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2022-02-02 Council Packet
Kenai City Council - Regular Meeting Page 1 of 3 February 02, 2022 Kenai City Council - Regular Meeting February 02, 2022 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska **Telephonic/Virtual Information on Page 3** 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) 1. Coy West - City of Kenai Marketing Presentation 2. Brandy Niclai and Bill Lierman, Alaska Permanent Capital Management - 2021 Financial Performance, Financial Projections and Recommended 2022 Asset Allocation for the City's Permanent Fund Investments. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. Ordinance No. 3267-2022 - Authorizing COVID Leave for City Employees that Test Positive for COVID-19, and Authorizing the Use of Funds from a Grant from the State of Alaska - Department of Health and Social Services - Division of Public Health - COVID Emergency Operations Center to Fund the Leave. (Administration) Substitute Ordinance No. 3267-2022 - Authorizing COVID Leave for City Employees that Test Positive for COVID-19, and Authorizing the Use of Funds from a Grant from the State of Alaska – Department of Health and Social Services – Division of Public Health – COVID-19 Emergency Operations Center to Fund the Leave and COVID-19 Testing. (Administration) Page 1 Kenai City Council - Regular Meeting Page 2 of 3 February 02, 2022 2. Ordinance No. 3268-2022 - Increasing Estimated Revenues and Appropriations in the Water and Sewer Special Revenue Fund and Authorizing a Purchase Order Increase to Alaska Waste for Sludge Disposal Services At The Waste Water Plant (Administration) 3. Ordinance No. 3269-2022 - Amending Kenai Municipal Code Section 7.30.020, Land Sale Permanent Funds, to Identify the Circumstances and Limitation on the Use of Derivative Investments and to Add Two New Classes of Assets to the List of Authorized Investments and to Codify the Applicable Benchmark by Which these Asset Classes Will be Measured and Evaluated (Administration) 4. Resolution No. 2022-08 - Designating the Investment and Allocation Plan for the City’s Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2022. (Administration) E. MINUTES 1. *Regular Meeting of January 19, 2022. (City Clerk) F. UNFINISHED BUSINESS G. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Purchase Orders Over $15,000. (Administration) 3. *Action/Approval - Non-Objection to Liquor License Renewals for Uptown Motel/Back Door Lounge and Uptown Motel/Louie's. (City Clerk) 4. *Ordinance No. 3270-2022 - Increasing Estimated Revenues and Appropriations in the General, Airport, Senior Citizen, and Water & Sewer Funds, and Authorizing a One-Time Premium Payment to Eligible Employees. (Vice Mayor Glendening and Council Members Winger and Sounart) 5. *Ordinance No. 3271-2022 - Increasing Estimated Revenues and Appropriations in the Airport Land Sale Permanent Fund to Transfer Earnings in Excess of Budgeted Amounts to the City’s Airport Fund. (Administration) 6. *Ordinance No. 3272-2022 - Increasing Estimated Revenues and Appropriations in the General Land Sale Permanent Fund to Transfer Earnings in Excess of Budgeted Amounts to the City’s General Fund. (Administration) 7. Action/Approval - Confirmation of Mayoral Nomination for Appointment to Mini-Grant Steering Committee. (Mayor Gabriel) 8. Discussion - Request to Schedule a Council Work Session for the Draft Land Management Plan. (Administration) H. COMMISSION / COMMITTEE REPORTS 1. Council on Aging Page 2 Kenai City Council - Regular Meeting Page 3 of 3 February 02, 2022 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION M. PENDING ITEMS 1. Resolution No. 2022-04 - Awarding a Three Year Contract for the Purchase of Microsoft Software. (Administration) [Clerk's Note: At the January 19, 2022 Meeting, this item was Postponed to the February 16, 2022 Council Meeting; a motion to enact is on the floor.] N. ADJOURNMENT O. INFORMATION ITEMS 1. Purchase Orders Between $2,500 and $15,000 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. Join Zoom Meeting OR https://us02web.zoom.us/j/87839274421 Dial In: (253) 215-8782 or (301) 715-8592 Meeting ID: 878 3927 4421 Passcode: 988655 Meeting ID: 878 3927 4421 Passcode: 988655 Page 3 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS CITY OF KENAI PERMANENT FUNDS ANNUAL REVIEW FOR PERIOD ENDING DECEMBER 31, 2021 Agenda 01 Market Review 02 Portfolio Review 03 Strategic Review 04 Appendix Page 4 Account Summary as of December 31, 2021 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS1 Account Inception September 2008 Total Deposits $21,934,733 Cumulative Withdrawals Includes Annual Distributions and Custodian Fees $14,371,325 Current Market Value December 31, 2021 $36,400,142 Annualized Account Return September 30, 2008 –December 31, 2021 +8.70% Gross, +8.46% Net Current Allocation 65% Equity / 35% Bonds Fee Schedule 0.16%Annual Effective Rate* *Current fee schedule is 0.25% on the first $10M, 0.15% on the next $10M, and 0.10% thereafter. Page 5 Market Review TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS2 Market Review Portfolio Review Strategic Review Appendix Page 6 Mid-Cycle Investing Requires Selectivity Transitioning from Recovery to Expansion 3 MARKET REVIEW TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS 2021 was a strong calendar year with returns above the expected returns of the strategic asset allocations that were designed to meet client goals. Risk on positioning was the right thing to do during the recovery phase of this cycle. Trend growth denotes the 10-year pre-pandemic average annual growth rate. Source: Bloomberg, IMF 3.7 2.1 5.3 4.9 4.5 5.1 Global Economy Developed Emerging Growth Projections (%) Trend Growth Trend Growth Trend Growth 202220222022 Slower, Not Slow •Developed economic growth is expected to be 4.5% vs. trend of 2.1% •Emerging market growth is expected to be 5.1% vs. trend 5.3% Tighter, Not Tight •Monetary policy will be tighter but remain accommodative (rates below neutral) •Inflation, supply chain issues and tight labor markets will gradually ease Key Risks •Policy mistakes and inflation expectations becoming unanchored •COVID variants remain a risk, particularly a variant that proves more deadly Risk control to struggle Fundamentals support risk assets Expect more volatility relative to 2021 Exposure matters now Overweight equities and alternatives Emphasize sectors and countries levered to spending Underweight global fixed income Investment Insights Mid-Cycle Investing Requires Selectivity Page 7 Mid-Cycle Investing Requires Selectivity Fundamentals support risk 4 MARKET REVIEW TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS 9.0 8.0 13.9 5.8 5.15.3 7.2 5.9 3.0 7.5 Large Cap Mid Cap Small Cap Developed Markets Emerging Markets 2022 EPS Growth Estimates 2022 EPS Growth Estimates (%) 15-Year Average Source: FactSet, APCM Above Trend Growth Supports Risk Assets Expectations for above-trend global growth and policy that is tighter,but not tight, provides support for risk assets over risk control in 2022.In addition,our economic outlook indicates:strong consumer spending,a recovery in inventories,robust business spending as companies try to meet demand and improve productivity to offset elevated wage growth,slowly falling inflation,and real rates to rise as policy accommodation is reduced. Mid-cycle Investing Requires Selectivity In this environment,it will pay off to be selective about exposures now that economies have moved from recovery to expansion.Therefore,APCM is tilting exposure towards sectors that are well positioned given the economic backdrop and where valuations are the least stretched.In particular –industrial manufacturing and services,electronics manufacturing,consumer goods and retail,and to a lesser extent banks and investment services.Company fundamentals,valuations,and expected volatility round out the selection process. Thoughtfully Positioning in the Expansion Phase Exposures in U.S.small companies,Japanese stocks,natural resource companies,and infrastructure stocks are the most attractive using this framework.All exhibit above- trend earnings growth expectations and relatively attractive valuations. Lower, Not Negative Returns APCM does not to expect the same kind of returns from equities this year as were seen in 2020 and 2021.However,positive factors outweigh negative ones for risk assets. 2022 S&P 1500 Capex Expectations Dollar Amount of Capital Expenditures Expected in 2022 $895B $318B above avg. $153B vs. 2019 Growth in Capital Expenditures 14.1%above avg. 9.5% vs. 2019 13.0% Source: FactSet, APCM Page 8 Mid-Cycle Investing Requires Selectivity Policy changes and inflation pressures create volatility 5 MARKET REVIEW TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS Prepare for more Volatility Volatility will pick-up as global central bankers move to normalize policy and inflation pressures linger.But,outside of a more severe covid strain,significant downside risk is unlikely unless the Fed shifts from removing accommodation to meaningfully slowing growth to combat inflation. Managing Volatility We seek to diversify our equity overweight and increase relative returns vs. bonds by overweighting alternative beta.This strategy offers upside participation and downside defense through uncorrelated strategies that have historically produced consistent returns across all markets. In lieu of alternative beta,a combination of cash and consumer staples should reduce portfolio volatility while also providing incremental return. Subdued Market Gains Valuations will come under pressure as stimulus wanes,but solid earnings will provide important support for risky assets.Given this backdrop,we expect modestly positive equity returns in 2022. -4.4% 0.0% 0.6% Diversify Stocks and Bonds Rising Rate Environment S&P 500 US Fixed Income Alt Beta Source: Bloomberg from December 31, 2017 to December 31, 2018. Alt Beta represented by a portfolio of 75% BIMBX 25% QAI. EPS ∆ + P/E ∆ + Cash Yield = Total Return↗↗↗↘ The return from an equity market derives from the growth in earnings, the change in valuations over the period, and the dividends and stock buybacks expressed as a percentage of price (*cash yield). Combined, these components determine the total return. Page 9 Asset Class Returns Calendar Year 2021 6 MARKET REVIEW TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS Data: Bloomberg. Asset class performance is represented by the stated index return. Returns annualized for periods greater than one year 0.0%0.9% -1.5%-1.0% 5.3% -2.1% 4.5% 28.7% 24.8%26.8% 11.3% -2.5% 27.1% 43.1% 9.6% 4.7% -10% 0% 10% 20% 30% 40% 50%Total ReturnCash Municipal Bonds U.S. Fixed Income 1-5 Gov. Credit TIPS Intl. Fixed Income HY Fixed Income U.S. Large Cap U.S. Mid Cap U.S. Small Cap Dev. Ex- U.S. Emerging Markets Comm. Real Estate Infra.Alt. Beta 2021 0.0 0.9 -1.5 -1.0 5.3 -2.1 4.5 28.7 24.8 26.8 11.3 -2.5 27.1 43.1 9.6 4.7 3 Year 1.0 4.0 4.8 2.9 5.1 3.5 8.4 26.1 21.4 20.1 13.5 10.9 9.9 18.1 12.2 4.9 5 Year 1.1 3.6 3.6 2.3 3.3 3.2 5.8 18.5 13.1 12.4 9.5 9.9 3.7 10.6 8.5 3.0 EQUITIES RISK CONTROL FIXED INCOME ALTERNATIVES RISK ASSETS Page 10 Portfolio Review TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS7 Market Review Portfolio Review Strategic Review Appendix Page 11 15.6%13.1%12.0%13.5% 6.0%7.5% 12.0% -4.5% 17.1% 10.8%11.9% -$5 $0 $5 $10 $15 $20 $25 $30 $35 $40 2008 2010 2012 2014 2016 2018 2020Millions-0.1%-0.1% Historical Market Value as of December 31, 2021 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS8 Chart shows month-end portfolio market value from September 2008 to December 2020 and annual returns from December 2008 to December 2021. Performance is gross of fees and annualized for periods greater than one year. Market Value as of December 31, 2021: $36,400,142 The annual return of the City of Kenai Permanent Funds has averaged 8.70% since inception. PORTFOLIO REVIEW Page 12 Asset Allocation as of December 31, 2021 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS9 PORTFOLIO REVIEW Asset Class % Assets Strategic Benchmark Range Market Value Fixed Income 34.1%35%$12,400,400 U.S. Fixed Income 27.1%30 25-45%$9,846,930 Cash 7.0%5 0-10 $2,553,470 Equities 65.9%65%$23,999,742 Large Cap 23.2%22 17-27%$8,444,088 Mid Cap 12.2%12 7-17 $4,437,562 Small Cap 6.1%6 0-11 $2,205,806 International 11.5%12 7-17 $4,196,933 Emerging Markets 7.4%8 0-13 $2,705,552 Real Estate 2.1%2 0-5 $781,973 Infrastructure 3.4%3 0-6 $1,227,828 Total $36,400,142 27.1% 7.0% 23.2% 12.2% 6.1% 11.5% 7.4% 2.1% 3.4% U.S. Fixed Income Cash Large Cap Mid Cap Small Cap International Emerging Markets Real Estate Infrastructure Page 13 8.70 8.43 9.21 13.24 11.94 8.83 8.43 9.38 13.45 11.57 0% 5% 10% 15% Since Inception 10 Year 5 Year 3 Year 1 YearTotal ReturnKenai PF Strategic Benchmark Account Performance as of December 31, 2021 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS10 PORTFOLIO REVIEW Performance is gross of fees and annualized for periods greater than one year. Inception performance begins on September 30, 2008. Strategic benchmark is a blended return of the account’s target allocation. Page 14 Strategic Review TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS11 Market Review Portfolio Review Strategic Review Appendix Page 15 Perpetual Process for Optimal Portfolio City of Kenai Permanent Funds After an allocation is selected, assessing the continued appropriateness of an asset allocation is an integral part of the PAIR process. The Permanent Funds’ current strategic asset allocation is expected to meet Funds’ goals. However, as a result of research APCM conducted to prepare client’s assets for the future, two additional asset classes are being recommended for inclusion in the strategic asset allocation. The recommended portfolio is expected to reduce overall portfolio risk without a reduction in expected return. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS12 STRATEGIC REVIEW APCM collaborates with clients to develop investment solutions based on their unique requirements and liquidity needs. Plan Analyze Expert Guidance Optimized Portfolio Consistent Reporting ImplementReview Customized Solution . .. . Portfolios are designed, using an analytical framework,to meet clients’ return needs, risk tolerance, and time horizon. APCM invests and monitors the customized portfolio,positioning it dynamically based on the results of the Planning stage and current conditions. Portfolio Review Portfolio performance & current market Strategic Review Long term return expectations, goals, objectives & constraints Page 16 Expected to Meet Goals City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS13 Risk and return data from Windham Portfolio Advisor. Data is rounded to nearest tenth. “Worst” denotes the 95% confidence level, “Base” the 50% confidence level, and “Best” the 5% confidence level. 65% Equity / Current Expected Annual Return 6.7% Expected Risk 11.0% Long-Term Expected Return (integrates risk)6.2% Less Inflation -2.0% Net Earnings 3.9%4.2%4.5% Worst Base Best The Permanent Funds’ prioritize the protection of the purchasing power of assets over the long term. APCM expects inflation of 2.0% on average over the next 10 years. 2.0% Inflation While each Fund has separate rules for appropriations, the Permanent Funds’ target is to generate four percent (3.8% to 4.2%) per year for appropriations over the long term. 4.0% Distribution Based upon the Permanent Funds’ current goals, the portfolio requires a long-term expected return of at least six percent (6%). 6.0% Required Return STRATEGIC REVIEW Page 17 The Environment Ahead City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS14 STRATEGIC REVIEW 01 02 03 Higher Inflation APCM is anticipating a higher inflation environment over the next 10 years compared to the post-Global Financial Crisis. Rising Rates Given rates are quite low, and higher inflation than the post-Global Financial Crisis period,global central banks will need to increase interest rates over the near-to medium-term. Challenges Ahead In the environment ahead, diversification will be essential for a robust portfolio.In particular,in times when stocks and bonds behave similarly. Page 18 Additional Tools for the Future City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS15 STRATEGIC REVIEW High Yield Bonds Though these are fixed income securities, APCM views them as risk assets like equities, with upside participation in risk-on environments and downside protection in risk-off environments compared to equities. High yield bonds historically have captured 55% of the upside of equities, but only 33% of the downside. Alternative Beta Because these strategies isolate specific return drivers, they do not behave like stocks or bonds –a significant diversification benefit for the total portfolio. For example, during the COVID crisis, the S&P 500 was down -19.6% vs. alt beta down -3.5%. High Yield Bonds A mix of stock-like and bond-like return drivers combine to provide some of the highest yields and one of the highest long-term fixed income return expectations. High yield bonds also have lower sensitivity to interest rate changes than aggregate IG bonds. Combined with higher yields, these assets may provide positive returns even when IG bonds are negative. Alternative Beta Implementation strategies that target unique return drivers that are expected to provide higher returns than bonds. These can generate positive returns in market environments that are challenging for other asset classes. In 2018, when rates were rising significantly, alt beta provided positive 0.6% returns vs. -4.4% for the S&P 500 and 0.0% for aggregate bonds. Page 19 Asset Class 65% Equity / Current Difference New Model W/ HY & AB 22.0%0.0%22.0% 12.0%-2.0%10.0% 6.0%-1.0%5.0% 12.0%-4.0%8.0% 8.0%-3.0%5.0% 2.0%0.0%2.0% Infrastructure 3.0%2.0%5.0% 30.0%-4.0%26.0% U.S. Corporate High Yield 0.0%4.0%4.0% Alternative Beta 0.0%10.0%10.0% 5.0%-2.0%3.0% 6.7%6.6% -15.3% to 28.8%-13.6% to 26.9% 6.2%6.2% 4.2%4.2%Net Earnings 10.1% Expected Annual Return Expected Range Long Term Expected Return Less Inflation 11.0%Expected Annual Risk Large Cap Equity Mid Cap Equity Small Cap Equity International Equity Emerging Markets Equity Cash REITs U.S. Fixed Income -2.0%-2.0% Lower Risk, Same Return City of Kenai Permanent Funds The current strategic asset allocation, which was adopted via Resolution 2021-05 signed on February 3, 2021, is expected to achieve the goals of inflation protection and a 4% annual spending rate. The inclusion of additional asset classes that APCM researched to address the post-pandemic market environment is expected to reduce risk and still provide the required return. The average loss in extreme conditions (conditions such as those during the February to March COVID- driven bear market) for the current allocation is estimated at -25.9% vs. -24.1% with the new assets included. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS16 STRATEGIC REVIEW 2021 risk and return data from Windham Portfolio Advisor. Page 20 Wealth Simulations 10-Year Horizon City of Kenai Permanent Funds The simulations were based upon a starting market value of $36.4M. Distributions were based upon the distribution policies specified in Code (§7.30.020(4), (5)) utilizing the inflation-adjusted principal for the ALSPF and GLSPF separately. Inflation-adjusted principal was calculated utilizing realized CPI-U to model start, and then 2% annually thereafter. The expected ending market value is presented before the expected 2032 distribution below. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS17 STRATEGIC REVIEW Distributions ($ millions)2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Total Current / 65% Equity 1.18 1.23 1.42 1.49 1.43 1.57 1.60 1.63 1.66 1.70 1.74 16.76 New w/HY & AB 1.18 1.23 1.43 1.49 1.54 1.48 1.62 1.65 1.68 1.71 1.74 16.84 $27.2 $28.7 $46.0 $45.9 $80.5 $75.8 $24 $34 $44 $54 $64 $74 $84 $94 Current / 65% Equity New w/HY & ABMillionsMonte Carlo Simulation Worst Case (95%)Expected (50%)Best Case (5%) 2021 Risk and return data from Windham Portfolio Advisor. Distributions provided at the 50th percentile (base case). Page 21 Decision Framework City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS18 STRATEGIC REVIEW If the top priority for the City is to generate the necessary return with the least risk, then the new strategic asset allocation is appropriate. This change would require an amendment to the allowable investments currently included in Kenai Municipal Code. If the City wants to maintain risk levels and allowable investments as they are, then remaining with the current allocation is appropriate. The current allocation keeps risks levels similar to last year and makes no changes to the allowable investments in the portfolio. Risk Tolerance Investment Universe Page 22 Appendix TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS19 Market Review Portfolio Review Strategic Review Appendix Page 23 The Case for High Yield Fixed Income City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS20 APPENDIX * CMAs are 10-year projected returns and do not represent actual returns. 1.12%1.67%1.71%0.86%1.43% 6.17% 9.13% 10.25%10.47% 8.77% 10.67% 4.43% 9.37% 7.31% 0% 2% 4% 6% 8% 10% 12%Total ReturnCash Muni. Bonds U.S. Fixed TIPS Intl. Fixed US. HY Bonds U.S. Large U.S. Mid Cap U.S. Small Dev. Ex- U.S. Emerging Markets Comm. Real Estate Infra. Expected Return*1.12%1.67%1.71%0.86%1.43%6.17%9.13%10.25%10.47%8.77%10.67%4.43%9.37%7.31% EQUITIES REAL ASSETS RISK CONTROL RISK ASSETS FIXED INCOME High yield bonds are issued by corporations with ratings below BBB− or Baa3 by established credit rating agencies. In a company’s capital structure, debt securities rank ahead of equity securities, so if a company was unable to pay all of their obligations and/or the valuation of the company dramatically declines, the debt securities are paid back first and are the first to capture any remaining value in the company before anything is allocated to the equity (preferred and common) holders. Page 24 The Case for High Yield Fixed Income City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS21 APPENDIX o Since 1993, high yield has averaged a 0.7% monthly return; this is similar to global equities but with less volatility and less downside risk. o High yield’s asymmetric return profile –55% of the upside with only 33% of the downside – makes it an attractive addition to a fully diversified multi-asset portfolio. Source: Northern Trust Global Asset Allocation, Bloomberg. Data from 1/29/1993 to 5/29/2020. Global equities = MSCI ACWI; Global high yield = Bloomberg Barclays Global High Yield Index. 