HomeMy WebLinkAbout2019-08-07 Council Packet Kenai City Council - Regular Meeting Page 1 of 220
August 07, 2019
Kenai City Council - Regular Meeting
August 07, 2019 – 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
AGENDA
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. Resolution No. 2019-54 - Designating Management Authority For Tract 2, Baron
Park Subdivision To Reflect That Revenues And Expenses Associated With The
Property Are Allocated To The Airport Fund. (Administration)
2. Resolution No. 2019-55 - Designating Management Authority For Tract 3, Baron
Park Subdivision To Reflect That Revenues And Expenses Associated With The
Property Are Allocated To The Airport Fund. (Administration)
E. MINUTES
1. *Regular Meeting of July 3, 2019.
F. UNFINISHED BUSINESS
Page 1
Kenai City Council - Regular Meeting Page 2 of 220
August 07, 2019
G. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified (Administration)
2. *Action/Approval - Purchase Orders Exceeding $15,000 (Administration)
3. Ordinance No. 3072-2019 - Renaming, Repealing and Re-Enacting Kenai
Municipal Code Title 22-General Fund Lands, Renaming Title 21-City Airport and
Airport Lands, and Repealing Kenai Municipal Code Chapter 21.15-Lease and
Sale of Airport Lands Outside of the Airport Reserve to Encourage Responsible
Growth and Development to Support a Thriving Business, Residential,
Recreational and Cultural Community through Responsible Land Policies and
Practices. (Administration)
4. *Ordinance No. 3073-2019 - Accepting and Appropriating a Grant from the State
of Alaska for the Purpose of Purchasing Books. (Administration)
5. *Ordinance No. 3074-2019 - Increasing Estimated Revenues and Appropriations
by $1,504.82 in the FY2019 General Fund - Police Department for State Traffic
Grant Overtime Expenditures. (Administration)
6. *Ordinance No. 3077-2019 - Increasing Estimated Revenues and Appropriations
in the Water & Sewer Special Revenue and Water & Sewer Improvements Capital
Project Funds for Engineering and Design Services to Relocate Well House #1
which was Damaged by the November 30, 2018 Magnitude 7.0 Southcentral
Alaska Earthquake. (Administration)
7. Action/Approval - Authorizing a Special Use Permit for the Kenai Chamber of
Commerce and Visitor Center for the Use of the "Moose Meat John" Cabin.
(Administration)
H. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
Page 2
Kenai City Council - Regular Meeting Page 3 of 220
August 07, 2019
1. City Manager
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION
M. PENDING ITEMS
N. ADJOURNMENT
O. INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review
2. Kenai Chamber of Commerce Thank You Letter
3. Kenai Performers Sponsorship Request
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.
Page 3
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019-54
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DESIGNATING
MANAGEMENT AUTHORITY FOR TRACT 2, BARON PARK SUBDIVISION TO REFLECT
THAT REVENUES AND EXPENSES ASSOCIATED WITH THE PROPERTY ARE ALLOCATED
TO THE AIRPORT FUND.
WHEREAS, the City of Kenai received a Quitclaim Deed from the Federal Aviation Administration
(FAA) on December 1, 1962, to nearly 2,000 acres of land subject to certain restrictions, including
that no property shall be used, leased, sold, salvaged, or disposed of for reasons other than for
Airport purposes; and,
WHEREAS, in1991, the FAA executed a Deed of Release for a 40.329-acre tract, including what
is now Tract 2, Baron Park Subdivision, releasing the City from all conditions, reservations, and
restrictions of the FAA Deed to permit the long-term lease or sale of the property for non-airport
purposes; and,
WHEREAS, in February 1991, Council approved Ordinance 1413-91 appropriating $212,500 from
the General Fund to pay the Airport Fund the Fair Market Value of an approximately 40-acre tract,
Tract A-1 Baron Park Sub. No. 1, including what is now Tract 2, from the City Airport Fund for
Marathon Road street and utility improvements to encourage industrial development in the area;
and,
WHEREAS, in May 1991, the City entered into a lease with the University of Alaska for Tract A-
1, and the lease was amended in 1996 to remove approximately 10 acres to be used to build the
Alaska Regional Fire Training Facility located on what is now Tract 2, Baron Park Subdivision;
and,
WHEREAS, Ordinance 1756-97 appropriated Airport Improvement Program Funds for the
construction of the 23,460 square foot Alaska Regional Fire Training Facility on Tract 2 to facilitate
hands-on training for fire response personnel in scenarios replicating actual emergencies
involving aircraft and structural/industrial settings; and,
WHEREAS, Resolution 2008-12 approved a Facility Management Agreement with Beacon
Occupational Health and Safety Services, which occupies the first floor of the Fire Training
Facility, and the American National Red Cross utilizes approximately 475 square feet of temporary
office space; and,
WHEREAS, the Airport Fund has provided for facility management services and facility repairs
and maintenance for the Fire Training Facility and property with the exception of a one-time
transfer of $110,000 from the General Fund authorized by Ordinance 2296-2008 to fund repairs
and maintenance at the Facility due to deficits in the Airport Fund; and,
Page 4
Resolution No. 2019-54
Page 2 of 2
_____________________________________________________________________________________
WHEREAS, the City and the Kenai Municipal Airport are strongly committed to rehabilitation and
infrastructure at the Facility and Ordinance 3059-2019 authorized $216,000 in FAA grant-eligible
Airport Improvement Capital Project funds for engineering, design, and construction services at
the Facility; and,
WHEREAS, Tract 2, Baron Park Subdivision is no longer subject to FAA deed restrictions that
require the property be used for Airport purposes, however, it is in the best interest of the City that
this property be managed for the benefit of the Airport; and,
WHEREAS, due to the number and nature of improvements on and surrounding the property,
specifically the investment by the General Fund in street and utility improvements and the Airport
Fund in permanent improvements at the Fire Training Facility and former UAA Lease Lot, it is in
the best interest of the City to designate the management authority for Tract 2 to the Airport to
accurately reflect the Airport’s investment in and responsibility for the property.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That management authority for Tract 2 Baron Park Subdivision is designated to
the Airport Fund.
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of August, 2019.
__________________________________
BRIAN GABRIEL, SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
Page 5
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: July 25, 2019
SUBJECT: Resolution 2019-54 and 2019-55 – Designating Management Authority
for Tracts 2 and 3, Baron Park Subdivision
____________________________________________________________________________
At the July 3, 2019 City Council Meeting, the City Council discussed an Action/Approval item to
delineate management authority to the Airport Fund for two tracts of land in the Baron Park
Subdivision to clarify which City fund is responsible for expenditures associated with said
properties and which City Fund will receive revenues from the land and improvements on the
properties as well as facilitate a subdivision to preserve public access along the existing
constructed road.
Resolution 2019-54 and 2019-55 designate management authority for Tracts 2 and 3,
respectively. Attached is the June 20, 2019 memo which provides additional detail in support of
the resolutions, which will clarify that the Airport Fund is the appropriate fund to pay all
expenditures and receive all revenues associated with the properties and improvements on the
properties.
Your consideration is appreciated.
Attachment
Page 6
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: June 20, 2019
SUBJECT: Action/ Approval - Baron Park Subdivision Properties
____________________________________________________________________________
The purpose of this memo is to affirmatively delineate management authority for two properties
in the Baron Park Subdivision to clarify which City fund is responsible for and receives the benefit
from the property and improvements on the property as well as facilitate a subdivision to preserve
public access along the existing constructed road.
The City has discussed properties in the Baron Park Subdivision as it relates to management
authority since the property was first proposed to provide land for a future Fire Training Facility
site in 1990. The 40-acre tract was undeveloped except for a small observation antennae installed
by the National Oceanic and Atmospheric Administration (NOAA) and a small pond. Payment was
made from the General Fund to the Airport Fund in the amount of $212,500 to transfer
Management authority for the land from the Airport Fund to the General Fund in 1991 for Marathon
Road street and utility improvements to encourage industrial development in the area as well as
facilitate a lease to the University of Alaska for the development of the indoor fire training facility.
Since that time, the 40-acre tract has been the subject of multiple subdivisions and development
as follows:
In 1991, the City entered into a lease with the University of Alaska on what is now Tract 3, but
was formerly Tract A-1, an approximately 40-acre parcel. The lease was amended in 1996 to
remove approximately 10 acres to be used to build the Alaska Regional Aircraft Rescue &
Fire Training Center. The University constructed substantial improvements on the leased
property and by mutual agreement the University and the City terminated the Lease with the
City Airport Fund purchasing the improvements on the property. Ordinance 2380-2009
authorized the purchase of the improvements, which included a water launch/recovery training
apparatus, Fire Training Burn Building, chain link fencing, gravel pad, utility improvements, a
1,000 square foot modular classroom, modular bathrooms and showers, an 800 square foot
garage building, and other items for $325,000. At the time the expenditure was approved by
City Council, there was a discussion of repayment to the General Fund of a portion of the
Page 7
Page 2 of 2
Baron Park Subdivision
$212,500 which was paid to the Airport Fund in 1991 for the portion of the property that was
returned to Airport management. No repayment was made nor was the property that was
returned to Airport management clearly defined.
In 1997, the Alaska Fire Training Facility was built on what is now Tract 2, and Ordinance
1756-97 appropriated Airport Fund and Airport Improvement Program Funds for construction
of the facility, which was designed to facilitate hands-on training for fire response personnel
in scenarios replicating actual emergencies involving aircraft and structural/industrial settings.
The Facility is currently under a Facility Management Agreement with Beacon Occupational
Health and Safety Services, which occupies the first floor, and the American National Red
Cross utilizes approximately 475 square feet of temporary office space on the second floor.
The Airport Fund provides facility repairs and maintenance for the property with the exception
of a one-time transfer of $110,000 from the General Fund authorized by Ordinance 2296-2008
to fund repairs and maintenance at the facility due to deficits in the Airport Fund. The City and
the Kenai Municipal Airport are strongly committed to rehabilitation and infrastructure at the
Facility and solicited proposals for engineering, design, and construction services in March
2019 to be funded with FAA funds.
The City Council held a work session on January 27, 2010 to discuss the management
authority for the Baron Park Subdivision and a return of the University parcel (now Tract 3) to
the Airport in recognition of the $325,000 paid by the Airport Fund. However, no action was
taken as a result of the work session, and the City moved forward with plans to construct a
City park around a small pond on the parcel. Daubenspeck Family Park was formally
'dedicated' in 2012. Ordinance No 2601-2011 appropriated $150,000 from a State of Alaska
grant for municipal improvements at Daubenspeck Park. Resolution 2018-52 authorized a
portion of the park for the construction and presence of an off-leash dog park. The area
encompasses approximately 22,500 square feet within Daubenspeck Family Park along the
northeast side of the pond.
In 2015, the City maintenance shop facility was built on what is now Tract 1. Some of the
development on this lot is in common with the lot to the west, Tract 3, the site of the University
of Alaska Fire Training Facility. When the tracts were re-platted in 2012 into Tracts 1-5 Baron
Park 2012 Addition, the improvements purchased by the Airport Fund on former Tract A-1
Baron Park Sub. No 7 were located on both Tract 1 and Tract 3. Additionally, the City Shop
uses the access road along the lot line common to Tracts 3 and 4. The 2012 plat dedicated
Daubenspeck Circle, providing interior and/or alternate access to all five tracts, but the actual
constructed road is a loop, extending past the cul-de-sac bulb back to Marathon Road. A 30-
foot utility easement was granted on the plat along that common lot line, running down the
center of the travel way and there are water and sewer lines along the road.
Due to the number and nature of improvements on and surrounding the properties, specifically
the investment by the General Fund in street and utility improvements and the Airport Fund in
permanent improvements at the Fire Training Facility and former UAA Lease Lot, it is in the best
interest of the City to designate the management authority for Tracts 2 and 3 to the Airport. If City
Council approves of this action, management authority for Tracts 2 and 3 will accurately reflect
the Airport’s investment in and responsibility for the properties. Additionally, the transfer of
authority will resolve the comingled responsibility and benefit of the properties to associate them
with the appropriate fund as well as allow the City to move forward in a subdivision to preserve
public access along the existing constructed road to Tract 1.
Your consideration is appreciated.
Page 8
M A G I C A V E
180 '
Date: 5/20/2019
The information depicted here
on is for graphic representation
only of the best available sources.
The City of Kenai assumes no
responsibility for errors on this
map.
1 inch equals 208 feet
Baron Park
Subdivision
Addition 2012
Daubenspeck Family Park
Tract 5
KPB # 0451036
Vacant
Tract 4
KPB # 0451035
Former UAA Lease
Tract 3
KPB # 0451034
Fire Training Facility
KPB # 0451033
Tract 2
City Shop
Tract 1
KPB # 0451032
Page 9
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2019-55
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DESIGNATING
MANAGEMENT AUTHORITY FOR TRACT 3, BARON PARK SUBDIVISION TO REFLECT
THAT REVENUES AND EXPENSES ASSOCIATED WITH THE PROPERTY ARE ALLOCATED
TO THE AIRPORT FUND.
WHEREAS, the City of Kenai received a Quitclaim Deed from the Federal Aviation Administration
(FAA) on December 1, 1962, to nearly 2,000 acres of land subject to certain restrictions, including
that no property shall be used, leased, sold, salvaged, or disposed of for reasons other than for
Airport purposes; and,
WHEREAS, in 1991, the FAA executed a Deed of Release for a 40.329-acre tract, including what
is now Tract 3, Baron Park Subdivision, releasing the City from all conditions, reservations, and
restrictions of the FAA Deed to permit the long-term lease or sale of the property for non-airport
purposes; and,
WHEREAS, in February 1991, Council approved Ordinance 1413-91 appropriating $212,500 from
the General Fund to pay the Airport Fund the Fair Market Value of an approximately 40-acre tract,
Tract A-1 Baron Park Sub. No. 1, including what is now Tract 3, from the City Airport Fund for
Marathon Road street and utility improvements to encourage industrial development in the area;
and,
WHEREAS, in May 1991, the City entered into a lease with the University of Alaska for Tract A-
1, upon which the University constructed substantial improvements for their University of Alaska
Fire Training Facility; and,
WHEREAS, in February 2009, Ordinance 2380-2009 authorized the City Airport Fund to purchase
the improvements for $325,000, and by mutual agreement the University and the City decided to
terminate the Lease; and,
WHEREAS, in July 2013, Ordinance 2711-2013 appropriated funds for the construction of the
new City Shop and maintenance facility on the parcel adjacent to what is now Tract 3, for all City
vehicle and equipment including the equipment of the Kenai Municipal Airport; and,
WHEREAS, some of the development on this lot is common with Tract 3, the site of the former
University of Alaska Fire Training Facility, and the City Shop uses the access road along the lot
line common to Tracts 3 and 4; and,
WHEREAS, Tract 3, Baron Park Subdivision is no longer subject to FAA deed restrictions that
require the property be used for Airport purposes, however, it is in the best interest of the City that
this property be managed for the benefit of the Airport; and,
Page 10
Resolution No. 2019-55
Page 2 of 2
_____________________________________________________________________________________
WHEREAS, due to the number and nature of improvements on and surrounding the property,
specifically the investment by the General Fund in street and utility improvements and the Airport
Fund in permanent improvements at the Fire Training Facility and former UAA Lease Lot, it is in
the best interest of the City to designate the management authority for Tract 3 to the Airport to
accurately reflect the Airport’s investment in and responsibility for the property.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That management authority for Tract 3 Baron Park Subdivision is designated to
the Airport Fund.
Section 2. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of August, 2019.
__________________________________
BRIAN GABRIEL, SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
Page 11
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: July 25, 2019
SUBJECT: Resolution 2019-54 and 2019-55 – Designating Management Authority
for Tracts 2 and 3, Baron Park Subdivision
____________________________________________________________________________
At the July 3, 2019 City Council Meeting, the City Council discussed an Action/Approval item to
delineate management authority to the Airport Fund for two tracts of land in the Baron Park
Subdivision to clarify which City fund is responsible for expenditures associated with said
properties and which City Fund will receive revenues from the land and improvements on the
properties as well as facilitate a subdivision to preserve public access along the existing
constructed road.
Resolution 2019-54 and 2019-55 designate management authority for Tracts 2 and 3,
respectively. Attached is the June 20, 2019 memo which provides additional detail in support of
the resolutions, which will clarify that the Airport Fund is the appropriate fund to pay all
expenditures and receive all revenues associated with the properties and improvements on the
properties.
Your consideration is appreciated.
Attachment
Page 12
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: June 20, 2019
SUBJECT: Action/ Approval - Baron Park Subdivision Properties
____________________________________________________________________________
The purpose of this memo is to affirmatively delineate management authority for two properties
in the Baron Park Subdivision to clarify which City fund is responsible for and receives the benefit
from the property and improvements on the property as well as facilitate a subdivision to preserve
public access along the existing constructed road.
The City has discussed properties in the Baron Park Subdivision as it relates to management
authority since the property was first proposed to provide land for a future Fire Training Facility
site in 1990. The 40-acre tract was undeveloped except for a small observation antennae installed
by the National Oceanic and Atmospheric Administration (NOAA) and a small pond. Payment was
made from the General Fund to the Airport Fund in the amount of $212,500 to transfer
Management authority for the land from the Airport Fund to the General Fund in 1991 for Marathon
Road street and utility improvements to encourage industrial development in the area as well as
facilitate a lease to the University of Alaska for the development of the indoor fire training facility.
Since that time, the 40-acre tract has been the subject of multiple subdivisions and development
as follows:
In 1991, the City entered into a lease with the University of Alaska on what is now Tract 3, but
was formerly Tract A-1, an approximately 40-acre parcel. The lease was amended in 1996 to
remove approximately 10 acres to be used to build the Alaska Regional Aircraft Rescue &
Fire Training Center. The University constructed substantial improvements on the leased
property and by mutual agreement the University and the City terminated the Lease with the
City Airport Fund purchasing the improvements on the property. Ordinance 2380-2009
authorized the purchase of the improvements, which included a water launch/recovery training
apparatus, Fire Training Burn Building, chain link fencing, gravel pad, utility improvements, a
1,000 square foot modular classroom, modular bathrooms and showers, an 800 square foot
garage building, and other items for $325,000. At the time the expenditure was approved by
City Council, there was a discussion of repayment to the General Fund of a portion of the
Page 13
Page 2 of 2
Baron Park Subdivision
$212,500 which was paid to the Airport Fund in 1991 for the portion of the property that was
returned to Airport management. No repayment was made nor was the property that was
returned to Airport management clearly defined.
In 1997, the Alaska Fire Training Facility was built on what is now Tract 2, and Ordinance
1756-97 appropriated Airport Fund and Airport Improvement Program Funds for construction
of the facility, which was designed to facilitate hands-on training for fire response personnel
in scenarios replicating actual emergencies involving aircraft and structural/industrial settings.
The Facility is currently under a Facility Management Agreement with Beacon Occupational
Health and Safety Services, which occupies the first floor, and the American National Red
Cross utilizes approximately 475 square feet of temporary office space on the second floor.
The Airport Fund provides facility repairs and maintenance for the property with the exception
of a one-time transfer of $110,000 from the General Fund authorized by Ordinance 2296-2008
to fund repairs and maintenance at the facility due to deficits in the Airport Fund. The City and
the Kenai Municipal Airport are strongly committed to rehabilitation and infrastructure at the
Facility and solicited proposals for engineering, design, and construction services in March
2019 to be funded with FAA funds.
The City Council held a work session on January 27, 2010 to discuss the management
authority for the Baron Park Subdivision and a return of the University parcel (now Tract 3) to
the Airport in recognition of the $325,000 paid by the Airport Fund. However, no action was
taken as a result of the work session, and the City moved forward with plans to construct a
City park around a small pond on the parcel. Daubenspeck Family Park was formally
'dedicated' in 2012. Ordinance No 2601-2011 appropriated $150,000 from a State of Alaska
grant for municipal improvements at Daubenspeck Park. Resolution 2018-52 authorized a
portion of the park for the construction and presence of an off-leash dog park. The area
encompasses approximately 22,500 square feet within Daubenspeck Family Park along the
northeast side of the pond.
In 2015, the City maintenance shop facility was built on what is now Tract 1. Some of the
development on this lot is in common with the lot to the west, Tract 3, the site of the University
of Alaska Fire Training Facility. When the tracts were re-platted in 2012 into Tracts 1-5 Baron
Park 2012 Addition, the improvements purchased by the Airport Fund on former Tract A-1
Baron Park Sub. No 7 were located on both Tract 1 and Tract 3. Additionally, the City Shop
uses the access road along the lot line common to Tracts 3 and 4. The 2012 plat dedicated
Daubenspeck Circle, providing interior and/or alternate access to all five tracts, but the actual
constructed road is a loop, extending past the cul-de-sac bulb back to Marathon Road. A 30-
foot utility easement was granted on the plat along that common lot line, running down the
center of the travel way and there are water and sewer lines along the road.
Due to the number and nature of improvements on and surrounding the properties, specifically
the investment by the General Fund in street and utility improvements and the Airport Fund in
permanent improvements at the Fire Training Facility and former UAA Lease Lot, it is in the best
interest of the City to designate the management authority for Tracts 2 and 3 to the Airport. If City
Council approves of this action, management authority for Tracts 2 and 3 will accurately reflect
the Airport’s investment in and responsibility for the properties. Additionally, the transfer of
authority will resolve the comingled responsibility and benefit of the properties to associate them
with the appropriate fund as well as allow the City to move forward in a subdivision to preserve
public access along the existing constructed road to Tract 1.
Your consideration is appreciated.
Page 14
M A G I C A V E
180 '
Date: 5/20/2019
The information depicted here
on is for graphic representation
only of the best available sources.
The City of Kenai assumes no
responsibility for errors on this
map.
1 inch equals 208 feet
Baron Park
Subdivision
Addition 2012
Daubenspeck Family Park
Tract 5
KPB # 0451036
Vacant
Tract 4
KPB # 0451035
Former UAA Lease
Tract 3
KPB # 0451034
Fire Training Facility
KPB # 0451033
Tract 2
City Shop
Tract 1
KPB # 0451032
Page 15
KENAI CITY COUNCIL – REGULAR MEETING
JULY 3, 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 July 3, 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 (telephonic)
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.1. Resolution No. 2019-45
• Amendment Memo
• Amended Facility Agreement
Remove Item G.2. Purchase Orders over $15,000
Add to item G.3. Special Use Permit for Use of City Dock
• Amended Special Use Permit
MOTION:
Page 16
City of Kenai Council Meeting Page 2 of 11
July 3, 2019
Council Member Molloy MOVED to approve the agenda with the requested revisions to the
agenda and packet and requested UNANIMOUS CONSENT. Council Member Knackstedt
SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
MOTION:
Council Member Knackstedt MOVED to approve the consent agenda and requested
UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion.
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
Elizabeth Odom spoke in favor of allowing for residential water meters noting she, as a single
person, did not use $100 worth of water each month. She also noted green spaces around the
City appeared to be dry and suggested more watering.
Sheryl Main expressed concern for crime in the City suggesting more needed to be done.
D. PUBLIC HEARINGS
1. Resolution No. 2019-45 – Authorizing a Facility Management Agreement with the
Kenai Chamber of Commerce and Visitor Center, Inc., for the Operation and
Management of the Kenai Visitor and Cultural Center. (Administration) [Clerk's Note:
Council May Convene in Executive Session to Discuss this Agenda Item, a Matter of
which the Immediate Knowledge may have an Adverse Effect Upon the Finances of
the City (AS44.62.310(c)(1))]
MOTION:
Council Member Molloy MOVED to adopt Resolution No. 2019-45 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.
Page 17
City of Kenai Council Meeting Page 3 of 11
July 3, 2019
MOTION TO AMEND:
Council Member Molloy MOVED to amend Section 2 to read, “that the compensation for the
Facility Management Services shall not exceed $95,000,” and amend the second whereas clause
to read “whereas, the award of the agreement is in the amount of $95,000 beginning July 4, 2019
or as soon as possible thereafter and ending June 30, 2020.” Council Member Knackstedt
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, Peterkin, Gabriel, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
2. Resolution No. 2019-46 – Selecting Divining Point, LLC, for City of Kenai Tourism
and Marketing Services. (Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-46 and Council Member
Glendening SECONDED the motion. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
An description of the firm was provided.
VOTE: There being no objections, SO ORDERED.
3. Resolution No. 2019-47 – Providing For The Submission To The Qualified Voters Of
The City Of Kenai, At The Regular Election Of October 1, 2019, The Question Of
Amending Article 10, Elections, Of The Charter Of The City Of Kenai To Provide
Designated Seats For Each Council Position And Allow Qualified Voters To Vote In
An Election For A Candidate For Each Seat. (Council Member Knackstedt and Vice
Mayor Navarre)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-47 and Council Member
Peterkin SECONDED the motion.
Mayor Gabriel opened for public hearing.
Linda Swarner spoke against the resolution suggesting that the Charter, as written, has worked
well over the years. She suggested that with designated seats, there was potential that the best
candidates were not elected; however, when the seats went to the top two vote getters the cream
of the crop were elected.
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City of Kenai Council Meeting Page 4 of 11
July 3, 2019
Bob Peters spoke against the resolution noting citizens wanted the best people qualified and
pointed out situations where someone receiving less votes could be elected when designated
seats.
There being no one else wishing to be heard, the public hearing was closed.
A person not running for a City Council seat to prevent unseating a preferred Council Member
running for reelection, the City of Soldotna’s use of identified seats, and people only voting for
one candidate as a strategy or confusion were discussed.
Having designated seats making running for a City Council seat more issue related for the
candidates, targeting, and discourse were also discussed
VOTE:
YEA: Knackstedt, Glendening, Navarre
NAY: Pettey, Peterkin, Gabriel, Molloy
MOTION FAILED .
4. Resolution No. 2019-48 – Providing For The Submission To The Qualified Voters Of
The City Of Kenai, At The Regular Election Of October 1, 2019, The Question Of
Amending Section 10-3 Filing, To Remove The Requirement That Candidates For
Mayor And Council Provide A Petition Signed By Twenty Or More Registered
Voters. (Council Member Knackstedt and Vice Mayor Navarre)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-48 and Council Member
Glendening SECONDED the motion.
Mayor Gabriel opened for public hearing.
Linda Swarner spoke against the resolution noting it was not too much to ask a candidate to get
twenty signatures as it showed the candidate was dedicated to running for the seat.
There being no one else wishing to be heard, the public hearing was closed.
The ease of obtaining twenty signatures, the need for the requirement, the opportunity to obtain
additional signatures if needed, timing, last minute filing, the signatures validating the commitment
of the person running, the importance of getting out and communicating opinions, and the
requirement for filing a financial disclosure statements preventing last minute decisions for
running were topics discussed.
VOTE:
YEA: Knackstedt, Glendening, Navarre, Gabriel
NAY: Peterkin, Pettey, Molloy
MOTION PASSED.
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City of Kenai Council Meeting Page 5 of 11
July 3, 2019
5. Resolution No. 2019-49 – Providing For The Submission To The Qualified Voters Of
The City Of Kenai, At The Regular Election Of October 1, 2019, The Question Of
Amending Section 10-2 Three-Year Terms – Election At Large – Nonpartisan
Elections, To Provide That The Terms Of Office Of The Mayor And Other
Councilmembers Shall Begin The Monday Following Certification Of The
Election. (Vice Mayor Navarre)
MOTION:
Vice Mayor Navarre MOVED to adopt Resolution No. 2019-49 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.
The sometimes awkward situations at the second meeting in October, those leaving office or not
reelected not attending the second meeting in October, and the proposed alternative were topics
discussed.
Clarification was provided that the City Council was required to certify the election.
The current method not being a big issue and providing a buffer for someone who was
uncomfortable after losing an election were additional topics discussed.
Additional clarification was provided that the Charter didn’t prescribe anything related to the Oath
of Office, only that the Oath of Office be administered; a possible alternative process for
administering oaths was also provided.
VOTE:
YEA: Knackstedt, Glendening, Pettey, Navarre, Peterkin, Gabriel, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
6. Resolution No. 2019-50 – Awarding an Agreement for the Purchase of Security
Cameras and Software for the Public Safety Building Security Camera Project.
(Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-50 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 objections, SO ORDERED.
7. Resolution No. 2019-51 – Awarding an Agreement to Furnish and Deliver Chemicals
for the Wastewater Treatment Plant and Water Treatment Facility. (Administration)
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City of Kenai Council Meeting Page 6 of 11
July 3, 2019
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-51 and requested
UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE: There being no objections, SO ORDERED.
8. Resolution No. 2019-52 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees, to Eliminate the Ambulance Fee for Patient Treatment without Transport.
