Public
Entity Insurance (APEI), the airport liability quote form the Alaska Municipal League Joint
Insurance Arrangement (AMLJIA), and the City’s broker policy comparison and recommendation.
Using these final quoted amounts a supplemental appropriation is no longer required for the
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Page 2 of 2
Ordinance 3071-2019 Memo
Airport Special Revenue Fund. As such, the following amendments are respectfully requested
prior to adoption:
1. Within the Ordinance title delete AIRPORT SPECIAL REVENUE,
2. Within Section 1 delete:
Airport Special Revenue Fund:
Increase Estimated Revenues -
Appropriation of Fund Balance $1,026
Increase Appropriations –
Airfield - Insurance $1,136
Airport Terminal – Insurance (762)
Airport Administration - Insurance 652
$1,026
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Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019 - 37
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE
CITY MANAGER TO ENTER INTO AN AUTOMATED TELLER MACHINE (ATM) CONCESSION
AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT.
WHEREAS, on May 3, 2019 the City of Kenai requested bids for an Automated Teller Machine
(ATM) Concession in the airport terminal for a period of five (5) years; and,
WHEREAS, one responsive bid was received on May 17, 2019 for the contract years July 1, 2019
through June 30, 2024; and,
WHEREAS, the bid amount received were as follows:
Bidder Per Month
Tyler Distributing 38% of gross receipts
; and,
WHEREAS, Tyler Distributing, Inc. submitted the only responsible bid for the ATM concession at
the Kenai Municipal Airport; and,
WHEREAS, the City Administration has determined this bid meets all requirements.
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 Automated Teller Machine
(ATM) Concession Agreement with Tyler Distributing, Inc. for the Kenai Municipal Airport for the
period July 1, 2019 through June 30, 2024.
Section 2. That this Resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary L. Bondurant, Airport Manager
DATE: June 10, 2019
SUBJECT: Resolution No. 2019-37 - Awarding ATM Concession Agreement
An Invitation to Bid for the Automated Teller Machine (ATM) Concession in the Terminal building
was advertised on May 3, 2019 with a bid opening on May 17, 2019.
One bid was received and found responsive.
Per Month
Tyler Distributing 38% of gross receipts
The Airport has a current Certificate of Insurance on file and Tyler Distributing is current in all
fees owed to the City.
Thank you for your consideration.
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Sponsored by: Council Member Knackstedt
CITY OF KENAI
RESOLUTION NO. 2019-38
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING CITY
COUNCIL POLICY 2017-01, PROCEDURES FOR THE USE AND MANAGEMENT OF CITY
ISSUED MOBILE DEVICES, TO PROVIDE PROCEDURES FOR PLANNING AND ZONING
COMMISSION USE AND MAKE OTHER HOUSEKEEPING AMENDMENTS.
WHEREAS, the City Council implemented a policy in January 2017 to govern their use of mobile
devices issued by the City; and,
WHEREAS, at the time the policy was implemented, there was no provision for a mobile device
for Planning and Zoning Commission members; and,
WHEREAS, the City Council recognizes the need to establish criteria governing the use and
management of a City issued mobile device for Planning and Zoning Commission members; and,
WHEREAS, City issued mobile devices are intended to replace the paper meeting packets that
are produced for the Mayor, Council Members, Student Representative, Planning and Zoning
Commission, and certain staff that support those bodies.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Council of Kenai adopts Resolution No. 2019-38 amending Policy
No. 2017-01 (attached) that will govern the use and management of City issued mobile devices
to Planning and Zoning Commission members.
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
__________________________________
BRIAN GABRIEL, SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
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Attachment A of Resolution No. 2019-38
POLICY NO. 2017-01: KENAI COUNCIL MOBILE DEVICE USE & MANAGEMENT
A. Purpose
The City of Kenai recognizes the benefits of utilizing digital communication and information, and
supports the utilization of the mobile devices by the Mayor, and City Council Members, Planning
and Zoning Commissioners, and certain support staff. Users of City issued mobile devices
acknowledge, understand and agree to the underlying mobile device and internet usage
philosophy that form the basis of this policy.
B. Receipt of Mobile Device
The City Clerk’s Office will issue and administer the use of City owned mobile devices that include
appropriate applications for use relating to City business. The City owned mobile device will serve
as the sole a source of meeting packets for City Council Members and Planning and Zoning
Commissioners.
C. Care of Mobile Device
Users are responsible for the general care of the City owned mobile device that they have been
issued by the City. City owned Mmobile devices must remain free of any writing, drawing, stickers,
or labels that are not the property of the City. Only a clean soft cloth should be used to clean the
screen.
D. Security of the Mobile Device
The City Council Member Users shall maintain a secure PIN or other password protection to avoid
access by unauthorized users. The PIN must be provided to the City Clerk and through the City
Clerk’s Office made accessible to the Information Technology (IT) Manager. The PIN may not be
shared with any unauthorized users.
E. Personally Owned Devices
Personal mobile devices are not managed by the Kenai City Clerk’s Office. For this reason, a
support need or issue related to a personal owned device is the responsibility of the device owner.
Specifically, the user is responsible for:
1. Settling any service or billing disputes with the carrier;
2. Purchasing any required software not provided by the manufacturer or wireless carrier;
3. Device registration with vendor and/or service provider;
4. Maintaining necessary warranty information;
5. Battery replacement due to failure or loss of ability to hold a charge;
6. Backing up all data, settings, media, and applications;
7. Installation of operating system and software application updates.
F. Software on Mobile Device
The software and applications installed by the City, or by request of the City, must remain on the
mobile device in usable conditions and be readily accessible at all times. The user may not
remove any software or applications installed by the City. From time to time, the City may add or
upgrade software applications such that users may be required to check in their mobile devices
25
Kenai City Council Policy No. 2017-01 (AMENDED)
Attachment A for Resolution No. 2019-38
Page 2 of 5
with the City Clerk for periodic installs, updates, and syncing. In the event it becomes necessary
to restore a mobile device to its original condition, the City will not be held responsible for the loss
of any software or documents or pictures deleted due to a re-format and re-imaging.
Files from sources that a user may have any reason to believe may be untrustworthy shall not be
downloaded, nor shall files attached to email transmissions be opened and read unless the user
has knowledge that they originate from a trustworthy source. Downloaded files and attachments
may contain viruses or hostile applications that could damage the City’s information systems.
Users will be held accountable for any damage caused by files obtained for non-City business
purposes.
G. Life of the Mobile Device
City issued mobile devices will be assessed annually and, if necessary, the City will purchase
upgraded devices through the budgeting process.
H. WARNING – NO PRIVACY
Communications made via City issued devices may be subject to disclosure under the Kenai
Municipal Code Chapter 10.40, Release of Public Records, the Alaska Public Records Act or for
litigation purposes unless a privilege or exception exists that justifies withholding the information.
I. Audits
All City issued mobile devices are subject to audit by the City. Excessive data usage may be
investigated, and any additional costs that cannot be justified for official City purposes may be
passed on to the user of the device. If contacted, users have three business days to provide their
mobile device to the City Clerk. They will be provided a “loaner” to use in the interim. Typically,
the mobile device will be returned to the user within five business days.
J. Representations
While operating a City issued mobile device a user advocating, advancing or expressing any
individual religious, political or personal views or opinions must clearly indicate that their views
are personal and not those of the City. Users may not represent their statements as official City
policy unless authorized to do so.
K. Email Usage for City Business
For the purposes of activity related to City business, the user shall conduct all email
communication through their assigned City email account, if applicable. All emails on the City
email account are archived and retained by the City. This account shall be synced to the mobile
device as well, but all City related business must be conducted through the City email address or
copied to the City email address if the user’s personal email box is used. Where possible, the
user’s assigned City email account must be configured as the primary or default account on the
mobile device.
L. Acceptable Use
The mobile device, Internet and email access provided are tools for conducting City business.
Thus, City use of such tools will be primarily for City business related purposes; i.e., to review City
26
Kenai City Council Policy No. 2017-01 (AMENDED)
Attachment A for Resolution No. 2019-38
Page 3 of 5
agenda materials and obtain useful information for City related business communications as
appropriate. All of the City’s computer systems, including the mobile device, are considered City
property. Mobile device, Internet and email activities will be traceable to the City and will impact
the reputation of the City. City issued mobile devices shall not be used to send or knowingly
download any vulgar, discriminatory or pornographic content. Users shall refrain from making any
false or defamatory statements, or from disclosing private facts without written authorization by
the affected parties, in any Internet forum or from committing any other acts that could expose
the City to liability.
City issued mobile devices are not to be used for operating a business for personal gain, sending
chain letters or any other purpose that interferes with the normal City business activities. Users
shall not use City issued mobile devices for any illegal activity.
Users will not store any protected City data (SSNs, Credit Card Numbers, Health information,
etc.) on the mobile device.
Users shall not use the mobile device during or outside of a city council meeting in any way that
violate the Open Meetings Act requirements of the State of Alaska and the City of Kenai.
Mobile device users are allowed to have music, photos, videos and install apps on their mobile
device; however, the items downloaded and synced to the mobile device must be in compliance
with Federal copyright laws and shall be acquired at the expense of the user. Any apps
downloaded by the user must originate from official sources. Users are encouraged to limit photos
and videos, as the amount of digital storage available on the mobile device is limited. If at any
time user purchased content or application interfere with the proper operation of the mobile
device, at the City’s sole discretion, user purchased content and applications may be removed to
ensure proper operation of the mobile device.
M. User Responsibility
It is the responsibility of the user to ensure the City provided mobile device is kept reasonably
safe, protected from damage or theft. Mobile devices must remain free of any writing, drawing
stickers or labels that are not the property of the City. Should a mobile device be accidentally lost,
damaged or stolen, responsibility shall be as follows:
1. First time: City shall repair or replace at no cost to the user.
2. Second time: The City shall pay half the cost of repair or replacement and the user shall
pay half the cost.
3. Third time: The user shall be entirely responsible for repair or replacement costs and shall
replace the unit within two weeks of the equipment loss.
Mobile devices that are damaged or destroyed through intentional misuse must be repaired or
replaced at the user’s expense. Exceptions for situations that are due to extenuating
circumstances may be authorized by the Mayor.
N. Loss or Theft of the Mobile Device; Remote Wipe
The user of the device must notify the Clerk’s Office immediately or as soon as practicable upon
loss, theft or suspected loss/theft of the device. Where possible, the contents of the device will be
remotely erased and the services associated with the device will be disabled.
27
Kenai City Council Policy No. 2017-01 (AMENDED)
Attachment A for Resolution No. 2019-38
Page 4 of 5
O. Return of the Mobile Device
1. City Council Members
Upon completion of at least one full term of service, the City Council Member may retain
their City issued mobile device for their personal use following the purge of all information
and City software. The City Council Member shall therefore return their mobile device to
the Clerk’s Office when the individual member’s term of service has ended. Upon
completion of the Council Member’s term(s) of service, which must include one full term,
the mobile device will be wiped clean of any and all information at the end of the term of
service. After it is wiped clean, the City Council Member will be given the option to retain
the mobile device for personal use as a token of appreciation for their services.
In the event the City Council Member does not serve a full term, the mobile device will be
returned to the City Clerk’s Office. It will be the City Council Member’s responsibility to
remove any personal data from the device prior to returning the device to the City Clerk’s
Office where it will be purged of all information.
2. Planning and Zoning Commission Members and Support Staff
When the individual’s term and/or service as a Planning and Zoning Commissioner or
employee has ended, the user shall return their mobile device to the City Clerk’s Office.
It will be the user’s responsibility to remove any personal data from the device prior to
returning the device to the City Clerk’s Office. Upon return of the mobile device to the
City, records and documents will be saved and stored according to the City’s record
retention schedule. Before issuing to another user, the mobile device will be wiped clean
of any and all information.
P. Indemnification
The City bears no responsibility whatsoever for any legal action threatened or commenced due
to conduct and activities of City Council Members in accessing or using these resources. All City
Council Members agree to indemnify and hold harmless the City against any and all claims of any
kind or nature whatsoever for damages, including tangible and intangible damages, costs and
expenses suffered by the City arising out of any unlawful or improper conduct and activity, and in
respect of any action, settlement or compromise, or any statutory infringement.
Legal prosecution following a breach of these conditions may result independently from any action
by the City.
Q. Student Representative
The City Clerk’s Office will issue and administer the use of a mobile device for the Student
Representative to the City Council, which will include appropriate applications for use relating to
City business conducted by the Student Representative. In addition to the policies listed herein,
the student’s device will be maintained in the Office of the City Clerk and provided to the Student
Representative, loaded with any necessary meeting material, for all regular and special City
Council meetings and all work sessions. The device will be returned to the City Clerk or the City
Clerk’s representative after each meeting or work session.
28
Kenai City Council Policy No. 2017-01 (AMENDED)
Attachment A for Resolution No. 2019-38
Page 5 of 5
R. Compliance with Policy
The City reserves the right to inspect any and all files stored on mobile devices that are the
property of the City in order to ensure compliance with this policy. Users do not have any personal
privacy right in any matter created, received, store in or sent from any City issued mobile device,
and the City Clerk is hereby authorized to institute appropriate practices and procedure to ensure
compliance with the policy. Any violation of this policy may result in discipline pursuant to Council
direction.
I hereby certify that I have received a written copy of the Electronic Device Policy. I have read
and fully understand the terms of this policy and agree to abide by it.
Signed: Dated:
Device Serial Number:
(Printed Name)
Effective Date: June 19, 2019 Approved by Resolution 2017-02
Amended by Resolution 2018-67
Amended by Resolution 2019-38
29
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Council Member Knackstedt
DATE: June 6, 2019
SUBJECT: Resolution No. 2019-38 – Amending Mobile Device Policy
At their May 8 Planning and Zoning Commission meeting a request was made that iPads be provided
for the Planning and Zoning Commission members and during the budget process, funds were
identified which fulfill that request. As such, the Mobile Device Policy should be amended to include
provisions for the Planning and Zoning Commission members. The provisions I’ve proposed for the
Planning and Zoning Commission members requires that the devices be returned after the individual’s
service has ended and the device be preserved and maintained for the use of a future Planning and
Zoning Commission member. This policy to return the device at the end of the individual’s service is
consistent with the Kenai Peninsula Borough, City of Soldotna, City of Palmer, Ketchikan Gateway
Borough, and City and Borough of Sitka.
Adoption of this resolution will make the Planning and Zoning Commission paperless, resulting in cost
benefits and staff efficiencies. Paper copies of the Planning and Zoning packet will still be provided at
the door for the public at the time of the meeting. The Airport Commission has been successfully
paperless for several years, so this is a logical next step for our commissions and committees.
Your consideration is appreciated.
30
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019-39
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE
TRANSFER OF FUNDS FROM THE GENERAL FUND LIBRARY DEPARTMENT TO THE
GENERAL FUND BUILDINGS DEPARTMENT; AND AUTHORIZING THE ISSUANCE OF A
PURCHASE ORDER IN THE AMOUNT OF $16,795.00 FOR THE REPLACEMENT OF ADA
AUTOMATIC DOOR OPERATORS AT THE LIBRARY.
WHEREAS, the ADA Accessible Door Operators at the Library are currently unusable and staff
has been unable to repair them; and,
WHEREAS, the Building’s Department Repair & Maintenance account does not have sufficient
funds to complete the repairs; and,
WHEREAS, the Library Department has available remaining funds within their existing budget
within their Repair & Maintenance and Postage accounts to contribute to the repairs; and,
WHEREAS, the Building’s Department has received competitive quotes, with Doors & Windows,
Inc. being the lowest responsive responsible bidder at a total installed cost of $16,795.00; and,
WHEREAS, it is the recommendation of the Public Works Department, that completion of these
repairs is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1: That the following budget transfer be made:
General Fund
From:
Library – Repairs & Maintenance $11,000.00
Library – Postage $2,000.00
$13.000.00
To:
Buildings – Repairs & Maintenance $13,000.00
Section 2: That a Purchase Order in the amount of $16,795.00 is authorized to Doors &
Windows, Inc. Payable from Account #001-434-4538 Buildings – Repairs & Maintenance.
Section 3. That this Resolution takes effect immediately upon adoption.
31
Resolution No. 2017-39
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, City Clerk
Approved by Finance: ___________
32
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 12, 2019
SUBJECT: Resolution No. 2019–39 Replacement of Automatic Door Operators at
the Library
____________________________________________________________________________
The Library has two main entrances, one on the north and one on the south sides of the building.
Each of these entrances is equipped with handicap accessible ramps and automatic door
operators. Over the last six months the automatic door operators have struggled to consistently
work at both entrances. Building maintenance staff has been unable to make long term repairs
to the equipment.
While this was not a planned project, Library staff in coordination with the Building Maintenance
Department have located existing funds within the current budget that will allow for the timely
completion of the repairs. The Library is a highly used asset of the City that does see individuals
in need of these door operators. Departmental Staff and the Administration is in support of this
project.
Council’s support is respectfully requested.
33
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019 - 40
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A
BUDGET TRANSFER IN THE GENERAL FUND – POLICE DEPARTMENT FOR THE
PURCHASE OF A FORENSIC INVESTIGATION TOOL.
WHEREAS, the City Council approved Ordinance 3067-2019 accepting and appropriating asset
sharing forfeiture funds totaling $26,605.40; and,
WHEREAS, the funds were appropriated into the Police Small Tools Account and one of the
purchases that is being made with those funds is required to be purchased from the Police
Machinery and Equipment Account based on its cost; and,
WHEREAS, the appropriated funds are required to be used for a law enforcement purpose and
this transfer of funds from one account to another facilitates that purchase.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the following budget amendment be approved:
General Fund
Decrease – Police Small Tools ($17,115)
Increase – Police Machinery & Equipment $17,115
Section 2. That this Resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: ___________
34
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross – Police Chief
DATE: June 10, 2019
SUBJECT: Resolution No. 2019-40 – Resolution authorizing a budget transfer in
the General Fund.
______________________________________________________________________
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 appropriated to the Police Small Tools
account under Ordinance 3067-2019. One of the purchases to be made with those funds is a
Cellebrite system for performing forensic device data extraction and examination, and that PO
was approved in the “Purchase Orders Exceeding $15,000” approvals at the June 5 Council
Meeting.
This resolution corrects my error in requesting those funds be appropriated into the Police Small
Tools Account rather than the Police Machinery and Equipment Account, based on the price of
the purchase.
I am respectfully requesting consideration of the resolution authorizing the funds transfer.
35
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019 - 41
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A
FACILITY MANAGEMENT AGREEMENT WITH THE BOYS & GIRLS CLUB OF THE KENAI
PENINSULA, INC. FOR THE OPERATION AND MANAGEMENT OF THE KENAI RECREATION
CENTER IN THE AMOUNT OF $130,000 PER YEAR.
WHEREAS, the current contract extension for Facility Management Services at the Kenai
Recreation Center with the Boys & Girls Club of the Kenai Peninsula is due to expire June 30,
2019; and,
WHEREAS, the term of this Agreement is for an initial period of three years beginning July 1,
2019, with an option for a two-year renewal based on the mutual agreement of the parties; and,
WHEREAS, the City of Kenai previously solicited competitive proposals from contractors for the
management and operations of the City’s recreation center to provide quality recreational
programs and services for children, adults and seniors; and,
WHEREAS, the Boys & Girls Club of the Kenai Peninsula, Inc. has successfully managed the
Kenai Recreation Center since 2003 and desires to continue providing recreational services to
the community; and,
WHEREAS, the Boys & Girls Club of the Kenai Peninsula was the only responsible bidder; and,
WHEREAS, the current contract was extended through June 30, 2019 to allow administration time
to discuss and implement needed operational changes.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the Kenai City Council approves the Facility Management Agreement with the
Boys & Girls Club of the Kenai Peninsula, Inc.
Section 2. That the compensation for the Facility Management Services shall not exceed
$130,000. Sufficient funds have been budgeted.
Section 3. That this Resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19 day of July, 2019.
BRIAN GABRIEL SR., MAYOR 36
Resolution No. 2019-41
Page 2 of 2
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
37
Recreational Center Agreement Page 1 of 15
AGREEMENT FOR FACILITY MANAGEMENT SERVICES
AT THE KENAI RECREATIONAL CENTER FACILITY
THIS AGREEMENT is made this ____ day of _______________ 2019, by and
between the CITY OF KENAI (Owner), whose address is 210 Fidalgo Avenue, Kenai, AK
99611-7794, and _____________________________________________ (Contractor),
whose address is _______________________________________________________.
RECITALS:
Owner desires to retain the professional services of Contractor to manage the
Kenai Recreational Center located at 227 Caviar Street in the City of Kenai.
Contractor is a professional in this area and specifically in the provision of
recreational services to the public and has the experience, skill, knowledge, and
competence to perform these services.
Owner wants to contract for the provision of these services by Contractor in order
to obtain best financial arrangements for the City and provide affordable and quality
experiences for its customer. Contractor agrees to perform its services under this
Agreement with due diligence and due care and in a good and professional manner.
Owner and Contractor therefore agree as follows:
1. Definitions. For this Agreement, the following definitions apply:
A. “Manager” means the Kenai City Manager or their designee as agent for
and on behalf of Kenai.
B. “Concession” means all sales or rentals of goods or services in the Facility,
the parts of the Facility where those sales or rentals are made, and equipment or facilities
in the Facility used for those sales or rentals.
C. “Contractor” shall mean _______________________________________.
D. “Council” means the Kenai City Council.
E. “Facility” means the Kenai Recreation Center located at 227 Caviar Street
in Kenai, Alaska.
F. “Management” or “management services” means performing all work to
operate and provide the services and reports required by this Agreement and all work
necessary to support the Facility’s provision of service to the public, including but not
limited to, supervision of staff, supervision and control of participants using the Facility
and accessing any programs at the Facility, providing appropriate recreational, education,
and cultural programs for the general public, scheduling use of the Facility, maintenance
38
Recreational Center Agreement Page 2 of 15
of the Facility, engaging in sales marketing of the activities and programs at the Facility,
and the of recreational concessions at the Facility.
G. “Owner” or “City” means the City of Kenai.
2. Term. The term of this Agreement shall begin on ______________ (date),
and end on ______________ (date). This Agreement may be extended for one
additional two-year term upon mutual written consent of Owner and Contractor.
Contractor shall notify Owner in writing no less than 180 days before the end of the
remaining term of this Agreement if Contractor desires to extend the Agreement for any
additional term. Neither party has any obligation to agree to extend the initial term of this
Agreement.
3. Compensation.
A. Owner shall pay Contractor annual fee $______________ per contract year
(July 1 to June 30) for management of the Facility, including the provision of recreational,
educational, cultural, and leisure services and activities at the Facility. Owner will pay the
fee in 12 equal monthly installments, payable within 14 days after billing by Contractor.
Any compensation due for portions of a month for which services are provided by
Contractor will be pro-rated to a daily rate.
B. Subject to Appropriation. Contractor recognizes that compensation for its
management services require the Council to annually appropriate funds for payment of
the management services. The obligation of Owner to provide funding under this
Agreement is subject to the availability of funds lawfully appropriated for that purpose by
the Council. The termination of this Agreement due to fiscal necessity and/or non-
appropriation of funds by Owner shall not constitute a breach or default of Owner. In the
event of a non-appropriation of funds, Owner may terminate this Agreement under
Section #16(B), below, however termination shall not be subject to 60 days’ notice.
Instead, Owner shall give reasonable advance notice of non-appropriation as soon as
practicable but in no case shall notice be less than ten days in advance of the effective
termination date.
C. Termination. If Contractor’s services are terminated for whatever reason,
Contractor’s claim for compensation shall be limited to payments due based on a
proportional number of days it operated the Facility. Contributions in kind are not eligible
for reimbursement unless this contribution is directed toward approved, appraisable
improvement to the Facility. Upon termination, any alteration or renovation to the Facility
approved by Owner in writing, will be reimbursed at fair market value or actual cost as
reported to Owner (whichever is less) unless the parties have previously otherwise
agreed. If necessary, fair market value of such improvements will be determined by a
professional appraiser. The appraiser will be selected jointly by the parties and the
appraisal fee will be split equally.
4. Independent Contractor; No Agency. Contractor’s relationship with
39
Recreational Center Agreement Page 3 of 15
Owner shall be that of an independent contractor with the authority to control and direct
the performance of the details of the management services that are the subject of this
Agreement. Nothing contained in this Agreement shall be construed to create an agency,
partnership, joint venture, or employee-employer relationship between Owner and
Contractor. Contractor is not the agent of Owner and Contractor is not authorized to
make any representation, contract, or commitment on behalf of Owner.
5. Scope of Services—General Obligations of Contractor.
A. Yearly Operation. Facility management services shall be a year-round
function of Contractor to carry out its Annual Operations Plan. Contractor shall perform
the management work and all services on an as needed/scheduled basis as determined
by Contractor (except where specifically identified below).
B. Services. Contractor shall provide recreational, educational, cultural, and
leisure programs and services at the Facility for all age groups. Contractor agrees to
make the Facility available to community user groups and/or organizations in order to
serve the varied interests and needs of the community.
C. Concessions. Contractor will provide, at its own expense, other
recreational, educational, cultural, or leisure services to the general public that are not
inconsistent with this Agreement. Contractor shall have the exclusive right to operate
concessions in the Facility. Contractor is responsible for defining said services and
coordinating all aspects of service offerings, whether required under this Agreement or
offered as an additional concession of Contractor.
D. Fees. Contractor shall charge a fee approved by the City for use of the
Facility and/or for participation in any programs and/or services it provides unless
otherwise specified in this Agreement. Any fees charged by Contractor for any purpose
must not discourage public use of the Facility and should be consistent with fees charged
for similar services at other municipal recreation centers.
E. Public Facility. The programs provided in the Facility must be generally
available to the public. Contractor may not restrict appropriate public participation at the
Facility and may not restrict public access for appropriate use of the Facility.
F. Employees. It is Contractor’s duty to train Contractor’s employees in order
to provide the management services. The management services shall be performed by
qualified, careful, and efficient employees in strict conformity with the best practices and
highest applicable standards. The manner in which these services are performed shall
be determined by Contractor. Contractor shall pay all salaries and expenses of, and pay
all federal social security taxes, federal and state unemployment taxes, and any similar
payroll taxes relating to, Contractor’s employees.
G. Permits, Licenses, and Certificates. Contractor shall obtain and maintain
all necessary licenses and permits; comply with the requirements of all permits; pay all
40
Recreational Center Agreement Page 4 of 15
taxes lawfully imposed on Contractor’s business; and pay any other fee or charge
assessed under any applicable public statute, regulation, or ordinance. Said licensing
includes, but is not limited to, obtaining state and borough business licenses and tax
certificates, and, where applicable to Contractor, paying all taxes and filing all documents
necessary to maintain Contractor’s status as a corporate entity in good standing in the
State of Alaska.
H. Taxes and Assessments. Contractor shall pay all taxes lawfully imposed
on its business, and pay any other fee or charge assessed under any applicable public
statute, regulation, or ordinance. Contractor shall collect and pay any and all gross
receipts, compensation, transaction, sales, use, payroll, or other taxes and assessments
of whatever nature and kind levied or assessed as a consequence of the work performed
or on the compensation paid to Contractor or to Contractor’s employees or contractors
under or arising out of this Agreement.
6. Scope of Services—Specific Performance Requirements.
A. Specific Activities Required. Unless Owner (as approved by the Council)
requests termination of a service, Contractor shall provide the following services at the
Facility on a regularly-scheduled basis:
i. teen center;
ii. toddler time;
iii. home school gym time;
iv. senior exercise;
v. wallyball and racquetball court use;
vi. open gym time;
vii. volleyball time;
viii. weight room and sauna;
ix. men’s and women’s adult basketball leagues;
x. practice time for Kenai Middle School boys’ and girls’ basketball (free
of charge);
xi. practice time for Kenai Central High School boys’ and girls’
basketball “C” teams (free of charge); and,
xii. after-prom and after-graduation activities for Kenai Central High
School (free of charge and with no demand for deposit).
Contractor will provide Owner with a description of how Contractor intends to provide
these services in its Annual Operations Plan.
B. Operating Hours; Calendar. Contractor will maintain daily, monthly and
annual schedules of services and activities held at the Facility and shall provide public
access to this schedule. Contractor shall operate the Facility according to this published
schedule, which schedule must include providing services on Sundays.
C. City Wellness Program. Contractor agrees to support the City wellness
41
Recreational Center Agreement Page 5 of 15
program provided as a general benefit to City employees, their spouses, and immediate
family members. City will provide Contractor with a list of City employees and their
spouses participating in the City’s wellness program. Persons whose name appears on
this list may use the Center and the fitness programs, equipment, and other facilities at
no charge. Contractor may require proof of identification. City may periodically update
this list.
D. Fee Schedule. Contractor shall develop and publish fee schedules for all
services, events, and activities conducted at the Facility and for all charges made to the
public for use of the Facility and its equipment. The fee schedule must be approved in
advance by the City Manager and may be subject to change by the Council. The Fee
Schedule attached as Exhibit A to this Agreement is approved.
E. Teen Center Membership. Contractor agrees to provide a discounted cost
for membership to the Teen Center located in the Facility of $25 per year, per child
provided that Owner provides Contractor with a $10,000 annual grant for this purpose.
This grant is in addition to the compensation identified in Section 3, above.
F. Revenues. Contractor shall collect all revenues generated at the Facility
and shall use generally-accepted accounting principles and appropriate internal controls
for its accounting activities. Contractor agrees that Owner shall not be liable or
responsible for funding any deficits or delinquencies owed to Contractor other than the
payments required under Section #3 of this Agreement.
Contractor will collect and retain all fees and charges for programs, services and
rentals. The compensation for services under this Agreement (Section #3) and grants
received are not considered fees and charges. Contractor will retain fees and charges
collected up to $100,000 per calendar year. Fees and charges collected by Contractor
for use of the Facility and for concessions and totaling over $100,000, and that Contractor
does not spend on providing concessions or programs at or for the Facility, will be divided
equally (50/50) between the Contractor and Owner.
G. Repairs. Contractor bears the responsibility for the cost of repairs of the
structure or its internal components and equipment due to any damage or breakage
caused by the negligence or intentional act of the Contractor or of a client during operating
hours of the Facility. Contractor is responsible for the maintenance and repair of the
Center equipment, i.e., weight room equipment, pool tables, vending machine.
H. Janitorial; Appearance. Contractor shall keep the Facility in a clean and
sanitary condition. Contractor shall pay for and provide all janitorial services and supplies
required to keep the Facility clean and presentable. Contractor shall not permit any
garbage or other refuse to accumulate in the Facility or on the grounds surrounding the
Facility.
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Recreational Center Agreement Page 6 of 15
I. Snow Removal. Contractor shall be responsible for snow removal of all
sidewalks around the building or leading up to the Facility. Contractor must keep all
ingress and egress points for the Facility (main entrance, fire exits, etcetera) clear of ice
and snow so they may be used safely at all times.
J. Security. Contractor will take all reasonable precautions to prevent
unauthorized entry into the Facility, including the placing of signs or other devices
intended to deter or restrict such entry. Contractor shall develop and follow policies and
procedures relating to issuing keys, handling cash and deposits, opening and closing,
and dealing with difficult patrons.
K. City Use. The City may use the Facility for City sponsored events at no
cost to the City. All City events shall be coordinated with Contractor so as not interfere
with prior scheduled services.
7. Contractor’s Reporting and Planning Requirements.
A. Annual Operations Plan. No later than January 1 of each year, Contractor
shall provide Owner with an Annual Operations Plan. Contractor shall work with the
Manager to assure the Annual Operations Plan meets the requirements and expectations
of Owner. The plan should contain, at a minimum, the following:
i. a safety and security plan;
ii. a facility use plan for the Facility that includes days of operation and
hours open, and booking and scheduling procedures;
iii. the proposed fee schedule;
iv. a list of rules governing the public’s use of the Facility;
v. a program schedule;
vi. a staffing plan;
vii. opportunities for new services or activities; and
viii. a prioritized list of recommended Capital Improvement Expenditures
with justification.
B. Facility Annual Operating Budget. No later than January 1 of each year, the
Contractor will submit to Owner its Annual Operating Budget. The budget should include
all projected and the prior year’s actual operating and capital costs for the Facility,
including a projected income and expense statement and a projected year-end balance
sheet. The budget must also include detailed projections of revenues by category and
source; operating expenses by category; and administrative and general expenses to
Contractor in managing the Facility.
C. Semi-Annual and Annual Reports. Contractor will submit to Owner a semi-
annual report and an annual report identifying usage of the Facility by program (see
Section #6 – Scope of Services, Paragraph A). These reports shall include categorization
of usage by age group of user; a categorization of usage of the Facility by component of
the Facility (for example, teen center, gym, toddler time, leagues); an updated inventory
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Recreational Center Agreement Page 7 of 15
of Owner’s equipment and furnishings purchased; and, a detailed description, including
costs, for equipment needing to be replaced. Contractor must submit the annual report
on or before January 1 and July 1 of each year of this Agreement beginning
_______________ (date).
8. Owner’s Obligations. Owner shall perform the following functions or
provide the following materials related to the Facility:
A. Operations and Maintenance Costs. Owner is responsible for maintenance
and repair of the Facility required by normal wear and tear. Owner will perform routine
maintenance on all incorporated systems in the Facility including fire suppression and
alarm systems, electrical systems, mechanical systems, plumbing systems, and HVAC.
Contractor must notify the City’s Parks and Recreation Director, Attention: Building
Maintenance, for “Requests for Service of Repairs” on forms, or in a manner as requested
by Owner. The City’s Work Order Request Form, attached as Exhibit B is the form that
Contractor should use to request maintenance. This duty of Owner does not extend to
maintenance on a system required due to Contractor’s failure to properly supervise and
manage the Facility during business hours (for example, vandalism in the Facility during
schedule working hours).
B. Utilities. Owner shall pay the following utility costs for the Facility: water,
sewer, electrical, natural gas, telephone service (excluding long-distance, conference
call, and other extraordinary phone charges).
C. Snow Removal. Owner is responsible for snow removal from the parking
lot of the Facility.
D. Grounds Keeping. Owner shall maintain the grounds on the exterior of the
Facility, subject to Contractor’s obligation to keep the grounds of the Facility free of
garbage and refuse.
E. Equipment Replacement. Owner is responsible for the replacement of
Owner-owned equipment as necessary due to normal wear and tear of the equipment.
F. Insurance. Owner shall provide Broad-Form Property Damage Insurance
for the Facility.
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Recreational Center Agreement Page 8 of 15
9. Ownership of Equipment and Furnishings.
A. Owner recognizes that Contractor will from time-to-time purchase
equipment and furnishings to accomplish the work and provide the management services
required and the concessions allowed under this Agreement. Equipment and furnishings
purchased with Contractor funds shall be the sole property of Contractor. Equipment and
furnishings donated to Contractor shall be the sole property of Contractor.
B. With the exception of pass-through grants administered by Owner,
equipment and furnishings purchased with Owner funds or with any funds provided by
grants from Owner shall be the sole property of Owner. Contractor will mark and inventory
this Owner property and provide Owner with a copy of the inventory with its semi-annual
and annual reports.
C. Prior to occupying the Facility, Contractor and Owner will conduct a
walkthrough to investigate conditions of the Facility and equipment inside the Facility.
10. Alterations and Renovations. Contractor may not make any alterations
or renovations to the Facility without the prior written consent of Owner. Contractor shall
provide Owner with an actual cost report within ten days of completion of any alteration
or renovation project.
11. Signs. Contractor may not place or erect poles, lights or devices on the
exterior of the Facility or the curtilage or on adjacent property without the prior written
consent of Owner.
12. Fundraising. Fundraising using the name of, or on behalf of, the City of
Kenai or the Kenai Recreation Center must be approved in advance in writing by the City
of Kenai.
13. Insurance.
A. Contractor shall, at Contractor’s own expense, secure and maintain the
following insurance:
i. comprehensive general liability insurance, including premises, all
operations, property damage, personal injury and death, broad-form
contractual coverage with a per occurrence limit of not less than
$1,000,000 combined single limit;
ii. worker's compensation insurance with coverage for all employees
engaged in work under this Agreement as required by AS 23.30.045
(Contractor is responsible for worker's compensation insurance for
any subcontractor who directly or indirectly provides services under
the Agreement); and,
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Recreational Center Agreement Page 9 of 15
iii. comprehensive automobile liability insurance covering all owned,
hired, and non-owned vehicles with coverage limits not less than
$1,000,000 combined single limit per occurrence.
Where specific limits are stated, the limits are the minimum acceptable limits. If
Contractor’s insurance policy contains higher limits, Owner is entitled to coverage to the
extent of the higher limits.
B. All insurance required by this Section #13 shall meet the following additional
requirements:
i. for comprehensive general liability and automobile liability insurance,
name the City of Kenai as an additional insured;
ii. for worker’s compensation insurance, general liability, and
automobile liability insurance, where possible, include a waiver of
subrogation so that the insurer waives all rights of subrogation
against the City of Kenai for payments made under the policy;
iii. provide Owner with at least 30 days’ notice before any termination,
cancellation, or material change in insurance coverage is effective;
and,
iv. be issued by a company/corporation currently rated “A-” or better by
A.M. Best.