0.7% 1.8% -1.2% 0.7% 3.2% -3.6%All Time Periods When Global Equities Are Positive When Global Equities Are Negative Average Monthly Return High Yield Equities 55%of the upside 33%of the downside An allocation to high yield has provided investors with upside participation in positive risk environments and downside protection in negative risk environments. Page 25 βBonds βEquityβAlts βBonds βValue βSize βCarry βMomentum βBuybacks βMomentumβEquity βConglomerate Discount βMerger Arbitrage βQuality Alternative beta captures sources of return that exist, but are not emphasized, in traditional stock and bond portfolios. The industry’s broader understanding of sources of return now allow these strategies to be accessed in a quantitative, systematic manner that does not require a specific manager’s subjective judgment. These alternative sources of returns can further diversify a stock and bond portfolio, but all require complex trading strategies. The risks associated with these trading strategies require proper risk management and controls. Diversifying Benefits of Alternative Beta City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS22 APPENDIX + Innovation = Page 26 Diversifying Benefits of Alternative Beta City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS23 APPENDIX -4.4% 0.0% 0.6% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% Diversify Stocks and Bonds Calendar Year 2018 S&P 500 US Fixed Income Alternatives Source: Bloomberg from December 31, 2017 to December 31, 2018. Alternatives represented by a portfolio of 75% BIMBX 25% QAI. -19.6% 3.2% -3.5% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% Manage Equity Volatility First Quarter 2020 COVID Crisis S&P 500 US Fixed Income Alternatives Source: Bloomberg from December 31, 2019 to March 31, 2020. Alternatives represented by a portfolio of 75% BIMBX 25% QAI. Page 27 Vanguard High-Yield Corporate Fund City of Kenai Permanent Funds APCM is utilizing a fund (ticker: VWEAX) to invest in a diversified group of high-yielding corporate bonds. Higher credit quality and lower return volatility relative to competitors. Utilizes an approach that aims to capture consistent income and minimize defaults and principal loss. Broadly diversified by issuer and industry sector with caps on individual issuers as well as bonds rated lower than B. APCM worked with Vanguard to waive the normal $50K minimum initial investment for all APCM clients. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS24 VWEAX Quick Facts as of 05/31/2020 Inception Date 12/27/1978 Fund AUM $24.6 B Expense Ratio 0.13% #of Holdings 538 Provider Vanguard Fund Index Vanguard High-Yield Corporate Composite Idx Page 28 IQ Hedge Multi-Strategy Tracker ETF City of Kenai Permanent Funds APCM is utilizing a fund (ticker: QAI) to dampen some portfolio volatility while maintaining exposure to growth. Transparent, low-cost exposure to six dominant hedge fund strategies without manager-specific risk. Conservative core alternative vehicle that does not wholly rely on traditional sources of risk, including interest rates and equity market beta. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS25 QAI Quick Facts as of 03/31/2020 Inception Date 03/25/09 Fund AUM $755.55M Expense Ratio 0.75% #of Holdings 99 Provider IQ by New York Life Fund Index IQ Hedge Multi-Strategy Index Page 29 Systematic Multi-Strategy Fund City of Kenai Permanent Funds APCM is utilizing a fund (ticker: BIMBX) to dampen some portfolio volatility while maintaining exposure to growth. Transparent, low-cost exposure to multiple alternative strategies including fixed income, global macro, and equity long/short –all with an emphasis on the business cycle and balance sheet strength without manager-specific risk. Conservative core alternative vehicle that does not wholly rely on traditional sources of risk, including interest rates and equity market beta. APCM worked with BlackRock to waive the normal $2M minimum initial investment for all APCM clients. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS26 BIMBX Quick Facts as of 06/29/2020 Inception Date 05/19/15 Fund AUM $7.8B Expense Ratio 0.97% #of Holdings 1,804 Provider BlackRock Fund Index ICE BofAML 3-Mo. T-Bill Index Page 30 Disclosures TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS27 Important Assumptions IMPORTANT:The projections or other information generated by Alaska Permanent Capital Management Company (APCM)regarding the likelihood of various outcomes are hypothetical in nature,do not reflect actual investment results,and are not guarantees of future results.There can be no assurance that the projected or simulated results will be achieved or sustained.The charts and data only present a range of possible outcomes.Actual results will vary over time,and such results may be better or worse than the simulated scenarios. Clients should be aware that the potential for loss (or gain)may be greater than that demonstrated in the simulations.Please note that the analysis does not take into consideration all asset classes,and other asset classes not considered may have characteristics similar or superior to those being analyzed. Important Legal Information These calculations are designed to be informational and educational only,and when used alone,do not constitute investment advice.APCM encourages investors to review their investment strategy periodically as financial circumstances do change. Model results are provided as a rough approximation of future financial performance.Actual results could produce different outcomes (either better or worse)than those illustrated by the model,since it is not possible to anticipate every possible combination of financial market returns.APCM is not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by the results of the model. Other Influences on Rates of Return Investment management fees:Returns are presented gross of management fees and include the reinvestment of all income.Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account.The collection of fees produces a compounding effect on the total rate of return net of management fees. As an example,the effect of investment management fees on the total value of a client’s portfolio assuming (a)quarterly fee assessment,(b)$1,000,000 investment,(c)portfolio return of 8%a year,and (d)1.00%annual investment advisory fee would be $10,416 in the first year,and cumulative effects of $59,816 over five years and $143,430 over ten years.Actual investment advisory fees incurred by clients may vary. Taxes:Unless noted otherwise,model results have not been adjusted for any state or federal taxes or penalties. Inflation:Unless noted otherwise,model results do not adjust any inputs or outcomes for inflation.Inflation is assumed to be constant over the investment horizon. Limitations Inherent in Model Results Limitations include but are not restricted to the following: Model results do not represent actual trading and may not reflect the impact that material economic and market factors might have had on APCM’s decision making if the actual client money were being managed. Extreme market movements may occur more frequently than represented in the model. Some asset classes have relatively limited histories.While future results for all asset classes in the model may materially differ from those assumed in APCM’s calculations,the future results for asset classes with limited histories may diverge to a greater extent than the future results of asset classes with longer track records. Market crises can cause asset classes to perform similarly over time;reducing the accuracy of the projected portfolio volatility and returns.The model is based on the long-term behavior of the asset classes and therefore is less reliable for short-term periods.This means that the model does not reflect the average periods of "bull"and "bear"markets,which can be longer than those modeled. The model represent APCM’s best view of the next 7-10 years,but is unlikely to reflect actual investment returns worldwide over this period. Page 31 Portfolio Appraisal CITY OF KENAI PERMANENT FUNDS December 31, 2021 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity AGENCIES 125,000 FEDERAL HOME LOAN BANK 99.90 124,875 98.04 122,550 0.34 750 258 1.15 0.600% Due 08-27-25 125,000 FHLB 104.27 130,335 101.23 126,539 0.35 2,031 615 1.38 1.625% Due 03-12-27 Accrued Interest 873 0.00 255,210 249,962 0.69 873 CASH AND CASH EQUIVILENTS DIVIDEND ACCRUAL 35,790 35,790 0.10 WF ADV GOVT MM FD-INSTL #1751 2,517,680 2,517,680 6.92 2,553,470 2,553,470 7.01 CORPORATE BONDS 200,000 BANK OF NEW YORK MELLON 97.83 195,666 102.17 204,332 0.56 4,400 1,650 0.85 2.200% Due 08-16-23 200,000 JPMORGAN CHASE & CO 105.18 210,362 105.86 211,726 0.58 7,750 3,229 1.02 3.875% Due 02-01-24 100,000 MORGAN STANLEY IND FINANCIAL SRV 103.71 103,711 106.01 106,009 0.29 3,875 667 1.25 3.875% Due 04-29-24 100,000 WELLS FARGO & COMPANY 99.88 99,882 105.17 105,168 0.29 3,300 1,027 1.33 3.300% Due 09-09-24 150,000 KIMCO REALTY CORP 94.92 142,377 105.10 157,654 0.43 4,950 2,062 1.60 3.300% Due 02-01-25 150,000 REYNOLDS AMERICAN INC 108.47 162,700 108.00 162,000 0.45 6,675 352 2.03 4.450% Due 06-12-25 150,000 CITIGROUP INC 101.65 152,470 108.13 162,192 0.45 5,550 2,605 1.61 3.700% Due 01-12-26 100,000 KROGER CO 99.82 99,820 103.91 103,908 0.29 2,650 559 1.79 2.650% Due 10-15-26 100,000 GENERAL DYNAMICS CORP 106.12 106,120 108.87 108,866 0.30 3,500 875 1.72 3.500% Due 04-01-27 35,000 DARDEN RESTAURANTS INC 110.59 38,706 108.25 37,888 0.10 1,347 225 2.20 3.850% Due 05-01-27 110,000 BORGWARNER INC 107.34 118,072 103.31 113,643 0.31 2,915 1,457 2.01 2.650% Due 07-01-27 100,000 ENBRIDGE INC 101.13 101,135 107.82 107,817 0.30 3,700 1,706 2.19 3.700% Due 07-15-27 100,000 ANHEUSER-BUSCH INBEV WORLDWIDE 114.31 114,309 111.23 111,230 0.31 4,000 867 2.08 4.000% Due 04-13-28 1 Page 32 Portfolio Appraisal CITY OF KENAI PERMANENT FUNDS December 31, 2021 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity 70,000 ESSEX PORTFOLIO LP 111.75 78,224 110.62 77,434 0.21 2,800 933 2.38 4.000% Due 03-01-29 100,000 INTEL CORP 113.48 113,484 113.59 113,588 0.31 3,900 1,040 2.09 3.900% Due 03-25-30 50,000 KOHL'S CORPORATION 99.80 49,901 101.84 50,921 0.14 1,687 281 3.14 3.375% Due 05-01-31 70,000 CENOVUS ENERGY INC 119.59 83,716 118.15 82,708 0.23 3,675 163 3.70 5.250% Due 06-15-37 100,000 AT&T INC 119.32 119,320 141.32 141,325 0.39 6,375 2,125 3.42 6.375% Due 03-01-41 100,000 HOME DEPOT INC 115.63 115,627 131.87 131,869 0.36 4,875 1,842 2.91 4.875% Due 02-15-44 50,000 PHILLIPS 66 126.49 63,243 126.07 63,037 0.17 2,437 311 3.25 4.875% Due 11-15-44 100,000 CARDINAL HEALTH 111.47 111,470 120.17 120,167 0.33 4,900 1,443 3.62 4.900% Due 09-15-45 100,000 BANK OF AMERICA CORP 106.31 106,308 124.26 124,263 0.34 4,443 1,987 3.08 4.443% Due 01-20-48 100,000 Sysco Corporation 120.54 120,536 117.67 117,666 0.32 4,450 1,310 3.42 4.450% Due 03-15-48 70,000 NATIONAL RETAIL PROP INC 126.03 88,222 125.20 87,641 0.24 3,360 709 3.36 4.800% Due 10-15-48 50,000 TELUS CORP 121.52 60,762 121.11 60,555 0.17 2,150 96 3.15 4.300% Due 06-15-49 110,000 MAGELLAN MIDSTREAM PARTN 109.07 119,976 105.92 116,517 0.32 4,345 1,448 3.61 3.950% Due 03-01-50 110,000 KANSAS CITY SOUTHERN 108.00 118,801 106.31 116,945 0.32 3,850 642 3.16 3.500% Due 05-01-50 75,000 NUTRIEN LTD 99.74 74,803 115.75 86,815 0.24 2,962 395 3.11 3.950% Due 05-13-50 Accrued Interest 32,009 0.09 3,069,725 3,215,896 8.83 32,009 DOMESTIC MID CAP EQUITY FUNDS/ETF 15,676 ISHARES CORE S&P MIDCAP 400 ETF 117.93 1,848,623 283.08 4,437,562 12.19 NA EMERGING MARKET FUNDS/ETF 45,198 ISHARES ETF CORE MSCI EMERGING MKTS 52.97 2,394,158 59.86 2,705,552 7.43 NA 2 Page 33 Portfolio Appraisal CITY OF KENAI PERMANENT FUNDS December 31, 2021 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity FNMA & FHLMC 7,061 FHLMC POOL G14203 104.56 7,383 105.25 7,431 0.02 282 24 -0.27 4.000% Due 04-01-26 71,796 FG POOL C91270 105.67 75,868 107.12 76,910 0.21 3,231 269 1.03 4.500% Due 10-01-29 75,338 FG POOL J30401 101.30 76,315 105.62 79,572 0.22 2,260 188 1.00 3.000% Due 01-01-30 75,857 FG POOL G16255 99.70 75,632 104.26 79,089 0.22 1,896 158 1.30 2.500% Due 07-01-32 96,850 FR SB8503 Mtge 102.81 99,574 102.68 99,446 0.27 1,937 32 1.33 2.000% Due 08-01-35 76,682 FNCL POOL 995373 106.72 81,834 110.45 84,693 0.23 3,451 288 2.14 4.500% Due 02-01-39 100,015 FR RB5095 MTGE 103.84 103,852 101.61 101,624 0.28 2,000 33 1.73 2.000% Due 01-01-41 194,328 FN POOL AJ1405 104.48 203,042 109.81 213,393 0.59 7,773 648 2.01 4.000% Due 09-01-41 99,004 FN MA4475 Mtge 103.58 102,547 103.25 102,219 0.28 2,475 41 1.84 2.500% Due 11-01-41 108,299 FN POOL AT2324 100.20 108,519 105.97 114,766 0.32 3,249 54 1.83 3.000% Due 01-01-43 168,239 FG POOL V80057 100.23 168,633 106.56 179,274 0.49 5,047 421 1.86 3.000% Due 05-01-43 109,221 FN POOL AL3180 100.20 109,443 105.95 115,715 0.32 3,277 273 1.87 3.000% Due 05-01-43 102,477 FG POOL G08722 102.09 104,615 106.93 109,578 0.30 3,587 299 2.08 3.500% Due 09-01-46 39,605 FN AS8483 102.95 40,774 105.32 41,710 0.11 1,188 99 1.98 3.000% Due 12-01-46 69,071 FN POOL BD2453 99.89 68,995 105.60 72,936 0.20 2,072 173 1.98 3.000% Due 01-01-47 188,112 FN POOL AS8810 102.04 191,948 106.63 200,593 0.55 6,584 549 2.10 3.500% Due 02-01-47 61,399 FN POOL MA2930 103.56 63,586 107.59 66,058 0.18 2,456 205 2.42 4.000% Due 03-01-47 55,815 FG G61893 101.14 56,452 104.92 58,561 0.16 1,674 140 1.98 3.000% Due 07-01-47 28,097 FN MA3276 105.75 29,713 106.01 29,787 0.08 983 82 2.12 3.500% Due 02-01-48 52,359 FN MA3305 103.02 53,938 105.80 55,398 0.15 1,833 153 2.15 3.500% Due 03-01-48 3 Page 34 Portfolio Appraisal CITY OF KENAI PERMANENT FUNDS December 31, 2021 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity 16,931 FN POOL MA3638 103.09 17,455 106.34 18,004 0.05 677 56 2.50 4.000% Due 04-01-49 46,722 FR RA1343 104.69 48,912 104.53 48,838 0.13 1,402 117 2.11 3.000% Due 09-01-49 28,246 FN MA3834 101.90 28,782 103.68 29,285 0.08 847 71 2.11 3.000% Due 11-01-49 30,084 FN MA3871 101.91 30,657 103.64 31,179 0.09 903 75 2.11 3.000% Due 12-01-49 37,652 FR QA5517 102.31 38,523 103.87 39,109 0.11 1,130 94 2.11 3.000% Due 12-01-49 32,278 FN MA3960 102.31 33,024 103.65 33,458 0.09 968 81 2.25 3.000% Due 03-01-50 61,879 FANNIE MAE POOL 104.98 64,963 102.12 63,191 0.17 1,547 129 2.08 2.500% Due 05-01-50 125,765 FANNIE MAE POOL 105.11 132,191 102.51 128,919 0.35 3,144 262 2.08 2.500% Due 08-01-50 92,240 FN CA7738 MTGE 105.64 97,443 102.12 94,196 0.26 2,306 192 2.08 2.500% Due 11-01-50 102,775 FN MA4237 MTGE 103.73 106,613 99.78 102,550 0.28 2,056 34 1.99 2.000% Due 01-01-51 230,824 FN BR1668 Mtge 99.54 229,751 99.78 230,319 0.63 4,616 77 2.01 2.000% Due 03-01-51 234,866 FR RA5041 Mtge 99.49 233,664 99.78 234,352 0.64 4,697 78 2.01 2.000% Due 04-01-51 293,716 FR QC4235 Mtge 102.31 300,508 102.12 299,945 0.82 7,343 122 2.10 2.500% Due 07-01-51 Accrued Interest 5,516 0.02 3,185,147 3,247,613 8.92 5,516 INTERNATIONAL EQUITY FUNDS/ETF 56,229 ISHARES ETF CORE MSCI EAFE 66.29 3,727,678 74.64 4,196,933 11.53 NA DOMESTIC LARGE CAP EQUITY FUNDS/ETF 3,140 FLEXSHARES QUAL DIV ETF 40.53 127,261 61.34 192,608 0.53 NA 17,373 SPDR S&P 500 ETF 210.23 3,652,250 474.96 8,251,480 22.67 NA 3,779,510 8,444,088 23.20 REAL ESTATE & INFRASTRUCTURE 21,409 FLEXSHAR STX GLOBAL BROAD INF ETF 50.57 1,082,581 57.35 1,227,828 3.37 NA 4 Page 35 Portfolio Appraisal CITY OF KENAI PERMANENT FUNDS December 31, 2021 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity 7,041 JPMORGAN BETABUILDERS MSCI US REIT ETF 81.50 573,820 111.06 781,973 2.15 NA 1,656,401 2,009,801 5.52 DOMESTIC SMALL CAP EQUITY FUNDS/ETF 19,263 ISHARES S&P SMALLCAP 600 INDEX ETF 50.32 969,387 114.51 2,205,806 6.06 NA U.S. TREASURY 50,000 US TREASURY NOTES 100.02 50,010 99.93 49,965 0.14 62 26 0.24 0.125% Due 07-31-22 110,000 US TREASURY NOTES 99.96 109,953 99.54 109,493 0.30 137 35 0.50 0.125% Due 03-31-23 20,000 US TREASURY NOTES 100.00 19,999 99.28 19,855 0.05 25 12 0.60 0.125% Due 07-15-23 180,000 US TREASURY NOTES 99.48 179,072 99.09 178,355 0.49 225 67 0.67 0.125% Due 09-15-23 90,000 US TREASURY NOTE 99.75 89,779 99.00 89,100 0.24 112 24 0.69 0.125% Due 10-15-23 150,000 US TREASURY NOTES 99.41 149,109 101.68 152,520 0.42 2,437 417 0.70 1.625% Due 10-31-23 200,000 US TREASURY NOTES 99.53 199,055 99.00 197,992 0.54 750 161 0.82 0.375% Due 04-15-24 180,000 US TREASURY NOTES 99.86 179,740 98.64 177,547 0.49 450 58 0.83 0.250% Due 05-15-24 170,000 US TREASURY NOTES 102.28 173,871 101.57 172,669 0.47 2,550 224 0.95 1.500% Due 11-30-24 75,000 US TREASURY NOTES 99.71 74,780 105.71 79,280 0.22 2,062 6 1.08 2.750% Due 06-30-25 20,000 US TREASURY NOTES 100.16 20,032 97.00 19,400 0.05 50 21 1.11 0.250% Due 07-31-25 75,000 US TREASURY NOTES 95.63 71,726 101.68 76,257 0.21 1,219 158 1.23 1.625% Due 05-15-26 185,000 US TREASURY NOTES 102.37 189,387 101.70 188,151 0.52 3,006 264 1.27 1.625% Due 11-30-26 200,000 US TREASURY NOTES 95.49 190,988 94.98 189,962 0.52 750 314 1.31 0.375% Due 07-31-27 100,000 US TREASURY NOTES 99.59 99,590 99.11 99,109 0.27 1,250 321 1.40 1.250% Due 03-31-28 160,000 US TREASURY NOTES 102.38 163,808 111.15 177,843 0.49 5,000 649 1.42 3.125% Due 11-15-28 5 Page 36 Portfolio Appraisal CITY OF KENAI PERMANENT FUNDS December 31, 2021 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity 20,000 US TREASURY NOTES 101.74 20,348 108.11 21,621 0.06 525 198 1.42 2.625% Due 02-15-29 10,000 US TREASURY NOTES 100.79 10,079 93.50 9,350 0.03 62 8 1.45 0.625% Due 05-15-30 20,000 US TREASURY NOTE 99.73 19,945 93.26 18,652 0.05 125 47 1.46 0.625% Due 08-15-30 125,000 US TREASURY NOTES 97.64 122,046 95.07 118,842 0.33 1,094 142 1.47 0.875% Due 11-15-30 340,000 US TREASURY NOTE 99.32 337,674 97.05 329,973 0.91 3,825 1,445 1.47 1.125% Due 02-15-31 125,000 US TREASURY NOTES 100.89 126,113 101.27 126,582 0.35 2,031 264 1.48 1.625% Due 05-15-31 125,000 US TREASURY NOTES 127.11 158,890 131.80 164,751 0.45 4,844 1,830 1.85 3.875% Due 08-15-40 75,000 US TREASURY NOTES 96.42 72,316 96.95 72,715 0.20 1,312 496 1.94 1.750% Due 08-15-41 95,000 US TREASURY NOTES 102.98 97,832 120.46 114,438 0.31 2,731 355 1.91 2.875% Due 05-15-49 15,000 US TREASURY NOTES 100.74 15,111 84.92 12,738 0.03 187 24 1.94 1.250% Due 05-15-50 115,000 US TREASURY NOTES 96.64 111,133 93.17 107,143 0.29 1,869 243 1.93 1.625% Due 11-15-50 50,000 US TREASURY NOTES 100.88 50,439 101.94 50,969 0.14 1,000 378 1.91 2.000% Due 08-15-51 Accrued Interest 8,187 0.02 3,102,826 3,133,460 8.61 8,187 TOTAL PORTFOLIO 26,542,136 36,400,142 100 242,190 46,585 6 Page 37 PERFORMANCE HISTORY GROSS OF FEES CITY OF KENAI PERMANENT FUNDS 711522558 Percent Return Per Period Time Period Total Account Blend Fixed Income BLOOMBERG AGG BENCH Domestic Large Cap Equity S&P 500 LARGE CAPS BENCH Domestic Mid Cap Equity S&P 400 MIDCAP BENCH Domestic Small Cap Equity S & P 600 SMALL CAPS BENCH Emerging Market Equity MSCI EAFE Index Emerging Market Equity MSCI EMERGING MARKET BENCH Real Estate S&P US REIT BENCH STOXX INFRA 12-31-20 to 01-31-21 0.06 -0.02 -0.66 -0.72 -1.00 -1.01 1.49 1.50 6.17 6.29 N/A -1.07 2.89 3.07 -1.01 0.15 -1.61 01-31-21 to 02-28-21 1.55 1.55 -1.38 -1.44 2.47 2.76 6.16 6.80 7.26 7.65 N/A 2.24 -0.55 0.76 1.62 3.96 1.15 02-28-21 to 03-31-21 2.13 1.74 -0.89 -1.25 4.58 4.38 4.72 4.67 3.56 3.33 N/A 2.30 -0.57 -1.51 5.04 4.43 5.01 03-31-21 to 04-30-21 2.91 2.89 0.72 0.79 5.26 5.34 4.41 4.50 1.85 2.04 N/A 3.01 1.72 2.49 4.77 8.04 3.16 04-30-21 to 05-31-21 1.05 1.04 0.23 0.33 0.66 0.70 0.29 0.20 2.08 2.08 N/A 3.26 1.77 2.32 1.37 0.93 1.32 05-31-21 to 06-30-21 0.49 0.51 0.55 0.70 2.20 2.33 -1.12 -1.02 0.49 0.33 N/A -1.13 1.31 0.17 -0.36 2.66 -1.43 06-30-21 to 07-31-21 0.50 0.43 0.90 1.12 2.43 2.38 0.35 0.34 -2.41 -2.39 N/A 0.75 -5.64 -6.73 2.09 4.87 0.73 07-31-21 to 08-31-21 1.36 1.49 -0.17 -0.19 2.93 3.04 1.99 1.95 1.91 2.02 N/A 1.76 1.37 2.62 1.82 1.87 2.05 08-31-21 to 09-30-21 -2.88 -2.82 -0.67 -0.87 -4.66 -4.65 -4.01 -3.97 -2.38 -2.43 N/A -2.90 -3.64 -3.97 -4.96 -5.48 -4.51 09-30-21 to 10-31-21 3.17 3.07 -0.08 -0.03 6.92 7.01 5.92 5.89 3.54 3.43 N/A 2.46 1.08 0.99 5.05 7.74 3.21 10-31-21 to 11-30-21 -1.64 -1.58 0.16 0.30 -0.81 -0.69 -3.01 -2.94 -2.43 -2.29 N/A -4.65 -3.71 -4.08 -2.78 -0.67 -4.22 11-30-21 to 12-31-21 2.81 2.88 -0.26 -0.26 4.67 4.48 5.12 5.08 4.49 4.53 N/A 5.12 1.85 1.88 6.11 8.77 4.91 Date to Date 12-31-20 to 12-31-21 11.94 11.57 -1.56 -1.54 28.20 28.71 23.95 24.76 26.27 26.82 N/A 11.26 -2.50 -2.54 19.70 43.05 9.60 Page 38 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3267-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING COVID LEAVE FOR CITY EMPLOYEES THAT TEST POSITIVE FOR COVID - 19, AND AUTHORIZING THE USE OF FUNDS FROM A GRANT FROM THE STATE OF ALASKA-DEPARTMENT OF HEALTH AND SOCIAL SERVICES – DIVISION OF PUBLIC HEALTH – COVID EMERGENCY OPERATIONS CENTER TO FUND THE LEAVE. WHEREAS, the City of Kenai was awarded a grant for $326,985.32, enacted through Ordinance 3208-2021, to support COVID-19 related activities related to recovery and prevention strategies; and, WHEREAS, recent expansion of this grant allows funding to be used for leave time of employees who contract COVID-19 and are required by City policy, and CDC recommendations to be away from work due to illness; and, WHEREAS, this additional leave, to be used for employees who test positive for COVID-19, may be used by employees in lieu of their personal leave; and, WHEREAS, as the result of new variants to the virus, the State of Alaska and the United States continues to see high levels of COVID transmission among all populations; and, WHEREAS, it is in the best interest of the City to keep and promote a healthy working environment for all employees ensuring its capacity to provide essential services to the community; and, WHEREAS, addition of this leave will encourage employees to test for and stay home if they test positive for COVID-19, thereby protecting other city employees and the community from further spread; and, WHEREAS, authorizing the expansion on the use of grant funds for COVID-19 employee leave, is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That notwithstanding the provisions of Kenai Municipal Code 23.40.030 – Annual Leave, the City Manager is authorized to use funding approved through Ordinance 3208-2021, to provide leave for use by employees testing positive for COVID-19, to support the safety of employees and the public, to execute all needed grant agreements, and expend the funds in accordance with grant provisions, and this ordinance. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such Page 39 Ordinance No. 3267-2022 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: January 19, 2022 Enacted: February 2, 2022 Effective: February 2, 2022 Page 40 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Tony Prior, Fire Chief DATE: January 12, 2022 SUBJECT: Ordinance 3267-2022 COVID Leave 2022 We became aware of the ability to expand the Memorandum of Agreement (MOA) between the City of Kenai and the State of Alaska-Department of Health and Social Services Division of Public Health-COVID-19 Emergency Operations Center (DPH-EOC), to cover COVID-19 leave. This ordinance would provide leave for employees that have tested positive for COVID-19. The City Manager was given authority to approve the original MOA through Ordinance 3208- 2021, which established the mobile vaccination program that began in April of 2021. We were approved for reimbursement of up to $326,985.32, to complete this program. We have approximately $220,000 remaining in this account and do not anticipate that we will get close to utilizing all of these funds. If 50% of City employees were to test positive for COVID-19 and utilize 40 hours of the leave authorized by this ordinance, the cost to the City would be approximately $90,000 There has been a recent rise in COVID-19 cases due to newer variants that may affect our employees through illness, or exposures through close-contact. The health of our employees is vital to the daily operations of the City, as well as the health of community members that we serve. One component of that health and wellness is making sure employees have adequate time to isolate, quarantine and recover, should they test positive for COVID-19. Another is making sure our employees are not passing this virus on to co-workers or the public they come in contact with. In following CDC guidelines, employees will need to quarantine and isolate for at least 5 days if they test positive for COVID-19, potentially resulting in employees taking 40 hours of leave time. These 5 days are focused on the time that the individual is the most infectious, and should stay away from others to minimize the spread of this virus. Another concern is employees may not be getting a test when they are having 1 or 2 symptoms for fear of a positive result, resulting in personal leave time used during the required isolation/quarantine period. We are trying to be as consistent as possible as we move forward in our response to COVID-19 and we have updated our policies following CDC’s updated guidelines. https://www.cdc.gov/coronavirus/2019-ncov/if-you-are-sick/quarantine-isolation- Page 41 Page 2 of 2 background.html Using funding allowed by this grant, to provide additional leave to employees, will encourage them to test for and stay home if they test positive for COVID-19., thereby protecting other city employees and the community from further spread. We have an amazing group of people working for the City that are truly our greatest asset, and doing everything we can to keep them healthy and productive will maintain the outstanding service we provide to our community. Your consideration is appreciated. Page 42 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3267-2022 (SUBSTITUTE) AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING COVID LEAVE FOR CITY EMPLOYEES THAT TEST POSITIVE FOR COVID-19, AND AUTHORIZING THE USE OF FUNDS FROM A GRANT FROM THE STATE OF ALASKA - DEPARTMENT OF HEALTH AND SOCIAL SERVICES – DIVISION OF PUBLIC HEALTH – COVID-19 EMERGENCY OPERATIONS CENTER TO FUND THE LEAVE AND COVID-19 TESTING. WHEREAS, the City of Kenai was awarded a grant for $326,985.32, enacted through Ordinance 3208-2021, to support COVID-19 related activities related to recovery and prevention strategies; and, WHEREAS, recent expansion of this grant allows funding to be used for leave time of employees who contract COVID-19 and are required by City policy and CDC recommendations to be away from work due to illness; and, WHEREAS, this additional leave, to be used for employees who test positive for COVID-19, may be used by employees in lieu of their personal leave; and, WHEREAS, as the result of new variants to the virus, the State of Alaska and the United States continues to see high levels of COVID transmission among all populations; and, WHEREAS, it is in the best interest of the City to keep and promote a healthy working environment for all employees ensuring its capacity to provide essential services to the community; and, WHEREAS, addition of this leave will encourage employees to test for and stay home if they test positive for COVID-19, thereby protecting other City employees and the community from further spread; and, WHEREAS, due to the recent near exponential growth of the omicron variant and the increasing number of employees impacted by the virus, temporary COVID-19 employee leave will be provided retroactively to January 20, 2022; and, WHEREAS, authorizing the expansion on the use of grant funds for COVID-19 employee leave, is in the best interest of the City; and, WHEREAS, placing reasonable expenditure limits on these funds, ensures efficient use of grant funds. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Page 43 Ordinance No. 3267-2022 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 1. That notwithstanding the provisions of Kenai Municipal Code 23.40.030 – Annual Leave, the City Manager is authorized to use funding approved through Ordinance 3208-2021, not to exceed $110,000, to provide leave for use by employees testing positive for COVID-19 beginning January 20, 2022 to support the safety of employees and the public, to execute all needed grant agreements, and expend the funds in accordance with grant provisions, and this ordinance. Section 2. That the City Manager is authorized to use funding approved through Ordinance 3208-2021, not to exceed $50,000, to provide COVID-19 testing for City employees and immediate family members only unless needed for emergency overflow if local testing facilities are overwhelmed. 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 2nd day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: January 19, 2022 Enacted: February 2, 2022 Effective: February 2, 2022 Page 44 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Paul Ostrander, City Manager DATE: January 25, 2022 SUBJECT: Substitute Ordinance 3267-2022 – Authorizing COVID Leave This substitute ordinance makes several amendments to the original ordinance. Because of the significant increase in COVID cases in our community and within our organization due to the Omicron variant, it became apparent prior to introduction of this ordinance that the availability of COVID leave immediately after introduction was necessary to keep our employees healthy and to continue to provide essential services. This substitute amends the original ordinance to make COVID leave available retroactively, beginning on January 20, 2022. Additionally, Council Member Winger suggested that the amount of grant funds that would be expended on COVID leave be capped at $110,000, and that the costs associated with testing also be authorized to be paid for out of these grant funds and capped at $50,000. These changes are incorporated into this substitute and are appropriate amendments that both expand our ability to effectively use these grant funds and also put reasonable restrictions on the amount of grant funds that can be utilized. This Ordinance is needed to protect public health, safety and welfare. Your consideration is appreciated. Page 45 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3268-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER AND SEWER SPECIAL REVENUE FUND AND AUTHORIZING A PURCHASE ORDER INCREASE TO ALASKA WASTE FOR SLUDGE DISPOSAL SERVICES AT THE WASTE WATER PLANT. WHEREAS, the Waste Water Plant is now six months into a new service agreement with Alaska Waste to provide dumpster services including the hauling of sludge to the landfill; and, WHEREAS, the Central Peninsula Landfill directly bills the carrier bringing sludge into the landfill, as a result the City is no longer being billed by the Borough directly for the disposal costs; and, WHEREAS, Purchase Order 122966 to the Borough in the amount of $28,500 may now be reduced to $10,000 with the balance reverting back into the department’s operational budget; and, WHEREAS, the $18,500 in disposal fees, which were previously paid directly to the Kenai Peninsula Borough, will now be paid to and must be added to Alaska Waste’s Purchase Order 123019; and, WHEREAS, additional appropriated funds in the amount of $18,500 are needed to allow staff to further reduce volumes within the digester, which will result in additional waste being hauled to the landfill; and, WHEREAS, an increase to Alaska Wastes Purchase Order 123019 of $37,000, from $30,000 to $67,000, will be funded by the $18,500 reduction in the Borough’s Purchase Order as well as the new appropriation of $18,500 included with this Ordinance; and, WHEREAS, approval of this Ordinance is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the Administration is authorized to increase Purchase Order 123019 to Alaska Waste from $30,000 to $67,000 to provide waste hauling services for the Waste Water Treatment Plant. Section 2. That the estimated revenues and appropriations be increased as follows: Water and Sewer Special Revenue Fund: Increase Estimated Revenues – Appropriation of Fund Balance $18,500 Page 46 Ordinance No. 3268-2022 Page 2 of 2 Increase Appropriations – Waste Water Treatment Plant - Professional Services $18,500 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: January 19, 2022 Enacted: February 2, 2022 Effective: February 2, 2022 Page 47 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Director of Public Works DATE: January 11, 2022 SUBJECT: Ordinance 3268-2022 This Ordinance is to consolidate all fees associated with the disposal of Waste Water Sludge from the Treatment Plant and to provide additional funding to get through the current fiscal year. Council may recall City staff previously hauled sludge to the landfill utilizing a city owned dump truck. That truck was removed from service in July due to needed repairs beyond the reasonable value of the truck. As a result a professional services agreement was sought and Alaska Waste was the winning proposer for the work. The original purchase order issued to them only covered the hauling of the sludge to the landfill, we are now modifying that purchase order to include the disposal fees payable to Central Peninsula Landfill, and the City will no longer be paying the Landfill directly. As a result the current Purchase Order to the Kenai Peninsula Borough may be reduced from $28,500 to $10,000. We are requesting Alaska Waste’s Purchase Order is increased from $30,000 to $67,000 to cover the inclusion of the disposal fees. An additional appropriation of $18,500 is necessary to allow sufficient budget to get through the remainder of the fiscal year. As of January 1, 2022 the department has incurred $37,434.25 in fees associated with the hauling and disposal of sludge. The department continues to evaluate the cost and benefits with utilization of this service. Once the new screw press is installed later this summer and has been operational for six months staff should have sufficient data at that time to make a determination on whether continuing with the disposal service or purchasing of a new dump truck is in the best interest of the City. Photo below shows the dumpsters in place. The smaller container shows the separation of the screenings which are very wet and previously added weight to the sludge. The services being provided are working as anticipated. Council’s approval is respectfully requested. Page 48 Page 2 of 2 . Page 49 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3269-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 7.30.020, LAND SALE PERMANENT FUNDS, TO IDENTIFY THE CIRCUMSTANCES AND LIMITATION ON THE USE OF DERIVATIVE INVESTMENTS AND TO ADD TWO NEW CLASSES OF ASSETS TO THE LIST OF AUTHORIZED INVESTMENTS AND TO CODIFY THE APPLICABLE BENCHMARK BY WHICH THESE ASSET CLASSES WILL BE MEASURED AND EVALUATED. WHEREAS, derivative investments are investments whose value is dependent upon the value of another asset; and, WHEREAS, the most common examples of derivative investments are futures, forwards, options, and swaps; and, WHEREAS, the use of derivatives, as an investment management tool, is common, accepted, and continually evolving along with the world’s markets; and, WHEREAS, to ban the use of derivatives as a tool could adversely impact the portfolio’s return but because of inherent risk of derivatives, the adoption of guidelines for their use is both necessary and prudent; and, WHEREAS, limiting the use of derivatives to situations where the embedded leverage created by the derivative is fully collateralized, and the net exposure does not exceed the assets value, is needed to reduce the risk to the portfolio; and, WHEREAS, Kenai Municipal Code section 7.30.020 (b) identifies the allowable investments and their associated benchmarks for the City’s permanent funds; and, WHEREAS, consistent with the City’s portfolio management process of analysis, adoption and review, the City’s investment advisors are recommending adding two new asset classes to the list of authorized investments; and, WHEREAS, the addition of U.S. Corporate High Yield Bonds, debt issued by companies with debt ratings below investment grade, is recommended because of projected lower risk adjusted returns as compared to international and emerging market equities; and, WHEREAS, the addition of Alternative Beta, investments and investment strategies designed to produce returns that do not correlate with the return of bonds or equities, is an opportunity to increase the diversification of a portfolio with little or no impact to the portfolio’s return; and, _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Page 50 Ordinance No. 3269-2022 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] WHEREAS, the projected impact to the portfolio’s expected return of adding U.S. Corporate High Yield Bonds and Alternative Beta as authorized investments is zero, but the expected annual risk of the portfolio is reduced from 11.0% to 10.1%; and, WHEREAS, consistent with the goal of achieving the highest rate of return for the lowest level of risk, reducing the portfolio’s overall risk with no impact to its expected return is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section of the Kenai Municipal Code: That Kenai Municipal Code, Section 7.30.020 Investments, is hereby amended as follows: 7.30.020 Investments. (a) The Land Sale Permanent Funds shall be managed by the Finance Director, with the following conditions: (1) The City will contract for the management of the investments for each Land Sale Permanent Fund with one (1) or more professional investment managers with experience handling institutional endowment investments subject to Council approval. (2) The Land Sale Permanent Funds shall be invested in such types of income producing investments as limited by subsection (b) of this section, Authorized Investments for the Land Sale Permanent Funds. The investments for each Land Sale Permanent Fund shall be approved by resolution annually, usually during the City budget process, in the form of an asset allocation plan, with each Land Sale Permanent Fund following the same asset allocation plan. The asset allocation plan shall have specific categories of investments for the funds with percentage targets that allow for reasonable fluctuations above and below the target percentage. The plan will establish benchmarks for evaluating the performance of each investment manager and asset classification. Investments shall be managed such that the target ranges of the asset allocation plan are adhered to. (3) Investments of the Land Sale Permanent funds will take a conservative posture on derivative securities by recognizing that derivatives may be utilized within investment vehicles as a portfolio management tool to create or enhance exposure to an asset class or implementation strategy while requiring that any embedded leverage created by their use be fully collateralized. Net exposure exceeding the asset value of the investment vehicle is prohibited. Exposure must be net long at all times. ([3]4) All income derived from investment of each Land Sale Permanent Fund, including interest income, realized gains, and undistributed earnings, can be distributed or reinvested into the respective Land Sale Permanent Fund and shall be invested in accordance with subsection (b) of this section, Authorized Investments for the Land Sale Permanent Funds. ([4]5) Appropriations from the Airport Land Sale Permanent Fund may be made as follows: Page 51 Ordinance No. 3269-2022 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (i) In any fiscal year, the amount available for appropriation for airport operations and capital needs will be based upon the five (5) year average of the fund’s calendar year end market value. An amount not to exceed three and four-fifths percent (3.8%) of the five (5) year average market value may be distributed if the average market value is less than the fund’s inflation adjusted principal balance. An amount not to exceed four and one-fifth percent (4.2%) of the five (5) year average market value may be distributed if the average market value is greater than the fund’s inflation adjusted principal balance. ([5]6) Appropriations from the General Fund Land Sale Permanent Fund shall be limited to the lesser of the cumulative earnings at calendar year end for the fund or four percent (4%) of the fund’s fair market value as of December 31st of each year. “Cumulative earnings” is defined as the market value at calendar year end minus the fund’s inflation adjusted principal balance. (b) Authorized Investments for the Land Sale Permanent Funds. (1) Investments authorized by KMC 7.22.030. (2) Corporate obligations of investment-grade quality as recognized by a nationally recognized rating organization. If, after purchase, these obligations are downgraded below investment grade, the obligations shall be sold in an orderly manner within ninety (90) days of downgrading. (3) Domestic equities which, taken as a whole, attempt to mirror the characteristics or replicate the Standard and Poor’s 500 Index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual funds and exchange traded funds (ETFs). (4) Domestic equities which, taken as a whole, attempt to replicate the Standard and Poor’s 400 Mid-Cap Index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual funds and exchange traded funds (ETFs). (5) Domestic equities which, taken as a whole, attempt to replicate the Standard and Poor’s 600 Small-Cap Index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual funds and exchange traded funds (ETFs). (6) International equities which, taken as a whole, attempt to replicate the Financial Times Stock Exchange Developed ex North America Index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual funds and exchange traded funds (ETFs). (7) Equities which, taken as a whole, attempt to replicate the universe of domestic real estate investment trusts as represented by the Standard and Poor’s REIT composite index or another index of similar characteristics and approved by resolution of the Page 52 Ordinance No. 3269-2022 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual funds and exchange traded funds (ETFs). (8) Emerging market equities which, taken as a whole, attempt to replicate the Financial Times Stock Exchange Emerging Index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including both mutual funds and exchange traded funds (ETFs). (9) Global infrastructure equities which, taken as a whole, attempt to replicate the STOXX Global Broad Infrastructure Index, or a substantially similar index, including both mutual funds and exchange traded funds. (10) Investment Grade Domestic bonds which, taken as a whole, attempt to mirror the characteristics or replicate the Bloomberg Barclays Aggregate bond index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, including individual securities, mutual funds and exchange traded funds (ETFs). (11) High Yield Domestic bonds which, taken as a whole, attempt to mirror the characteristics or replicate the Bloomberg Barclays U.S. Corporate High Yield Very Liquid bond index or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, utilizing mutual funds and/or exchange traded funds (ETFs). (12) Alternative beta funds which, taken as a whole, attempt to provide systematic exposure to trading strategies included in, or similar to, those within the Wilshire Liquid Alternatives Index, or another index of similar characteristics and approved by resolution of the Council as a component of the annual Land Sale Permanent Funds Asset Allocation Plan, utilizing mutual funds and/or exchange traded funds (ETFs) that adhere to the limitations identified in 7.30.020(a)(3). (c) Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions. Such employees and officers shall disclose to the City Manager any material financial interests in financial institutions that conduct business with the City and such information shall be kept confidential to the extent otherwise allowed by law. Employees and officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of purchases and sales. A “material financial interest” in an entity is a financial interest of any kind, which, in view of all the circumstances, is substantial enough that it would, or reasonably could, affect the employee’s or officer’s judgment with respect to transactions to which the entity is a party. (d) The Finance Director shall submit to the City Council a quarterly investment report that summarizes recent and anticipated market conditions and that describes the City’s investment portfolio in terms of transactions during the quarter, maturities, risk characteristics, and investment return compared with both benchmark performance returns and with the City’s budgetary expectations. Page 53 Ordinance No. 3269-2022 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (e) The Finance Director shall establish custody and safekeeping procedures with regard to all investments authorized by this chapter. All such investment securities, or their related collateral securities, shall be either held by the City or by a custodial agent for the City. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: January 19, 2022 Enacted: February 2, 2022 Effective: March 4, 2022 Page 54 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 11, 2022 SUBJECT: To Recommend Enactment of Ordinance 3269-2022 Ordinance 3269-2022, if enacted, will amend Kenai Municipal Code 7.30.020 to add a new paragraph which identifies the circumstances and limitations on the use of derivative investments as a tool in managing the portfolio and will add two new asset classes to the list of authorized investments for the City’s Land Sale Permanent Funds. The City’s investment advisor, Alaska Permanent Capital Management (APCM), is recommending these additions, not to enhance the portfolio’s returns but to reduce its projected volatility (risk). While APCM recommends these changes, the overall impact to the portfolio is relatively small. Based upon APCM’s knowledge and expertise, the administration recommends Council consider enacting these changes but should not consider them absolutely necessary. Derivative investments are investments whose value is based upon the value of another asset. The most common examples of derivatives are futures, forwards, options and swaps. The use of derivatives is a tool which can create or enhance exposure to an asset class or investment implementation strategy. The use of derivatives and derivative strategies is common and growing and in order to maintain the conservative nature of the City’s Land Sale Permanent Fund investments, it is recommended to place some limitations upon their use. Often derivatives are utilized to multiply the impact of a move in the market by applying leverage, borrowing, to increase exposure. Applying leverage significantly increase risk. The recommended language will limit the use of derivatives to situations where embedded leverage must be fully collateralized and the net exposure may not exceed the value of the investment vehicle. Exposure must be net long at all times. In addition to applying side boards to the use of derivative investments, Ordinance 3269-2022 will authorize the use of two new asset classes to the list of authorized investments for the City’s Land Sale Permanent Funds, U.S. Corporate High Yield Bonds and Alternative Beta. The addition of U.S. Corporate High Yield Bonds, debt issued by companies with debt ratings below investment grade, is being recommended because of its projected lower risk adjusted returns as compared to international and emerging market equities. Bonds are higher in the capital hierarchy when compared to common stock and are projected to provide similar returns in Page 55 Page 2 of 2 the coming years. The addition of U.S. Corporate High Yield Bonds will lower the overall risk of the portfolio without negatively impacting its projected return. The necessity to analyze the credit of the issuing company when investing in high yield bonds adds complexity and additional risk. To mitigate this risk the authorization to invest in high yield bonds will be limited to mutual and/or exchange traded funds (ETFs) of High Yield Domestic bonds. This limitation will eliminate the portfolio’s exposure to the debt of individual or small groups of companies and the necessity to analyze their creditworthiness. The addition of Alternative Beta, investments and investment strategies designed to produce returns that do not correlate with the return of bonds or equities, is an opportunity to increase the diversification of a portfolio with little or no impact to the portfolio’s return. The usefulness of an asset class that does not closely correlate with bonds or equities is increased in times where the return of bonds and equities are likely to positively correlate, such as times of high inflation. Adding Alternative Beta as an asset class will reduce the portfolio’s projected risk without negatively impacting its projected returns. The projected impact to the portfolio’s expected return of adding U.S. Corporate High Yield Bonds and Alternative Beta as authorized investments is zero, but the expected annual risk of the portfolio is reduced from 11.0% to 10.1%. This is consistent with the City’s goal of achieving the highest rate of return for the lowest level of risk in our investments. Page 56 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2022-08 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DESIGNATING THE INVESTMENT AND ALLOCATION PLAN FOR THE CITY’S PERMANENT FUNDS AND ESTABLISHING APPROPRIATE BENCHMARKS TO MEASURE PERFORMANCE FOR CALENDAR YEAR 2022. WHEREAS, pursuant to KMC 7.30.020 (a) (2) the Council of the City of Kenai annually approves an Asset Allocation Plan for investment of the City’s Permanent Funds; and, WHEREAS, KMC 7.30.020 (b) permits investment of the Permanent Funds in various asset classes and the Council believes that establishing asset allocation criteria for these various asset classes is in the best interest of the City of Kenai; and, WHEREAS, the annually approved Asset Allocation Plan provides benchmarks to measure investment performance. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1. That the Council adopts the Asset Allocation Plan for calendar year 2022 as follows: The Asset Allocation Plan and Target Weightings with range restrictions are: ASSET CLASS TARGET % WEIGHTING RANGE % Cash 3 0-10 Fixed Income: Investment Grade Domestic Bonds 26 16-36 High Yield Domestic Bonds 4 0-8 Domestic Equity: Large-Cap Domestic Equity 22 12-32 Mid-Cap Equities 10 0-18 Small-Cap Equities 5 0-10 International Emerging Markets 5 0-10 International Equity 8 4-16 Real-estate equities 2 0-4 Infrastructure equities 5 0-10 Alternative Beta 10 0-15 Page 57 Resolution No. 2022-08 Page 2 of 3 Section 2. The performance of the Fund and investment managers will be measured as follows: Performance measurement of the Cash allocation will be measured against the Target weighting, using the Citi Group 90 Day T-Bill Index as the benchmark. Performance measurement of the Investment Grade Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Aggregate Bond Index for the benchmark. Performance measurement of the High Yield Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Corporate High Yield Very Liquid Bond index for the benchmark. Performance measurement of the Large-Cap Domestic Equity allocation will be measured against the Target weighting, using the Standard & Poor’s 500 Index for the benchmark. Performance measurement of the Mid-Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor’s 400 Mid-Cap Index as the benchmark. Performance measurement of the Small-Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor’s 600 Small-Cap Index as the benchmark. Performance measurement of the International Emerging Markets allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Emerging Markets index as the benchmark. Performance measurement of the International Equity allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) index for the benchmark. Performance measurement of the Real-Estate Equities allocation will be measured against the target weighting, using the Standard & Poor’s US REIT Index as the benchmark. Performance measurement of the Infrastructure Equities allocation will be measured against the target weighting, using the STOXX Global Broad Infrastructure Index as the benchmark. Performance measurement of the Alternative Beta allocation will be measured against the target weighting, using the Wilshire Liquid Alternatives Index as the benchmark. Page 58 Resolution No. 2022-08 Page 3 of 3 Section 3. That this Resolution takes effect on March 4th 2022. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of February 2021. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________ Page 59 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 26, 2022 SUBJECT: Resolution No. 2022-08 – The Investment Allocations Of And Establishing Appropriate Benchmarks To Measure Performance Of The City’s Permanent Funds For Calendar Year 2022. Pursuant to KMC 7.30.020 the Council annually designates by resolution, the authorized investments and allocation plan for the City’s Permanent Funds. Resolution No. 2022-08 establishes the allocation plan and evaluation benchmarks to be used for calendar year 2022. This year’s allocation differs from last year’s plan. Ordinance 3269-2022 increased the portfolio’s authorized investments to add High Yield Domestic Bonds and Alternative Beta as new asset classes. This new portfolio is projected to yield 6.15% on average, a 0.03% decrease over the prior year’s portfolio, however the new portfolio is projected to have an annual risk of 10.09% compared to the prior portfolio’s risk of 11.02%. The new portfolio represents a decrease of 0.93% of portfolio risk, an 8.43% reduction of overall risk while only sacrificing 0.03% of projected return. Annual risk is the variation in the expected return of the portfolio at one standard deviation, approximately 68% of all occurrences. The risk of the portfolio is doubled at two standard deviation, 95% of all occurrences. For the proposed portfolio which has an expected annual return of 6.62% and a ten-year expected return of 6.15%, 68% of the time the portfolio should annually return between (3.47)% and 16.71% and 95% of the time the portfolio should return annually between (13.56)% and 26.80% In addition to changes in the asset allocation is the addition of two new benchmarks by which the two new asset classes will be measured. The return of the High Yield Domestic Bonds allocation will be measured against the Bloomberg Barclays U.S. Corporate High Yield Very Liquid Bond index and the return of the Alternative Beta allocation will be measured against the Wilshire Liquid Alternatives Index. The following is a comparison between the 2021 asset allocation and the recommended 2022 asset allocation for your review. Page 60 Page 2 of 2 2021 2022 Asset Asset Allocation Allocation Difference Cash 5% 3% (2)% Fixed Income Domestic Investment Grade Bonds 30% 26% (4)% High Yield Domestic Bonds -% 4% 4% Total Cash and Fixed Income 35% 33% (2)% Domestic Equities US Large Cap 22% 22% -% US Mid Cap 12% 10% (2)% US Small Cap 6% 5% (1)% International Equities 12% 8% (4)% Emerging Market Equities 8% 5% (3)% Total Equities 60% 50% (10)% Alternative Investments Real Estate 2% 2% -% Infrastructure 3% 5% 2% Alternative Beta -% 10% 10% Total Alternative Investments 5% 15% 12% Total Portfolio 100% 100% -% Expected Average Annual Return 6.75% 6.62% 0.13% Expected Risk (one Standard Deviation) 11.02% 10.09% 0.93% Return Range (15.29)% to 28.79% (13.56)% to 26.80% (1.73)% to 1.99% Long-term Expected Return 6.18% 6.15% 0.03% Note: The 2021 asset allocation’s performance expectations have been updated using 2022 capital market expectations for comparison purposes. Your support for adoption of Resolution 2022-08 is respectfully requested. Page 61 City of Kenai Council Meeting Page 1 of 9 January 19, 2022 KENAI CITY COUNCIL – REGULAR MEETING JANUARY 19, 2022 – 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 January 19, 2022, 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 James Baisden Henry Knackstedt Teea Winger Glenese Pettey Deborah Sounart (via Electronic Participation) Jim Glendening A quorum was present. Also in attendance were: **Silas Thibodeau, Student Representative Paul Ostrander, City Manager Scott Bloom, City Attorney Terry Eubank, Finance Director Dave Ross, Police Chief Shellie Saner, City Clerk 3. Agenda Approval Mayor Gabriel noted the following additions to the packet: Add to item D.2. Resolution No. 2022-04 • Postponement Memo Add to item J.1. City Manager Report • Bluff Stabilization Update MOTION: Page 62 City of Kenai Council Meeting Page 2 of 9 January 19, 2022 Council Member Knackstedt MOVED to approve the agenda with the requested revisions, and to move item G.7 to the top of the agenda, and requested UNANIMOUS CONSENT. Council Member Winger SECONDED the motion. VOTE: There being no objection; SO ORDERED. 4. Oath of Office for Student Representative, Silas Thibodeau Mayor Gabriel administered the Oath of Office to Student Representative, Silas Thibodeau. 5. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda. Council Member Baisden SECONDED the motion. Council Member Winger requested to remove Ordinance No. 3267-2022 from the consent agenda. UNANIMOUS CONSENT was requested. The items on the Consent Agenda were read into the record. Mayor G abriel 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. 7. Action/Approval - Providing Input to the Alaska Department of Environmental Conservation (ADEC) on Proposed Changes to Regulations on Oil Discharge Prevention and Contingency Plans (Mayor Gabriel) John Williams summarized the history of Cook Inlet Regional Citizens Advisory Council (CIRCAC); its purpose of overseeing the production and transportation of oil in the Cook Inlet region; and explained that CIRCAC had spent years dealing with the state on proposed revisions to the Alaska Department of Environmental Conservation (ADEC) regulations, and the letter will confirm the City of Kenai’s support of CIRCAC’s position on these changes. Shaylon Cochran, CIRCAC Director of Public Outreach, explained that similar language was presented to other Kenai Peninsula coastal communities for their approval, and the importance of these communities understanding how these regulations work. Page 63 City of Kenai Council Meeting Page 3 of 9 January 19, 2022 Clarification was provided that these regulations are very technical, but the intent is to keep the level of environmental protection at a certain standard that CIRCAC has worked to maintain. MOTION: Council Member Knackstedt MOVED that Council sign the January 19, 2022 letter “Notice of Proposed Changes to Oil Prevention Requirements in ADEC Regulations” and requested UNANIMOUS CONSENT. Vice Mayor Glendening SECONDED the motion. VOTE: There being no objection; SO ORDERED. C. UNSCHEDULED PUBLIC COMMENTS Joe Rizzo provided an update on the Triumvirate Theatre project’s current status and finances, noting that they will not be breaking ground by summer 2022 due to the timelines of large foundations to whom they have applied for funding. Noted their target of $4.7 million; they hope to know by September how close to that goal they are, and that they will proceed with the engineering stage after that. D. PUBLIC HEARINGS 1. Ordinance No. 3266-2022 - Accepting and Appropriating Funds in the Airport Fund, and Accepting Two Grants From the Federal Aviation Administration Under the American Rescue Plan Act of 2021 (H.R. 1319, Public Law 117-2). (Administration) • Substitute Ordinance No. 3266-2022 MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 3266-2022. Council Member Baisden SECONDED the motion. Mayor G abriel opened the floor for public comment; there being no one wishing to be heard, the public comment period was closed. MOTION TO AMEND BY SUBSITUTE: Council Member Knackstedt MOVED to amend Ordinance No. 3266-2022 by Substitute. Vice Mayor Glendening SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There being no objection; SO ORDERED. It was noted that airport restaurants rely on air travels to pay for overhead, and this will continue the City’s efforts to help these restaurants through the pandemic. Clarification was provided that this is for concessionaires, including bar, bar lounge, restaurant and car rental agencies. The City will receive funds through the federal American Rescue Plan Act (ARPA), which will be provided to concessionaires based on formula provided by the federal government. The funds will cover losses to date and several months going forward. Page 64 City of Kenai Council Meeting Page 4 of 9 January 19, 2022 VOTE ON MAIN MOTION AS AMENDED: YEA: Knackstedt, Gabriel, Glendening, Baisden, Sounart, Pettey, Winger NAY: **Student Representative Faulkner: YEA MOTION PASSED UNANIMOUSLY. 2. Resolution No. 2022-04 - Awarding a Three Year Contract for the Purchase of Microsoft Software. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2022-04. Council Member Pettey 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. MOTION: Council Member Knackstedt MOVED to postpone Resolution No. 2022-04 to February 16, 2022. Council Member Pettey SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 3. Resolution No. 2022-05 - Adopting Goals to Guide the Preparation of the Fiscal Year 2023 Annual Budget. (Administration) MOTION: Vice Mayor Glendening MOVED to adopt Resolution No. 2022-05. Council Member Winger 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. UNANIMOUS CONSENT was requested. Appreciation was expressed for the forward-looking approach taken by Administration. Clarification was provided about how the City utilizes Consumer Price Index (CPI) information, and that these are the highest levels of inflation nationally in the last forty years which will create challenges for Administration to put together a budget that meets the City’s needs. It was noted that goals include maintaining the City’s sales and property tax rates, and adjustment for compensation of City employees. Page 65 City of Kenai Council Meeting Page 5 of 9 January 19, 2022 Administration was thanked for holding the Council work session held on January 10th, which gave Council an idea of what to expect. VOTE: There being no objection; SO ORDERED. 4. Resolution No. 2022-06 - Executing a Professional Services Agreement and Issuance of a Purchase Order for Design Services for the Recreation Center Improvements Project. (Administration) MOTION: Council Member Winger MOVED to adopt Resolution No. 2022-06. Vice Mayor Glendening 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. Clarification was provided that the improvements will include a roof replacement, and upgrades to the HVAC and hot water systems. It was noted that this is the first step in a significant amount of improvements needed at the Recreation Center. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 5. Resolution No. 2022-07 - Accepting Funding from the U.S. Department of Health and Human Services, Provider Relief Fund through the Public Health and Social Services Emergency Fund, Provided by The Coronavirus Aid, Relief, and Economic Security (CARES) Act. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2022-07. Council Member Winger SECONDED the motion. Mayor Gabriel opened the floor for public comment. April Orth inquired what the funds can be used for, and whether there are ties if it is accepted. There being no one else wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. E. MINUTES 1. *Regular Meeting of January 5, 2022. (City Clerk) Page 66 City of Kenai Council Meeting Page 6 of 9 January 19, 2022 Approved by the consent agenda. 2. *Work Session of January 10, 2022. (City Clerk) Approved by the consent agenda. F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. 2. *Action/Approval - Purchase Orders Over $15,000. (Administration) Approved by the consent agenda. 3. Ordinance No. 3267-2022 - Authorizing COVID Leave for City Employees that Test Positive for COVID-19, and Authorizing the Use of Funds from a Grant from the State of Alaska-Department of Health and Social Services – Division of Public Health – COVID Emergency Operations Center to Fund the Leave. (Administration) MOTION: Council Member Knackstedt MOVED to introduce and set for public hearing at the February 2, 2022 City Council meeting. Council Member Winger SECONDED the motion. It was noted that City employees are increasingly impacted by COVID, prompting Administration to bring the issue of COVID leave to Council as soon as possible; It was explained that administrative leave will be provided for employees with COVID between now and this ordinance’s public hearing on February 2nd, and after enactment the ordinance can be retroactively applied for this time period. Current COVID policies and protocols for City employees were clarified. It was suggested that Administration change policies that treat vaccinated employees differently from un-vaccinated. Clarification was provided on the types of tests employees need to determine positive statues. The use of grant funds for therapeutics and Anchorage-based clinics was discussed. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 4. *Ordinance No. 3268-2022 - Increasing Estimated Revenues and Appropriations in the Water and Sewer Special Revenue Fund and Authorizing a Purchase Order Increase to Alaska Waste For Sludge Disposal Services At The Waste Water Plant (Administration) Introduced by the consent agenda and Public Hearing set for February 2, 2022. Page 67 City of Kenai Council Meeting Page 7 of 9 January 19, 2022 5. *Ordinance No. 3269-2022 - Amending Kenai Municipal Code Section 7.30:020, Land Sale Permanent Funds, to Identify the Circumstances and Limitation on the Use of Derivative Investments and to Add Two New Classes of Assets to the List of Authorized Investments and to Codify the Applicable Benchmark by Which these Asset Classes Will be Measured and Evaluated (Administration) Introduced by the consent agenda and Public Hearing set for February 2, 2022. 6. Action/Approval - Providing Direction to the City Attorney to file an Amicus Brief in United Cook Inlet Drift Association, et al. v. NMFS et al. (Administration) MOTION: Council Member Knackstedt MOVED to provide direction to the City Attorney to file an Amicus Brief in United Cook Inlet Drift Association, et al. v. NMFS et al. Vice Mayor Glendening SECONDED the motion. City Attorney Bloom updated the Council that the defendants’ representation will take no position on the City filing an amicus brief on behalf of the plaintiffs, and noted the timeline for submission. He explained that the approach would be limited to factors evaluated under the Magnusen-Stevens Act, specifically the requirement to evaluate community impact and how the City of Kenai was not consulted on this. Support was expressed for this strategy. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. H. COMMISSION / COMMITTEE REPORTS 1. Council on Aging – Council Member Knackstedt reported on the work session of January 13, 2022. Next meeting February 10, 2022. 2. Airport Commission – Council Member Baisden reported on the actions of the January 13, 2022 meeting. Next meeting February 10, 2022. 3. Harbor Commission – Council Member Pettey reported on the actions of the January 11, 2022 Special Meeting. Next meeting February 7, 2022. 4. Parks and Recreation Commission – No report. Next meeting February 3, 2022. 5. Planning and Zoning Commission – Council Member Glendening reviewed the actions of January 12, 2022 meeting. Next meeting January 26, 2022, and a work session will be held on January 20, 2022. 6. Beautification Committee – Committee Member Sounart reported on the actions of the January 6, 2022 Joint Special Meeting. Next meeting April 12, 2022. 