(Administration)
MOTION:
Council Member Molloy MOVED to adopt Resolution No. 2019-52 and Council Member
Knackstedt SECONDED the motion. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
Clarification was provided that if a patient was transported to the hospital and the hospital deemed
the patient qualified for charity care, the ambulance would follow suit; however, given the amount
of money received and the process involved to determine charity care qualification it was not
warranted in the cases of patient treatment without transport.
Administration was thanked for bringing this forth.
VOTE: There being no objections, SO ORDERED.
9. Resolution No. 2019-53 – Authorizing the City Manager to Enter into a One-Year
Agreement with the City of Soldotna to Provide Animal Shelter Services for the City of
Soldotna at the Kenai Animal Shelter. (Administration)
MOTION:
Council Member Knackstedt MOVED to adopt Resolution No. 2019-53 and Council Member
Glendening SECONDED the motion. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public
hearing was closed.
Clarification was provided that Soldotna had experienced a significant decrease in the number of
animals they housed and it was felt there could be a collaboration between the cities. The fee
structure, based on the number of animals, was reviewed. It was noted this was a pilot project
and, assuming it worked well, would continue. It was added that there was not an expectation that
the agreement would require increasing staff.
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City of Kenai Council Meeting Page 7 of 11
July 3, 2019
Further clarification was provided that the Soldotna animals would be brought over by Soldotna
Animal Control or the Soldotna Police Officers.
VOTE: There being no objections, SO ORDERED.
E. MINUTES
1. *Work Session of June 11, 2019, 2019
Approved by the consent agenda.
2. *Regular Meeting of June 19, 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)
[Clerk’s Note: This item was removed from the agenda during approval of the agenda.]
3. Action/Approval – Approving a Special Use Permit of the Use of the City Dock Crane.
(Administration)
MOTION:
Council Member Molloy MOVED to approve the Special Use Permit provided in the laydown for
the Use of the City Dock Crane and Council Member Peterkin SECONDED the motion.
UNANIMOUS CONSENT was requested.
There was no objection to opening for public comment.
Mayor Gabriel opened for public comment.
David Chessick noted the City's dock was his connection to the world from Kalagin Island; pointed
out an effort was made to contract for facility management but not successful. He noted the City
Manager and City Attorney developed a process so the dock could be utilized by individuals;
hopes to see fuel provided again soon as well as a fish market and water taxi in the future.
There being no one else wishing to be heard, the public hearing was closed.
Clarification was provided that the City Manager was allowed to issue as many Special Use
Permits as he wanted and the difference between the permit provided in the packet and the permit
provided in the laydown related to the addition of a training.
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City of Kenai Council Meeting Page 8 of 11
July 3, 2019
VOTE: There being no objections, SO ORDERED.
4. Action/Approval – Delineate Management Authority for Two Properties in the Baron
Park Subdivision. (Administration)
MOTION:
Council Member Molloy MOVED to approve delineation of management authority for two
properties in the Baron Park Subdivision and Council Member Peterkin SECONDED the motion.
Clarification was provided that the issue had been long standing with a lot of complexity and a lot
of confusion related to management authority; noted that from an administrative standpoint there
was a need to establish management authority going forward. A brief history was provided and
clarification on which funds benefited from certain transactions. It was pointed out the FAA deed
restrictions had been satisfied and there was no requirement that the Red Cross be charged fair
market value. It was also noted that General Fund management authority would be retained for
the shop building so that the City didn't have to pay lease payments to the airport.
It was suggested a resolution be brought for adoption to provide a better paper trail.
Additional clarification was provided that fire training facility had never been profitable; however,
renovations which were currently being designed could make it a revenue generator and revenue
generated would be available for airport operations.
The motion was withdrawn.
MOTION:
Council Member Molloy MOVED to direct the City Manager to bring back a resolution or
resolutions at the August 7 meeting and Council Member Glendening SECONDED the motion.
VOTE:
YEA: Knackstedt, Glendening, Pettey, Navarre, Peterkin, Gabriel, Molloy
NAY:
MOTION PASSED UNANIMOUSLY.
5. Action/Approval – Confirmation of Mayoral Nomination to the Parks and Recreation
Commission. (Mayor Gabriel)
MOTION:
Council Member Knackstedt MOVED to confirm the Mayor’s nomination of Teea Winger to the
Parks and Recreation Commission and Council Member Glendening SECONDED the motion.
UNANIMOUS CONSENT was requested.
VOTE: There being no objections, SO ORDERED.
6. Discussion – City Parks Hours of Operations for the Protection of City Property, City
Resources, and Residential Neighborhoods. (Administration)
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City of Kenai Council Meeting Page 9 of 11
July 3, 2019
City Manager P. Ostrander noted staff was finding an increased amount of needles and drug
paraphernalia in City parks, many other cities close parks to provide a tool for law enforcement,
the matter was discussed in 2013, and Administration wanted to ensure Council was supportive
of the move to close parks. He added the Parks & Recreation Commission held a work session
to discuss the matter and was in full support. Timeframes and “non-park” parks were discussed.
A damage report, letting homeless families use parks and not pushing them into the business
sector, unintended consequences, special provisions for certain parks for fishing, responsible
management of parks, protecting the community and neighborhoods, the police department’s
compassionate treatment of those experiencing homelessness, and giving the police department
a tool for asking park users what was going on during certain times of the day were topics
discussed.
Clarification was provided administration would still be able to permit the use of parks after hours
and the Multi-Purpose Facility and golf course would not be affected.
MOTION:
Council Member Knackstedt MOVED to concur with the manager’s memo regarding closing parks
with special provisions for Cunningham Park and Council Member Pettey SECONDED the
motion.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend to allow those experiencing homelessness to use the
parks after hours.
The motion died for lack of a second.
VOTE ON THE MAIN MOTION:
YEA: Knackstedt, Glendening, Pettey, Peterkin, Gabriel, Molloy
NAY: Navarre
MOTION PASSED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – It was reported the July 11 meeting was cancelled.
2. Airport Commission – No report; next meeting July 11.
3. Harbor Commission – No report; next meeting August 12.
4. Parks and Recreation Commission – No report; next meeting August 1.
5. Planning and Zoning Commission – It was reported that at their June 26 meeting the
Commission approved an amendment to a Conditional Use Permit related to hours of
operation for a Marijuana Retail Store and some discussion of uniform hours of
operation, also approved a Home Occupation Permit for a daycare which changed
Page 24
City of Kenai Council Meeting Page 10 of 11
July 3, 2019
location; provided an update on upcoming work sessions and meetings; next meeting
July 24.
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 Bill Osborn’s memorial service;
• Provided a reminder of upcoming Fourth of July events.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Working with the marketing firm who had exciting ideas for the Silver Salmon
Derby;
• Met with State Parks regarding parking issues on Kenai Spur Highway near the
Eagle Rock boat launch;
• Dipnet operations were ramping up – hoping for a good year, fences had been
repaired where destroyed by storms, and “minimize your wake” signs were in
place;
• Continuing to work with the Corps of Engineers - Alaska District to push the Bluff
Erosion Project forward.
2. City Attorney – No Report.
3. City Clerk – No Report.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
Bob Peters suggested additional public testimony be taken on matters after Council discussion,
noted the City was looking good this summer, and added he was looking forward to entertaining
dipnetters.
2. Council Comments
All wished the everyone a Happy Fourth of July.
Council Member Pettey also thanked the Parks and Recreation Department for the American
flags on the Kenai Spur Highway.
Council Member Molloy also thanked those that came to testify and speak to the Council.
L. EXECUTIVE SESSION – None.
M. PENDING ITEMS – None.
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City of Kenai Council Meeting Page 11 of 11
July 3, 2019
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 9:12 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of July 3, 2019.
_____________________________
Jamie Heinz, CMC
City Clerk
Page 26
PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: AUGUST 7, 2019
VENDOR DESCRIPTION
PERS PERS
INTEGRITY JANITORIAL JUNE SERVICE AT CITY HALL
PRECIOUS JANITORIAL JUNE SERVICE AT LIBRARY
PRECIOUS JANITORIAL JUNE SERVICE AT TERMINAL
PRECIOUS JANITORIAL JUNE SERVICE AT POLICE
PRECIOUS JANITORIAL JUNE SERVICE AT VISITOR CENTER
HOMER ELECTRIC ELECTRICITY USAGE
INVESTMENTS
VENDOR DESCRIPTION
DEPARTMENT ACCOUNT AMOUNT
VARIOUS LIABILITY 96,867.98
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 110,743.57
MATURITY DATE AMOUNT Effect. Int.
Page 27
PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL
COUNCIL MEETING OF: AUGUST 7, 2019
VENDOR DESCRIPTION DEPT. ACCOUNT
INCREASE OF EXISTING PURCHASE ORDER
VENDOR DESCRIPTION P.O.# -DEPT. REASON
1 15143 -CEMETERY IMP
NELSON ENGINEERING ADDITIONAL SERVICES CAP PROJ AMEND #1
AMOUN T
AMOUN T TOTAL PO AMT
10,351 .00 27 ,5 34 .00
Page 28
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: July 31, 2019
SUBJECT: Purchase Order over $15K
____________________________________________________________________________
The purpose of this memo is to request approval of Amendment #1 to Nelson Engineering in the
amount of $10,351.00 for additional services on the City Cemetery Expansion Project.
On March 30, 2018 the City awarded an Agreement to Nelson Engineering in the amount of
$17,183.00 to provide complete Construction Documents for the expansion of the City Cemetery
located on First Avenue and Float Plane Road.
The Public Works Department is intending to perform much of the work in house with staff from
the Street’s Division. This change order will cover completion of a Storm Water Protection Plan
(SWPP), Surveying Services for setting grade, locating fence line, parking area, etc. as well as
an additional $2,500 toward contract administration services.
Total revised agreement with Nelson Engineering will now be $27,534.00; increasing PO115143
by $10,351.00 from Fund 118 Activity Code 228.
Council’s approval is respectfully requested.
Page 29
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3072-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, RENAMING,
REPEALING AND RE-ENACTING KENAI MUNICIPAL CODE TITLE 22-GENERAL FUND
LANDS, RENAMING TITLE 21-CITY AIRPORT AND AIRPORT LANDS, AND REPEALING
KENAI MUNICIPAL CODE CHAPTER 21.15-LEASE AND SALE OF AIRPORT LANDS OUTSIDE
OF THE AIRPORT RESERVE TO ENCOURAGE RESPONSIBLE GROWTH AND
DEVELOPMENT TO SUPPORT A THRIVING BUSINESS, RESIDENTIAL, RECREATIONAL
AND CULTURAL COMMUNITY THROUGH RESPONSIBLE LAND POLICIES AND
PRACTICES.
WHEREAS, amendments to Title 22-General Fund Lands, coupled with the repeal of Chapter
21.15- Lease and Sale of Airport Lands Outside the Airport Reserve, are intended to encourage
responsible growth and development to support a thriving business, residential, recreational and
cultural community through responsible land policies and practices; and,
WHEREAS, combining code provisions for general fund lands, lands outside the airport reserve
restricted by the Federal Aviation Administration, and certain tidelands recognizes these are all
City-owned lands and should be similarly treated consistent with granting restrictions, if any; and,
WHEREAS, the changes provide for development incentives to encourage new development in
the City and changes to the term table and ownership of improvements to encourage investment;
and,
WHEREAS, other changes are focused on providing a City-wide approach to land management
and lease and sales policy along with rental rate adjustments based on consumer price indexes
protect lessees from unexpected increases and to reduce conflict between the City and current
and future lessees; and,
WHEREAS, the amendments discourage land speculation on commercial City-owned lands by
requiring development for lease or sale; and,
WHEREAS, the Planning and Zoning Commission, at its meeting of August 14, 2019,
recommended the City Council ______ Ordinance No. 3072-2019; and,
WHEREAS, the Airport Commission, at its meeting of August 8, 2019, recommended the City
Council ______ Ordinance No. 3072-2019, and,
WHEREAS, the Harbor Commission at its meeting of August 19, 2019, recommended the City
Council ______ Ordinance No. 3072-2019.
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Ordinance 3072-2019
Page 2 of 47
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. Renaming Title 21 of the Kenai Municipal Code: That Kenai Municipal Code, Title
21 – City Airport And Airport Lands is hereby renamed as follows:
CITY AIRPORT RESERVE [AND AIRPORT] LANDS
Section 2. Repealing Chapter 21.15 of the Kenai Municipal Code: That Kenai Municipal Code,
Chapter 21.15 – Lease and Sale of Airport Land Outside of the Airport Reserve is hereby repealed
as follows:
[CHAPTER 21.15
LEASE AND SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE
21.15.010 AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE.
(A) THIS CHAPTER APPLIES TO AIRPORT LAND OUTSIDE OF THE AIRPORT
RESERVE.
(B) THE CITY MAY SELL, CONVEY, EXCHANGE, TRANSFER, DONATE, DEDICATE,
DIRECT, OR ASSIGN TO USE, OR OTHERWISE DISPOSE OF AIRPORT LAND OUTSIDE
OF THE AIRPORT RESERVE, INCLUDING PROPERTY ACQUIRED, HELD FOR, OR
DEVOTED TO A PUBLIC USE, IN ACCORDANCE WITH THIS CHAPTER. DISPOSAL OR
SALE OF LANDS SHALL BE MADE ONLY WHEN, IN THE JUDGMENT OF THE CITY
COUNCIL, SUCH LANDS ARE NOT REQUIRED BY THE CITY FOR A PUBLIC PURPOSE,
(C) THE CITY MAY LEASE, SELL OR DISPOSE OF REAL PROPERTY BY WARRANTY
OR QUIT-CLAIM DEED, EASEMENT, GRANT, PERMIT, LICENSE, DEED OF TRUST,
MORTGAGE, CONTRACT FOR SALE OF REAL PROPERTY, PLAT DEDICATION, LEASE,
OR 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.
(D) 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 ORDINANCE CODIFIED IN THIS CHAPTER.
(E) PENDING LEASE APPLICATIONS FOR AIRPORT LAND FILED PRIOR TO THE
EFFECTIVE DATE OF THE ORDINANCE CODIFIED IN THIS CHAPTER SHALL BE
PROCESSED AND ISSUED UNDER THE PROVISIONS OF KMC TITLES 21 AND 22 IN
EXISTENCE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THE ORDINANCE
CODIFIED IN THIS CHAPTER. OTHERWISE THE PROVISIONS OF THIS CHAPTER
SHALL APPLY.
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Ordinance 3072-2019
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_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
21.15.020 QUALIFICATIONS OF APPLICANTS OR 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 AUTHORIZED TO
CONDUCT BUSINESS UNDER THE LAWS OF ALASKA; OR
(C) IS ACTING AS AN AGENT FOR ANOTHER 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 HIM OR HERSELF. THE TERM “AGENT”
INCLUDES REAL ESTATE BROKERS AND AGENTS.
21.15.030 APPLICATIONS.
(A) ALL APPLICATIONS FOR LEASE OF LANDS SHALL BE FILED WITH THE CITY
MANAGER ON FORMS PROVIDED BY THE CITY AVAILABLE AT CITY HALL.
APPLICATIONS SHALL BE DATED ON RECEIPT AND PAYMENT OF FILING 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.
(B) WITH EVERY APPLICATION, THE APPLICANT SHALL SUBMIT A DEVELOPMENT
PLAN, SHOWING AND STATING:
(1) THE PURPOSE OF THE PROPOSED LEASE;
(2) THE USE, VALUE AND NATURE 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); AND
(5) WHETHER INTENDED USE COMPLIES WITH THE ZONING ORDINANCE AND
COMPREHENSIVE PLAN OF THE CITY. APPLICATIONS SHALL BECOME A PART
OF THE LEASE.
21.15.040 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; 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
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Ordinance 3072-2019
Page 4 of 47
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
(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.
21.15.050 RIGHTS PRIOR TO LEASING.
THE FILING OF AN APPLICATION FOR A LEASE SHALL GIVE THE APPLICANT NO RIGHT
TO LEASE OR TO THE USE OF THE LAND FOR WHICH THE APPLICANT APPLIED. THE
APPLICATION SHALL EXPIRE WITHIN TWELVE (12) MONTHS AFTER THE APPLICATION
HAS BEEN MADE 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) ADDITIONAL MONTHS. LEASE RATES ARE SUBJECT TO CHANGE ON THE
BASIS OF AN APPRAISAL DONE EVERY TWELVE (12) MONTHS ON THE PROPERTY
APPLIED FOR.
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Ordinance 3072-2019
Page 5 of 47
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
21.15.060 PROCESSING PROCEDURE.
(A) APPLICATIONS SHALL BE FORWARDED TO THE PLANNING AND ZONING
COMMISSION UPON RECEIPT. 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 SAID 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) WHERE THERE ARE TWO (2) OR MORE APPLICATIONS FOR THE SAME AIRPORT
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 WILL 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 DECISION WHETHER OR NOT TO LEASE LAND RESTS IN THE SOLE
DISCRETION OF THE CITY COUNCIL.
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21.15.070 REVIEW.
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.
21.15.080 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.
21.15.090 TERMS OF LEASE.
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.
21.15.100 ANNUAL M INIMUM RENTAL.
(A) ANNUAL MINIMUM RENTALS SHALL BE COMPUTED FROM THE APPROVED
APPRAISED MARKET VALUE UTILIZING THE METHOD AS DESCRIBED IN KMC
21.15.120 OF THIS CHAPTER.
(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 LESSEE WERE THE
OWNER OF SAID LAND.
(C) RENT SHALL BE PAID ANNUALLY IN ADVANCE. SAID PAYMENTS SHALL BE
PRORATED TO CONFORM TO THE CITY OF PAYMENT EXCEEDS TWO HUNDRED
DOLLARS ($200.00), THEN THE LESSEE SHALL HAVE THE OPTION OF Kenai’s fiscal
year BEGINNING JULY 1 AND ENDING JUNE 30. IF THE EQUIVALENT MONTHLY
MAKING PAYMENTS ON A MONTHLY BASIS.
(D) LESSEE SHALL BE RESPONSIBLE FOR ALL SALES TAXES APPLICABLE TO ITS
OPERATIONS.
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21.15.110 BIDDING PROCEDURE.
AS AN EXCEPTION TO GENERAL POLICY LISTED ABOVE, THE CITY COUNCIL MAY
DESIGNATE A SPECIFIC LOT OR LOTS TO BE MADE AVAILABLE ONLY FOR BID. THIS
PROVISION SHALL APPLY ONLY WHEN THERE IS NO OUTSTANDING APPLICATION
PENDING ON THE LOT OR LOTS. AS DESIGNATED, SEALED BIDS SHALL BE RECEIVED
OFFERING A ONE-TIME PREMIUM IN ADDITION TO THE ESTABLISHED LEASE RATE.
HIGHEST BID, HOWEVER, SHALL BE SUBJECT TO ALL PROVISIONS OF REVIEW AND
APPROVAL ESTABLISHED FOR ALL OTHER LEASE APPLICATIONS.
21.15.120 PRINCIPLES AND POLICY OF LEASE RATES.
(A) A FAIR RETURN TO THE AIRPORT SYSTEM IS MANDATED BY THE TERMS AND
CONDITIONS OF THE QUITCLAIM DEED AND APPROPRIATE DEEDS OF RELEASE,
GRANTING THESE LANDS TO THE AIRPORT SYSTEM BY THE FEDERAL
GOVERNMENT. 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, 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.
(B) FOR LEASES IN EXISTENCE PRIOR TO THE EFFECTIVE DATE OF 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
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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, RENT 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 RENT, WITHOUT INTEREST
THEREON ACCRUING TO THE EXTENT TO BE PAID/REFUNDED IN A TIMELY
FASHION.
21.15.130 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:
(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,
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PLUS INTEREST AT EIGHT PERCENT (8%) PER YEAR ON THE UNPAID BALANCE OR
UNDER SUCH TERMS AND CONDITIONS AS THE COUNCIL MAY SET BY RESOLUTION.
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.
21.15.140 LEASE 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 SAID 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.
21.15.150 LEASE UTILIZATION.
LEASED LANDS SHALL BE UTILIZED FOR PURPOSES WITHIN 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 OF THE LEASE
AND SUBJECT THE LEASE TO CANCELLATION AT ANY TIME. FAILURE TO
SUBSTANTIALLY COMPLETE THE DEVELOPMENT PLAN FOR THE LAND, CONSISTENT
WITH THE PROPOSED USE AND TERMS OF THE LEASE, SHALL CONSTITUTE GROUNDS
FOR CANCELLATION.
21.15.160 FORM OF LEASE.
(A) WHEN LEASING LAND UNDER THIS CHAPTER, THE CITY MANAGER SHALL USE
A STANDARD LEASE FORM THAT IS:
(1) DRAFTED TO:
(I) PROVIDE A REASONABLE BASIS FOR THE LESSEE’S USE OF THE
PREMISES,
(II) FOSTER THE SAFE, EFFECTIVE, AND EFFICIENT OPERATION OF THE
AIRPORT,
(III) CONFORM WITH THE APPLICABLE REQUIREMENTS OF THE KMC,
INCLUDING THIS CHAPTER, ALASKA STATUTES, FEDERAL AVIATION
ADMINISTRATION REGULATIONS, AND OTHER APPLICABLE FEDERAL LAW,
AND
(Iv) PROVIDE FOR THE BEST INTEREST OF THE CITY.
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(2) APPROVED AS TO FORM BY THE CITY ATTORNEY; AND
(3) 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 MANAGER BELIEVES THE ACTION IS IN THE BEST INTEREST OF THE
CITY; AND
(2) THE LEASE IS APPROVED AS TO FORM BY THE CITY ATTORNEY; AND
(3) THE LEASE IS APPROVED BY RESOLUTION OF THE CITY COUNCIL.
21.15.170 CONVEYANCE TO ENCOURAGE NEW ENTERPRISES.
(A) 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 SAID ORDINANCE.
(B) IN THE EVENT THE LAND DIRECTED TO BE CONVEYED UNDER SUBSECTION (A)
OF THIS SECTION CONSISTS IN PART OR IN WHOLE OF AIRPORT LANDS, THEN THE
ORDINANCE ORDERING ITS CONVEYANCE. WILL NOT BE EFFECTIVE UNTIL THE
CITY COUNCIL BY ORDINANCE HAS APPROPRIATED FROM THE GENERAL FUND TO
BE DEDICATED TO THE AIRPORT THE DIFFERENCE BETWEEN THE APPRAISED FAIR
MARKET VALUE OF SAID AIRPORT LANDS AND THE PURCHASE PRICE, IF ANY, SET
FORTH IN SAID ORDINANCE.
21.15.180 SALE.
(A) AIRPORT LAND OUTSIDE THE AIRPORT RESERVE 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 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.
(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
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THE “AGREEMENT FOR SALE OF LAND” WITHIN ONE (1) YEAR OF THE DATE OF
APPRAISAL. THE CITY MANAGER HAS THE OPTION TO DISPOSE
OF SUCH PROPERTIES IN ACCORDANCE WITH THE SALE PROCEDURES SET OUT IN
THIS TITLE:
(1) BY NEGOTIATED SALE; OR
(2) BY OUTCRY AUCTION TO THE HIGHEST RESPONSIBLE BIDDER; OR
(3) BY COMPETITIVE SEALED BIDS TO THE HIGHEST RESPONSIBLE BIDDER.
IN THE EVENT THAT THE SALE IS NOT CLOSED WITHIN ONE (1) YEAR 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.
21.15.190 SALE PROCEDURE.
(A) THE CITY MANAGER WILL OBTAIN SUCH AN APPRAISAL FOR A DETERMINATION
OF THE MINIMUM PRICE ON SAID LAND.
(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 SUCH GOOD FAITH DEPOSIT IS INSUFFICIENT TO PAY ALL COSTS
INCURRED BY THE CITY.
(2) IF AT ANY TIME DURING THE PROCESS OF PREPARING FOR SALE, THE
APPLICANT GIVES NOTICE TO THE CITY MANAGER OF WITHDRAWAL OF THE
REQUEST FOR SALE, THE CITY MANAGER SHALL STOP ALL PROCEDURES,
SHALL PAY EXPENSES INCURRED PRIOR TO TERMINATION OF SALE
PROCEDURES, AND SHALL REIMBURSE APPLICANT FOR ANY GOOD FAITH
DEPOSIT ADVANCED IN EXCESS OF ALL EXPENSES INCURRED. (HOWEVER, IF
ANOTHER PARTY DESIRES THE SALE TO PROCEED, FILES AN APPLICATION
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FOR SALE, EXECUTES AND FILES AN AGREEMENT TO PURCHASE, AND
ADVANCES SUFFICIENT FUNDS THEREFOR, THEN THE PRIOR APPLICANT WILL
BE REIMBURSED FOR EXPENSES CHARGES WHICH CAN BE ATTRIBUTED TO
THE SUBSEQUENT APPLICANT.)
(3) 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 DEPOSIT, AND THE BALANCE, IF ANY,
SHALL BE RETURNED TO THE APPLICANT. IF THE SUMS 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) IF THE LAND APPLIED FOR IS SOLD ON PUBLIC SALE SET IN RESPONSE TO
SUCH REQUEST TO ANYONE OTHER THAN APPLICANT, THEN ON CLOSING OF
THE SALE, THE GOOD FAITH 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) IF THE LAND IN QUESTION IS SOLD TO APPLICANT, THE GOOD FAITH
DEPOSIT ADVANCED, AFTER DEDUCTING THE CITY’S EXPENSES, WILL BE
APPLIED ON THE PAYMENT DUE 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 21.15.060(A), THE
APPLICANT SHALL BE DEFINED AS THAT PARTY SUBMITTING THE INITIAL LEASE
APPLICATION.
(C) IF THE TRACT OF LAND PROPOSED TO BE SOLD IS LEASED LAND, THE LESSEE
MAY REQUEST THE SALE OF THE LAND AT NOT LESS THAN THE FAIR MARKET
VALUE. THE CURRENT LESSEE MAY REQUEST TO NEGOTIATE 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 REQUEST TO 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 IN THE SOLE DISCRETION OF THE CITY.
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(D) AN APPLICANT MAY REQUEST THE LEASE OF CITY LAND INCLUDE A RIGHT TO
PURCHASE THE LEASED LAND WITHIN TWELVE (12) MONTHS OF THE COMPLETION
OF THE DEVELOPMENT AS DETAILED IN THE DEVELOPMENT SCHEDULE. A SALE
UNDER THIS SUBSECTION SHALL BE AT NOT LESS THAN FAIR MARKET VALUE AS
DETERMINED BY AN APPRAISER QUALIFIED UNDER AS 8.87. THE CITY MAY CHARGE
ADDITIONAL CONSIDERATION FOR GRANTING THE RIGHT TO PURCHASE THE
PROPERTY. THE LAND MUST BE APPRAISED WITHIN TWELVE (12) MONTHS OF SALE
AS REQUIRED UNDER KMC 21.15.070. AN APPLICANT’S REQUEST TO HAVE A
CONTRACTUAL RIGHT TO PURCHASE THE LEASE PROPERTY MUST BE APPROVED
BY AN ORDINANCE OF THE COUNCIL. THE COUNCIL MAY GRANT THE REQUEST IF
IT DETERMINES IT IS IN THE BEST INTEREST OF THE CITY.
(E) 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. THE
DECISION WHETHER OR NOT TO SELL THE LAND RESTS IN THE SOLE DISCRETION
OF THE CITY. IF THE TRACT IS TO BE PUT UP FOR SUCH COMPETITIVE AUCTION OR
SEALED BID SALE, NOTICE OF SALE AND THE MANNER IN WHICH THE LAND IS TO
BE SOLD SHALL BE 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 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 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 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.
(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
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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.
(2) NO COMMISSION SHALL BE PAID TO AN AGENT WHERE SAID 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 WITHIN THE CITY WHICH SPECIALIZES IN CLOSING OF REAL ESTATE
SALES.
(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. THE DEED
SHALL BE SIGNED BY THE CITY MANAGER AND ATTESTED BY THE CITY CLERK. THE
FORM OF THE DEED SHALL BE APPROVED BY THE CITY ATTORNEY.
(I) 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 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, AND THE BUYER SHALL PAY THE
ANNUAL COLLECTION FEES FOR SUCH BANK COLLECTION.
(L) TO ENABLE THE CITY TO COMPETE ON AN EQUAL BASIS WITH PRIVATE
ENTERPRISE IN LANDS DISPOSAL, THE CITY MANAGER IS AUTHORIZED TO
NEGOTIATE A DIVISION OF THE COSTS OF SALE LISTED IN KMC 21.15.190(F) (G), (H),
(I) AND (J) TO A MAXIMUM OF FIFTY PERCENT (50%) OF THE REQUIRED COSTS
BEING BORNE BY THE CITY.
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21.15.200 TERMS FOR FINANCING SALE OF CITY LAND s.
(A) IN ORDER TO EXPEDITE AND FACILITATE THE SALE OF CITY LANDS, THE CITY
MANAGER IS AUTHORIZED TO ACCEPT TERMS FOR SAID 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 SAME RESTRICTIONS CONTAINED IN
THE LEASE AS THE LEASE PROVIDES AT THE TIME OF SALE.