C. Contractor shall submit to Owner proof of insurance coverage in the form of
insurance policies, certificates, endorsements, or a combination thereof, and signed by a
person authorized by the insurer to bind coverage on its behalf. The effective date of the
insurance will be no later than the first day of the term of this Agreement.
D. The indemnification and insurance coverage requirements stated in this
Section #13 and in Section #14 below do not relieve Contractor of any other obligation
under this Agreement.
E. Owner may increase the amount or revise the type of required insurance
upon written demand without requiring amendments to this Agreement. Owner will base
any increase or revision upon reasonable and justifiable grounds. Within two weeks of
the written demand, Contractor shall submit to Owner evidence of insurance coverage
that meets the requirements of Owner.
14. Indemnity, Defend, and Hold Harmless Agreement. Contractor shall
indemnify, defend, and hold harmless Owner and its agents, employees, and/or insurers
from claim, loss, damage, liability, including injury and death or expense in any way
related to any act or omission of Contractor or Contractor’s employees, agents, or invitees
arising out of Contractor’s performance of services under this Agreement, except to the
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Recreational Center Agreement Page 10 of 15
extent any negligence of Owner or its employees or agents is a proximate cause of any
injury or damage. If a third party asserts a claim against Contractor and Owner,
Contractor and Owner shall seek in good faith to achieve Agreement to an apportionment
of fault as between them without an independent of litigation. This provision shall survive
expiration or termination of this Agreement.
15. Notice of Accident, Injury, or Claims.
A. Each party shall give to the other prompt and timely written notice of any
claim made or suit instituted within its knowledge that in any way, directly or indirectly,
contingently or otherwise, affects or might affect the other party.
B. Contractor shall report all incidents of accident or injury promptly in writing
to the City Manager for Kenai.
16. Termination.
A. For Cause. If either party fails to perform any of the terms, conditions,
covenants, or obligations under this Agreement, the other party may terminate this
Agreement. As a condition of the exercise of the right of termination, the terminating party
must notify the other party in writing of its intent to terminate, stating with reasonable
specificity the reasons for termination for cause. Upon receiving this written notice, the
other party will have 30 calendar days to cure the default(s). If the other party fails to cure
all defaults to the satisfaction of the other party within thirty 30 days, the party may declare
the Agreement terminated.
B. Termination for Convenience of the City. Owner may terminate this
Agreement at any time by giving written notice to Contractor of its intent to terminate.
Owner shall provide contractor with at least 60 days’ advance notice of its election to
terminate for its convenience. All finished or unfinished documents, surveys, reports,
and/or other material prepared by Contractor under this Agreement are the property of
Owner and Contractor hereby agrees to peaceably return all such items to Owner by or
upon the effective date of termination and as may be further instructed by Owner.
Contractor shall be entitled to receive compensation for services rendered up to and
through the date of termination.
17. Duties Upon Termination.
A. Upon termination of this Agreement under Section #16(A), Owner may take
immediate possession of the Facility.
B. Upon termination of this Agreement under Section #16(B), including
termination due to non-appropriation of funds by the Council, there shall be a transition
period of not greater than 90 days with regard to the removal of Contractor’s property
from the Facility. If Contractor fails to vacate upon expiration of the transition period, the
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Recreational Center Agreement Page 11 of 15
City may remove and store the property at Contractor’s expense or store the equipment
at the Facility and charge Contractor a reasonable storage fee.
C. Contractor shall deliver to the Manager all documents, records, work
products, materials and equipment of Owner and requested by the Manager.
18. Records and Right to Audit.
A. Contractor agrees to keep reliable accounting records and to prepare
annual financial statements in accordance with generally accepted accounting principles.
B. Contractor shall make available to Owner for audit, examination, and
copying, all of Contractor’s records with respect to all matters covered by this Agreement
continuing for a period ending six years after the date of expiration or termination. These
records include, but are not limited to financial statements, ledgers, invoices, inventories,
reports, employment Agreements and other contracts related to Contractor’s provision of
services under this Agreement. Contractor shall make available for examination all such
records, and in such form as the City may reasonably require, at any time during Owner’s
normal business hours. Contractor shall make such records available to Owner upon ten
business days’ notice, except in the case of emergency where Contractor shall make
such records available immediately.
C. In performing audits and investigations, Owner shall not unduly interfere
with the ability of Contractor to perform its duties under this Agreement.
19. Right of Entry. Owner, its officers, employees, agents, and
representatives may enter the Facility during operating hours to make inspection of the
Facility and/or to perform maintenance activities. Owner will make reasonable attempts
to notify Contractor if it requires emergency entry after operating hours.
20. No Discrimination. Contractor shall not discriminate on the grounds of
race, color, religion, national origin, ancestry, age, or sex against any patron, employee,
applicant for employment, or other person or group of persons in any manner prohibited
by federal or State law. Contractor recognizes the right of Owner to take any action
necessary to enforce this requirement.
21. Administration of this Agreement.
A. The Parks and Recreation Director is the representative of the City in
administering this Agreement.
B. Contractor is responsible for the direct supervision of Contractor’s
personnel through Contractor’s designated representative, and such representative shall
in turn be available at all reasonable times to confer with the Owner’s representative with
respect to the services. The designated representative for Contractor is
____________________________. In the event that Contractor’s representative is
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Recreational Center Agreement Page 12 of 15
unable to continue to serve as Contractor’s representative, Contractor shall appoint a
successor subject to a written approval of the Owner.
22. Notices. Any notice or communication required or permitted under this
Agreement shall be in writing, addressed to the appropriate party at the address given
below for the type of delivery, and given personally, by certified mail (return receipt
requested), or by electronic mail. Notice by facsimile will NOT be accepted. All notices
shall be effective upon the date of receipt, except if the notice or communication is
received after 5:00 p.m. on a business day, or on a day that is not a business day of the
receiving party, and then the notice or communication is deemed received at 8:00 a.m.
on the next business day.
Owner: City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
Attn: City Manager
Email: postrander@kenai.city
Contractor:
ATTN:
(physical address for hand delivery)
(physical address for hand delivery)
Email:
Either party may change its address for notice by giving notice as provided herein to the
other party.
23. Miscellaneous Provisions.
A. No Lease. This Agreement does not lease, rent, or otherwise convey any
land or interest in real property or in the Facility or personal property of Owner’s and in
the Facility to Contractor.
B. Compliance with Laws. In performing its obligations, Contractor will comply
with all laws, ordinances, and regulations of duly-constituted public authorities now or
later enacted.
C. Assignment and Subcontract. Contractor shall not assign, subcontract,
and/or transfer any right, obligation, or part of the services or work to be performed under
this Agreement without prior written approval of the Owner. Any such assignment or
transfer or subcontracting of services without the consent of Owner shall constitute a
default of Contractor.
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Recreational Center Agreement Page 13 of 15
D. Assumption of Risk. Contractor shall provide all proper safeguards and
assume all risks incurred in performing the services.
E. No Waiver. If Owner does not insist in any one or more instances on the
strict performance by Contractor of any requirement under this Agreement, it is not a
waiver or relinquishment for the future, but the requirement will continue in full force. An
Owner waiver of any provision or requirement in this Agreement cannot be enforced nor
relied on unless the waiver is in writing and signed on behalf of Owner.
F. Integration and Modification. This Agreement contains the entire
Agreement of the parties. All negotiations, statements, representations, warranties, and
assurances, whether oral or written, which are in any way related to the subject matter of
this Agreement or the performance of either party, are merged and integrated into this
Agreement. This Agreement may not be modified except in writing signed by both parties.
G. Applicable Law/Venue. In any dispute between the parties, the laws of the
State of Alaska shall govern. If any such dispute results in a lawsuit, the parties will bring
the lawsuit before the courts of the State of Alaska in the Third Judicial District at Kenai.
H. Attorney’s Fees and Costs. In the event that either party is in default in the
performance of any of its obligations under this Agreement and any legal proceeding
including arbitration is brought, the defaulting party shall pay to the other all actual costs
and all expenses incurred in the action, including actual, reasonable attorney's fees.
I. Remedies. No right or remedy here conferred upon or reserved to either
party is intended to be exclusive of any other right or remedy, and each and every right
and remedy shall be cumulative and in addition to any other right or remedy given, or now
or later existing at law or in equity or by statute.
J. Rules of Interpretation. Headings of Sections are solely for convenience of
reference and shall not affect meaning, construction, or effect of this Agreement. Unless
the context otherwise indicates, words expressed in the singular shall include the plural
and vice versa. Unless the context otherwise indicates, the use of the neuter, masculine,
or feminine gender shall include the others as well.
K. Computation of Time. If any due date for a report or notice required under
this Agreement falls on a weekend or on a City of Kenai holiday, the report or notice will
be timely if filed with Owner on the next regular business day.
L. Validity of Parts. If any term, condition, or provision of this Agreement is
declared void or unenforceable, or limited in its application or effect, such event shall not
affect any other provisions hereof and all other provisions shall remain fully enforceable.
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Recreational Center Agreement Page 14 of 15
M. Authority. Contractor represents that Contractor has read this Agreement
and Contractor agrees to be bound by its terms and conditions and that the person signing
this Agreement is duly authorized to bind Contractor.
N. Effective Date. This Agreement is effective upon the latter signature of all
parties and approval by the Kenai City Council.
The parties have caused this Agreement to be executed in their respective names or by
their duly authorized representatives.
CITY OF KENAI CONTRACTOR
By: By:
Paul Ostrander Date ______________________ Date
Its: City Manager Its: ___________________
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
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this ____ day of ____________,
2019, by _____________________________, __________________________ (Title) of
________________________________________________ an ___________________
corporation, on behalf of the corporation.
NOTARY PUBLIC for State of Alaska
My Commission Expires:
51
Recreational Center Agreement Page 15 of 15
ATTEST:
__________________________
City Clerk
SEAL:
APPROVED AS TO FORM:
__________________________
Scott Bloom, City Attorney
52
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Robert J. Frates, Parks & Recreation Director
DATE: June 11, 2019
SUBJECT: Resolution No. 2019 – 41 – Facility Management Agreement for the
Kenai Recreation Center
____________________________________________________________________________
The purpose of this memorandum is to recommend to Council the approval of a Facility
Management Agreement with the Boys & Girls Club of the Kenai Peninsula, Inc. for the operation
and management of the Kenai Recreation Center.
Competitive bid proposals were previously solicited from contractors for management services
and the Boys & Girls Club of the Kenai Peninsula was the only responsible bidder. The current
contract extension expires June 30, 2019.
The Boys & Girls Club of the Kenai Peninsula has successfully managed the Kenai Recreation
Center since 2003 and have been responsive to meeting the City’s needs and the recreation
needs of the community.
Thank you for your consideration.
53
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019-42
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN
AGREEMENT FOR PROVIDING AND SERVICING PORTABLE RESTROOMS AND
DUMPSTERS ON THE NORTH AND SOUTH BEACHES, INCLUDING PORTABLE
RESTROOMS AT THE CITY DOCK, DURING THE 2019 PERSONAL USE FISHERY.
WHEREAS, the City issued a formal Invitation to Bid on May 30, 2019 with the following Bids
Received on June 12, 2019,
Bidder Schedule A Schedule B Schedule C Schedule D
Peninsula Pumping Inc. $30,185.90 $19,675.50 n/a $49,094.49
; and,
WHEREAS, Peninsula Pumping, Inc. was found to be the only responsive bidder; and,
WHEREAS, the recommendation from City Administration is to award an Agreement to Peninsula
Pumping, Inc. for $84,691.90; and,
WHEREAS, services include mobilization and demobilization, daily servicing and provisions for
additional servicing on the North and South Kenai beaches and City Dock, as needed; and,
WHEREAS, appropriated funds were not sufficient to award Schedules A, B, & D at the quantities
bid so actual award will be for less making sufficient funds available.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
Section 1. That the Agreement for the project entitled “Dipnet Dumpsters and Portable Toilets
2019” (Schedule A, B, D) be awarded to Peninsula Pumping, Inc. for the total approximate cost
of $84,691.90.
Section 2. That this resolution take effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
54
Resolution No. 2019 - 42
Page 2 of 2
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance: ___________
55
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 12, 2019
SUBJECT: Resolutions No. 2019–42 & No. 2019-43 Dipnet Dumpsters and Portable
Toilets 2019
____________________________________________________________________________
The purpose of this memorandum is to recommend awarding an Agreement to Peninsula
Pumping, Inc., and to Alaska Waste – Kenai Division LLC, for portable restrooms and dumpster
service during the 2019 Personal Use Fishery.
The City advertised for bids through the Anchorage Daily News, Peninsula Clarion and the City
of Kenai Website. The following bids were opened on June 12, 2019:
BIDDERS
Schedule A Schedule B Schedule C Schedule D
Peninsula Pumping, Inc. $30,185.90 $19,675.50 n/a $49,094.49
Alaska Waste – Kenai
Division LLC n/a n/a $3,228.00 n/a
The scope of work (Schedule A, B and D – Resolution No. 2019-42) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the dumpsters and
portable restrooms on the North and South Kenai Beaches, including portable restrooms at the
Kenai City Dock. Appropriated funds are not sufficient to award Schedules A, B, & D at bid
quantities requiring adjustment to the quantities for the total award of $84,691.90.
The scope of work (Schedule C – Resolution No. 2019-43) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the road accessible
dumpsters at the end of South Spruce Street, Kenai Little League Parking lot and at the Kenai
City Dock.
Council’s approval is respectfully requested. 56
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019-43
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN
AGREEMENT FOR PROVIDING AND SERVICING ROAD ACCESSIBLE DUMPSTERS AT THE
END OF SOUTH SPRUCE STREET, KENAI LITTLE LEAGUE PARKING LOT AND KENAI CITY
DOCK, DURING THE 2019 PERSONAL USE FISHERY.
WHEREAS, the City issued a formal Invitation to Bid on May 30, 2019 with the following Bids
Received on June 12, 2019,
Bidder Schedule A Schedule B Schedule C Schedule D
Alaska Waste – Kenai
Division LLC n/a n/a $3,228.00 n/a
; and,
WHEREAS, Alaska Waste – Kenai Division LLC was found to be the only responsive bidder; and,
WHEREAS, the recommendation from City Administration is to award an Agreement to Alaska
Waste – Kenai Division LLC for $3,228.00; and,
WHEREAS, services include mobilization and demobilization, daily servicing and provisions for
additional servicing of road accessible dumpsters located at the end of South Spruce Street,
Kenai Little League Parking lot and the Kenai City Dock; and,
WHEREAS, sufficient monies are appropriated.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
Section 1. That the Agreement for the project entitled “Dipnet Dumpsters and Portable Toilets
2019” (Schedule C) be awarded to Alaska Waste – Kenai Division LLC for the total approximate
cost of $3,228.00.
Section 2. That this resolution take effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
57
Resolution No. 2019 - 43
Page 2 of 2
ATTEST:
______________________________________
Jamie Heinz, City Clerk
Approved by Finance: ___________
58
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 12, 2019
SUBJECT: Resolutions No. 2019–42 & No. 2019-43 Dipnet Dumpsters and Portable
Toilets 2019
____________________________________________________________________________
The purpose of this memorandum is to recommend awarding an Agreement to Peninsula
Pumping, Inc., and to Alaska Waste – Kenai Division LLC, for portable restrooms and dumpster
service during the 2019 Personal Use Fishery.
The City advertised for bids through the Anchorage Daily News, Peninsula Clarion and the City
of Kenai Website. The following bids were opened on June 12, 2019:
BIDDERS
Schedule A Schedule B Schedule C Schedule D
Peninsula Pumping, Inc. $30,185.90 $19,675.50 n/a $49,094.49
Alaska Waste – Kenai
Division LLC n/a n/a $3,228.00 n/a
The scope of work (Schedule A, B and D – Resolution No. 2019-42) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the dumpsters and
portable restrooms on the North and South Kenai Beaches, including portable restrooms at the
Kenai City Dock. Appropriated funds are not sufficient to award Schedules A, B, & D at bid
quantities requiring adjustment to the quantities for the total award of $84,691.90.
The scope of work (Schedule C – Resolution No. 2019-43) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the road accessible
dumpsters at the end of South Spruce Street, Kenai Little League Parking lot and at the Kenai
City Dock.
Council’s approval is respectfully requested. 59
_____________________________________________________________________________________
Sponsored by: Vice Mayor Navarre
CITY OF KENAI
RESOLUTION NO. 2019-44
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING KENAI
PENINSULA BOROUGH ORDINANCE 2019-11, REPEALING KPB 5.18.430(F) WHICH
REQUIRES VOTER APPROVAL TO INCREASE THE SALES TAX CAP.
WHEREAS, the Kenai Peninsula Borough is considering Ordinance 2019-11at its meeting of July
2, 2019; and,
WHEREAS, the borough sales tax cap of $500 has been in effect since 1964; and,
WHEREAS, applying the Alaska Department of Labor Consumer Price Index, which measures
inflation in Anchorage, the value of $500 in 1964 is equivalent to $3,222 in 2018; and,
WHEREAS, in 2005, the voters approved an initiative which, among other things, imposed a
requirement that any increase in the maximum sales tax (sales tax cap) may not take effect until
ratified by the voters at a regular borough election; and,
WHEREAS, pursuant to Alaska Statute 29.45.670, any new borough sales and use tax or an
increase in the borough general sales tax percentage approved by ordinance does not take effect
until ratified by a majority of the voters at a borough election; and,
WHEREAS, the inability of the Assembly to increase the sales tax cap without voter approval
limits its ability to generate needed additional revenues without increasing the property tax mill
rate; and,
WHEREAS, increases in the property tax mill rate place the burden of additional taxes entirely on
borough property owners, including residents of the City of Kenai, creating the potential for an
inequitable tax structure; and,
WHEREAS, an equitable tax system requires tax obligations fall evenly on a population; and,
WHEREAS, restricting the authority of the Assembly to modify the sales tax cap further limits its
ability to create an equitable tax system.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the Council supports Kenai Peninsula Borough Ordinance 2019-11,
Repealing KPB 5.18.430(F) Which Requires Voter Approval to Increase the Sales Tax Cap.
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 takes effect immediately upon passage. 60
Resolution No. 2019-44
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
61
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Tim Navarre, Vice Mayor
DATE: June 13, 2019
SUBJECT: Resolution No. 2019-44 – Supporting Kenai Peninsula Borough
Ordinance 2019-11, Repealing the Requirement for Voter Approval to
Increase the Sales Tax Cap
____________________________________________________________________________
The purpose of this memo is to provide the additional information in support of Resolution No.
2019-11, supporting Kenai Peninsula Borough Ordinance 2019-11.
The borough sales tax cap of $500 has been in effect since 1964, and applying the Alaska
Department of Labor Consumer Price Index, which measures inflation in Anchorage, the value of
$500 in 1964 is equivalent to $3,222 in 2018. The Borough estimates the City of Kenai would
receive an additional $621,000 annually if the sales tax cap was increased from $500 to $1,000
per transaction with no other code changes.
In 2005, the voters approved an initiative which, among other things, imposed a requirement that
any increase in the maximum sales tax (sales tax cap) may not take effect until ratified by the
voters at a regular borough election. Additionally, pursuant to Alaska Statute 29.45.670, any new
borough sales and use tax or an increase in the borough general sales tax percentage approved
by ordinance does not take effect until ratified by a majority of the voters at a borough election.
The inability of the Assembly to increase the sales tax cap without voter approval limits its ability
to generate needed additional revenues without increasing the property tax mill rate. This places
the burden of additional taxes entirely on borough property owners, including residents of the City
of Kenai, and makes it difficult to create an equitable tax system where tax obligations fall evenly
on the population.
Your consideration is appreciated.
62
KENAI CITY COUNCIL – REGULAR MEETING
MAY 15, 2019 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR BRIAN GABRIEL, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on May 1 5, 2019, in City Hall Council
Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Brian Gabriel, Mayor Robert Molloy
Henry Knackstedt Tim Navarre
Jim Glendening (absent) 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. 3063-2019
• Amendment Memo – Healthcare
• Amendment Memo – Kenai Watershed Forum
• Kenai Watershed Forum Public Comment
Add to item D.6. Resolution No. 2019-30
• Amendment Memo
• Public Comment
Add to item D.9. Resolution No. 2019-33
• Amendment Memo
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MOTION:
Council Member Molloy MOVED to approve the agenda with the requested revisions to the packet
and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
MOTION:
Council Member Knackstedt MOVED to approve the consent agenda and Vice Mayor Navarre
SECONDED the motion. UNANIMOUS CONSENT and requested.
Mayor Gabriel 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
Marion Nelson extended an invitation to an upcoming Kenai Fine Arts Show - Historic Buildings
of Kenai.
David Chesick thanked the City for putting the launch ramps in early this year. He also spoke in
favor of finding a way to get at least one crane open in an affordable way this year to give the
public an option for on and offloading fish and other materials.
Sherry Innes spoke in favor of Ordinance No. 3068-2019 citing death numbers in the nation due
to marijuana use.
D. PUBLIC HEARINGS
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)
MOTION:
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Council Member Knackstedt MOVED to enact Ordinance No. 3063-2019 and Council Member
Molloy SECONDED the motion.
Mayor Gabriel opened for public hearing.
Branden Bornemann, Executive Director of Kenai Watershed Forum, spoke in favor of inclusion
of the $5,000 grant typically provided by the City. He noted the Forum had been involved with
issues facing the river since 1997 including establishment of the water quality monitoring program
which provided information beneficial for reacting to impairments before they became disasters;
also helped ensure the river and habitat could support the fish. He added the City of Kenai was
a major player in the Memorandum of Understanding (MOU) entered into in 2015 noting the
management agencies which identify the River as integral to their existence were a part of the
MOU.
There being no one else wishing to be heard, the public hearing was closed.
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend the document entitled “City of Kenai Fiscal Year
2020 Annual Budget,” which is incorporated into Ordinance 3063-2019 by reference in section 1
by increasing Other Animal Shelter Fees by $42,000 to $43,000 within the General Fund, increase
the Police Transportation expenditure budget by $26,000 to $52,650 within the General Fund,
increase the Animal Control Operating Supplies expenditure budget by $1,500 to $13,090 within
the General Fund, increase the Animal Control Professional Services expenditure budget by
$3,500 to $36,500 within the general fund, decrease the Water Department’s Professional
Services expenditure budget by $87,500 to $10,000 and increase the Transfer to Other Funds by
$87,500 to $253,600 within the Water and Sewer Fund, decrease the Water Department’s
Professional Services expenditure budget by $87,500 to $26,600 and increase the Transfer to
Other Funds by $87,500 to $139,200 within the Water and Sewer fund, decrease the Sewer
Department’s Professional Services expenditure budget by $87,500 to $10,000 and increase the
Transfer to Other Funds by $87,500 to $139,200 within the Water and Sewer Fund, decrease the
Wastewater Treatment Plant Department’s Professional Services expenditure budget by
$180,000 to $56,700 and increase the Transfer to Other Funds by $180,000 to $944,700 within
the Water and Sewer Fund, decrease the Participant Premium revenue amount by $14, 796 to
$282,312 within the Employee Health Care Internal Service Fund, and decrease the Insurance
expenditure account by 4134,825 to $2,549,101 within the Employee Health Care Internal Service
Fund. Vice Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
MOTION TO AMEND :
Council Member Knackstedt MOVED to amend Ordinance 3063-2019 by amending the General
Fund appropriation amount in Section 2 to be $16,551,301, amending the Water and Sewer
Improvements Capital Project Fund appropriation amount in Section 2 to be $250,000, amend
the Wastewater Treatment Plant Improvements Capital Project Fund appropriation amount to be
$810,000, insert the words, “Total Capital Project Funds,” after the Capital Project Fund Section,
and amend $1,132,800 to be $1,487,800, amend the Employee Health Care Fund appropriation
amount in Section 2 to be $2,598,511 and the Total Internal Service Funds amount to be
$2,788,511, amend the Total All Funds appropriation amount in Section 2 to be #30,666,351,
amend the Class Title of the Human Resource Director* to delete the underline in Section k, and
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amend the range of the Janitor from a Range 2.4 to a Range 2.3 in Section 5. Vice Mayor Navarre
SECONDED the motion and requested UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
MOTION TO AMEND:
Council Member Molloy MOVED to amend the budget document and the ordinance by increasing
Legislative - Grants to Other Agencies and the General Fund by $5,000. Council Member
Knackstedt SECONDED the motion.
It was noted that the City benefitted from the partnership with the Kenai Watershed Forum.
Clarification was provided that in-kind services could be provided and the City was willing to do
so. It was suggested that Administration negotiate an MOU for the future.
UNANIMOUS CONSENT was requested.
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
Clarification was provided that a supplemental funding request would be forthcoming for the bike
path project. It was noted that funds had been identified administratively for iPads for the Planning
and Zoning Commission, and administration was thanked for the effort to create the improved
budget document.
VOTE ON THE MAIN MOTION AS AMENDED:
YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Peterkin
NAY:
**Student Representative Summers: YEA
MOTION PASSED UNANIMOUSLY.
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)
MOTION:
Council Member Molloy MOVED to enact Ordinance No. 3064-2019 and Council Member
Knackstedt SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE:
YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Peterkin
NAY:
**Student Representative Summers: YEA
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MOTION PASSED UNANIMOUSLY.
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)
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 3065-2019 and Vice Mayor Navarre
SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE:
YEA: Knackstedt, Gabriel, Pettey, Molloy, Peterkin, Navarre
NAY:
**Student Representative Summers: YEA
MOTION PASSED UNANIMOUSLY.
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)
MOTION:
Vice Mayor Navarre MOVED to adopt Resolution No. 2019-28 and requested UNANIMOUS
CONSENT. Council Member Pettey SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
Clarification was provided that the state required an appraisal on the property to determine fair
market value. It was noted the reversionary clause stating the property had to be used for public
purpose was included in the document.
VOTE: There being no objection, SO ORDERED.
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)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-29 and requested
UNANIMOUS CONSENT. Council Member Peterkin SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
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VOTE: There being no objection, SO ORDERED.
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)
MOTION:
Vice Mayor Navarre MOVED to adopt Resolution No. 2019-30 and requested UNANIMOUS
CONSENT. Council Member Knackstedt SECONDED the motion.
Mayor Gabriel opened for public hearing.
Duane Bannock, on behalf of Uptown Motel, spoke against the resolution noting the taxing
structure per seat, per bed, per night, essentially made the sales tax, a “bed tax.” He added that
he was opposed even if the revenue were to be put toward tourism as it doubled current tax rate
and because tourism customers also eat at local restaurants and rent cars providing additional
tax revenue.
There being no else one wishing to be heard, the public hearing was closed.
Clarification was provided that the City would gain approximately $150,000 and where that money
was to be allocated would be a Council decision.
It was suggested that the cities and the borough should meet jointly and discuss ideas, that a
combination of taxes needed to be considered as there were infrastructure needs that couldn’t be
ignored long term.
MOTION TO POSTPONE:
Vice Mayor Navarre MOVED to postpone with a request to the borough and cities to sit down and
discuss parameters.
The motion died for lack of a second.
It was noted that several taxes were targeted to an industry including fish, gas, and oil and, when
travelling, a bed tax, as resources were utilized by visitors to area.
It was suggested that RV Parks and campsites be included as well.
MOTION TO AMEND:
Council Member Molloy MOVED to amend the title to read, a Resolution of the Council of the City
of Kenai, supporting section 5 of Kenai Peninsula Borough Ordinance 2019-09, providing that a
ballot proposition on amending the Borough’s sales tax code shall be placed before Borough
voters at the regular election on October 1, 2019 and Council Member Knackstedt SECONDED
the motion.
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It was noted the intent was to support the issue of sales tax issue going to the voters and staying
out of the minutia of the laws.
VOTE ON THE AMENDMENT:
YEA: Gabriel, Navarre, Pettey, Molloy
NAY: Knackstedt, Peterkin
**Student Representative Summers: NAY
MOTION PASSED.
MOTION TO AMEND:
Council Member Molloy MOVED to amend Section 1 to read, “That the Kenai City Council
supports Section 5 of Kenai Peninsula Borough Ordinance 2019-09, providing that a ballot
proposition on amending the Borough’s Sales Tax Code shall be placed before borough voters at
the regular election on October 1, 2019,” and Council Member Knackstedt SECONDED the
motion.
VOTE ON THE AMENDMENT:
YEA: Gabriel, Navarre, Pettey, Molloy, Knackstedt
NAY: Peterkin
**Student Representative Summers: YEA
MOTION PASSED.
MOTION TO AMEND:
Council Member Molloy MOVED to amend the fourth whereas clause to read, “WHEREAS, under
the Borough Ordinance, a temporary lodging tax would be established and apply to “temporary
lodging,” to be defined in the ordinance; and,” and add a fifth whereas clause to read, “WHEREAS,
a temporary lodging tax should be inclusive of recreational vehicles sites and campsites that
compete with hotels, lodges, motels, and bed and breakfasts, to level the playing field in the
hospitality industry; and,” and Council Member Knackstedt SECONDED the motion.
VOTE ON THE AMENDMENT:
YEA: Gabriel, Navarre, Pettey, Molloy, Knackstedt
NAY: Peterkin
**Student Representative Summers: NAY
MOTION PASSED.
MOTION TO AMEND:
Council Member Molloy MOVED to add a new section 2 to read, “that the Kenai City Council
requests the Kenai Peninsula Borough Assembly include in the definition that the temporary
lodging tax apply to recreational vehicles and camp sites in the same way as other forms of
lodging,” and Council Member Knackstedt SECONDED the motion.
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VOTE ON THE AMENDMENT:
YEA: Gabriel, Navarre, Molloy, Knackstedt
NAY: Peterkin, Pettey
**Student Representative Summers: YEA
MOTION PASSED.
MOTION TO AMEND:
Council Member Molloy MOVED to add a new section 3 to read, “that the Kenai City Council
recommends that the Kenai Peninsula Borough convene a joint work session of municipalities to
discuss the ordinance on amending the Borough Sales Tax Code to levy a tax on temporary
lodging before adoption of the ordinance on temporary lodging,” and Vice Mayor Navarre
SECONDED the motion.
VOTE ON THE AMENDMENT:
YEA: Gabriel, Navarre, Molloy, Knackstedt, Pettey
NAY: Peterkin
**Student Representative Summers: YEA
MOTION PASSED.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend what is now section 4 to read, “that a copy of this resolution
be transmitted to Mayor Charlie Pierce, Kenai Peninsula Borough Assembly Members, and City
Managers, Mayors, and City Councils of the other cities in the Borough,” and Council Member
Molloy SECONDED the motion.
VOTE ON THE AMENDMENT:
YEA: Gabriel, Navarre, Molloy, Knackstedt, Pettey
NAY: Peterkin
**Student Representative Summers: YEA
MOTION PASSED.
VOTE ON THE MAIN MOTION AS AMENDED:
YEA: Knackstedt, Gabriel, Molloy, Navarre
NAY: Pettey, Peterkin
**Student Representative Summers: NAY
MOTION PASSED.
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)
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MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-31. Vice Mayor Navarre
SECONDED the motion and requested UNANIMOUS CONSENT.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE: There being no objection, SO ORDERED.
8. Resolution No. 2019-32 – Authorizing an Amendment to the Airport Advertising
Concession Agreement for the Kenai Municipal Airport. (Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-32 and requested
UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE: There being no objection, SO ORDERED.
9. Resolution No. 2019-33 – Authorizing Contracts for Employee Health Care and
Other Benefits Effective July 1, 2019. (Administration)
MOTION:
Council Member Molloy MOVED to adopt Resolution No. 2019-33. Vice Mayor Navarre
SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend the third whereas clause to replace X.XX% with 3.13%,
amend the fifth whereas clause to fill in the first blank with “UNUM” and fill in the second blank
with “no change,” amend the sixth whereas clause to replace $X,XXX with $20,784, amend
section 1 to replace $X,XXX,XXX with $2,368,161, and amend section 3 by filling in the blank with
“UNUM,” and replacing $XX,XXX with $20,784 and requested UNANIMOUS CONSENT. Council
Member Knackstedt SECONDED the motion.
VOTE ON THE AMENDMENT: There being no objection, SO ORDERED.
UNANIMOUS CONSENT was requested on the main motion.
VOTE ON THE MAIN MOTION AS AMENDED: There being no objection, SO ORDERED.
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E. MINUTES
1.*Regular Meeting of May 1, 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. *Action/Approval – Non-Objection to the Issuance of a New Liquor License for Griffin
Golf, LLC. (City Clerk)
Approved by the consent agenda.
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)
Introduced by the consent agenda and public hearing set for June 5.
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 Purpose of Purchasing Law Enforcement Equipment. (Administration)
Introduced by the consent agenda and public hearing set for June 5.
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)
MOTION:
Council Member Pettey MOVED to introduce Ordinance No. 3068-2019 and refer it to the
Planning and Zoning Commission for a recommendation and set a public hearing for June 5, 2019
and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion.
There was objection to unanimous consent.
VOTE:
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YEA: Knackstedt, Gabriel, Pettey, Molloy, Navarre
NAY: Peterkin
**Student Representative Summers: YEA
MOTION PASSED UNANIMOUSLY.
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.]
MOTION TO AMEND SOMETHING PREVIOUSLY ADOPTED:
Council Member Molloy MOVED in accordance with the notice given in the call of the meeting, to
amend Ordinance No. 3062-2019 by replacing $20,859 with $25,359 in the title and replacing
$20,859 with $25,359 in Estimated Revenues, Federal Grants – Other, and Appropriations, Parks,
Recreation, and Beautification – Professional Services in Section 1 and Council Member
Knackstedt SECONDED the motion.
VOTE:
YEA: Knackstedt, Gabriel, Pettey, Molloy, Peterkin, Navarre
NAY:
**Student Representative Summers: YEA
MOTION PASSED UNANIMOUSLY.
8. Action/Approval – Application for Extension of Lease Application Expiration Date for
the Undeveloped Portion of Tract A, General Aviation Apron No. 2. (Administration)
MOTION:
Council Member Knackstedt MOVED to approve SOAR’s application for extension of lease
application expiration date for the undeveloped portion of Tract A, General Aviation Apron No. 2
and Vice Mayor Navarre SECONDED the motion.
It was noted that subdividing the property was a low bar to have accomplished within the
timeframe and was the only requirement.
VOTE:
YEA:
NAY: Knackstedt, Gabriel, Pettey, Molloy, Peterkin, Navarre
**Student Representative Summers: NAY
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MOTION FAILED .
9. Action/Approval – Consenting to the Assignment of Lease to Don Moffis for Lot 5,
Block 1, Gusty Subdivision, Addition No. 1, Amended. (Administration)
MOTION:
Vice Mayor Navarre MOVED to approve consenting to the assignment of lease to Don Moffis for
Lot 5, Block 1, Gusty Subdivision, Addition No. 1, Amended. Council Member Knackstedt
SECONDED the motion and requested UNANIMOUS CONSENT.
VOTE: There being no objection, SO ORDERED.
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.]
MOTION:
Council Member Molloy MOVED to approve the award of an employment agreement between the
City of Kenai and City Attorney, Scott Bloom and Council Member Peterkin SECONDED the
motion. UNANIMOUS CONSENT was requested.
VOTE: There being no objections, SO ORDERED.
11. Action/Approval – Amending an Employment Agreement between the City of Kenai
and City Attorney, Scott Bloom. (Mayor Gabriel)
MOTION:
Vice Mayor Navarre MOVED to amend the City Attorney’s employment agreement for FY2020 by
increasing the compensation for FY20 by $4,000 over his FY19 salary and requested
UNANIMOUS CONSENT. Council Member Peterkin SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
12. Action/Approval – Amending an Employment Agreement between the City of Kenai
and City Manager, Paul Ostrander. (Mayor Gabriel)
MOTION:
Vice Mayor Navarre MOVED to amend the City Manager’s employment agreement for FY2020
by increasing the compensation for FY20 by $4,000 over his FY19 salary and requested
UNANIMOUS CONSENT. Council Member Peterkin SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
13. Action/Approval – Amending an Employment Agreement between the City of Kenai
and City Clerk, Jamie Heinz. (Mayor Gabriel)
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MOTION:
Vice Mayor Navarre MOVED to amend the City Clerk’s employment agreement for FY2020 by
increasing the compensation for FY20 by $8,000 over her FY19 salary and requested
UNANIMOUS CONSENT. Council Member Peterkin SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
14. Discussion – Schedule a Work Session to Review and Discuss City Land Sale and
Leasing Policies and Practices. (Administration)
It was decided a work session would be held on June 11, 2019 at 6:00 p.m.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – No report; next meeting June 13.
2. Airport Commission – No report; next meeting June 13.
3. Harbor Commission – It was reported the Commission discussed results of the Harbor
Facilities Survey, Dock Cranes, and future Capital Improvement Projects; next
meeting June 10.
4. Parks and Recreation Commission – No report; next meeting June 6.
5. Planning and Zoning Commission – It was reported that at their May 8 meeting the
Commission approved the transfer of a Conditional Use Permit for a gravel pit; next
meeting May 22.
6. Beautification Committee – It was reported the Committee picked their volunteer plant
date; next meeting September 10.