7. Mini-Grant Steering Committee – No report. Page 68 City of Kenai Council Meeting Page 8 of 9 January 19, 2022 I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Expressed excitement for the $28 million in funding awarded to the City for the bluff stabilization project; • Met with coastal communities to discuss needs moving into the legislative session, representing the Alaska Bycatch Review Task Force; • New police officers will have a swearing-in ceremonies on January 28th at 2:00 p.m. in Council Chambers. J. ADMINISTRATION REPORTS 1. City Manager – City Manager Ostrander reported on the following: • Attended the Kenai Peninsula Economic Development District (KPEDD) Industry Outlook Forum on January 6th; thanked KPEDD for their great job and for having it in Kenai this year; • Kenai waterfront assessment study kick-off meeting was January 7th with the McKinley Group; due to the spike in COVID numbers, in-person meetings may be delayed; • Met with all City commissions involved in Land Management Plan meetings, and noted the excellent discussions and questions; • The City is applying to be a vendor with the Department of Health and Social Services new water assistance program, which will provide assistance from the State to utility members who are most vulnerable; • Talked with the Army Corps of Engineers about scheduling for the bluff erosion project, and clarified things the City needs to do to bring the project to fruition. 2. City Attorney – No report. 3. City Clerk – City Clerk Saner reported on the following • Attended all commission and committee meetings to introduce herself to all members; • The City’s agreement with Zoom is ending in March; will bring an action item to Council to renew or discontinue. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments Council Member Knackstedt welcomed Student Representative Thibodeau, and noted that the $28 million in funding for the bluff project was great news. Attended KPEDD’s Industry Outlook Forum and reported that he was very impressed. Council Member Baisden welcomed Student Representative Thibodeau and noted that this was a short Council meeting. Page 69 City of Kenai Council Meeting Page 9 of 9 January 19, 2022 Council Member Winger welcomed Student Representative Thibodeau. Noted Betty White’s birthday and online donation initiative for animal rescue organizations in her name, and reminded everyone of the Dog Park raffle. Thanked the Kenai Police Department for efficiencies in training. Vice Mayor Glendening welcomed Student Representative Thibodeau and noted that he would be traveling to Florida for medical reasons and returning in February. Student Representative Thibodeau introduced himself and thanked Council for the warm welcome. He reported on upcoming Kenai Central High School events including Spirit Week, Peach Fuzz men’s volleyball, skating night, and other upcoming sports events. Thanked Council for approving Recreation Center improvements. Council Member Pettey welcomed Student Representative Thibodeau, and thanked Mayor Gabriel for representing the community in the Alaska Bycatch Review Task Force. Expressed appreciation for the bluff project funding, and reported that she attended the KPEDD forum. Stated that she hopes that Senior Center will get a generator. Council Member Sounart welcomed Student Representative Thibodeau, congratulated Mayor Gabriel for his appointment to the Alaska Bycatch Review Task Force, and thanked City Manager Ostrander for his hard work on bluff erosion project. L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT O. INFORMATION ITEMS 1. Purchase Orders Between $2,500 and $15,000 There being no further business before the Council, the meeting was adjourned at 7:33 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of January 19, 2022. _____________________________ Michelle M. Saner, MMC City Clerk **The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. Page 70 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: FEBRUARY 2, 2022 VENDOR DESCRIPTION PERS PERS INVESTMENTS VENDOR DESCRIPTION PIPER JAFFRAY U.S. AGENCY SECURITY P IP ER JAFFRAY U .S. AGENCY SECURITY P IPER JAFFRAY U.S. AGENCY SECURITY PIPER JAFFRAY U.S. AGENCY SECURITY DEPARTMENT VAR IOUS MATURITY DATE 5/1/2023 9/25/2022 111/2023 7120/2026 ACCOUNT AMOUNT LIAB ILITY 93,460.92 AMOUNT Effect. Int. 239 ,520.96 1.46% 557,381.91 0.50% 3 ,055 ,705.39 1.46% 439,862.89 0.87% Page 71 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: FEBRUARY 2, 2022 VENDOR DESCRIPTION DEPT. INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O.# • DEPT. KIRILA FIRE TRAINING FACILITIES TRAINING EQUIP REHAB 119055 • A/P IMPS. ACCOUNT REASON FINAL ADJUSTING CHANGE ORDER #5 AMOUNT AMOUNT TOTALPOAMT ·20,265.53 2,244,296.64 Page 72 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Shellie Saner, City Clerk DATE: January 24, 2022 SUBJECT: Liquor License Renewal The following establishments submitted an application to the Alcohol and Marijuana Control Office for renewal of their liquor licenses: • Schilling Alaska, Inc. D/B/A Uptown Motel/Louie’s • Schilling Alaska, Inc. D/B/A Uptown Motel/Back Door Lounge Pursuant to KMC 2.40, a review of City accounts has been completed on the applicants and they have satisfied all obligations to the City. With the approval of Council, letters of non-objection to the liquor license renewals will be forwarded to the ABC Board and the applicants. Your consideration is appreciated. Page 73 Action History (UTC-08:00) Pacific Time (US & Canada) Submit by Meghan Thibodeau 1/5/2022 9:26:45 AM (Form Submission) Approve by Jeremy Hamilton 1/24/2022 9:02:48 AM (Fire Marshall Review) Th e task was assign ed to Jeremy Hamilton. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:26 AM Approve by Scott Curtin 1/11/2022 5:12:48 PM (Building Official Review) Th e task was assign ed to Scott Curti n. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:26 AM Approve by Dave Ross 1/5/2022 12:32:22 PM (Police Department Review) Th e task was assign ed to Dave Ross. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:26 AM Approve by Tina Williamson 1/5/2022 9:45:46 AM (Finance Asst Review) Th e task was assign ed to Ti na Wi l l i amson. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:26 AM Approve by Cindy Herr 1/5/2022 9:54:46 AM (Legal Asst Review) No monies owed in restitution or traffic citations. Th e task was assign ed to Cin dy Herr. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:26 AM Approve by Ryan Foster 1/5/2022 9:30:37 AM (Lands Review) Th e task was assign ed to Ryan Foster. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:26 AM Approve by Terry Eubank 1/5/2022 2:34:13 PM (Finance Review) Th e task was assign ed to Terry Eu ban k. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:54 AM Approve by Scott Bloom 1/5/2022 10:24:06 AM (Legal Review) Th e task was assign ed to Scott Bl oom. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:54 AM Approve by Ryan Foster 1/5/2022 9:57:03 AM (P&Z Department Review) Th e task was assign ed to Ryan Foster. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:54 AM Page 74 AMCO License Application Date Lice nse Type Lice nse e Doing Busine ss As Pre mise s Addre ss City, State Contact Lice nse e Contact Phone No.Contact Email Name Phone No.Email File Upload 1/5/2022 Establishment Information Beverage Dispensary - Tourism Schilling Alaska Inc. Uptown Motel/Louie's 47 Spur View Drive Kenai, AK Contact Information David Schilling 9072833660 dave@uptownmotel.com Additional Contact Information Duane Bannock 9072833660 duane@uptownmotel.com Documents #1859 Complete Renewal Packet with Temp.pdf 864.29KB #1859 LGB Renewal Notice.pdf 809.98KB Page 75 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 December 29, 2021 Kenai Peninsula Borough City of Kenai Via Email: cityclerk@kenai.city; mjenkins@kpb.us; jvanhoose@kpb.us; maldridge@kpb.us; ncarver@kpb.us; slopez@kpb.us jblankenship@kpb.us; cjackinsky@kpb.us Re: Notice of 2022/2023 Liquor License Renewal Application License Type: Beverage Dispensary License Number: 1859 Licensee: Schilling Alaska Inc Doing Business As: Uptown Motel/Louie’s We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Glen Klinkhart, Director amco.localgovernmentonly@alaska.gov Page 76 STATE OF ALASKA -ALCOHOLIC BEVERAGE CONTROL BOARD FORM CONTROL LICENSE NUMBER x.xxx ISSUED 12/29/2021 ABC BOARD LIQUOR LICENSE 2022 -2023 1859 LI CENSE RENEWAL APPLICATION DUE DECcMl3 ER 3 1, 202.3 (AS 04 .I I .270(b)) TEMPORARY T HIS LI CENSEEXPIRBSM ID NIG liT FEBRUARY 28 , 2024 UN LESS DATED BELOW TYPE OP LICENSE: Beverage Dispen· I I LIC ENSE FEE: $2,500.00 1106 DtB tA: Uptown Motel/Louie's 47 Spur View Drive Mail Acldre.~s: Schilling Alaska, Inc. 47 Spur View Drive Kenai, AK 99611 0 4·900 (REV 7/21) CITY I BOROUGH: Kenai K enai Peninsula Borough This lice nse ca nnot be trunsfcrred withou t pe rmission or the A l coholi c B everage Control Board l Special res triction -sec r everse side ISS UED BY ORDER OF THE AL COHOUC BEV ERAG E CONTROL BOARD ()(RECTOR TlilS LICENSE MUS1' IU: POSTED IN A VISIB LE Pl.AC!': ON TM B PRGM ISES STATE OF ALASKA -AL COHOLIC BEVERAGE CONTROL BOARD FORM CO NTROL LICENSE NUMBER xxxx ISSUED 12/29/2021 ABC BOARD LIQUOR LICENSE 2022 .. 2023 1859 LI CENSE RE NEWALArPLI CATION DUE DECEMBER 3 1, 2023 (AS 04 . I I .270(b)) TEMPO RARY TH IS LICENSEEXPIRCSMIDN IGHT FEBR UARY 2S. 2024 UNLESS DATED BIZLOW TYPE OF LICEN SE: Beverage Disper LI CE NSE FEE: $2,500.00 D/B/A: Uptown Motel/Louie's 4 7 Spur View Drive Muili ng Address : Schilling Alaska , Inc. 47 Spur View Drive Kenai, AK 99611 CITY I BOROUGH: Kenai Kenai Peninsula Borough This liccn~e c~nnot be lransfcrrcd withoul pe rmiss ion of the Alcoholic Beverage Control Board l Speci al res lriction -sec reverse side ISSUED BY ORDER OF TH E ALCOHOLIC BEV ERAGE CONTROL BOARD COPY DIRECTOR TlllS LI CENSE MU ST BB POST!!D IN A VISIBLI! PLACE ON TllE PllEMISES 04-900 (REV 7/21) Page 77 'Cr, ,~ . 1-ot.U~ Alas1c:a Alcoho1k Beverage Control Board AlcDhof 1nd M•rlluana control Offl0t ssowf',._, Suite 1600 Andlorap. Al( 99501 alcohol llsen1"1cl11ub.aov . lllte;lbel-.c!lSM!!t<s.a!nh 19\'/Wrb/tmco l'llorls: 907.11!1.0350 If Form AB-17: 2022/2023 General Renewal Application • This runn and any r.qulred supplemental ruml$ mun be completed, sr,nad by the ncensee. and postmarked no later than 12/31/2021 par AS 04.11.270, 3 MC 304.160, wldl all Rqulr•d f111s paid In rul, or 1 non ·mundable$5DO.OO laW fee applies. • Ally complete 1pplk:atlon for renewal or anv feu for rani:wal that have not bren postmarked by Ol/28/2022 wll be eirplred per AS 04.11.540,31.N. S04.160(el. • AU flelds of this 1pplle1tlon must be dl1mad complete by AMCO naff and mwt be accompanied by thl required fees and 111 documenll required, ar the application wlU IHI retumtd wlth11ut belna processed, prr AS 04.11.270, 3 MC 304.105 • RIClfpt1nd/orproce11ln1 arrenewal payments by AMCO narrnlltherlndlcatas nor1111ranteu In any way that an 1pplftallon will be deemed camplellt, 111newed, or that It wfll be scheduled for th1 neict ABC BINlrd meetlni. Establl•hment Contact Information Ucensee (Owner): Schllllng Alaska In c.. ... I license I: I 1859 Ucense Type: Beverage Dispensary -Tourism Doi,. Business As: Uptown Motel / Louie's Premises Address: 47 Spur View Drive Kenai 99611 local Govemlns Body: City of Kenai Community Councll: V---,1 f"'lh• f'..-. !J""~ . -"# -- ._ .. Ill dd h h d tte h NEW dd b I yourm1 11111 ress as c ange ,, wi t e a ress eow: Milling Address: Cfty: I State: I I ZIP: I Section 1 -Ucensee Contact Information Contact Ucensee: The lndlvklual hsted below must be listed In Section 2 or 3 as an Officlal/OWner/Shareholder of your enUty and must be !!steel on C8Pl with the nme name and title. This person wlll be the dellgnated point of conhct reaardlna this llcense, unless tile Optional contact Is completed. Contact Ucensee: David Schllllng I Contact Phone: 1907 283 3660 Contact Emall: dave@uptownmotel.com Optlanah If you wish for AMCO stiff to communicate wt th anyone other than the Contact lbtset! about your license, Ost them below : Name of Contact: Duane Bannock I Contact Phone: 1907 283 3660 Contact Emalf: duane@uptownmotel.com Contact Phone: Contact EmlU: Name of Contact: Contact Phone: Contact Ern1ll: (Form AB-17] (revD!l/21/2021) Page 1of4 OCT 1 0 .. 0~1 AMCO Received 11/22/2021 Page 78 Alaska Alcohollc Bevera1e Control Board Form AB-17: 2022/2023 license Renewal Application Section 2 -Entity or Community Ownership Information Sole Prop rietors should ski p this Section Use the llnkfrom Corporations, BuJ/nus and Proft:sslanal U~nslng (CBPLJ below ta aulst you In /Ind/no the Enrtry I. twsmllwww. cammrca.alatka. aevlcbe/malntwl.i;h/wt!tles Alasb CSPL Entity#: 1399920 READ BEFORE PROCEEDING: Any new or ch1nsu to Shareholders (10% or more), Managers, Corporate omcers, Board of Dlrect01$, Partnlfs, Controlllns Interest or OWnenhlp of the buslneu lcense must be reported to the ABC Board within 10 dilys of the chan1e and must be accompanied by a full set of ffnaerprfnts on FBI-approved card stO(k, A8-08a's, payment of $48.lS for each new officer with 1 date-sRmped COPV of the CBPL ch1n1e per AS 04.11.045, SO & 55, ot a NoHce of Vlolatlon wQI be Issued to your establishment and your appllClltlon wlD be raNmed. The only exception to this Is a C«poratlon who can meet the requirements set forth In AS 04.11.0SD(ct. DO NOT LIST OFFICERS OR TITLES THAT ARE NOT REQUIRED FOR YOUR ENTITY TYPE. • CorpontJans of !!!l type lndudlng non-profit must llst ONLY tha foUowlng: o All shareholders who own 1°" or more stoclc In the corporation o Each President, Vlce-Pre.sldent, Secretary, and Managlna Officer regardless of pen:enta1e owned • Umlted UablHty Corporations, of mr type must llst ONLY thefollowtns: o All Members with an ownenhlp Interest of 10% or more o An Manaaers (of the LLC, not the OBA) reprdless of percenta1eowned • Partnerships of ony type, lncludlno Umlted Partntnhlps must llst ONLY the followlna: o Each Partner with an Interest of 10% or more o All General Partners regardless of percen~ge owned Important Not!; 1 You must list full 11111 names, all required titles, phone number, percentase of shares owned (If applicable) and a full mamns address for each offlclal of your entity whose lnfonnatlon we require. If more space is needed: attach additional completed copies aJ this ~ td Name of Offldal: David Schilling Tltle(s): President Matrln1 Address: 47 Spur View Dr City: Kenai Name of Offldal: I Tltfe(s): I MalHnc Address: I City: I I I' Name of Official: .... I Tltle(s): I Malling Address: I City: I l (Form Al-17) (1'1v09/2l/2021) Phone: 907 283 3660 State: AK I Phone: I I State: I I Phone: I I State: I "Owned: 100 ZIP: 99611 I "awned: I I ZIP: I I "OWnld: I I ZIP: I /.\MCC Ofl I r ~ ~1ctf4 AMCO Received 11 /22/2021 Page 79 # .... , ¥ '( Al\I C'O Alaska Alcoholic Beverage Control Board Form AB-17: 2022/2023 License Renewal Application Section 3-Sole Proprietor Ownership Information Corporations, LLC's and Pa rtners hips of All kinds sh o uld s ki p this section. READ BEFORE PROCEED ING: Any new or changes to the ownership of the business license must be reported to the ABC Board within 10 days of the change and must be accompanied by a full set of fingerprints on FBI approved cardstock, AB -08a 's, payment of $48.25 for each new owner or officer and a date stamped copy of the CBPL change per AS 04.11.045, or a Notice of Violation will be Issued to your establishment and your application will be rettirned. Important Note: All entries below must match our records, or your application will be returned per AS 04.11.270, 3 AAC 304.\0S. You must list full legal names, phone number, and mailing address for each owner or partner whose Information we require. If more sDace Is needed, attach additional cooies of this Dan. Additional owners not listed on this Dage will be rejected. This individual Is an: I I Applicant I I Affiliate Name: I Contact Phone: Malling Address: City: I State: I Email: This Individual is an: I I Applicant I !Affiliate Name: I Contact Phone: Mailing Address: City: I State: I Email: Section 4 -License Operation Ch rk ONE BOX/or EACH CALENDAR YEAR that best d es cribes how this l iquor license was operated : 1 . The license was regularly operated continuously throughout eac h year. (Year·round) 2. The llcense was only operated during aspeclfic season each year. (Seasonal) /(your operation dates have changed, list them below: ~~~~~~~~~~~~~~-to ~~~~~~~~~~~~~~- 3 . The license wa s only operated to meet the minimum requirement of 240 total hours each calendaryear. A complete AB-30: Proof of Minimum Operation Checklist, and all documentation must be provided with this form . 4 . The license was not operat ed at all or was not operated for it least the minimum requirement of 240 total hours each year, duri ng one or both calendar years. A complete Farm AB-29: Waiver of Operation Appl/cation I I ZIP: I I ZIP: and corresponding fees must be submitted with this application far each calendar year during wh ich the license was not operated. If you have not met the minimum number of hours of operation In 2020 and/or 2021, you are not required to pay the fees, however a complete AB-29 ls required with ~et11on 2 l'Mfli;ed NOTH ER"~~ COVIO Is ltsted •~the !euo11. Section 5 -Violations and Convictions I I 2020 ~ D D D 2021 ~ D D D Yes No Have ANY Notices of Violation been issued for this license OR has ANY person or entity in this application been convicted of a violation of Title 04, 3AAC 304 or a local ordinance adopted under AS 04.21.010 in 2020 or 2021? ~ cl1ec.lf.ed YES..:t_qu MQSJ attgfh a list oj all .Not ices oLVfclia!fulJ. and/~vfctlons per AS 04.ll.270(0){2) If you are unsure If you have received any Notices of Violation, contact the office before submitting this form. [Form AB-17) (rev09/21/2021) Page 3 of4 Page 80 Alaska Alcoholic Beverage Control Board Form AB-17: 2022/2023 License Renewal Application Section 6 -Certifications As an appl icant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC304, and that this app lication, includ i ng all accompanyi ng schedules and statements, are true, correct, and complete. • I agree to provide all Information required by the Alcoholic Beverage Contro l Board or requested by AMCO staff in support of this application and understand that failure to do so by any deadline given to me by AMCO staff will result in this application being returned and potentially expired if I do not comply with statutory or regulatory requirements. • I certify that all current licensees (as defined In AS 04.11.260) and affiliates have been listed on this app lication, and that In accordance with AS 04.11.450, no one other than the licensee(s) has a direct or Indirect financial interest In the llcensed business. • I certify that this entitY Is In good standing with Corporations, Business and Professional Licensing (CBPL) and that all entity officials and stakeholders are current and accurately listed, and I have provided AMCO with all required changes of Shareholders (10% or more), Managers, Corporate Officers/Board of Directors, Partners, Controlllng Interest or Ownership of the business license, and have provided all required documents for any new or changes in officers. • I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check Identification of patrons have completed an alcohol server education course approved by the ABC Board and keep current, valid copies of their course completron cards on the licensed premises during all working hours, If applicable for this license type as set forth in AS 04.21.025 and 3 AAC 304.465. • I certify that I have not altered the functional floor plan or reduced or expanded the area of the llcensed premises, and I have not changed the business name from what is currently approved and on file with the Alcoholic Beverage Control Board . I certify on behalf of myself or of the organized entity that I un~\hat providing a false statement on thi s form or any other form provided by AMCO Is grounds for rejection a~£flf~!s':\~,ication or revocation of any license Issued. {~~~ .................. f!?~··.. ~ ~.-····· OTALl '""·~ ~"'" 0 0 q~ l ~ 'Tr\ •\ i ~-~ ' -ie-c......,11!1"'&&.~-.,r'l~ ..... ""~--..,...---Signature of licensee ~ Ll.. j Sig at e of Notary Public ~ D 'd S h'll' ll \.n: UBL\~ ·'&i !rl A aVI C I mg \,,<\-:;.(.1~ota~ ~J~ d forthe State of: . .-....,.t,....:a .... std_...,'------ Printed name of licensee ,,. ~~··-,,;,s--OF ·~~;,. Ji ''ft ~O: ''•t;uuu'•'' ($' IJ.12/I' 0 ''7n?t!:... t, .. ,n ~Ires:~~< .I My commission expires : i7 o CN'~ . ''''"'""'.