(2) PRIOR TO MAKING A DETERMINATION TO ACCEPT A NOTE AND DEED OF
TRUST FROM A PROSPECTIVE PURCHASER, THE CITY MANAGER SHALL
SECURE A PRELIMINARY COMMITMENT FOR TITLE INSURANCE (AT
PURCHASER’S EXPENSE) AND A REVIEW OF THE GRANTEE INDEX COVERING
THE PARTY DESIRING TO PURCHASE THE LAND FROM THE TITLE COMPANY IN
THE LOCAL RECORDING DISTRICT, 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 THEREFORE HAVE BEEN FILED.
(3) IN THE EVENT OF A CREDIT SALE, THE DOWN PAYMENT REQUIRED SHALL
BE DETERMINED BY THE CITY MANAGER, BUT SHALL NOT BE LESS THAN
FIFTEEN PERCENT (15%) OF THE SALES PRICE.
(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.
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21.15.210 DETERMINATION AS TO NEED FOR PUBLIC 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 W HICH SAID PROPERTY IS TO BE DEDICATED, 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.
(B) WHETHER LAND PREVIOUSLY DEDICATED TO A PUBLIC USE SHOULD BE
DEDICATED TO A DIFFERENT PUBLIC USE OR SHOULD NO LONGER BE NEEDED BY
THE CITY FOR PUBLIC USE SHALL BE DETERMINED BY THE CITY COUNCIL BY
ORDINANCE WHICH SHALL CONTAIN THE NEW PUBLIC USE FOR WHICH SAID
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 W ITH NOTICE OF ITS LOCATION.
21.15.220 PROPERTY EXCHANGES.
THE COUNCIL MAY APPROVE, BY RESOLUTION, 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 AND THE CITY SHALL RECEIVE PROPERTY (INCLUDING A
PORTION OF MONEY) AT LEAST EQUIVALENT TO THE VALUE OF THE PROPERTY
EXCHANGED BY THE CITY.
21.15.230 PROPERTY SALE TO ADJACENT OWNERS.
THE COUNCIL MAY APPROVE, BY RESOLUTION, 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.
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21.15.240 GRANT OR DEVOTION.
(A) THE COUNCIL, BY ORDINANCE, MAY LEASE, GRANT OR DEVOTE REAL
PROPERTY NO LONGER NEEDED BY THE CITY FOR A PUBLIC PURPOSE TO THE
UNITED STATES, THE STATE OF ALASKA, A LOCAL POLITICAL SUBDIVISION OF THE
STATE OF ALASKA (INCLUDING THE CITY OF KENAI GENERAL FUND), OR ANY
AGENCY OF ANY OF THESE GOVERNMENTS OR NON-PROFIT CORPORATION, FOR
A CONSIDERATION AGREED UPON BETWEEN THE CITY AND GRANTEE WITHOUT A
PUBLIC SALE IF THE GRANT OR DEVOTION IS ADVANTAGEOUS TO THE CITY.
(B) IN THE EVENT THE LAND DIRECTED TO BE CONVEYED UNDER SUBSECTION (A)
OF THIS SECTION CONSISTS IN PART OR IN WHOLE OF AIRPORT LANDS, THEN THE
ORDINANCE ORDERING ITS CONVEYANCE WILL NOT BE EFFECTIVE UNTIL THE CITY
COUNCIL BY ORDINANCE HAS APPROPRIATED FROM THE GENERAL FUND TO BE
DEDICATED TO THE AIRPORT THE DIFFERENCE BETWEEN THE APPRAISED FAIR
MARKET VALUE OF SAID AIRPORT LANDS AND THE PURCHASE PRICE, IF ANY, SET
FORTH IN SAID ORDINANCE.
21.15.250 USE PERMITS.
THE COUNCIL MAY AUTHORIZE THE CITY MANAGER TO GRANT PERMITS FOR THE
TEMPORARY USE OF REAL PROPERTY OWNED BY THE CITY FOR A PERIOD NOT TO
EXCEED ONE (1) YEAR, 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 COUNCIL SHALL DETERMINE.
21.15.260 ACQUISITION OF REAL PROPERTY.
(A) THE CITY, BY AUTHORIZATION OF THE CITY COUNCIL, EXPRESSED IN A
RESOLUTION FOR SUCH PURPOSE, MAY PURCHASE OR ACQUIRE AN INTEREST IN,
OR LEASE REAL PROPERTY NEEDED FOR A PUBLIC USE WITHIN OR OUTSIDE THE
AIRPORT RESERVE ON SUCH TERMS AND CONDITIONS AS THE COUNCIL SHALL
DETERMINE, BUT NO PURCHASE SHALL BE MADE UNTIL A QUALIFIED APPRAISER
HAS APPRAISED THE PROPERTY AND GIVEN THE COUNCIL AN INDEPENDENT
OPINION AS TO THE FULL AND TRUE VALUE THEREOF;
(B) BECAUSE OF THE UNIQUE VALUE OF REAL PROPERTY, THE CITY NEED NOT
ACQUIRE OR LEASE REAL PROPERTY BY COMPETITIVE BIDDING.
Section 3. Repealing, Renaming and Re-enacting Title 22 of the Kenai Municipal Code: That
Kenai Municipal Code, Title 22 – General Fund Lands is hereby repealed, renamed, and re-
enacted as follows:
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[TITLE 22
GENERAL FUND LANDS
CHAPTER 22.05
DISPOSITION OF CITY GENERAL FUND LANDS
22.05.010 POWER TO DISPOSE OF REAL PROPERTY.
(A) THE PROVISIONS OF THIS CHAPTER APPLY TO GENERAL FUND REAL
PROPERTY.
(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 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 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 REQUIRED
FOR A PUBLIC PURPOSE.
22.05.015 SALE OR DISPOSAL.
THE CITY MAY SELL OR DISPOSE OF REAL PROPERTY 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 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 APPLICANTS OR 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 AUTHORIZED TO
CONDUCT BUSINESS UNDER THE LAWS OF ALASKA; OR
(C) IS ACTING AS AN AGENT FOR ANOTHER 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.
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22.05.025 APPLICATIONS.
(A) ALL APPLICATIONS FOR LEASE OF LANDS SHALL BE FILED WITH THE CITY
MANAGER ON FORMS PROVIDED BY THE CITY AVAILABLE AT CITY HALL.
APPLICATIONS SHALL BE DATED ON RECEIPT AND PAYMENT OF FILING 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.
(B) WITH EVERY APPLICATION, THE APPLICANT SHALL SUBMIT A DEVELOPMENT
PLAN, SHOWING AND STATING:
(1) THE PURPOSE OF THE PROPOSED LEASE;
(2) THE USE, VALUE AND NATURE 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); AND
(5) WHETHER INTENDED USE COMPLIES WITH THE ZONING ORDINANCE AND
COMPREHENSIVE PLAN OF THE CITY. APPLICATIONS SHALL BECOME A PART
OF THE LEASE.
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
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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.
THE FILING OF AN APPLICATION FOR A LEASE SHALL GIVE THE APPLICANT NO RIGHT
TO LEASE OR TO THE USE OF THE LAND FOR WHICH THEY HAVE APPLIED. THE
APPLICATION SHALL EXPIRE WITHIN TWELVE (12) MONTHS AFTER THE APPLICATION
HAS BEEN MADE 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) ADDITIONAL 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.
(A) APPLICATIONS SHALL BE FORWARDED TO THE PLANNING AND ZONING
COMMISSION UPON RECEIPT. 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
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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) 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 DECISION WHETHER OR NOT TO LEASE LAND RESTS IN THE SOLE
DISCRETION OF THE CITY COUNCIL.
22.05.045 REVIEW.
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.
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.
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22.05.055 TERMS OF LEASE.
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. (ORD. 2200-2006)
22.05.060 ANNUAL MINIMUM RENTAL.
(A) ANNUAL MINIMUM RENTALS SHALL BE COMPUTED FROM THE APPROVED
APPRAISED MARKET VALUE UTILIZING THE METHOD AS DESCRIBED IN KMC
22.05.070 OF THIS CHAPTER.
(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.
22.05.065 BIDDING PROCEDURE.
AS AN EXCEPTION TO GENERAL POLICY LISTED ABOVE, THE CITY COUNCIL MAY
DESIGNATE A SPECIFIC LOT OR LOTS TO BE MADE AVAILABLE ONLY FOR BID. THIS
PROVISION SHALL APPLY ONLY WHEN THERE IS NO OUTSTANDING APPLICATION
PENDING ON THE LOT OR LOTS. AS DESIGNATED, SEALED BIDS SHALL BE RECEIVED
OFFERING A ONE (1) TIME PREMIUM IN ADDITION TO THE ESTABLISHED LEASE RATE.
HIGHEST BID, HOWEVER, SHALL BE SUBJECT TO ALL PROVISIONS OF REVIEW AND
APPROVAL ESTABLISHED FOR ALL OTHER LEASE APPLICATIONS.
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
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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.
(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,
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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:
(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.
22.05.080 LEASE 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
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RETURN THE LEASE AGREEMENT WITHIN THE SPECIFIED PERIOD SHALL RESULT IN
THE FORFEITURE OF ALL LEASING RIGHTS.
22.05.085 LEASE 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 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.
22.05.090 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 SALE.
(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 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.
(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 MANAGER HAS THE OPTION TO DISPOSE OF SUCH
PROPERTIES IN ACCORDANCE WITH THE SALE PROCEDURES SET OUT IN THIS
TITLE:
(1) BY NEGOTIATED SALE; OR
(2) BY OUTCRY AUCTION TO THE HIGHEST RESPONSIBLE BIDDER; OR
(3) BY COMPETITIVE SEALED BIDS TO THE HIGHEST RESPONSIBLE BIDDER.
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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.
22.05.100 SALE PROCEDURE.
(A) THE CITY MANAGER WILL OBTAIN SUCH AN APPRAISAL FOR A DETERMINATION
OF THE MINIMUM PRICE ON THE LAND.
(B) WHERE ANY PARTY, HEREINAFTER CALLED “APPLICANT,” REQUESTS THAT A
TRACT OR TRACTS OF LAND BE SOLD FOR W HICH 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) IF AT ANY TIME DURING THE PROCESS OF PREPARING FOR SALE, THE
APPLICANT GIVES NOTICE TO THE CITY MANAGER OF WITHDRAWAL OF THE
REQUEST FOR SALE, THE CITY MANAGER SHALL STOP ALL PROCEDURES,
SHALL PAY EXPENSES INCURRED PRIOR TO TERMINATION OF SALE
PROCEDURES, AND SHALL REIMBURSE APPLICANT FOR ANY GOOD FAITH
DEPOSIT ADVANCED IN EXCESS OF ALL EXPENSES INCURRED. (HOWEVER, IF
ANOTHER PARTY DESIRES THE SALE TO PROCEED, FILES AN APPLICATION
FOR SALE, EXECUTES AND FILES AN AGREEMENT TO PURCHASE, AND
ADVANCES SUFFICIENT FUNDS THEREFOR, THEN THE PRIOR APPLICANT WILL
BE REIMBURSED FOR EXPENSES CHARGES WHICH CAN BE ATTRIBUTED TO
THE SUBSEQUENT APPLICANT.)
(3) 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
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REQUEST, THEN ALL EXPENSES INCURRED IN PREPARATION FOR THE SALE
WILL BE PAID FROM THE GOOD FAITH DEPOSIT, AND THE BALANCE, IF ANY,
SHALL BE RETURNED TO THE APPLICANT. IF THE SUMS 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) IF THE LAND APPLIED FOR IS SOLD ON PUBLIC SALE SET IN RESPONSE TO
SUCH REQUEST TO ANYONE OTHER THAN APPLICANT, THEN ON CLOSING OF
THE SALE, THE GOOD FAITH 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) IF THE LAND IN QUESTION IS SOLD TO APPLICANT, THE GOOD FAITH
DEPOSIT ADVANCED, AFTER DEDUCTING THE CITY’S EXPENSES, WILL BE
APPLIED ON THE PAYMENT DUE 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) IF THE TRACT OF LAND PROPOSED TO BE SOLD IS LEASED LAND, 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) 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 IS TO BE PUT UP FOR SUCH COMPETITIVE AUCTION OR SEALED BID
SALE, NOTICE OF SALE AND THE MANNER IN WHICH THE LAND IS TO BE SOLD
SHALL BE PUBLISHED IN A NEWSPAPER OF GENERAL CIRCULATION WITHIN THE
CITY ONCE EACH WEEK FOR TWO (2) SUCCESSIVE WEEKS NOT LESS THAN THIRTY
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(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
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 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.
(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,
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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) 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 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) 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 FAIR MARKET VALUE.
22.05.105 TERMS FOR FINANCING SALE OF CITY 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 SAME RESTRICTIONS CONTAINED IN
THE LEASE AS THE LEASE PROVIDES AT THE TIME OF SALE.
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(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 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, 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) IN THE EVENT OF A CREDIT SALE, THE DOWN PAYMENT REQUIRED SHALL
BE DETERMINED BY THE CITY MANAGER, BUT SHALL NOT BE LESS THAN
FIFTEEN PERCENT (15%) OF THE SALES PRICE.
(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 NEED FOR PUBLIC 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
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DESCRIPTION OF THE 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
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UPON BETWEEN THE CITY AND GRANTEE WITHOUT A PUBLIC SALE IF THE GRANT,
DEVOTION OR LEASE IS ADVANTAGEOUS TO THE CITY.
22.05.130 USE PERMITS.
THE COUNCIL MAY AUTHORIZE THE CITY MANAGER TO GRANT PERMITS FOR THE
TEMPORARY USE OF REAL PROPERTY OWNED BY THE CITY FOR A PERIOD NOT TO
EXCEED FIVE (5) YEARS, 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 COUNCIL SHALL DETERMINE.
22.05.135 ACQUISITION OF REAL 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 ON SUCH TERMS AND
CONDITIONS AS THE COUNCIL SHALL DETERMINE. NO PURCHASE SHALL BE MADE
UNTIL A QUALIFIED APPRAISER HAS APPRAISED THE PROPERTY AND GIVEN THE
COUNCIL AN INDEPENDENT OPINION AS TO THE FULL AND TRUE VALUE THEREOF
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.]
Title 22
CITY-OWNED LANDS
Chapter 22.05
DISPOSITION OF CITY LANDS
22.05.05 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.
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“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.
“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 Authority and Intent.
(a) The provisions of this chapter apply to City-owned real property other than lands within
the Airport Reserve as described in KMC 21.10 and the leasing of tidelands for shore fisheries.
(b) The City may sell, convey, exchange, transfer, donate, dedicate, direct, 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. 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.
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22.05.015 Lands Available for Lease, Sale or Disposal.
(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 any 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 Applicants or 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
(b) Is a 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 a proper power of attorney or a letter of
authorization creating such agency.
22.05.025 Initial Lease Application.
(a) All applications for lease of lands must be submitted to the City on an application form
provided by the City. Applications will be dated on receipt and must include payment of the
nonrefundable application fee as set forth in the City’s schedule of fees approved by the City
Council.
(b) The application form must include the following information:
(1) The purpose of the proposed lease;
(2) The use, nature, type, and estimated cost of improvements to be constructed;
(3) The dates construction is estimated to commence and be completed. 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
(4) 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.
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(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.
22.05.035 No Right of Occupancy – Lease Application Expiration.
(a) Submitting an application for a lease does not give the applicant a right to lease or use
City-owned land.
(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
submitted.
22.05.040 Lease Application Review.
(a) Applications shall be 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 for review and comment, together with the City Manager’s
recommendation for approval or rejection.
(c) Notice of complete applications for new leases, renewals or extensions shall be published
in a newspaper of general circulation within the City and posted on the property. 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 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 Application for Lease Amendment, Assignment, Extension or Renewal.
(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.
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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.
(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.
(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 Competing Lease Applications.
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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 Length of Lease Term.
(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:
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
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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
(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 be 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:
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(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.
(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 Principles and Policy of Lease Rates.
(a) Annual rent shall be computed by multiplying the fair market value of the land by a lease
rate percentage of eight percent (8%) for each parcel; 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 for the purpose of determining annual rent. 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 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
(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
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(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
(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 Lease Bidding Procedure.
With the approval of the City Council, the City Manager may designate a specific lot or lots to be
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 one (1) time premium payment to be paid by the successful bidder; provided,
however, that the high bidder and the bidder’s lease proposal shall be subject to all provisions of
lease application review and approval under this chapter.
22.05.070 Development Incentives.
(a) The City Council may include a lease rent incentive to encourage commercial 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.
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(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 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
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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.
22.05.080 Lease 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 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 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.
22.05.087 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 Kenai’s fiscal year beginning July 1st and ending June 30th.
(c) Lessee shall be responsible for all sales taxes due on payments under the lease.
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22.05.095 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 and that the
City Council has determined are not required for a public purpose, may be listed for sale by
the City Manager. The decision whether or not to sell the land rests in the sole discretion of
the City Council.
(b) The City Council may by ordinance authorize the City Manager to dispose of such
properties in accordance with the intent of this chapter as follows:
(1) 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.
(2) Competitive process:
(i) Public outcry auction to the highest responsible bidder.
(ii) Sealed bid 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. An appraisal to determine fair
market value must be completed within a one (1) year period prior to the date of sale.
(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. An appraisal to
determine fair market value must be completed within a one (1) year period prior to
the 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.
(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.
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22.05.100 Sale 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,
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 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.
(d) If at any time during the process of preparing for sale, the applicant withdraws the
application for sale, the City shall stop all procedures, pay expenses incurred prior to
withdrawal of the application for sale, and reimburse applicant for any deposit advanced in
excess of expenses incurred. However, if another party desires the sale to proceed, files an
application for sale, executes and files an agreement to purchase, and deposits sufficient
funds, then the prior applicant will be reimbursed for expenses which can be attributed to the
subsequent applicant.
(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 applicant’s
deposit, and the balance, if any, shall be returned to the applicant. If the amount of the deposit
is insufficient to pay all of the costs, the applicant will be billed for the balance due.
(f) If the land is sold in a competitive public sale set in response to such request to anyone
other than the applicant, the 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.
(g) If the land is sold to the applicant, any deposit advanced, after deducting the City’s
expenses, will be credited to the purchaser at closing.
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(h) If the land 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.
(i) If the land is to be sold through a competitive process, notice of sale and the manner in
which the land is to be sold 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. 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 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.
(j) If a buyer desires to obtain a preliminary commitment for title insurance or title insurance
to the land, it shall be the responsibility of the buyer to obtain and pay for such commitment
or insurance.
(k) The City Manager is authorized to negotiate a division of the costs of sale 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 the fair market
value of the land.
22.05.101 No Right of Occupancy – Land Purchase Application Expiration.
(a) Submitting an application to purchase land does not give the applicant a right to purchase
or use City-owned land.
(b) The application shall expire upon closing of the sale or rejection of a land purchase
application by the City Council or within twelve (12) months after the date the application has
been submitted.
22.05.105 Terms for Financing Sale of City-Owned 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) 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 shall order a preliminary commitment for title insurance
and a review of the grantee index covering the party desiring to purchase the land 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.
(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) The down payment required, which shall not be less than fifteen percent (15%) of
the sales price; and
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(ii) The length of the note; and
(iii) A fixed or variable interest rate.
22.05.110 Determination as to Need for Public 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 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.
22.05.130 Special Use 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 one (1) year, 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 Council shall determine.
22.05.135 Acquisition of Real 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 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 opinion
as to the fair market value of the land unless the Council, upon resolution so finding,
determines that the public interest will not be served by an appraisal.
(b) 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.
Section 4. Leaseholders of existing leases may convert their current lease to a new lease
form approved by the City Council and governed by the Kenai Municipal Code Enacted by this
Ordinance, except that the existing lease terms will not be entered only by virtue of the lease
conversion.
Section 5. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
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The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Introduced: August 7, 2019
Enacted: August 21, 2019
Effective: September 21, 2019
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Scott Bloom City Attorney
DATE: July 31, 2019
SUBJECT: Ordinance No. 3072-2019 – City Owned Lands
____________________________________________________________________________
Introduction:
Building off recent code changes to airport reserve lands, Ordinance No. 3072-2019 amends the
City’s lands code with the intent of providing land policies and practices that encourage
responsible growth and development to support a thriving business, residential, recreational, and
cultural community. These changes will affect City general fund lands, lands outside the airport
reserve restricted by FAA, and certain harbor lands. The changes provide consistent guidance
for the competitive lease and sale of lands, require development of commercial properties and
discourage land speculation. Amendments to ownership of improvements on leases, the term
table, and the provision of development incentives are designed to encourage interest in
development in the City.
The Ordinance repeals and re-enacts Chapter 22.05, changes the title of Title 22, repeals Chapter
21.15 (airport lands outside the airport reserve), and renames Title 21.
This memo contains procedural guidance and a sectional analysis of the changes below.
Additionally, a copy of the amendments in legislative format (not repeal and replace as in the
Ordinance) and a clean copy is provided.
Procedure:
Administration has presented the material in this Ordinance to Council, the Planning and Zoning
Commission, and Airport Commission, and will present to the Harbor Commission the third week
in August. Administration recommends this Ordinance be referred to the three commissions for
recommendations prior to a public hearing. The Airport Commission meets August 8, the Harbor
Commission, August 19, and the Planning and Zoning Commission, August 14.
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Trailing this Ordinance is the City Administration’s Land Management Plan, which will identify
parcels for sale and lease, among other information, and revisions to the Harbor Code addressing
land leases and sales.
Sectional Analysis:
1. Renaming Title 21: Title 21 is renamed to reflect that it only applies to lands within the
airport reserve as lands restricted by the FAA outside the airport reserve are incorporated
within Title 22 in the Ordinance and will be treated the same as other City lands outside
the airport reserve, in compliance with any FAA restrictions per new KMC 22.05.095 which
also provides for proceeds from sales to go to the airport.
2. Repealing 21.15: Chapter 21.15, which addresses FAA restricted lands outside the airport
reserve, is repealed consistent with the new title for Title 21 addressed above, as all FAA
restricted lands outside the airport reserve lands are incorporated into Chapter 22.05. This
is reflected on pages 2 through 17 of the Ordinance.
3. Repealing and Re-enacting Title 22: Due to the number and significance of the proposed
amendments to Title 22, which only contains one chapter, Chapter 22.05, the entire title
is replaced as opposed to making changes one section at a time. This repeal is reflected
on pages 17 through 32 of the Ordinance.
4. Renaming Title 22: On page 32, the title of Title 22 is changed from General Funds Lands
to City-Owned Lands to reflect the inclusion of FAA restricted lands and certain harbor
lands.
5. Renaming Chapter 22.05: Similarly on page 32, the title of Chapter 22.05 within Title 22
is amended to read “disposition of City Lands,” instead of “Disposition of City General
Fund Lands.”
6. KMC 22.05.005: This is a new definitions section which did not previously exist, providing
key terms for the Chapter.
7. KMC 22.05.010: This section, “Authority and Intent”, was formerly titled “Power to Dispose
of Real Property.” This section now clarifies that it applies to all City owned lands except
lands within the airport reserve and the leasing of tidelands for shore fisheries. It also
makes an affirmative statement of the intent of the chapter: “to provide land policies and
practices that encourage responsible growth and development to support a thriving
business, residential, recreational and cultural community” and requires that all land sales
and leases meet this intent.
8. KMC 22.05.015: “Lands Available for Lease, Sale or Disposal,” formerly titled, “Sale or
Disposal,” clarifies that the City can lease, sell, or dispose of real property, not restricted
from the same, after Council has determined it is not needed for a public purpose by any
lawful method.
9. KMC 22.05.020: “Qualifications of Lease Applicants or Bidders” makes only housekeeping
changes to the former section, describing who can lease or purchase property from the
City.
10. KMC 22.05.025: “Initial Lease Application,” formerly titled “Applications,” describes the
information required and process for submitting lease applications. Changes include
provisions for applications requiring a subdivision, whether the applicant wants an option
to purchase, and whether the lease meets the intent of the Chapter. For properties without
a recent appraisal, this section now requires the applicant to pay for an appraisal, and the
appraisal cost to be credited or refunded once development is complete. The changes are
generally intended to more clearly define what information the City needs to evaluate a
lease and communicate the process going forward and potential costs for lessees.
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11. Former KMC 22.05.030: This section formerly titled “Filing Fee and Deposit” is repealed
in its entirety, as fees and deposits are now addressed in KMC 22.05.025 and other
sections of code.
12. KMC 22.05.035: “No Right of Occupancy-Lease Application Expiration,” formerly titled
“Rights Prior to Leasing,” clarifies that submission of a lease application does not give an
applicant the right to lease or occupy the land. It also provides that a lease application
expires within 12 months of the date of submission, upon execution of a lease, or rejection
of the application by the Council.
13. KMC 22.05.040: “Lease Application Review” formerly titled “Processing Procedure”
provides the following review process:
(i) Administration reviews for completeness and conformance with City ordinances,
(ii) If complete, Manager forwards to appropriate commissions for review and
comment together with a Manager’s recommendation for approval or rejection,
(iii) Notice of complete applications are published and posted on the property, with a
date in which any competing applications must be received,
(iv) The recommendations of the City Manager and any applicable commissions are
provided to Council, which decides whether the application meets the intent of the
code and whether the application should be approved.
14. KMC 22.05.045: “Application for Lease Amendment, Assignment, Extension or Renewal,”
formally “Review,” provides the process for lease amendments, assignments, extensions,
or renewals. Similar to the airport reserve properties, the term of a lease can be based on
other factors than new development, such as the purchase price or estimated remaining
useful life of improvements. These transactions are generally reviewed by the City in the
same way as a new lease application, although lease assignments are not required to be
reviewed by planning and zoning.
15. KMC 22.05.050: “Competing Lease Applications,” replaces former “Appraisal,” to provide
a process for evaluating competing lease applications. Information regarding appraisal
requirements has been incorporated into other code sections. When more than one
application is submitted for a property, the Council can choose which applicant to lease to
based on which application is found to be in the best interest of the City, after review and
recommendation by the City Manager and applicable commissions. A safe harbor is
provided for existing lessees seeking an extension or renewal, by allowing them to
withdraw their application and stop the competitive process at any time prior to Council
making a decision.
16. KMC 22.05.055: “Length of Lease Term” describes how the term of a new lease,
extension, or renewal is determined. The term table matches that of the term table for
properties within the airport reserve. Development of $307,500 or greater receives the
maximum term of 45 years. The term of a lease can also be determined by the purchase
price of improvements, an appraisal value of improvements, or the remaining useful life of
improvements depending on the transaction.
17. KMC 22.05.060: “Principals and Policy of Lease Rates” was formerly 22.05.070. This
provides that annual rent is based on 8% of the fair market value of the land. Annual rental
adjustments are based on the Consumer Price Index (CPI). Every ten years, or pursuant
to extraordinary circumstances, the City will conduct a market analysis to determine
whether its rates and adjustments are in line with the market or whether changes need to
be made. A process for a lessee to appeal is provided in this section as well, however,
CPI adjustments are not appealable.
18. KMC 22.05.65: “Lease Bidding Procedure” provides a process for the City to designate
lots to be leased through a competitive bid process to the highest bidder.
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19. KMC 22.05.070: “Development Incentives” is a new section similar to what is offered
within the airport reserve. Certain improvements to the property paid for by the lessee can
be used to offset up to five years of rental payments.
20. KMC 22.05.075: “Ownership of Improvements” is a new section that provides that the
lessee owns the improvements on the leased property. These improvements can be sold
by the lessee. A process for sale and/ or removal is also provided.
21. KMC 22.05.080 and 22.05.085: “Lease Execution” and “Lease Utilization” remain largely
unchanged and describe the process for executing a lease and how the leased property
can be used by the lessee.
22. KMC 22.05.086: “Form of Lease.” This section provides some of the basic terms for the
lease form that is developed by the City Attorney and approved by the Council. A
resolution to approve the standard lease form will be brought to Council at the same
meeting as the public hearing on this ordinance.
23. KMC 22.05.087: “Lease Payments.” this section provides that the lessee is responsible
for all taxes and special assessments on the property. Rent is paid annually or quarterly
to the City.
24. KMC 22.05.095: “Methods of Sale” incorporates former KMC 22.05.090 “Conveyance to
Encourage New Enterprise,” KMC 22.05.115, 22.05.120 and 22.05.125: “Property
Exchanges”, “Property Sale to Adjacent Owners,” and “Grant or Devotion,” and provides
the methods of sale or disposal for City owned lands. Non-competitive sales are allowed
only to encourage new enterprise, for sale to adjacent property owners when the land is
not practicably usable by others, to other government agencies, or to resolve a land use
conflict. All other sales require a competitive process.