7. Mini-Grant Steering Committee – an overview of the coloring book project recently
approved was provided.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Noted upcoming Memorial Day events;
• Thanked Vice Mayor Navarre for delivering the Poppy Day Proclamation to the
American Legion;
• Asked citizens to reflect for part of Memorial Day on what sacrifices were made
for our freedom.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Met with Senator Sullivan’s staff regarding underlying issues with Wildwood Drive;
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• Met with the representatives from the Kenai Peninsula Borough and cities within
the borough to align local needs in advance of Alaska Municipal League sales tax
meeting;
• Provided an update on requests for proposals;
• Noted the Bluff Erosion Project was making small progress;
• Noted the Alaska Department of Transportation had announced that the proposed
projects along Bridge Access Road had been approved and construction was
anticipated for the next two years;
• Airport Terminal Rehabilitation Project was on schedule; some lessees were
moving into their new spaces.
2. City Attorney – No Report.
3. City Clerk – J. Heinz reported on upcoming training.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
Duane Bannock thanked the Mayor for the reminder of Memorial Day event. Also expressed
gratitude for the debate on the bed tax subject, for listening to concerns, debating, and amending
the resolution.
Sherry Innes thanked the Council for their dialogue, appreciated Mr. Bannock’s testimony and
suggested that it made sense that RVs should be subject to the tax as well.
2. Council Comments
Vice Mayor Navarre noted he presented the Poppy Day proclamation on behalf of the Mayor and
provided a reminder of the Memorial Day celebration at the cemetery and Leif Hanson Memorial
Park. He also noted he sent information out so elected officials could prepare opinion editorials
for the local news; reported on an opinion editorial regarding non-profit and private enterprises
assisting in the State’s budget deficit; suggested Alaskans can solve the problem by working
together.
Council Member Pettey thanked all the departments and administration for efficiencies in
examining and preparing their budgets; thanked the public for input and their part in the decision
making process for the City. She noted she attended the Chamber of Commerce dinner and
auction which was well attended and also attended an air show in Anchorage. Finally, she offered
kudos to the Airport Manager for the display and presentation at the event that was shared with
the whole state showcasing Kenai and the Kenai Municipal Airport.
Council Member Peterkin echoed gratitude to staff for their work on the budget, thanked the City
Clerk for attending the Harbor Commission meeting, and keep Kenai open for business.
Student Representative Summers noted recent musical events and graduation. He also noted
the principal position opening at Kenai Central High School and added that Ms. Randle was
supported by the population of the students to fill the principal position.
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Council Member Molloy thanked those that spoke to Council, thanked Vice Mayor Navarre for the
letters he provided and the work by Alaska Municipal League on budget issues, thanked Mayor
Gabriel for signing a letter as well. He also noted the FY2020 budget was a great document.
Council Member Knackstedt expressed gratitude regarding the budget process noting fewer
modifications in the end; he also noted appreciation for the expanded document this year. Finally,
he provided a reminder of the upcoming Kenai Peninsula Air Fair.
L. EXECUTIVE SESSION – None.
M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 9:43 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of May 15,
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.
77
KENAI CITY COUNCIL – REGULAR MEETING
JUNE 5, 2019 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR BRIAN GABRIEL, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on June 5, 2019, in City Hall Council
Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Brian Gabriel, Mayor Robert Molloy
Henry Knackstedt Tim Navarre
Jim Glendening Robert Peterkin
Glenese Pettey
A quorum was present.
Also in attendance were:
Paul Ostrander, City Manager
Scott Bloom, City Attorney
Jamie Heinz, City Clerk
3. Agenda Approval
Mayor Gabriel noted the following revisions to the packet:
Add to item D.3. Ordinance No. 3068-2019
• Public Comments
MOTION:
Council Member Molloy MOVED to approve the agenda with the requested revisions to the packet
and to move item D.6. to be considered first under public hearings and requested UNANIMOUS
CONSENT. Council Member Knackstedt SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
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MOTION:
Council Member Knackstedt MOVED to approve the consent agenda and Council Member Molloy
SECONDED the motion. UNANIMOUS CONSENT was requested.
Mayor Gabriel 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
1. LTJG Scott Peters – U.S. Coast Guard Involvement in the Kenai River Dip Net
Fishery.
Lieutenant Peters spoke about the U.S. Coast Guard being present in July for Dockside Vessel
Safety Examinations by the auxiliary members July 12 & 13 and July 26 & 27 and recreational
boating safety enforcement on the water July 20 & 21 and 26-28, working with Alaska State Parks.
He noted the agencies would be enforcing state laws and federal laws for boating safety as they
have for the past few years. He also noted the conflict between federal and state laws regarding
marijuana and advised marijuana be left at home and not taken on the water.
C. UNSCHEDULED PUBLIC COMMENTS – None.
D. PUBLIC HEARINGS
[Clerk’s Note: This item was moved to be considered first under public hearings at approval of the
agenda.]
6. Resolution No. 2019-36 – Accepting a Donation from Kenai Senior Connections, Inc.
for $50,000 to the FY2019 Budget. (Administration)
MOTION:
Council Member Molloy MOVED to adopt Resolution No. 2019-36 and requested UNANIMOUS
CONSENT. Council Member Knackstedt SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
Gratitude was expressed to Kenai Senior Connections for their fundraising work to help deliver
the needed funds to the seniors of the City.
VOTE: There being no objection, SO ORDERED.
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1. 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)
• Substitute Ordinance No. 3066-2019 – Increasing Estimated Revenues and
Appropriations in the Airport Special Revenue and Airport Improvements Capital
Project Funds, Accepting and Appropriating a Grant from the Federal Aviation
Administration, and Awarding a Construction Contract for Completion of the 2019
Airfield Marking, Crack Sealing, and Minor Pavement Repair Project.
(Administration)
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 3066-2019 and Vice Mayor Navarre
SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
MOTION TO AMEND :
Council Member Knackstedt MOVED to amend by substitute Ordinance No. 3066-2019. Vice
Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
VOTE ON THE MAIN MOTION AS AMENDED:
YEA: Knackstedt, Glendening, Pettey, Navarre, Molloy, Peterkin, Gabriel
NAY:
MOTION PASSED UNANIMOUSLY.
2. 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 Purpose of Purchasing Law Enforcement Equipment. (Administration)
MOTION:
Council Member Molloy MOVED to enact Ordinance No. 3067-2019 and Council Member
Knackstedt SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE:
YEA: Knackstedt, Glendening, Pettey, Navarre, Molloy, Peterkin, Gabriel
NAY:
MOTION PASSED UNANIMOUSLY.
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3. 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)
MOTION:
Council Member Glendening MOVED to enact Ordinance No. 3068-2019 and Council Member
Pettey SECONDED the motion.
Mayor Gabriel opened for public hearing.
Sherry Innes spoke in favor of the ordinance citing the number of highway deaths of people who
had marijuana in their systems, which continued to grow, and pointed out that the Colorado
Department of Transportation considered the studies to be the most reliable indicator of impaired
drivers. She added that the ability to test for marijuana impairment is lacking and suggested that
prohibiting it was not about freedom, it was about safety.
Patricia Patterson spoke against the ordinance noting she understood the concern due to the bad
situation with Green Rush Events in the beginning. She noted visitors don’t have a place to do it,
suggested it’s a tasting bar given the amount that someone could legally consume on site, and
that a retail store welcoming tourism in this way could be done quite nicely. She also noted that
people living in a place where they can’t smoke or live somewhere they want to keep their
consumption separate was another need. Patricia added that her average retail store customer
was over 45.
Lisa Coates, owner of a manufacturing facility, spoke against the ordinance by reason of
elimination of the stigma of cannabis, noting cigarettes and alcohol were allowed in certain areas
and by excluding public consumption of cannabis, a double standard was created. She added
that public education regarding THC, terpenes, etc., and how the chemicals can help people with
certain ailments should be provided along with public consumption to also help remove the
stigma.
Al Weeks spoke in favor of the ordinance noting that he works with Love, Inc. and actively walks
in the woods to find homeless. He added that when matters such as this come up, it was easy to
think we were doing a good thing but noted that unintended consequences arise. Finally, he
suggested the City didn’t need another intoxicant around during an already busy month of July.
Buddy Crowder spoke against the ordinance noting everyone has rights to make good or bad
choices and pointing out we all make both. He suggested there was so much involved in opening
one up, they should be given a chance to do it in a way that worked for the community.
There being no one else wishing to be heard, the public hearing was closed.
It was suggested that the ordinance was not against marijuana but against the state’s imposition
of onsite consumption. It was noted that previous action declined to accept regulations allowing
it, none of the operators in the community indicated they wanted to do it, and it had been
concluded the current needs of the community were being met.
Clarification was provided that if this ordinance failed, the Council needed to bring back something
providing regulations.
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Vice Mayor Navarre declared a potential conflict of interest noting his limited liability corporation
leased space to a marijuana retail store in the city, and a cultivation facility outside the city.
Municipal Code was reviewed and Vice Mayor Navarre clarified there was no direct financial tie
in. It was noted there were still regulations, through another agency, to be complied with in
obtaining an onsite consumption endorsement and the facility in question in the city was not
freestanding so didn’t comply with the state’s licensing requirements. It was noted that there were
ten shareholders, profits were diluted, the rent for that specific space was not substantial and, if
vacant, the space could be leased out quickly. The Mayor ruled that Vice Mayor Navarre was
allowed to vote and there was no objection from the body.
It was suggested a moratorium was a better vehicle; that prohibition sends the wrong message
as a moratorium would clarify that Council was not opposed and willing to listen if someone came
forward with a need and opportunity to do it safely and adequately. It was noted a moratorium
protected the City and, if an operator chose to come forward, rules and regulations could then be
set.
A brief history of the actions taken regarding onsite consumption was provided.
Clarification was provided regarding testing for impairment noting officers had drug recognition
training and, if it was suspected someone was illegally impaired, certain impairment tests could
be conducted and an arrest made. It was also noted that state regulations required video
surveillance which could be obtained from the retailer.
It was pointed out that the ordinance could be repealed in the future and regulations put into place
at that time if it was determined there was a need.
It was suggested that, despite knowing it wasn’t difficult to change the law, the public often didn’t
know how to and the sponsors were asked to be open to postponement and consideration of a
moratorium ordinance.
MOTION TO AMEND :
Vice Mayor Navarre MOVED to amend by entering the word, “enact” in the blank in the seventh
whereas clause and requested UNANIMOUS CONSENT. Council Member Knackstedt
SECONDED the motion and
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
MOTION TO POSTPONE:
Vice Mayor Navarre MOVED to postpone Ordinance No. 3068-2019 to the June 19 meeting and
Council Member Molloy SECONDED the motion.
It was noted the postponement would allow the comparison between a prohibition versus a
moratorium.
VOTE ON POSTPONEMENT:
YEA: Knackstedt, Glendening, Pettey, Molloy, Peterkin, Navarre, Gabriel
NAY:
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MOTION PASSED UNANIMOUSLY.
4. Resolution No. 2019-34 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes included in the FY2020 Budget to include Adjusting
the Kenai Municipal Airport Apron Rental Rates, Airport Reserve Land Annual Lease
Rates, Animal Control Fees, Adjusting the Monthly Rental Rates at Vintage Pointe,
Increasing Water/Sewer Rates, and Ambulance Fees, and Implementing a New
Library Fee, and Increasing Senior Center Rental Fees. (Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-34. Vice Mayor Navarre
SECONDED the motion and requested UNANIMOUS CONSENT.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
Clarification was provided that some rates were calculated by comparative charges and some
were calculated by an increase in the Consumer Price Index. It was further clarified that, in some
cases, the fees didn’t necessarily cover the costs.
Additional clarification was provided regarding the airport rates being adjusted pursuant to a study
that had been completed in the past and there was discussion regarding senior center rental
rates, ambulance rates, and the City’s policy on charity care with regard to ambulance services.
Unanimous Consent was objected to.
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend item 9.a. under the Library fees to remove “on
items” and replace with “per item” and Council Member Molloy SECONDED the motion.
UNANIMOUS CONSENT was requested.
VOTE ON THE AMENDMENT: There being no objections, SO ORDERED.
MOTION TO AMEND:
Council Member Knackstedt MOVED to amend the fee for item 9.a. under the Library fees to
$2.00 instead of $1.00 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 AS AMENDED:
YEA: Knackstedt, Glendening, Pettey, Molloy, Peterkin, Navarre, Gabriel
NAY:
MOTION PASSED UNANIMOUSLY.
MOTION:
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Vice Mayor Navarre MOVED to suspend the rules and take up the Executive Session item at this
point in the meeting and requested UNANIMOUS CONSENT. Council Member Molloy
SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
1. Discussion of Kenai Visitor Center Management and Potential Staffing Changes, a
Matter of Which the Immediate Knowledge may have an Adverse Effect upon the
Finances of the City [AS44.62.310(c)(1)] and a Subject that Tends to Prejudice the
Reputation and Character of a Person or Persons Currently Employed by the City
[AS44.62.310 (c)(2)]
MOTION:
Council Member Molloy MOVED to enter into executive session to discuss the Visitor Center
Management and Potential Staffing Changes, a matter of which the immediate knowledge may
have an adverse effect upon the Finances of the City [AS44.62.310(c)(1) and which may be a
subject that tends to prejudice the reputation and character of a Person or Persons Currently
Employed by the City [AS44.62.310(C)(2)]; requested the attendance of City Manager, City
Attorney, Finance Director, and Human Resource Director, as needed. Council Member Peterkin
SECONDED the motion.
VOTE:
YEA: Knackstedt, Glendening, Pettey, Molloy, Peterkin, Navarre, Gabriel
NAY:
MOTION PASSED UNANIMOUSLY.
Council reconvened in open session, noted for the record that they had discussed the Kenai
Visitor Center management and potential staff changes, and gave direction to City Administration
for the negotiation with the Kenai Visitor Bureau organization.
5. Resolution No. 2019-35 – Authorizing Budget Adjustments in the Airport Fund for
Costs in Excess of Budgeted Amounts. (Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-35. Vice Mayor Navarre
SECONDED the motion and requested UNANIMOUS CONSENT.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE: There being no objection, SO ORDERED.
[Clerk’s Note: This item was moved to be considered first under public hearings at approval of the
agenda.]
6. Resolution No. 2019-36 – Accepting a Donation from Kenai Senior Connections, Inc.
for $50,000 to the FY2019 Budget. (Administration)
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E. MINUTES – None.
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. 3069-2019 – Appropriating FY2019 Budgeted Funds for Municipal
Roadway Improvements in the Municipal Roadway Improvements Capital Project
Fund for Future Roadway Projects. (Administration)
Introduced by the consent agenda and public hearing set for June 19.
4. *Ordinance No. 3070-2019 – Authorizing a Budget Transfer in the General Fund,
Decreasing Estimated Revenues and Appropriations in the Senior Citizen Special
Revenue Fund and Appropriating FY2019 Budgeted Amounts in the Senior Center
Improvement Capital Project Fund for Carpet Replacement. (Administration)
Introduced by the consent agenda and public hearing set for June 19.
5. Action/Approval – Second Amendment to Agreement for Janitorial Services for the
City of Kenai City Hall, Airport, Community Library, and Police Department.
(Administration)
MOTION:
Council Member Molloy MOVED to approve the second amendment to agreement for janitorial
services for the City of Kenai City Hall, Airport, Community Library, and Police Department, and
requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion.
VOTE: There being no objection, SO ORDERED.
6. Action/Approval – City Sponsorship of $1,000 to Alaska Municipal League for the
2019 Summer Legislative Conference Being Held in Soldotna. (Vice Mayor Tim
Navarre)
MOTION:
Vice Mayor Navarre MOVED to authorize a sponsorship in the amount of $1,000 to Alaska
Municipal League for the 2019 Summer Legislative Conference being held in Soldotna. Council
Member Molloy SECONDED the motion. UNANIMOUS CONSENT was requested.
VOTE: There being no objection, SO ORDERED.
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7. Action/Approval – City Donation of a Memorial Plaque Honoring Ron Malston to be
Placed at Leif Hanson Memorial Park. (Vice Mayor Tim Navarre)
MOTION:
Vice Mayor Navarre MOVED to approve the donation of a memorial plaque and tree honoring
Ron Malston to be placed at Leif Hanson Memorial Park, and requested UNANIMOUS
CONSENT. Council Member Pettey SECONDED the motion.
VOTE: There being no objection, SO ORDERED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – No report; next meeting June 13.
2. Airport Commission – No report; next meeting June 13.
3. Harbor Commission – No report; next meeting June 10.
4. Parks and Recreation Commission – No report; next meeting August 1.
5. Planning and Zoning Commission – It was reported that at their May 22 meeting the
Commission recommended onsite consumption ordinance; next meeting June 12.
6. Beautification Committee – No report; next meeting September 10.
7. Mini-Grant Steering Committee – No report.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Attended James Dye’s retirement party at the Kenai Fire Department;
• Attended Kenai Central High School graduation and the alternative high school
graduation;
• Attended the Memorial Day Service;
• Asked that D-Day, and the sacrifices made that day were remembered as a
significant event in our past;
• Attended Ron Malston’s Celebration of Life Service;
• Provided a reminder of the upcoming Kenai Peninsula Air Fair.
J. ADMINISTRATION REPORTS
1. Acting City Manager – T. Eubank reported on the following:
• Noted he and the City Attorney were travelling to Anchorage to discuss and
negotiate definitions for online sales tax hosted by Alaska Municipal League.
2. City Attorney – No Report.
3. City Clerk – J. Heinz reported upcoming training she would be attending and asked
that those wishing to attend the Alaska Municipal League Summer Conference to
contact her.
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K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
David Chessick spoke about the first day of fishing in the Cook Inlet noting he brought the fish up
by hand; cranes nearby but not available for use. He added that Kenai was a fishing town and
that fishing was part of its heritage and the City needed to work with those needing the dock and
cranes. He also suggested a festival for the first fish of the season, similar to the festival in
Cordova.
2. Council Comments
Vice Mayor Navarre spoke about a the need for a Capital Improvement Project fund to replace
the capital funding that the state used to assist with, noted he attended the joint work session
regarding taxing options the Kenai Peninsula Borough was considering, noted he attended Ron
Malston’s service, and noted that Pat Bird had passed away.
Council Member Pettey thanked the U.S. Coast Guard and the Harbor Commission for working
on safety during the Dipnet Fishery; thanked the Senior Center for hosting the Anchorage Bowl
Concert Group; provided reminders for upcoming events; thanked the Senior Connection for their
generous donation; attended Ron Malston’s service.
Council Member Glendening also noted he had attended Ron Malston’s service and was
heartened by all that Ron Malston had given to the City; also noted his grandson graduated high
school, he had recently attended a family reunion and celebrated an aunt’s 100th birthday.
Council Member Peterkin noted Skipper from the Friendship Mission passed away leaving the
Friendship Mission in limbo as a special person was needed to take care of it; suggested a
committee to change streetlights, to provide unique options for different neighborhoods; noted his
daughter had recently graduated high school at Kenai Central High School.
Council Member Molloy noted the Celebration of Birds project that took place instead of the birding
festival noting a series of events that brought people to the central peninsula and City of Kenai.
[Clerk’s Note: This item was considered after G.4. after a motion to suspend the rules passed.]
L. EXECUTIVE SESSION
1. Discussion of Kenai Visitor Center Management and Potential Staffing Changes, a
Matter of Which the Immediate Knowledge may have an Adverse Effect upon the
Finances of the City [AS44.62.310(c)(1)] and a Subject that Tends to Prejudice the
Reputation and Character of a Person or Persons Currently Employed by the City
[AS44.62.310 (c)(2)]
M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 10:14 p.m.
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I certify the above represents accurate minutes of the Kenai City Council meeting of June 5, 2019.
_____________________________
Jamie Heinz, CMC
City Clerk
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_____________________________________________________________________________________
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 its regular meeting of May 22, 2019 the Planning and Zoning Commission
recommended the City Council enact 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.
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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
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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.
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“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.
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“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.
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“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.
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“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.
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“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
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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
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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.
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“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.
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“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.
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“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.
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“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.
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“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.
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“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
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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 19th day of June, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
105
Ordinance No. 3068-2019
Page 18 of 18
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Introduced: May 15, 2019
Public Hearing: June 5, 2019
Enacted: June 19, 2019
Effective: July 19, 2019
106
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.
107
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Scott Bloom, City Attorney
DATE: May 30, 2019
SUBJECT: Ordinance No. 3068 – 2019
____________________________________________________________________________
On May 22, 2019 the Planning and Zoning Commission held a public hearing and recommended
that the City Council enact Ordinance 3068-2019. A copy of the Planning and Zoning
Commission’s Resolution is attached.
It is recommended that the following amendment be moved:
Amend the last Whereas Clause to read:
WHEREAS, at its regular meeting of May 22, 2019 the Planning and Zoning Commission
recommended the City Council Enact this Ordinance.
Your consideration is appreciated.
108
CITY OF KENAI
PLANNING AND ZONING COMMISSION
RESOLUTION NO. PZ2019 -16
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI
RECOMMENDING THE COUNCIL OF THE CITY OF KENAI ENACT ORDINANCE 3068-2019
AMENDING KENAI MUNICIPAL CODE 14.20.320 -DEF INITIONS AND 14.20 .330 -
STANDARDS FOR COMMERCIAL MARIJUANA ESTABLISHMENTS , TO PROHIBIT ONSITE
CONSUMPTION OF MARIJUANA AT RETAIL MARIJUANA STORES REQUIRING AN ONSITE
CONSUMPTION ENDORSEMENT.
WHEREAS , Kenai Municipal Code 14.05.010 states the City of Ke nai Planning and Zoning
Commission will act in an advisory capacity to the Kenai City Council regarding the Ke nai Zoning
Code; and,
WHEREAS, at their meeting on May 1, 2019, after reviewing recommendat ions and input from
the Kenai Planning and Zoning Commission as part of their decisio n process , t he Kenai City
Council failed to enact Ordinance 3061-2019, which would have allowed onsite consumpt ion
through the City's conditional use process ; and ,
WHEREAS, 3 AAC 306.200 provides that a City Council by ordi nance may prohibi t ons ite
consumption endorsements to a retail marijuana store within its jurisdiction and the Kenai City
Council referred Ordinance 3068-2019 prohibiting marijuana consumption at retail marijuana
stores to the Kenai Planning and Zoning Commission for a recommendat io n at t heir meetin g on
May 15, 2019; and,
WHEREAS , public health, safety, and welfare would be protected by prohib itin g onsite marij uana
consumption at retail marijuana stores ; and,
WHEREAS, quality of life , a stated goal in the 2016 Imagine Kenai 2030 Comprehens iv e Plan , is
supported by prohibiting onsite marijuana consumption at retai l marijuana stores; and ,
WHEREAS , the City may reexamine onsite consumption at ma rijuana retail stores if additional
evidence and information would support this use at a future date.
NOW, THEREFORE , BE IT RECOMMENDED BY THE PLANNING AND ZONING COMMISSION
OF THE CITY OF KENAI, ALASKA:
Section 1. That the Kenai City Council enact Ordinance 3068-2019 .
Section 2. That a copy of Resolution PZ2019-16 be forwa rded to t he Kena i City Council.
109
Resolution No. PZ2019-16
Page 2 of 2
PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA,
this 22nd day of May, 2019.
IT, CHAIRPERSON
ATTEST:
110
May 30, 2019
Daniel & Teresa Sterchi
36525 Kalifornsky Beach Road
Kenai , Alaska 99611
Phone 907-283-3878
sterchiconstruction@hotmail.com
Mayor Brian Gabriel & Kenai City Council
210 Fidalgo Ave
Kenai, Alaska 99611
Phone 907-283-7535
www.kenai .city
SUBJECT: Ordinance No. 3068-2019
This letter is in support of Ordinance No. 3068-2019.
We have property on Evergreen; which is family friendly.
Please keep our residential neighborhood quiet & peaceful; for the families living there now.
Thank you for this ordinance.
Sincerely:
~/~.
Teresa Sterchi {\~~ ~ 1.\i_ · ~~~~~
111
From:dollynda Phelps
To:City Clerk
Subject:Driving while impaired
Date:Friday, June 7, 2019 6:29:18 PM
CAUTION: This email originated from outside your organization. Exercise caution when
opening attachments or clicking links, especially from unknown senders.
Please read this information pertaining to driving impairment while under the influence of
marijuana...there is research and data included in the report.
Report: THC Limits Not Correlated To Driving Impairment - NORML - Working to Reform
Marijuana Laws
Sent from Yahoo Mail on Android
Report: THC Limits Not Correlated To
Driving Impairment - NORML - Working to
Reform Marijuana Laws
The presence of THC in blood is not correlated with driving
performance and is not a reliable indicator of psychomotor
impairment, according to recommendations made by a state-
appointed traffic safety task force.
112
6/14/2019 Report: THC Limits Not Correlated To Driving Impairment - NORML - Working to Reform Marijuana Laws
https://norml.org/news/2019/04/11/report-thc-limits-not-correlated-to-driving-impairment?link_id=5&can_id=0e0cfe22abc72a7324de4b3060d9baf7&so…1/4
Best 7 Pot Stocks To Own [new]
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Correlated To Driving Impairment
Report: THC Limits Not Correlated To Driving Impairment
(/news/2019/04/11/report-thc-limits-not-correlated-to-driving-
impairment)
Thursday, 11 April 2019
113
6/14/2019 Report: THC Limits Not Correlated To Driving Impairment - NORML - Working to Reform Marijuana Laws
https://norml.org/news/2019/04/11/report-thc-limits-not-correlated-to-driving-impairment?link_id=5&can_id=0e0cfe22abc72a7324de4b3060d9baf7&so…2/4
Lansing, MI: The presence of THC in blood is not correlated with driving performance and is not
a reliable indicator of psychomotor impairment, according to recommendations
(https://www.wilx.com/content/news/New-report-says-Michigan-shouldnt-set-driving-limit-for-
marijuana-507658461.html) made by a state-appointed traffic safety task force.
A report
(http://media.graytvinc.com/documents/Michigan+Impaired_Driver_Report_1553554601148_79160282_ve
issued by the Michigan Impaired Driving Safety Commission finds that peak THC blood levels are
not associated with maximal behavioral impairment and further finds that the compound's
influence upon driving performance varies significantly among individual consumers. As a result,
"The Commission recommends against the establishment of a threshold of delta-9-THC bodily
content for determining driving impairment and instead recommends the use of roadside sobriety
tests to determine whether a driver is impaired."
The Commission's recommendations are similar to those (https://norml.org/marijuana/fact-
sheets/item/marijuana-and-psychomotor-impairment) previously issued by the American
Automobile Association, the National Highway Traffic Safety Administration, and other traffic
safety experts who have similarly opined against the imposition of per se thresholds for the
presence of THC. NORML similarly argues
(https://norml.org/pdf_files/per_se_limits_for_cannabis.pdf) that the identification of THC in blood is
a poor predictor of either recent cannabis exposure or impaired performance.
The Commission's report further opines that subjects influenced by cannabis "typically drive
slower, keep greater following distances, and take fewer risks than when sober." They add, "While
there is some uncertainty as to the crash risk associated with cannabis impairment alone, the
research is clear that the risk is lower than that of alcohol impairment."
Five states -- Montana, Nevada, Ohio, Pennsylvania, and Washington -- impose
(https://norml.org/legal/drugged-driving) various per se limits for the detection of specific amounts
of THC in blood while eleven states (Arizona, Delaware, Georgia, Illinois, Indiana, Iowa, Michigan,
Oklahoma, Rhode Island, Utah, and Wisconsin) impose zero tolerant per se standards. In those
states, it is a criminal violation of the traffic safety laws to operate a motor vehicle with detectable
levels of THC in blood. Colorado law infers driver impairment in instances where THC is detected
inblood at levels of 5ng/ml or higher.
For more information, contact Paul Armentano (mailto:paul@norml.org), NORML Deputy Director.
Additional information is available from the NORML fact-sheet, "Marijuana and Psychomotor
Performance (https://norml.org/marijuana/fact-sheets/item/marijuana-and-psychomotor-
impairment)."
Best 7 Pot Stocks To Own [new]114
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Council Members
Pettey and Glendening
CITY OF KENAI
ORDINANCE NO. 3068-2019 (SUBSTITUTE)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI
MUNICIPAL CODE 14.20.320- DEFINITIONS, AND IMPLEMENTING A MORATORIUM
PROHIBITING ONSITE CONSUMPTION OF MARIJUANA AT RETAIL MARIJUANA STORES
REQUIRING AN ONSITE CONSUMPTION ENDORSEMENT UNTIL JULY 1, 2021.
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 observe how the
new state regulations addressing onsite consumption are implemented and what community
needs are before the City Council decides whether onsite consumption should be further
regulated or prohibited in the City; and,
WHEREAS, at it regular meeting of May 22, 2019 the Planning and Zoning Commission
recommended the City Council enact a prohibition on onsite consumption and reexamine the
issue at a future date.
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:
115
Ordinance No. 3068-2019
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14.20.320 Definitions.
(a) General Interpretation.
(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
116
Ordinance No. 3068-2019
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(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
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.
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“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.
“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.
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“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.
“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 edorsements, 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.
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“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.
“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.
120
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“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.
“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
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uses for gas conditioning/compressor stations. “Storage” means surface uses necessary for
storage of produced or non-native natural gas.
“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.
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“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
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.
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“Manufacturing/Fabricating/Assembly” means the mechanical or chemical transformation
of materials or substances into new products including assembling of components parts, the
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.
124
Ordinance No. 3068-2019
Page 11 of 16
_____________________________________________________________________________________
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.
125
Ordinance No. 3068-2019
Page 12 of 16
_____________________________________________________________________________________
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.
126
Ordinance No. 3068-2019
Page 13 of 16
_____________________________________________________________________________________
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.
127
Ordinance No. 3068-2019
Page 14 of 16
_____________________________________________________________________________________
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.
128
Ordinance No. 3068-2019
Page 15 of 16
_____________________________________________________________________________________
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.
129
Ordinance No. 3068-2019
Page 16 of 16
_____________________________________________________________________________________
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. Moratorium: That the Kenai City Council hereby declares a moratorium prohibiting
operation of Onsite Consumption Endorsements by conditional use permit or otherwise, until July 1,
2021. It is the intent of this moratorium that the City observe and study further the implementation of
state regulations regulating onsite consumption, the effects of onsite consumption on community
health and welfare, and the needs of Kenai residents, business owners and visitors. It is further
intended that prior to the expiration of this moratorium that the Kenai City Council take further action
either prohibiting or otherwise regulating onsite consumption or extending this moratorium.
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
Introduced: May 15, 2019
Public Hearing: June 5, 2019
Enacted: June 19, 2019
Effective: July 19, 2019
130
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Council Members Glenese Pettey and Jim Glendening
DATE: June 7, 2019
SUBJECT: Ordinance No. 3068 – 2019 (Substitute)
____________________________________________________________________________
Ordinance 3068-2019 (Substitute) imposes a moratorium until July 1, 2021 on the local licensing
of retail marijuana establishments allowing for onsite consumption of marijuana and marijuana
products. This is similar to Ordinance 2868-2015 enacted by Council in January 2016, which
imposed a moratorium for one year on the consumption of marijuana and marijuana products in
retail marijuana establishments and clubs. At that time there was not a regulatory scheme for
onsite consumption as there is now. The current regulations allowing for onsite consumption are
new this year and there are not any operators operating in the state yet. Prohibiting the activity
for two years will allow the City to further evaluate whether it is activity that can be regulated safely
for consumers and the community, whether there is a need for the activity by business, residents
and visitors, and whether public safety concerns can be addressed. It is intended that prior to the
expiration of this moratorium, the Kenai City Council will be ready to move forward with either
regulations addressing onsite consumption, an ordinance prohibiting it, or an extension of the
moratorium. This moratorium can only be repealed by Ordinance.
The Substitute Ordinance, similar to the initial Ordinance postponed on June 5, 2019, provides a
definition for onsite consumption in the City’s Code. Your consideration is appreciated.
131
PAYMENTS OVER $15,000 .00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: JUNE 19, 2019
VENDOR DESCRIPTION
PERS PERS
INTEGRITY JANITORIAL MAY SERVICE AT CITY HALL
PREC IOUS JANITORIAL MAY SERVICE AT LIBRARY
PRECIOUS JANITORIAL MAY SERVICE AT TERMINAL
PRECIOUS JANITORIAL MAY SERVICE AT POLICE
PRECIOUS JANITORIAL MAY SERVICE AT VISITOR CENTER
HOMER ELECTRIC ELECTRICITY USAGE
INVESTMENTS
VENDOR DESCRIPTION
DEPARTMENT ACCOUNT AMOUNT
VARIOUS LIABILITY 93,368.40
NON-DEPARTMENTAL REPAIR & MAINTENANCE 1,389 .00
LIBRARY REPAIR & MAINTENANCE 2 ,795.00
AIRPORT REPAIR & MAINTENANCE 4,495.00
POLICE REPAIR & MAINTENANCE 978.00
VISITOR CENTER REPAIR & MAINTENANCE 928.00
VARIOUS UTILITIES 115 ,181 .80
MATURITY DATE AMOUNT Effect. Int.
132
FISCAL YEAR 2020
PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL
COUNCIL MEETING OF: JUNE 19, 2019
VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT
CASELLE FY20 SOFTWARE SUPPORT FINANCE SOFTWARE 25 ,228 .00
SADLER PROPERTY MANAGEMENT CONTRACTOR'S FEE 7/1/19-10/1/19 VINTAGE POINTE PROF . SERVICES 15,315.00
KENAI PENINSULA BOROUGH FY20 SLUDGE DISPOSAL WWTP PROF . SERVICES 35 ,000 .00
NALCO FY20 POLYMER WATER OPERATING SUPPLIES 45,000 .00
CROWLEY FUEL FY20 DIESEL AIRPORT OPERATING SUPPLIES 52,000.00
GUARDIAN SECURITY FY20 SECURITY SERVICES AIRPORT REPAIR & MAINTENCE 60 ,000.00
133
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary L. Bondurant – Airport Manager
DATE: June 7, 2019
SUBJECT: Kenai Airport FY20 Purchase Orders Over $15,000
The purpose of this memo is to define the fiscal year 2020 purchase orders for the Airport:
$52,000 Crowley Fuel contract term 7/01/2018-06/30/2021
• Equipment, ARFF vehicle, and generator fuel
$60,000 Guardian Security contract term 3//2019-2/28/2020
• Security services 5 hours a day – 7 days a week
Please contact me if you have any questions.
Thank you for your consideration.
134
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THRU: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: June 11, 2019
SUBJECT: Caselle Inc. Purchase Order in Excess of $15,000
The purpose of the memo is to recommend approval of a purchase order to Caselle, Inc. in the
amount of $25,228. Caselle, Inc. is the parent company of the City’s accounting software provider
and is the only vendor able to perform maintenance and support for this product. This annual
amount entitles the City to unlimited product updates and technical support. It is a contract vital
to operating and maintaining the City’s financial records and your support is respectfully
requested.
135
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: June 10, 2019
SUBJECT: Purchase Order to Sadler Property Management
This MEMO is to request approval of the purchase order to Sadler Property Management
(Contractor) for July, August and September of 2019. The Contract for the Property
Management for Vintage Pointe Manor expires on October 1, 2019. This purchase order will
cover the remaining months of the contract.
Thank you for your consideration.
136
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 12, 2019
SUBJECT: Purchase Orders over $15K
____________________________________________________________________________
The purpose of this memo is to request approval for several purchase orders over $15K for FY20.
Account 010 465 2022 Water Department Operating
Purchase Order to Nalco for $45,000.00
Nalco supplies a proprietary polymer which aids in the water treatment process
Account 010 467 4531 Waste Water Treatment Plant Professional Services
Purchase Order to Kenai Peninsula Borough for $35,000.00
The WWTP hauls sludge to the KPB Landfill. This PO will cover those costs / fees.
Approval of these POs will allow the Public Works Department to continue to meet the needs of
the community while remaining within compliance with environmental regulations.
Council’s approval is respectfully requested.
137
MEMORANDUM
TO: Mayor and City Council Members
FROM: Jamie Heinz, City Clerk
DATE: June 7, 2019
RE: Retail Marijuana Store License Renewal
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has
requested to renew their Retail Marijuana Store License:
Applicant: Cook Inlet Cannabis Company
Owners: Ryan Tunseth
D/B/A: East Rip
Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or
applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control
Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory
basis prior to the City Council approval of any activity of said license holder or applicant.
A review of City accounts has been completed and the applicant has satisfied all obligations to
the City. With the approval of Council, a letter of non-objection to the request for the renewal of
the Retail Marijuana Store License will be forwarded to the Alcoholic & Marijuana Control Office
and the applicant.
Your consideration is appreciated.
Attachments
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / FAX: 907-283-3014
138
139
Department of Commerce, Community, and Economic Development
ALCOHOL & MARIJUANA CONTROL OFFICE
550 West 7th Avenue, Suite 1600
Anchorage, AK 99501
Main: 907.269.0350
May 23, 2019
City of Kenai
Attn: Jamie Heinz
VIA Email: jheinz@kenai.city
Kenai Peninsula Borough
Attn: Borough Clerk
Via Email: tshassetz@kpb.us
jblankenship@kpb.us
micheleturner@kpb.us
License Number: 13382
License Type: Retail Marijuana Store
Licensee: Cook Inlet Cannabis Co.
Doing Business As: EAST RIP
Physical Address: 10767 KENAI SPUR HWY
SUITE D
KENAI, AK 99611
Designated Licensee: Ryan Tunseth
Phone Number: 907-398-1233
Email Address: bruce483@hotmail.com
AMCO has received a complete renewal application and/or endorsement renewal application for a
marijuana establishment within your jurisdiction. This notice is required under 3 AAC
306.035(c)(2). Application documents will be sent to you separately via ZendTo.