~ ~------~--- Subscribed and sworn to before me thls~day of OCiiJba: , 20~. Restaurant/Eating Place applications must include a completed AB·33: Restaurant Receipts Affidavit Recreational Site applications must include a completed Recreational Site Statement Tourism applications must include a completed Tourism Statement Wholesale applications must include a completed AB-25: Supplier Certification Common Carrier applications must include a current safety inspection certificate All renewal and supp lemental forms are available on line Any application that is not complete or does not include ALL required completed forms and fees wlll not be processed and will be returned per AS 04.11.270, 3 AAC 304.105. FOR OFFICE USE ONLY License Fee: ls25oo.oo I Application Fee: Is 300.00 I Misc. Fee: $ Total Fees Due: $2800 .00 [Form AB-17) (rev09/21/2021) Page 4 of4 Page 81 Divi s ion of Corpora ti ons, Bu s in ess and Profess ional Lic ensi ng http s://www.com merce .a la ska.gov/cbp/ma in/Sea rch/Enti tyDetai l/39992 D I of2 Department of Commerce, Community, and Economic Development CORPORATIONS, BUSINESS & PROFESSIONAL LICENSING State of Alaska I Commerce I Corporations, Business , and Professional L1cens 1ng I Search & Database Download I Corporations I Entity Details ENTITY DETAILS Name(s) Type Name Lega l Name SCH ILLIN G ALASK A, INC . Entity Type: Business Corporation Entity #: 39992D Status: Good Standing AK Formed Date : 4/13/1987 Durati on/Expiration : Perpetual Home State: ALASKA Next Biennial Report Du e: 1/2/2023 Entity Mailing Address : 47 SPUR VIEW DRIVE , KENAI , AK 99611 Entity Phys ical Address: 47 SPUR VIEW DRIVE , KENAI , AK 99611 Registered Agent Agent Name: David Schilling Registered Mailing Address: 47 SPUR VIEW DR , KENAI, AK 99611 Reg istered Physic al Address: 47 SPUR VIEW DR , KENAI , AK 99611 Officials AK Entity# Name Titles David Schi lling President , Treasurer, Director, Secretary, Sharehold er Filed Documents U Show Former Owned 100.00 10/26/202 1, 8:44 t\M Page 82 Division of Corporation s, Bu sin ess and Profess iona l L icensing hllps://www.com merce.a las ka.gov/cbp/main/Search/Entity De tail/39992D Date Filed Type Filing Certificate 4/13/1987 Creation F iling Click to View 11/28/1988 Biennial Report 11/16/1990 B ie n nial Report 2/29/1992 Biennial Report 12/18/1992 Biennial Report Click to View 1 /09/1995 Bienn ia l Report Click to View 1/13/1997 Biennial Report Click to View 12/17/1998 Biennial Report Click to View 1/08/2001 Biennial Report C lick to View 1/23/2003 Change of Officials Click to View 1/23/2003 Agent Change Click to View 1/29/2003 Amendment Click to View 1/29/2003 Agent Change Click to View 2/10/2003 Biennia l Report Click to View 1/03/2005 Biennial Report Click to View 5/03/2007 Bienn ia l Report Click to View 710212009 Biennial Report Click to View 1/27/2011 Bie nnial Report Click to View 1/07/2013 Bie nnial Report C lick to View 2/04/2014 Certificate of Compliance Click to View 11/19/2014 Biennial Report Click to View 12/15/2016 Bienn ial Report Click to View 1/31/2019 Bienn ial Report Click to View 11/02/2020 Bienn ial Report Click to View COPYR IGHT © STATE OF ALASKA · DEPARTMENT OF COMMERC !;, COMMUN ITY. AND ECONOM IC DEVE LOP MENT · 2 of2 10 /26/202 1, 8:44 AM Page 83 Divis ion of Corpo ration s, Bus in ess and Profe ss ional Licensing h ttps ://www. co mm erce .a l aska.gov/ cbp/bus in cs sl ice nse/s earc h/L i ce ns ... I of2 Department of Commerce, Community, and Economic Development DIVISION OF CORPORATIONS, BUSINESS & PROFESSIONAL LICENSING State of Al aska I Commerce I Corp orat io n s, Bus in ess, and P rofessional Licensing I Search & Database Downl oad I Bu si ness Li cense I License #36071 LICENSE DETAILS Owners Lice nse #: 36071 Business Name: UPTOWN MOTEL Status: Active Issue Date: Expiration Date: 12/3112022 Mailing Address: 47 SPUR VIEW DR KENAI I AK 99611 -6879 Physical Address: 47 SPUR VIEW DRIVE KENAI, AK 996 11 SCHILLING ALASKA, INC . Activities Line of Business 72 -Accommodation and Food Services 72 -Accommodation and Food Services Endorsements NAICS 722110 -FULL-SERVICE RESTAURANTS 721110 -HOTELS (EXCEPT CASINO HOTELS) AND MOTELS End# Issue Renew Expiration Action End Action Note Address Prin t Busin ess Lice nse Professional Lic ense# 1 12/13/2018 11/2/2020 12/31/2022 47 SPUR VIEW DR., KENA I, AK 99611 License Lapse(s) If this business license lapsed within the la st four years the lapsed periods will appear below. Lapsed periods are 10/26/2021 , 8:46 AM Page 84 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Office of the Borough Clerk Johni Blankenship, MMC Borough Clerk Office of the Borough Clerk 12/30/2021 Sent via email: jheinz@kenai.city Kenai City Hall City of Kenai RE: Non-Objection of Application Dear Ms. Heinz, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk cc: dave@uptownmotel.com; jheinz@kenai.city; JVanHoose@kpb.us; MJenkins@kpb.us Licensee/Applicant : Schilling Alaska, Inc. Business Name : Uptown Motel/Louie's License Type : Beverage Dispensary/Tourism License Location : 18021 Kenai Spur Highway, Kenai, AK 99611, City of Kenai License No. : 1859 Application Type : License Renewal [PreviousText] Page 85 Action History (UTC-08:00) Pacific Time (US & Canada) Submit by Meghan Thibodeau 1/5/2022 9:28:32 AM (Form Submission) Approve by Jeremy Hamilton 1/24/2022 9:02:40 AM (Fire Marshall Review) Th e task was assign ed to Jeremy Hamilton. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:28 AM Approve by Scott Curtin 1/11/2022 5:12:38 PM (Building Official Review) Th e task was assign ed to Scott Curti n. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:28 AM Approve by Dave Ross 1/5/2022 12:33:36 PM (Police Department Review) Th e task was assign ed to Dave Ross. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:28 AM Approve by Tina Williamson 1/5/2022 9:50:41 AM (Finance Asst Review) Th e task was assign ed to Ti na Wi l l i amson. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:28 AM Approve by Cindy Herr 1/5/2022 9:55:46 AM (Legal Asst Review) No monies owed in restitution or traffic fines. Th e task was assign ed to Cin dy Herr. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:28 AM Approve by Ryan Foster 1/5/2022 9:30:57 AM (Lands Review) Th e task was assign ed to Ryan Foster. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:28 AM Approve by Terry Eubank 1/5/2022 2:34:08 PM (Finance Review) Th e task was assign ed to Terry Eu ban k. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:55 AM Approve by Scott Bloom 1/5/2022 10:23:58 AM (Legal Review) Th e task was assign ed to Scott Bl oom. Th e du e date i s: Jan uary 14, 2022 5:00 PM 1/5/2022 9:55 AM Approve by Ryan Foster 1/5/2022 9:56:53 AM (P&Z Department Review) Th e task was assign ed to Ryan Foster. The d ue d ate is: Janu ary 14, 2022 5:00 PM 1/5/2022 9:55 AM Page 86 AMCO License Application Date Lice nse Type Lice nse e Doing Busine ss As Pre mise s Addre ss City, State Contact Lice nse e Contact Phone No.Contact Email Name Phone No.Email File Upload 1/5/2022 Establishment Information Schilling Alaska Inc. Beverage Dispensary - Tourism duplicate Uptown Motel/Back Door Lounge 18021 Kenai Spur Highway Kenai, AK Contact Information David Schilling 9072833660 dave@uptownmotel.com Additional Contact Information Duane Bannock 9072833660 duane@uptownmotel.com Documents #2237 Complete Renewal Packet with Temp.pdf 4.86MB #2237 LGBI Renewal Notice.pdf 810.11KB Page 87 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 December 29, 2021 Kenai Peninsula Borough City of Kenai Via Email: cityclerk@kenai.city; mjenkins@kpb.us; jvanhoose@kpb.us; maldridge@kpb.us; ncarver@kpb.us; slopez@kpb.us jblankenship@kpb.us; cjackinsky@kpb.us Re: Notice of 2022/2023 Liquor License Renewal Application License Type: Beverage Dispensary-Tourism Duplicate License Number: 2237 Licensee: Schilling Alaska Inc Doing Business As: Uptown Motel/Back Door Lounge We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Glen Klinkhart, Director amco.localgovernmentonly@alaska.gov Page 88 STATE OF ALASKA -ALCOHOLIC BEVERAGE CONTROL BOARD FORM CONTROL LICENSE NUMBER xxxx ISSUED 12/29/2021 ABC BOARD LIQUOR LICENSE 2022 -2023 TEMPORARY 2237 LICENSE RENEWAL APPLICATION DUE DECEMBER 31, 2023 (AS 04.l l.270(b)) THIS LICENSE EXPIRES MIDNIGHT FEBRUARY 28, 2024 UNLESS DATED BELOW TYPE OF LICENSE: Beverage Dispen' LICENSE FEE: $2,500.00 1107 DtBtA: Uptown Motel/Back Door Le. 18021 Kenai Spur Hwy Mail Address: Schilling Alaska, Inc. 4 7 Spur View Drive Kenai, AK 99611 04-900 (REV 7/21) CITY I BOROUGH: Kenai Kenai Peninsula Borough This license cannot be transferred without permission of the Alcoholic Beverage Control Board l Special restriction -see reverse side ISSUED BY ORDER OF THE ALCOHOLIC BEVERAGE CONTROL BOARD DIRECTOR THIS LICENSE MUST BE POSTED IN A VISIBLE PLACE ON THE PREMISES STATE OF ALASKA -ALCOHOLIC BEVERAGE CONTROL BOARD FORM CONTROL LICENSE NUMBER xxxx ISSUED 12/29/2021 ABC BOARD LIQUOR LICENSE 2022 -2023 2237 LICENSE RENEWAL APPLICATION DUE DECEMBER 31, 2023 (AS 04.l l .270(b)) TE Mp 0 RAR y THIS LICENSE EXPIRES MIDNIGHT FEBRUARY 28, 2024 UNLESS DATED BELOW TYPE OF LICENSE: Beverage Disper I I LICENSE FEE: $2,500.00 D/B/A: Uptown Motel/Back Door Lounge 18021 Kenai Spur Hwy Mailing Address: Schilling Alaska, Inc. 47 Spur View Drive Kenai, AK 99611 CITY I BOROUGH: Kenai Kenai Peninsula Borough This license cannot be transferred without permission of the Alcoholic Beverage Control Board l Special restriction -see reverse side ISSUED BY ORDER OF THE ALCOHOLIC BEVERAGE CONTROL BOARD COPY DIRECTOR THIS LICENSE MUST BE POSTED IN A VISIBLE PLACE ON THE PREMISES 04-900 (REV 7/21) Page 89 Alcohol 1ncl MarOu-Control Oflke 550 W 7• Av1nw. 5ulte l6CIO Anchonie, AK!l!lSOl alcoho1.lla!nsln1£ab sb:J!!Y . hne s-f/~.rom.m~rci!.1)asb l[NJ.~!!l!!E.CD Phone: !I07.l69.ll350 Alaska Alcoholic Beverage Control Board Form AB-17: 2022/2023 General Renewal Application • This form and any reqllfred supplemental forms must be completed, sl1ned by the llcensee, and postmarked no liter than 12/31/2021 per AS 04.11.270, 3 AAC304.160, with aM required fees paid In full, or a non·refundable $500.00 late fee applies. • Any complete appllcitlon for renewal or any fees ror renewal that have not been postmarked by 02/2B/20'll will be expired per AS 04.11540,3 AAC 304.160{e). • All fields of this appUcatlon must be deemed complete by AMCO staff and must be accompanied by the required fees and all documents required, or the appllcallon wlll be rehlmed without belna processed, per AS 04.11 .270, 3 AAC 304.105 • Receipt and/or processln1 of renewa l payments by AM CO staff neither Indicates nor 1uarantees In anyway that 1n appllatlon wll be deemed complete, renewed, or that It wW be scheduled for the next ABC Board meeting. Establishment Contact Information Ucensee (Owner): Schilling Alaska :Ch c_ I Ucensel: j2237 Ucense Type: Beverage Dispensary-Tourism duplicate Doing Business As: Uptown Motel /Back Door Lounge Premises Address: 18021 Kenai Spur Highway Kenai 99611 local Governing Body: City of Kenai Community Coundl: KeAai Gity Geuneil If your malllng address has changed, write the NEW address below: I::, .. -~ I I State: ZIP: Section 1 -Licensee Contact Information Contact Ucensee: The Individual fisted below must be Usted In Section 2 or 3 as an OfflclaVOwner/Shareholder of your entity and must be listed on CBPL with the same name and title. This person will be the designated point of contact regarding this license, unless the Optional contact Is completed. Contact Ucensee: David Schilling I Contact Phone: lso7 283 3660 Contact Email: dave@uptownmotel .com Optional: If you wish for AMCO staff 10 communlCllte with anyone other thilll the Contact licensee about your Hcense, llst them below: Name of Contact: Duane Bannock I Contact Phone: 1907 283 3660 Contact Email: duane@uptownmotel.com Name of Contact: Contact Phone: Contact EmaU: Name of Contact: I Contact Phone: I Contact EmaU: (Form AIH7J (rev09/21/2021) AV.CO Pa&elof4 OCT 1 92 iJ:1 ·t J. AMCO Received 11 /22/2021 Page 90 ;"'"'•<+ . ,, . . A'.\ICO Alaska Atcohollc Bevera1e Control Board Form AB-17: 2022/2023 License Renewal Application Section 2 -Entity or Community Ownership Information Sole Proprietors should skip this Section . Use the llnfcfrom Corporations, Busfness and Professional Ucenslng (CBPL} below to assist you In finding the Entity#. https:Uwww.co mm ercr.aloska.qov/c bplmaln/seorch l tnrl rir1 Alaska CBPL Entity#: 1399920 READ BEFORE PROCEEDING : Any new or changes to Shareholders (10% or more), Managers, Corporate Officers, Board of Directors, Partners, ControUing Interest or Ownership of the business license must be reported to the ABC Board within 10 days of the chan1e and must be accompanied by a full set of fin1erprlnts on FSl·approved card stock, AB·OBa's, payment of $48.25 for each new officer with a date-stamped copy of the CBPL change per AS 04.U.04S, SO & SS, or a Notice of Vlolatlon will be Issued to your establlshment and your appllcatlon will be returned. The only excepUon to this Is a Corporation who can meet the requirements set forth In AS 04.U.OSO(c). DO NOT LIST OFFICERS OR TITLES THAT ARE NOT REQUIRED FOR YOUR ENTITY TYPE. • Corporations of !!!l type lndudlng non-profit must list ONL V the following: o All shareholders who own 10% or more stock In the corporation o Each President, Vice-President, Secretary, and Managing Officer regardless of percentage owned • Limited UablUty Corporations, of !!!l type must list ONLY the foUowlng: o All Members with an ownership Interest of 10% or more o All Managers (of the LLC, not the OBA) regardless of percentage owned • Partnerships of any type, Including Limited Partnerships must lfst ONLY the following: o Each Partner with an Interest of 10% or more o All General Partners regardless of percentage owned Important Note: NI entries below must match our records, or your application 1•1111 be returned per AS 04 11 no. 3 AAC 304 105 You must list full legal names, aH required titles, phone number, percentage of shares owned (If appllciblel and a full malling address for each official of your entity whose Information we require. If more space Is needed: attach additional completed copies of this fo atlon not on th Name of Official: David Schilling ntle(s): Malling Address: 47 Spur View Dr Oty: Kenai Name of Official: Tltle{s): Malllng Address: City: \ Name of Offldal: \ Tltle(s): \ Malllng Address: \ City: [Fann AB-17] lrev09/21/202ll " Phone: 907 283 3660 " Owned: 100 State: AK Phone: State: I Phone: I I State: I ZIP: 99611 "Owned: ZIP: I "Owned: I I ZIP: I AuVICO OCT 1 9 /1 1,·! PageZof4 AMCO Received 11 /22/2021 Page 91 Alaska Alcoholic Beverage Control Board Form AB-17: 2022/2023 License Renewal Application Section 3 -Sole Proprietor Ownership Information Corporations, LLC's and Partnerships of ALL kinds should skip this section. READ BEFORE PROCEEDING: Any new or changes to the ownership of the business license must be reported to the ABC Board within 10 days of the change and must be accompanied by a full set offingerprints on FBI approved cardstock, AB-08a's, payment of $48.25 for each new owner or officer and a date stamped copy of the CBPL change per AS 04.11.045, or a Notice of Violation will be issued to your establishment and your application will be returned. Important Note: All entries below must match our records, or your application will be returned per AS 04.11.270, 3 AAC 304.105. You must list full legal names, phone number, and mailing address for each owner or partner whose information we require. If more space is needed, attach additional copies of this page. Additiona I owners not listed on this page will be rejected. This individual is an: I jApplicant I I Affiliate Name: I Contact Phone: Mailing Address: City: I State: I Email: This individual is an: I !Applicant I I Affiliate Name: I Contact Phone: Mailing Address: City: I State: I Email: Section 4 -License Operation Check ONE BOX/or EACH CALENDAR YEAR t hat best describes how this liquor license was operated: 1. The license was regularly operated continuously throughout each year. (Year-round) 2. The license was only operated during a specific season each year . (Seasonal) /[your operation dotes have changed, list them below: 3 . The license was only operated to meet the minimum requirement of 240 total hours each calendar year. A complete AB-30: Proof of Minimum Operation Checklist, and all documentation must be provided with this form. 4. The license was not operated at all or was not operated for at least the minimum requirement of 240 total hours each year, during one or both calendaryears. A complete Form AB-29: Waiver of Operation Application I I I I and corresponding fees must be submitted with this application for each calendar year during which the license was not operated. ZIP: ZIP: If you have not met the minimum number of hours of operation in 2020 and/or 2021, you are not required to pay the fees, however a com lete AB-29 is re uired with Section 2 marked "OTHER" and COVID is listed as the reason. Section 5 -Violations and Convictions Have ANY Notices of Violation been issued for this license OR has ANY person o r entity in this application been convicted of a violation ofTitle 04, 3AAC 304 or a local ordinance adopted under AS 04 .21.010 in 2020 or 2021? I I 2020 ~ D D D Yes D If you checked YES, you MUST attach a list of all Notices of Violation and/or Convictions per AS 04.11.27D(a)(2} If you are unsure if you have received any Notices of Violation, contact the office before submitting this form. 2021 ~ D D D No \(..}LS ~ ---- [Form AB-17) (rev09/21/2021) \.1CO Page3 of4 ll ( 1 l • 207 1 Page 92 Al\ICO Alaska Alcoholic Beverage Control Board For m AB-17: 202 2 /2023 License Renew al Ap p licati o n Section 6 -Certifications As an applicant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC 304, and that this application, including all accompanying schedules and statements, are true, correct, and complete. • I agree to provide all information required by the Alcoholic Beverage Control Board or requested by AMCO staff in support of this application and understand that failure to do so by any deadline given to me by AMCO staff will result in this application being returned and potentially expired if I do not comply with statutory or regulatory requirements. • I certify that all current licensees (as defined in AS 04.11.260) and affiliates have been listed on this application, and that in accordance with AS 04.11.450, no one other than the licensee(s) has a direct or indirect financial interest in the licensed business. • I certify that this entity is in good standing with Corporations, Business and Professional Licensing (CBPL) and that all entity officials and stakeholders are current and accurately listed, and I have provided AMCO with all required changes of Shareholders (10% or more), Managers, Corporate Officers/Board of Directors, Partners, Controlling Interest or Ownership of the business license, and have provided all required documents for any new or changes in officers. • I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check identification of patrons have completed an alcohol server education course approved by the ABC Board and keep current, valid copies of their course completion cards on the licensed premises during all working hours, if applicable for this license type as set forth in AS 04.21.025 and 3 AAC 304.465. • I certify that I have not altered the functional floor plan or reduced or expanded the area of the licensed premises, and I have not changed the business name from what is currently approved and on file with the Alcoholic Beverage Control Board. I certify on behalf of myself or of the organized entity that I understand that providing a false statement on this form or any other form provided by AMCO is grounds for rejection or denial of this application or revocation of any license issued. O • ..? ~-- Signature ofli(ensee =t::> David Schilling Printed name of licensee Restaurant/Eating Place applications must include a completed AB-33: Restaurant Receipts Affidavit Recreational Site applications must include a completed Recreational Site Statement Tourism applications must include a completed Tourism Statement Wholesale applications must include a completed AB-25: Supplier Certification Common Carrier applications must include a current safety inspection certificate All renewal and supplemental forms are available online Any application that is not complete or does not include ALL required completed forms and fees will not be processed and will be returned per AS 04.11.270, 3 AAC 304 .105. FOR OFFICE USE ONLY License Fee: 1$2500.00 I Application Fee: Is 300.00 I Misc. Fee: $ Total Fees Due: $2800.00 [Form AB-17] (rev09/21/2021) MCO Page4 of4 [I 1 1 20?1 Page 93 Division of Corporations, Business and Professional Licensing https://www.commerce.alaska.gov/cbp/main/Search/EntityDetail/39992D I of2 Department of Commerce, Community, and Economic Development CORPORATIONS, BUSINESS & PROFESSIONAL LICENSING State of Alaska I Commerce I Corporations , Business , and Professional Licensing I Search & Database Download I Corporations I Entity Details ENTITY DETAILS Name(s) Type Name Legal Name SCHILLING ALASKA, INC. Entity Type: Business Corporation Entity #: 39992D Status: Good Standing AK Formed Date: 4/13/1987 Duration/Expiration: Perpetual Home State: ALASKA Next Biennial Report Due: 1/2/2023 Entity Mailing Address: 47 SPUR VIEW DRIVE, KENAI, AK 99611 Entity Physical Address: 47 SPUR VIEW DRIVE, KENAI, AK 99611 Registered Agent Agent Name: David Schilling Registered Mailing Address: 47 SPUR VIEW DR, KENAI, AK 99611 Registered Physical Address: 47 SPUR VIEW DR, KENAI, AK 99611 Officials AK Entity # Name Titles David Schilling President, Treasurer, Director, Secretary, Shareholder Filed Documents 0 Show Former Owned 100.00 10/26 /2021 , 8:47 AM Page 94 Division of Corporations, Business and Professional Licensing https ://www.commerce .alaska.gov/cbp /main /Search /EntityDetail/39992D Date Filed Type Filing Certificate 4/13/1987 Creation Filing Click to View 11/28/1988 Biennial Report 11/16/1990 Biennial Report 2/29/1992 Biennial Report 12/18/1992 Biennial Report Click to View 1/09/1995 Biennial Report Click to View 1/13/1997 Biennial Report Click to View 12/17/1998 Biennial Report Click to View 1 /08/2001 Biennial Report Click to View 1/23/2003 Change of Officials Click to View 1/23/2003 Agent Change Click to View 1/29/2003 Amendment Click to View 1/29/2003 Agent Change Click to View 2/10/2003 Biennial Report Click to View 1/03/2005 Biennial Report Click to View 510312007 Biennial Report Click to View 710212009 Biennial Report Click to View 1/27/2011 Biennial Report Click to View 1/07/2013 Biennial Report Click to View 2/04/2014 Certificate of Compliance Click to View 11/19/2014 Biennial Report Click to View 12/15/2016 Biennial Report Click to View 1 /31/2019 Biennial Report Click to View 11/02/2020 Biennial Report Click to View COPYRIGHT© STATE OF ALASKA · DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT · 2 of2 10 /26/2021 , 8:47 AM Page 95 Division of Corporations, Business and Professional Licensing https://www.commerce .a laska.gov/cbp/businesslicense/search /Licens ... I of2 Department of Commerce, Community, and Economic Development DIVISION OF CORPORATIONS, BUSINESS & PROFESSIONAL LICENSING State of Alaska I Commerce I Corporat ions , Business, and Professional Licensing I Search & Database Download I Business License I License #36071 LICENSE DETAIL·S Owners License #: 36071 Business Name: UPTOWN MOTEL Status: Active Issue Date: Expiration Date: 12/3112022 Mailing Address: 47 SPUR VIEW DR KENAI, AK 99611-6879 Phys i cal Add r ess: 47 SPUR VIEW DRIVE KENAI, AK 99611 SCHILLING ALASKA, INC. Activities Line of Business 72 -Accommodation and Food Services 72 -Accommodation and Food Services Endorsements NAICS 722110 -FULL-SERVICE RESTAURANTS 721110 -HOTELS (EXCEPT CASINO HOTELS) AND MOTELS End# Issue Renew Expiration Action End Action Note Address Print Business License Professional License# 1 12/13/2018 11/2/2020 12/31/2022 47 SPUR VIEW DR., KENAI, AK 99611 License Lapse(s) If this business license lapsed within the last four years the lapsed periods will appear below. Lapsed periods are 10/26/202 1, 8:46 AM Page 96 144 North Binkley Street, Soldotna, Alaska 99669 (907) 714-2160 (907) 714-2388 Fax Office of the Borough Clerk Johni Blankenship, MMC Borough Clerk Office of the Borough Clerk 12/30/2021 Sent via email: jheinz@kenai.city Kenai City Hall City of Kenai RE: Non-Objection of Application Dear Ms. Heinz, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk cc: dave@uptownmotel.com; jheinz@kenai.city; JVanHoose@kpb.us; MJenkins@kpb.us Licensee/Applicant : Schilling Alaska, Inc. Business Name : Uptown Motel/Back Door Lounge License Type : Beverage Dispensary/Tourism-Duplicate License Location : 18021 Kenai Spur Highway, Kenai, AK 99611, City of Kenai License No. : 2237 Application Type : License Renewal Page 97 Sponsored by: Vice Mayor Glendening and