25. KMC 22.05.100: “Sale Procedure” provides the process for selling City property, public
notice of sales, and describes which party is responsible for various costs associated with
a sale.
26. KMC 22.05.101: “No Right of Occupancy-Land Purchase Application Expiration.” This
section explains that an application to purchase land does not convey any rights to the
property and that an application expires after 12 months, a decision by Council not to sell
the property, or upon closing of the sale.
27. KMC 22.05.105: “Terms for Financing Sale of City Owned Lands” this section provides
the process for the City to finance a sale. It provides that the length of the note and rate,
whether fixed or variable, is determined by the Council in the ordinance approving a sale.
28. KMC 22.05.110: “Determination as to Need for Public Use.” This section is unchanged
and requires that before any property can be sold, Council must first determine that it is
not needed for a public use.
29. KMC 22.05.115, 22.05.120 and 22.05.125: “Property Exchanges,” “Property Sale to
Adjacent Owners,” and “Grant or Devotion,” are all repealed as their terms and provisions
are incorporated into 22.05.095.
30. KMC 22.05.130: “Special Use Permits” allows for a more informal use of City lands for a
period of up to one year.
31. KMC 22.05.135: “Acquisition of Real Property” describes the process for the City to
purchase or otherwise acquire new property and remains largely unchanged from the
existing code.
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Title 22
[GENERAL FUND]CITY-OWNED LANDS
Chapter 22.05
DISPOSITION OF CITY [GENERAL FUND]LANDS
22.05.05 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.
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“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.
“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 for
shore fisheries.
(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.
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(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.
(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;
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(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
([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.
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(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.
[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.
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(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].
(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 and posted on the property. The notice must
contain the name of the applicant, a brief description of the land, whether the applicant requests a
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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).
[(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:
Term Table
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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
(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
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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.
(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
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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 for the purpose of determining annual rent. 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 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
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[(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
(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
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(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.
(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.
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(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:
(1) LAND CLEARING, GRAVEL FILL, UTILITY EXTENSIONS AND OTHER
IMPROVEMENTS OR AMENITIES ON OR IN DIRECT CONNECTION WITH THE
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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 commercial 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.
22.05.087 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.
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(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
Kenai’s fiscal year beginning July 1st and ending June 30th.
(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
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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.
(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. An appraisal to determine fair market value must be completed
within a one (1) year period prior to the date of sale.
(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. An appraisal to determine fair market value must be
completed within a one (1) year period prior to the 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.
[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
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21
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,
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.]
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(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
[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.]
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([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
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 MA NAGER. 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:
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(1) THE CITY MANAGER SHALL PROVIDE A NON-EXCLUSIVE LISTING OF LANDS
AVAILABLE FOR SALE.
(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.
22.05.101 No Right of Occupancy – Land Purchase Application Expiration.
(a) Submitting an application to purchase land does not give the applicant a right to purchase or
use City-owned land.
(b) The application shall expire upon closing of the sale or rejection of a land purchase
application by the City Council or within twelve (12) months after the date the application has
been submitted.
22.05.105 Terms for [F]Financing [S]Sale of City-Owned [L]Lands.
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(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
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:
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(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
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
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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],
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.
Page 107
Title 22
CITY-OWNED LANDS
Chapter 22.05
DISPOSITION OF CITY LANDS
22.05.05 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.
“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.
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22.05.010 Authority and Intent.
(a) The provisions of this chapter apply to City-owned real property other than lands within
the Airport Reserve as described in KMC 21.10 and the leasing of tidelands for shore fisheries.
(b) The City may sell, convey, exchange, transfer, donate, dedicate, direct, 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. 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 Disposal.
(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 any 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 Applicants or 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
(b) Is a 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 a proper power of attorney or a letter of
authorization creating such agency.
22.05.025 Initial Lease Application.
(a) All applications for lease of lands must be submitted to the City on an application form
provided by the City. Applications will be dated on receipt and must include payment of the
nonrefundable application fee as set forth in the City’s schedule of fees approved by the City
Council.
(b) The application form must include the following information:
(1) The purpose of the proposed lease;
(2) The use, nature, type, and estimated cost of improvements to be constructed;
(3) The dates construction is estimated to commence and be completed. 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
(4) 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.
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(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.
22.05.035 No Right of Occupancy – Lease Application Expiration.
(a) Submitting an application for a lease does not give the applicant a right to lease or use
City-owned land.
(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
submitted
22.05.040 Lease Application Review.
(a) Applications shall be 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 for review and comment, together with the City Manager’s
recommendation for approval or rejection.
(c) Notice of complete applications for new leases, renewals or extensions shall be published
in a newspaper of general circulation within the City and posted on the property. The notice
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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 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 Application for Lease Amendment, Assignment, Extension or Renewal.
(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.
(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;
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(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.
(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 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 Length of Lease Term.
(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:
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
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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
(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 be 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
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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.
(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.
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22.05.060 Principles and Policy of Lease Rates.
(a) Annual rent shall be computed by multiplying the fair market value of the land by a lease
rate percentage of eight percent (8%) for each parcel; 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 for the purpose of determining annual rent. 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 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
(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
(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 Lease Bidding Procedure.
With the approval of the City Council, the City Manager may designate a specific lot or lots to be
leased through competitive sealed bid. The City Manager shall award the lease to the qualified
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bidder utilizing a procurement procedure which may consider qualitative factors in addition to the
amount of any one (1) time premium payment to be paid by the successful bidder; provided,
however, that the high bidder and the bidder’s lease proposal shall be subject to all provisions of
lease application review and approval under this chapter.
22.05.070 Development Incentives.
(a) The City Council may include a lease rent incentive to encourage commercial 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 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
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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.
22.05.080 Lease 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 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 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.
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22.05.087 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 Kenai’s fiscal year beginning July 1st and ending June 30th.
(c) Lessee shall be responsible for all sales taxes due on payments under the lease.
22.05.095 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 and that the
City Council has determined are not required for a public purpose, may be listed for sale by
the City Manager. The decision whether or not to sell the land rests in the sole discretion of
the City Council.
(b) The City Council may by ordinance authorize the City Manager to dispose of such
properties in accordance with the intent of this chapter as follows:
(1) 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.
(2) Competitive process:
(i) Public outcry auction to the highest responsible bidder.
(ii) Sealed bid 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. An appraisal to determine fair
market value must be completed within a one (1) year period prior to the date of sale.
(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. An appraisal to
determine fair market value must be completed within a one (1) year period prior to
the 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
Page 118
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.
(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 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,
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 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.
(d) If at any time during the process of preparing for sale, the applicant withdraws the
application for sale, the City shall stop all procedures, pay expenses incurred prior to
withdrawal of the application for sale, and reimburse applicant for any deposit advanced in
excess of expenses incurred. However, if another party desires the sale to proceed, files an
application for sale, executes and files an agreement to purchase, and deposits sufficient
funds, then the prior applicant will be reimbursed for expenses which can be attributed to the
subsequent applicant.
(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
Page 119
request, then all expenses incurred in preparation for the sale will be paid from the applicant’s
deposit, and the balance, if any, shall be returned to the applicant. If the amount of the deposit
is insufficient to pay all of the costs, the applicant will be billed for the balance due.
(f) If the land is sold in a competitive public sale set in response to such request to anyone
other than the applicant, the 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.
(g) If the land is sold to the applicant, any deposit advanced, after deducting the City’s
expenses, will be credited to the purchaser at closing.
(h) If the land 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.
(i) If the land is to be sold through a competitive process, notice of sale and the manner in
which the land is to be sold 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. 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 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.
(j) If a buyer desires to obtain a preliminary commitment for title insurance or title insurance
to the land, it shall be the responsibility of the buyer to obtain and pay for such commitment
or insurance.
(k) The City Manager is authorized to negotiate a division of the costs of sale 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 the fair market
value of the land.
22.05.101 No Right of Occupancy – Land Purchase Application Expiration.
(a) Submitting an application to purchase land does not give the applicant a right to purchase
or use City-owned land.
(b) The application shall expire upon closing of the sale or rejection of a land purchase
application by the City Council or within twelve (12) months after the date the application has
been submitted.
22.05.105 Terms for Financing Sale of City-Owned 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) 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 shall order a preliminary commitment for title insurance
and a review of the grantee index covering the party desiring to purchase the land at the
Page 120
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.
(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) The down payment required, which 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.
22.05.110 Determination as to Need for Public 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 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.
22.05.130 Special Use 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 one (1) year, 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 Council shall determine.
22.05.135 Acquisition of Real 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 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 opinion
as to the fair market value of the land unless the Council, upon resolution so finding,
determines that the public interest will not be served by an appraisal.
(b) 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.
Page 121
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3073-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND
APPROPRIATING A GRANT FROM THE STATE OF ALASKA FOR THE PURCHASE OF
LIBRARY BOOKS.
WHEREAS, the City of Kenai received a grant from the State of Alaska, Department of Education
and Early Development for the purchase of library books; and,
WHEREAS, it is in the best interest of the City of Kenai to appropriate these grant funds for the
purpose intended.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the City Manager is authorized to accept a grant from the State of Alaska,
Department of Education and Early Development in the amount of $7,000 for the purchase of
library books and to execute grant agreements and to expend the grant funds to fulfill the purpose
and intent of this ordinance.
Section 2. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Library – State Grants $7,000
Increase Appropriations –
Library - Books $7,000
Section 3. That the City Manager is authorized to accept a grant and expend the funds to
fulfill the purpose of this Ordinance.
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
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Ordinance No. 3073-2019
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance:
Introduced: August 7, 2019
Enacted: August 21, 2019
Effective: August 21, 2019
Page 123
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Jo Joiner, Library Director
DATE: July 19, 2019
SUBJECT: Ordinance 3073-2019
____________________________________________________________________________
The library has been awarded the annual public library assistance grant by the Alaska State
Library. As per the grant award, the amount of $7,000 is to be used for the purchase of books and
should be deposited in account 001-440-4666.
The library director completes an application each year in order to receive these funds. Certain
minimum standards must be met in order to receive this grant. These include reporting
requirements on expenditures and collection statistics, number of hours that the library is open
to the public, minimum educational requirements for the Library Director and continuing
education requirements.
Your consideration is appreciated.
Page 124
Page 125
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3074-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $1,504.82 IN THE FY2019 GENERAL
FUND – POLICE DEPARTMENT FOR STATE TRAFFIC GRANT OVERTIME EXPENDITURES.
WHEREAS, the Kenai Police Department joins with other law enforcement agencies statewide to
support Alaska Highway Safety Office (AHSO) traffic safety programs to reduce fatalities and
injuries on roadways; and,
WHEREAS, AHSO traffic-related overtime funds require no local match and allow the department
to provide specific traffic safety patrols; and,
WHEREAS, actual AHSO overtime expenditures for traffic safety patrols totaled $1,504.82 from
May 13, 2019 to June 3, 2019; and,
WHEREAS, overtime for these additional traffic safety patrols was not budgeted and the
department is requesting appropriation into the FY19 overtime budget equal to the amount of
AHSO grant funding received.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That the City Manager is authorized to accept these grant funds from the State of
Alaska in the amount of $1,504.82 and to expend grant funds to fulfill the purpose and intent of
this ordinance.
Section 2. That the Fiscal Year 2019 estimated revenues and appropriations be increased as
follows:
General Fund:
Increase Estimated Revenues –
State Grants - Police $1,504.82
Increase Appropriations –
Police - Overtime $1,504.82
.
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.
Page 126
Ordinance No. 3074-2019
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment. The appropriation and transfer shall be made effective June 30,
2019 and shall be considered an action of Fiscal year 2019.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance:
Introduced: August 7, 2019
Enacted: August 21, 2019
Effective: August 21, 2019
Page 127
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: 7-22-2019
SUBJECT: Ordinance No. 3074-2019 - Ordinance accepting and appropriating
Alaska Highway Safety Office grant funds for Police Overtime
______________________________________________________________________
The Kenai Police Department continues to participate in traffic enforcement overtime patrols,
reimbursed to the City of Kenai through a grant by the Alaska Highway Safety Office (AHSO).
These overtime patrols were not budgeted in the FY19 budget.
Actual overtime costs for traffic enforcement around the Memorial Day holiday, that qualifies for
AHSO reimbursement, was $1,504.82.
AHSO – overtime reimbursements are deposited into the general fund. I would respectfully
request appropriation to the police overtime account for FY19.
Page 128
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3077-2019
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER & SEWER SPECIAL
REVENUE AND WATER & SEWER IMPROVEMENTS CAPITAL PROJECT FUNDS FOR
ENGINEERING AND DESIGN SERVICES TO RELOCATE WELL HOUSE #1 WHICH WAS
DAMAGED BY THE NOVEMBER 30, 2018 MAGNITUDE 7.0 SOUTHCENTRAL ALASKA
EARTHQUAKE.
WHEREAS, a magnitude 7.0 earthquake struck Southcentral Alaska on November 30, 2018
causing damage to the City’s Well House #1; and,
WHEREAS, the administration has determined that Well House #1 should be relocated and the
production well abandoned rather than being reconstructed; and,
WHEREAS, arsenic in the water produced from Well #1 exceeds current regulatory levels and
the production of Well #1 has declined to insignificant levels; and,
WHEREAS, Well #1 is currently and has been off line for years allowing for its decommissioning;
and,
WHEREAS, the City insured Well House #1 for replacement cost which also provides for
reconstruction on an alternate site; and,
WHEREAS, the City’s insurer, Alaska Public Entity Insurance, has retained Nelson Engineering
to provide design documents for the disassembly and reconstruction of the well house; and,
WHEREAS, the City will be responsible for some costs associated with reconstruction of the
building on an alternate site and the requested funds will allow Nelson Engineering to prepare
site specific design sheets for reconstruction at the Well #2, near Beaver Loop off Shotgun Drive,
site; and,
WHEREAS, once designed, Nelson Engineering will provide engineer estimates for the project
including the City’s share for which an Ordinance will be prepared requesting funding for the
remainder of the project.
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:
Page 129
Ordinance No. 3077-2019
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Water & Sewer Special Revenue Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $10,000
Increase Appropriations –
Transfer to Other Funds $10,000
Water & Sewer Improvements Capital Project Fund:
Increase Estimated Revenues –
Transfer from Other Funds $10,000
Increase Appropriations –
Construction $10,000
Section 3. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of August, 2019.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, CMC, City Clerk
Approved by Finance:
Introduced: August 7, 2019
Enacted: August 21, 2019
Effective: August 21, 2019
Page 130
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: July 30, 2019
SUBJECT: Ordinance No. 3077-2019
____________________________________________________________________________
The purpose of this memo is to recommend adoption of Ordinance 3077-2019 that will provide
funding for site specific design for the relocation of Well House #1 which was damaged by the
magnitude 7.0 earthquake which struck Southcentral Alaska on November 30, 2018.
The City insurance on the damaged facility will provide for total replacement cost at the existing
site or reconstruction on an alternate site of the City’s choosing. The City will be responsible for
the incremental costs of moving to an alternate site vs reconstruction on the existing site. The
administration has determined that Well #1 should be decommissioned and the building relocated
to the Well #2, at Beaver Loop and Shotgun Drive, site.
The City’s insurer, Alaska Public Entity Insurance, has contracted with Nelson Engineering to
provide design and bid ready documents for the building disassembly and reconstruction. Nelson
Engineering performed the original damage assessment at the site. The City will provide funding
for design of site specific sheets for reconstruction at the Well #2 site with the requested $10,000.
Once design is complete, cost estimates will be prepared and subsequent legislation will be
prepared authorizing completion of the project and providing supplemental funding for the City’s
deductible and the incremental costs associated with reconstruction on an alternate site. Your
support for Ordinance 3077-2019 is respectfully requested.
Page 131
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: July 29, 2019
SUBJECT: Action/Approval – Special Use Permit for Kenai Chamber of Commerce
and Visitor Center for the Moosemeat John Cabin
____________________________________________________________________________
The Kenai Chamber of Commerce and Visitor Center has requested a Special Use Permit to use
and operate the Moosemeat John Cabin located on approximately 10,000 square feet (100 feet
x 100 feet) of Lot 1, Gusty Subdivision No. 8, a City-owned parcel upon which the Kenai Visitor
and Cultural Center is also located. Since 2013, the Kenai Chamber of Commerce and Visitor
Center has allowed the use of the Moosemeat John Cabin during the summer months by the
Kenai Historical Society in conjunction with its operations in Old Town Kenai. The Kenai Chamber
of Commerce operated on the premises from 1977 until 2012. In 2012, the Kenai Chamber of
Commerce merged with the Kenai Convention and Visitor’s Bureau to form the new entity, “Kenai
Chamber of Commerce and Visitor Center”.
A Special Use Permit that was granted for the use of the Moosemeat John Cabin between August
2018 and July 2019 has expired. The Kenai Chamber of Commerce and Visitor Center would like
a Special Use Permit for the same use of the Moosemeat John Cabin for August 2019 to July
2020. The Kenai Chamber of Commerce and Visitor Center complied with the terms of the Special
Use Permit for the Moosemeat John Cabin for August 2018 to July 2019.
If the City Council approves the attached Special Use Permit with Kenai Chamber of Commerce
and Visitor Center for the Moosemeat John Cabin, the City Manager may sign the Special Use
Permit granting the continued use of the cabin by the Kenai Chamber on behalf of the City.
Attachment
cc: Kenai Chamber of Commerce and Visitor Center
Page 132
Special Use Permit – 2019
Kenai Chamber of Commerce & Visitor Center Moosemeat John Cabin Page 1 of 5
SPECIAL USE PERMIT
The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below,
hereby grants the Kenai Chamber of Commerce and Visitor Center (PERMITTEE) the right to use
the Premises, identified on the attached Exhibit A to this Permit, and described as:
The southeast 100 foot x 100 foot portion of Lot 1, Gusty Subdivision, Addition No. 8, Kenai
Recording District, according to Plat No. 91-9,
to use and operate the “Moosemeat John” Cabin.
1. Use/Term. Permittee shall have use of the Premises on the 8th day of August 2019 through
the 30th day of July 2020.
2. Fee. The Permittee shall not be charged a fee for the use or privilege specified herein.
3. No Exclusivity. The use by the Permittee of the Premises is limited to the purposes
specified herein and is not intended to grant any exclusive use to the described Premises
except as otherwise provided herein. This use is also 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.
4. Improvements. Permittee shall not make any permanent improvements to the Premises.
5. Preparation of Premises. It is Permittee’s responsibility to prepare the Premises and to
assure itself to its own satisfaction that the Premises are safe for its purposes. The City
does not make any warranty or guaranty of the suitability of the Premises for Permittee’s
intended purposes.
6. Trash and Debris. The Premises must be returned to its original condition at the end of
each use. Clean up and/or repair charges beyond normal wear and tear will be billed to
Permittee based upon cost of repair. Debris and trash shall be collected and removed from
the Premises by Permittee. Permittee shall alert City (Parks and Recreation Department)
of unsightly, unsanitary, dirty or other conditions on the Premises which exist prior to
Permittee’s use.
7. No Alcohol or Illegal Substances. No possession or consumption of alcoholic beverages,
marijuana or illegal substances is permitted on the Premises.
8. 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.
9. Personalty. Any or all personal property placed or used upon lands or in facilities may be
removed and/or impounded by the City, 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 its invitees to the Premises.
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Special Use Permit – 2019
Kenai Chamber of Commerce & Visitor Center Moosemeat John Cabin Page 2 of 5
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
Premises. 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.
11. 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.
12. 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 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. 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 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 prior to any use.
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Special Use Permit – 2019
Kenai Chamber of Commerce & Visitor Center Moosemeat John Cabin Page 3 of 5
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.
13. 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.
14. Contact Information. The Contact information for the Permittee, and the person in
responsible charge for Permittee during the term of the Permit, for purposes of notice and
all communications from City to Permittee is:
Johna Beech
President/Chief Operating Officer
Kenai Chamber of Commerce & Visitor Center
11471 Kenai Spur Hwy.
Kenai, AK 99611
15. 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 arising from or out of Permittee’s activities on or use of the Premises. This shall be
a continuing obligation and shall remain in effect after termination of this Permit.
16. Authority. By signing this Permit, Permittee represents that it has read this agreement and
it agrees to be bound by the terms and conditions herein and that the person signing this
Permit is duly authorized by the organization to bind the organization hereunder.
CITY OF KENAI KENAI CHAMBER OF COMMERCE &
VISITOR CENTER
By:____________________________ By:_______________________________
Paul Ostrander Date ____________________(Title) Date
City Manager
Page 135
Special Use Permit – 2019
Kenai Chamber of Commerce & Visitor Center Moosemeat John Cabin Page 4 of 5
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 (Title) on behalf of
_________________________.
Notary Public for Alaska
My Commission Expires:
Page 136
Special Use Permit – 2019
Kenai Chamber of Commerce & Visitor Center Moosemeat John Cabin Page 5 of 5
ATTEST:
Jamie Heinz, CMC, City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Page 137
MAIN STKENAI SPUR HWY
F R O N TA G E R DMAIN STREET LOOP RD.
Date: 7/28/2019
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.
Moosemeat John CabinSpecial Use Permit
Southeast 100 ft x 100 ftportion of Lot 1, Gusty Subd, Addition No. 8
Exhibit A
0 5025 Feet
Page 138
Page 139
KENAI AIRPORT COMMISSION
REGULAR MEETING
JUNE 13, 2019 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
CHAIR GLENDA FEEKEN, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Feeken called the meeting to order at 6:02 p.m.
a. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Commissioners Present:
Commissioners Absent:
G. Feeken, P. Minelga, K. Dodge, D. Pitts
J. Bielefeld, J. Zirul
Staff/Council Liaison Present: Airport Manager M. Bondurant, Airport Assistant E.
Brincefield, Council Member J. Glendening
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Minelga MOVED to approve the agenda with the addition of item 6.f. –
Consideration of a Special Use Permit to Weaver Brothers for storage; Commissioner Dodge
SECONDED the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENT – None.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARY
a. March 14, 2019
MOTION:
Commissioner Dodge MOVED to approve the meeting summary of March 14, 2019 and
Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED.
b. April 11, 2019
Page 140
____________________________________________________________________________________
Airport Commission Meeting Page 2 of 4
June 13, 2019
MOTION:
Commissioner Dodge MOVED to approve the meeting summary of April 11, 2019 and
Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS
a. Discussion – FY2020 Budget
The Airport Manager reported the FY2020 budget had been passed noting areas where the
budget had been cut to comply with the reduction requirement.
It was noted the airport should focus on economic development. There was discussion
regarding the condition of Willow Street and clarification was provided that the matter had been
submitted to the Public Works Department.
6. NEW BUSINESS
a. Discussion/Recommendation – Special Use Permit to Alaska Air Fuel, Inc.
MOTION:
Commissioner Pitts MOVED to approve the Special Use Permit to Alaska Air Fuel, Inc. and
Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED.
b. Discussion/Recommendation – Special Use Permit to Crowley Fuels, LLC
MOTION:
Commissioner Dodge MOVED to approve the Special Use Permit to Crowley Fuels, LLC and
Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED.
c. Discussion/Recommendation – Special Use Permit to Empire Airlines, Inc.
MOTION:
Commissioner Minelga MOVED to approve the Special Use Permit to Empire Airlines, Inc. and
Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED.
d. Discussion/Recommendation – Special Use Permit to Everts Air Fuel, Inc.
MOTION:
Commissioner Minelga MOVED to approve the Special Use Permit to Everts Air Fuel, Inc. and
Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED.
e. Discussion/Recommendation – Special Use Permit to United Parcel Service
Co.
MOTION:
Page 141
____________________________________________________________________________________
Airport Commission Meeting Page 3 of 4
June 13, 2019
Commissioner Pitts MOVED to approve the Special Use Permit to United Parcel Service Co. and
Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED.
[Clerk’s Note: This item was added during approval of the agenda.]
f. Discussion/Recommendation – Special Use Permit to W eaver Brothers
MOTION:
Commissioner Pitts MOVED to approve the Special Use Permit to Weaver Brothers and
Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED.
7. REPORTS
a. Airport Manager
Airport Manager Bondurant reported on the recent TSA inspection, the upcoming certification
inspection, and the recent Air Fair.
b. City Council Liaison
Council Member Glendening reported on past Council Meeting actions.
8. NEXT MEETING ATTENDANCE NOTIFICATION – July 11, 2019
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioner Pitts noted the Terminal Rehabilitation Project was likely trying for tenants.
Commissioner Feeken asked if any leases were remaining that were not aviation related.
Commissioner Minelga noted The Upper Deck tenants would like to be able to turn the volume
for the speaker down.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION ITEMS
a. April 2019 Mid-Month Report
b. May 2019 Mid-Month Report
c. FAA Alaskan Region Airport Division Airport Improvement Program FY1982-FY2018
d. April 2019 Kenai Historical Society Newsletter
e. May 7, 2019 FAA Letter on Unmanned Aircraft Systems
f. April 2019 Enplanements
g. 2019 Float Plane Basin Activity
12. ADJOURNMENT
MOTION:
Page 142
____________________________________________________________________________________
Airport Commission Meeting Page 4 of 4
June 13, 2019
Commissioner Minelga MOVED to adjourn and Commissioner Dodge SECONDED the motion.
There were no objections; SO ORDERED.
Meeting summary prepared and submitted by:
___________________________________
Jamie Heinz
City Clerk
Page 143
KENAI AIRPORT COMMISSION
REGULAR MEETING
JULY 11, 2019 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
CHAIR GLENDA FEEKEN, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Feeken called the meeting to order at 6:01 p.m.
a. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Commissioners Present:
Commissioners Absent:
G. Feeken, P. Minelga, K. Dodge, D. Pitts
J. Bielefeld, J. Zirul
Staff/Council Liaison Present: Airport Manager M. Bondurant, Airport Assistant E.
Brincefield, City Manager P. Ostrander, Assistant to the City
Manager C. Cunningham
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Dodge MOVED to approve the agenda and Commissioner Minelga SECONDED
the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENT – None.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARY
a. June 13, 2019
MOTION:
Commissioner Minelga MOVED to approve the meeting summary of June 13, 2019 and
Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
Page 144
____________________________________________________________________________________
Airport Commission Meeting Page 2 of 3
July 11, 2019
6. NEW BUSINESS
a. Discussion/Recommendation – Land Sale Leasing Program Presentation.
City Manager Ostrander and Assistant to City Manager Cunningham presented on proposed
changes to the Land Sale Leasing Policy noting the administration was striving for uniform policies
for both leasing and sale.
7. REPORTS
a. Airport Manager
Airport Manager Bondurant reported on the following:
• The Terminal Rehabilitation Project was moving along;
• The Airfield Marking Project would begin in the coming weeks;
• The FAA Certification Inspection went well; reported on corrective items;
• The Field of Flowers sign was completed;
• The Wildlife Refuge / State Parks display in the terminal was to be updated.
b. City Council Liaison
None.
8. NEXT MEETING ATTENDANCE NOTIFICATION – August 8, 2019
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioner Minelga thanked the City Manager and Assistant to the City Manager for their
presentation.
Commissioner Dodge echoed appreciation for the presentation; looking forward to a streamlined
process.
Commissioner Pitts noted he was glad SOAR was moving forward with another lease application.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION ITEMS
a. June 2019 Mid-Month Report
b. July 2019 Mid-Month Report
c. May 2019 Enplanements
d. 2019 Float Plane Basin Activity
e. Airport Bulletin 10-2019 Security Awareness
12. ADJOURNMENT
MOTION:
Commissioner Minelga MOVED to adjourn and Commissioner Dodge SECONDED the motion.
Page 145
____________________________________________________________________________________
Airport Commission Meeting Page 3 of 3
July 11, 2019
There were no objections; SO ORDERED.
Meeting summary prepared and submitted by:
___________________________________
Jamie Heinz
City Clerk
Page 146
KENAI HARBOR COMMISSION
JUNE 10, 2019 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
CHAIR MIKE DUNN, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Dunn called the meeting to order at approximately 6:00 p.m.
a. Pledge of Allegiance
Chair Dunn led those assembled in the Pledge of Allegiance.
b. Roll Call
Roll was confirmed as follows:
Commissioners present: Chair M. Dunn, Vice-Chair C. Crandall, B. Peters, G.
Greenberg, J. Desimone
Commissioners absent: N. Berga, C. Hutchison
Staff/Council Liaison present: Public Works Director S. Curtin, Administrative Assistant K.
Feltman, Council Member J. Glendening
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Crandall MOVED to approve the agenda and Commissioner Peters SECONDED
the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENTS – (10 minutes) None scheduled.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARY
a. May 13, 2019
MOTION:
Commissioner Peters MOVED to approve the meeting summary of May 13, 2019; and
Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Discussion/Recommendation – FY21, FY22 Capital Improvement Project List
Page 147
____________________________________________________________________________________
Harbor Commission Meeting Page 2 of 3
June 10, 2019
The Public Works Director provided an overview of what qualified as a Capital Improvement Project
and each project submitted; also noted the earthquake damage to the dock was to be repaired in
FY20.