To protest the approval of this application pursuant to 3 AAC 306.060, you must furnish the director and
the applicant with a clear and concise written statement of reasons for the protest within 60 days of the
date of this notice, and provide AMCO proof of service of the protest upon the applicant.
3 AAC 306.060 states that the board will uphold a local government protest and deny an application for
a marijuana establishment license unless the board finds that a protest by a local government is
arbitrary, capricious, and unreasonable. If the protest is a “conditional protest” as defined in 3 AAC
306.060(d)(2) and the application otherwise meets all the criteria set forth by the regulations, the
Marijuana Control Board may approve the license renewal, but require the applicant to show to the
board’s satisfaction that the requirements of the local government have been met before the director
issues the license.
At the May 15, 2017, Marijuana Control Board meeting, the board delegated to me the authority to
approve renewal applications with no protests, objections, or notices of violation. However, if a timely
140
protest or objection is filed for this application, or if any notices of violation have been issued for this
license, the board will consider the application. In those situations, a temporary license may be issued
pending board consideration.
If you have any questions, please email amco.localgovernmentonly@alaska.gov.
Sincerely,
Erika McConnell
Director
141
Received by AMCO 5.6.19
142
Received by AMCO 5.6.19
143
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144
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
May 28, 2019
Sent via email: jheinz@kenai.city
City of Kenai
Kenai City Hall
RE: Renewal Application for Retail Marijuana Store
Business Name : East Rip
License Location : Kenai/10767 Kenai Spur Hwy, Suite D
License No. : 13382
Dear Ms. Heinz,
This serves to advise that the Kenai Peninsula Borough (KPB) has reviewed the above referenced
application and has no objection to the issuance of the license.
Should you have any questions, or need additional information, please don’t hesitate to let us
know.
Sincerely,
Johni Blankenship, MMC
Borough Clerk
JB/TS
Encl.
cc: bruce483@hotmail.com
145
'Vtft~ «1/t/i a Pair'~ e'tt «1/tli a Fu.t~ IJ
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary L. Bondurant, Airport Manager
June 14, 2019
Action/Approval -Special Use Permit to Alaska Air Fuel, Inc.
Alaska Air Fuel, Inc. is requesting renewal of a Special Use Permit effective July 1, 2019
through June 30 , 2020 .
The Permit is for ai rcraft loading and parking on approximately 15,000 square of the apron .
The rate is based on the table below passed by City Council at the May 18, 2016 Council
meeting .
Apron Rate Increases to Arrive at Market in 6 years
Apron Lease Rate FY15 $1.80s.f. x .08 $ 0 .144
FY2016 $ 0 .357
FY2017 $ 0.528
FY2018 $ 0.699
FY2019 $ 0.870
FY2020 $ 1 .041
FY2021 $1 .210
Alaska Air Fuel , Inc. is current on all fees owed and we have a current Certificate of Insurance.
Airport Commission reviewed the request at the June 13, 2019 Commission meeting and
recommends Council approval.
Thank you for your consideration.
Attachment
146
SPECIAL USE PERMIT -2019
The CITY OF KENAI (City) grants to ALASKA AIR FUEL, INC. (Permittee), whose
address is P.O. Box 360, Palmer, AK 99645, a Special Use Permit to conduct aeronautical
and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements
and the conditions set forth below.
1. Premises. Pennittee shall have the non-exclusive right to use 15,000 square feet as
described in the attached Exhibit A for the uses identified in this Pennit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2019 and
ending on June 30, 2020. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2019.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $1,301.25 plus applicable sales
tax .
B. Proximity Card for Gate Access: In addition to the general permit fee,
Pennittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is retumed to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Pennittee at the tennination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai , ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611 . All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of I 0% per annum, and penalty of 10% shall also be due
(KMC I. 75.010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for tennination of this Permit. (See if 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose(s):
Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 1of8 147
Aircraft Parking. NOTE: This permit does not guarantee the exclusive use of the area
identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable
notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises .
This Permit, and any access iights allowed hereunder, are for Pennittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions :
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft. aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airp01i Manager or
designated representative. The Airp01i Manager or designated rep resentative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Pem1ittee on the
Airport, that perfom1 any repairs or activities authorized under this Pennit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airp01i and any premises on the Airport.
Perrnittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Pennittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Pennit-Alaska Air Fuel , Inc. (Apron Aircraft Parking) Page 2of8 148
7. Coordination with Airport Management. Pennittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Pennittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A . Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Pem1ittee's fuel
handling activities . The policy must name the City as an additional insured.
B . Worker's compensation insurance with coverage for all employees engaged in
work under this Pe1mit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Pem1ittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently ra ted "A-" or
better by A.M . Best.
11. Permittee shall submit to the City proof of continuous insurance
coverage in the form ofinsurance policies , certificates, endorsements ,
or a combination thereof, and signed by a person authorized by t he
insurer to bind coverage on its behalf.
111. Pennittee shall request a waiver of subrogation against City from
Special Use Permit-Alaska Air Fuel , Inc. (Apron Aircraft Parking) Page 3of8 149
Pennittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2019. The effective date of the insurance shall be no later than July
1, 2019.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Pennittee anywhere on the Airpo11.
Pem1ittee shall provide all proper safeguards and shall assume all risks incmTed in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Pennit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold hannless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively refened to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Pennittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill , or the
Special Use Pennit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page4of8 150
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities .
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, coITosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Pennittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Pennittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50'
of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations'
''Standard for Aircraft Fueling Servicing" in NFP A 407 ( 1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Pennittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Pern1ittee shall confonn and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Pem1ittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Pemut on a reasonable, and not unjustly
Special Use Pennit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 5of8 151
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory , prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Pennittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Pem1it, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federa l aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Pem1it are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personalty. Pem1ittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon te1mination of this Pennit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
22. Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may te1minate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
Special Use Permit-Alaska Air Fu el, Inc. (Apron Aircraft Parking) Page 6of8 152
to a failure of Pennittee to comply with condition or term of this Pennit which failure
remains uncured after notice by City to Permittee providing Pennittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment oflanding fees and other required
Airport fees is a condition of this Pem1it and, as such, failure to timely pay landing and
other airport fees is grounds for temlination. Without limiting the foregoing, Permittee
shall pay landing fees fo r aircraft landings as set out in the City's comprehensive schedule
ofrates, charges and fees . Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airp011 Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
25. Definitions. As used in this Pem1it, "Permittee" means Alaska Air Fuel, Inc. and
where the context reasonably indicates, its officers, agents, and employees. "Airport"
means the Kenai Municipal Airport.
CITY OF KENAI
Paul Ostrander
City Manager
Date
ALASKA AIR FUEL, INC.
John Sliwinski
Vice President
Special Use Pennit-Alaska Air Fuel , Inc. (Apron Ai rcraft Parking)
Date
Page 7of8 153
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS .
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires : ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrument was acknowledged before me by John Sliwinski, Vice President, Alaska Air
Fuel, Inc., on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires: ____ _
ATTEST:
Jamie Heinz, City Clerk
SEAL:
APPROVED AS TO FORM:
Sco~Attorney
Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 8of8 154
...
Exhibit A
A laska A ir Fuel
15,000 sqft
I.
155
'llttt~ «1/th a. Po.cf~ e'tt «1/th a. ru.t~"
210 F idalgo Ave , Kenai, Alaska 99611-7794
Telephone : (907) 283-7535 I Fax: (907) 283-3014
www. kena i. city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary L. Bondurant, A irport Manager
June 14, 2019
Action/Approval -Special Use Perm it to Crowley Fuels LLC
Crowley Fuels LLC is requesting renewal of a Specia l Use Permit effectiv e July 1, 2019 th rough
June 30 , 2020 .
The Permit is for a ircraft loading and parking on approximate ly 35 ,000 square feet for aviation
fueling on apron fueling area .
The rate is based on the table below passed by City Council at the May 18, 2016 Council
meeting.
Apron Rate Increases to Arrive at Market in 6 years
Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144
FY2016 $ 0 .357
FY2017 $ 0.528
FY2018 $ 0 .699
FY2019 $ 0 .870
FY2020 $ 1.041
FY2021 $ 1 .210
Crowley Fuels LLC is current on all fees owed and we have a current Certificate of Insurance.
Airport Commission rev iewed the request at the June 13 , 2019 Co mmi ss ion meeting and
recommends Council approval.
Thank you for your consideration .
Attachment
156
SPECIAL USE PERMIT -2019
The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose
address is 201 Arctic Slope Ave., Anchorage, AK 99518, a Special Use Permit for the
fueling area on the apron at the Kenai Municipal Airport subject t o the requirements and
the conditions set f01ih below.
1. Premises. Pemuttee shall have the non-exclusive right to us e 35 ,000 square feet as
described in the attached Exhibit A for the uses identified in thi s Permit.
2. Term. The tem1 of this Pennit shall be for 1 year commencing on July l, 2019 and
ending on June 30, 2020. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2019 .
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Pennit:
A. Permit: Pennittee shall pay a monthly fee of $3,036.25 plus applicable sales
tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100 .00) for the use of each
proximity card issued to Pennittee by City to allow for gate access to the Airport to
conduct the uses pem1itted hereunder. City shall refund this deposit to Pem1ittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees fo r aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue , Kenai , AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611 . All permit fee s
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10 % shall also be due
(KMC 1.75 .010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See ~ 22, Te1mination)
4. Use. City authorizes Pennittee 's non-exclusive use of the Premises for the
following purpose(s):
Special Use Permit-Crowley (Apron Fueling Area) Page 1of8 157
Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the
exclusive use of the area identified in Exhibit A. City reserves the right to re-assign
Permittee, upon reasonable notice, to other areas as airport needs may require .
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Pennit, and any access rights allowed hereunder, are for Permittee 's use only and may
not be transferred or assigned.
Use of the Premises by Pennittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Pennittee aclmowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Pennittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Pem1it act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport .
Pennittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment) or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever) the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Permit-Crowley (Apron Fueling Area) Page 2of8 158
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated r epresent ative , and shall abide
by all reasonable decis ions and directives of the Airport M anagement regarding gen er al
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee sh all discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Pemrittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Pemrittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limi ts, City is
entitled to coverage to the extent of the higher limits .
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-fom1 contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends cov erage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under th is
Pe1mit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cov er all owned, hired, and non-
owned motor vehicles the Pemuttee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements :
i. All policies will be by a company/corporat ion currently rated "A-" or
better by A.M. Best.
11. Pennittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
Special Use Permit-Crowley (Apron Fueling Area) Page 3of8
159
111. Permittee shall request a waiver of subrogation against City from
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2019. The effective date of the insurance shall be no later than July
1, 2019.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Pennittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Pennittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or a1ising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Pem1it. This shall be a continuing obligation and
shall remain in effect after te1mination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent mateiials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Pe1mittee shall be liable for
Special Use Permit-Crowley (Apron Fueling Area) Page 4of8 160
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous matelials due to Perrnittee's use of the Apron
and/or use of the Airport.
Pennittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Pennittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropdate to Permittee's activities .
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, COITosive, reactive, or
toxic) or any hazardous substance on any pmiion of the Airpmi. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and implisonment for knowing violations.
Permittee shall immediately remove the matedal in the event of spillage or dripping of
gasoline, oil, grease, or any other mate1ial which may be unsightly or detlimental to the
pavement or surface in or on any area of the Airport.
Petmittee may not construct or install any above-ground or undergrou n d fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50'
of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFP A 407 ( 1996 version), and the current
vers ion of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Pe1mittee shall confonn and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
Special Use Permit-Crowley (Apron Fueling Area) Page 5of8 161
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Pennittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Pennit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Pennit. Fwiher, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The plivileges granted under this Pe1mit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Pennittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Pem1ittee in the conduct of its business or activities on the Premises or
e lsewhere at the Kenai Municipal Airport.
20 . No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such tem1s, conditions, or requirements.
21. Personalty. Permittee shall remove any and all personal prope1ty, including all
vehicles, from the Premises at the termination of this Pennit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Pem1it and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Pennittee or of its
customers.
22. Termination; Default. This Permit may be tem1inated by either party hereto by
giving 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
Special Use Pennit-Crowley (Apron Fueling Area) Page 6of8
162
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
ofrates, charges and fees. Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. lmpoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after tem1ination of this Petmit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Pe1111ittee . An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be cons idered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
25. Definitions. As used in this Permit, "Permittee" means Crowley Fuels LLC ., and
where the context reasonably indicates, its officers, agents, and employees. "Airport"
means the Kenai Municipal Airport.
CITY OF KENAI
Paul Ostrander
City Manager
Date
CROWLEY FUELS LLC
R. Desmond Mayo
Vice President
Special Use Pe1mit-Crowley (Apron Fueling Area)
Date
Page 7 of 8 163
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2019, the foregoing
instrument was acknowledged before me by R. Desmond Mayo, Vice President, Crowley
Fuels LLC, on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires: ____ _
ATTEST:
City Clerk
SEAL:
APPROVED AS TO FORM:
~
Scott M. Bloom, City Attorney
Special Use Permit-Crowley (Apron Fueling Area) Page 8of8 164
EXHIBIT A
Crowley
I
I EXHIBITA
165
'Vttl'~ «1/t/ft a PaJ'~ e~ «1/t/ft a Fat~ JJ
210 FidalgoAve, Kenai, Alaska 99611-7794
Telephone : (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
Mary L. Bondurant, Airport Manager
June 14, 2019
Action/Approval -Special Use Permit to Empire Airlines, Inc.
Empire Airlines, Inc. is requesting renewal of a Special Use Permit effective July 1, 2019
through June 30, 2020 .
The Permit is for aircraft parking on approximately 11,250 square feet of the apron .
The rate is based on the table below passed by City Council at the May 18, 2016 Council
meeting .
Apron Rate Increases to Arrive at Market in 6 years
Apron Lease Rate FY15 $1 .80s.f. x .08 $ 0.144
FY2016 $ 0.357
FY2017 $ 0.528
FY2018 $ 0.699
FY2019 $ 0.870
FY2020 $ 1.041
FY2021 $ 1.210
Empire Airlines , Inc. is current on all fees owed and we have a current Certificate of Insurance.
Airport Commiss ion reviewed the request at the June 13, 2019 Commission meeting and
recommends Council approval.
Thank you for your consideration .
Attachment
166
SPECIAL USE PERMIT-2019
The CITY OF KENAI (City) grants to EMPIRE AIRLINES, INC. (Permittee), whose
address is 11559 N. Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose
of aircraft parking at the Kenai Municipal Airp01i subject to the requirements and the
conditions set fo1ih below .
1. Premises. Pem1ittee shall have the non-exclusive right to use 11 ,250 square feet as
described in the attached Exhibit A for the uses identified in this Pem1it.
2. Term. The term of this Pennit shall be for I year commencing on July 1, 2019 and
ending on June 30, 2020. Regardless of the date of signature, this Pennit shall be effective as
ofJuly 1, 2019.
3. Permit Fees. Pennittee shall pay the following fees for the privi leges extended to
Pennittee under this Permit:
A. Permit; Pennittee shall pay a monthly fee of$975.93 plus applicable sales tax .
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each
proximity card issued to Pennittee by City to allow for gate access to the Airp01i to
conduct the uses permitted hereunder. City shall refund this deposit to Pennittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the te1mination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Depa1iment, 210 Fidalgo
Avenue, Kenai , AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of ten percent ( 10%) per annum, and penalty of ten percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See~ 22, Tennination)
Special Use Permit-Empire Airlines, Inc. (Parking) Page 1of8 167
4. Use. City authorizes Pem1ittee's non-exclusive use of the Premises for the
following purpose(s):
Aircraft Parking. NOTE: 17iis permit does not guarantee the exclusive use o(the area
identified in Exhibit A. City reserves the right to re-assign Permittee. upon reasonable
notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Pem1ittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Pennittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Pem1it is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perfonn services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the autholity of Pennittee on the
Airp01t, that perfom1 any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airp011 and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threaten s the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport .
Special Use Permit-Empire Airlines, Inc. (Parking) Page 2of 8 168
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Pem1it.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airpo1i Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Pem1ittee.
8. Radio Transmitting Equipment. Pe1mittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Pennittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Pe1mittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-fmm contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy mu st
include an endorsement under which the insurer extends coverage to Pe1mittee 's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Pennit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Pennittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Pennittee uses on the Airpo1i. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A.M. Best.
11. Pem1ittee shall submit to the City proof of continuous insurance
coverage in the f01m of insurance policies, certificates, endorsements,
Special Use Permit-Empire Airlines, Inc. (Parking) Page 3of8 169
or a combination thereof, and signed by a person auth01ized by the
insurer to bind coverage on its behalf.
iii. Pennittee shall request a waiver of subrogation against City from
Pem1ittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
1v. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2019. The effective date of the insurance shall be no later than July
1, 2019.
City may increase the anJount or revise the type of required insurance on written demand
without requiring an1endments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence ofinsurance coverage that meets the requ irements of the City.
IO. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Pennittee and City for the activities of Permittee, its personnel , employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Pennittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
I I. Indemnity, Defend, and Hold Harmless Agreement. Pennittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses ,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incutTed by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Pennit.
Special Use Permit-Empire Airlines, Inc. (Parking) Page 4 of 8 170
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills . The City requires that
Pennittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Perrnittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Pe1mittee's use of the Apron
and/ or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Pem1ittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Perrnittee's fuel dispensing
equipment at all times. Pennittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Pemuttee's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, co1rosive, reactive, or
toxic) or any hazardous substance on any p011ion of the Airp01i. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false infom1ation regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Pennittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within
fifty feet (50') of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airp01is, the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current
version of the Internati onal Fire Codes . All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Pennittee shall conform and be subject to
the requirements of 14 CFR § 139 .321 regarding the handling and storage of hazardous
substances and materials.
Special Use Pennit-Empire Airlines, Inc. (Parking) Page 5of8
171
14. No Discrimination. Pennittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Pennit.
Pem1ittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Pennittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Pennit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Pennittee's activities
conducted under this Pem1it, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the tem1 of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for pa1iicipation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Pennittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or refe1Ted to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personalty. Pennittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Pennit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
Special Use Pennit-Empire Airlines, Inc. (Parking) Page 6of8
172
22. Termination; Default. This Permit may be tenninated by either party hereto by
giving thirty (30) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days, to protect public health
and safety or due to a failure of Pemlittee to comp ly with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Pennittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
ofrates, charges and fees. Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Pennittee shall also
provide Airport Administration with monthly certified gross tak e-off weight reports within
ten (I 0) days following the end of each month for landing s for the preceding month.
Airport landing fees shall be paid at the Airport Administration Building, 305 North
Willow Street, Suite 200, Kenai, AK 99611.
24. lmpoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after tennination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Perrnittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded . Any impounded aircraft that is not redeemed within ninety
(90) days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thirty (30) days nor less than seven (7) days before the
time of the auction.
25. Definitions. As used in this Permit, "Pem1ittee" means Empire Airlines, Inc. and
where the context reasonably indicates, its officers, agents, and employees. "Airport"
means the Kenai Municipal Airport.
Special Use Permit-Empire Airlines, Inc. (Parking) Page 7of8 173
CITY OF KENAI
Paul Ostrander
City Manager
Date
EMPIRE AIRLINES, INC.
Randy Lanfell Date
Director of Flight Operations
ACKNOWLEDGMENTS
ST A TE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrnment was acknowledged before me by PAUL OSTRANDER, City Manager, of the
City of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
ST ATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrnment was acknowledged before me by RANDY LANFELL, Director of Flight
Operations, Empire Airlines, Inc., on behalf of the State of Alaska.
Approved as to Fom1:
~
Scott Bloom
City Attorney
Notary Public for Alaska
My Conunission Expires: ____ _
Special Use Pennit-Empire Airlines, Inc. (Parking) Page 8of8 174
Empire
Special Use Permit
2A1
FedEx
7
3
7A-1
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3A-1
EXHfBJT A 175
''VIiiar «1/t!rt a PaJ'~ tt~ «1/t!rt a Fu.tan "
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary L. Bondurant, Airport Manager
June 14, 2019
Action/Approval -Special Use Permit to Everts Air Fuel, Inc.
Everts Air Fuel, Inc. is requesting renewal of a Special Use Permit effective July 1, 2019 through
June 30, 2020 .
The Permit is for aircraft loading and parking on approximately 30,000 square feet on the apron .
The rate is based on the table below passed by City Council at the May 18, 2016 Council
meeting .
Apron Rate Increases to Arrive at Market in 6 years
Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144
FY2016 $ 0 .357
FY2017 $ 0 .528
FY2018 $ 0 .699
FY2019 $ 0 .870
FY2020 $ 1.041
FY2021 $ 1.210
Everts Air Fuel, Inc. is current on all fees owed and we have a current Certificate of Insurance .
Airport Commission reviewed the request at the June 13, 2019 Commission meeting and
recommends Council approval.
Thank you for your consideration.
Attachment
176
SPECIAL USE PERMIT -2019
The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose
address is P.O. Box 60908, Fairbanks, AK 99706, a Special Use Permit to conduct
aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the
requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The te1m of this Permit shall be for 1 year commencing on July 1, 2019 and
ending on June 30, 2020. Regardless of the date of signature, this Pennit shall be effective as
of July 1, 2019 .
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Pennittee under this Permit:
A. Permit: Pennittee shall pay a monthly fee of $2,602.50 plus applicable sales
tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Pennittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses pennitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City . City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Pennittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai , ATTN: Finance Department, 210 Fidalgo
A venue, Kenai, AK 99611 and a comtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611 . All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of I 0% shall also be due
(KMC 1. 75.010). Interest shall accrne from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See ii 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use o f the Premises for the
following purpose(s):
Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Lo ading & Parking) Page 1of8
177
Aircraft Loading and Parking. NOTE: This permit does not gu,arantee the exclusive use
of the area identified in Exhibit A. City resen)es the right to re -assign Permittee, upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transfeITed or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governjng the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Pennit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller. or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Pennittee on the
Airport, that perform any repairs or activities authorized under this Pem1it act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airpmi and any premises on the Airport.
Pem1ittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Pe1mittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Pennit-Eve11s Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2of8 178
7 . Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airpo1i Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Pennittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Pemrittee. Where specific limits are stated, the liinits are the
minimum acceptable limits. If Perm.ittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Pe1111it or at the Premises as required by AS 23.30.045. Pennittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Pennit.
C . Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation cun-ently rated "A-" or
better by A.M. Best.
IL Permittee shall submit to the City proof of continuous insurance
coverage in the fonn of insurance policies, ce11ificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
m. Pennittee shall request a waiver of subrogation against City from
Special Use Pennit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 3of8 179
Pennittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days b efore any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2019. The effective date of the insurance shall be no later than July
1, 2019.
City may increase the amount or rev ise the type of required insurance on w1itten demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Pennittee, i ts personnel , employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Pennittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airpmi and its exercise of the pri vi leges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties , and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Pennittee in connection with or arising from or out of Pem1ittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Pem1it. T his shall be a continuing obligation and
shall remain in effect after te11nination of this Pennit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent mate1ials and tools available on the Premises and at the
airp01i in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4of8
180
discharge of petroleum products or hazardous materials due to Pennittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Pem1ittee's fuel dispensing
equipment at all times. Permittee must comply with the Airpo1i's Sto1111 Water Pollution
Prevention Plan as appropriate to Permittee's activities.
Permittee shall not store any personal property, solid waste, petroleum products , Hazardous
Material as defined by 14 CFR § 171 .8 , hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any pmiion of the Airpo1i. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Pen11ittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within 50 '
of any aircraft fue l facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, th e National F ire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFPA 407 ( 1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Pennit.
Pem1ittee will furnish services provided under this Pem1it on a reasonable, and not unjustly
Special Use Pe1mit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 5of8 181
discriminat01y, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Pem1ittee shall obtain and maintain all required federal ,
state, and lo cal licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Pem1ittee's activities
conducted under this Pennit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the tenn of this Permit. Fmiher, Pem1ittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Pem1it is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Pe1mit are not exclusive to
Pennittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Pennittee in the conduct of its business o r activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or refeITed to , shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personalty. Pem1ittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Pem1it (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Pennit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Permittee or of its
customers .
22. Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other paiiy. City may tenninate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
Special Use Pennit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6of8 182
to a failure of Pennittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Pennittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Pemlittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
ofrates, charges and fees. Pennittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airp01t Administration Building, 305 N orth Willow Street, Suite
200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after tennination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Pem1ittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
25. Definitions. As used in this Pennit, "Permittee" means Everts Air Fuel, Inc. and
where the context reasonably indicates, its officers, agents, and employees. "Airport"
means the Kenai Municipal Airport.
CITY OF KENAI
Paul Ostrander
City Manager
Date
EVERTS AIR FUEL, INC.
Dave Miller
President
Special Use Pem1it-Everts Air Fuel, Inc. (Ramp Aircraft Load ing & Parking)
Date
Page 7of8 183
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2019, the foregoing
instrument was acknowledged before me by Dave Miller, President, Everts Air Fuel, Inc .,
on behalf of the State of Alaska .
Notary Public for Alaska
My Commission Expires: ____ _
ATTEST:
Jamie Heinz, City Clerk
SEAL:
APPROVED A~ FORM:
~
Scott M. Bloom, City Attorney
Specia l Use Perrnit-Eve1is Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 8of8 184
Everts Air Fuel
30,000 sqft
---
EXHIBIT A
I
I EXH!BITA
185
'Vttf~ «1/t~ a Pa&'~ Ot'tj «1/t~ a rat~"
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone : (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary L. Bondurant, Airport Manager
June 14, 2019
Action/Approval -Special Use Permit to UPSCO
UPSCO United Parcel Service Co ., Inc. is requesting renewal of a Special Use Permit effective
July 1, 2019 through June 30, 2020 .
The Permit is for aircraft loading and parking on approximately 4,000 square feet on the apron.
The rate is based on the table below passed by City Council at the May 18, 2016 Council
meeting.
Apron Rate Increases to Arrive at Market in 6 years
Apron Lease Rate FY15 $1 .80s.f. x .08 $ 0.144
FY2016 $ 0 .357
FY2017 $ 0.528
FY2018 $ 0.699
FY2019 $ 0 .870
FY2020 $ 1.041
FY2021 $1.210
UPSCO United Parcel Service Co., Inc. is current on all fees owed and we have a current
Certificate of Insurance.
Airport Commission reviewed the request at the June 13, 2019 Commission meeting and
recommends Council approval.
Thank you for your consideration .
Attachment
186
SPECIAL USE PERMIT 2019
The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc. (Pennittee),
whose address is 6200 Lockheed Ave., Anchorage, AK 99502, a Special Use Permit to
conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport
subject to the requirements and the conditions set forth below.
1. Premises. Pennittee shall have the non-exclusive right to use 4,000 square feet as
described in the attached Exhibit A for the uses identified in this Pem1it.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2019 and
ending on June 30, 2020. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2019.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Pennittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of$347.00 plus applicable sales tax.
B. Proximity Card for Gate Access : In addition to the general pennit fee,
Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card i s returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Pennittee at the tennination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate often percent (10%) per annum, and penalty often percent
( 10%) shall also be due (KM C 1. 75.01 0). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See~ 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose(s):
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 1 of 8
187
Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use
o( the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon
reasonable notice. to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Pennittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Pennittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft. aircraft engine, propeller, or apparatus in an area of the
Airp01i other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations . Pem1ittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perfo1m any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airpo1i and any premises on the Airport.
Pe1mittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of thi s provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environn1ent, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Pe1mittee under this Pennit.
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 2of8
188
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Pennittee.
8. Radio Transmitting Equipment. Pennittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Perrnittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Perrnittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23 .30 .045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Pem1it.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occmrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
1. All policies will be by a company/corporation currently rated "A-" or
better by A.M. Best.
ii. Pem1ittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ni. Permittee shall request a waiver of subrogation against City from
Special U s e Pe1mit-UPSCO (Aircraft Loading & Parking) Page 3of 8
189
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2019. The effective date of the insurance shall be no later than July
I, 2019.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Pennittee and City for the activities of Pennittee, its personnel, employees, and
persons acting on behalf of or under the auth01ity of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incun-ed in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold ham1less, the City of Kenai, its officers, agents, employees,
and volunteers :from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incun-ed by the City's staff attorneys and outside attorneys and any fees
and expenses incun-ed in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Pern1ittee's
exercise of the p1ivileges granted in this Pe1mit. This shall be a continuing obligation and
shall remain in effect after tennination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Pe1mittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and respon se capability. Pennittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 4of8 190
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times . Permittee must comply with the Airport's St01m Water Pollution
Prevention Plan as appropriate to Pemlittee's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations .
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil , grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within
fifty feet (50') of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular I 50/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 13 9 .321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination . Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Pe1mittee recognizes
the right of City to take any action necessary to enforce this re quirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 5of8 191
disciiminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provi ded at the Airport.
15. Licenses and Permits. Pennittee shall obtain and m aintain all required federal,
state , and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the Cit y.
16. Compliance with Law/Grant Assurances. This Pe1mit , and Permittee 's activit ies
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Pennittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or priv ilege on the Airport.
18. Assignment. The privileges granted under this Pe1mit are personal to Pennittee and
may not be assigned by Pem1ittee .
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its busines s or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions ,
and requirements herein contained, or refen-ed to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21 . Personalty. Pem1ittee shall remove any and all pers onal property, including all
vehicles , from the Premises at the tennination of this Pe1mit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/o r
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personalty of Pennittee or of its
customers.
22. Termination; Default. This Pennit may be terminated by either party hereto by
giving thirty (30) days advance written notice to the other pa1iy. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days, to protect public health
Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 6of 8 192
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for tem1ination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Permittee shall also
provide Airport Administration with monthly certified gross take-off weight reports within
ten ( 10) days following the end of each month for landings for the preceding month .
Airport landing fees shall be paid at the Airport Administration Building, 305 North
Willow Street, Suite 200, Kenai, AK 99611 .
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the mov ing of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Pemlittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety
(90) days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published . Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thiliy (30) days nor less than seven (7) days before the
time of the auction.
25. Definitions. As used in this Pe1mit, "Permittee" means UPSCO, United Parcel
Service Co ., Inc. and where the context reasonably indicates, its officers, agents , and
employees. "Airport" means the Kenai Municipal Airport.
CITY OF KENAI
Paul Ostrander
City Manager
Date
UPS CO
Robe1i Vey Date
Extended Centers Manager
Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 7 of 8 193
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on thls __ day of 2019, the foregoing
instrument was acknowledged before me by PAUL OSTRANDER, City Manage r, of the
City of Kenai, an Alaska municipal corpo ration, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on thls __ day of , 2019, the foregoing
instrument was acknowledged before me by Robert Vey, the Extended Centers Manager,
on behalf of UPSCO , United Parcel Service Co ., Inc.
Approved as to F01m :
-~
Scott Bloom
City Attorney
Notary Public for Alaska
My Commission Expires: ____ _
Special Use Permi t-UPSCO (A ircraft Loadi ng & Park ing) Page 8of 8 194
195
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: June 11, 2019
SUBJECT: Action Approval for Weaver Brothers Alaska, Inc. – Special Use Permit
for Truck and Vehicle Storage
____________________________________________________________________________
Weaver Brothers, Inc. has requested to use three adjacent City-owned parcels along Coral Street
for storage of trucks and semi-trailers for one-year from June 20, 2019 to June 20, 2020. This
would be similar to the use of two parcels under a five-year lease from the City by Weaver
Brothers for truck storage and would allow for a temporary expansion of their business. Exhibit A
shows the location of the three adjacent parcels requested for a special use permit and the two
parcels currently under lease with the City.
The three adjacent parcels total 67,083 square feet of City property. The Coral Street Airport Zone
of the City was appraised at a rate of $0.50 per square foot. The permit fee would be $2,683.32
for all three lots based on $0.50 per square foot, 67,083 total square feet to be used, and an eight
percent (8%) annual rate. If City Council approves, City Administration would execute the special
use permit attached to this memorandum.
Thank you for your consideration.
196
Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 1 of 7
SPECIAL USE PERMIT
The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below,
hereby grants to JAMES H. DOYLE, INDIVIDUALLY, D/B/A WEAVER BROTHERS, INC.
(PERMITTEE), whose address is P.O. Box 582, Kenai Alaska 99611, the non-exclusive right to
use 67,083 square feet of area as described below:
T5N R11W SEC 5 SEWARD MERIDIAN KN 0860076 GUSTY SUB NO 4 LOT 1 BLK 3;
and,
T5N R11W SEC 5 SEWARD MERIDIAN KN 0860076 GUSTY SUB NO 4 LOT 2 BLK 3;
and,
T5N R11W SEC 5 SEWARD MERIDIAN KN 0860076 GUSTY SUB NO 4 LOT 3 BLK 3;
and as further shown in the attached Exhibit A.
1. TERM. This special use permit shall be for 12 months from June 20, 2019 to June 20,
2020.
2. CANCELLATION. Pursuant to requirements of the Federal Aviation Administration, the
City reserves the right to cancel this special use permit on 90-days’ notice, either delivered
in person to the Permittee or by mail. Any or all personal property shall be removed at
Permittee’s expense upon cancellation or termination of this agreement.
3. PERMIT FEES. The Permittee shall be charged a permit fee of $2,683.32 plus applicable
sales tax.
The Permittee shall not use the parcels until the paying the City the permit fee.
Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and
delivered to the City Hall, 210 Fidalgo Avenue, Kenai, Alaska 99611.
In addition to the permit fee specified above, the Permittee agrees to pay to the appropriate parties
all levies, assessments, and charges as hereinafter provided:
A. Sales tax nor enforced, or levied in the future, computed upon the permit fee
payable in monthly installments whether said fee is paid on a monthly or yearly
basis;
B. All necessary licenses and permits; all lawful taxes and assessments which, during
the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or by any other tax levying body, upon any taxable possessory right
which Permittee may have in or to the Premises by reason of its use or occupancy
or by reason of the terms of this Permit, provided however, that nothing herein
contained shall prevent Permittee from contesting any increase in such tax or
assessment through procedures provided by law.
197
Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 2 of 7
C. Interest at the rate of eight percent (8%) per annum and penalties of ten percent
(10%) of any amount of money owed under this Special Use Permit which are not
paid on or before the due date.
D. Costs and expenses incident to this Special Use Permit, including but not limited
to recording costs.
4. USE. The use by the Permittee of the Premises is limited to the purpose of Truck and
Trailer Storage. This use is subject to City, Borough, and State laws and regulations and
the reasonable administrative actions of the City for the protection and maintenance of the
Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject
to the following conditions:
A. Permittee shall use the Premises only for truck and trailer storage.
B. Trucks and trailers must be stored in a manner that will not limit sight lines or create
other unsafe driving conditions on adjacent right-of -ways.
C. The premises shall be returned to its current condition prior to the end of the term
of this Special Use Permit. This shall include the removal of any trash or debris.
D. Trucks and trailers must be stored in a manner that will not impact any City snow
clearing or moving activities.
E. Trucks and trailers shall be stored such that there will not be oil or other hazardous
fluids leaking onto the premises.
F. The premises shall not be used to store junked vehicles or other salvaged vehicle
or trailer parts.
5. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee’s insurance policy contains higher limits, the City
is entitled to coverage to the extent of the higher limits.
A. Garage Liability or Commercial General Liability Insurance, including Premises, all
operations, property damage, personal injury and death, broad-form contractual,
with a per-occurrence limit of not less than $1,000,000 combined single limit. The
policy must name the City as an additional insured.
B. Worker’s Compensation Insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide Worker’s Compensation Insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined single
limit per occurrence. This insurance must cover all owned, hired, and non-owned
198
Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 3 of 7
motor vehicles the Permittee uses for snow moving and storage activities to, from,
or on the Premises. The policy must name the City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or better
by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance coverage
in the form of insurance policies, certificates, endorsements, or a
combination thereof, and signed by a person authorized by the insurer to
bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible, shall be
provided at no cost to City.
iv. Provide the City with notification at least 30 days before any termination,
cancellation, or material change in insurance coverage of any policy
required hereunder.
v. Evidence of insurance coverage must be submitted to City by January 17,
2019. The effective date of the insurance shall be no later than January 17,
2019.
vi. This insurance shall be primary and exclusive of any other insurance
carried by the City of Kenai. This insurance shall be without limitation on
the time within which the resulting loss, damage, or injury is actually
sustained.
6. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. The Permittee shall
fully indemnify, hold harmless, and defend the City of Kenai, its officers, agents,
employees, and volunteers at its own expense from and against any and all actions,
damages, costs, liability, claims, losses, judgments, penalties, including reasonable
Attorney’s fees of or for liability for any wrongful or negligent acts, errors, or omissions of
the Permittee, its officers, agents or employees, or any subcontractor under this Permit.
The Permittee shall not be required to defend or indemnify the City for any claims of or
liability for any wrongful or negligent act, error, or omission solely due to the independent
negligence of the City. If there is a claim of or liability for the joint negligence of the
Permittee and the independent negligence of the City, the indemnif ication and hold
harmless obligation shall be apportioned on a comparative fault basis. Apportionment shall
be established upon final determination of the percentage of fault. If any such
determination is by settlement, the percentage of fault attributed to each party for purposes
of this indemnification provision shall only be binding upon the parties included in the
settlement agreement. “Permittee” and “City” as used in this article include the employees,
agents, officers, directors, and other contractors who are directly responsible, respectively,
for each party. The term “independent negligence of the City” is negligence other than in
the City’s selection, administration, monitoring, or controlling of the Permittee.
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7. PERMITTEE’S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not
permit any liens, including mechanic’s, laborer’s, construction, supplier’s, mining, or any
other liens obtainable or available under existing law, to stand against the Premises or
improvements on the Premises for any labor or material furnished to Permittee or to any
related entity or claimed entity. The Permittee shall have the right to provide a bond as
contemplated by State of Alaska law and contest the validity or amount of any such lien
or claimed lien. Upon the final determination of the lien or claim for lien, the Permittee will
immediately pay any judgment rendered with all proper costs and charges and shall have
such lien released or judgment satisfied at Permittee’s own expense.
8. PERSONALTY. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit. Personal property placed or
used upon the Premises and not removed upon termination of this Permit will be removed
and/or impounded by the City. Property removed or impounded by the City may be
redeemed by the owner thereof only upon the payment to the City of the costs of removal
plus a storage fee of $25 per day. The City of Kenai is not responsible for any damage to
or theft of any personalty of Permittee or its customers.
9. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions,
and/or any requirement herein contained, or referred to, shall not constitute or be
construed as a waiver or relinquishment of the right to exercise such terms, conditions, or
requirements.
10. TERMINATION, DEFAULT. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. The City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety. The
City may also terminate this Permit immediately, or upon notice shorter than 30 days, due
to a failure of Permittee to comply with conditions and terms of this Permit, which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period to correct the violation or breach.
11. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or
State law. Permittee recognizes the right of the City to take any action necessary to
enforce this requirement.
12. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole any part of
this Permit, the Premises, or any improvement on the Premises without the written consent
of the City. Unless the City specifically releases the Permittee in writing, the City may hold
the Permittee responsible for performing any obligation under this permit which an
assignee fails to perform.
13. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume
all risks incurred in its activities on the Premises and its exercise of the privileges granted
in this Permit.
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Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 5 of 7
14. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises.
15. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this
Permit shall survive the cancellation, termination, or expiration of this Permit.
16. AUTHORITY. By signing this Permit, Permittee represents that is has read this
agreements and consents to be bound by the terms and conditions herein and that the
person signing this Permit is duly authorized by the business to bind the business
hereunder.
WEAVER BROTHERS, INC. CITY OF KENAI
By:____________________________ By:_______________________________
James H. Doyle Date: Paul Ostrander Date:
President City Manager
By:____________________________
James H. Doyle Date:
Individually
201
Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 6 of 7
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2019, the foregoing instrument was
acknowledged before me by Paul Ostrander, City Manager of the City of Kenai, Alaska, an Alaska
home rule municipality, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2019, the foregoing instrument was
acknowledged before me by James H. Doyle, President of Weaver Brothers, Inc., an Alaska
limited liability company, on behalf of the company.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2019, the foregoing instrument was
acknowledged before me by James H. Doyle.
Notary Public for Alaska
My Commission Expires:
202
Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 7 of 7
ATTEST:
Jamie Heinz, CMC, City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
203
CORAL STC
O
H
O
E A
V
E
.90 '
Date: 6 /1 1/20 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 104 feet
Weaver Brothers, Inc.Special Use Permit MapExhibit A
04327032
04327031
04327030
04327021
04327035
Legend
Existing Lease
Requested for Special Use Permit
204
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: June 11, 2019
SUBJECT: Action Approval for Alaska Salmon Fertilizer, LLC – Special Use Permit
for Fillet Services to Collect Fish Cleaning Waste
____________________________________________________________________________
Alaska Salmon Fertilizer has requested to use approximately 300 square-feet of City-owned
property near the bathrooms off of Kenai Avenue on North Beach as shown in the attached Exhibit
A. Customers would pay for their fish to be filleted and Alaska Salmon Fertilizer would collect the
fish waste. Alaska Salmon Fertilizer would collect all fish waste and would not dump any waste
or water on site.
The fee for their special use permit is proposed to be pro-rated to the exact number of days Alaska
Salmon Fertilizer uses the space in July 2019 following the rates charged for overnight parking
on North Beach. This would be $55 for the first day and $45 for each subsequent day for overnight
use and $20 per day for day use (not leaving equipment overnight). Alaska Salmon Fertilizer
expects to use the space for a total of nine days broken into three time periods of three-days each
during July 2019, but the permit would allow for a pro-rated rate to give some flexibility in the exact
number of days the space would be used. If City Council approves, City Administration would
execute the special use permit attached to this memorandum. Thank you for your consideration.
205
Special Use Permit – Alaska Salmon Fertilizer – 2019 Fillet Services Page 1 of 7
to Collect Fish Cleaning Waste
SPECIAL USE PERMIT
The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below,
hereby grants to ALASKA SALMON FERTILIZER, LLC (PERMITTEE) the non-exclusive right to
use 300 square feet of area as described below:
T 5N R 11W SEC 5 SEWARD MERIDIAN KN 0002970 ORIGINAL TOWNSITE OF KENAI
LOT 3 BLK 13
and as further shown in the attached Exhibit A.
1. TERM. This special use permit shall be for the month of July 2019.
2. PERMIT FEES. The Permittee shall be charged a pro-rated rate to follow the structure
for parking at North Beach, plus applicable sales tax. Those rates are $55 for the first day
of overnight use, $45 for subsequent days of overnight use, and $20 for day use (5:00
a.m. - midnight) per calendar day.
Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and
delivered to the City Hall, 210 Fidalgo Avenue, Kenai, Alaska 99611.
In addition to the permit fee specified above, the Permittee agrees to pay to the appropriate parties
all levies, assessments, and charges as hereinafter provided:
A. Sales tax nor enforced, or levied in the future, computed upon the permit fee
payable in monthly installments whether said fee is paid on a monthly or yearly
basis;
B. All necessary licenses and permits; all lawful taxes and assessments which, during
the term hereof may become a lien upon or which may be levied by the State,
Borough, City, or by any other tax levying body, upon any taxable possessory right
which Permittee may have in or to the Premises by reason of its use or occupancy
or by reason of the terms of this Permit, provided however, that nothing herein
contained shall prevent Permittee from contesting any increase in such tax or
assessment through procedures provided by law.
C. Interest at the rate of eight percent (8%) per annum and penalties of ten percent
(10%) of any amount of money owed under this Special Use Permit which are not
paid on or before the due date.
D. Costs and expenses incident to this Special Use Permit, including but not limited
to recording costs.
3. USE. The use by the Permittee of the Premises is limited to the purpose of Fillet Services
to Collect Fish Cleaning Waste. This use is subject to City, Borough, and State laws and
regulations and the reasonable administrative actions of the City for the protection and
206
Special Use Permit – Alaska Salmon Fertilizer – 2019 Fillet Services Page 2 of 7
to Collect Fish Cleaning Waste
maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of
the Premises is subject to the following conditions:
A. Permittee shall use the Premises only for fillet services to collect fish cleaning
waste.
B. Permittee is responsible for the logistics of getting private vehicles of staff to the
area.
C. The premises shall be returned to its current condition prior to the end of the term
of this Special Use Permit. This shall include the removal of any trash or debris.
D. Permittee will not dump fish waste on-site.
E. Permittee will stay off adjacent sensitive dune and stream habitat areas.
4. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee’s insurance policy contains higher limits, the City
is entitled to coverage to the extent of the higher limits.
A. Garage Liability or Commercial General Liability Insurance, including Premises, all
operations, property damage, personal injury and death, broad-form contractual,
with a per-occurrence limit of not less than $1,000,000 combined single limit. The
policy must name the City as an additional insured.
B. Worker’s Compensation Insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide Worker’s Compensation Insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined single
limit per occurrence. This insurance must cover all owned, hired, and non-owned
motor vehicles the Permittee uses for snow moving and storage activities to, from,
or on the Premises. The policy must name the City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or better
by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance coverage
in the form of insurance policies, certificates, endorsements, or a
combination thereof, and signed by a person authorized by the insurer to
bind coverage on its behalf.
207
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to Collect Fish Cleaning Waste
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible, shall be
provided at no cost to City.
iv. Provide the City with notification at least 30 days before any termination,
cancellation, or material change in insurance coverage of any policy
required hereunder.
v. Evidence of insurance coverage must be submitted to City by January 17,
2019. The effective date of the insurance shall be no later than January 17,
2019.
vi. This insurance shall be primary and exclusive of any other insurance
carried by the City of Kenai. This insurance shall be without limitation on
the time within which the resulting loss, damage, or injury is actually
sustained.
5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. The Permittee shall
fully indemnify, hold harmless, and defend the City of Kenai, its officers, agents,
employees, and volunteers at its own expense from and against any and all actions,
damages, costs, liability, claims, losses, judgments, penalties, including reasonable
Attorney’s fees of or for liability for any wrongful or negligent acts, errors, or omissions of
the Permittee, its officers, agents or employees, or any subcontractor under this Permit.
The Permittee shall not be required to defend or indemnify the City for any claims of or
liability for any wrongful or negligent act, error, or omission solely due to the independent
negligence of the City. If there is a claim of or liability for the joint negligence of the
Permittee and the independent negligence of the City, the indemnification and hold
harmless obligation shall be apportioned on a comparative fault basis. Apportionment shall
be established upon final determination of the percentage of fault. If any such
determination is by settlement, the percentage of fault attributed to each party for purposes
of this indemnification provision shall only be binding upon the parties included in the
settlement agreement. “Permittee” and “City” as used in this article include the employees,
agents, officers, directors, and other contractors who are directly responsible, respectively,
for each party. The term “independent negligence of the City” is negligence other than in
the City’s selection, administration, monitoring, or controlling of the Permittee.
6. PERMITTEE’S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not
permit any liens, including mechanic’s, laborer’s, construction, supplier’s, mining, or any
other liens obtainable or available under existing law, to stand against the Premises or
improvements on the Premises for any labor or material furnished to Permittee or to any
related entity or claimed entity. The Permittee shall have the right to provide a bond as
contemplated by State of Alaska law and contest the validity or amount of any such lien
or claimed lien. Upon the final determination of the lien or claim for lien, the Permittee will
immediately pay any judgment rendered with all proper costs and charges and shall have
such lien released or judgment satisfied at Permittee’s own expense.
7. PERSONALTY. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit. Personal property placed or
208
Special Use Permit – Alaska Salmon Fertilizer – 2019 Fillet Services Page 4 of 7
to Collect Fish Cleaning Waste
used upon the Premises and not removed upon termination of this Permit will be removed
and/or impounded by the City. Property removed or impounded by the City may be
redeemed by the owner thereof only upon the payment to the City of the costs of removal
plus a storage fee of $25 per day. The City of Kenai is not responsible for any damage to
or theft of any personalty of Permittee or its customers.
8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions,
and/or any requirement herein contained, or referred to, shall not constitute or be
construed as a waiver or relinquishment of the right to exercise such terms, conditions, or
requirements.
9. TERMINATION, DEFAULT. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. The City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety. The
City may also terminate this Permit immediately, or upon notice shorter than 30 days, due
to a failure of Permittee to comply with conditions and terms of this Permit, which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period to correct the violation or breach.
10. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or
State law. Permittee recognizes the right of the City to take any action necessary to
enforce this requirement.
11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole any part of
this Permit, the Premises, or any improvement on the Premises without the written consent
of the City. Unless the City specifically releases the Permittee in writing, the City may hold
the Permittee responsible for performing any obligation under this permit which an
assignee fails to perform.
12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume
all risks incurred in its activities on the Premises and its exercise of the privileges granted
in this Permit.
13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises.
14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this
Permit shall survive the cancellation, termination, or expiration of this Permit.
15. AUTHORITY. By signing this Permit, Permittee represents that is has read this
agreements and consents to be bound by the terms and conditions herein and that the
person signing this Permit is duly authorized by the business to bind the business
hereunder.
209
Special Use Permit – Alaska Salmon Fertilizer – 2019 Fillet Services Page 5 of 7
to Collect Fish Cleaning Waste
CITY OF KENAI ALASKA SALMON FERTILIZER, LLC
By:____________________________ By:_______________________________
Paul Ostrander Date: Ryan Bacon Date:
City Manager Owner
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to Collect Fish Cleaning Waste
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2019, the foregoing instrument was
acknowledged before me by Paul Ostrander, City Manager of the City of Kenai, Alaska, an Alaska
home rule municipality, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2019, the foregoing instrument was
acknowledged before me by Ryan Bacon, Alaska Salmon Fertilizer, LLC, an Alaska limited
liability company, on behalf of the company.
Notary Public for Alaska
My Commission Expires:
ATTEST:
Jamie Heinz, CMC, City Clerk
SEAL:
211
Special Use Permit – Alaska Salmon Fertilizer – 2019 Fillet Services Page 7 of 7
to Collect Fish Cleaning Waste
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
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KENAI MUNICIPAL RESERVE NO. 1
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KENAI AVE
LAND ST.
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Date: 6 /1 1/20 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 103 feet
Alas ka SalmonFertilizer SUP
Ex hibit A
213
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / Fax: 907-283-3014
www.kenai.city
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM : Jamie Heinz, City Clerk
DATE: June 14, 2019
SUBJECT: Borough Planning Commission Recommendation
______________________________________________________________________
Ms. Diane Fikes has represented the City of Kenai on the Kenai Peninsula Borough
Planning Commission since June 2017 and her term expires on July 31, 2019.
It is appropriate to provide a recommendation to the Borough Mayor from the City Council
to be considered for appointment. We have received an application expressing interest
for recommendation to the Borough from Diane Fikes.
One or more candidates may be nominated and confirmed to be included in the list of
recommendations to be submitted to Mayor Pierce for appointment to the Borough
Planning Commission.
Your consideration is appreciated.
Attachments
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215
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: June 13, 2019
SUBJECT: Discussion Item – Land Sale and Leasing Policies and Practices
____________________________________________________________________________
The purpose of this memo is to provide the attached information related to the City’s Land Sale
and Leasing Policies and Practices.
At the City Council Work Session on June 11, Administration provided a 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.
As part of the presentation, Administration provided a proposed timeline for draft revisions to Title
22 and 21.15, which included review by the Airport Commission and Planning and Zoning
Commission.
Your consideration is appreciated.
216
LAND SALE
AND LEASING
POLICIES AND
PRACTICES
Land Sale and Leasing
Policies and Practices
Working Group:
City Manager Paul Ostrander
Assistant to City Manager Christine Cunningham
Finance Director Terry Eubank
Airport Manager Mary Bondurant
City Planner Elizabeth Appleby
City Attorney Scott Bloom June 11, 2019
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TABLE OF CONTENTS
Introduction …………………………………………………….……….. p. 2
Background …………………………………………………………..…. p. 3
Where We Are …………………………………………………….……. p. 5
Objectives ………………………………………………………….……. p. 6
Recommendations ……………………………………………….……. p. 7
Action Plan …………………………………………………….….……. p. 17
Timeline …………………………………………………………….…... p. 17
Appendix …………………………………………………….…..……... p. 18
Draft Land Management Plan
Draft KMC Revisions Title 22
Cover Photo Credit: Eagle Eye Gallery
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INTRODUCTION
One of the City’s greatest assets is its land inventory. Utilizing City lands to spur economic growth
and improve the quality of life for Kenai residents is key to the long-term viability of the City. Major
initiatives for the upcoming year include creating an environment to attract businesses and
industries that are necessary to maintain and grow the local economy and continuing work
towards a Land Management Plan, which includes an inventory of all City-owned lands.
A working group of City staff involved in land management met over the past two years to evaluate
and develop recommendations related to City-owned lands. In 2018, the group focused on
proposals to simplify and streamline the City’s lease program on the Airport to encourage growth,
development, and a thriving business community through reasonable and responsible land
policies and practices. The initial recommendations included a City-wide Land Management Plan,
Kenai Municipal Code revisions for Airport Reserve properties, updates to forms and procedures,
and affirmative marketing of Airport Lands.
The following recommendations expand on the previous Airport Reserve recommendations to
include all City-owned properties both on and off the Airport as part of the City’s Land
Management Plan.
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BACKGROUND
In 1963, the FAA transferred ownership of nearly 2,000 acres
of land to the City of Kenai. Most of the property is located in
the core business area of Kenai surrounding the Kenai Airport,
and the sale of some of these lands formed the basis for
economic development in Kenai. The 1963 deed requires the
land be managed for airport activities and support of the Airport
and requires the written consent of the FAA to sell or lease
land for non-airport activities. Subsequent deeds of release
have been obtained, allowing some properties to be leased or
sold.
The City has also received title to lands over the years from
the State of Alaska and Bureau of Land Management as well
as through Kenai Peninsula Borough foreclosures or private
donations. Many of the conveyance documents contain
restrictions, reversionary clauses, or are otherwise restricted
by ordinances setting the land aside for a public purpose.
However, the land deeded to the City by the FAA has been the
focus of most of the City’s lands policy decisions.
In 1975, the City first defined rules and regulations governing
the administration of City-owned lands. In 1978, a provision for
a 50% lease cap was enacted to provide reasonable
assurance of stability in future lease rates to investors, and
developers, which would encourage leasing.
In 1981, the City began to actively dispose of lands and
enacted ordinances to encourage and streamline disposal.
When applicable, lessees were encouraged to purchase their
leased land. With the City entering into a program of land
sales, use of the lease rate cap, which required increasing
transfers from the General Fund to the Airport Fund, had
outlived its usefulness and was restricted to property used for
aeronautical purposes.
In 1983, the City made many changes to land management
policies. The City hired a Land Manager, and several lands-
related ordinances were passed to streamline land disposal.
However, the price of the oil fell dramatically in 1986 and
Alaska went into recession. This was a year of decline in land
values, land sales, and leases. As property values continued
to drop in 1987, there was a dramatic increase in lease
rescissions. By 1990, it appeared that the economic recession
had reached the bottom and was taking a gradual upturn.
In 2006, the Airport land sale and leasing code sections were
repealed and reenacted as a result of recommendations in the
Supplemental Airport Master Plan. The new code established
the Airport Reserve, prohibited land sales within the Reserve,
amended guidelines for setting the length of the lease terms
with higher investment requirements and a maximum 35-year
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term. The revised policy added additional requirements for lease applicants, eliminated the ability
of new lessees to have the right to purchase once a development plan had been completed,
increased the capitalization rate used to calculate rental rates from 6% to 8%, and established a
new method of setting and adjusting land rents based on an airport-wide zone-based appraisal.
The City deviated from the new code provisions through non-code Ordinances to enter into each
new lease between 2007 and 2018 as well as to facilitate negotiated sales of land. In 2015,
Administration conducted an economic analysis of income (revenue) to the Airport, which
compared leasing versus sale of two unsolicited offers to purchase properties assuming a 50-
year period. It was determined that the Airport would lose revenue in a sale, and the City declined
the offers.
In 2016, the City updated zoning within the Airport Reserve and relocated the Airport Reserve
boundary. That same year, the City Council approved a policy for the sale of ten specific Airport
leased lands with substantial constructed leasehold improvements. The policy is in effect for five
years (expires in July of 2021) and, recognizing the value of a lease with a guaranteed revenue
stream, approves a sale at 125% of fair market raw land appraisal with the lessee paying for
appraisal costs.
Although the City’s land leasing and sale program has been restructured over the years, the
approach has been to manage land as situations arise and without an active management plan
or strategy. In 2018, City Council approved recommended revisions to the leasing program in the
Airport Reserve, amended the sale policy for ten specific Airport Fund properties to provide
alternatives to encourage investment, and approved a City-wide approach to land management
through the development of the City’s first Land Management Plan.
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WHERE WE ARE
The City is unique in its ownership of a large and diverse amount of public land, owning a total of
356 subdivided parcels of which 233 are designated General Fund, and 126 are designated
Airport Fund. Nineteen (19%) of City-owned parcels are currently under lease, generating an
annual revenue of approximately $653,356.
Inside the Airport Reserve, 27 parcels are currently under lease and approximately 20 subdivided
parcels are available for lease. Outside the Airport Reserve, approximately 14 Airport Fund
parcels are currently under lease, of which ten specific properties have been approved for sale,
and approximately 30 parcels remain available for lease. The General Fund has 22 parcels
currently under lease and an undetermined number of lands available for lease or sale.
Approximately 30% of City leases are in the latter half of the lease (not including Shorefishery
leases renewed in 2016), and another approximately 12% have lease terms with over 80 years
remaining and no incentive to maintain or improve the permanent improvements on the premises.
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OBJECTIVES
Utilizing the 2018 revisions to the leasing program for the Airport Reserve as a starting point, the
working group took a City-wide approach to land management that looked at both General Fund
and Airport Fund properties outside the Airport Reserve. The goal of the working group was to
follow similar changes made for the Airport Reserve properties with regard to lease and expand
the objectives to simplify and streamline the City’s land management program to provide a uniform
approach for both lease and sale.
The working group defined the following objectives to help achieve this goal:
City-wide Approach to Land Management
Business-friendly Rules
Policy Predictability
Uniform Application of Policies
Prevent Land Speculation
Promote Economic Development
The following recommendations apply to all City-owned lands with the exception of on-Airport
property and tidelands.
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RECOMMENDATIONS
1. LAND MANAGEMENT PLAN
A City-wide Land Management Plan is an active approach that requires an inventory of the City’s
land holdings. An analysis is needed for each parcel in terms of any conveyance, legislative
restrictions or need for public use as well as the potential economic and other benefits to the City.
The Land Management Plan provides a comprehensive evaluation and characterization of each
City-owned parcel to guide the decision-making process to include the following elements:
Property Description (e.g. physical characteristics, zoning, land use)
Facilities (e.g. parks, trails, structures, rights-of-way, utilities)
Status (e.g. public use, under active lease, available for lease or sale)
Recommended highest and best use
In addition to development of the
plan itself, Administration would
develop procedures and
standards for management of
City lands with a focus on
business-friendly practices and
customer service. The
advantages of an active
approach are improved policy
predictability and uniform
application of policies as well as
the opportunity for increased
return from public land assets for
the greatest benefit to the
residents of Kenai. This active
approach gives the City the ability
to determine which properties are
best suited for a public purpose,
lease, sale, devotion, or which
properties may be eligible for
grants or economic incentives for
development. It also provides a mechanism to evaluate properties on an ongoing basis.
The City began work on the Land Management Plan by hiring a Temporary Land Technician who
began researching City parcels and entering information into a new City Lands Database in 2018.
To date, the baseline information has been entered into the system for approximately 85% of City-
owned lands. When this task has been completed, City staff will review the information and finalize
the first draft of the City’s Land Management Plan for City Council consideration.
Once approved, the information in the database can be used to develop land use strategies to
implement a forward-looking approach to community growth and development. The City will have
the information necessary to make informed management decisions about City-owned lands. The
public will be able to view parcel-specific data included in the Plan utilizing the City’s interactive
online mapping.
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The Plan will require an ongoing review of current holdings and summary of changes, proposed
changes, market research, upcoming events (land sales, lease expirations or leases requiring
action) as well as further development of procedure manuals, forms, and databases to ensure
efficient and consistent work.
2. KENAI MUNICIPAL CODE (KMC) REVISIONS
The City’s policies and procedures for land leasing and sale for General Fund and Airport Fund
property outside the Airport Reserve are in the City’s land code (KMC 22 and 21.15). The working
group reviewed the current code and legislative history, the City’s available land data, and the
2018 revisions for on-Airport property, which came about after consultation with real estate
appraisers, bankers, surveyors, aviation consultants, and other land professionals. The group
also reviewed existing leases to consider the needs of existing leaseholders and the business
community to manage land for the greatest benefit of the residents of Kenai.
The following recommended revisions simplify and streamline the City’s land sale and lease
program to encourage growth, development, and a thriving business, residential, recreational,
and cultural community.
Applicant-Friendly Rules
“Applicant friendly” rules
balance the interests of the
City with those of the
applicant, do not place
excessive burdens on the
applicant, provide a
predictable process for
application approval,
attract new lessees to
vacant land and retain
existing leaseholders.
The City currently requires
a lease applicant to submit
a deposit up-front with a
lease application to ensure
performance, which is not
required by other similarly
situated municipalities and
increases an applicant’s
upfront costs. Other procedures place unnecessary burdens on the applicant by requesting
nonessential information at the application stage and do not provide a predictable process for
approval.
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The above recommendations provide an online resource for lease information and forms, remove
the requirement for up front application deposits, remove the requirement for additional
documents to be submitted with applications, provide for public notice and a predictable
processing procedure, and maintain Kenai’s application fees as some of the lowest in the State.
The recommendations also allow for lease applicants to indicate if they are interested in an option
to purchase the property once development is completed. This provides a new avenue for
competitive land sales that ensure development on the property.
Uniform Conditions for Determining Initial Length Lease Term
The City currently sets
the initial term of a
lease based on the
durability of the
proposed use, the
amount of investment
in improvement
proposed and made,
and the nature of the
improvement proposed
with respect to
durability and time
required to amortize
the proposed investment. There is not a methodology in place similar to the term table contained
in the code section for on-Airport properties that provides an applicant a guideline for how the City
sets the lease term, which reduces predictability for applicants.
Amending the term table to set the five-year term investment/value at $7,500, allowing for small
investment increments, and allows a lease applicant to compare their planned investment to the
term table to determine the term length they are likely to receive. This method also generally
satisfies the requirements of financial institutions that provide funding for lessee improvements
and provides greater predictability for business owners to locate and invest in Kenai’s economy.
(See Appendix: Draft KMC 22 revisions for recommended term table)
Predetermined Conditions for Lease Extension and Renewal
As more of the City’s leases reach the later part of the lease term, current conditions for lease
extension and renewal discourage the lessee to invest in maintenance or further development as
well as potentially restricting the lessee’s ability to sell their leasehold interest. For instance, a
lessee with five years remaining in the lease and no right in the lease to renewal will have difficulty
finding a buyer or new investor without being granted an extension or renewal of the lease.
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The City currently does not
have a methodology for
how to determine the term
for an extension or renewal
for lands outside the Airport
Reserve. Because renewal
and extension are not
defined, the terms are used
interchangeably with
extensions of older leases
being granted rather than
updated to a new standard
lease form. A renewal
requires an appraisal of the
land at the expense of the
lessee, which can be costly
and does not address the
improvements or the
condition of the
improvements on the
property. Additionally, the process does not provide any assurance to the lessee that a renewal
will be granted to justify the cost of an appraisal.
The above recommendations as well as setting the lease term for renewal and extension using
the same term table as is used in setting the term for initial leases gives a lessee a predictable
method to renew or extend the lease. This provides for a lower cost and risk to the lessee and
greater advantage to the City, as the renewal or extension term length is more accurately based
on the condition of the principal improvement or investment and provides motivation for the lessee
to maintain buildings in good condition.
Protect Lessees from Excessive Rent Increases
The City’s existing policy
for setting lease rates
consists of an initial
appraisal paid for by the
lessee and renegotiation
appraisals every five years
paid for by the City and
subsequent rates based
on 8% of the fair market
value as determined by the
appraisals.
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A change from the current five-year appraisal cycle to a 10-year “Market Analysis” (defined in the
draft code revisions to KMC 22 contained in the Appendix) with an annual CPI adjustment
provides less expense for the City in appraisal costs and greater predictability in rent for lessees.
Annual rent would be computed by multiplying the CPI adjusted fair market value of the land by
the lease rate percentage for each parcel (currently 8%).
For the City to realize the full benefit of an amendment to the policy for setting lease rates, existing
lessees would need to convert to the new method. Allowing current lessees to convert their leases
to the new form would allow lessees to take advantage of these protections from unexpected rent
increases as well as any other conditions available in the new lease form, such as the
predetermined conditions for lease extension and renewal and favorable provisions for the
disposition of improvements.
Provide Favorable Provisions for the Disposition of Improvements
Under the new land
leasing program on the
Airport, at the end of a
lease when the lessee
does not continue in
occupancy under a new
lease or extension, the
lessee has the option of
removing improvements
and restoring the
premises or selling
improvements to a
succeeding lessee of the
premises.
Most of the City’s current leases require the lessee to remove improvements or they will revert to
the City. With the City taking title to the improvements, it limits the lessee’s incentive for taking
good care of the buildings on the property as the end of the lease term approaches. The City runs
the risk of “inheriting” a building in poor condition and with the expense and/or liability of repairing
and maintaining the inherited building until a new lessee can be found. By contrast, the methods
for disposition of improvements approved for on-Airport leases provide lessees with an incentive
to maintain their facilities in good condition and do not leave the City with the burden of an
increasing inventory of older buildings needing maintenance and repair.
The City’s current practice for disposition of improvements for Airport Reserve properties provides
attractive options to lessees related to the improvements they constructed on the property. These
options incentivize better maintenance and, along with other development incentives, encourage
new investment, as well as increase predictability and uniformity for potential lessees.
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Offer Development Incentives
One way the City has encouraged investment and leasing of undeveloped properties on the
Airport is to offer development incentives. These incentives apply a credit toward rent for a
maximum of five years. The credit only includes the value of site preparation work on the leased
premises which provide economic benefit to the City and potentially increase the value of the
property for future sale.
An estimate of the value of the work, including a scope of work, prepared by a professional
engineer must be provided to the City and accepted prior to work being performed and the credit
would not be applied until the approved scope of work was completed.
Provide a Methodology for Sale of Leasehold Properties
The City’s ordinances allow for sale of some leasehold properties at Fair Market Value if
development had been completed as required by the lease or if substantial development has been
completed as determined by the City Manager. However, beginning in 2009, the City has declined
requests by lessees who wish to purchase except for those included in the temporary policy for
ten specific “off Airport” leased lands with substantial constructed leasehold improvements.
The policy is in effect for a period of five years (expires in July of 2021) and approves a sale at
125% of the Fair Market Value of the land or, as an alternative to a sale at 125%, the lessee must
either meet new investment requirements or demonstrate the existing lessee-constructed
improvements exceed the net present value of leasing the land by quantifying the economic value
of the investment to the City. The policy does not address the sale of other or future properties.
In order to allow for a competitive sale of leasehold property, the option to purchase would need
to be part of the initial lease application approval process, which includes a public posting
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requirement and public hearing. The option to purchase could be exercised by the lessee at such
time as the development requirements in the lease were met. This option would give the lessee
the ability to enter into a lease with lower up-front costs as well operate a business at a location
before committing to purchase the property. Providing a methodology for sale of leasehold
properties will improve the City’s ability to attract specific businesses and industries that are
necessary to maintain and grow the local economy.
For example, a new business could apply for a lease of City property, which has been pre-
determined as available for lease or sale, with an option to purchase. The applicant would be
responsible for the application fee and a deposit to cover the cost of an appraisal (the cost of the
appraisal would be credited or refunded once minimum development in the form of permanent
improvements on the property was completed). The lessee may also request a credit toward rent
for a maximum of five years for the value of site preparation work on the leased premises, which
potentially increases the value of the property for future sale. After two years – or five years, if the
lessee prefers to exhaust the development credits, the lessee would be able to request to
purchase the land at Fair Market Value based on a new appraisal.
This process would not be available for existing leasehold properties as it would not meet the
City’s requirement for a competitive sale process.
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Provide a Methodology for Sale of Vacant Properties
The City’s ordinances currently allow for sale of land outside the Airport Reserve not under lease
at Fair Market Value by outcry auction, competitive sealed bids or negotiated sale to encourage
a new commercial or industrial enterprise beneficial to the City. There is not a methodology in
place to determine in advance which parcels of land are best suited for sale or guidance on what
conditions justify negotiated transactions which may be in the City’s best interests.
As part of an overall Land Management Plan, City staff would review the City’s land inventory and
consult with City departments to determine which properties are no longer needed for a public
purpose and those which would provide a greater public benefit if offered for lease or sale.
Property would become available for sale if it meets a set criteria, including: the property is not
currently used by a City department or does not support a City function or foreseeable use by the
City; the City is not obligated to use the property for the purpose in which it was conveyed or
circumstances have changed such that the purpose is no longer needed; the property is a non-
performing or under-performing asset and greater value can be generated by its sale; or,
significant economic development opportunities can be generated by selling the property. Based on an analysis of the individual parcel as provided in the Land Management Plan, it may
be in the best interests of the City to sell parcels after significant developm ent has been
completed. Based on the City’s policy not to allow for speculation on City-owned lands, a lease
or sale would require development and a sale would be at not less than Fair Market Value with a
required minimum investment in permanent improvements.
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Update Special Use Permit Process
The City does not currently have an
application, application fee, or set
fee schedule for Special Use
Permits, which allow for temporary
use of City property for up to five
years without an appraisal or
competitive process. Some
permittees have utilized Special
Use Permits instead of the lease
process for cumulative terms that
exceed many leases. A change to a
one-year maximum term for Special
Use Permits and a standard
application, application fee, and fee
schedule provides a uniform
approach that does not allow a
Special Use Permit to be used
inappropriately in place of a lease.
3. UPDATE FORMS AND PROCEDURES
The following recommendations are for City fees, forms, and procedures that create a uniform
approach and process for City lands management.
Update Lease Forms and Procedures
The above recommendations would require material changes in the standard lease forms
currently used for City General Fund and Airport Fund lands located outside the Airport Reserve.
These amendments might include definitions, rent adjustments, construction of improvements,
and other changes consistent with any Code revisions. Any changes would require a Resolution
approving the new standard lease form.
Additionally, updated application forms would be required and be made available both online and
at City Hall.
Update City Procedures and Processes
Updates to the City’s internal procedures and processes would also be necessary and would
improve the processing of lease applications and sale procedures for a business-friendly
approach. This would include creating FAQ’s, examples of timelines, and flow charts available to
potential lessees and parties interested in investing in development on City-owned lands.
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Update Administrative Fees for Land Management
The City requires a $100 non-
refundable fee to be submitted with
lease applications City-wide, however
the only other administrative fees for
lands are on the Airport, updated in
2018. Land-related administrative
fees are a fairly common practice and
prevent filing of frivolous applications
as well as recover a portion of the
administrative processing costs.
Application and forms fees in other
Alaska local governments range in
amount and type with some areas
charging between $0 - $500 for a
lease application and additional fees
when entering into lease or to cover
the cost of recording.
4. AFFIRMATIVE MARKETING PLAN
As a result of the 2018 recommendations, the City created its first Kenai Municipal Airport
Available Lease Lands brochure available in print and online. An affirmative marketing plan for
City-wide properties available for lease will ensure the continued success of the City’s land leasing
and sale programs.
The plan will promote the City of Kenai as business-friendly by providing a “one stop shop” of
information on the City’s website as well as in information brochures. A party interested in the
possibility of leasing or purchasing City land to locate a business in Kenai can go to the website
or review the brochure to find all essential leasing or sale information presented in simple terms.
The information includes the advantages of living and doing business in Kenai, property available
for lease or sale, the applicable application form, a sample lease, current rental rates (if available),
the term investment table, the disposition of improvements, FAQs, a summary of the application
processing steps and typical timetable.
The lease information package or brochure can be distributed as part of an active marketing
strategy in which the City provides the information to targeted groups at trade shows, networking
events, or one-on-one visits with business owners. Information on properties available for sale
would be marketed to receive the widest possible exposure to prospective lessees and buyers.
This would be accomplished through direct marketing techniques, such as requests for proposals
(RFPs), advertising, posting the property on the multiple listing service (MLS) or any other
appropriate method.
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TIMELINE
The purpose of presenting the recommendations of the working group is to provide a starting
place for discussions regarding recommended changes to the City’s land sale and leasing policies
and procedures. The timeline for finalizing and implementing any approved changes will depend
on City Council action. The next City Council meeting is scheduled for June 19, 2019, and the
land sale and leasing policy and procedures recommendations will be included as a Discussion
Item.
The proposed changes to the land leasing program for the Kenai Municipal Airport followed a
timeline similar to the following timeline:
City Council Work Session: June 11, 2019
City Council Discussion Item: June 19, 2019
Airport Commission: July 11, 2019
Planning and Zoning Commission: July 10, 2019
Ordinance Introduction: August 7, 2019
Public Hearing on Ordinance: August 24, 2019
Resolution Amending Fee Schedule: August 24, 2019
Resolution Adopting Lease Form: August 24, 2019
Implementation and Forms Update: Late August – Early September
Depending on approval of any recommendations or revisions, implementation of
recommendations would take place in phases, with completion of code revisions and forms
occurring over subsequent months. Continued work on the City’s first Land Management Plan will
occur over the next year.
Comments may be submitted to the City Manager or via email to the Assistant to the City Manager
at ccunningham@kenai.city
APPENDIX
Draft Land Management Plan
Draft KMC 22 Revisions
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1
Title 22
[GENERAL FUND]CITY-OWNED LANDS
Chapter 22.05
DISPOSITION OF CITY [GENERAL FUND]LANDS
22.05.050 Definitions.
When used in this chapter, the following terms shall have the meaning given below:
“Amendment” means a formal change to a lease of lands other than a lease extension or renewal.
“Annual rent” means an amount paid to the City annually according to the terms of the lease and
Kenai Municipal Code.