There was discussion regarding the priority of each project.
MOTION:
Commissioner Desimone MOVED to recommend priority #1 be float replacement, priority #2 be
operational dock cranes, priority #3 be dock dredging, priority #4 be safety, and priority #5 be
concrete boat ramps; Commissioner Crandall SECONDED the motion. There were no objections;
SO ORDERED.
7. REPORTS
a. Public Works Director – S. Curtin reported on the following:
• Special Use Permit being developed for dock crane use;
• South Spruce Street, Dock Road, and the dock area had been maintained
in preparation for the dipnet fishery;
• Recruiting temporary hires for the dipnet fishery;
• Noted the upcoming Kite Festival.
b. Commission Chair – No report.
c. City Council Liaison – J. Glendening encouraged everyone complete the Dock &
Harbor Use Survey, suggested a Bluff Erosion Project update be provided at the
next meeting, noted the Title 11 rewrite was with the City Attorney and 90%
completed, and provided an overview of the June 5th City Council meeting.
8. NEXT MEETING ATTENDANCE NOTIFICATION – August 12, 2019
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioner Peters thanked those that attended the meeting, noted he was looking forward to
the Kite Festival, and was looking forward to an update on the Bluff Erosion Project.
Commissioner Crandall noted he attended the City Council meeting which the U.S. Coast Guard
representative provided a report regarding their presence together with Fish & Game’s presence
during the dipnet fishery; added the U.S. Coast Guard would provide a report at the end of the
fishery to offer recommendations for improvement.
Commission Chair Dunn thanked all for participating.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION ITEMS – None.
12. ADJOURNMENT
MOTION:
Page 148
____________________________________________________________________________________
Harbor Commission Meeting Page 3 of 3
June 10, 2019
Commissioner Peters MOVED to adjourn and Commissioner Crandall SECONDED the motion.
There were no objections; SO ORDERED.
There being no further business before the Commission, the meeting was adjourned at 7:30 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jamie Heinz
City Clerk
Page 149
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Bondurant, Airport Manager
DATE: July 8, 2019
SUBJECT: July Mid-month Report
2018 Terminal Rehabilitation Project – Construction: This project is well underway and
all areas of the terminal are experiencing some form of construction.
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 as soon as the
FAA grant is received. Project consists of crack sealing, seal coating, and airfield
marking.
2019 Alaska Fire Training Facility Rehabilitation – This project will be bid late July, early
August with construction to start in late fall 2019.
2019 Acquire Aircraft Rescue & Firefighting Trucks (ARFF) – Airport Administration is
working with FAA to secure funding to replace the 1998 ARFF vehicles used at the
Alaska Fire Training Facility.
In-house Activities –
Airport Operations continues summer maintenance, wildlife hazing, fence maintenance,
brush cutting, etc.
Compliance with Security Directive 1542-18-01A – Airport Administration was required by
TSA to write a Law Enforcement Officer (LEO) training program on airport security
program responsibilities for the Kenai Police Department. A training program was written,
approved by TSA, and all KPD officers completed the training.
Page 150
Page 2 of 2
2
Runway Safety Action Team – Meeting is scheduled for Tuesday, July 30 in the Kenai
City Council Chambers at 2:30pm. These meetings are held at Towered airports annually
to improve surface safety. This gives airfield users that are actively involved in air traffic
operations and movement of aircraft, operating vehicles and equipment on the airport
operations area a chance to discuss ways to enhance surface safety at the Kenai Airport.
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.
Page 151
OPERATIONS
Month 2019 2018 2017 2016 2015
MAY 64 39 23 44 57
JUNE 117 139 106 85 124
JULY 261 144 151 164
AUGUST 164 103 191 148
SEPTEMBER 156 107 115 71
OCTOBER 47 6 CLSD 17
NOVEMBER CLSD CLSD CLSD CLSD
Total 181 806 489 586 581
0*not reported
FUEL SALES
Month 2019 2018 2017 2016 2015
MAY $1,685 $134 $784 $1,175 $8
JUNE $5,870 $3,203 $3,423 $1,656 $0
JULY $3,635 $3,420 $3,036 $1,873
AUGUST $5,890 $4,325 $3,647 $1,710
SEPTEMBER $5,590 $4,901 $3,830 $1,380
OCTOBER $1,060 $583 CLSD $553
Total $7,555.00 $19,512 $17,436 $13,344 $5,524
Slips Rented
Private 4
Commerical 0
Rev 5/2019
FLOAT PLANE BASIN ACTIVITY
2015-2019
Page 152
June Enplanement Report
Month RAVN
ALASKA
GRANT
AVIATION
Total
2019 2018 Change
from 2018
January 5,248 1,537 6,785 6,148 637
February 4,573 1,384 5,957 5,651 306
March 4,941 1,867 6,808 6,999 -191
April 4,702 1,739 6,441 6,383 58
May 5,330 1,868 7,198 7,501 -303
June 5,817 1,839 7,656 8,048 -392
July 10,568
August 11,485
September 7,990
October 7,433
November 6,905
December 7,016
Totals 30,611 10,234 40,845 92,127 115
Terminal - Vehicle Parking Revenues
June
FY18 $19,113 FY18 Total $232,372
FY19 $18,112 FY19 YTD $245,918
RAVN
5,817
75.98%
Grant
1,839
24.02%
June 2019
7,656
0
2500
5000
7500
10000
12500
15000
17500
20000
22500
25000
27500
Vehicle Parking Revenues
FY18
FY19
Page 153
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: July 8, 2019
SUBJECT: June 2019 Monthly Report
This month the Kenai Animal Shelter took in 77 animals. Animal intake and disposition:
DOGS:
INTAKE 22 DISPOSITION 19
Waiver 4 Adopted 6
Stray 10 Euthanized 0
Impound 1 Claimed 13
Protective Custody 3 Field Release 0
Quarantine 2 Transferred to Rescue 0
Other Intakes 2 Other Dispositions 0
CATS:
INTAKE 47 DISPOSITION 44
Waiver 37 Adopted 16
Stray 9 Euthanized 2
Impound 0 Claimed 2
Protective Custody 0 Field Release 0
Quarantine 0 Transferred to Rescue 24
Other Intakes 1 Other Dispositions 0
OTHER ANIMALS:
INTAKE 8 DISPOSITION 6
Bird 2 Bird 2
Tortoise 1 Tortoise 1
Guinea Pig 4 Guinea Pig 2
Page 154
Page 2 of 2
Animal Control Mid-Month Report
0 Citations
6 Animal dropped with After Hours (days we are closed but cleaning and with KPD)
73.33 Volunteer Hours Logged
30 Animals are known borough animals
25 Field Investigations & patrols
Statistical Data:
403 2017 YTD Intakes
366 2018 YTD Intakes
438 2019 YTD Intakes
Rabbit 1 Rabbit 1
DOA: 2 OTHER STATISTICS:
Dog 2 Licenses (City of Kenai Dog Licenses) 21
Cat 2 Microchips (Dog and Cat) 2
Page 155
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: August 1, 2019
SUBJECT: Finance Department, July 2019 Mid-month Report
In preparation for the 2019 Personal Use Fishery, the department assured all shacks were online
and ready to process transactions, software enhancements were complete, the Dipnet App was
updated and City Hall was prepared for daily reconciling activities. The department successfully
recruited for shack operators independent of Parks & Recreation for the first time. The success
of this recruitment may leed to furture changes in staffing and recruitment of fishery workers.
With the completion of the budget the department’s focus has switched to closing of 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 Department’s IT Intern has been a huge help in deployment and opterations of Personal Use
Fishery shacks as well as assisting other IT projects. Wiring of the Public Safety Building for
deployment of cameras is nearly complete.
The Department is preparing to provide telephone and internet service to the Kenai Visitor Center
with project completion date of August 15th.
Page 156
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: July 15, 2019
SUBJECT: Quarterly Financial Report for the quarter ended June 30, 2019.
Attached is a quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport
Fund, Water/Sewer Fund, and Senior Fund as of June 30, 2019. This report is essentially on a
cash basis, so there are accounts that may not look reasonable.
In the General Fund for example, sales and property tax revenue only includes payments made
to the City by the Borough through May. The second calendar quarter 2018 sales tax filings and
tax payments are not represented in the balances. FY2019 revenue amounts will not be accurate
for a few months because of the delay in receipt of the payments.
State and Federal is below budget in all funds because of PERS aid. The State doesn’t actually
give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly
we have not booked expenditures for the PERS the State is covering, so the Non-Departmental
department is way under budget. At year-end we will record revenue and expenditures for these
items.
The actual financial performance of each fund will be presented when the City’s Comprehensive
Annual Financial Report is completed. This report will be on the modified accrual basis for
Governmental Funds and will show a more accurate picture of each funds financial performance
for FY2019. The report is expected in November after completion of the annual audit the second
week of October and will be presented to Council in early December.
Page 157
Quarterly General Fund
Expenditure Report
For Quarter Ended June 30, 2019
Original *
FY2018 FY2019 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ 1,024,939$ 1,037,439$ 668,232$ (369,207)$ 64.41%
Taxes 10,722,698 10,980,713 10,980,713 9,718,945 (1,261,768) 88.51%
Licenses/Permits and Ambulance 580,156 528,000 528,000 537,773 9,773 101.85%
State/Federal 740,441 885,464 1,070,877 491,910 (578,967) 45.94%
Dock/Multipurpose/Miscellaneous 152,902 119,500 119,500 138,074 18,574 115.54%
Fines and Forfeitures 67,347 93,000 121,759 92,076 (29,683) 75.62%
Interest and Miscellaneous 316,871 531,741 637,791 1,015,279 377,488 159.19%
Transfers/Central Admin Fees 2,103,951 2,020,420 2,020,420 1,618,593 (401,827) 80.11%
Total Revenues 14,684,366 16,183,777 16,516,499 14,280,882 (2,235,617) 86.46%
EXPENDITURES & TRANSFERS
General Government
01 City Clerk 247,305$ 311,005$ 312,555$ 297,654$ 14,901$ 4.77%
11 Legislative 158,693 174,150 174,150 162,742 11,408 6.55%
12 Legal 297,294 359,998 359,998 324,945 35,053 9.74%
13 City Manager 327,461 352,446 352,446 333,877 18,569 5.27%
14 Human Resources - 169,809 169,809 113,141 56,668 33.37%
15 Finance 635,325 709,531 709,531 665,614 43,917 6.19%
16 Land Administration 1,333 24,337 29,337 12,831 16,506 56.26%
18 Non-Departmental 478,599 903,077 910,577 456,163 454,414 49.90%
19 Planning and Zoning 198,156 226,876 226,876 207,110 19,766 8.71%
20 Safety 3,760 19,150 20,040 890 19,150 95.56%
Total General Government 2,347,926 3,250,379 3,265,319 2,574,967 690,352 21.14%
Public Safety
21 Police 2,852,647 3,107,201 3,244,300 2,969,270 275,030 8.48%
22 Fire 3,052,652 3,171,122 3,178,590 2,887,100 291,490 9.17%
23 Communications 788,262 858,551 858,551 784,724 73,827 8.60%
29 Animal Control 381,856 422,192 423,692 398,265 25,427 6.00%
Total Public Safety 7,075,417 7,559,066 7,705,133 7,039,359 665,774 8.64%
Public Works
31 Public Works Administration 196,415 185,811 185,811 137,879 47,932 25.80%
32 Shop 617,384 669,652 669,652 593,519 76,133 11.37%
33 Streets 961,944 1,077,437 1,077,437 805,655 271,782 25.22%
34 Buildings 320,542 386,950 399,060 332,621 66,439 16.65%
35 Street Lighting 173,925 172,819 176,396 157,297 19,099 10.83%
60 Dock 52,665 74,783 71,206 34,245 36,961 51.91%
Total Public Works 2,322,875 2,567,452 2,579,562 2,061,216 518,346 20.09%
Parks and Recreation & Culture
03 Visitor Center 179,048 180,251 180,251 172,829 7,422 4.12%
40 Library 893,001 892,033 887,283 813,915 73,368 8.27%
#Parks, Recreation & Beautification 1,009,708 1,112,167 1,276,522 1,050,183 226,339 17.73%
Total Parks and Recreation & Culture 2,081,757 2,184,451 2,344,056 2,036,927 307,129 13.10%
Total Operating Expenditures 13,827,975 15,561,348 15,894,070 13,712,469 2,181,601 13.73%
Transfer to other funds
Street Improvement Capital Project Fund 75,172 200,000 200,000 200,000 - 0.00%
Senior Center Impr. Capital Projects - 45,670 45,670 34,500 11,170 24.46%
Kenai Recreation Center Capital Project Fund - 27,500 27,500 27,500 - 0.00%
New City Shop Capital Project Fund 35,000 - - - - -
Public Safety Building Capital Proj. Fund 120,000 35,000 35,000 35,000 -
Kenai Animal Shelter Capital Proj. Fund 35,000 - - - -
Cemetery Improvements Capital Proj. Fund 250,000 - - - -
Senior Citizen Special Revenue Fund 176,739 170,857 170,857 128,142 42,715 25.00%
Debt Service 142,002 143,402 143,402 143,271 131 0.09%
Total Transfer to other funds 833,913 622,429 622,429 568,413 54,016 8.68%
Total Expenditures & Transfers 14,661,888 16,183,777 16,516,499 14,280,882 2,235,617 13.54%
Net Revenues over(under) Expenditures 22,478$ -$ -$ -$ -$
*Note: The original budget includes outstanding encumbrances at 6/30/2018.
Page 158
Quarterly Personal Use Fishery Fund
Expenditure Report
For Quarter Ended June 30, 2019
Original *
FY2018 FY2019 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ 17,182$ 17,182$ 98,950$ 81,768$ 475.89%
Beach Parking 174,614 175,000 175,000 118,307 (56,693) -32.40%
Beach Camping 210,269 225,000 225,000 129,939 (95,061) -42.25%
Dock Launch & Park 111,528 115,000 115,000 91,358 (23,642) -20.56%
Dock Parking Only 12,009 15,000 15,000 9,547 (5,453) -36.35%
Participant Drop-off Fee 7,481 8,000 8,000 5,943 (2,057) -25.71%
Interest Earnings 1,522 750 750 - (750) -100.00%
PERS Grant 1,546 4,169 4,169 - (4,169) -100.00%
Credit Card Fees 674 (1,500) (1,500) (3,250) (1,750) 116.67%
Total Revenue 519,643 558,601 558,601 450,794 (107,807) -19.30%
EXPENDITURES
Public Safety 114,542$ 96,686$ 96,686$ 92,165$ 4,521$ 4.68%
Streets 32,938 61,066 60,484 41,924 18,560 30.69%
Boating Facility 56,380 72,137 72,137 44,164 27,973 38.78%
Parks, Recreation & Beautification 225,445 328,712 329,294 272,541 56,753 17.23%
Total Expenditures 429,305 558,601 558,601 450,794 107,807 19.30%
Net Revenues over Expenditures 90,338$ -$ -$ -$ -$
*Note: The original budget includes outstanding encumbrances at 6/30/2018.
Page 159
Quarterly Airport Fund
Expenditure Report
For Quarter Ended June 30, 2019
Original *
FY2018 FY2019 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ -$ 1,836,787$ 1,437,004$ (399,783)$ 0.00%
State/Federal 21,891 36,385 36,385 - (36,385) 0.00%
Interest , Leases & Fees 797,425 716,745 716,745 733,445 16,700 102.33%
Terminal Revenues 701,429 748,025 748,025 690,483 (57,542) 92.31%
Landing Fees 401,556 432,500 432,500 383,580 (48,920) 88.69%
Transfers In 1,210,348 1,230,025 1,230,025 1,203,690 (26,335) 97.86%
Total Revenues 3,132,649 3,163,680 5,000,467 4,448,202 (552,265) 88.96%
EXPENDITURES & TRANSFERS
Terminal Area 578,328$ 630,109$ 627,241$ 521,685$ 105,556$ 16.83%
Airfield 1,631,810 1,731,779 1,801,476 1,663,968 137,508 7.63%
Administration 287,537 596,199 334,406 287,704 46,702 13.97%
Other Buildings & Areas 199,008 (68,278) 173,948 147,115 26,833 15.43%
Training Facility 36,125 38,474 259,409 257,009 2,400 0.93%
Total Expenditures 2,732,808 2,928,283 3,196,480 2,877,481 318,999 9.98%
Transfer to other funds
Airport Improvement Capital Projects 397,157 233,221 1,803,987 1,570,721 233,266 0.00%
Total Transfer to other funds 397,157 233,221 1,803,987 1,570,721 233,266 12.93%
Total Expenditures & Transfers 3,129,965 3,161,504 5,000,467 4,448,202 552,265 11.04%
Net Revenues over Expenditures 2,684$ 2,176$ -$ -$ -$
*Note: The original budget includes outstanding encumbrances at 6/30/2018.
Page 160
Quarterly Water Sewer Fund
Expenditure Report
For Quarter Ended June 30, 2019
Original *
FY2018 FY2019 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ -$ -$ -$ -$ 0.00%
State/Federal 17,347 33,668 33,668 - (33,668) 0.00%
Water/Sewer Fees 2,796,242 2,863,453 2,863,453 2,814,357 (49,096) 98.29%
Penalty and Interest 36,959 43,250 43,250 43,414 164 100.38%
Interest and Miscellaneous 36,550 19,000 19,000 5,882 (13,118) 30.96%
Total Revenues 2,887,098 2,959,371 2,959,371 2,863,653 (95,718) 96.77%
EXPENDITURES & TRANSFERS
Water 841,231$ 967,771$ 980,271$ 849,050$ 131,221$ 13.39%
Sewer 310,002 499,384 499,384 372,926 126,458 25.32%
Wastewater Treatment Plant 1,116,312 1,208,057 1,208,057 1,061,277 146,780 12.15%
Total Expenditures 2,267,545 2,675,212 2,687,712 2,283,253 404,459 15.05%
Transfer to other funds -
Water & Sewer Capital Projects 146,193 - - - - -
Total Transfer to other funds 146,193 - - - - -
Total Expenditures & Transfers 2,413,738 2,675,212 2,687,712 2,283,253 404,459 15.05%
Net Revenues over Expenditures 473,360$ 284,159$ 271,659$ 580,400$ 308,741$
*Note: The original budget includes outstanding encumbrances at 6/30/2018.
Page 161
Quarterly Senior Fund
Expenditure Report
For Quarter Ended June 30, 2019
Original *
FY2018 FY2019 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ 24,354$ 24,354$ 61,750$ 37,396$ 253.55%
State Grants 198,577 203,626 203,626 181,305 (22,321) 89.04%
USDA Grant 18,958 15,000 15,000 14,464 (536) 96.43%
Choice Waiver 195,012 200,000 200,000 150,831 (49,169) 75.42%
KPB Grant 126,207 126,207 126,207 126,207 - 100.00%
United Way 9,598 15,000 15,000 3,631 (11,369) 24.21%
Rents & Leases 8,324 13,000 13,000 8,174 (4,826) 62.88%
Miscellaneous Donations 40,797 25,000 28,500 4,279 (24,221) 15.01%
Donations - Senior Connection 50,000 50,000 50,000 100,000 50,000 200.00%
Meal Donations 82,836 82,500 82,500 67,998 (14,502) 82.42%
Ride Donations 6,870 7,000 7,000 4,215 (2,785) 60.21%
Transfer from General Fund - Operations 176,739 170,857 170,857 128,143 (42,714) 75.00%
Transfer from General Fund - Capital - 45,670 11,170 - (11,170) 0.00%
Other (40) 300 300 35 (265) 11.67%
Total Revenues 913,878 978,514 947,514 851,032 (96,482) 89.82%
EXPENDITURES & TRANSFERS
Senior Citizen Access 157,065$ 157,364$ 157,364$ 133,262$ 24,102$ 15.32%
Congregate Meals 220,661 285,370 253,495 219,263 34,232 13.50%
Home Meals 205,563 209,875 210,750 191,445 19,305 9.16%
Senior Transportation 80,086 81,234 81,234 78,080 3,154 3.88%
Choice Waiver 250,503 244,671 244,671 228,982 15,689 6.41%
Total Expenditures 913,878 978,514 947,514 851,032 96,482 10.18%
Transfer to other funds -
- - - - - -
Total Transfer to other funds - - - - - -
Total Expenditures & Transfers 913,878 978,514 947,514 851,032 96,482 10.18%
Net Revenues over Expenditures -$ -$ -$ -$ -$
*Note: The original budget includes outstanding encumbrances at 6/30/2017.
Page 162
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: July 15, 2019
SUBJECT: June 2019 Quarterly Investment Report
City of Kenai Investment Portfolio
On June 30, 2019 the City had investments with a market value of $21,345,244 that is down from
$22,280,896 on March 31, 2019. The City’s portfolio is yielding 2.19% that is down from 2.24%
on March 31, 2019.
City’s Investment Portfolio
US Agency Securities $ 2,522,705
AML Investment Pool 470,479
Wells Fargo Money Market 1,165,162
FDIC Insured Certificates of Deposit 16,077,640
Bank Balance 1,109,258
Total $ 21,345,244
Permanent Fund Investments
The second quarter 2019 saw a continued rally in the equity markets and no change in the Federal
Funds Rate. Analysts predict a Federal Funds Rate decrease in July. Equities propelled the
portfolio to a return of 10.82% for calendar year 2019. Since inception the portfolio has returned
8.08%. As of June 30, 2019 the portfolio value was $28,132,512, comprised of $24,731,367
(87.91%) Airport Land Sale Permanent Fund, $3,248,893 (11.55%) General Land Sale
Permanent Fund monies, and $152,252 (0.54%) Kenai Community Foundation holdings.
Page 163
CITY OF KENAI
INVESTMENT PORTFOLIO SUMMARY
June 30, 2019
Fair Market Current
Value Yield
Cash & Cash Equivalents
Wells Fargo Checking 1,109,258$ 0.40%
Wells Fargo Secured Money Market 1,165,162 2.24%
FDIC Insured Certificates of Deposit 16,077,640 2.39%
Alaska Municipal League Investment Pool 470,479 2.34%
Total Cash & Cash Equivalents 18,822,539 2.26%
Average
Yield
Government Securities
Maturities Less than 1 Year - 0.00%
Maturities 1 to 2 Years 2,522,705 1.64%
Maturities Greater than 2 Years - 0.00%
Total Government Securities 2,522,705 1.64%
Total Portfolio 21,345,244$ 2.19%
Investment Portfolio - Purchase Price 20,394,240$
Investment Portfolio - Fair Value 06/30/18 20,134,606
Fair Value Adjustment - 06/30/18 (259,634)
Fair Value Adjustment thru - 6/30/19 269,386
Cummulative Change in Fair Value 9,752$
June 30, 2019
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
Liquidity 20%
Minimum
Maturity 1 - 2 years Maturity over 2 years
30% Maximum
Portfolio Liquidity
Policy Minimum/Maximum Actual
Page 164
CITY OF KENAI
Investments 06-30-19 COK
CITY OF KENAI
INVESTMENTS
6/30/2019
Current year cost or Unrealized
Expected Call 06/30/18 06/30/19 Gain Accrued EFFECT.
SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE
FHLMC 1.70 8/24/20 1 TIME 5/24/18 w/ 5
days 3134GBMD1 1,000,000 978,760.00 997,600.00 18,840.00 5,997.22 1.700
FNMA 1.375 3/30/21
9/30/2016 Quarterly
w/10 days. Step 3/17
1.50, 3/18 1.75, 3/19
2.0, 3/20 3.25 3136G3DV4 500,000 485,080.00 498,500.00 13,420.00 1,737.85 2.000
FNMA 1.50 5/25/21 11/25/2016 Quarterly
w/10 days.3136G3MW2 502,479 481,300.00 494,930.00 13,630.00 750.00 1.500
TVA 3.875 2/15/21 Bullet 880591EL2 555,678 514,815.00 515,870.00 1,055.00 7,319.44 1.370
TOTAL 2,558,156.88 2,459,955.00 2,506,900.00 46,945.00 15,804.51 1.643
FDIC Insured CD's CD - 12/31/10
2.45 GMATBK 5/3/21 57803 02007GJR5 245,082 245,082.23 246,109.85 1,027.62 986.71 2.450
3.55 AXP 12/4/23 27471 02589AA28 249,998 249,998.13 254,721.60 4,723.47 643.38 3.160
2.45 BWW 5/10/22 35141 05580ARK2 245,000 245,000.00 246,325.45 1,325.45 855.15 2.450
33681 06062R5M0 245,000 245,000.00 245,044.10 44.10 4,077.74 2.500
3.10 BANK MIDWEST CD 9/15/23 5170 063615BM9 245,000 245,000.00 250,130.30 5,130.30 2,205.67 3.100
2.60 OZK 11/4/19 110 06417NDZ3 245,000 245,000.00 245,369.95 369.95 471.21 2.600
2.45 SONHBT 5/23/22 24540 06426KBB3 245,000 245,000.00 246,332.80 1,332.80 131.56 2.450
1.60 BPRN 10/28/19 58513 064520AH2 245,000 242,040.40 244,532.05 2,491.65 42.96 1.600
2.30 BACR 10/18/22 57203 06740KLD7 245,000 236,385.80 244,605.55 8,219.75 1,142.44 2.300
2.85 BAY ST. SVGS BK 4/6/20 90311 072623AK7 245,000 245,000.00 246,271.55 1,271.55 478.25 2.850
1.65 BHLB 10/28/19 23621 084601KU6 245,000 242,199.65 244,563.90 2,364.25 730.97 1.650
2.4 COF 4/19/22 33954 1404202E9 247,000 240,825.00 247,995.41 7,170.41 1,185.60 2.400
2.4 COF 8/30/22 4297 14042RHS3 245,000 237,809.25 245,656.60 7,847.35 1,949.26 2.400
1.65 CATY 10/28/19 18503 149159LK9 245,000 242,199.65 244,573.70 2,374.05 44.30 1.650
2.60 CENBKK 6/18/20 35450 156444BG5 245,000 245,000.00 245,999.60 999.60 226.88 2.600
3.15 CFBANK 9/18/23 28263 15721UCQ0 245,000 245,000.00 250,632.55 5,632.55 274.87 3.150
3.30 C 9/7/23 7213 17312QS34 245,000 245,000.00 252,053.55 7,053.55 2,569.48 3.300
1.70 ADS 8/28/19 57570 20033AWB8 245,000 242,885.65 244,757.45 1,871.80 34.23 1.700
1.65 CWBKNA 12/30/19 57176 20084TJW4 247,000 243,549.41 246,424.49 2,875.08 357.30 1.650
2.75 DISCOVER BANK 9/21/20 5649 254673TS5 245,000 245,000.00 246,685.60 1,685.60 1,919.73 2.750
2.55 CMS 1/18/22 57293 29278TAK6 245,000 240,724.75 246,908.55 6,183.80 256.75 2.550
2.55 FRMRBT 3/19/20 1291 309162AE5 245,000 245,000.00 245,656.60 656.60 205.40 2.550
2.60 FRSTFD 1/10/20 58647 32026UMA1 245,000 245,000.00 245,595.35 595.35 2,984.30 2.600
2.85 FIBIND 6/30/20 34607 32056GDE7 245,000 245,000.00 246,643.95 1,643.95 593.03 2.850
1.60 FRME 12/30/19 4365 32082BEL9 247,000 243,369.10 246,362.74 2,993.64 346.48 1.600
2.30 FINN 02/21/20 5452 332135HH8 245,000 243,576.55 245,225.40 1,648.85 154.38 2.300
2.70 FRC 7/7/20 59017 33616CBR0 245,000 245,000.00 246,308.30 1,308.30 2,102.30 2.700
3.10 SRCE 10/21/22 9087 33646CKJ2 245,000 245,000.00 250,808.95 5,808.95 2,122.44 3.100
2.65 First St Bk Bigfork 10991 33651EAD4 245,000 245,000.00 245,622.30 622.30 195.66 2.650
2.80 FIRST WESTN TR BK 57607 337504AE4 245,000 245,000.00 246,225.00 1,225.00 187.95 2.800
2.35 GS 8/30/22 33124 38148PNS2 245,000 237,333.95 245,281.75 7,947.80 1,908.65 2.350
2.30 HSBC 7/14/22 57890 40434YLE5 245,000 237,341.30 244,982.85 7,641.55 2,593.64 2.300
2.55 HAFC 10/21/19 24170 410493DS6 245,000 245,000.00 245,281.75 281.75 171.16 2.550
2.60 IBKC 3/23/20 28100 45083AKP6 245,000 245,000.00 245,747.25 747.25 1,780.11 2.600
1.65 ILBKIL 10/31/19 33708 45906ABU0 245,000 242,177.60 244,568.80 2,391.20 343.34 1.650
2.30 KENNEB 08/24/20 17897 489265AZ1 245,000 242,243.75 245,333.20 3,089.45 1,991.55 2.300
1.65 KEY 10/25/19 17534 49306SZA7 245,000 242,226.60 244,568.80 2,342.20 742.05 1.650
2.60 LSAVBK 1/3/20 253 549104EF0 245,000 245,000.00 245,580.65 580.65 3,123.92 2.600
2.25 MBFI 2/14/20 3628 55266CYJ9 245,030 243,432.00 245,151.90 1,719.90 256.75 2.250
1.70 MSBKGR 10/24/19 5766 56062HAD1 245,000 242,395.65 244,622.70 2,227.05 79.88 1.700
57777 58958PFB5 245,000 245,000.00 245,022.05 22.05 3,930.74 2.400
1.70 MERICK 8/30/19 34519 59013JA25 245,000 242,868.50 244,752.55 1,884.05 365.15 1.700
2.65 Metabank Sioux Falls SD 30776 59101LFD4 245,000 245,000.00 245,433.65 433.65 4,037.80 2.650
2.60 MS 2/15/22 32992 61747MK83 245,000 240,996.70 247,236.85 6,240.15 2,373.48 2.600
1.75 MS 9/30/19 34221 61760ADR7 245,000 242,981.20 244,757.45 1,776.25 1,444.83 1.700
2.05 NTLNYC 8/30/22 18734 634116CM7 245,000 234,438.05 243,040.00 8,601.95 440.33 2.050
3.40 NCBSVG 12/21/23 32612 635573AL2 247,234 247,233.86 253,219.75 5,985.89 228.22 3.220
2.75 NEWBUF 1/17/20 31257 643056BG8 245,000 245,000.00 245,835.45 835.45 258.42 2.750
2.15 NRTHFL 10/25/22 28710 66612ABX5 245,000 234,842.30 243,390.35 8,548.05 966.91 2.150
2.80 ORIENTAL BANK 9/14/20 31469 68621KCC3 245,000 245,000.00 246,805.65 1,805.65 2,086.19 2.800
2.80 SALLMA 4/17/24 58177 7954502H7 245,000 247,737.69 246,771.35 (966.34) 1,409.59 2.590
2.10 SMARTB 11/27/19 58463 83172HDR8 245,000 243,436.90 244,958.35 1,521.45 42.29 2.100
1.75 SOWNAT 5/8/20 4801 845182BA1 245,000 240,563.05 244,105.75 3,542.70 270.17 1.750
2.75 SBIIN 02/16/23 33682 856285HZ7 245,000 239,877.05 247,572.50 7,695.45 2,491.95 2.750
2.35 SYF 10/20/22 27314 87164WTC2 245,000 236,856.20 244,980.40 8,124.20 1,135.73 2.350
2.15 EVER 10/28/22 34775 87270LAV5 245,000 234,785.95 243,360.95 8,575.00 894.75 2.150
2.05 THFDSL 10/27/21 30012 88413QBT4 245,000 237,356.00 244,039.60 6,683.60 894.42 2.050
1.60 TWNBNK 10/28/19 18487 89210PBL6 245,000 242,040.40 244,532.05 2,491.65 42.96 1.600
3.00 TOWN 9/27/21 35095 89214PCA5 245,000 245,000.00 249,184.60 4,184.60 1,953.29 3.000
2.80 UBS 9/14/20 57565 90348JDQ0 245,000 245,000.00 246,810.55 1,810.55 319.51 2.800
17266 90421MCL5 245,000 245,000.00 245,034.30 34.30 3,996.18 2.450
3.25 VYSTAR CREDIT UNION 12/11/20 68490 92891CCB6 245,000 245,000.00 248,719.10 3,719.10 676.27 3.250
1.70 WEX 10/18/19 34697 92937CGA0 245,000 242,449.55 244,625.15 2,175.60 844.41 1.700
2.00 WFC 10/27/22 3511 94986T2N6 245,000 240,016.70 244,843.20 4,826.50 872.60 2.000
2.50 ZION 8/14/19 2270 98970L3N1 245,000 245,000.00 245,058.80 58.80 3,842.81 2.500
TOTAL FDIC Insured CD's 15,938,344.43 15,791,276.52 15,999,353.24 208,076.72 78,286.43 2.390
WELLS MONEY MKT 1,160,659.20 1,160,659.20 1,160,659.20 - 4,502.94 2.240
AML POOL - City ACCT Agreed to Amlip 470,019.46 470,019.46 470,019.46 - 459.51 2.340
Agreed to GL 20,127,179.97 19,881,910.18 20,136,931.90 255,021.72 99,053.39
WF Cash Agreed to WF 1,109,258.00 1,109,258.00 1,109,258.00 - - 0.400
TOTAL 21,236,437.97 20,991,168.18 21,246,189.90 255,021.72 99,053.39
MONTHS 9,751.93
TOTAL CURRENT YIELD 2.1929%
Max/Min Return Actual Difference
Maturity over 2 years 30% Maximum 6,373,856.97 2.5849%5,934,075 439,781.51 OK
Liquidity 20% Minimum 4,249,237.98 2.0039%10,831,798 (6,582,560.26) OK
Maturity 1 - 2 years 2.1307%4,480,316
2.1929%21,246,190
-
2.50 BOBIN 7/31/19
2.40 MERBKB 7/30/19
2.45 UMPQ 7/31/19
Page 165
CITY OF KENAI
PERMANENT FUND
INVESTMENT PORTFOLIO SUMMARY
June 30, 2019
Current or Current
Average Portfolio Target Portfolio
30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 Yield Weight Weight Maximum
Fixed Income
Cash & Cash Equivalents 1,403,998 90,388 1,661,032 1,545,212 1,431,086 2.24%5.09%
Total Cash & Cash Equivalents 1,403,998 90,388 1,661,032 1,545,212 1,431,086
Government & Corporate Securities
Government Securities 5,372,788 7,514,414 5,874,888 6,821,504 9,265,968 2.26%32.94%
Corporate Securities 5,577,526 5,166,325 5,153,955 4,570,777 1,984,868 2.93%7.06%
Total Government & Corporate Securities 10,950,314 12,680,739 11,028,843 11,392,281 11,250,836 2.54%40.00%
Total Fixed Income 12,354,312 12,771,127 12,689,875 12,937,493 12,681,922 2.53%45.09%45.00%65.00%
Equities
Domestic Equities
Large-Cap Index 5,579,731 5,702,415 5,007,131 5,751,108 5,619,537 19.98%20.00%25.00%
Small-Cap Index 1,412,562 1,402,625 1,170,059 1,323,301 1,385,556 4.93%5.00%10.00%
Mid-Cap Index 2,802,375 2,819,740 2,416,173 2,807,855 2,818,713 10.02%10.00%15.00%
Total Domestic Equities 9,794,668 9,924,780 8,593,363 9,882,264 9,823,806 34.93%35.00%50.00%
International Equities
Europe Pacific ETF 2,957,795 2,893,212 2,577,221 2,845,695 2,800,691 9.96%10.00%15.00%
Vanguard Emerging Market ETF 1,588,428 1,451,135 1,321,379 1,449,173 1,432,090 5.09%5.00%10.00%
Total International Equities 4,546,223 4,344,347 3,898,600 4,294,868 4,232,781 15.05%15.00%25.00%
Real Estate
Vanguard REIT ETF 1,140,300 1,410,465 1,315,599 1,443,620 546,130 1.94%2.00%7.00%
Total Real Estate 1,140,300 1,410,465 1,315,599 1,443,620 546,130 1.94%2.00%7.00%
Infrastructure
Flexshares Stoxx Global Broad Infrastucture - - - - 847,875 3.01%3.00%8.00%
Total Infrastructure - - - - 847,875 3.01%3.00%8.00%
Total Equities 15,481,191 15,679,592 13,807,562 15,620,752 15,450,592
Total Portfolio 27,835,503 28,450,719 26,497,437 28,558,245 28,132,514 10.82%100.02%100.00%155.00%
Total ALSPF Balance 24,612,777 25,156,764 23,429,629 25,251,842 24,731,368
Total GLSPF Balance 3,078,461 3,146,501 2,930,478 3,158,393 3,248,893
Total Kenai Community Foundation 144,265 147,454 137,330 148,011 152,252
Fair Market Value
0.00%
25.00%
50.00%
75.00%
Fixed Income Large-Cap Index Small-Cap Index Mid-Cap Index Europe Pacific ETF Vanguard Emerging
Market ETF
Vanguard REIT ETF
Portfolio Composition
Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight
Current Month Current Quarter Year to Date Last 1 Year Inception to Date
Portfolio 3.98%2.83%10.82%5.50%8.08%
Benchmark 3.95%2.87%11.07%6.01%8.20%
-5.00%
0.00%
5.00%
10.00%
15.00%Portfolio Performance
Page 166
$15,000,000
$17,000,000
$19,000,000
$21,000,000
$23,000,000
$25,000,000
$27,000,000 Total ALSPF Balance
Transfer of $1,195,313
to Airport Operations.
Transfer of $1,147,714
to Airport Operations.
Transfer of $1,184,356
to Airport Operations.
Transfer of $1,210,348
to Airport Operations.
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Total GLSPF Balance
Transfer of $1,158,473
to Airport Operations.
Transfer of $154,172 to
General Fund Operations.
Transfer of $153,493 to
General Fund Operations.
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000 Total Kenai Community Foundation Balance
$50,000 investment.
$5,000
investment.
Initial investment of $66,143.
Transfer of $149,802 to
General Fund Operations.
Transfer of $161,561 to
General Fund Operations.
Transfer of $1,203,690
to Airport Operations.
Page 167
Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCECurrentMonthCurrentQuarterYear toDateLatest 1YearInception toDatePortfolio3.98 2.83 10.82 5.50 8.08Benchmark3.95 2.87 11.07 6.01 8.200.002.004.006.008.0010.0012.00Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:Equity BlendPORTFOLIO COMPOSITIONFixed Income45%US Lg Cap20%US Md Cap10%US Sm Cap5%Int'l10%Emer Mkts5%Real Estate5%MANAGEMENT TEAMClient Relationship Manager: Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager: Bill Lierman, CFA®Contact Phone Number: 907/272 -7575ACCOUNT ACTIVITYPortfolio Value on 05-31-19 27,053,909Contributions 0Withdrawals -900Change in Market Value 923,396Interest 29,440Dividends 125,137Portfolio Value on 06-30-19 28,130,983CITY OF KENAI PERMANENT FUNDSAccount Statement - Period Ending June 30, 2019Page 168
Alaska Permanent Capital Management Co.
PORTFOLIO SUMMARY AND TARGET
CITY OF KENAI PERMANENT FUNDS
June 30, 2019
%
Asset Class & Target Market Value Assets Range
FIXED INCOME (45%)
US Fixed Income (40.0%) 11,237,988 39.9 35% to 65%
Cash (5.0%) 1,462,947 5.2 0% to 10%
Subtotal: 12,700,936 45.1
EQUITY (50%)
US Large Cap (20.0%) 5,598,992 19.9 15% to 25%
US Mid Cap (10.0%) 2,818,713 10.0 5% to 15%
US Small Cap (5.0%) 1,385,556 4.9 0% to 10%
Developed International Equity (10.0%) 2,800,691 10.0 5% to 15%
Emerging Markets (5.0%) 1,432,090 5.1 0% to 10%
Subtotal: 14,036,042 49.9
ALTERNATIVE INVESTMENTS (5%)
Real Estate (2.0%) 546,130 1.9 0% to 5%
Infrastructure (3.0%) 847,875 3.0 0% to 6%
Subtotal: 1,394,005 5.0
TOTAL PORTFOLIO 28,130,983 100
Page 169
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityFNMA & FHLMC19,493 FHLMC POOL G14203 104.5620,383 104.09 20,290 0.07 780 65 2.164.000% Due 04-01-26148,675 FG POOL C91270 105.67 157,108 106.52 158,369 0.56 6,690 558 2.444.500% Due 10-01-29145,803 FG POOL J30401 101.30 147,694 102.55 149,526 0.53 4,374 365 2.223.000% Due 01-01-30147,246 FG POOL G16255 99.70 146,809 100.81 148,433 0.53 3,681 307 2.282.500% Due 07-01-32145,284 FNCL POOL 995373 106.72 155,046 107.28 155,868 0.55 6,538 545 2.814.500% Due 02-01-39405,657 FN POOL AJ1405 104.48 423,848 105.46 427,826 1.52 16,226 1,352 2.764.000% Due 09-01-41179,249 FN POOL AL3180 100.20 179,613 102.03 182,891 0.65 5,377 448 2.653.000% Due 01-01-43250,175 FG POOL V80057 100.23 250,762 102.28 255,874 0.91 7,505 625 2.633.000% Due 05-01-43183,330 FN POOL AT2324 100.20 183,702 102.03 187,055 0.66 5,500 458 2.643.000% Due 05-01-43334,036 FG POOL G08722 102.09 341,004 103.23 344,832 1.23 11,691 974 2.763.500% Due 09-01-46112,774 FN POOL BD2453 99.89 112,650 101.97 114,997 0.41 3,383 282 2.763.000% Due 01-01-47623,275 FN POOL AS8810 102.04 635,984 102.95 641,674 2.28 21,815 1,818 2.823.500% Due 02-01-47239,039 FN POOL MA2930 103.56 247,554 104.46 249,709 0.89 9,562 797 2.664.000% Due 03-01-4798,775 FN POOL MA3638 103.09 101,831 103.42 102,152 0.36 3,951 329 2.664.000% Due 04-01-49Accrued Interest8,923 0.033,103,989 3,148,420 11.19 8,923CORPORATE BONDS100,000 ABBVIE INC 101.31 101,307 100.67 100,667 0.36 2,900 443 2.692.900% Due 11-06-22100,000 GOLDMAN SACHS GROUP INC 101.98 101,985 103.74 103,745 0.37 3,625 1,601 2.523.625% Due 01-22-23100,000 AVALONBAY COMMUNITIES 100.82 100,816 101.42 101,419 0.36 2,850 839 2.452.850% Due 03-15-23100,000 AFLAC INC 104.97 104,975104.98 104,982 0.37 3,625 161 2.303.625% Due 06-15-23200,000 BANK OF NEW YORK MELLON 97.83 195,666 99.48 198,958 0.71 4,400 1,650 2.332.200% Due 08-16-23200,000 JPMORGAN CHASE & CO 105.18 210,362 106.19 212,388 0.75 7,750 3,229 2.443.875% Due 02-01-24Page 170
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity100,000 MORGAN STANLEY IND FINANCIAL SRV 103.71 103,711 105.99 105,986 0.38 3,875 667 2.553.875% Due 04-29-24100,000 WELLS FARGO & COMPANY 99.88 99,882 103.48 103,476 0.37 3,300 1,027 2.583.300% Due 09-09-24150,000 KIMCO REALTY CORP 94.92 142,377 101.83 152,745 0.54 4,950 2,062 2.943.300% Due 02-01-25150,000 REYNOLDS AMERICAN INC 108.47 162,700 106.04 159,060 0.57 6,675 352 3.324.450% Due 06-12-25150,000 CITIGROUP INC 101.65 152,470 105.27 157,905 0.56 5,550 2,605 2.813.700% Due 01-12-26100,000 ENBRIDGE INC 101.13 101,135 103.28 103,282 0.37 3,700 1,706 3.233.700% Due 07-15-27100,000 AT&T INC 119.32 119,320 124.27 124,271 0.44 6,375 2,125 4.596.375% Due 03-01-41100,000 HOME DEPOT INC 115.63 115,627 121.23 121,231 0.43 4,875 1,842 3.574.875% Due 02-15-44100,000 BANK OF AMERICA CORP 106.31 106,308 113.57 113,575 0.40 4,443 1,987 3.674.443% Due 01-20-48Accrued Interest22,298 0.081,918,642 1,985,988 7.06 22,298DOMESTIC LARGE CAP EQUITY FUNDS/ETF18,975 FLEXSHARES QUAL DIV ETF 40.79 773,897 44.86 851,218 3.03 NA8,800 ISHARES MSCI USA MIN VOLATILITY ETF 61.68 542,784 61.73 543,224 1.93 NA14,350 SPDR S&P 500 ETF 142.48 2,044,588 293.00 4,204,550 14.95 NA3,361,269 5,598,992 19.90DOMESTIC MID CAP EQUITY FUNDS/ETF14,510 ISHARES CORE S&P MIDCAP 400 ETF 72.98 1,058,938 194.26 2,818,713 10.02 NADOMESTIC SMALL CAP EQUITY FUNDS/ETF17,700 ISHARES S&P SMALLCAP 600 INDEX ETF 35.36 625,801 78.28 1,385,556 4.93 NAINTERNATIONAL EQUITY FUNDS/ETF22,785 ISHARES ETF CORE MSCI EAFE 51.54 1,174,45061.40 1,398,999 4.97 NA21,325 ISHARES MSCI EAFE INDEX FUND 61.68 1,315,324 65.73 1,401,692 4.98 NA2,489,774 2,800,691 9.96EMERGING MARKET FUNDS/ETF27,840 ISHARES ETF CORE MSCI EMERGING MKTS 42.08 1,171,464 51.44 1,432,090 5.09 NAREAL ESTATE & INFRASTRUCTURE16,625 FLEXSHAR STX GLOBAL BROAD INF ETF 49.49 822,771 51.00 847,875 3.01 NA6,500 JPMORGAN BETABUILDERS MSCI US REIT ETF 76.55 497,605 84.02 546,130 1.94 NA1,320,376 1,394,005 4.96Page 171
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityU.S. TREASURY 300,000 US TREASURY NOTES 99.34 298,008 100.72 302,157 1.07 6,375 17 1.762.125% Due 06-30-21525,000 US TREASURY NOTES 101.31 531,879 100.67 528,528 1.88 10,500 29 1.722.000% Due 12-31-21325,000 US TREASURY NOTES 97.12 315,644 101.18 328,835 1.17 6,906 19 1.722.125% Due 06-30-22350,000 US TREASURY NOTES 99.72 349,016 103.16 361,060 1.28 9,187 3,071 1.732.625% Due 02-28-23250,000 US TREASURY NOTES 100.23 250,566 102.93 257,325 0.91 5,937 2,231 1.772.375% Due 08-15-24150,000 US TREASURY NOTES 99.71 149,561 105.24 157,857 0.56 4,125 11 1.822.750% Due 06-30-25400,000 US TREASURY NOTES 99.75 399,014 104.01 416,048 1.48 10,000 3,342 1.862.500% Due 02-28-26330,000 US TREASURY NOTES 95.63 315,595 98.42 324,793 1.15 5,362 685 1.871.625% Due 05-15-26250,000 US TREASURY NOTES 95.26 238,145 100.76 251,905 0.90 5,000 639 1.892.000% Due 11-15-26190,000 US TREASURY NOTES 95.29 181,049 102.37 194,512 0.69 4,275 546 1.942.250% Due 11-15-27220,000 US TREASURY NOTES 98.74 217,225 106.33 233,922 0.83 6,050 2,273 1.952.750% Due 02-15-28300,000 US TREASURY NOTES 102.38 307,141 109.68 329,052 1.17 9,375 1,197 1.993.125% Due 11-15-28495,000 US TREASURY NOTES 100.69 498,419 105.45 521,992 1.86 12,994 4,882 2.002.625% Due 02-15-29170,000 US TREASURY NOTES 128.88 219,090 132.96 226,034 0.80 7,437 950 2.334.375% Due 11-15-39600,000 US TREASURY NOTES 102.98 617,889 107.28 643,686 2.29 17,250 2,203 2.532.875% Due 05-15-49Accrued Interest22,094 0.084,888,239 5,099,800 18.13 22,094AGENCIES250,000 FHLMC 99.73 249,325 99.61 249,022 0.89 4,250 1,086 2.021.700% Due 09-29-20250,000 FEDERAL HOME LOAN BANK - STEP UP99.85 249,625 99.75 249,372 0.89 5,000 639 2.082.000% Due 11-14-22300,000 FEDERAL FARM CREDIT BANK 100.00 300,000 100.00 300,006 1.07 8,550 1,591 2.852.850% Due 04-24-25200,000 FHLB 99.79 199,580 100.00 200,010 0.71 7,250 2,054 3.623.625% Due 03-19-27Accrued Interest5,370 0.02998,530 1,003,781 3.57 5,370Page 172
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityCASH AND EQUIVALENTSCASH RECEIVABLE 13,953 13,953 0.05 NADIVIDEND ACCRUAL 20,544 20,544 0.07WF ADV GOVT MM FD-INSTL #1751 1,428,450 1,428,450 5.081,462,947 1,462,947 5.20TOTAL PORTFOLIO 22,399,969 28,130,983 100 321,792 58,685Page 173
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountPURCHASESCORPORATE BONDS06-21-19 06-25-19 ABBVIE INC 100,000 101,307.002.900% Due 11-06-22DOMESTIC LARGE CAP EQUITY FUNDS/ETF06-18-19 06-20-19 ISHARES MSCI USA MIN VOLATILITY ETF8,800.0000 542,784.00U.S. TREASURY 06-20-19 06-21-19 US TREASURY NOTES 125,000 123,037.111.625% Due 05-15-26767,128.11DEPOSITS AND EXPENSESMANAGEMENT FEES06-30-19 06-30-19 MANAGEMENT FEES 4,010.924,010.92DividendDOMESTIC LARGE CAP EQUITY FUNDS/ETF06-21-19 07-31-19 SPDR S&P 500 ETF 20,544.0306-27-19 06-27-19 FLEXSHARES QUAL DIV ETF7,438.4727,982.50DOMESTIC MID CAP EQUITY FUNDS/ETF06-21-19 06-21-19 ISHARES CORE S&P MIDCAP 400 ETF12,722.48DOMESTIC SMALL CAP EQUITY FUNDS/ETF06-21-19 06-21-19 ISHARES S&P SMALLCAP 600 INDEX ETF4,437.46Page 174
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountEMERGING MARKET FUNDS/ETF06-21-19 06-21-19 ISHARES ETF CORE MSCI EMERGING MKTS13,680.52INTERNATIONAL EQUITY FUNDS/ETF06-21-19 06-21-19 ISHARES MSCI EAFE INDEX FUND29,345.8206-21-19 06-21-19 ISHARES ETF CORE MSCI EAFE27,265.3756,611.19REAL ESTATE & INFRASTRUCTURE06-27-19 06-27-19 FLEXSHAR STX GLOBAL BROAD INF ETF6,677.9006-28-19 06-28-19 JPMORGAN BETABUILDERS MSCI US REIT ETF3,025.309,703.20125,137.35InterestCASH AND EQUIVALENTS06-03-19 06-03-19 WF ADV GOVT MM FD-INSTL #17513,982.59CORPORATE BONDS06-12-19 06-12-19 REYNOLDS AMERICAN INC3,337.504.450% Due 06-12-2506-17-19 06-17-19 AFLAC INC 1,812.503.625% Due 06-15-235,150.00Page 175
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountFNMA & FHLMC06-17-19 06-17-19 FHLMC POOL G14203 66.344.000% Due 04-01-2606-17-19 06-17-19 FG POOL G16255 311.172.500% Due 07-01-3206-17-19 06-17-19 FG POOL G08722 988.983.500% Due 09-01-4606-17-19 06-17-19 FG POOL C91270 565.334.500% Due 10-01-2906-17-19 06-17-19 FG POOL J30401 373.793.000% Due 01-01-3006-17-19 06-17-19 FG POOL V80057 633.453.000% Due 05-01-4306-25-19 06-25-19 FN POOL AJ1405 1,362.294.000% Due 09-01-4106-25-19 06-25-19 FN POOL BD2453 284.643.000% Due 01-01-4706-25-19 06-25-19 FNCL POOL 995373 555.264.500% Due 02-01-3906-25-19 06-25-19 FN POOL MA2930 811.914.000% Due 03-01-4706-25-19 06-25-19 FN POOL MA3638 333.064.000% Due 04-01-4906-26-19 06-26-19 FN POOL AS8810 1,845.063.500% Due 02-01-478,131.28U.S. TREASURY 06-30-19 07-01-19 US TREASURY NOTES 5,250.002.000% Due 12-31-2106-30-19 07-01-19 US TREASURY NOTES 3,187.502.125% Due 06-30-2106-30-19 07-01-19 US TREASURY NOTES 3,453.132.125% Due 06-30-22Page 176
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity Amount06-30-19 07-01-19 US TREASURY NOTES 2,062.502.750% Due 06-30-2513,953.1331,217.00PRINCIPAL PAYDOWNSFNMA & FHLMC06-15-19 06-17-19 FHLMC POOL G14203 407.63 407.634.000% Due 04-01-2606-15-19 06-17-19 FG POOL G16255 2,115.60 2,115.602.500% Due 07-01-3206-15-19 06-17-19 FG POOL G08722 5,043.98 5,043.983.500% Due 09-01-4606-15-19 06-17-19 FG POOL C91270 2,080.54 2,080.544.500% Due 10-01-2906-15-19 06-17-19 FG POOL J30401 3,714.48 3,714.483.000% Due 01-01-3006-15-19 06-17-19 FG POOL V80057 3,203.80 3,203.803.000% Due 05-01-4306-25-19 06-25-19 FN POOL AJ1405 3,030.39 3,030.394.000% Due 09-01-4106-25-19 06-25-19 FN POOL BD2453 1,082.46 1,082.463.000% Due 01-01-4706-25-19 06-25-19 FNCL POOL 995373 2,786.12 2,786.124.500% Due 02-01-3906-25-19 06-25-19 FN POOL MA2930 4,534.07 4,534.074.000% Due 03-01-4706-25-19 06-25-19 FN POOL MA3638 1,143.55 1,143.554.000% Due 04-01-4906-25-19 06-26-19 FN POOL AS8810 9,315.45 9,315.453.500% Due 02-01-4738,458.0738,458.07Page 177
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountPurchased Accrued InterestCORPORATE BONDS06-21-19 06-25-19 ABBVIE INC 394.722.900% Due 11-06-22U.S. TREASURY 06-20-19 06-21-19 US TREASURY NOTES 204.231.625% Due 05-15-26598.95SALES, MATURITIES, AND CALLSDOMESTIC LARGE CAP EQUITY FUNDS/ETF06-18-19 06-20-19 SPDR S&P 500 ETF 2,125.0000 621,243.00621,243.00WithdrawCASH AND EQUIVALENTS06-21-19 06-21-19 WF ADV GOVT MM FD-INSTL #1751899.78899.78Page 178
Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 06-01-19 Through 06-30-19Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss06-15-19 407.63 FHLMC POOL G14203 426.23 407.63 -18.604.000% Due 04-01-2606-15-19 2,115.60 FG POOL G16255 2,109.32 2,115.60 6.282.500% Due 07-01-3206-15-19 5,043.98 FG POOL G08722 5,149.19 5,043.98 -105.213.500% Due 09-01-4606-15-19 2,080.54 FG POOL C91270 2,198.55 2,080.54 -118.014.500% Due 10-01-2906-15-19 3,714.48 FG POOL J30401 3,762.65 3,714.48 -48.173.000% Due 01-01-3006-15-19 3,203.80 FG POOL V80057 3,211.31 3,203.80 -7.513.000% Due 05-01-4306-18-19 2,125.0000 SPDR S&P 500 ETF 302,769.98 621,243.00 318,473.0206-25-19 3,030.39 FN POOL AJ1405 3,166.28 3,030.39 -135.894.000% Due 09-01-4106-25-19 1,082.46 FN POOL BD2453 1,081.28 1,082.46 1.183.000% Due 01-01-4706-25-19 2,786.12 FNCL POOL 995373 2,973.31 2,786.12 -187.194.500% Due 02-01-3906-25-19 4,534.07 FN POOL MA2930 4,695.60 4,534.07 -161.534.000% Due 03-01-4706-25-19 1,143.55 FN POOL MA3638 1,178.93 1,143.55 -35.384.000% Due 04-01-4906-25-19 9,315.45 FN POOL AS8810 9,505.40 9,315.45 -189.953.500% Due 02-01-47TOTAL GAINS 318,480.49TOTAL LOSSES -1,007.44342,228.02 659,701.07 317,473.05Page 179
Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security AmountCASH RECEIVABLE06-01-19 Beginning Balance 0.0006-30-19 07-01-19 dp Interest US TREASURY NOTES 5,250.002.000% Due 12-31-2106-30-19 07-01-19 dp Interest US TREASURY NOTES 3,187.502.125% Due 06-30-2106-30-19 07-01-19 dp Interest US TREASURY NOTES 3,453.132.125% Due 06-30-2206-30-19 07-01-19 dp Interest US TREASURY NOTES 2,062.502.750% Due 06-30-2506-30-19 Ending Balance 13,953.13WF ADV GOVT MM FD-INSTL #175106-01-19 Beginning Balance 1,415,518.6206-03-19 06-03-19 dp Interest WF ADV GOVT MM FD-INSTL #17513,982.5906-12-19 06-12-19 dp Interest REYNOLDS AMERICAN INC 3,337.504.450% Due 06-12-2506-15-19 06-17-19 dp Paydown FHLMC POOL G14203 407.634.000% Due 04-01-2606-15-19 06-17-19 dp Paydown FG POOL G16255 2,115.602.500% Due 07-01-3206-15-19 06-17-19 dp Paydown FG POOL G08722 5,043.983.500% Due 09-01-4606-15-19 06-17-19 dp Paydown FG POOL C91270 2,080.544.500% Due 10-01-2906-15-19 06-17-19 dp Paydown FG POOL J30401 3,714.483.000% Due 01-01-3006-15-19 06-17-19 dp Paydown FG POOL V80057 3,203.803.000% Due 05-01-43Page 180
Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-17-19 06-17-19 dp Interest AFLAC INC 1,812.503.625% Due 06-15-2306-17-19 06-17-19 dp Interest FHLMC POOL G14203 66.344.000% Due 04-01-2606-17-19 06-17-19 dp Interest FG POOL G16255 311.172.500% Due 07-01-3206-17-19 06-17-19 dp Interest FG POOL G08722 988.983.500% Due 09-01-4606-17-19 06-17-19 dp Interest FG POOL C91270 565.334.500% Due 10-01-2906-17-19 06-17-19 dp Interest FG POOL J30401 373.793.000% Due 01-01-3006-17-19 06-17-19 dp Interest FG POOL V80057 633.453.000% Due 05-01-4306-18-19 06-20-19 wd Purchase ISHARES MSCI USA MIN VOLATILITY ETF-542,784.0006-18-19 06-20-19 dp Sale SPDR S&P 500 ETF 621,243.0006-20-19 06-21-19 wd Purchase US TREASURY NOTES -123,037.111.625% Due 05-15-2606-20-19 06-21-19 wd Accrued Interest US TREASURY NOTES -204.231.625% Due 05-15-2606-21-19 06-25-19 wd Purchase ABBVIE INC -101,307.002.900% Due 11-06-2206-21-19 06-25-19 wd Accrued Interest ABBVIE INC -394.722.900% Due 11-06-2206-21-19 06-21-19 dp Dividend ISHARES ETF CORE MSCI EMERGING MKTS13,680.5206-21-19 06-21-19 dp Dividend ISHARES MSCI EAFE INDEX FUND29,345.8206-21-19 06-21-19 dp Dividend ISHARES ETF CORE MSCI EAFE 27,265.37Page 181
Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-21-19 06-21-19 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF12,722.4806-21-19 06-21-19 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF4,437.4606-21-19 06-21-19 wd Withdrawal from Portfolio -899.7806-25-19 06-25-19 dp Interest FN POOL AJ1405 1,362.294.000% Due 09-01-4106-25-19 06-25-19 dp Paydown FN POOL AJ1405 3,030.394.000% Due 09-01-4106-25-19 06-25-19 dp Paydown FN POOL BD2453 1,082.463.000% Due 01-01-4706-25-19 06-25-19 dp Interest FN POOL BD2453 284.643.000% Due 01-01-4706-25-19 06-25-19 dp Interest FNCL POOL 995373 555.264.500% Due 02-01-3906-25-19 06-25-19 dp Paydown FNCL POOL 995373 2,786.124.500% Due 02-01-3906-25-19 06-25-19 dp Paydown FN POOL MA2930 4,534.074.000% Due 03-01-4706-25-19 06-25-19 dp Interest FN POOL MA2930 811.914.000% Due 03-01-4706-25-19 06-25-19 dp Interest FN POOL MA3638 333.064.000% Due 04-01-4906-25-19 06-25-19 dp Paydown FN POOL MA3638 1,143.554.000% Due 04-01-4906-25-19 06-26-19 dp Paydown FN POOL AS8810 9,315.453.500% Due 02-01-4706-26-19 06-26-19 dp Interest FN POOL AS8810 1,845.063.500% Due 02-01-47Page 182
Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-27-19 06-27-19 dp Dividend FLEXSHAR STX GLOBAL BROAD INF ETF6,677.9006-27-19 06-27-19 dp Dividend FLEXSHARES QUAL DIV ETF 7,438.4706-28-19 06-28-19 dp Dividend JPMORGAN BETABUILDERS MSCI US REIT ETF3,025.3006-30-19 Ending Balance 1,428,450.04DIVIDEND ACCRUAL06-01-19 Beginning Balance 0.0006-21-19 07-31-19 dp Dividend SPDR S&P 500 ETF 20,544.0306-30-19 Ending Balance 20,544.03Page 183
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISAL sort by CUSIPCITY OF KENAI PERMANENT FUNDSJune 30, 2019Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeFNMA & FHLMC3128MC3L7 256,397.0000 19,493.2700 FHLMC POOL G14203 104.562501 20,382.65 104.08700 20,289.96 64.98 779.733128MFE46 190,000.0000 147,245.8900 FG POOL G16255 99.703123 146,808.75 100.80600 148,432.69 306.76 3,681.153128MJYU8 477,000.0000 334,036.1700 FG POOL G08722 102.085937 341,003.96 103.23200344,832.22 974.27 11,691.273128P7MT7 2,000,000.0000 148,675.3800 FG POOL C91270 105.671877 157,108.06 106.52000158,369.01 557.53 6,690.3931307LNS3 301,000.0000 145,803.3900 FG POOL J30401 101.296875 147,694.28 102.55300149,525.75 364.51 4,374.103132L5B28 450,000.0000 250,175.3500 FG POOL V80057 100.234376 250,761.70 102.27800255,874.34 625.44 7,505.263138ASR38 1,500,000.0000 405,657.1400 FN POOL AJ1405 104.484375 423,848.33 105.46500 427,826.30 1,352.19 16,226.293138EKRA5 374,582.0000 183,329.9200 FN POOL AT2324 100.203126 183,702.31 102.03200187,055.18 458.32 5,499.903138WJYG7 783,285.0000 623,274.8900 FN POOL AS8810102.039062 635,983.85 102.95200 641,673.96 1,817.89 21,814.623138WPSN5 335,507.0000 179,249.1000 FN POOL AL3180 100.203125 179,613.20 102.03200182,891.44 448.12 5,377.473140F9WP6 139,000.0000 112,773.7300 FN POOL BD2453 99.890625 112,650.38 101.97100 114,996.50 281.93 3,383.2131416BXA1 4,000,000.0000 145,284.4800 FNCL POOL 995373 106.718781 155,045.83 107.28500155,868.45 544.82 6,537.8031418CHG2 148,000.0000 239,038.7100 FN POOL MA2930103.562500 247,554.46 104.46400 249,709.40 796.80 9,561.5531418DBG6 101,000.0000 98,775.4600 FN POOL MA3638103.093756 101,831.33 103.41800 102,151.61 329.25 3,951.02Accrued I8,922.813,103,989.09 3,148,419.64 8,922.81 107,073.76CORPORATE BONDS001055AL6 100,000.0000 100,000.0000 AFLAC INC 104.975000 104,975.00 104.98200 104,982.00 161.11 3,625.0000206RDG4 100,000.0000 100,000.0000 AT&T INC 119.320000 119,320.00 124.27100 124,271.00 2,125.00 6,375.0000287YAL3 100,000.0000 100,000.0000 ABBVIE INC101.307000 101,307.00 100.66700 100,667.00 443.06 2,900.0005348EAR0 100,000.0000 100,000.0000 AVALONBAY COMMUNITIES 100.816000 100,816.00 101.41900101,419.00 839.17 2,850.0006051GGG8 100,000.0000 100,000.0000 BANK OF AMERICA CORP 106.308000 106,308.00 113.57500 113,575.00 1,987.01 4,443.0006406FAD5 200,000.0000 200,000.0000 BANK OF NEW YORK MELLON 97.833000 195,666.00 99.47900198,958.00 1,650.00 4,400.00172967KG5 150,000.0000 150,000.0000 CITIGROUP INC101.647000 152,470.50 105.27000 157,905.00 2,605.42 5,550.0029250NAR6 100,000.0000 100,000.0000 ENBRIDGE INC 101.135000 101,135.00 103.28200 103,282.00 1,706.11 3,700.0038141GRD8 100,000.0000 100,000.0000 GOLDMAN SACHS GROUP INC 101.985000 101,985.00 103.74500103,745.00 1,601.04 3,625.00437076BD3 100,000.0000 100,000.0000 HOME DEPOT INC115.627000 115,627.00 121.23100 121,231.00 1,841.67 4,875.0046625HJT8 200,000.0000 200,000.0000 JPMORGAN CHASE & CO 105.181000 210,362.00 106.19400 212,388.00 3,229.17 7,750.0049446RAU3 150,000.0000 150,000.0000 KIMCO REALTY CORP 94.918000 142,377.00 101.83000 152,745.00 2,062.50 4,950.0061746BDQ6 100,000.0000 100,000.0000 MORGAN STANLEY IND FINANCIAL S103.711000 103,711.00 105.98600 105,986.00 667.36 3,875.00761713BG0 150,000.0000 150,000.0000 REYNOLDS AMERICAN INC 108.467000 162,700.50 106.04000159,060.00 352.29 6,675.0094974BGA2 100,000.0000 100,000.0000 WELLS FARGO & COMPANY 99.882000 99,882.00 103.47600 103,476.00 1,026.67 3,300.00Accrued I22,297.561,918,642.00 1,985,987.56 22,297.56 68,893.00DOMESTIC LARGE CAP EQUITY FUNDS/ETF33939L860 18,975.0000 18,975.0000 FLEXSHARES QUAL DIV ETF 40.785097 773,897.21 44.86000 851,218.50 0.0046429B697 8,800.0000 8,800.0000 ISHARES MSCI USA MIN VOLATILIT61.680000 542,784.00 61.73000 543,224.00 0.0078462F103 14,350.0000 14,350.0000 SPDR S&P 500 ETF142.479989 2,044,587.84 293.00000 4,204,550.00 0.003,361,269.05 5,598,992.50 0.00DOMESTIC MID CAP EQUITY FUNDS/ETF464287507 14,510.0000 14,510.0000 ISHARES CORE S&P MIDCAP 400 ET72.979855 1,058,937.69 194.260002,818,712.60 0.00Page 184
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISAL sort by CUSIPCITY OF KENAI PERMANENT FUNDSJune 30, 2019Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeDOMESTIC SMALL CAP EQUITY FUNDS/ETF464287804 17,700.0000 17,700.0000 ISHARES S&P SMALLCAP 600 INDEX35.355984 625,800.91 78.28000 1,385,556.00 0.00INTERNATIONAL EQUITY FUNDS/ETF464287465 21,325.0000 21,325.0000 ISHARES MSCI EAFE INDEX FUND61.679900 1,315,323.87 65.73000 1,401,692.25 0.0046432F842 22,785.0000 22,785.0000 ISHARES ETF CORE MSCI EAFE 51.544877 1,174,450.01 61.40000 1,398,999.00 0.002,489,773.88 2,800,691.25 0.00EMERGING MARKET FUNDS/ETF46434G103 27,840.0000 27,840.0000 ISHARES ETF CORE MSCI EMERGING42.078450 1,171,464.05 51.44000 1,432,089.60 0.00REAL ESTATE & INFRASTRUCTURE33939L795 16,625.0000 16,625.0000 FLEXSHAR STX GLOBAL BROAD INF 49.490000 822,771.25 51.00000 847,875.00 0.0046641Q738 6,500.0000 6,500.0000 JPMORGAN BETABUILDERS MSCI US 76.554600 497,604.90 84.02000 546,130.00 0.001,320,376.15 1,394,005.00 0.00U.S. TREASURY 912810QD3 170,000.0000 170,000.0000 US TREASURY NOTES 128.876376 219,089.84 132.96100226,033.70 949.90 7,437.50912810SH2 600,000.0000 600,000.0000 US TREASURY NOTES 102.981445 617,888.67 107.28100 643,686.00 2,203.12 17,250.009128283F5 190,000.0000 190,000.0000 US TREASURY NOTES 95.289063 181,049.22 102.37500 194,512.50 545.99 4,275.009128283W8 220,000.0000 220,000.0000 US TREASURY NOTES 98.738636 217,225.00 106.32800 233,921.60 2,272.93 6,050.009128284A5 350,000.0000 350,000.0000 US TREASURY NOTES 99.718751 349,015.63 103.16000 361,060.00 3,070.82 9,187.509128285M8 300,000.0000 300,000.0000 US TREASURY NOTES 102.380210 307,140.63 109.68400 329,052.00 1,197.35 9,375.009128286B1 495,000.0000 495,000.0000 US TREASURY NOTES 100.690737 498,419.15 105.45300 521,992.35 4,881.63 12,993.759128286F2 400,000.0000 400,000.0000 US TREASURY NOTES 99.753551 399,014.20 104.01200 416,048.00 3,342.39 10,000.00912828D56 250,000.0000 250,000.0000 US TREASURY NOTES 100.226562 250,566.40 102.93000 257,325.00 2,230.66 5,937.50912828R36 330,000.0000 330,000.0000 US TREASURY NOTES 95.634709 315,594.54 98.42200324,792.60 684.88 5,362.50912828U24 250,000.0000 250,000.0000 US TREASURY NOTES 95.257812 238,144.53 100.76200 251,905.00 638.59 5,000.00912828U81 525,000.0000 525,000.0000 US TREASURY NOTES 101.310269 531,878.91 100.67200 528,528.00 28.53 10,500.00912828WR7 300,000.0000 300,000.0000 US TREASURY NOTES 99.335939 298,007.82 100.71900 302,157.00 17.32 6,375.00912828XG0 325,000.0000 325,000.0000 US TREASURY NOTES 97.121094 315,643.56 101.18000 328,835.00 18.77 6,906.25912828XZ8 150,000.0000 150,000.0000 US TREASURY NOTES 99.707033 149,560.55 105.23800 157,857.00 11.21 4,125.00Accrued I22,094.104,888,238.65 5,099,799.85 22,094.10 120,775.00AGENCIES3130ACNX8 250,000.0000 250,000.0000 FEDERAL HOME LOAN BANK - STEP 99.850000 249,625.00 99.74900 249,372.50 638.89 5,000.003130ADUE0 200,000.0000 200,000.0000 FHLB 99.790000199,580.00 100.00500 200,010.00 2,054.17 7,250.003133EHGK3 300,000.0000 300,000.0000 FEDERAL FARM CREDIT BANK 100.000000 300,000.00 100.00200 300,006.00 1,591.25 8,550.003134GBH21 250,000.0000 250,000.0000 FHLMC 99.730000 249,325.00 99.60900 249,022.50 1,086.11 4,250.00Accrued I5,370.42998,530.00 1,003,781.42 5,370.42 25,050.00CASH AND EQUIVALENTSCASH RECEIVABLE 13,953.13 13,953.13 0.00DIVIDEND ACCRUAL 20,544.03 20,544.03 0.00Page 185
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISAL sort by CUSIPCITY OF KENAI PERMANENT FUNDSJune 30, 2019Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeVP4560000 WF ADV GOVT MM FD-INSTL #1751 1,428,450.04 1,428,450.04 0.001,462,947.20 1,462,947.20 0.00TOTAL PORTFOLIO22,399,968.69 28,130,982.63 58,684.90 321,791.76Page 186
Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCE0.000.200.400.600.801.001.201.401.60CurrentMonthCurrentQuarterYear toDateLatest 1YearInceptionto DatePortfolio0.77 1.20 1.50 N/A 1.50Benchmark0.20 0.61 1.01 N/A 1.01Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:FTSE 90 day t-billFixed Income Portfolio StatisticsAverage Quality: AAA Yield to Maturity: 1.69% Average Maturity: 0.07 YrsACCOUNT ACTIVITYPortfolio Value on 05-31-19 5,371,708Contributions 0Withdrawals 0Change in Market Value 21,810Interest 8,831Dividends 10,855Portfolio Value on 06-30-19 5,413,204PORTFOLIO COMPOSITIONCash7%US TIPS10%US Bonds26%Int'l Bonds4%Int'l Eq10%Emerging Eq5%Sm Cap Eq3%Md Cap Eq7%Lg Cap Eq23%Real Estate2%Commodities3%MANAGEMENT TEAMClient Relationship Manager: Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager: Brandy Niclai, CFA®Contact Phone Number: 907/272-7575KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDAccount Statement - Period Ending June 30, 2019Page 187
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDJune 30, 2019YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityDOMESTIC FIXED INCOME FUNDS/ETF299,790 GOLDMAN SACHS PRIME OBLIGATIONS FUND 1.00 300,000 1.00 300,000 5.54 NA10,950 VANGUARD SHORT-TERM TIPS ETF 49.27 539,554 49.32 540,054 9.98 NA16,275 VANGUARD TOTAL BOND MARKET ETF 82.71 1,346,109 83.07 1,351,964 24.98 NA2,185,663 2,192,018 40.49INTERNATIONAL FIXED INCOME FUNDS/ETF3,775 VANGUARD TOTAL INTL BOND ETF 57.08 215,468 57.30 216,307 4.00 NADOMESTIC LARGE CAP EQUITY FUNDS/ETF3,300 FLEXSHARES QUAL DIV ETF44.97 148,400 44.86 148,038 2.73 NA2,400 ISHARES MSCI USA MIN VOLATILITY ETF 62.12 149,100 61.73 148,152 2.74 NA3,025 SPDR S&P 500 ETF 290.80 879,664 293.00 886,325 16.37 NA1,177,164 1,182,515 21.85DOMESTIC MID CAP EQUITY FUNDS/ETF1,980 ISHARES CORE S&P MIDCAP 400 ETF 190.92 378,023 194.26 384,635 7.11 NADOMESTIC SMALL CAP EQUITY FUNDS/ETF2,125 ISHARES S&P SMALLCAP 600 INDEX ETF 76.25 162,037 78.28 166,345 3.07 NAINTERNATIONAL EQUITY FUNDS/ETF4,405 ISHARES ETF CORE MSCI EAFE 61.21 269,644 61.40 270,467 5.00 NA4,115 ISHARES MSCI EAFE INDEX FUND 65.47 269,414 65.73 270,479 5.00 NA539,058 540,946 9.99EMERGING MARKET FUNDS/ETF5,260 ISHARES ETF CORE MSCI EMERGING MKTS 50.73 266,853 51.44 270,574 5.00 NAREAL ESTATE & INFRASTRUCTURE3,155 FLEXSHAR STX GLOBAL BROAD INF ETF 51.15 161,365 51.00 160,905 2.97 NA1,250 JPMORGAN BETABUILDERS MSCI US REIT ETF 86.22 107,769 84.02 105,025 1.94 NA269,134 265,930 4.91COMMODITIES5,575 ETRACS BLOOMBERG CMCI ETN 14.36 80,045 14.46 80,614 1.49 NA4,925 INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT 16.09 79,259 16.37 80,622 1.49 NA159,305 161,237 2.98CASH AND EQUIVALENTSDIVIDEND ACCRUAL 2,899 2,899 0.05WFB PUBLIC INST BANK DEPOSIT ACCOUNT 29,798 29,798 0.5532,697 32,697 0.60TOTAL PORTFOLIO 5,385,401 5,413,204 100 0 0Page 188
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountPURCHASESCOMMODITIES06-12-19 06-14-19 ETRACS BLOOMBERG CMCI ETN1,925.0000 27,277.2506-12-19 06-14-19 INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT1,700.0000 26,860.0006-19-19 06-21-19 ETRACS BLOOMBERG CMCI ETN1,850.0000 26,416.1506-19-19 06-21-19 INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT1,625.0000 25,967.5006-25-19 06-27-19 ETRACS BLOOMBERG CMCI ETN1,800.0000 26,352.0006-25-19 06-27-19 INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT1,600.0000 26,432.00159,304.90DOMESTIC FIXED INCOME FUNDS/ETF06-12-19 06-14-19 VANGUARD SHORT-TERM TIPS ETF3,625.0000 178,640.0006-12-19 06-14-19 VANGUARD TOTAL BOND MARKET ETF5,450.0000 448,180.7506-19-19 06-21-19 VANGUARD TOTAL BOND MARKET ETF5,400.0000 447,498.0006-19-19 06-21-19 VANGUARD SHORT-TERM TIPS ETF3,675.0000 180,920.2506-25-19 06-27-19 GOLDMAN SACHS PRIME OBLIGATIONS FUND299,790.1469 300,000.0006-25-19 06-27-19 VANGUARD SHORT-TERM TIPS ETF3,650.0000 179,993.5506-25-19 06-27-19 VANGUARD TOTAL BOND MARKET ETF5,425.0000 450,430.162,185,662.71Page 189
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountDOMESTIC LARGE CAP EQUITY FUNDS/ETF06-12-19 06-14-19 SPDR S&P 500 ETF 1,360.0000 392,156.0006-19-19 06-21-19 ISHARES MSCI USA MIN VOLATILITY ETF1,600.0000 99,264.0006-19-19 06-21-19 FLEXSHARES QUAL DIV ETF2,200.0000 99,198.0006-19-19 06-21-19 SPDR S&P 500 ETF 665.0000 194,978.0006-25-19 06-27-19 FLEXSHARES QUAL DIV ETF1,100.0000 49,202.4506-25-19 06-27-19 ISHARES MSCI USA MIN VOLATILITY ETF800.0000 49,836.0006-25-19 06-27-19 SPDR S&P 500 ETF 1,000.0000 292,530.001,177,164.45DOMESTIC MID CAP EQUITY FUNDS/ETF06-12-19 06-14-19 ISHARES CORE S&P MIDCAP 400 ETF655.0000 124,375.9206-19-19 06-21-19 ISHARES CORE S&P MIDCAP 400 ETF650.0000 124,954.5106-25-19 06-27-19 ISHARES CORE S&P MIDCAP 400 ETF675.0000 128,692.53378,022.96DOMESTIC SMALL CAP EQUITY FUNDS/ETF06-12-19 06-14-19 ISHARES S&P SMALLCAP 600 INDEX ETF700.0000 52,983.0006-19-19 06-21-19 ISHARES S&P SMALLCAP 600 INDEX ETF700.0000 53,900.0006-25-19 06-27-19 ISHARES S&P SMALLCAP 600 INDEX ETF725.0000 55,154.01162,037.01Page 190
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountEMERGING MARKET FUNDS/ETF06-12-19 06-14-19 ISHARES ETF CORE MSCI EMERGING MKTS1,785.0000 89,784.0706-19-19 06-21-19 ISHARES ETF CORE MSCI EMERGING MKTS1,775.0000 90,198.5806-25-19 06-27-19 ISHARES ETF CORE MSCI EMERGING MKTS1,700.0000 86,870.00266,852.65INTERNATIONAL EQUITY FUNDS/ETF06-12-19 06-14-19 ISHARES ETF CORE MSCI EAFE1,455.0000 89,569.8006-12-19 06-14-19 ISHARES MSCI EAFE INDEX FUND1,365.0000 89,851.1306-19-19 06-21-19 ISHARES ETF CORE MSCI EAFE1,500.0000 91,334.5506-19-19 06-21-19 ISHARES MSCI EAFE INDEX FUND1,400.0000 91,164.7806-25-19 06-27-19 ISHARES ETF CORE MSCI EAFE1,450.0000 88,740.0006-25-19 06-27-19 ISHARES MSCI EAFE INDEX FUND1,350.0000 88,398.00539,058.26INTERNATIONAL FIXED INCOME FUNDS/ETF06-12-19 06-14-19 VANGUARD TOTAL INTL BOND ETF1,575.0000 89,442.6806-19-19 06-21-19 VANGUARD TOTAL INTL BOND ETF925.0000 52,910.0006-25-19 06-27-19 VANGUARD TOTAL INTL BOND ETF1,275.0000 73,114.88215,467.56Page 191
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountREAL ESTATE & INFRASTRUCTURE06-12-19 06-14-19 FLEXSHAR STX GLOBAL BROAD INF ETF1,055.0000 53,666.0606-12-19 06-14-19 JPMORGAN BETABUILDERS MSCI US REIT ETF420.0000 35,923.6106-19-19 06-21-19 FLEXSHAR STX GLOBAL BROAD INF ETF1,050.0000 54,022.5006-19-19 06-21-19 JPMORGAN BETABUILDERS MSCI US REIT ETF405.0000 35,380.8006-25-19 06-27-19 FLEXSHAR STX GLOBAL BROAD INF ETF1,050.0000 53,676.0006-25-19 06-27-19 JPMORGAN BETABUILDERS MSCI US REIT ETF425.0000 36,465.00269,133.975,352,704.47DEPOSITS AND EXPENSESMANAGEMENT FEES06-30-19 06-30-19 MANAGEMENT FEES 676.65676.65DividendDOMESTIC FIXED INCOME FUNDS/ETF06-20-19 06-20-19 VANGUARD SHORT-TERM TIPS ETF617.70DOMESTIC LARGE CAP EQUITY FUNDS/ETF06-21-19 07-31-19 SPDR S&P 500 ETF 2,899.0706-27-19 06-27-19 FLEXSHARES QUAL DIV ETF862.433,761.50Page 192
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountDOMESTIC MID CAP EQUITY FUNDS/ETF06-21-19 06-21-19 ISHARES CORE S&P MIDCAP 400 ETF574.31DOMESTIC SMALL CAP EQUITY FUNDS/ETF06-21-19 06-21-19 ISHARES S&P SMALLCAP 600 INDEX ETF175.49EMERGING MARKET FUNDS/ETF06-21-19 06-21-19 ISHARES ETF CORE MSCI EMERGING MKTS877.15INTERNATIONAL EQUITY FUNDS/ETF06-21-19 06-21-19 ISHARES MSCI EAFE INDEX FUND1,878.4106-21-19 06-21-19 ISHARES ETF CORE MSCI EAFE1,741.113,619.52REAL ESTATE & INFRASTRUCTURE06-27-19 06-27-19 FLEXSHAR STX GLOBAL BROAD INF ETF845.5306-28-19 06-28-19 JPMORGAN BETABUILDERS MSCI US REIT ETF383.981,229.5110,855.18InterestCASH AND EQUIVALENTS06-03-19 06-03-19 WFB PUBLIC INST BANK DEPOSIT ACCOUNT205.10Page 193
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY KENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TradeDate Date Security Quantity AmountTREASURY BILLS06-20-19 06-20-19 US TREASURY BILLS 8,033.230.000% Due 06-20-198,238.33SALES, MATURITIES, AND CALLSTREASURY BILLS06-06-19 06-07-19 US TREASURY BILLS 1,200,000 1,194,307.600.000% Due 08-22-1906-20-19 06-20-19 US TREASURY BILLS 1,050,000 1,041,966.770.000% Due 06-20-192,236,274.37U.S. TREASURY 06-06-19 06-07-19 US TREASURY NOTES 2,150,000 2,148,320.311.250% Due 06-30-1906-06-19 06-07-19 US TREASURY NOTES 900,000 897,082.031.000% Due 08-31-193,045,402.345,281,676.71Sold Accrued InterestU.S. TREASURY 06-06-19 06-07-19 US TREASURY NOTES 11,729.971.250% Due 06-30-1906-06-19 06-07-19 US TREASURY NOTES 2,421.201.000% Due 08-31-1914,151.1714,151.17WithdrawCASH AND EQUIVALENTS06-14-19 06-14-19 WFB PUBLIC INST BANK DEPOSIT ACCOUNT1,698,710.271,698,710.27Page 194
Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 Through 06-30-19Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss06-06-19 2,150,000 US TREASURY NOTES 2,144,085.95 2,148,320.31 4,234.361.250% Due 06-30-1906-06-19 900,000 US TREASURY NOTES 895,078.13 897,082.03 2,003.901.000% Due 08-31-1906-06-19 1,200,000 US TREASURY BILLS 1,185,493.00 1,194,307.60 8,814.600.000% Due 08-22-1906-20-19 1,050,000 US TREASURY BILLS 1,041,966.77 1,041,966.77 0.000.000% Due 06-20-19TOTAL GAINS 15,052.86TOTAL LOSSES 0.005,266,623.85 5,281,676.71 15,052.86Page 195
Alaska Permanent Capital Management Co.CASH LEDGERKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security AmountWFB PUBLIC INST BANK DEPOSIT ACCOUNT06-01-19 Beginning Balance 70,479.8906-03-19 06-03-19 dp Interest WFB PUBLIC INST BANK DEPOSIT ACCOUNT205.1006-06-19 06-07-19 dp Sale US TREASURY NOTES 2,148,320.311.250% Due 06-30-1906-06-19 06-07-19 dp Accrued Interest US TREASURY NOTES 11,729.971.250% Due 06-30-1906-06-19 06-07-19 dp Sale US TREASURY NOTES 897,082.031.000% Due 08-31-1906-06-19 06-07-19 dp Accrued Interest US TREASURY NOTES 2,421.201.000% Due 08-31-1906-06-19 06-07-19 dp Sale US TREASURY BILLS 1,194,307.600.000% Due 08-22-1906-12-19 06-14-19 wd Purchase ISHARES CORE S&P MIDCAP 400 ETF-124,375.9206-12-19 06-14-19 wd Purchase SPDR S&P 500 ETF -392,156.0006-12-19 06-14-19 wd Purchase VANGUARD SHORT-TERM TIPS ETF-178,640.0006-12-19 06-14-19 wd Purchase VANGUARD TOTAL BOND MARKET ETF-448,180.7506-12-19 06-14-19 wd Purchase VANGUARD TOTAL INTL BOND ETF-89,442.6806-12-19 06-14-19 wd Purchase ISHARES ETF CORE MSCI EMERGING MKTS-89,784.0706-12-19 06-14-19 wd Purchase ISHARES ETF CORE MSCI EAFE -89,569.8006-12-19 06-14-19 wd Purchase ISHARES MSCI EAFE INDEX FUND-89,851.1306-12-19 06-14-19 wd Purchase ETRACS BLOOMBERG CMCI ETN-27,277.25Page 196
Alaska Permanent Capital Management Co.CASH LEDGERKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-12-19 06-14-19 wd Purchase INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT-26,860.0006-12-19 06-14-19 wd Purchase FLEXSHAR STX GLOBAL BROAD INF ETF-53,666.0606-12-19 06-14-19 wd Purchase JPMORGAN BETABUILDERS MSCI US REIT ETF-35,923.6106-12-19 06-14-19 wd Purchase ISHARES S&P SMALLCAP 600 INDEX ETF-52,983.0006-14-19 06-14-19 wd Transfer to WFB PUBLIC INST BANK DEPOSIT ACCOUNT-1,698,710.2706-14-19 06-14-19 dp Transfer from WFB PUBLIC INST BANK DEPOSIT ACCOUNT1,698,710.2706-19-19 06-21-19 wd Purchase VANGUARD TOTAL BOND MARKET ETF-447,498.0006-19-19 06-21-19 wd Purchase ISHARES MSCI USA MIN VOLATILITY ETF-99,264.0006-19-19 06-21-19 wd Purchase ISHARES ETF CORE MSCI EAFE -91,334.5506-19-19 06-21-19 wd Purchase ISHARES MSCI EAFE INDEX FUND-91,164.7806-19-19 06-21-19 wd Purchase ISHARES CORE S&P MIDCAP 400 ETF-124,954.5106-19-19 06-21-19 wd Purchase FLEXSHARES QUAL DIV ETF -99,198.0006-19-19 06-21-19 wd Purchase SPDR S&P 500 ETF -194,978.0006-19-19 06-21-19 wd Purchase VANGUARD SHORT-TERM TIPS ETF-180,920.2506-19-19 06-21-19 wd Purchase VANGUARD TOTAL INTL BOND ETF-52,910.0006-19-19 06-21-19 wd Purchase ISHARES ETF CORE MSCI EMERGING MKTS-90,198.58Page 197
Alaska Permanent Capital Management Co.CASH LEDGERKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-19-19 06-21-19 wd Purchase ETRACS BLOOMBERG CMCI ETN-26,416.1506-19-19 06-21-19 wd Purchase INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT-25,967.5006-19-19 06-21-19 wd Purchase FLEXSHAR STX GLOBAL BROAD INF ETF-54,022.5006-19-19 06-21-19 wd Purchase JPMORGAN BETABUILDERS MSCI US REIT ETF-35,380.8006-19-19 06-21-19 wd Purchase ISHARES S&P SMALLCAP 600 INDEX ETF-53,900.0006-20-19 06-20-19 dp Dividend VANGUARD SHORT-TERM TIPS ETF617.7006-20-19 06-20-19 dp Interest US TREASURY BILLS 8,033.230.000% Due 06-20-1906-20-19 06-20-19 dp Sale US TREASURY BILLS 1,041,966.770.000% Due 06-20-1906-21-19 06-21-19 dp Dividend ISHARES ETF CORE MSCI EMERGING MKTS877.1506-21-19 06-21-19 dp Dividend ISHARES MSCI EAFE INDEX FUND1,878.4106-21-19 06-21-19 dp Dividend ISHARES ETF CORE MSCI EAFE 1,741.1106-21-19 06-21-19 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF574.3106-21-19 06-21-19 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF175.4906-25-19 06-27-19 wd Purchase GOLDMAN SACHS PRIME OBLIGATIONS FUND-300,000.0006-25-19 06-27-19 wd Purchase FLEXSHARES QUAL DIV ETF -49,202.4506-25-19 06-27-19 wd Purchase ISHARES S&P SMALLCAP 600 INDEX ETF-55,154.01Page 198
Alaska Permanent Capital Management Co.CASH LEDGERKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-25-19 06-27-19 wd Purchase ISHARES CORE S&P MIDCAP 400 ETF-128,692.5306-25-19 06-27-19 wd Purchase ISHARES MSCI USA MIN VOLATILITY ETF-49,836.0006-25-19 06-27-19 wd Purchase SPDR S&P 500 ETF -292,530.0006-25-19 06-27-19 wd Purchase VANGUARD SHORT-TERM TIPS ETF-179,993.5506-25-19 06-27-19 wd Purchase VANGUARD TOTAL BOND MARKET ETF-450,430.1606-25-19 06-27-19 wd Purchase VANGUARD TOTAL INTL BOND ETF-73,114.8806-25-19 06-27-19 wd Purchase ISHARES ETF CORE MSCI EMERGING MKTS-86,870.0006-25-19 06-27-19 wd Purchase ISHARES ETF CORE MSCI EAFE -88,740.0006-25-19 06-27-19 wd Purchase ISHARES MSCI EAFE INDEX FUND-88,398.0006-25-19 06-27-19 wd Purchase ETRACS BLOOMBERG CMCI ETN-26,352.0006-25-19 06-27-19 wd Purchase INVESCO OPTIMUM YIELD DIVERSIFIED COMMODIT-26,432.0006-25-19 06-27-19 wd Purchase FLEXSHAR STX GLOBAL BROAD INF ETF-53,676.0006-25-19 06-27-19 wd Purchase JPMORGAN BETABUILDERS MSCI US REIT ETF-36,465.0006-27-19 06-27-19 dp Dividend FLEXSHAR STX GLOBAL BROAD INF ETF845.5306-27-19 06-27-19 dp Dividend FLEXSHARES QUAL DIV ETF 862.43Page 199
Alaska Permanent Capital Management Co.CASH LEDGERKENAI PENINSULA BOROUGH - LAND TRUST INVESTMENT FUNDFrom 06-01-19 To 06-30-19Trade Settle TranDate Date Code Activity Security Amount06-28-19 06-28-19 dp Dividend JPMORGAN BETABUILDERS MSCI US REIT ETF383.9806-30-19 Ending Balance 29,797.74DIVIDEND ACCRUAL06-01-19 Beginning Balance 0.0006-21-19 07-31-19 dp Dividend SPDR S&P 500 ETF 2,899.0706-30-19 Ending Balance 2,899.07Page 200
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Tony Prior, Deputy Chief
DATE: August 1, 2019
SUBJECT: Fire Department Mid-Month Report - June
___________________________________________________________________________
In June the department responded to 117 calls for service as we were slightly above 113 in
2018 and 112 in 2017. The Peninsula began to see warmer temperatures and drier conditions
move our way and on June 6th the Swan Lake Fire began as a result of a lightning strike.