“Assignment” means the transfer of all interest in a lease from one person or entity to another.
“City” means the City of Kenai, its elected officials, officers, employees or agents.
“Consumer Price Index (CPI)” means the annual CPI for all urban consumers (CPI-U) for
Anchorage, Alaska.
“Existing lease” means a lease with at least one (1) year of term remaining.
“Expiring lease” means a lease with less than one (1) year of term remaining.
“Fair market value” means the most probable price which a property should bring in a
competitive and open market as determined by a qualified independent appraiser, or the value as
determined by the latest appraisal adjusted by the change in Consumer Price Index from the date
of the latest appraisal.
“Lease extension” means extending the term of an existing lease.
“Lease rate percent” means a percentage that when applied to the fair market value of land
establishes a rate of rent commensurate with rental rates prevalent in the local area as determined
by a qualified real estate appraiser.
“Lease renewal” means a new lease of property currently under an existing or expiring lease to
an existing lessee or a purchaser.
“Market analysis” means an analysis of data collected from other land leases to determine
whether a market adjustment in either fair market value or lease rate percentage reflects the
market.
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“Permanent improvement” means a fixed addition or change to land that is not temporary or
portable, including a building, building addition, retaining wall, storage tank, earthwork, fill
material, gravel, and pavement, and remediation of contamination for which the applicant is not
responsible and excluding items of ordinary maintenance, such as glass replacement, painting,
roof repairs, door repairs, plumbing repairs, floor covering replacement, or pavement patching.
“Professional estimate of the remaining useful life of the principal improvement” means an
estimate of the number of remaining years that the principal improvement will be able to
function in accordance with its intended purpose prepared by a qualified real estate appraiser,
engineer, or architect licensed in Alaska.
“Qualified independent appraiser” means a general real estate appraiser certified by the State of
Alaska under AS 08.87.
“Site development materials” means materials used for preparing a lease site for building
construction or to provide a firm surface on which to operate a vehicle or aircraft, including
geotextile, fill, gravel, paving, utilities and pavement reinforcement materials.
“Site preparation work” means work on the leased premises to include clearing and grubbing,
unclassified excavation, classified fill and back fill, a crushed aggregate base course and utility
extensions.
22.05.010 [POWER]Authority and Intent [TO DISPOSE OF REAL PROPERTY].
(a) The provisions of this chapter apply to [GENERAL FUND] City-owned real property other
than lands within the Airport Reserve as described in KMC 21.10 and the leasing of tidelands as
described in KMC 11.20.
(b) The City may sell, convey, exchange, transfer, donate, dedicate, direct, [OR ]assign to use,
or otherwise dispose of City-owned real property, including property acquired, held for, or
previously devoted to a public use, only in accordance with this chapter, and, with respect to
properties acquired through foreclosure for taxes, in compliance with those terms and provisions
of AS 29 which apply to home-rule municipalities [ARE REQUIRED TO COMPLY WITH].
Disposal or sale of lands shall be made only when, in the judgment of the City Council, such
lands are not or are no longer required for a public purpose.
(c) It is the intent of this chapter to provide land policies and practices that encourage
responsible growth and development to support a thriving business, residential, recreational and
cultural community.
(d) It is not the intent of this chapter to allow for speculation on City-owned lands. All leases,
sales, and other disposals of City-owned land must meet the intent of this chapter.
(e) The provisions of this chapter shall not alter or amend the terms or rights granted under leases
existing prior to the effective date of the ordinances codified in this chapter.
22.05.015 Lands Available for Lease, Sale or [D]Disposal.
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(a) The City may lease, sell or dispose of real property not restricted from lease or sale which
the City Council has determined is not required for a public purpose [BY WARRANTY OR
QUIT-CLAIM DEED, EASEMENT, LEASE, GRANT, PERMIT, LICENSE, DEED OF
TRUST, MORTGAGE CONTRACT OF SALE OF REAL PROPERTY, PLAT DEDICATION,
TAX DEED, OR] by any [OTHER ]lawful method or mode of conveyance or grant. Any
instrument requiring execution by the City shall be signed by the City Manager and attested by
the City Clerk. The form of any instrument shall be approved by the City Attorney.
22.05.020 Qualifications of Lease [A]Applicants or [B]Bidders.
An applicant or bidder for a lease is qualified if the applicant or bidder:
(a) Is an individual at least eighteen (18) years of age [OR OVER]; or
(b) Is a [GROUP, ASSOCIATION, OR CORPORATION WHICH IS] legal entity which is
authorized to conduct business under the laws of Alaska; or
(c) Is acting as an agent for another meeting the requirements of subsection (a) or (b) of this
section and has qualified by filing with the City [MANAGER] a proper power of attorney or a
letter of authorization creating such agency. [THE AGENT SHALL REPRESENT ONLY ONE
(1) PRINCIPAL TO THE EXCLUSION OF HIMSELF OR HERSELF. THE TERM “AGENT”
INCLUDES REAL ESTATE BROKERS AND AGENTS.]
22.05.025 Initial Lease Application[S].
(a) All applications for lease of lands [SHALL] must be [FILED WITH] submitted to the City
[MANAGER] on an application form[S] provided by the City[AVAILABLE AT CITY HALL].
Applications [SHALL] will be dated on receipt and must include payment of [FILING] the
nonrefundable application fee [AND DEPOSIT. NO APPLICATION WILL BE ACCEPTED
BY THE CITY MANAGER UNLESS IT APPEARS TO THE CITY MANAGER TO BE
COMPLETE. FILING FEES ARE NOT REFUNDABLE] as set forth in the City’s schedule of
fees approved by the City Council.
(b) [WITH EVERY]The application[, THE APPLICANT SHALL SUBMIT A
DEVELOPMENT PLAN, SHOWING AND STATING] form must include the following
information:
(1) The purpose of the proposed lease;
(2) The use, [VALUE AND]nature, type, and estimated cost of improvements to be constructed;
(3) [THE TYPE OF CONSTRUCTION;
(4)] The dates construction is estimated to commence and be completed. [(ORDINARILY A
MAXIMUM OF TWO (2) YEARS)] Construction must be completed within two (2) years
except in special circumstances, that require a longer period of time and which must be approved
by the City Council; and
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([5]4) [WHETHER INTENDED USE COMPLIES WITH THE ZONING ORDINANCE AND
COMPREHENSIVE PLAN OF THE CITY. APPLICATIONS SHALL BECOME A PART OF
THE LEASE]A comprehensive description of the proposed business or activity intended;
(5) Whether the applicant requests a lease with an option to purchase; and
(6) How the proposed lease meets the intent of this chapter.
(c) 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, it is
determined that the subdivision serves other City purposes.
(1) If the Council determines that other City purposes are served by the subdivision, the City
Council may choose in its sole discretion to share in the subdivision costs with the applicant in
an amount the City Council determines is reasonable given the benefit to the City.
(2) If the Council does not make a determination that other City purposes are served by the
subdivision, the applicant must submit a deposit to cover the estimated costs associated with the
subdivision.
(3) If the City enters into a lease with the applicant, any unused balance of the deposit made to
cover costs associated with subdivision will apply to the rent payable under the lease.
(4) If the City’s costs exceed the amount of any deposit made to cover costs associated with
subdivision, the applicant must pay the shortage to the City as a condition of the lease.
(5) If the application is rejected or if the applicant withdraws the application or fails to sign a
lease offered to the applicant, the City will return any unused deposit balance to the applicant.
(d) Applications for lands which have not been appraised within one (1) year of the requested
starting date of the lease require the applicant to be responsible for all costs associated with
appraisal. The cost of the appraisal shall be credited or refunded to the lessee once development
is completed as required by the lease, extension or renewal.
(e) Applications which result in a lease agreement with the City require the lessee to be
responsible for all recording costs and any other fees associated with execution of the lease
including a preliminary commitment for title insurance and fifty percent (50%) of the required
costs associated with a sale of leased land in which the lease contains an option to purchase once
the minimum development requirements have been met.
(f) Anytime during the processing of a lease application, the City may request, and the applicant
must supply, any clarification or additional information that the City reasonably determines is
necessary for the City to make a final decision on the application.
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[22.05.030 FILING FEE AND DEPOSIT.
(A) WHEN SUBMITTING AN APPLICATION FOR LEASE OF LAND, THE APPLICANT
SHALL PAY THE CITY THE FOLLOWING AS SET FORTH IN THE CITY’S SCHEDULE
OF FEES ADOPTED BY THE CITY COUNCIL:
(1) PAY A NON-REFUNDABLE FILING FEE IN THE AMOUNT; AND
(2) A DEPOSIT TO SHOW GOOD FAITH AND SECURE THE CITY IN PAYMENT OF
ANY COSTS, INCLUDING:
(A) AN APPRAISAL COST RECOVERY DEPOSIT; AND
(B) AN ENGINEERING, SURVEYING AND CONSULTING COST RECOVERY DEPOSIT.
(B) IF THE CITY DECIDES TO REJECT THE APPLICANT’S APPLICATION AND NOT
ENTER INTO A LEASE WITH THE APPLICANT THROUGH NO FAULT OF THE
APPLICANT OR FAILURE OF THE APPLICANT TO COMPLY WITH ANY
REQUIREMENT OF THIS CHAPTER, ANY DEPOSIT MADE UNDER
SUBSECTION (A)(2) OF THIS SECTION WILL BE RETURNED TO THE APPLICANT.
(C) IF THE CITY ENTERS INTO A LEASE WITH THE APPLICANT ANY DEPOSIT
MADE BY THE APPLICANT UNDER SUBSECTION (A)(2) OF THIS SECTION WILL BE
APPLIED TO THE CITY’S ENGINEERING, APPRAISAL, AND CONSULTING COSTS
RELATED TO THE PROCESSING OF THE APPLICANT’S APPLICATION AND
ENTERING INTO THE LEASE. THE CITY WILL APPLY ANY UNUSED BALANCE OF A
DEPOSIT TO THE RENT PAYABLE UNDER THE LEASE. IF THE CITY’S COSTS
EXCEED THE AMOUNT OF ANY DEPOSIT, THE APPLICANT SHALL PAY THE
SHORTAGE TO THE CITY AS A CONDITION OF THE LEASE.
(D) IF THE APPLICANT FAILS TO COMPLY WITH ANY REQUIREMENT OF THIS
CHAPTER, CAUSES INORDINATE DELAY, AS DETERMINED BY THE CITY
MANAGER, OR REFUSES TO SIGN A LEASE OFFERED TO THE APPLICANT, THE
CITY MANAGER WILL REJECT THE APPLICANT’S APPLICATION AND APPLY ANY
DEPOSIT MADE BY THE APPLICANT UNDER SUBSECTION (A) OF THIS SECTION TO
THE CITY’S APPRAISAL, ENGINEERING, AND CONSULTING COSTS INCURRED IN
CONNECTION WITH THE APPLICANT’S APPLICATION. IF THE CITY’S COSTS FOR
APPRAISAL, ENGINEERING AND CONSULTING COSTS EXCEED THE DEPOSITS, THE
APPLICANT WILL BE RESPONSIBLE FOR THESE COSTS. THE CITY WILL RETURN
ANY UNUSED DEPOSIT BALANCE TO THE APPLICANT.]
22.05.035 [RIGHTS PRIOR TO LEASING.]No Right of Occupancy – Lease Application
Expiration.
(a) Submitting [THE FILING OF] an application for a lease [SHALL] does not give the
applicant [NO]a right to lease or [TO THE]use [OF THE]City-owned land[ FOR WHICH THEY
HAVE APPLIED].
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(b) The application shall expire upon execution of a lease or rejection of a lease application by
the City Council or within twelve (12) months after the date the application has been [MADE]
submitted [IF A LEASE HAS NOT BEEN ENTERED INTO BETWEEN THE CITY AND
THE APPLICANT BY THAT TIME UNLESS THE CITY COUNCIL FOR GOOD CAUSE
GRANTS AN EXTENSION. NO EXTENSION MAY BE GRANTED FOR A PERIOD
LONGER THAN SIX (6) MONTHS. LEASE RATES ARE SUBJECT TO CHANGE ON THE
BASIS OF AN APPRAISAL DONE EVERY TWELVE (12) MONTHS ON THE PROPERTY
APPLIED FOR].
22.05.040 [PROCESSING PROCEDURE] Lease Application Review.
(a) Applications shall be [FORWARDED]reviewed by City staff for application completeness
and conformance with City ordinances.
(b) Based on the initial review, if the City Manager determines the application is complete, the
application shall be referred to the Planning and Zoning Commission and any other applicable
commissions [UPON RECEIPT]for review and comment, together with the City Manager’s
recommendation for approval or rejection. [THE PLANNING AND ZONING COMMISSION
SHALL NORMALLY CONSIDER APPLICATIONS FOR SPECIFIC LANDS ON A FIRST-
COME, FIRST-SERVED BASIS IF THE COMMISSION FINDS THAT THE APPLICATION
IS COMPLETE AND CONFORMS TO THE COMPREHENSIVE PLAN AND THE KENAI
ZONING CODE. WHERE THERE IS DIFFICULTY IN OBTAINING A PERFECTED
APPLICATION, DETAILS AS TO DEVELOPMENT PLANS, ETC., OR WHERE THE
APPLICANT FAILS TO COMPLY WITH DIRECTIONS OR REQUESTS OF THE
PLANNING AND ZONING COMMISSION, ANY SUCH PRIORITY WILL BE LOST. IF AN
APPLICATION FOR THE PURCHASE OF CITY-OWNED LANDS, PREVIOUSLY
AUTHORIZED FOR SALE BY THE COUNCIL, IS RECEIVED BY THE CITY PRIOR TO
THE KENAI PLANNING AND ZONING COMMISSION MAKING AN AFFIRMATIVE OR
NEGATIVE RECOMMENDATION TO THE COUNCIL REGARDING THE LEASE
APPLICATION FOR THE SAME PROPERTY, THE CITY MAY ELECT TO SELL THE
PROPERTY IN ACCORDANCE WITH THE PROVISIONS OF THE CODE.
(B) THE CITY COUNCIL SHALL NORMALLY CONSIDER A LEASE PROPOSAL ONLY
AFTER APPROVAL OF THE PLANNING AND ZONING COMMISSION. HOWEVER,
APPEALS OF PLANNING AND ZONING COMMISSION DISAPPROVAL MAY BE MADE
TO THE CITY COUNCIL. COMPLETED LEASE APPLICATIONS MUST BE PRESENTED
TO THE CITY COUNCIL WITHIN THIRTY (30) DAYS AFTER APPROVAL BY THE
PLANNING AND ZONING COMMISSION.]
(c) Notice of complete applications for new leases, renewals or extensions shall be published in
a newspaper of general circulation within the City. The notice must contain the name of the
applicant, a brief description of the land, whether the applicant requests a lease with an option to
purchase, and the date upon which any competing applications must be submitted (thirty (30)
days from the date of publication).
(d) The applicant shall post the property subject to the application with notice of complete
applications for new leases, renewals or extension at least ten (10) days before the date of the
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required public hearing. Such notices shall be placed so as to be visible from each improved
street adjacent to the property, to the extent possible.
[(C) WHERE THERE ARE TWO (2) OR MORE APPLICATIONS FOR THE SAME LANDS
FOR DIFFERENT USES, THEN IF THE PLANNING AND ZONING COMMISSION
MAKES A FINDING THAT A SUBSEQUENT APPLICATION WOULD RESULT IN USE
OF THE LANDS FOR A HIGHER AND BETTER PURPOSE WITH A GREATER BENEFIT
TO THE CITY OF KENAI AND THE CITIZENS THEREOF, THEN THE LEASE MAY BE
ISSUED TO SUCH APPLICANT NOTWITHSTANDING THE PROVISIONS OF
SUBSECTION (A) IN THIS SECTION WHICH PROVIDE FOR LEASING ON A FIRST-
COME, FIRST-SERVED BASIS. ANY APPLICANT MAY APPEAL TO THE CITY
COUNCIL FROM A FINDING OR A REFUSAL TO FIND BY THE PLANNING AND
ZONING COMMISSION BY FILING AN APPEAL WITH THE CITY CLERK WITHIN
SEVEN (7) DAYS AFTER THE FINDING IS MADE OR REFUSED BY THE PLANNING
AND ZONING COMMISSION.
(d) The recommendations of the City Manager, Planning and Zoning Commission, and any
other applicable commissions shall be provided to the City Council. The City Council shall
determine whether the lease is consistent with the intent of this chapter. The decision whether or
not to lease land or authorize a lease extension, renewal, amendment or assignment rests in the
sole discretion of the City Council.
(e) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable
to the City or the applicant is in default of a requirement of any lease or contract with the City a
lease shall not be entered into until the deficiencies are remedied .
22.05.045 [REVIEW]Application for Lease Amendment, Assignment, Extension or
Renewal.
[NO LEASED LAND MAY BE CHANGED IN USE, NOR MAY ANY RENEWAL LEASE
BE ISSUED UNTIL THE PROPOSED USE OR RENEWAL HAS BEEN REVIEWED BY
THE PLANNING COMMISSION AND APPROVED BY THE COUNCIL.]
(a) A request from an existing lessee for a lease amendment, assignment, extension or renewal
of the lease must be submitted to the City on an application form provided by the City.
Applications must be complete and dated on receipt and include payment of the nonrefundable
application fee and applicable deposit as set forth in the City’s schedule of fees adopted by the
City Council.
(b) An application for an amendment must include the following information:
(1) The purpose of the proposed amendment;
(2) The proposed change in use or activity, if any;
(3) A comprehensive description of the proposed business or activity, if applicable; and
(4) How the proposed amendment meets the intent of this chapter.
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(c) An application for a lease assignment must include the following:
(1) The name of the individual or legal entity to which the lessee requests to assign the lease.
(d) An application for a lease extension must include the following information:
(1) The use, nature, type and estimated cost of additional improvements to be constructed;
(2) The dates new construction is estimated to commence and be completed; and
(3) How the proposed lease extension meets the intent of this chapter.
(e) An application for a lease renewal must include the following information:
(1) For a lease renewal of an existing lease:
(i) The use, nature, type and estimated cost of additional investment in the construction of new
permanent improvements;
(ii) The dates new construction is estimated to commence and be completed;
(iii) If the renewal is pursuant to a transaction between the current lessee and a new buyer and
prospective lessee, the estimated purchase price of real property improvements on the premises
as certified by the current lessee and proposed purchaser in a bill of sale; and
(iv) How the proposed lease renewal meets the intent of this chapter.
(2) For a lease renewal of an expiring lease:
(i) A fair market value appraisal of the existing principal improvement on the property, paid for
by the applicant, and the estimated cost of any additional investment in the construction of
permanent improvements on the premises, if applicable;
(ii) If the renewal is pursuant to a transaction between the current lessee and a new buyer and
prospective lessee, the estimated purchase price of existing real property improvements, as
certified by the current lessee and the proposed purchaser in a bill of sale and the estimated cost
of any additional investment in the construction of permanent improvements on the premises, if
applicable;
(iii) If the renewal is based on a professional estimate of the remaining useful life of the real
property improvements on the premises, the estimated value and how it was determined;
(iv) The use, nature, type and estimated cost of any additional improvements to be constructed,
if applicable;
(v) The dates any new construction is estimated to commence and be completed; and
(vi) How the proposed lease meets the intent of this chapter.
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(f) Applications for amendment, assignment, extension or renewal shall be processed in
accordance with the lease application review provisions of this chapter, except that applications
for assignment shall not be referred to the Planning and Zoning Commission. The City has no
obligation to amend, assign, renew or extend a lease and may decline to do so upon making
specific findings as to why a lease amendment, assignment, renewal, or extension is not in the
best interest of the City.
[22.05.050 APPRAISAL.
NO LAND SHALL BE SOLD, LEASED, OR A RENEWAL OF LEASE ISSUED, UNLESS
THE SAME HAS BEEN APPRAISED WITHIN A TWELVE (12) MONTH PERIOD PRIOR
TO THE SALE OR DATE FIXED FOR BEGINNING OF THE TERM OF THE LEASE OR
RENEWAL LEASE. NO LAND SHALL BE LEASED FOR LESS THAN THE APPROVED
APPRAISED ANNUAL RENTAL. APPRAISALS SHALL REFLECT THE NUMBER AND
VALUE OF CITY SERVICES RENDERED THE LAND IN QUESTION.]
22.05.050 Competing Lease Applications.
If another application for a new lease, extension or a renewal is received for the same property
within thirty (30) days from the notice of application publication date by a different applicant,
City staff shall process the application and forward the application, the City Manager’s
recommendation and applicable commission recommendations to the City Council for approval
of the application anticipated to best serve the interests of the City. The City Council may
approve one (1) of the applications, reject all the applications or direct the City Manager to
award a lease of the property by sealed bid. An applicant for a renewal or extension may
withdraw an application for a renewal or extension at any time prior to a decision by the City
Council whether or not to approve such a renewal or extension.
22.05.055 [TERMS]Length of [L]Lease [T]Term.
[ALL LEASES SHALL BE APPROVED BY THE CITY COUNCIL BEFORE THE SAME
SHALL BECOME EFFECTIVE. THE TERM OF ANY GIVEN LEASE SHALL DEPEND
UPON THE DURABILITY OF THE PROPOSED USE, THE AMOUNT OF INVESTMENT
IN IMPROVEMENT PROPOSED AND MADE, AND THE NATURE OF THE
IMPROVEMENT PROPOSED WITH RESPECT TO DURABILITY AND TIME REQUIRED
TO AMORTIZE THE PROPOSED INVESTMENT].
(a) The length of term for an initial lease shall be based on the amount of investment the
applicant proposes to make in the construction of new permanent improvements on the premises
as provided in the application. The City Council may offer a shorter lease term, if the City
Council makes specific findings that a shorter lease term is in the best interest of the City.
(b) The maximum term of a lease shall be determined according to the following term table and
cannot exceed forty-five (45) years:
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Term Table
Applicant’s Investment/Value Maximum Term Of
Years
$7,500 5
15,000 6
22,500 7
30,000 8
37,500 9
45,000 10
52,500 11
60,000 12
67,500 13
75,000 14
82,500 15
90,000 16
97,500 17
105,000 18
112,500 19
120,000 20
127,500 21
135,000 22
142,500 23
150,000 24
157,500 25
165,000 26
172,500 27
180,000 28
187,500 29
195,000 30
202,500 31
210,000 32
217,500 33
225,000 34
232,500 35
240,000 36
247,500 37
255,000 38
262,500 39
270,000 40
277,500 41
285,000 42
292,500 43
300,000 44
307,500 45
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(c) Lease extension. The length of term for a lease extension shall be determined based on the
remaining term of the initial lease and the estimated cost of new investment the applicant
proposes to make in the construction of new permanent improvements on the premises according
to the term table and provided no extension shall extend a lease term past forty-five (45) years.
(d) Lease renewal for an existing lease. A renewal for an existing lease requires the construction
of new permanent improvements, and the length of term for a lease renewal for an existing lease
shall determined as follows:
(1) Based on the remaining term of the initial lease according to the term table and the estimated
cost of new investment the applicant proposes to make in the construction of new permanent
improvements on the premises according to the term table; or
(2) Pursuant to a transaction between the current lessee and a new buyer and prospective lessee
and based on the purchase price of existing real property improvements on the premises, as
certified by the current lessee and the proposed purchaser in the bill of sale, to be executed at
closing of the transaction and the estimated cost of new investment in the construction of new
permanent improvements on the premises according to the term table.
(3) The term for renewal of an existing lease cannot exceed forty-five (45) years.
(e) Lease renewal for an expiring lease. The length of term for a lease renewal of an expiring
lease shall be determined as follows:
(1) The purchase price of existing real property improvements on the premises, as certified by
the current lessee and the proposed purchaser in the bill of sale, to be executed at closing of the
transaction and the estimated cost of any new investment in the construction of new permanent
improvements on the premises according to the term table; or
(2) A professional estimate of the remaining useful life of the real property improvements on
the premises, paid for by the applicant and the estimated cost of any new investment in the
construction of new permanent improvements on the premises according to the term table; or
(3) A fair market value appraisal of the existing real property improvements on the premises,
paid for by the applicant and the estimated cost of any new investment in the construction of new
permanent improvements on the premises according to the term table.
(4) The term for renewal of an existing lease cannot exceed forty-five (45) years.
(f) If the initial lease, term extension, or lease renewal granted to the applicant requires
construction of new permanent improvements, the lease or term extension shall be subject to the
following conditions:
(1) The lessee to complete the proposed permanent improvements within two (2) years except in
special circumstances, that require a longer period of time and which must be approved by the
City Council.
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(2) The lessee to provide a performance bond, deposit, personal guarantee, or other security if
the City Council determines security is necessary or prudent to ensure the applicant’s completion
of the permanent improvements required in the lease, renewal, or extension. The City Council
shall determine the form and amount of the security according to the best interest of the City,
after a recommendation by the City Manager considering the nature and scope of the proposed
improvements and the financial responsibility of the applicant.
(3) At no expense to the City, the lessee must obtain and keep in force during the term of the
lease, insurance of the type and limits required by the City for the activities on the premises.
(4) Within thirty (30) days after completion of the permanent improvements, the lessee shall
submit to the City written documentation that the improvements have been completed as
required. The City Manager shall make a report to the City Council of completion as soon as
reasonably practical.
(5) If the applicant shows good cause and the City Council determines the action is in the best
interest of the City, the City Council may grant an extension of the time allowed to complete
permanent improvements by resolution that is sufficient to allow for the completion of the
permanent improvements or for submission of documentation that the permanent improvements
have been completed.
(6) If, within the time required, the applicant fails to complete the required permanent
improvements, the City shall:
(i) If the application is for a new lease or lease renewal, execute the forfeiture of the
performance bond, deposit, personal guarantee, or other security posted by the applicant under
subsection (f)(2) of this section to the extent necessary to reimburse the City for all costs and
damages, including administrative and legal costs, arising from the applicant’s failure to
complete the required improvements, and/or initiate cancellation of the lease or reduce the term
of the lease to a period consistent with the portion of the improvements substantially completed
in a timely manner according to the best interests of the City.
(ii) If the application is for a lease extension, the City shall terminate the amendment extending
the term of the lease or reduce the term of the extension at the City’s sole discretion.
22.05.060 [ANNUAL MINIMUM RENTAL]Principles and Policy of Lease Rates.
(a) Annual [MINIMUM] rent[ALS] shall be computed [FROM THE APPROVED
APPRAISED]by multiplying the fair market value of the land by a lease rate percentage of eight
percent (8%) for each parcel [UTILIZING THE METHOD AS DESCRIBED IN
KMC 22.05.070 OF THIS CHAPTER.]; and
(b) The City will determine the fair market value of the land requested to be leased based on an
appraisal conducted for the City by an independent real estate appraiser certified under Alaska
State statutes and ordered by the City. The appraisal shall be paid for by the applicant, and the
cost of the appraisal shall be credited or refunded to the lessee once development is completed as
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required by the lease. The fair market value of the land will be adjusted annually based on the
rate of inflation determined by the consumer price index (CPI) to determine annual rent[.]; and
[(B) UPON EXECUTION OF THE LEASE, THE LANDS BECOME TAXABLE TO THE
EXTENT OF ITS LEASEHOLD INTEREST AND LESSEE SHALL PAY ALL REAL
PROPERTY TAXES LEVIED UPON SUCH LEASEHOLD INTEREST IN THESE LANDS,
AND SHALL PAY ANY SPECIAL ASSESSMENTS AND TAXES AS IF HE OR SHE WERE
THE OWNER OF THE LAND.
(C) RENT SHALL BE PAID ANNUALLY IN ADVANCE. PAYMENTS SHALL BE
PRORATED TO CONFORM TO THE CITY OF KENAI’S FISCAL YEAR BEGINNING
JULY 1ST AND ENDING JUNE 30TH. IF THE EQUIVALENT MONTHLY PAYMENT
EXCEEDS TWO HUNDRED DOLLARS ($200.00), THEN THE LESSEE SHALL HAVE
THE OPTION OF MAKING PAYMENTS ON A MONTHLY BASIS.
(D) LESSEE SHALL BE RESPONSIBLE FOR ALL SALES TAXES APPLICABLE TO ITS
OPERATIONS.]
(c) The City will conduct a land market analysis of City-owned land under lease once every ten
(10) years to determine whether a market adjustment in either fair market value of land or lease
rate percentage is justified; and
(d) If the City determines from the market analysis that a market adjustment to the lease rate
percentage is in the best interests of the City, the new lease percentage must be approved by an
ordinance and utilized to compute annual rents for the next fiscal year; and
(e) If the market analysis or extraordinary circumstances determine a fair market value
adjustment is in the best interests of the City, the City shall retain the services of an independent,
real estate appraiser certified under Alaska State statutes to determine the fair market value of all
leased land and shall use these values to compute annual rents for the next fiscal year; and
(f) The City shall adjust the annual rent of a lease by giving the lessee written notice at least
thirty (30) days prior to application of a new annual rent determination; and
(g) If a lessee disagrees with the proposed change in the fair market value of land or lease rate
percent (excluding CPI determinations, which cannot be appealed) and cannot informally resolve
the issue with the City, the lessee must:
(1) Provide notice of appeal in writing within ninety (90) days of notification supported by the
written appraisal of a qualified real estate appraiser, selected and paid for by lessee (the “second
appraiser”); and
(2) The City and the lessee will meet to attempt to resolve the differences between the first
appraiser and the second appraiser concerning the fair market value of the land or lease rate
percent; and
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(3) If the City and lessee cannot agree upon the fair market value or lease rate percent then they
shall direct the first appraiser and the second appraiser to mutually select a third qualified real
estate appraiser, paid for jointly by the parties (the “third appraiser”); and
(4) Within thirty (30) days after the third appraiser has been appointed, the third appraiser shall
decide which of the two (2) respective appraisals from the first appraiser and the second
appraiser most closely reflects the fair market value of the land or lease rate percent; and
(5) The fair market value of the land or lease rate percent shall irrefutably be presumed to be the
value(s) contained in such appraisal selected by the third appraiser, and the rent shall be
redetermined based on such value(s); and
(6) Rent shall continue to be paid at the then-applicable rate until any such new rental rate is
established, and lessee and the City shall promptly pay or refund, as the case may be, any
variance in the rent, without interest accruing to the extent to be paid/refunded.
22.05.065 [B]Lease Bidding [P]Procedure.
[AS AN EXCEPTION TO GENERAL POLICY LISTED ABOVE]With the approval of the City
Council, the [CITY COUNCIL]City Manager may designate a specific lot or lots to be [MADE
AVAILABLE ONLY FOR]leased through competitive sealed bid. The City Manager shall
award the lease to the qualified bidder utilizing a procurement procedure which may consider
qualitative factors in addition to the amount of any [AS DESIGNATED, SEALED BIDS
SHALL BE RECEIVED OFFERING A]one (1) time premium payment to be paid by the
successful bidder; provided, however, that the high bidder and the bidder’s lease proposal [IN
ADDITION TO THE ESTABLISHED LEASE RATE. HIGHEST BID, HOWEVER,]shall be
subject to all provisions of lease application review and approval [ESTABLISHED FOR ALL
OTHER LEASE APPLICATIONS]under this chapter.
[22.05.070 PRINCIPLES AND POLICY OF LEASE RATES.
(A) A FAIR RETURN TO THE GENERAL FUND IS THE POLICY OF THE CITY,
UNLESS DEVIATION FROM THAT POLICY IS IN THE BEST INTEREST OF THE CITY
AS DETERMINED BY THE CITY COUNCIL. TO ENSURE A FAIR RETURN, ALL
LEASES FOR A PERIOD IN EXCESS OF FIVE (5) YEARS SHALL INCLUDE A
REDETERMINATION CLAUSE AS OF THE FIFTH ANNIVERSARY OF THE LEASE AND
EVERY FIVE (5) YEARS THEREAFTER, AND ALL LANDS FOR LEASE SHALL BE
APPRAISED PRIOR TO LEASE AND AGAIN PRIOR TO REDETERMINATION. LEASE
RATES:
(1) SHALL BE BASED ON FAIR MARKET VALUE OF THE LAND, INCLUDING AN
APPROPRIATE CONSIDERATION OF FACILITIES AND SERVICES AVAILABLE
(PUBLIC WATER, PUBLIC SEWER, STORM SEWERS, AND OTHER PUBLIC UTILITIES)
AS DETERMINED BY A QUALIFIED INDEPENDENT APPRAISER, CONSIDERING THE
BEST USE OF THE SPECIFIED LAND; AND
(2) SHALL BE EIGHT PERCENT (8%) OF FAIR MARKET VALUE.
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(B) FOR LEASES IN EXISTENCE PRIOR TO THE EFFECTIVE DATE OF THE
ORDINANCE CODIFIED IN THIS CHAPTER, THE LEASE RATE REDETERMINATION
SHALL BE AS PROVIDED IN THE LEASE.
(C) THE CITY MANAGER SHALL CHANGE THE RENT IN A LEASE BY GIVING THE
LESSEE WRITTEN NOTICE AT LEAST THIRTY (30) DAYS IN ADVANCE OF THE
EFFECTIVE DATE OF THE CHANGE.
(D) THE “FAIR MARKET VALUE” OF THE PREMISES SHALL BE EQUAL TO THE
THEN FAIR MARKET RATE FOR SIMILAR COMMERCIAL PROPERTY IN THE CITY
OF KENAI, ALASKA (THE “RELEVANT AREA”). CITY SHALL GIVE NOTICE TO
LESSEE OF CITY’S ESTIMATION OF THE FAIR MARKET VALUE NOT LATER THAN
THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF THE THEN-APPLICABLE FIVE (5)
YEAR PERIOD, AS EVIDENCED AND SUPPORTED BY THE WRITTEN OPINION OF AN
INDEPENDENT REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA STATUTE
8.87, SELECTED AND PAID FOR BY THE CITY, FAMILIAR WITH THE RELEVANT
AREA (THE “FIRST APPRAISER”). IF LESSEE DISAGREES WITH SUCH ESTIMATE, IT
SHALL ADVISE THE CITY IN WRITING THEREOF WITHIN THIRTY (30) DAYS OF
LESSEE’S RECEIPT OF SUCH ESTIMATE, AS EVIDENCED AND SUPPORTED BY THE
WRITTEN OPINION OF A REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA
STATUTE 8.87 (SELECTED AND PAID FOR BY LESSEE) FAMILIAR WITH THE
RELEVANT AREA (THE “SECOND APPRAISER”). THE PARTIES SHALL PROMPTLY
MEET TO ATTEMPT TO RESOLVE THEIR DIFFERENCES BETWEEN THE FIRST
APPRAISER AND THE SECOND APPRAISER CONCERNING THE FAIR MARKET
VALUE OF THE PREMISES. IF CITY AND LESSEE CANNOT AGREE UPON SUCH
VALUE THEN, WITH ALL DELIBERATE SPEED, THEY SHALL DIRECT THE FIRST
APPRAISER AND THE SECOND APPRAISER TO EXPEDITIOUSLY AND MUTUALLY
SELECT A THIRD REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA STATUTE
8.87 (SELECTED AND PAID FOR JOINTLY BY THE PARTIES) FAMILIAR WITH THE
RELEVANT AREA (THE “THIRD APPRAISER”). WITHIN THIRTY (30) DAYS AFTER
THE THIRD APPRAISER HAS BEEN APPOINTED, THE THIRD APPRAISER SHALL
DECIDE WHICH OF THE TWO (2) RESPECTIVE APPRAISALS FROM THE FIRST
APPRAISER AND THE SECOND APPRAISER MOST CLOSELY REFLECTS THE FAIR
MARKET VALUE OF THE PREMISES. THE FAIR MARKET VALUE OF THE PREMISES
SHALL IRREBUTTABLY BE PRESUMED TO BE THE VALUE CONTAINED IN SUCH
APPRAISAL SELECTED BY THE THIRD APPRAISER, AND THE RENTAL SHALL BE
REDETERMINED BASED ON SUCH VALUE. NOTWITHSTANDING ANYTHING TO
THE CONTRARY HEREIN, RENTAL SHALL CONTINUE TO BE PAID AT THE THEN-
APPLICABLE RATE UNTIL ANY SUCH NEW RENTAL RATE IS ESTABLISHED, AND
LESSEE AND CITY SHALL PROMPTLY PAY OR REFUND, AS THE CASE MAY BE,
ANY VARIANCE IN THE RENTAL, WITHOUT INTEREST THEREON ACCRUING TO
THE EXTENT TO PAID/REFUNDED IN A TIMELY FASHION.
22.05.075 REIMBURSEMENT FOR CITY-CONSTRUCTED IMPROVEMENTS.
(A) THE CITY MANAGER MAY INCLUDE IN A LEASE A REQUIREMENT FOR THE
LESSEE TO REIMBURSE THE CITY FOR THE CITY’S COST OF:
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(1) LAND CLEARING, GRAVEL FILL, UTILITY EXTENSIONS AND OTHER
IMPROVEMENTS OR AMENITIES ON OR IN DIRECT CONNECTION WITH THE
PREMISES, CONSTRUCTED BY THE CITY PRIOR TO THE EFFECTIVE DATE OF THE
LEASE; OR
(2) LAND CLEARING, GRAVEL FILL, UTILITY EXTENSIONS AND OTHER
IMPROVEMENTS OR AMENITIES ON OR IN DIRECT CONNECTION WITH THE
PREMISES, WHICH THE CITY AGREES TO CONSTRUCT AS A CONDITION OF THE
LEASE, SUBJECT TO CITY COUNCIL APPROVAL.
(B) THE LESSEE SHALL REIMBURSE THE CITY FOR THE CITY’S COST OF
CONSTRUCTING THE IMPROVEMENTS IN TEN (10) EQUAL ANNUAL PAYMENTS,
PLUS INTEREST AT EIGHT PERCENT (8%) PER YEAR ON THE UNPAID BALANCE. IF
THE LEASE IS FOR LESS THAN TEN (10) YEARS, THE REPAYMENT SCHEDULE MAY
NOT BE LONGER THAN THE TERM OF THE LEASE. THE LESSEE MAY PAY THE
ENTIRE REMAINING BALANCE TO THE CITY AT ANY TIME DURING THE TERM OF
THE LEASE.]
22.05.070 Development Incentives.
(a) The City Council may include a lease rent incentive to encourage investment as follows:
(1) A credit may be applied toward rent for a maximum of five (5) years. The credit may only
include the value of site preparation work on the leased premises to include clearing and
grubbing, unclassified excavation, classified fill and back fill, crushed aggregate base course, and
utility extensions.
(2) An estimate of the value of the work, including a scope of work, prepared by a qualified
engineer licensed to work in Alaska must be provided to the City and accepted prior to work
being performed.
(3) Any changes to the estimate of the value of the work or scope of work must be provided to
the City and accepted prior to work being performed to be eligible for the credit.
(4) For the credit to be applied, the approved scope of work must be completed.
(5) A certification from a qualified engineer that the accepted scope of work has been completed
must be provided to the City and accepted at the completion of the site preparation work.
(6) Credit will be limited to original qualified engineer’s estimate unless another amount is
accepted by the City in advance of work being completed.
(7) Once the work is completed as proposed and the qualified engineer’s certification of
completion has been received, a credit shall be applied to the lease payments, prorated as
necessary for a maximum of five (5) years.
(8) Rent shall be paid at the then-applicable rate until any such credit toward rent has been
approved by the City Manager or designee, and the City shall apply a credit to lease payments
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prorated as necessary or promptly pay or refund, as the case may be, any variance between the
credit applied and the rent paid, without interest accruing to the extent to be paid/refunded.
22.05.075 Ownership of Improvements.
(a) Permanent improvements on the premises, excluding site development materials,
constructed, placed, or purchased by the lessee remain the lessee’s property as long as a lease for
the premises remains in effect with the lessee, including renewals, any period of extension
approved by the City pursuant to the provisions of this chapter, or any period of holdover.
(b) Unless otherwise provided in a land lease, at the expiration, cancellation, or termination of a
lease that is extended or followed by a successive lease, the departing lessee may do one (1) or
more of the following:
(1) Remove lessee-owned permanent improvements from the premises, remediate any
contamination for which the lessee is responsible, and restore the premises to a clean and neat
physical condition acceptable to the City within ninety (90) days after the expiration,
cancellation, or termination date of the lease; or
(2) Sell lessee-owned permanent improvements to the succeeding lessee, remove all personal
property, remediate any contamination for which the lessee is responsible, and leave the
premises in a clean and neat physical condition acceptable to the City within sixty (60) days after
notice from the City that the City has approved an application for a lease of the premises by
another person or such longer period specified in the notice, but in no event more than one
hundred eighty (180) days after the expiration, termination, or cancellation date of the lease; or
(3) Purchase the property in which the lease contains an option to purchase once the minimum
development requirements have been met for the fair market value of the land excluding
permanent improvements made by the lessee.
(c) If the lessee does not timely remove or sell the lessee-owned permanent improvements on a
premises in accordance with the requirements of this section, any remaining permanent
improvements and any remaining personal property of the departing lessee will be considered
permanently abandoned. The City may sell, lease, demolish, dispose of, remove, or retain the
abandoned property for use as the City determines is in the best interest of the City. The lessee
shall, within thirty (30) days after being billed by the City, reimburse the City for any costs
reasonably incurred by the City, including legal and administrative costs, to demolish, remove,
dispose, clear title to, or sell the abandoned property and to remediate any contamination and
restore the premises.
(d) Site development materials that a lessee places on a premises become part of the City-owned
real property and property of the City upon placement. The lessee:
(1) Must maintain the site development work and site development materials throughout the
term of the lease or successive lease, including any extensions and periods of holdover; and
(2) May not remove the site development materials unless the City approves in writing.
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22.05.080 Lease [E]Execution.
The lease applicant shall execute and return the appropriate lease agreement with the City of
Kenai within thirty (30) days of mailing the agreement to the applicant. The lease agreement
shall be prepared in accordance with the requirements of this title. Failure to execute and return
the lease agreement within the specified period shall result in the forfeiture of all leasing rights.
22.05.085 Lease [U]Utilization.
Leased lands shall be utilized for purposes within the scope of the application, the terms of the
lease and in conformity with the ordinances of the City, and in substantial conformity with the
Comprehensive Plan. Utilization or development for other than the allowed uses shall constitute
a [VIOLATION]material breach of the lease and subject the lease to cancellation at any time.
Failure to substantially complete the development plan for the land shall constitute grounds for
cancellation.
22.05.086 Form of Lease.
(a) When leasing land under this chapter, the City Manager shall use a standard lease form that:
(1) Provides a reasonable basis for the lessee’s use of the premises,
(2) Complies with the intent of this chapter, and
(3) Provides for the best interest of the City.
(4) Approved as to form by the City Attorney; and
(5) Adopted by resolution of the City Council.
(b) The City Manager may enter into a land lease that deviates from the standard form adopted
under subsection (a) of this section, if:
(1) The City Manager believes the action is in the best interest of the City;
(2) The lease is approved as to form by the City Attorney; and
(3) The lease is approved by resolution of the City Council.
22.10.087 Lease Payments.
(a) Upon execution of the lease, the land becomes taxable to the extent of the lessee’s leasehold
interest and lessee shall pay all real property taxes levied upon such leasehold interest in these
lands, and shall pay any special assessments and taxes.
(b) Rent shall be paid annually in advance unless the lessee submits a written request to the City
to pay on a quarterly or monthly basis. The payments shall be prorated to conform to the City of
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(c) Lessee shall be responsible for all sales taxes due on payments under the lease.
[22.05.090 CONVEYANCE TO ENCOURAGE NEW ENTERPRISES.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER, WHERE IT IS
FOUND THAT ENCOURAGEMENT OF A NEW COMMERCIAL OR INDUSTRIAL
ENTERPRISE WOULD BE BENEFICIAL TO THE CITY OF KENAI, THE CITY COUNCIL
BY ORDINANCE SO FINDING MAY DIRECT CONVEYANCE OF ONE OR MORE
PARCELS OF CITY LAND BY THE CITY MANAGER TO SUCH ENTERPRISE UPON
SUCH TERMS AS TO PRICE, CONDITIONS OF CONVEYANCE, AND WITH SUCH
CONTINGENCIES AS MAY BE SET FORTH IN THE ORDINANCE.]
22.05.095 [S]Methods of Sale or Disposal.
(a) Lands[,] to which the City of Kenai holds title which are not restricted from sale by the deed
of conveyance to the City[,] or which have been released from such restrictions[, WHICH] and
that the City Council has determined are not required for a public purpose, may be listed for sale
by the City Manager[, EXCEPT THAT LANDS WHICH HAVE BEEN LEASED SHALL NOT
BE SOLD UNLESS THE LESSEE HAS MADE A WRITTEN REQUEST TO THE CITY TO
PLACE THE LAND FOR SALE]. The decision whether or not to sell the land rests in the sole
discretion of the City Council.
(b) [SALES OF LAND PURSUANT TO SUBSECTION (A) OF THIS SECTION SHALL BE
MADE AT NOT LESS THAN FAIR MARKET VALUE. THE PURCHASER SHALL
EXECUTE THE “AGREEMENT FOR SALE OF LAND” WITHIN ONE (1) YEAR OF THE
DATE OF APPRAISAL. ]The City Council may by ordinance authorize the City Manager [HAS
THE OPTION ]to dispose of such properties in accordance with [THE SALE PROCEDURES
SET OUT IN THIS TITLE]the intent of this chapter as follows:
(1) [BY NEGOTIATED SALE; OR]Non-competitive process:
(i) Conveyance to encourage new enterprises where it is found that encouragement of a new
commercial or industrial enterprise would be beneficial to the City of Kenai, one or more parcels
of City land may be sold upon such terms as to price, conditions of conveyance, and with such
contingencies as may be set forth in the ordinance.
(ii) Property sale to adjacent owners for the conveyance of a parcel of City property at fair
market value to the owner of adjacent land whenever, in the judgment of the City Council, the
parcel of land is of such small size, shape, or location that it could not be put to practical use by
any other party.
(iii) Grant or devotion of real property to the United States, the State of Alaska, a local political
subdivision of the State of Alaska, or any agency of any of these governments or a non-profit
corporation, for a consideration agreed upon between the City and grantee without a public sale
if the grant, devotion or lease is advantageous to the City.
(iv) Conveyance of land to resolve a land use conflict.
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(2) [BY]Competitive process:
(i) Public outcry auction to the highest responsible bidder[; OR].
[(3) BY COMPETITIVE S](ii) Sealed bid[s] to the highest responsible bidder.
(iii) Over-the-Counter sale after a public outcry auction or sealed bid process on a first-come
basis, provided minimum development requirements are met within two (2) years of sale and the
land is sold for fair market value. The appraisal must be within a one (1) year period prior to the
date of sale.
(3) Property exchange: Property exchanges for the conveyance and exchange of a parcel of City-
owned property for property owned by another individual or legal entity subject to such
conditions as Council may impose on the exchange, whenever the City Council makes findings it
is advantageous to the City to make the property exchange.
(iv) Leased land in which the lease was subject to competition through the lease application
review process and which contains an option to purchase once the minimum development
requirements have been met for the fair market value of the land excluding permanent
improvements made by the lessee. The appraisal must be within a one (1) year period prior to the
sale.
[IN THE EVENT THAT THE SALE IS NOT CLOSED WITHIN SIX (6) MONTHS OF THE
DATE OF APPRAISAL, THE BUYER WILL BE CHARGED, UPON CLOSING, INTEREST
COMPUTED IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE KENAI
MUNICIPAL CODE, BASED UPON THE TOTAL SALES PRICE FOR THE NUMBER OF
DAYS PAST THE EXPIRATION OF THE SIX (6) MONTH PERIOD.]
(c) Any sale of land owned by the City of Kenai and held by it for the use or benefit of the
Kenai Municipal Airport must include in any instrument conveying title to the property
restrictions accepted by the City under the terms of the 1963 Quitclaim Deed from the United
States of America recorded at Book 27, Page 303 at the Kenai Recording District, Kenai Alaska
or any other land owned by the City and acquired with Airport funds which may include similar
restrictions. Additionally, any sale or disposal of the aforementioned lands for less than fair
market value shall require a deposit in the amount of the difference between fair market value
and the sale price to the Airport Land Sale Permanent Fund for the benefit of the Kenai
Municipal Airport.
22.05.100 Sale [P]Procedure.
(a) All requests to purchase City land must be submitted to the City on approved forms provided
by the City. Applications will be dated on receipt and payment of the nonrefundable application
fee and must include applicable deposit as set forth in the City’s schedule of fees adopted by the
City Council.
(b) Applications which propose a subdivision shall require the applicant to be responsible for all
costs associated with the subdivision, including but not limited to engineering services,
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surveying and consulting costs, unless in the sole discretion of the City Council it is determined
the subdivision serves other City purposes.
(1) If the Council determines that other City purposes are served by the subdivision, the City
Council may choose in its sole discretion to share in the subdivision costs with the applicant in
an amount the City Council determines is reasonable given the benefit to the City.
(2) If the Council does not make a determination that other City purposes are served by the
subdivision, the applicant must submit a deposit to cover the estimated costs associated with the
subdivision.
(3) If the City enters into a sale with the applicant, any unused balance of the deposit made to
cover costs associated with subdivision will be credited toward the purchaser at closing.
(4) If the City’s costs exceed the amount of any deposit made to cover costs associated with
subdivision, the applicant must pay the shortage to the City as a condition of the sale.
(5) If the application is rejected or if the applicant withdraws the application or fails to enter into
a sale offered to the applicant, the City will return any unused deposit balance to the applicant.
(c) The City [MANAGER WILL OBTAIN SUCH AN APPRAISAL]will retain the services of
an independent, real estate appraiser certified under Alaska State statutes to determine the fair
market value for a determination of the minimum price on the land to be paid for from the
deposit made by the applicant unless such an appraisal has been obtained within one (1) year
prior to the date of sale. The cost of the appraisal will be credited toward the purchaser at
closing.
[(B) WHERE ANY PARTY, HEREINAFTER CALLED “APPLICANT,” REQUESTS THAT
A TRACT OR TRACTS OF LAND BE SOLD FOR WHICH AN APPRAISAL WILL BE
REQUIRED, WHICH WILL REQUIRE SUBDIVIDING, PLATTING, OR SURVEYING AND
STAKING, OR WHICH WILL REQUIRE ADVERTISING OR INCURRING ANY OTHER
EXPENDITURES BY THE CITY PRIOR TO SALE.
(1) NO ACTIONS IN PREPARATION FOR SALE WILL BE TAKEN BY THE CITY UNTIL
AN AGREEMENT TO PURCHASE SHALL BE PROPERLY EXECUTED AND FILED
WITH THE CITY MANAGER FOR THE PURCHASE OF SUCH LAND WITH PAYMENT
OF SUFFICIENT GOOD FAITH DEPOSIT, WHICH SHALL CONSIST OF CASH OR ITS
EQUIVALENT DEPOSITED WITH THE FINANCE OFFICER OF THE CITY OF KENAI,
AS MAY BE DETERMINED BY THE CITY MANAGER, TO COVER ALL EXPENSES OF
THE CITY AND SUCH AGREEMENT TO PURCHASE SHALL FURTHER CONTAIN THE
AGREEMENT BY APPLICANT TO PAY ANY ADDITIONAL COSTS IF SAID GOOD
FAITH DEPOSIT IS INSUFFICIENT TO PAY ALL COSTS INCURRED BY THE CITY.]
(2)](d) If at any time during the process of preparing for sale, the applicant [GIVES NOTICE
TO THE CITY MANAGER OF WITHDRAWAL OF ]withdraws the [REQUEST]application
for sale, the City [MANAGER ]shall stop all procedures, [SHALL ]pay expenses incurred prior
to [TERMINATION OF SALE PROCEDURES ]withdrawal of the application for sale, and
[SHALL ]reimburse applicant for any [GOOD FAITH ]deposit advanced in excess of
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[ALL]expenses incurred. [(]However, if another party desires the sale to proceed, files an
application [FOR SALE ]for sale, executes and files an agreement to purchase, and
[ADVANCES ]deposits sufficient funds[ THEREFOR], then the prior applicant will be
reimbursed for expenses [CHARGES ]which can be attributed to the subsequent applicant.[)
(3)](e) If all actions necessary for preparation for sale have been accomplished, and if neither
the applicant nor any other party purchases said land when first offered for sale after such
request, then all expenses incurred in preparation for the sale will be paid from the [GOOD
FAITH ]applicant’s deposit, and the balance, if any, shall be returned to the applicant. If the
[SUMS ]amount of the deposit is [ADVANCED AS GOOD FAITH DEPOSIT ARE]insufficient
to pay all of the costs, the applicant will be billed for the balance due[ AND NORMAL
COLLECTION PROCEDURES FOLLOWED].
[(4)](f) If the land [APPLIED FOR ]is sold [ON ]in a competitive public sale set in response to
such request to anyone other than the applicant, [THEN ON CLOSING OF THE SALE, ]the
[GOOD FAITH] applicant’s deposit will be refunded in total to the applicant. The City’s
expenses will be first deducted from the deposit of the successful bidder.
[(5)](g) If the land [IN QUESTION ]is sold to the applicant, [THE]any [GOOD FAITH ]deposit
advanced, after deducting the City’s expenses, will be [APPLIED ON THE PAYMENT DUE]
credited to the purchaser at closing.
[(6) IF THE LAND IN QUESTION IS TO BE SOLD BY SEALED BID AND THE
APPLICANT HAS SUBMITTED A VALID BID, BUT THE APPLICANT IS NOT THE HIGH
BIDDER, HE OR SHE MAY PURCHASE THE LAND BY TENDERING THE CITY A BID
EQUAL TO THE HIGH BID WITHIN FIVE (5) DAYS OF THE BID OPENING. IF THE
LAND SALE IS INITIATED IN ACCORDANCE WITH KMC 22.05.040[(A)], THE
APPLICANT SHALL BE DEFINED AS THAT PARTY SUBMITTING THE INITIAL LEASE
APPLICATION.]
([C]h) If the [TRACT OF ]land [PROPOSED TO BE SOLD ]is leased land in which the lease
contains an option to purchase once the minimum development requirements have been met, the
lessee may request the sale of the land at not less than the fair market value. [THE CURRENT
LESSEE OBTAINS THIS RIGHT TO REQUEST A SALE ONLY AFTER, TO THE
SATISFACTION OF THE CITY MANAGER, DEVELOPMENT HAS BEEN COMPLETED
AS DETAILED IN THE DEVELOPMENT SCHEDULE WHICH HAS BEEN
INCORPORATED INTO THE LEASE AGREEMENT. IF THERE IS NO DEVELOPMENT
SCHEDULE, THE LESSEE MAY PURCHASE THE PROPERTY IF THERE HAVE BEEN
SUBSTANTIAL IMPROVEMENTS AS DETERMINED BY THE CITY MANAGER. THE
DECISION WHETHER OR NOT TO SELL THE LAND TO THE LESSEE RESTS WITH
THE SOLD DISCRETION OF THE CITY.]
([D]i) [IF THE TRACT OF LAND PROPOSED TO BE SOLD IS NOT LEASED LAND, OR
IS LEASED LAND WITHOUT SUBSTANTIAL IMPROVEMENTS, THEN THE TRACT OF
LAND MAY ONLY BE SOLD BY OUTCRY AUCTION OR BY COMPETITIVE SEALED
BIDS.] If the [TRACT] land is to be [PUT UP FOR SUCH ]sold through a competitive
[AUCTION OR SEALED BID SALE ]process, notice of sale and the manner in which the land
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is to be sold [SHALL BE]must be posted to the extent possible to be visible from each improved
street adjacent to the property and published in a newspaper of general circulation within the
City [ONCE EACH WEEK FOR TWO (2) SUCCESSIVE WEEKS NOT LESS THAN
THIRTY (30) DAYS PRIOR TO THE DATE OF SALE; SUCH NOTICE SHALL ALSO BE
POSTED IN AT LEAST THREE (3) PUBLIC PLACES WITHIN THE CITY AT LEAST
THIRTY (30) DAYS PRIOR TO THE DATE OF SALE, AND SUCH OTHER NOTICE MAY
BE GIVEN BY SUCH OTHER MEANS AS MAY BE CONSIDERED ADVISABLE BY THE
CITY MANAGER. SUCH]. The published notice must contain:
(1) The legal description of the land;
(2) A brief physical description of the land;
(3) The area and general location of the land;
(4) The minimum acceptable offer for the land (which shall be [ITS APPRAISED ]the fair
market value);
(5) The terms under which the land will be sold;
(6) Any limitations on the sale of the land;
(7) The time and place set for the auction or bid opening;
(8) The amount of deposit to be submitted with each bid in order to cover the City’s expenses
such as survey, appraisal, and reviews;
(9) Any other matters concerning the sale of which the City Manager believes the public should
be informed.
[(E) IF NO OFFERS ARE SUBMITTED MEETING THE MINIMUM ACCEPTABLE OFFER
(OR APPRAISED VALUATION), THE CITY MANAGER MAY NEGOTIATE FOR SALE
OF THE TRACT OR TRACTS OF LAND WITH A MODIFICATION OF PROPOSED
TERMS OR FOR LESS THAN THE APPRAISED VALUATION PROVIDED THAT NO
SUCH NEGOTIATED SALE FOR LESS THAN APPRAISED VALUE SHALL BE BINDING
UPON THE CITY UNLESS THE TERMS AND PRICE THEREIN ARE APPROVED BY
RESOLUTION OF THE CITY COUNCIL.
(F) WHERE A REAL ESTATE AGENT FURNISHES A BUYER FOR CITY LAND, THE
CLOSING AGENT SHALL BE AUTHORIZED TO PAY THE AGENT A REAL ESTATE
COMMISSION OF FIVE PERCENT (5%) OF THE PURCHASE PRICE FOR THE LAND OR
FIVE PERCENT (5%) OF THE APPRAISED FAIR MARKET VALUE OF THE LAND,
WHICHEVER IS LOWER, UNDER THE FOLLOWING TERMS AND CONDITIONS:
(1) THE CITY MANAGER SHALL PROVIDE A NON-EXCLUSIVE LISTING OF LANDS
AVAILABLE FOR SALE.
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(2) NO COMMISSION SHALL BE PAID TO AN AGENT WHERE THE AGENT IS A
PARTY, OR IN PRIVITY WITH A PARTY, TO THE SALE.
(G) CLOSING OF SALE OF CITY LANDS SHALL BE HANDLED BY A TITLE OR
ESCROW COMPANY.
(H) CONVEYANCE OF CITY LANDS SHALL BE BY QUIT CLAIM OR WARRANTY
DEED FURNISHED BY THE CITY, AND BUYERS ARE ADVISED THAT ALL SUCH
CONVEYANCES ARE SUBJECT TO ALL LIENS, ENCUMBRANCES, RESTRICTIONS,
AND COVENANTS OF RECORD AND ARE SPECIFICALLY, WITHOUT BEING LIMITED
THERETO, SUBJECT TO ANY UNRELEASED RESTRICTIONS CONTAINED IN THE
DEED OR DEEDS BY WHICH THE CITY RECEIVED TITLE TO THE LAND.]
([I]j) If a buyer desires to obtain a preliminary commitment for title insurance or title insurance
to the land, [THEN ]it shall be the responsibility of the buyer to obtain and pay for such
commitment or insurance[ AND TO PAY FOR THE SAME].
[(J) IF THE TRACT OR TRACTS OF LAND ARE SOLD UNDER TERMS BY WHICH THE
CITY IS TO ACCEPT A NOTE AS A PORTION OF THE PURCHASE PRICE, THE NOTE
AND ACCOMPANYING DEED OF TRUST MUST BE PREPARED BY AN ATTORNEY,
BUT MUST BE APPROVED BY THE CITY ATTORNEY PRIOR TO CLOSING.
(K) THE NOTE SHALL BE PLACED FOR COLLECTION WITH A BANK SELECTED BY
THE CITY MANAGER, WHICH MAY BE CHANGED FROM TIME TO TIME, AND
WHICH SHALL BE THE BANK IN WHICH CITY FUNDS ARE DEPOSITED. THE SET-UP
FEE TO INITIATE COLLECTION MAY BE NEGOTIATED AS SPECIFIED IN
KMC 22.05.100(L), AND THE BUYER SHALL PAY THE ANNUAL COLLECTION FEES
FOR SUCH BANK COLLECTION.]
([L]k) The City Manager is authorized to negotiate a division of the costs of sale [LISTED IN
KMC 22.05.100(G) (H), (I), (J)AND (K) ]to a maximum of fifty percent (50%) of the required
costs being borne by the City, provided however that no costs of sale will be paid by the City
where a sale is negotiated at a price below [APPRAISED ]the fair market value of the land.
22.05.105 Terms for [F]Financing [S]Sale of City-Owned [L]Lands.
(a) In order to expedite and facilitate the sale of City lands, the City Manager is authorized to
accept terms for sales and may accept a note secured by a deed of trust for a portion of the
purchase price thereof, subject to the following restrictions:
(1) [IF THE SALE IS TO A LESSEE WHO HAS PLACED A LIEN FOR FINANCING UPON
THE LAND OR IMPROVEMENTS, THEN THE CITY MANAGER IS NOT AUTHORIZED
TO SELL THE LAND EXCEPT FOR TOTAL CASH PAYMENT, PROVIDED, HOWEVER,
THAT THE CITY MANAGER MAY ACCEPT A NOTE SECURED BY A DEED OF TRUST
SUBORDINATE TO THE EXISTING SECURITY INTEREST IF THE AMOUNT OF THE
NOTE THEREBY SECURED IS WITHIN THE DIFFERENCE BETWEEN THE FAIR
MARKET VALUE OF THE LAND WITH IMPROVEMENTS, AND THE SUM OF ALL
PRIOR SECURITY INTERESTS. THE SALE DOCUMENTS SHALL BE SUBJECT TO THE
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SAME RESTRICTIONS CONTAINED IN THE LEASE AS THE LEASE PROVIDES AT
THE TIME OF SALE.
(2)] Except for property sold by the City subsequent to foreclosure for delinquent taxes or
assessments, prior to making a determination to accept a note and deed of trust from a
prospective purchaser, the City [MANAGER] shall [SECURE] order a preliminary commitment
for title insurance and a review of the grantee index covering the party desiring to purchase the
land [FROM THE TITLE COMPANY IN THE LOCAL RECORDING DISTRICT]at the cost of
the party requesting to purchase the land, and no credit will be advanced on such sale if there are
any delinquent liens or unpaid judgments found in the title company report until any such
judgments or liens are paid and releases therefor have been filed.
([3]2) In the event of a credit sale, terms shall be approved by the City Council in the Ordinance
approving the sale, as follows:
(i) [T]The down payment required, which shall [BE DETERMINED BY THE CITY
MANAGER, BUT SHALL ]not be less than fifteen percent (15%) of the sales price[.]; and
(ii) The length of the note; and
(iii) A fixed or variable interest rate.
[(4) THE CITY MANAGER IS NOT AUTHORIZED TO ACCEPT TERMS FOR THE SALE
OF TAX-FORECLOSED LANDS UNLESS THE DOWN PAYMENT TO BE RECEIVED
THEREUNDER, OR OTHER SUMS APPROPRIATED FOR THE PURPOSE, ARE
SUFFICIENT TO MAKE IMMEDIATE PAYMENT TO THE KENAI PENINSULA
BOROUGH AND THE FORMER RECORD OWNER OF THE SUMS WHICH ARE, OR
MAY BECOME, DUE TO THEM PURSUANT TO THE PROVISIONS OF AS 29.]
[(B) IF THE CITY MANAGER DETERMINES THAT IT IS IN THE CITY’S INTEREST TO
SELL CITY LANDS, THE SALE SHALL BE EITHER A CASH TRANSACTION OR BY A
NOTE SECURED BY A DEED OF TRUST, SUBJECT TO SUBSECTION (A) OF THIS
SECTION, AND BY NO OTHER MEANS. THE NOTE AND DEED OF TRUST SHALL
CARRY TERMS AS FOLLOWS:
(1) THE TERM OF SUCH NOTE MAY BE SET BY THE CITY MANAGER, BUT IT
SHALL PROVIDE FOR MONTHLY PAYMENTS AND NOT EXCEED TWENTY (20)
YEARS UNLESS A LONGER PERIOD FOR A SPECIFIC SALE OF LAND IS APPROVED
BY RESOLUTION OF THE CITY COUNCIL.
(2) SUCH NOTE SHALL BEAR INTEREST AT A RATE TO BE DETERMINED BY THE
CITY COUNCIL BY RESOLUTION.]
22.05.110 Determination as to [N]Need for [P]Public [U]Use.
(a) Whether land shall be acquired, retained, devoted, or dedicated to a public use shall be
determined by ordinance which shall contain the public use for which the property is to be
dedicated, the legal description of the property, and the address or a general description of the
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property sufficient to provide the public with notice of its location. This requirement does not
apply to rights-of-way or easements dedicated through the City and Borough platting process.
(b) Whether land previously dedicated to a public use should be dedicated to a different public
use or should no longer be needed for public use shall be determined by the City Council by
ordinance, except in cases of vacation of rights-of-way or easements which may be determined
by resolution, either of which shall contain the new public use for which the property is to be
dedicated or the reason the land is no longer needed for public use, the legal description of the
property, and the address or a general description of the property sufficient to provide the public
with notice of its location.
[22.05.115 PROPERTY EXCHANGES.
THE COUNCIL MAY APPROVE, BY ORDINANCE, AFTER PUBLIC NOTICE AND AN
OPPORTUNITY FOR PUBLIC HEARING, THE CONVEYANCE AND EXCHANGE OF A
PARCEL OF CITY PROPERTY FOR PROPERTY OWNED BY ANOTHER PERSON
SUBJECT TO SUCH CONDITIONS AS COUNCIL MAY IMPOSE ON THE EXCHANGE,
WHENEVER IN THE JUDGMENT OF THE CITY COUNCIL IT IS ADVANTAGEOUS TO
THE CITY TO MAKE THE PROPERTY EXCHANGE.
22.05.120 PROPERTY SALE TO ADJACENT OWNERS.
THE COUNCIL MAY APPROVE, BY ORDINANCE, AFTER PUBLIC NOTICE AND AN
OPPORTUNITY FOR PUBLIC HEARING, THE SALE AND CONVEYANCE OF A
PARCEL OF CITY PROPERTY AT ITS APPRAISED VALUE TO THE OWNER OF
ADJACENT LAND WHENEVER, IN THE JUDGMENT OF THE CITY COUNCIL, THE
PARCEL OF LAND IS OF SUCH SMALL SIZE, SHAPE, OR LOCATION THAT IT COULD
NOT BE PUT TO PRACTICAL USE BY ANY OTHER PARTY AND, IN ADDITION
THERETO, WHERE THERE IS NO FORESEEABLE NEED OF THE LAND FOR ANY
FUTURE USE BY THE CITY.
22.05.125 GRANT OR DEVOTION.
THE COUNCIL, BY ORDINANCE, MAY WAIVE THE PROVISIONS OF THIS CHAPTER
AND LEASE, GRANT OR DEVOTE REAL PROPERTY NO LONGER NEEDED BY THE
CITY FOR PUBLIC PURPOSE TO THE UNITED STATES, THE STATE OF ALASKA, A
LOCAL POLITICAL SUBDIVISION OF THE STATE OF ALASKA, OR ANY AGENCY OF
ANY OF THESE GOVERNMENTS OR A NON-PROFIT CORPORATION, FOR A
CONSIDERATION AGREED UPON BETWEEN THE CITY AND GRANTEE WITHOUT A
PUBLIC SALE IF THE GRANT, DEVOTION OR LEASE IS ADVANTAGEOUS TO THE
CITY.]
22.05.130 Special Use [P]Permits.
The City Council may authorize the City Manager to grant special use permits for the temporary
use of real property owned by the City for a period not to exceed [FIVE (5)] one (1) year[S],
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without appraisal of the value of the property or public auction, for any purpose compatible with
the zoning of the land, and on such terms and for such rentals as the [C]Council shall determine.
22.05.135 Acquisition of [R]Real [P]Property.
(a) The City, by authorization of the City Council, expressed in a resolution for such purpose,
may lease, purchase or acquire an interest in real property needed for a public [USE] purpose on
such terms and conditions as the Council shall determine. No purchase shall be made until a
qualified independent appraiser has appraised the property and given the Council an
[INDEPENDENT ]opinion as to the [FULL AND TRUE ]fair market value [THEREOF ]of the
land unless the Council, upon resolution so finding, determines that the public interest will not be
served by an appraisal.
[(B) BECAUSE OF THE UNIQUE VALUE OF REAL PROPERTY, THE CITY NEED NOT
ACQUIRE OR LEASE REAL PROPERTY BY COMPETITIVE BIDDING.]
(c) Rights-of-way and easements may be accepted or issued by the City Manager after approval
by the City Council for utility lines and services of all types and for necessary rights -of-way
easements. This requirement does not apply to rights-of-way or easements dedicated through the
City and Borough platting process.
261
DRAFT
CITY OF KENAI
LAND MANAGEMENT PLAN
Draft: June 2019
262
263
CONTENTS
Executive Summary ....................................................................................................................................... 1
Acknowledgements ....................................................................................................................................... 2
Introduction and Background Information ................................................................................................... 3
City-Owned Parcels ................................................................................................................................... 3
Funds ......................................................................................................................................................... 3
Kenai Municipal Code ............................................................................................................................... 4
Kenai Comprehensive Plan and Land Use Plan ......................................................................................... 4
Leases ........................................................................................................................................................ 4
Lands Inventory ............................................................................................................................................. 5
Retain - Existing Public Facilities ............................................................................................................... 6
Retain - Public Purpose ............................................................................................................................. 8
Available for Lease or Sale ........................................................................................................................ 8
Available for Lease Only ............................................................................................................................ 8
Unavailable - Under Active Lease ............................................................................................................. 9
Tidelands ................................................................................................................................................... 9
Parcels for Further Study .......................................................................................................................... 9
Implementation Strategy ............................................................................................................................ 13
References .................................................................................................................................................. 14
Appendix A. Index ....................................................................................................................................... 15
Appendix B. Tables and Figures .................................................................................................................. 25
Appendix C. Public Meetings ...................................................................................................................... 26
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265
City of Kenai Land Management Plan 1
EXECUTIVE SUMMARY
PLACEHOLDER
266
City of Kenai Land Management Plan 2
ACKNOWLEDGEMENTS
City Council
Name
Name
Name
Name
Name
Name
Name
Planning and Zoning Commission
Name
Name
Name
Name
Name
Name
Name
City Staff
Name
Name
Name
Name
Name
Name
Name
Special Thank you
Name
Name
Name
Name
Name
Name
267
City of Kenai Land Management Plan 3
INTRODUCTION AND BACKGROUND INFORMATION
This land management plan describes current conditions of City-owned property and actions to retain,
improve, or dispose of property. The plan provides a lands inventory, description, and recommendations
for each parcel that was developed through a public process to allow for valuable input into the
disposition of City-owned lands.
CITY-OWNED PARCELS
The City of Kenai owns a total of 358 subdivided parcels of land which have been obtained from the
Federal Government of the United States, State of Alaska, Kenai Peninsula Borough, and private
donations.
FUNDS
Approximately 65 percent of the parcels owned by the City of Kenai are tied to the General Fund. The
approximately 35 percent remaining parcels are tied to the Airport Fund.
268
City of Kenai Land Management Plan 4
KENAI MUNICIPAL CODE
KENAI COMPREHENSIVE PLAN AND LAND USE PLAN
The 2016 Imagine Kenai 2030 City of Kenai Comprehensive Plan contains the Land Use Plan. This plan
describes land management specific to City-owned parcels, and the Land Use Plan describes a
generalized pattern of existing and desirable land use for all lands within the City.
LEASES
About 13 percent of City-owned parcels are under an active lease.
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City of Kenai Land Management Plan 5
LANDS INVENTORY
This section contains a comprehensive list of all parcels owned by the City of Kenai and data about each
parcel. The inventory will provide the input for land management decisions by the City. The following
fields have been populated for each parcel when they are applicable and the data is available:
Parcel Number: The assigned to the parcel by the Kenai Peninsula Borough
Address: If available, the physical address of the parcel
Fund: Denotes whether the parcel is within the City’s Airport Fund or General Fund
Facility: If applicable, lists any existing City facilities on the parcel
Map Thumbnail: Small map showing the aerial imagery for the parcel
Legal Description: Land description location of the written words delineating real property
Township/Range/Section: Refers to terms used in the Public Lands Survey System
Size: Given in acres and square feet
KPB Assessed Value: Kenai Peninsula Borough assessed value for current year taxes
Zoning District: Gives the City of Kenai zoning district for the parcel
Land Use Plan Classification: City of Kenai land use plan classification category for the parcel
Summary Recommendation: This field gives the staff recommendation for the parcel and is the
categorical basis for sorting parcels in the report
Detailed Description: In-depth description of the parcels, including its physical features and
development considerations
Detailed Recommendation: In-depth analysis and consideration of the best use for the parcel
Parcels have been placed into the following categories based on the Summary Recommendation:
Retain - Existing Public Facilities: A parcel with a public facility, typically a park or building
Retain - Public Purpose: A vacant parcel to be retained for a public purpose
Available for Lease or Sale: Parcel available for lease or to be purchased from the City
Available for Lease: Parcels available for lease from the City
Unavailable – Under Active Lease: Parcels with lessees in active lease agreements with the City
Tidelands: Parcels with leases of tidelands for shore fisheries
Parcels for Further Study: Parcels where further research or action is needed before a decision
to retain or dispose of the parcel may be made
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City of Kenai Land Management Plan 6
RETAIN - EXISTING PUBLIC FACILITIES
Parcel Number:
04701008
200 Spruce Street South
General Fund
Facility: Kenai Municipal Park, Little League Fields
Legal Description: Govt Lots 41-43, 60, 62-66, 83-
90, 105-112, 124-126, 133-135, 149-151, 159-161,
164-166 Excl that portion described as: S 0 deg 13
min E 77.88 ft & S 86 deg 5 min E 35.09 ft from N
1/4 corner Section 6 T5N R11W
Township/Range/Section: 6N, 12W, Section 25
Size: 72.21 acres (3,145,468 square feet)
2018 KPB Assessed Value: $7,980,500
Zoning District: Conservation (C)
Land Use Plan Classification: Parks, Recreation, &
Open Space, Institutional
Summary Recommendation:
Retain for a Public Purpose
Detailed Description: 33 separate Government Lots with portions of 7 additional lots make up this 45+ acre
parcel. A large swale is located in the center and lower east side of the parcel, with steep high bluffs on each
side. The drainage running through this swale (Richka Creek) drains from a large wetland complex to the north
and empties into Cook Inlet. The city wastewater treatment plant and its parking area is partially located on
Government Lots 164-166 of this parcel. The little league fields are substantially located on Government Lots
64, 84-89, 106-111, 125, 126. The community park facilities appear to span the upland portions of the remaining
lots. A small portion of the little league field development appears to encroach onto parcel 04701028, owned
by KPCCC Group Inc. The wastewater treatment plant encroaches into the 35-foot wide public ROW along the
west boundary. This ROW was dedicated to the public by document from the City in 1968 (Misc 30/154). It may
also encroach onto parcel 04701027, owned by Vern Lofstedt. The parking area extends into Government Lots
168, 169, 170, 171 in parcel 04701025, also city owned. Portions of Government Lots 43, 60, 66, 83 and 90 were
deeded to the State of Alaska Military Dept by the city in 1968, the location of the National Guard Armory.