On June 21st State Forestry requested a type 6 engine from Kenai and we were able to provide
services to the Swan Lake Fire until July 21st.
On June 26th we were inspected by FAA at our Airport Stations and one recommendation was
corrected immediately as requested by the inspector. No other issues noted during the
inspection of the Fire Department. Also passing annual inspection on June 15th was our Aerial
ladder truck (Tower 1).
Casey Luecker attended training in Anchorage and became a State Certified EMT Instructor,
which will improve the training in-house personnel in the future.
We conducted testing to hire a new Firefighter June 8-10th and Cory Lehl started July 1st with
our department as she is a previous member of Kenai Fire Dept.
Page 201
MEMORANDUM
TO: Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Jo Joiner
DATE: July 7, 2019
SUBJECT: Library Mid-Month Report
______________________________________________________________________
June Circulation Figures
Adult Fiction 1,267 Internet Access 733
Adult Non-Fiction 1,164 iPad use 155
Young Adult Fiction 209 Games 8
Periodicals 91 Room Booking 147
Juvenile Fiction 457 Music 8
Juvenile Non-Fiction 432 DVDs 1,774
Easy Fiction 997 Audio books 57
Easy Non-Fiction 163 Miscellaneous 75
Interlibrary Loan 0 Computer Programs
Books – Consortium 293 Media – Consortium 164
Total Print 5,073 Total Non-Print 3,121
Total Circulation 6/19 9,194 Downloadable Audio 719
Total Circulation 6/18 9,064 Downloadable EBooks 608
% change +1.5% % change in downloadable 0%
In-House circulation 370
Page 202
Page 2 of 2
Note: June circulation of children’s and young adult materials was 34% higher than in
May.
Library Door Count……. 6,362
Income
Fines $ 282.20
Xerox 158.95
Lost/Damaged 22.80
Test Proctoring Fee 0
Printing 216.50
Other .00
Total income $ 680.45
In June 7 volunteers worked about 58 hours. There were 26 children’s programs with 632 total in
attendance, and 15 adult and family programs with 90 attendees. In June we ordered 5 interlibrary loan
items not available through the consortium and received 0 items, we returned 1 items and loaned 11
items to other libraries who are out of state or not in the consortium.
0
20000
40000
60000
80000
100000
120000
140000
160000
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019
Circulation
Library Cards Issued June
ILL 2
Kenai 32
Nikiski 8
Other Peninsula 4
Soldotna 4
Sterling 2
Total 52
Page 203
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Elizabeth Appleby, City Planner
DATE: July 29, 2019
SUBJECT: Planning and Zoning June 2019 Report
____________________________________________________________________________
Below are a summary of activity in June 2019 for the Planning and Zoning Department.
Planning and Zoning Commission Agenda Items and Resolutions
The Planning and Zoning Commission approved of two transfers of conditional use permits, one
application for a conditional use permit for surface extraction of natural resources, one application
for amendment to a conditional use permit, one applications for a home occupation permit, and
recommended the City Planner respond affirmatively to a plat time extension request:
• Resolution PZ2019-17 – Application for a Conditional Use Permit for Surface Extraction
of Natural Resources, submitted by Peninsula Commercial Ventures, 3201 Tamarak Ave.
Wasilla, Alaska 99654, for the property described as Tract C, Hollier Subdivision No. 2,
located at 695 Gravel Street, Kenai, Alaska 99611
• Resolution PZ2019-18 – Application for Transfer of Conditional Use Permit PZ06-84
(PZ01-11) for a hotel (short-term recreational rentals) from Blue Heron Land Company,
LLC, Transferor, to Blue Heron Enterprises, LLC, Transferee, located at 1230 Angler Dr.,
Kenai, Alaska 99611; further described as Lot 1, Block 2, Anglers Acres Subdivision
Addition No. 1
• Resolution PZ2019-19 – Application for Transfer of Conditional Use Permit PZ06-85
(PZ05-26) for a hotel, guide service, and boat parking from Blue Heron Land Company,
LLC, Transferor, to Blue Heron Enterprises, LLC, Transferee, located at 1105 Angler Dr.,
Kenai, Alaska 99611; further described as Lot 6, Anglers Acres Subdivision, Part 3
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Planning and Zoning Mid -Month Report
• Resolution PZ2019-23 – Application for Amendment to Conditional Use Permit PZ2018-
16 to remove the hours of operation restriction for the retail marijuana store, submitted by
Clint A. Pickarsky d/b/a Kenai River Cannabis, P.O. Box 1016, Soldotna, Alaska 99669,
for the property described as Lot 4, Block 1, Bush Lanes Subdivision, located at 14429
Kenai Spur Highway, Kenai, Alaska 99611
• Resolution PZ2019-22 – Application for a Home Occupation Permit to operate a daycare
of no more than eight (8) children under the age of twelve (12), including children related
to the caregiver, submitted by Glenn and Charlotte Yamada, 1806 4th Avenue, Kenai,
Alaska 99611, for property described as Lot 1-C, Block 1, Spruce Grove Subdivision
Murphy’s Replat
• Discussion/Recommendation – Authorizing the City Planner to draft and send a letter to
the Kenai Peninsula Borough supporting a request by the developer of Kee’s Tern
Subdivision for a one-year time extension to finalize the plat
Lands, Economic Development, and Outreach
The City Planner attend a board meeting for the Alaska Chapter of the American Planning
Association.
City staff conducted a site visit for a gravel pit.
The City Planner worked on the draft Land Management Plan and data supporting the creation of
the plan.
Code Enforcement
2019 Second Quarter Report:
Planning & Zoning has eight active code cases:
Junk Vehicles 3
Junk Vehicles and Debris & Junk 3
Debris & Junk 0
Garbage 0
Building Code Violation 2
Miscellaneous Code Violation 0
Cases transferred to Legal Department/Civil
Penalties being assessed.
0
TOTALS: 8
Code Enforcement Action during the months of April. – June, 2019:
Closed Cases 8
Opened Cases 7
Page 205
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: July 10, 2019
SUBJECT: Police & Communications Department Activity – June 2019
Police handled 767 calls for service in May. Dispatch received 278 9-1-1 calls. Officers made
72 arrests. Traffic enforcement resulted in 207 traffic contacts and 94 traffic citations. There
were 6 DUI arrests. Officers investigated 7 motor vehicle crashes. There was one collision
involving caribou. There was one collision involving drugs or alcohol.
June training included: The KPD officer on the SERT team completed two weeks of training.
One officer attended a week long training on tactical medical for first responders in Wasilla.
One dispatcher attended a week long training conference in Florida.
The police department hired an officer to fill one vacancy, and that individual will attend the
DPS academy starting at the end of July. The recruitment process continues to fill two
remaining vacancies.
4042
1456
4222
1559
3794
13690
2000
4000
6000
Total Police Service Calls 911 Calls Received
2019(Jan 1 - June 30)2018(Jan 1 - June 30)2017(Jan1 - Jun 30)
Page 206
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Scott Curtin, Public Works Director
DATE: July 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 59% complete to date. Inside the facility
Ravn’s future space has final finishes being installed. The restaurant exterior wall has now
been demo’d, the final exterior addition at the baggage areas is now underway. See photos
below. On the exterior the roofing is now 85% complete. The new arrival has been
constructed and is now drywalled. 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 217 RFIs to date. The project is proceeding well.
Ravn’s New Counter Arrival Entry West Side Demo
Page 207
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 90% complete, carpeting replacements are 80% complete, painting 100% 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. Update: The new Blowers and DO Probes arrived at the site late July and are
anticipated to be operational in approximately six weeks, about a month ahead of schedule.
Temp Blower Pad and Piping Temp Blowers moved out and running
• 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. Update: Due to
weather conditions Engineer rescheduled for August 2, 2019 high tide to complete inspection
of trestle from boat.q
Page 208
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.
Invitation to Bid is pending, working with Granting agency for approval to advertise.
• 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
$713,998.50. The project is currently working through grant acceptance and anticipating a
Page 209
Page 4 of 4
Mid-Month Report
Notice to Proceed within the next few weeks. Update: Notice to Proceed was issued on July
11, 2019 and the project is now underway.
• 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.
Page 210
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: July 8, 2019
SUBJECT: June 2019 Monthly Report
Congregate Meals Served (Dining Room) 1230
Home Delivered Meals 1247
Volunteer Hours (30 individuals) = 405
Unassisted Transportation Rides 419
Assisted Transportation Rides 122
Social Security Video Service 38 individuals
Senior Center Rentals 5
Total Event Sign-Ins (through MySeniorCenter) 2272
Total Unduplicated Participants (through MySeniorCenter) 228
June activities highlights included:
• No Host Dinner to Acapulco Restaurant. This was attended by 16 seniors for good food
and lots of fun!
• The Senior Center hosted the Anchorage Bowl Chamber Orchestra on Sunday
afternoon, June 2. This 25 piece orchestra performed to over 50 individuals from around
the area. They hope to be back in late August to provide another concert.
• The Mystery Drive was once again, full of excitement. Steve took nine seniors to the
Kasilof home of Joseph and Colleen Robertia to visit their sled dog team. Joseph
explained about their operation of rescues, rejects, runts and discarded dogs they have
rehomed. They visited the South Kasilof riverbank to check out the old Carlson dock
and processing facility where Helen and Connie Carlson spent many years of their lives.
Other stops included ice cream and then to Ron Homan’s house to get a lesson from a
Master Farrier in proper care of horse and donkey hooves with a live demonstration on
a Mediterranean donkey.
• On June 26, over 50 seniors enjoyed a sun-filled picnic out at the Hilcorp Campsite on
Kidney Lake. Missy and Ethan fixed grilled chicken, hot dogs, watermelon, and baked
beans. Also, a pretty competitive corn-hole game was the hot item of the afternoon.
Page 211
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
2nd Quarter
April - June 2019
KVCC Walk in Visitor Count
Month 2015 2016 2017 2018 2019
April 2,145 1,582 1,142 913 1,445
May 3,108 3,299 2,840 2,089 1,700
June 5,880 6,574 6,026 5,057 4,851
Q2 Total 11,133 11,455 10,008 8,059 7,996
Official Kenai Guide Mailings
Month 2015 2016 2017 2018 2019
April 500 667 332 1,330 1,196*
May 850 1,159 988 757 1,141
June 300 730 1,356 1,230 250
Q2 Total 1,650 2,556 2,676 3,317 2,587
*Includes Great Alaska Sportsman Show
Official Kenai Guide Display Racks
Location 2015 2016 2017 2018 2019
Anchorage Brochure Distribution *** *** *** *** ***
Airport Hotel – Kenai NA NA 0 200 0
Aspen – Kenai 200 0 0 0 210
Aspen – Soldotna 200 192 0 100 154
Charlotte’s Restaurant NA NA 0 148 16
City Hall NA 85 170 102 74
Country Foods/IGA 200 35 239 188 63
Diamond M Ranch 100 0 96 0 0
Everything Bagels NA NA 160 194 16
Kenai Airport 1,500 804 651 708 653
Mad Moose Restaurant NA NA 158 NA NA
Paradisos Restaurant 300 75 64 100 142
Quality Inn 400 30 128 237 198
Safeway – Kenai 500 311 406 225 57
Safeway – Soldotna 400 NA NA 448 108
Soldotna Inn 200 56 80 200 30
Sportsmans Warehouse 500 271 343 399 234
The Cannery Lodge NA NA NA NA 0
Three Bears 350 207 196 249 135
Veronica’s NA 31 94 185 69
Total Guide Count 4,850 2,097 2,785 3,683 2,159
Page 212
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
2nd Quarter
April - June 2019
*Note: In January, we send guides to Anchorage Brochure Distribution to distribute to the
following locations throughout the year. ABD also supplies literature to many hotels
and businesses that do not have one of their displays.*
Downtown
Downtown Tour Group
4th Street Mall
Anchorage Guesthouse
Anchorage Grand Hotel
Anchorage Historic Hotel
Clarion Suites
Comfort Inn
International Auto Logistics
Marriott
Ramada
Ship Creek RV
The Aviator
Quality Inn
JBER
Outdoor Rec Ft. Rich
Oasis Travel
YMCA
Outdoor Rec Elm AFB
Airforce Inn
Whittier/Girdwood
Inn at Whittier
Portage Train Station
Midtown
Best Western Golden Lion
AAA Travel
Clippership RV
Extended Stay
Golden Nugget RV
Cruise America RV Rentals
Fairfield Inn Marriott
Hilton Garden Inn
Home2 by Hilton
Marriott
Springhill Suites 36th
Springhill Suites Providence
Spenard
ABC Motorhome
ALEX Inn & Suites
Coast International Inn
Comfort Suites
Courtyard Marriott
Executive Suites
Holiday Inn Express
La Quinta
Midnight Sun Car Rental
Rent-A-Subaru
Puffin Inn
Microtel
Barratts Travel Lodge
# of guides sent to Anchorage Brochure Distribution in January
5yr Comparison
2015 2016 2017 2018 2019
Anchorage Brochure Distribution 20,000 20,000 15,000 15,000 15,000
Page 213
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
2nd Quarter
April – June 2019
Website Traffic for www.visitkenai.com
2019: 5,011 Users*
2018: 5,619 Users
No Eagle Cam in 2019*
Page 214
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
2nd Quarter
April – June 2019
Facility Rental/Community Usage
Organization/Company Hours of Usage
Alaska Support Industry Alliance Membership Luncheons 6
Alaska Veterans’ Affairs Meetings 3.5
Homer Electric Association Board Meeting 6.5
KDLL Radio Adventure Talks 6
Kenai Chamber Board Meetings 6
Kenai Chamber of Commerce Breakfasts/Luncheons 8
Kenai Chamber Women in Business Summit 8
Kenai Community Awards Luncheon 2
Kenai Historical Society Membership Meetings 3.5
Kenai Peninsula Association of Realtors Meetings 4
Kenai Peninsula Relay for Life Meetings 12.5
Kenai Peninsula Trout Unlimited Film Festival 6.5
Kenai Saturday Market 49
Kenaitze Indian Tribe 8.5
Kenai Young Professionals Advisory Council Meetings 1
Opening Reception for Summer Show 2
Shop for a Cure 6
Shroud of Turin Presentation 3
Q2 Facility Usage: 142hrs
Page 215
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
2nd Quarter
April – June 2019
April 4 – 7: GASS Sportshow
750 TideBooks
966 ENA Guides
DipNet App Downloads:
Per Dan, CoK IT, “For the period of April 4 – 8, the Dipnet Kenai app was downloaded a total of
44 times. There were also 379 pageviews and 113 unique sessions.”
Page 216
PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW
COUNCIL MEETING OF: AUGUST 7, 2019
VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT
VERIPIC ANNUAL MAINTENANCE POLICE SOFTWARE 3,003 .00
NORTH STAR PAVING GRAVEL CEMETERY CAP PROJ CONSTRUCTION 4 ,774.00
BRODART LEASED BOOKS LIBRARY RENTALS 6 , 102.00
KENAI WATERSHED FORUM WATER QUALITY MONITORING LEGISLATIVE GRANTS TO AGENCIES 5 ,000.00
ALASKA MUNICIPAL LEAGUE FY20 MEMBER DUES LEGISLATIVE DUES & PUBLICATIONS 7 ,216.00
SOLDOTNA PROF . PHARMACY FY20 PHARMACY SUPPLIES FIRE OPERATING SUPPLIES 4 ,500.00
EDOCSALASKA FY20 LASERFICHE SOFTWARE CLERK SOFTWARE 8, 155.00
IMAGE TREND FY20 ANNUAL SERVICE AGRMT FIRE PROFESSIONAL SERVICES 3 ,000.00
SPILLMAN TECHNOLOGIES FY20 MAINTENANCE COMMUNICATIONS REPAIR & MAINTENANCE 10,781 .94
NEW WORLD SYSTEMS CORP MOBILE DATA COMPUTER SOFTWARE FIRE COMMUNICATIONS 3 ,800.00
CROWLEY FLOAT PLANE BASIN FUEL AIRPORT OPERATING SUPPLIES 3 ,807 .92
ST ATE OF ALASKA -ACADEMY ACADEMY TUITION -HILD POLICE TRAVEL 12 ,360 .00
PENINSULA CLARION FY20 AGENDAS/NOTICES CLERK ADVERTISING 6 ,000.00
KONICA MINOLTA FY20 COPIER MAINT. NON-DEPARTMENTAL POSTAGE 6 ,000.00
CHRISTINE BABCOCK FY20 PHYSICIAN CONSULTATION FIRE PROFESSIONAL SERVICES 6 ,000.00
TERRI ELLIOTT FY20 PHYSICIAN CONSULTATION FIRE PROFESSIONAL SERVICES 6 ,000.00
SPRINKLER PRO LAWN MAINTENANCE JULY-SEPT. CONG. HOUSING PROFESSIONAL SERVICES 4,500.00
T2 SYSTEMS LUKE PAY STATION AIRPORT MACHINERY & EQUIPMENT 10, 104.30
ESRI ARCGIS MAINTENANCE VARIOUS SOFTWARE 3 ,749.00
CODE PUBLISHING COMPANY FY20 MUNICIPAL CODE UPDATES CLERK PROFESSIONAL SERVICES 5 ,000.00
KACHEMAK ELECTRIC CIRCUIT INSTALLATION BUILDINGS REPAIR & MAINTENANCE 3, 149.00
GCI FY20 VINTAGE POINTE CABLE CONG. HOUSING UTILITIES 8,640 .00
PENINSULA CLARION FY20 AGENDAS/NOTICES P&Z ADVERTISING 3 ,500 .00
WINCE , CORTHELL, BRYSON ENGINEERING SERVICES AIRPORT PROFESSIONAL SERVICES 3,000.00
MINICIPAL CODE CORPORATION AGENDA MANAGEMENT SOFTWARE CLERK SOFTWARE 3 ,800.00
WORLD WIDE TECHNOLOGY ANNUAL CISCO MAINTENANCE VARIOUS COMMUNICATIONS 8 ,664.80
ALCAN ELECTRICAL CAMERA LICENSES LIBRARY SOFTWARE 2 ,549.56
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AUGUST 7, 2019
CITY COUNCIL MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED REVISIONS TO THE AGENDA/PACKET:
ACTION ITEM REQUESTED BY
Add to item G.7. Special Use Permit for Kenai Chamber of Commerce
And Visitor Center
• Letter from Kenai Chamber of Commerce and
Visitor Center City Manager
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Kenai City Council - Regular Meeting Page 1 of 3
August 07, 2019
Kenai City Council - Regular Meeting
August 07, 2019 – 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
ACTION AGENDA
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. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-54 -
Designating Management Authority For Tract 2, Baron Park Subdivision To Reflect
That Revenues And Expenses Associated With The Property Are Allocated To
The Airport Fund. (Administration)
2. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-55 -
Designating Management Authority For Tract 3, Baron Park Subdivision To Reflect
That Revenues And Expenses Associated With The Property Are Allocated To The
Airport Fund. (Administration)
E. MINUTES
1. APPROVED BY THE CONSENT AGENDA *Regular Meeting of July 3, 2019.
Kenai City Council - Regular Meeting Page 2 of 3
August 07, 2019
F. UNFINISHED BUSINESS
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA *Action/Approval - Bills to be Ratified
(Administration)
2. APPROVED BY THE CONSENT AGENDA *Action/Approval - Purchase Orders
Exceeding $15,000 (Administration)
3. INTRODUCED, REFERRED TO THE AIRPORT COMMISSION, PLANNING AND
ZONING COMMISSION, AND HARBOR COMMISSION AND SET PUBLIC
HEARING FOR 08/21/19. Ordinance No. 3072-2019 - Renaming, Repealing and
Re-Enacting Kenai Municipal Code Title 22-General Fund Lands, Renaming Title
21-City Airport and Airport Lands, and Repealing Kenai Municipal Code Chapter
21.15-Lease and Sale of Airport Lands Outside of the Airport Reserve to
Encourage Responsible Growth and Development to Support a Thriving Business,
Residential, Recreational and Cultural Community through Responsible Land
Policies and Practices. (Administration)
4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING SET FOR 08/21/19.
*Ordinance No. 3073-2019 - Accepting and Appropriating a Grant from the State
of Alaska for the Purpose of Purchasing Books. (Administration)
5. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING SET FOR 08/21/19.
*Ordinance No. 3074-2019 - Increasing Estimated Revenues and Appropriations
by $1,504.82 in the FY2019 General Fund - Police Department for State Traffic
Grant Overtime Expenditures. (Administration)
6. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING SET FOR 08/21/19.
*Ordinance No. 3077-2019 - Increasing Estimated Revenues and Appropriations
in the Water & Sewer Special Revenue and Water & Sewer Improvements Capital
Project Funds for Engineering and Design Services to Relocate Well House #1
which was Damaged by the November 30, 2018 Magnitude 7.0 Southcentral
Alaska Earthquake. (Administration)
7. APPROVED UNANIMOUSLY. Action/Approval - Authorizing a Special Use
Permit for the Kenai Chamber of Commerce and Visitor Center for the Use of the
"Moose Meat John" Cabin. (Administration)
H. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
Kenai City Council - Regular Meeting Page 3 of 3
August 07, 2019
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION
M. PENDING ITEMS
N. ADJOURNMENT
O. INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review
2. Kenai Chamber of Commerce Thank You Letter
3. Kenai Performers Sponsorship Request
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.