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City of Kenai Land Management Plan 7
Parcel Number:
04701008
Detailed Recommendation: The Government Lots have been combined under one parcel number for ease of
assessing, although the government lots remain separate lots until they are replatted. This may be of use at
some point in a lease description or development of the property or if the city needs or wants to obtain new
parcel numbers. Three separate developments are located on the parcel and separation of the parcel into new
parcels with the individual government lots that contain those facilities, with the assignment of new separate
parcel numbers, would make inventory and management of the lands easier. The facilities on the parcel are
managed by two different city departments. Retention of the land contained in the multi-lot parcel is
recommended to control and maintain the drainage and to support the existing city development on the parcel.
An as-built of all development is also recommended, and vacation of the portion of S Forest Drive ROW
containing the encroachment should be pursued. This portion of the ROW would not support construction of a
road for vehicular traffic due to steep terrain. If the as-built shows encroachments into any surrounding private
parcels, those should be resolved with easements or other means. It should be verified that all uses of the parcel
comply with the zoning.
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City of Kenai Land Management Plan 8
RETAIN - PUBLIC PURPOSE
AVAILABLE FOR LEASE OR SALE
AVAILABLE FOR LEASE ONLY
Parcel Number:
04322008
235 Trading Bay Road
Airport Fund
Legal Description: Lot 8, Block 2, Cook Inlet
Industrial AirPark Subd
Township/Range/Section: 6N, 11W, Section 32
Size: 1.21 acres (52,708 square feet)
2018 KPB Assessed Value: $128,900
Zoning District: Central Mixed Use (CMU)
Land Use Plan Classification: Central Commercial
Summary Recommendation:
Available for Lease Only
Detailed Description: This is a 1.21 acre parcel created by a 1966 subdivision. A deed of release was recorded in
1973, allowing the lease or sale of the lots for other than airport purposes. The parcel is now located in the
Airport Reserve, and is available for lease, not sale. Improvements to the infrastructure in the subdivision (water,
sewer, pavement, sidewalks, etc) were funded by the US Department of Commerce in 1973, with a requirement
that the city retain ownership of the improvements for 30 years. Funds generated by lease go to the airport fund.
The parcel is surrounded by privately owned lands, most of which are developed. The parcel was one of three
that were leased to Sea-Land Freight Service, Inc in 1975 for one year; the amended purpose was for 'terminal
facilities, warehousing, storage and other related activities inherent in the operation of a transportation facility'.
It appears that the parcel was never developed. In 1978, a 99-year lease was issued for the same three lots (6, 7,
8 Block 2) to Gerald Browning and Glen Henry for 'diesel and automotive repair and parts sales'. The required
development proved to be economically unfeasible and at the request of the lessees, the lease was rescinded in
1980. A 99 year lease for Lot 8 Block 2 was granted to Julie Latta in 2002 to be developed to 'provide additional
lodging facilities for the proposed Kenai Airport Lodge'. Two amendments were granted to extend the
completion date for required construction; the parcel was not developed and a mutual rescission of the lease
was recorded in 2007.
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City of Kenai Land Management Plan 9
Detailed Recommendation: This parcel's central location, along with the city services and the close proximity to
the airport, make it attractive for lease. Costs for development of the lot should be fairly reasonable - it is level
with no wetlands and is easily accessible. If any site development was undertaken in association with the
previous leases, that could further enhance the lot's attraction. City services and paved access are already in
place.
UNAVAILABLE - UNDER ACTIVE LEASE
TIDELANDS
PARCELS FOR FURTHER STUDY
Parcel Number:
04301102
12751 Kenai Spur Highway
General Fund
Legal Description: Tract F, Dena’ina Point Estates
Subdivision
Township/Range/Section: 6N, 12W, Section 36
Size: 2.24 acres (97,574 square feet)
2018 KPB Assessed Value: $48,800
Zoning District: Suburban Residential (SR)
Land Use Plan Classification: Mixed Use
Summary Recommendation:
Future Determination for Use
Detailed Description: This 2.24 acre tract fronts on the Kenai Spur Highway. There is a 52 acre private parcel
between this tract and the Inlet. The tract has no bluff frontage and is located approximately 140 feet from the
edge of the bluff. This subdivision of city owned land was contracted by the city in 1984 and created 29 larger
acreage tracts, most of which were intended for resubdivision and development. The city still owns 14 tracts in
the subdivision. Water and sewer service extends along the Kenai Spur Hwy, with two stubouts to the boundary
of the subdivision. The roads in the subdivision are not constructed. None of the lots have been developed, with
the exception of Tract A-5 which was resubdivided, along with adjoining property, into the Augustine Addition.
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City of Kenai Land Management Plan 10
Detailed Recommendation: A 1984 ordinance retained this tract for public purpose; that restriction was reversed
by a 1987 ordinance which designated the tract suitable for sale. The city owns the long narrow tract to the east,
for a total highway frontage of over 1700 feet. The 52 acre privately owned parcel to the south has no highway
frontage. There is substantial residential development to the east of the adjoining 52 acre private parcel. It may
be beneficial to retain Tract F until the 52 acre private parcel is considered for development - the highway
frontage provided by the city owned lands could be beneficial to an adjoining developer in providing alternate
ingress/egress for any future development. Development of the large private parcel could also affect
development options for the subject parcel. The subject parcel is suitable for sale and development at this time;
retention of the long narrow highway frontage lot for access to the large private parcel could protect future
access issues. The RS zoning may limit or influence development potential, with most commercial development
requiring a conditional use permit.
275
City of Kenai Land Management Plan 11
Parcel Number:
04312003
1397 Kenai Spur Highway
General Fund
Legal Description: Tract A, Five Iron Highs
Subdivision
Township/Range/Section: 6N, 11W, Section 31
Size: 2.5 acres (108,900 square feet)
2018 KPB Assessed Value: $83,800
Zoning District: Conservation (C)
Land Use Plan Classification: Parks, Recreation, &
Open Space
Summary Recommendation:
Retain for a Public Purpose
Detailed Description: This is a 2.5 acre government lot. The large cleared area on Lot 73 adjacent to the north
boundary extends onto this lot. Scott Curtin provided the information that this is one of the city's storm water
detention ponds, serving Forest Avenue and Woodlands Subdivision areas. The pond allows silt and debris to
settle before the water drains into Richka Creek and eventually flows into the Inlet. The settling area is located
at the top of the steep bank that drops off to Richka Creek to the east. A clearing project to remove accumulated
growth is scheduled as maintenance for 2019. Access to the northwest corner of this lot is from Third Avenue, a
half dedication. A steep bank cuts through the middle of the parcel and extends down to Richka Creek in the
easterly portion of the parcel.
Detailed Recommendation: It is recommended that the city retain the entire lot for creek protection and
maintenance. Although the majority of the settling pond is currently located on the lot to the north, expansion
or maintenance of the pond may require additional use of the subject lot. The creek provides drainage from the
large wetland complex to the north. The steep slope down to the creek, along with the creek and its corridor,
occupy approximately 2/3 of the eastern portion of the lot and limit its development potential. If the city decides
to connect the dedications of Cheryl Street and Third Avenue (see Lot 73: 04308008), a portion of the dedication
at the intersection will need to come from this lot.
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City of Kenai Land Management Plan 12
Parcel Number:
04938215
1100 Lawton Drive
General Fund
Legal Description: Tract A, Five Iron Highs
Subdivision
Township/Range/Section: 5N, 11W, Section 3
Size: 15.48 acres (674,309 square feet)
2018 KPB Assessed Value: $183,900
Zoning District: Recreation (R)
Land Use Plan Classification: Parks, Recreation, &
Open Space
Summary Recommendation:
Retain for a Public Purpose
Detailed Description: This is a 15.5 acre tract resulting from subdivision of portions of 4 government lots. There
is a steep bluff in the southerly portion of the parcel, dropping off to almost 5 acres which is classified freshwater
forested/shrub wetland on the NWI. Use or transfer of the parcel is restricted under a federal grant (LWCF 02 -
00119). The parcel is located between the Oilers Ballfield and the golf course, fronting on Lawton Drive
(constructed) and S Tinker Lane (not constructed adjacent to this parcel.
Detailed Recommendation: Retention of the land by the city, or transfer to another public entity with the
recreational use restriction attached, is required by the LWCF funding. It does not appear that this tract was
excluded from that LWCF project area. This restriction should be verified. There may be recreational lease
opportunities for the lot, including winter use associated with the ski trails on the golf course property or summer
use associated with golf course expansion and amenities. With the nearby schools and residential areas, public
park development would also be an option.
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City of Kenai Land Management Plan 13
IMPLEMENTATION STRATEGY
Short Term (1 Year)
Middle Term (1-3 Years)
Long Term (3+ Years)
278
City of Kenai Land Management Plan 14
REFERENCES
2016 Imagine Kenai 2030 City of Kenai Comprehensive Plan
279
City of Kenai Land Management Plan 15
APPENDIX A. INDEX
Parcel Number City Facility Category Inventory Page
Number
03901065
03902243
03903421
03905203
03905204
03905205
03905322
03905323
03905324
03905325
03905327
03905328
03905329
03905330
03905331
03906141
03906309
03906310
03906311
03907009
03910107
03910109
03910111
03910112
03910208
03910209
03910211
03910304
03910308
03910309
03910310
03910311
03910312
03910321
03910322
03910323
03910324
03911003
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City of Kenai Land Management Plan 16
Parcel Number City Facility Category Inventory Page
Number
03911009
03911010
03911011
03911012
03911013
03911014
03911015
03911016
03913112
03913113
03913114
03913115
03913117
03913118
03913202
04101004
04101013
04101021
04101022
04101111
04101112
04101113
04101114
04101115
04103009
04103019
04103034
04103040
04103047
04103051
04103059
04106201
04106202
04108003
04108013
04108016
04108018
04108019
04301029
04301033
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City of Kenai Land Management Plan 17
Parcel Number City Facility Category Inventory Page
Number
04301034
04301038
04301039
04301040
04301041
04301042
04301101
04301102
04301301
04301302
04301401
04301402
04301403
04301404
04301501
04301502
04301503
04301504
04301601
04301701
04301804
04304004
04304011
04304017
04305017
04305035
04308004
04308008
04308009
04310039
04312003
04312004
04312007
04312008
04314009
04314010
04314103
04314104
04315011
04315012
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City of Kenai Land Management Plan 18
Parcel Number City Facility Category Inventory Page
Number
04315013
04316006
04316008
04316017
04317003
04317037
04317038
04318043
04318044
04322008
04322020
04322021
04322023
04323013
04323014
04323017
04323031
04324002
04324003
04324004
04324005
04324006
04324010
04324011
04324012
04324015
04324016
04324017
04324018
04324019
04324020
04324021
04324024
04324025
04324026
04324027
04324028
04327010
04327014
04327015
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City of Kenai Land Management Plan 19
Parcel Number City Facility Category Inventory Page
Number
04327019
04327020
04327021
04327028
04327029
04327030
04327031
04327032
04327033
04327034
04327035
04327036
04331022
04331036
04333001
04333006
04333007
04333008
04333009
04333010
04335001
04336001
04336002
04336003
04336004
04336016
04336017
04336018
04336024
04336028
04336029
04336033
04336034
04336035
04336036
04336037
04336038
04336039
04336040
04336043
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City of Kenai Land Management Plan 20
Parcel Number City Facility Category Inventory Page
Number
04336046
04336047
04336048
04337001
04337002
04337004
04337005
04338001
04338002
04338003
04338004
04339006
04339007
04339026
04339027
04339052
04339053
04339054
04501003
04501022
04501023
04501030
04501031
04501032
04501033
04501034
04501035
04501036
04501037
04501038
04501039
04501040
04501041
04501042
04501043
04501044
04501045
04501046
04501047
04501048
285
City of Kenai Land Management Plan 21
Parcel Number City Facility Category Inventory Page
Number
04501049
04501050
04501051
04501052
04501053
04501054
04501055
04501056
04501057
04506006
04506008
04513025
04521047
04701008 Kenai Municipal Park,
Little League Fields Retain - Public Facilities
04701018
04701019
04701024
04701025
04705101
04705205
04705215
04705216
04705501
04705506
04705510
04705602
04705701
04705805
04705806
04705807
04706119
04706129
04706133
04706134
04707405
04707408
04708101
04708104
04708106
286
City of Kenai Land Management Plan 22
Parcel Number City Facility Category Inventory Page
Number
04708107
04708108
04708109
04708110
04708111
04708201
04708202
04708301
04708305
04708309
04708402
04708405
04708406
04708503
04708504
04708612
04709301
04709302
04709304
04709305
04709307
04710105
04710106
04710301
04710311
04711308
04711309
04711310
04711311
04711312
04711502
04711602
04711901
04711902
04711903
04711907
04716001
04716002
04716005
04901016
287
City of Kenai Land Management Plan 23
Parcel Number City Facility Category Inventory Page
Number
04901017
04901022
04901062
04901121
04901124
04901125
04901130
04901131
04901132
04901403
04901404
04904002
04904029
04904031
04904086
04910014
04910053
04910054
04910105
04910106
04910107
04910108
04911010
04911011
04912065
04916017
04926125
04926126
04926210
04926216
04935006
04937002
04938052
04938215
04938216
04938217
04945002
04945003
04945004
04945005
288
City of Kenai Land Management Plan 24
Parcel Number City Facility Category Inventory Page
Number
04945009
06361018
289
City of Kenai Land Management Plan 25
APPENDIX B. TABLES AND FIGURES
290
City of Kenai Land Management Plan 26
APPENDIX C. PUBLIC MEETINGS
Documentation of public outreach
291
City of Kenai Land Management Plan 27
APPENDIX D. MAPS
Appendix of maps in 11x17 sizes.
292
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Jeff Tucker, Fire Chief
DATE: June 10, 2019
SUBJECT: Fire Department Mid-Month Report - May
____________________________________________________________________________
In May the department responded to 134 call for service as compared to 140 calls in May 2018.
This is a 7.4% increase calls for service as compared to the same year to date time frame in 2018.
After almost 24 years of service to the City and the Kenai Fire Department, Captain James Dye
retired from the department. A promotional process to fill his position will take place later in June.
At the pre-build conference for our new fire engine in April. 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. Some modifications to the
design including deletions and additions were reviewed and made. A change order in the amount
of $12,431.00 was made to the engine. We are looking for to many years of service with this
engine. Delivery at this time is planned for mid-November.
All shifts participated in walk-throughs of the fish processing plants in Kenai as the plants ramp-
up operations for the summer. This allows newer firefighters to see the layout of the plants and
for senior firefighters to note any changes in operation.
On May 31st members of the Kenai and Nikiski Fire Departments participated in a large scale
table-top drill with members of the State of Alaska Division of Forestry at the Kenai Fire Station.
The participants ran through a mock scenario of a small fire that develops into a major wildland
fire. Key factors that were looked at were communications, capabilities, strategies and tactics. It
was a great training activity that all participants are looking forward to repeating in the future.
Fire Chief Jeff Tucker attended the Western Fire Chiefs Association Board of Directors meeting
and Presidents Forum in Sisters, Oregon.
293
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Bondurant, Airport Manager
DATE: June 7, 2019
SUBJECT: June Mid-month Report
2018 Terminal Rehabilitation Project – Construction: This project is well under way; the Upper
Deck reopened on June 5, 2019; Grant Aviation moved into their new space, RAVN was
temporarily relocated to the Administrative Office area, and the car rentals will be moved into their
new spaces on Tuesday, June 11.
2019 Airfield Marking, Crack Sealing, & Pavement Repair – This project was bid and awarded at
the June 5, 2019 City Council meeting. The project will start around June 15, 2019.
2019 Alaska Fire Training Facility Rehabilitation – A draft preliminary design report was received
the week of June 3rd and is being reviewed by City Administration. When the design is complete,
the project will be bid with construction to start in the late fall.
2019 Acquire Aircraft Rescue & Firefighting Trucks (ARFF) – The two ARFF trucks currently used
for training at the Alaska Fire Training Facility were purchased in 1998 and are due for
replacement. Airport Manager is working with the FAA to secure funding to replace the trucks.
In-house Activities – Airport Operations continues summer maintenance at the terminal and the
airfield. The crew completed the cleaning of the slips at the float plane basin, are brush cutting
along the fence line and preparing for the air fair.
FAA Certification Inspection – The annual FAA 139 certification inspection will be held June 25-
27, 2019.
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.
294
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: June 10, 2019
SUBJECT: May 2019 Monthly Report
This month the Kenai Animal Shelter took in 115 animals. Animal intake and disposition:
DOGS:
INTAKE 34 DISPOSITION 31
Waiver 11 Adopted 17
Stray 14 Euthanized 1
Impound 3 Claimed 11
Protective Custody 1 Field Release 0
Quarantine 0 Transferred to Rescue 2
Other Intakes 5 Other Dispositions 0
CATS:
INTAKE 79 DISPOSITION 60
Waiver 69 Adopted 23
Stray 9 Euthanized 3
Impound 0 Claimed 1
Protective Custody 1 Field Release 0
Quarantine 0 Transferred to Rescue 33
Other Intakes 0 Other Dispositions 0
OTHER ANIMALS:
INTAKE 2 DISPOSITION 2
Bird 2 Bird 2
DOA: 2 OTHER STATISTICS: Dog 2 Licenses (City of Kenai Dog Licenses) 12
Cat 0 Microchips (Dog and Cat) 10
295
Page 2 of 2
Animal Control Mid-Month Report
1 Citations
3 Animal dropped with After Hours (days we are closed but cleaning and with KPD)
13.45 Volunteer Hours Logged
55 Animals are known borough animals
21 Field Investigations & patrols
Statistical Data:
324 2017 YTD Intakes
298 2018 YTD Intakes
361 2019 YTD Intakes
296
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: June 11, 2019
SUBJECT: Finance Department, June 2019 Mid-month Report
With the passage of the FY20 Budget at the May 15th Council Meeting, the department
has been making changes and compiling the document for printing. The document is
expected to be available for distribution next week. The Department’s focus will now be
switching to closing FY19 and completion of the City’s Comprehensive Annual Financial
Report. This process includes closing of the FY19 financial records, fiscal year end grant
reporting and finally financial statement preparation. The annual audit is scheduled for
the week of October 7th.
The 2019 Personal Use Fishery is quickly approaching and we will be working with the
Park’s Department to train our seasonal help to work in the dipnet shacks. We have been
working closely with our software programmer to update the shack attendant software
and to update the dipnet app.
The department, working with Stormy in Human Resources, is completing open
enrollment for employee benefits. This process included meetings with employees, staff,
and the City’s broker, USI Insurance.
Quotes for property, liability, airport, marine and workers compensation insurance have
been received and the process of binding of coverage for FY2020 is underway. Included
in binding this coverage is the issuance of municipal official bonds for myself, the City
Manager, and the City Clerk. Bonding for these three positions remains at the same level
previously established by Council, $40,000 for the Finance Director, $2,000 for the City
Manager, and $10,000 for the City Clerk. In addition to these amounts, the City’s general
liability policy carries $1,000,000 of employee dishonesty coverage for all City employees.
If Council wishes to change the bonding amounts for any position just let me know and I
will obtain prices and facilitate the change. 297
MEMORANDUM
TO: Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Jo Joiner
DATE: June 7, 2019
SUBJECT: Library Mid-Month Report
______________________________________________________________________
May Circulation Figures
Adult Fiction 1,329 Internet Access 718
Adult Non-Fiction 970 iPad use 160
Young Adult Fiction 200 Games 6
Periodicals 108 Room Booking 126
Juvenile Fiction 367 Music 40
Juvenile Non-Fiction 307 DVDs 1,896
Easy Fiction 641 Audio books 76
Easy Non-Fiction 172 Miscellaneous 56
Interlibrary Loan 1 Computer Programs
Books – Consortium 424 Media – Consortium 142
Total Print 4,519 Total Non-Print 3,220
Total Circulation 5/19 7,739 Downloadable Audio 764
Total Circulation 5/18 8216 Downloadable EBooks 594
% change -6% % change in downloadable +26%
In-House circulation 402
298
Page 2 of 2
Library Mid-Month Report
Library Door Count……. 7,598
Income
Fines $ 310.75
Xerox 0
Lost/Damaged 0
Test Proctoring Fee 20.00
Printing 196.50
Other .00
Total income $ 527.25
In May 9 volunteers worked about 48 hours. There were 15 children’s programs with 295 total in
attendance, and 21 adult and family programs with 101 attendees. James offered tours to school groups
with a total of 620 children coming through the building. James also addressed an assembly of 400
children at K-Beach elementary to talk about our summer reading program. In May we ordered 2
interlibrary loan items not available through the consortium and received 2 items, we returned 0 items
and loaned 9 items to other libraries who are out of state or not in the consortium.
Library Cards Issued May
Kasilof 2
Kenai 33
Nikiski 13
Non-Resident 3
Other Peninsula 0
Soldotna 3
Sterling 1
Total 55
299
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: June 11, 2019
SUBJECT: Planning and Zoning May 2019 Report
____________________________________________________________________________
Below are a summary of activity in May 2019 for the Planning and Zoning Department.
Planning and Zoning Commission Agenda Items and Resolutions
The Planning and Zoning Commission approved of a transfer of conditional use permit for surface
extraction of natural resources and recommended approval one change to Kenai Municipal Code:
• Resolution PZ2019-12 – Application for Transfer of Conditional Use Permit PZ15-10 for
the Operation of a Gravel Pit for Extraction of Natural Resources, from Michael S. Brown,
Transferor, to BMBC, LLC, Transferee, located at 601 Childs Avenue, Kenai, Alaska
99611; further described as Tract 3, Jaynes Subdivision Big Mikes Addition
• Resolution PZ2019-16 – Recommending the Kenai City Council Amend 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
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 attend a board meeting for the Alaska Chapter of the American Planning
Association.
300
Page 2 of 2
Planning and Zoning Mid -Month Report
The temporary lands staff-person is making progress researching City-owned lands, which will be
used to create a Land Management Plan. The City Planner created an initial layout for the Land
Management Plan.
The first TRASHercise lunch walk of the summer was held on May 22, 2019.
Plans and Reports
The City Planner attended a meeting to review goals for the Kenai Peninsula Coordinated Public
Transit-Human Services Transportation Plan.
Code Enforcement
3 cases were opened in May 2019:
• 2 – Junked or Abandoned Vehicles
• 1 – Garbage
301
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Robert J. Frates, Parks & Recreation Director
DATE: June 11, 2019
SUBJECT: Mid-month Report – June 2019
____________________________________________________________________________
Our summer crew members began June 3rd. Training included one day of class time and a full
day of field training. Everyone is settling into their role and increasing their familiarization with
areas maintained. I am really pleased with the team assembled to date.
Most of the larger flower beds were planted on June 1st during the volunteer plant day. The
gardener is wrapping up planting of remaining beds.
Alaska Department of Fish & Game will be providing the City with two more interpretive display
signs. The signs were designed for the Kenai River Flats Boardwalk along Bridge Access Road.
The Kenai Little League and Kenai Softball Association are both up and running. American Legion
will be using our large field on a limited bases this season and possibly during the Bill Miller
Tournament, if needed. The 4th July Firecracker Tournament will be starting on July 5 this season
and playing through Sunday. Local soccer programs are in full swing as well.
Staff posted new signs at the south end of Municipal Park encouraging folks to respect
neighborhood by keeping noise to a minimum. The volleyball court and basketball court has seen
increased use and with that some noise complaints.
The Kenai Wildwood inmates along with staff member Ed Brusven, cleaned up a few more debris
piles throughout town. Areas tackled were Millennium Square, woods behind Olga’s Jewelry,
behind Weaver Brothers (near adult softball fields), along Kenai Spur Highway and end of Float
Plan Road. A total of 1.65 tons were collected and hauled to the landfill.
The Wildflower Garden off Lawton Dr. was hydro-seeded June 6th.
302
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: June 10, 2019
SUBJECT: Police & Communications Department Activity – May 2019
Police handled 773 calls for service in May. Dispatch received 265 9-1-1 calls. Officers made
75 arrests. Traffic enforcement resulted in 241 traffic contacts and 101 traffic citations. There
were 3 DUI arrests. Officers investigated 7 motor vehicle crashes. There were no collisions
involving moose. There were no collisions involving drugs or alcohol.
May training included: The KPD officer on the SERT team started two weeks of training. One
officer attended a two week homicide and death investigation class in North Pole. One
supervisor attended a week long police supervision course in Oregon.
The police department is taking a number of steps to continue handling high call volumes with
ongoing staffing vacancies: The capability for online reporting was initiated through the City
website, the KPD officer was withdrawn from the regional drug task force, and the department is
anticipating not being able to sustain a school resource officer for the 2019-2020 school year.
In addition to handling police calls in various schools, the School Resource Officer taught alcohol
education classes at KCHS. The SRO also participated in Bike Rodeos at both Mountainview
Elementary and Kaleidoscope Elementary Schools.
3275
1178
3460
1284
3085
1369
0
1000
2000
3000
4000
Total Police Service Calls 911 Calls Received
2019(Jan 1 - Apr 30)2018(Jan 1 - May 31)2017(Jan1 - May 31)
303
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: June 10, 2019
SUBJECT: May 2019 Monthly Report
Congregate Meals Served (Dining Room) 1291
Home Delivered Meals 1562
Volunteer Hours (36 individuals)
561
Unassisted Transportation Rides 333
Assisted Transportation Rides 158
Social Security Video Service 47 individuals
Senior Center Rentals 2
Total Events Sign Ins (through MySeniorCenter) 2595
Total Unduplicated Participants (through MySeniorCenter) 285
May activities highlights included:
• No Host Dinner to Golden International Chinese Restaurant. This was attended by 25
seniors for wonderful food and great fellowship.
• The Mother’s Day Luncheon on Friday, May 10 also included a Country Store to help
raise funds for our Craft Room. Beautiful items were made and donated by our quilters
and crafters! The graduating class from Mount Carmel Christian School in Luray, Virginia
served lunch and provided entertainment during the noon hour.
• Aurora Borealis’ First Graders brought their lunches and read books to seniors during
the noon hour.
• The VFW and the American Legion Posts honored us with a color guard and Memorial
tributes for a pre-Memorial Day Celebration.
• The Annual Walker/Roller and Health Fair was a great success with 23 participants,
ages 60-95 for the walk. We had 11 vendors from around the area for the Health
Information Fair. 304
PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW
COUNCI L MEETI NG O F: JUNE 19, 2019
VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT
SATORI GROUP ASBESTOS TESTING SAFETY,WWTP PROF. SERVICES 5 ,190.00
MOORE'S LANDSCAPING WILDFLOWER HYRO-SEEDING RECREATION REPAIR & MAINT. 2 ,500.00
LN CURTIS & SONS FIREFIGHTER GEAR FIRE OPERATING SUPPLIES 7 ,310.20
SUPERIOR ELECTRIC MOTOR FLYGT PUMP REPAIR SEWER REPAIR & MAINT. 3 ,859.40
NORTHERN SECURITY SUPPLY BEAN BAG LAUNCHER POLICE SMALL TOOLS 5 ,000.00
SAELIG COMPANY FORENSIC ENCLOSURE POLICE SMALL TOOLS 3 ,230.55
KENAI NEON SIGN CO. FIELD OF FLOWERS SIGN AIRPORT OPERATING SUPPLIES 2 ,505.81
305
306
307
308
309
310
311
312
313
314
315
JUNE 19, 2019
CITY COUNCIL MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED REVISIONS TO THE AGENDA/PACKET:
ACTION ITEM REQUESTED BY
Add to item D.8. Resolution No. 2019-41
• Exhibit A – Fee Schedule City Manager
Add to item J.1. City Manager’s Report
• Public Works Midmonth Report City Manager
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: June 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 51% complete to date. Inside the facility
Budget and Avis Car Rentals have moved into their newly finished spaces, as well as Grant
Airlines within Airline Tenant space 2. See photos below. On the exterior the roofing is now
85% complete. Structural Steel for the new arrival is now underway. Project Completion date
remains scheduled for February 2, 2020. The A/E Team and Contractor have processed
roughly 98% of the required submittals, as well as responding to 205 RFIs to date. The project
is proceeding well.
Budget Car Rental Grant Airlines
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. The project has been proceeding well, the associated electrical
work is 85% complete, carpeting replacements are 30% complete, painting 95% complete.
Anticipating final completion in August 2019.
• 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. Submittals are being finalized, equipment has been placed
on order. There will be a lull in the project while we wait for the major components of the
project to be built and arrive on site. Photos below show the building prepped for the removal
of the existing units. Additionally City staff has been performing other maintenance including
the refinishing of the existing pump house building with a fresh coat of paint.
Blower Building prepped for removal pump house building painted
• Dock repair – The City Dock received some new damages as a result of the November 30,
2018 Earthquake. Public Works and Finance are coordinating with the insurance company
to complete an Engineer’s assessment of the damages. Anticipating the current project
documents being modified to account for the new damages. Insurance company and
engineer will be on site 6/21 to further inspect the property from the water.
Page 3 of 4
Mid-Month Report
• Recreation Center Improvements – Grant extension was requested to allow additional time to
coordinate with other projects. Work scope will be finalized in early August, improvements
beginning in September.
• Kenai Cemetery Expansion 2018 – Project Documents were recently finalized. The Public
Works Department is completing a majority of this work in house. Storm Water Protection
Plan has been developed and submitted with the state. Clearing of the site is now complete,
survey staking is now in place.
• Peninsula Avenue Bluff Erosion 2018 – Design Documents are now 100% complete. Project
will bid in late July.
• 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. The Preliminary
Design Report was received on June 4, 2019 detailing the design teams findings from May’s
site visit.
• Kenai Municipal Airport Crack Seal and Pavement Marking – The City released a formal
Invitation to Bid on May 7, 2019 with Bids received on 5/28/19. Two Bids were received with
Northwest Contracting dba Pacific Asphalt being the lowest responsive responsible bidder at
Page 4 of 4
Mid-Month Report
$713,998.50. The project is currently working through grant acceptance and anticipating a
Notice to Proceed within the next few weeks.
• 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 – QAP was awarded the project.
Signage was posted the week of June 10th, clearing of the right of ways and directional boring
of utilities is actively underway. DOT advises final asphalt for both the new road and bike path
will not be until May/June 2020.
Kenai City Council Meeting Page 1 of 4
June 19, 2019
ACTION AGENDA
KENAI CITY COUNCIL – REGULAR MEETING
JUNE 19, 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. Ordinance No. 3069-2019 – Appropriating FY2019
Budgeted Funds for Municipal Roadway Improvements in the Municipal Roadway
Improvements Capital Project Fund for Future Roadway Projects. (Administration)
2. ENACTED UNANIMOUSLY. Ordinance No. 3070-2019 – Authorizing a Budget
Transfer in the General Fund, Decreasing Estimated Revenues and Appropriations in
the Senior Citizen Special Revenue Fund and Appropriating FY2019 Budgeted
Amounts in the Senior Center Improvement Capital Project Fund for Carpet
Replacement. (Administration)
3. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3071-2019 - Increasing
Estimated Revenues and Appropriations in the General, Airport Special Revenue,
Personal Use Fishery Special Revenue, and Senior Citizen Special Revenue Funds;
Authorizing the Binding of Insurance Coverage for the City for the Period of July 1,
2019 through June 30, 2020; and Authorizing Execution of a Three-Year Agreement
for Insurance Coverage. (Administration)
a. Motion for Introduction
b. Motion for Second Reading (Requires a Unanimous Vote)
c. Motion for Adoption (Requires Five Affirmative Votes)
Kenai City Council Meeting Page 2 of 4
June 19, 2019
4. ADOPTED UNANIMOUSLY. Resolution No. 2019-37 - Authorizing the City Manager
to Enter Into an Automated Teller Machine (ATM) Concession for the Kenai Municipal
Airport. (Administration)
5. ADOPTED UNANIMOUSLY. Resolution No. 2019-38 – Amending City Council
Policy 2017-01, Procedures for the Use and Management of City Issued Mobile
Devices, to Provide Procedures for Planning and Zoning Commission Use and Make
Other Housekeeping Amendments. (Council Member Knackstedt)
6. ADOPTED UNANIMOUSLY. Resolution No. 2019-39 - Authorizing the Transfer of
Funds from the General Fund Library Department to the General Fund Buildings
Department; and Authorizing the Issuance of a Purchase Order in the Amount of
$16,795.00 for the Replacement of ADA Automatic Door Operators at the Library.
(Administration)
7. ADOPTED UNANIMOUSLY. Resolution No. 2019-40 – Authorizing a Budget
Transfer in the General Fund – Police Department for the Purchase of a Forensic
Investigation Tool. (Administration)
8. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-41 – Authorizing
a Facility Management Agreement with the Boys & Girls Club of the Kenai Peninsula,
Inc. for the Operation and Management of the Kenai Recreation Center in the Amount
of $130,000 Per Year. (Administration)
9. ADOPTED UNANIMOUSLY. Resolution No. 2019-42 – Awarding an Agreement for
Providing and Servicing Portable Restrooms and Dumpsters on the North and South
Kenai Beaches, Including Portable Restrooms at the City Dock, During the 2019
Personal Use Fishery. (Administration)
10. ADOPTED UNANIMOUSLY. Resolution No. 2019-43 – Awarding An Agreement For
Providing And Servicing Road Accessible Dumpsters At The End Of South Spruce
Street, Kenai Little League Parking Lot And Kenai City Dock During The 2019 Personal
Use Fishery. (Administration)
11. ADOPTED. Resolution No. 2019-44 - Supporting Kenai Peninsula Borough
Ordinance 2019-11, Repealing KPB 5.18.430(F) which Requires Voter Approval to
Increase the Sales Tax Cap. (Vice Mayor Navarre)
E. MINUTES
1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of May 15, 2019
2. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of June 5, 2019
F. UNFINISHED BUSINESS
1. ENACTED. 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)
Kenai City Council Meeting Page 3 of 4
June 19, 2019
[Clerk’s Note: This Item was Postponed from the June 5 Meeting to This Meeting; A
Motion to Enact is On the Floor]
• Substitute Ordinance No. 3068-2019 – Amending Kenai Municipal Code
14.20.320 – Definitions, and Implementing a Moratorium Prohibiting Onsite
Consumption of Marijuana at Retail Marijuana Stores Requiring an Onsite
Consumption Endorsement Until July 1, 2021.
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Bills to be Ratified.
(Administration)
2. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Purchase Orders
Exceeding $15,000. (Administration)
3. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Non-Objection to
the Renewal of a Marijuana Retail Store License for Cook Inlet Cannabis Company,
D/B/A East Rip. (City Clerk)
4. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Special Use Permit
to Alaska Air Fuel, Inc. for Aircraft Loading and Parking on the Apron. (Administration)
5. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Special Use Permit
to Crowley Fuels, LLC for Aircraft Loading and Parking on the Apron. (Administration)
6. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Special Use Permit
to Empire Airlines, Inc. for Aircraft Parking on the Apron. (Administration)
7. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Special Use Permit
to Everts Air Fuel, Inc. for Aircraft Loading and Parking on the Apron. (Administration)
8. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Special Use Permit
to United Parcel Service Company for Aircraft Loading and Parking on the Apron.
(Administration)
9. APPROVED UNANIMOUSLY. Action/Approval – Special Use Permit to James
Doyle d/b/a Weaver Brothers for Truck and Trailer Storage. (Administration)
10. APPROVED UNANIMOUSLY. Action/Approval – Special Use Permit to Alaska
Salmon Fertilizer for Filet Services to Collect Fish Cleaning Waste. (Administration)
11. APPROVED UNANIMOUSLY. Action/Approval – Confirm Mayoral Nomination for
Recommendation of City of Kenai Representative to Kenai Peninsula Borough
Planning and Zoning Commission. (Mayor Gabriel)
12. Discussion – Land Sale and Leasing Policies and Procedures. (Administration)
H. COMMISSION/COMMITTEE REPORTS
Kenai City Council Meeting Page 4 of 4
June 19, 2019
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
1. Discussion of Kenai Visitor Center Management a Matter of Which the Immediate
Knowledge may have an Adverse Effect upon the Finances of the City
[AS44.62.310(c)(1)].
M. PENDING ITEMS – None.
N. ADJOURNMENT
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INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review
2. Federal Energy Regulatory Commission Notice of Intent – Kenai LNG Cool Down
Project
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.