Council Members Winger and Sounart CITY OF KENAI ORDINANCE NO. 3270-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL, AIRPORT, SENIOR CITIZEN, AND WATER & SEWER FUNDS, AND AUTHORIZING A ONE-TIME PREMIUM PAYMENT TO ELIGIBLE EMPLOYEES. WHEREAS, the City has been impacted by the COVID-19 pandemic since March of 2020, almost two years; and, WHEREAS, the City has continued to provide all essential services to the residents during this period with our employees being asked to work despite the inherent risk to themselves and their families; and, WHEREAS, inflation, as measured by the Consumer Price Index, second half of 2019 over second half 2020 for Alaska showed a 0.54% decrease resulting in employees not receiving a cost of living adjustment in the fiscal year 2022 budget; and, WHEREAS, largely as a result of the impacts of the COVID-19 pandemic, our country saw inflationary pressures in the following 6 months not seen in over 30 years with inflation, as measured by the Consumer Price Index, second half of 2020 over second half 2021 increasing 6.35%; and, WHEREAS, while some inflation over the course of fiscal year 2022 was anticipated, an increase of this magnitude was not contemplated; and, WHEREAS, in recognition of the work that City employees have done since the beginning of the pandemic, the reality that inflationary pressures have increased the financial burden on employees, and the need to assure that the City remains competitive in a tight labor market, premium pay for employees in the amount of $2000 per employee is warranted and in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That all employees in the Classified Service and Department Head Service that are currently employed and were employed on December 31, 2021 will receive a one-time premium payment of $2000, prorated for any employees that work less than full time. Section 2. That the estimated revenues and appropriations be increased as follows: Page 98 Ordinance No. 3270-2022 Page 2 of 5 _____________________________________________________________________________________ General Fund: Increase Estimated Revenues – Appropriation of Fund Balance $255,913 Increase Appropriations: Non-Departmental: Transfer to Airport Special Revenue Fund $ 9,968 Transfer to Water & Sewer Special Revenue Fund 12,562 Transfer to Senior Citizen Fund 17,460 Salaries 700 Medicare 10 Social Security 43 40,743 City Clerk: Salaries 2,000 PERS 440 Medicare 29 Workers’ Compensation 4 2,473 Legal: Salaries 2,000 PERS 440 Medicare 29 Workers’ Compensation 4 2,473 City Manager: Salaries 2,000 PERS 440 Medicare 29 Workers’ Compensation 4 2,473 Finance: Salaries 12,450 PERS 2,739 Medicare 180 Workers’ Compensation 25 15,394 Planning & Zoning Salaries 2,000 PERS 440 Medicare 29 Workers’ Compensation 4 2,473 Police Salaries 38,700 PERS 8,360 Social Security 43 Medicare 561 Workers’ Compensation 904 48,568 Page 99 Ordinance No. 3270-2022 Page 3 of 5 _____________________________________________________________________________________ Fire: Salaries 38,000 PERS 8,360 Medicare 551 Workers’ Compensation 1,012 47,923 Communications: Salaries 16,000 PERS 3,520 Medicare 233 Workers’ Compensation 32 19,785 Animal Control: Salaries 6,000 PERS 1,320 Medicare 87 Workers’ Compensation 75 7,482 Public Works Administration: Salaries 6,000 PERS 1,320 Medicare 87 Workers’ Compensation 12 7,419 Shop: Salaries 6,000 PERS 1,320 Medicare 87 Workers’ Compensation 135 7,542 Streets: Salaries 10,000 PERS 2,200 Medicare 145 Workers’ Compensation 325 12,670 Buildings: Salaries 2,000 PERS 440 Medicare 29 Workers’ Compensation 61 2,530 Library: Salaries 16,050 PERS 2,915 Social Security 172 Medicare 232 Workers’ Compensation 31 19,400 Page 100 Ordinance No. 3270-2022 Page 4 of 5 _____________________________________________________________________________________ Parks, Recreation & Beautification Salaries 14,000 PERS 1,760 Social Security 370 Medicare 201 Workers’ Compensation 234 16,565 $255,913 Section 3. That the estimated revenues and appropriations be increased as follows: Airport Fund: Increase Estimated Revenues – Transfer from General Fund $9,968 Increase Appropriations: Administration: Salaries $4,000 PERS 880 Medicare 58 Social Security 8 4,946 Airfield: Salaries 4,000 PERS 880 Medicare 59 Social Security 83 5,022 $9,968 Section 4. That the estimated revenues and appropriations be increased as follows: Water & Sewer Fund: Increase Estimated Revenues – Transfer from General Fund $12,562 Increase Appropriations: Water: Salaries $ 2,000 PERS 440 Medicare 29 Social Security 38 2,507 Sewer: Salaries 2,000 PERS 440 Medicare 29 Social Security 38 2,507 Page 101 Ordinance No. 3270-2022 Page 5 of 5 _____________________________________________________________________________________ Sewer Treatment Plant: Salaries 6,000 PERS 1,320 Medicare 87 Social Security 141 7,548 $12,562 Section 5. That the estimated revenues and appropriations be increased as follows: Senior Citizen Fund: Increase Estimated Revenues – Transfer from General Fund $17,460 Increase Appropriations - Home Meals: Salaries $14,500 PERS 2,420 Social Security 215 Medicare 210 Social Security 115 $17,460 Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: February 2, 2022 Enacted: February 16, 2022 Effective: February 16, 2022 Page 102 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Vice Mayor Glendening and Council Members Winger and Sounart DATE: January 26, 2022 SUBJECT: Ordinance 3270-2022 – Premium Pay Since March of 2020, the City has worked through a pandemic that has impacted every aspect of our lives. Our employees have consistently shown up throughout, despite the inherent risks to themselves and their families. They have delivered services to our residents during this time, uninterrupted, and with the quality our community has come to expect. When so many employees in both the private and governmental sectors have or continue to work from home, our employees have been at their jobs, doing the critical work that keeps our City running. Coupled with the impacts that COVID-19 has created, we have now seen inflation at levels not seen in over 30 years – increasing 6.35% as measured by the Consumer Price Index, second half of 2020 over second half 2021 which is likely a secondary effect of the health crisis. Our employees did not receive a cost of living adjustment (COLA) in our current fiscal year budget, which was effective July 1, 2021 and ends June 30, 2022, and although some inflation over the course of this fiscal year was anticipated, the levels that we have seen have far exceeded our projections. If we had known during the preparation of this fiscal year’s budget that we would see inflation exceeding 6%, it is probable that we would have supported a COLA adjustment effective July 1, 2021. A one-time premium payment to all employees in the Classified Service and Department Head Service in the amount of $2000 will help employees offset some of the additional costs that they have been experiencing over the past six months, and additionally, ensures the City can maintain an effective workforce by acknowledging the extraordinary circumstances and commitment to the City our employees have shown over the past 22 months. Your consideration is appreciated. Page 103 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3271-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT LAND SALE PERMANENT FUND TO TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE CITY’S AIRPORT FUND. WHEREAS, section 7.30.010 of the Kenai Municipal Code (KMC) established a fund to account for the proceeds from sale of land deeded to the City by the US Government for benefit of the Kenai Municipal Airport; and, WHEREAS, KMC 7.30.020(a)(4) provides for appropriations from the Airport Land Sale Permanent Fund be limited to 3.8% or 4.2% of the fund’s five-year, December 31st fair market value; and, WHEREAS, the 2021 year-end balance of the fund was $31,034,201, the 2021 year-end inflation adjusted balance was $28,397,622, and the fund’s five-year, year-end average balance was $26,993,044; and, WHEREAS, as the five-year, year-end balance was less than the inflation adjusted balance at December 31, 2021, the FY2022 annual transfer is limited to 3.8%; and, WHEREAS, the allowable transfer for FY2022, 3.8% of the five-year, year-end balance, is $1,025,736 and the FY2022 budgeted transfer from the Airport Land Sale Permanent Fund was $1,012,722 meaning the actual will be $13,014 more than budgeted and increasing the transfer amount to the maximum amount is in the City’s best interest. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations in the Airport Land Sale Permanent Fund be increased as follows: Airport Land Sale Permanent Fund: Increase Estimated Revenues – Investment Earnings $13,014 Increase Appropriations – Transfer to Airport Fund $13,014 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved Page 104 Ordinance No. 3271-2022 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: February 2, 2022 Enacted: February 16, 2022 Effective: February 16, 2022 Page 105 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 26, 2022 SUBJECT: Ordinance No. 3271-2022 – ALSPF Appropriation Increase The purpose of this memo is to recommend passage of Ordinance 3271-2022. This Ordinance will increase the authorized transfer amount from the Airport Land Sale (ALSPF) to the City’s Airport Fund for FY22. This increased amount is possible because earnings were higher than projected for calendar year 2021. ALSPF Pursuant to KMC 7.30.020 (a) (4) the annual transfer from the ALSPF will be based upon the five (5) year average of the fund’s calendar year end market value. An amount not to exceed three and four-fifths percent (3.8%) of the five (5) year average market value may be distributed if the average market value is less than the fund’s inflation adjusted principal balance. An amount not to exceed four and one-fifth percent (4.2%) of the five (5) year average market value may be distributed if the average market value is greater than the fund’s inflation adjusted principal balance. The December 31, 2021, 5 year-average market value of the portfolio ($26,993,044) was below the inflation adjusted principal ($28,397,622), thus the allowable transfer is limited to the lower bound of the spending rate (3.8%). The 2021 allowable transfer based upon this calculation is $1,025,736. The FY22 budgeted transfer amount was $1,012,722. This Ordinance will increase the budgeted transfer amount to the maximum value of $1,025,736, an increase of $13,014. Your support for Ordinance 3271-2022 is respectfully requested. Page 106 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3272-2022 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL LAND SALE PERMANENT FUND TO TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE CITY’S GENERAL FUND. WHEREAS, Article 5, Section 5-11 of the City’s Charter, requires the proceeds from the Sale of all City-owned, non-trust lands be deposited in a separate fund, the General Land Sale Permanent Fund, and allows for the investment earnings to be used for any lawful purpose but prohibits the expending of the proceeds from land sales; and, WHEREAS, the General Land Sale Permanent Fund’s 2021-year ending balance of $3,926,077 was an increase of $282,322 from the December 31, 2020 balance after the FY2021 withdrawal of $145,750; and, WHEREAS, the allowable transfer to the General Fund for operations is limited to 4% annually and excess earnings are reserved to supplement spending when portfolio earnings are less than the 4% limit in any given year; and, WHEREAS, the December 30, 2021 earnings reserve balance was $766,941, thus the FY2022 transfer is limited to $157,043 (4% of the Fund’s value); and, WHEREAS, after deducting the FY2022 allowable transfer, the earnings reserve balance will be $609,898; and, WHEREAS, the FY2022 budgeted transfer from the General Land Sale Permanent Fund was $148,315, meaning the actual will be $8,728 more than budgeted, and increasing the transfer amount to the maximum amount is in the City’s best interest. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations in the General Land Sale Permanent Fund be increased as follows: General Land Sale Permanent Fund: Increase Estimated Revenues – Investment Earnings $8,728 Increase Appropriations – Transfer to General Fund $8,728 Page 107 Ordinance No. 3272-2022 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of February, 2022. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: February 2, 2022 Enacted: February 16, 2022 Effective: February 16, 2022 Page 108 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 25, 2022 SUBJECT: Ordinance No. 3272-2022 – GLSPF Appropriation Increase The purpose of this memo is to recommend passage of Ordinance 3272-2022. This Ordinance will increase the authorized transfer amount from the General Land Sale (GLSPF) to the City’s General Fund for FY22. This increased amount is possible because earnings were higher than projected for calendar year 2021. GLSPF Pursuant to KMC 7.30.020 (a) (5) the annual transfer from the GLSPF shall be limited to the lesser of the cumulative earnings at calendar year end for the fund or four percent (4%) of the fund’s fair market value as of December 31st of each year. “Cumulative earnings” is defined as the market value at calendar year end minus the fund’s inflation adjusted principal balance. The December 31, 2021 market value of the GLSPF was $3,926,077 with cumulative earnings of $428,072. December 31, 2021 Portfolio Value $3,926,077 4% of Portfolio Value $157,043 Cumulative Earnings $766,941 FY21 Allowable Transfer $157,043 The FY22 budgeted transfer amount was $148,315. This Ordinance will increase the budgeted transfer amount to the maximum value of $157,043, an increase of $8,728. Your support for Ordinance 3272-2022 is respectfully requested. Page 109 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Meghan Thibodeau, Deputy City Clerk DATE: January 25, 2022 SUBJECT: Mini-Grant Steering Committee Appointment Sarah Douthit has submitted an application expressing interest in serving on the Mini-Grant Steering Committee. Mayor Gabriel has requested this applicant be added to the meeting agenda for nomination and consideration by Council for confirmation. Kenai Municipal Code (KMC) requires Council confirmation of nominations presented by the Mayor (KMC 1.90.010). Your consideration is appreciated. Page 110 From:Sarah Douthit To:City Clerk Subject:Form submission from: Commission/Committee Application Date:Tuesday, January 4, 2022 7:51:13 PM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Submitted on Tuesday, January 4, 2022 - 7:51pm Submitted by anonymous user: 206.174.127.14 Submitted values are: Date Tue, 01/04/2022 Name Sarah Douthit Resident of City of Kenai? Yes If resident, how long? 12 years + Residence Address Mailing Address Home Telephone 907-252-8843 Home Fax Business Telephone Business Fax Email address sarah@douthits.com May we include your contact information on our website? Yes, but not all (specify below) If not all, what may we include? Not home address please Employer Kenai Peninsula Driving Instruction Job Title Enrollment Specialist Name of Spouse Alexander Douthit Current Membership Organization City of Kenai Beautification Committee Past organizational memberships Committees or commissions in which you are interested Mini-Grant Steering Committee Why do you want to be involved with this commission or committee? In the last couple years I have become interested in grants and the grant process. I'm also am interested in our community and encouraging community members to better our community. Therefore I believe I could be a valuable community member to this committee and offer assistance in the grant distribution process. What background, experience, or credentials do you possess to bring the board, commission, or committee membership? I attended a seminar on grant writing so I'm familiar with the grant process. I also have 12 years of accounting experience and have been a Kenai resident for more than 12 years. The results of this submission may be viewed at: https://www.kenai.city/node/2601/submission/9681 Page 111 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Paul Ostrander, City Manager DATE: January 25, 2022 SUBJECT: Discussion Item – Request to Schedule a Council Work Session for the Draft Land Management Plan In 2018, City Council approved a City-wide approach to land management through the development of the City’s first Land Management Plan. Since that time, Administration has worked diligently to draft a Land Management Plan to inventory, evaluate, and develop recommendations related to City-owned lands. Most recently, the Draft Land Management Plan has been reviewed by several City Commissions and Committees, including a Special Joint meeting of the Parks and Recreation Commission and Beautification Committee, the Harbor Commission, the Airport Commission, and the Planning and Zoning Commission. Each of these commissions has provided a resolution recommending approval of the Land Management Plan, including additional amendments to the plan for consideration by Council. Administration is looking to schedule a Council Work Session to present and discuss the recommendations of the City Commissions and Committees and discuss any additional comments Council and the public may have on the draft plan. The next available dates for a work session are February 15, 22, 24, and 28. Your consideration is appreciated. Page 112 KENAI COUNCIL ON AGING REGULAR MEETING JANUARY 13, 2022 – 3:00 P.M. KENAI SENIOR CENTER MEETING SUMMARY 1. CALL TO ORDER The meeting was called to order at 3:00 p.m. a. Pledge of Allegiance Committee led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Members Present: Williams, Geller, Modigh, Kilfoyle Members Absent: Thornton, Craig No quorum was present. Staff/Council Liaison Present: Senior Center Director Romain, Administrative Assistant R. A. Piersee, Activity/Volunteer Coordinator K. Feltman, Council Liaison Knackstedt, City Clerk S. Saner, Public Works Director S. Curtin c. Agenda Approval d. Election of Chair and Vice-Chair 2. SCHEDULED PUBLIC COMMENTS – None. 3. UNSCHEDULED PUBLIC COMMENT -- None. 4. APPROVAL OF MEETING SUMMARY a. August 12, 2021 b. November 10, 2021 5. UNFINISHED BUSINESS -- None. 6. NEW BUSINESS a. Discussion – Backup Generator for Vintage Pointe Manor 7. REPORTS a. Senior Center Director b. Council on Aging Chair c. City Council Liaison 8. NEXT MEETING ATTENDANCE NOTIFICATION – February 10, 2022 Page 113 Council on Aging Meeting Page 2 of 2 January 13, 2022 9. COUNCIL MEMBERS COMMENTS AND QUESTIONS 10. ADDITIONAL PUBLIC COMMENT 11. INFORMATION ITEMS – None. 12. ADJOURNMENT Due to lack of a quorum, the meeting was adjourned at 3:02pm. Meeting summary prepared and submitted by: _____________________________________ Meghan Thibodeau Deputy City Clerk Page 114 KENAI AIRPORT COMMISSION REGULAR MEETING JANUARY 13, 2022 – 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 6:00 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, D. Pitts, P. Minelga, J. Zirul, J. Bielefeld, J. Caldwell, J. Daily Staff/Council Liaison Present: Airport Manager E. Conway, Administrative Assistant E. Brincefield, Planning Director R. Foster, Council Liaison Baisden, Deputy Clerk Meghan Thibodeau, City Manager Ostrander A quorum was present. c. Agenda Approval MOTION: Commissioner Minelga MOVED to approve the agenda and Commissioner Pitts SECONDED the motion. There were no objections; SO ORDERED. d. Election of Chair and Vice Chair Commissioner Zirul MOVED to reappoint Chair Feeken; Commissioner Bielfeld SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objections, SO ORDERED. Commissioner Pitts MOVED to appoint Vice-Chair Minelga; Commissioner Daily SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objections, SO ORDERED. 2. SCHEDULED PUBLIC COMMENT – None. Page 115 ____________________________________________________________________________________ Airport Commission Meeting Page 2 of 5 January 13, 2022 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. November 9, 2021 MOTION: Vice Chair Minelga MOVED to approve the meeting summary of November 9, 2021 Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. b. December 9, 2021 MOTION: Vice Chair Minelga MOVED to approve the meeting summaries of December 9, 2021 Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Discussion/Recommendation – Resolution No. AC21-01 – Recommending the Council of the City of Kenai Approve and Adopt the City of Kenai Land Management Plan. [Clerk's Note: At the November 9th Meeting, this Resolution was Postponed; a Motion to Enact is On the Floor.] Clarification was provided that all new leases are tied to Consumer Price Index adjustment annually, and all leases will go 6.35% and will be adjusted at the beginning of the fiscal year. Director Foster noting additional information provided by Administration, including explanations of Titles 21 and 22, zoning, intent of the Land Management Plan (LMP), examples of motions, and a requested amendment with housekeeping changes. City Manager Ostrander provided further clarification on the implementation plan that will follow Council’s approval of the final LMP. It was noted that Parcel 4101004 on Map 16 currently has a recommendation to retain, and is mostly wetland but has portions which are suitable for development. MOTION TO AMEND: Commissioner Zirul MOVED to change the recommendation for parcel 04101004 on Map 16 to Mixed—Retain/Dispose—Lease Only. Commissioner Caldwell SECONDED the motion. The definition of Mixed—Retain/Dispose—Lease Only was explained. It was noted that further recommendations can be made in the future; the Planning & Zoning Department will be consistently updating the plan, and there may be opportunities for large-scale changes in the future my by resolution. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There were no objections; SO ORDERED. Page 116 ____________________________________________________________________________________ Airport Commission Meeting Page 3 of 5 January 13, 2022 MOTION TO AMEND: Commissioner Zirul MOVED to change the recommendation for parcel 04322023 on Map 23 to Dispose—Lease Only. Commissioner Bielefeld SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There were no objections; SO ORDERED. It was noted that the City may should subdivide some properties on Map 16 so that North Willow Street connects to Marathon Road correctly; City Manager Ostrander confirmed that this project is already underway. Clarification was provided that on Map 17, parcels on either side of Coral Street have different recommendations because the City has a release from the FAA for long-term lease but do not have consent for sale; this is something the City could pursue. Preference was expressed for some parcels to be consolidated into one piece of property instead of having a patchwork of lands within the Airport Reserve. It was noted that parcel 04327036 encompasses ballfields, which the City is managing as a softball field and there is currently no lease. Recent changes to parcel land boundaries on Map 22 were noted, and it was clarified that any changes that occurred since this draft of the LMP was created would be updated for the final draft. Discussion involved parking for transient jets, ramp space and fees; related reasons for the current parcel lines were considered. Lease rates were discussed, and it was noted that leases of City land require development. It was clarified that if someone wanted to lease a parcel recommended as Retain, Council has the power to change that. MOTION TO AMEND: Commissioner Minelga MOVED to amend Resolution No. AC21-01 with the following changes: • Amend the Title to read: A Resolution of The Airport Commission of the City of Kenai Recommending the Council of the City of Kenai Adopt the City of Kenai Land Management Plan; • Delete the seventh whereas in its entirety; • Insert a new seventh whereas to read: WHEREAS, after reviewing the plan as presented on November 9, 2021, the Airport Commission has recommended amendments for consideration by City Council.; • Amend Section 1 to read: The Draft of the City of Kenai Land Management Plan is hereby recommended for adoption with the following amendments: Commissioner Zirul SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There were no objections; SO ORDERED. Page 117 ____________________________________________________________________________________ Airport Commission Meeting Page 4 of 5 January 13, 2022 UNANIMOUS CONSENT was requested. VOTE ON MAIN MOTION AS AMENDED: There were no objections; SO ORDERED. 6. NEW BUSINESS – None 7. REPORTS a. Airport Manager – Airport Manager Conway reported on the following: • Assailant who damaged the Granite Point Court gate has been arraigned. The airport has put forth an application for restitution, and the gate is not yet operational; • Applications are being considered for candidates interested in managing the Alaska Regional Fire Training Center; • Enplanements in December 2021 are down compared to 2019, Parking revenue in December 2021 is up from 2019. b. City Council Liaison – Council Member Baisden reported on actions taken during the January 5, 2022 City Council Meeting and January 10, 2022 work session on FY2023 Budget Goals. 8. NEXT MEETING ATTENDANCE NOTIFICATION – February 10, 2022 Commissioner Zirul noted he may attend via Zoom. 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioner Zirul congratulated Director Foster, City Manager Ostrander and Airport Manager Conway, noting this has been long process to get finalized and will help with strategic planning. Commissioner Pitts commended Administration for their hard work. Vice Chair Minelga welcomed new commissioners; noted that the LMP document was a lot of work . Discussed past project to redo fencing around Airport, and requested an update. Chair Feeken noted that this inventory will be an amazing tool. 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS a. Manager’s Mid-Month Report 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:59 p.m. Meeting summary prepared and submitted by: Page 118 ____________________________________________________________________________________ Airport Commission Meeting Page 5 of 5 January 13, 2022 ________________________ Meghan Thibodeau Deputy City Clerk Page 119 KENAI HARBOR COMMISSION SPECIAL MEETING JANUARY 11, 2022 – 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: M. Dunn, C. Hutchison, B. N. Berga, B. Peters, D. Peck, Askin Commissioners absent: B. Bornemann Staff/Council Liaison present: Public Works Director S. Curtin, City Manager P. Ostrander, Public Works Administrative Assistant L. List, Deputy City Clerk M. Thibodeau, Planning Director R. Foster, Council Liaison G. Pettey A quorum was present. c. Agenda Approval Chair Dunn noted that item 3. needed to be changed from NEW BUSINESS to UNFINISHED BUSINESS, and noted the following additions to the packet: Add to Item 3.a Discussion/Recommendation – Resolution HC21-01 • LMP Requested Information • Amendment Memo MOTION: Commissioner Hutchison MOVED to approve the agenda with the requested revisions and Vice Chair Berga SECONDED the motion. There were no objections; SO ORDERED. 2. UNSCHEDULED PUBLIC COMMENT – None. 3. UNFINISHED BUSINESS a. Discussion/Recommendation – Resolution No. HC21-01 – Recommending the Page 120 ____________________________________________________________________________________ Harbor Commission Meeting Page 2 of 3 January 11, 2022 Council of the City of Kenai Approve and Adopt the City of Kenai Land Management Plan [Clerk's Note: At the November 8th Meeting, this Resolution was Postponed to this Meeting; a Motion to Enact is On the Floor.] Director Foster noting additional information provided by Administration, including explanations of Titles 21 and 22, zoning, intent of the Land Management Plan (LMP), examples of motions, and a requested amendment with date changes. City Manager Ostrander provided further clarification on the implementation plan that will follow Council’s approval of the final LMP. It was noted that maintenance of the LMP will be handled by the Planning & Zoning Department, who will update the plan when land is disposed, acquired, or recommendation altered. Clarification was provided on restrictive plat notes, and that these are included in the database and GIS map which will be publicly available in the future. It was noted that anything deed restrictions that involve the Kenai Peninsula Borough, the Federal Aviation Administration, or Bureau of Land Management will have to go through their processes before disposal of property. It was clarified that approval of the plan would not affect any current leases, and all leases are in the parcel notes. MOTION TO AMEND : Commissioner Hutchison MOVED to amend Resolution No. HC21-01 with the following changes: • Amend the Title to read: A Resolution of The Harbor Commission of the City of Kenai Recommending the Council of the City of Kenai Adopt the City of Kenai Land Management Plan; • Delete the seventh whereas in its entirety; • Insert a new seventh whereas to read: WHEREAS, after reviewing the plan as presented on November 8, 2021, the Harbor Commission has recommended adoption.; • Amend Section 1 to read: The Draft of the City of Kenai Land Management Plan is hereby recommended for adoption. Commissioner Askin SECONDED the motion. VOTE ON AMENDMENT: There were no objections; SO ORDERED. VOTE ON MAIN MOTION AS AMENDED: There were no objections; SO ORDERED. 4. NEXT MEETING ATTENDANCE NOTIFICATION – February 7, 2022 5. COMMISSIONER COMMENTS AND QUESTIONS Commissioner Peters wished everyone a happy New Year. Commissioner Peck thanked Commissioner Peters for the Christmas card. Noted that he hoped that existing land use of waterfront properties will be grandfathered in prior to waterfront revitalization. Commissioner Hutchison noted that she appreciated the Council and Administration for accepting that commissions are volunteers and private citizens that can serve without strict requirements. Thanked Commissioner Peters for the card. Commissioner Askin expressed excitement for the Land Management Plan. Page 121 ____________________________________________________________________________________ Harbor Commission Meeting Page 3 of 3 January 11, 2022 Vice Chair Berga thanked Director Foster for his work, noting that he initially had concerns which were cleared up and now feels comfortable with where the LMP is at. 6. ADDITIONAL PUBLIC COMMENT 7. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at approximately 6:36 p.m. Meeting summary prepared and submitted by: _____________________________________ Meghan Thibodeau Deputy City Clerk Page 122 KENAI PARKS & RECREATION COMMISSION BEAUTIFICATION COMMITTEE JOINT SPECIAL MEETING JANUARY 6, 2022 – 6:00 PM KENAI CITY COUNCIL CHAMBERS VICE CHAIR T. GRANT WISNIEWSKI, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Vice Chair Wisniewski called the meeting to order at 6:00 p.m. a. Pledge of Allegiance Vice Chair Wisniewski led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Parks and Recreation Commissioners present: C. Stephens, T. Wisniewski, D. Rigall, S. Kisena Beautification Committee L. Gabriel, B. Roland, E. Heale, J. Phillips, S. Douthit, C. Members present: Warner Staff/Council Liaison present: Parks & Recreation Administrative Assistant T. Best, City Manager P. Ostrander, Planning Director R. Foster, Deputy Clerk M. Thibodeau, Council Liaison J. Glendening, Council Liaison D. Sounart A quorum was present. c. Agenda Approval Vice Chair Wisniewski noted the following additions to the packet: Add to Item 3.a Discussion/Recommendation – Resolution PRB21-01 • LMP Requested Information • Amendment Memo MOTION: Chair Gabriel MOVED to approve the agenda as presented and Chair Stephens SECONDED the motion. There were no objections; SO ORDERED. 2. UNSCHEDULED PUBLIC COMMENT – None. 3. UNFINISHED BUSINESS a. Discussion/Recommendation – Joint Resolution No. PRB21-01 – Recommending the Council of the City of Kenai Approve and Adopt the City of Kenai Land Management Plan. [Clerk's Note: At the November 4th Meeting, this Resolution was Postponed to this Meeting; a Motion to Enact is On the Page 123 _____________________________________________________________________________________________ Parks and Recreation Commission Beautification Committee Joint Special Meeting Page 2 of 5 January 6, 2022 Floor.] Director Foster noting additional information provided by Administration, including explanations of Titles 21 and 22, zoning, intent of the Land Management Plan (LMP), examples of motions, and a requested amendment with housekeeping changes. City Manager Ostrander provided further clarification on the implementation plan that will follow Council’s approval of the final LMP. MOTION TO AMEND: Commissioner Kisena MOVED to change the recommendation for parcels 04314103 and 04314104 on Map 8 to Retain, for the purpose of a future sports complex. Chair Gabriel SECONDED the motion. Clarification was provided that this land is under the Airport Reserve, so it would need the general fund to compensate the Airport fund if it was to be retained by Parks. The motion to amend was withdrawn with consent of the second. Support was expressed for a future sports complex, and they considered what other parcels could be used. The suitability of the name “Land Management Plan” and its recommendation definitions were questioned. The definition of the recommendation to Dispose was explained, and it was noted that Council has ultimate decision before a property is disposed. It was clarified the plan itself takes no action, and the forthcoming implementation plan would not put land up for sale. The Commission and Committee discussed parcels on Map 17, considering parking for softball events, food vendors, and parcels currently under Special Use Permits. Clarification was provided on the Title 21 requirement for Airport Reserve lands to benefit the Airport and community. It was noted that a comprehensive Parks Plan could help guide these decisions in the future. MOTION TO AMEND: Commissioner Kisena MOVED to change the recommendation for parcel 04316017 on Map 10 to Retain, for the purpose of a future campground. Chair Gabriel SECONDED the motion. Discussion involved how a campground could generate revenue and serve the fishery, whether the space was adequate for this use, and how it may affect surrounding neighborhoods. VOTE ON AMENDMENT: YEA: Stephens, Wisniewski, Kisena, Rigall, Gabriel, Roland, Phillips, Douthit, Warner, Heale NAY: MOTION PASSED UNANIMOUSLY. Page 124 _____________________________________________________________________________________________ Parks and Recreation Commission Beautification Committee Joint Special Meeting Page 3 of 5 January 6, 2022 MOTION TO AMEND: Commissioner Rigall MOVED to change the title of the City of Kenai Land Management Plan to the City of Kenai Land Management Inventory and Recommendations. Chair Gabriel SECONDED the motion. It was noted that this would clarify that it is not a governing document. VOTE ON AMENDMENT: YEA: Stephens, Wisniewski, Kisena, Rigall, Gabriel, Roland, Douthit, Warner, Heale NAY: Phillips MOTION PASSED. MOTION TO AMEND: Commissioner Rigall MOVED to change the designation of “Dispose” in the Land Management Plan to “Disposable.” Chair Gabriel SECONDED the motion. VOTE ON AMENDMENT: YEA: Rigall, Douthit NAY: Stephens, Wisniewski, Kisena, Gabriel, Roland, Warner, Heale, Phillips MOTION FAILED. It was noted that the term Dispose can be misleading, and clarification was provided that Dispose is defined in the LMP and the term is also used in City Code. MOTION TO AMEND: Commissioner Kisena MOVED to change the recommendation for parcels 04312004 and 04312008 on Map 13 to Retain, for the purpose of a future campground. Chair Gabriel SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There were no objections; SO ORDERED. MOTION TO AMEND: Commissioner Kisena MOVED that the recommendation for 04327030, 04327031 and 04327032 on Map 17 remain as Retain, but the management intent of those parcels is such that parking would be allowed to support the adjacent softball fields. Chair Stephens SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There were no objections; SO ORDERED. Page 125 _____________________________________________________________________________________________ Parks and Recreation Commission Beautification Committee Joint Special Meeting Page 4 of 5 January 6, 2022 MOTION TO AMEND: Commissioner Kisena MOVED to change the recommendation for parcels 04506006 and 04506008 to Retain, for the purpose of trade with the Kenai Peninsula Borough for parcels on Map 8. Chair Gabriel SECONDED the motion. It was discussed how Dispose may be the more appropriate recommendation for parcels intended to be traded. The motion to amend was withdrawn with consent of the second. City Manager Ostrander stated that he would include trade in the definition of Dispose. Parcel 04075602 on Map 28 was considered, and it was explained that in past years the Kenai Outdoor Opportunity Location (KOOL) Subcommittee had developed a conceptual design for Millennium Square. MOTION TO AMEND: Committee Member Douthit MOVED to amend Resolution No. PRB21-01 with the following changes: • Amend the Title to read: A Resolution of The Parks & Recreation Commission and Beautification Committee of the City of Kenai Recommending the Council of the City of Kenai Adopt the City of Kenai Land Management Plan; • Delete the seventh whereas in its entirety; • Insert a new seventh whereas to read: WHEREAS, after reviewing the plan as presented on November 4, 2021, the Parks & Recreation Commission and Beautification Committee has recommended amendments for consideration by City Council.; • Amend Section 1 to read: The Draft of the City of Kenai Land Management Plan is hereby recommended for adoption with the following amendments: Chair Gabriel SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON AMENDMENT: There were no objections; SO ORDERED. UNANIMOUS CONSENT was requested. VOTE ON MAIN MOTION AS AMENDED: There were no objections; SO ORDERED. 4. COMMISSION QUESTIONS & COMMENTS Commissioner Kisena thanked Administration for their hard work. Committee Member Warner thanked Administration for their hard work. Chair Gabriel thanked Administration for their hard work. 5. ADDITIONAL PUBLIC COMMENT Page 126 _____________________________________________________________________________________________ Parks and Recreation Commission Beautification Committee Joint Special Meeting Page 5 of 5 January 6, 2022 Council Members Glendening and Winger thanked the Commission and Committee Members for their hard work. Council Member Winger expressed concern for putting a campground in a residential neighborhood. 6. INFORMATION ITEMS – None. 7. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 8:10 p.m. Meeting summary prepared and submitted by: ___________________________________ Meghan Thibodeau Deputy City Clerk Page 127 A. CALL TO ORDER KENAI PLANNING & ZONING COMMISSION REGULAR MEETING JANUARY 12, 2022 -7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA CHAIR JEFF TWAIT, PRESIDING MINUTES Chair Twait called the meeting to order at 7:00 p.m. 1. Pledge of Alleg iance Chair Twait led those assembled in the Pledge of the Allegiance. 2. Roll Call Commissioners present: J . Twait, A. Douthit, G. Woodard, A. Douthit, J . Halstead , R. Springer, G . Greenberg Commissioners absent: D. Fikes Staff/Council Liaison present: Planning Director R. Foster, City Manager P. Ostrander, Deputy City Clerk M. Thibodeau , Council Member J . Glendening A quorum was present. 3. Agenda Approval MOTION: Commissioner Halstead MOVED to approve t he agenda and Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. 4. Election of Chair and Vice-Chair Chair Twait encouraged any commissioners to consider the Chair or Vice-Chair position if they were interested. Because not all members of the commission were present, it was decided to hold the election of Chair and Vice-Chair at their next regular meeting. 5. Consent Agenda MOTION: Commissioner Halstead MOVED to approve the consent agenda and Commissioner Woodard SECONDED the motion. There were no objections; SO ORDERED. Page 128 *All items listed with an asterisk(*) are considered to be routine and non-controversial by the Commission and will be approved by one motion . There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 6 . *Excused absences -None B. APPROVAL OF MINUTES 1. *Regular Meeting of December 8, 2021 Approved by the consent agenda . 2. *Regular Meeting of December 22, 2021 Approved by the consent agenda. C. SCHEDULED PUBLIC COMMENT -None. D. UNSCHEDULED PUBLIC COMMENT -None . E. CONSIDERATION OF PLATS-None. F. PUBLIC HEARINGS 1. Reso lution PZ2022-01 -Application for a Conditional Use Permit for Cabin Rentals for the property described as North 70 ft of South 140 ft of Government Lot 166, located at 104 N Tinker Lane, Kenai, Alaska 99611 . The application was submitted by Bill Elmore, P.O . Box 1531 , Kenai, Alaska 99611 . MOTION: Commissioner Halstead MOVED to approve Resolution No . PZ2022-01 and Commissioner Douthit SECONDED the motion . Dale Elmore provided a background on the property, noting that it was the estate of his wife 's father and was previously the Brown Bear Gun Shop . He explained that he wants to make the property a vacation rental, while maintaining the log cabin as a historical structure and tribute to his father-in-law, and wants it to be a destination for people who come to Kenai. Planning Director Foster presented his staff report with information provided in packet explaining that the applicant wishes to obtain a conditional use permit for cabin rentals . The criteria for conditional use permits was reviewed; it was noted the application met the criteria and City staff recommends approval subject to the following conditions: 1. Further development of the property shall conform to all federal, State of Alaska , and local regulations. 2. Prior to starting operations, a landscape/site plan must be reviewed and approved by the Planning Director. Planning and Zoning Commission Meeting January 12, 2022 Page 2 of 5 Page 129 3. Prior to beginning construction of any new structures , a building permit must be issue by the Building Official for the City of Kenai. Any renovations must check in with the Building Official regarding any required building permits. 4. Standards for commercial marijuana establishments per KMC14.20 .330 must be ma intained . 5. A yearly Condi ti onal Use Perm it report must be submitted to the City of Kenai prior to the 31st day of December of each year. 6. The applicant will meet with City staff for on -site inspections when requested . 7. If there is a change of use for the above described property a new Conditional Use Permit must be obtained, pursuant to 14.20 .150(1)(5). 8. Pursuant to KMC 14.20.150(1 )(2 ), this permit shall expire automatically upo n termination or interruption of the use for a period of at least one year. 9 . Failure to provide documentation to the City for meeting these conditions shall be grounds for the suspension or revocation of the conditional use permit. Chair Twait opened for public hearing . Mosaddeque Reza expressed concern about traffic, noting there was no speed limit sign on that road . He asked if there will be any on-site management to ensure there will be no trash left out , if there is the possibility of it turning into a hotel , and if there will be increased presence of police officers. There being no one else wishing to be heard, the public hearing was closed . In response to commissioner questions , Dale Elmore clarified that he had no plans to build add itional cabins on this property; that the build ing would have two beds and two baths; that he there would not be on-s ite management but there is a plan for management , cleaning and trash ; and that he resides locally. It was noted that his will be a great opportunity to use a vacant property with a good business plan that keeps the neighborhood in mind, and appreciation was expressed for the owner's intent of maintaining the building as a historic property . MOTION TO AMEND: Commissioner Douthit MOVED to amend Resolution PZ2022-01 to add a condition of quiet hours of 10pm-6am. Commissioner Woodard SECONDED the motion. VOTE ON AMENDMEN T : YEA: Springer, Halstead , Woodard, Douth it , Greenberg, Twa it NAY: VOTE ON MAIN MOTION AS AMENDED: YEA: Halstead, Woodard, Douthit , Greenberg , Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. Pl a nn in g and Z o ni ng Commissio n Me et ing Janu ary 12, 2022 Page 3 of 5 Page 130 Chair Twait noted the fifteen-day appeal period . The Commission encouraged Mr. Reza to contact the City of Kenai Streets Department if he wants to pursue installation of a new speed limit sign. G. NEW BUSINESS -None. H. UNFINISHED BUSINESS 1. Resolution PZ2021 -39 -Recommending the Council of the City of Kenai Approve and Adopt the City of Kenai Land Management Plan. [Clerk's Note: At the December 22nd Meeting, this Resolution was Postponed to this Meeting; a Motion to Enact is On the Floor.] Chair Twait opened for public hearing; there being no one wishing to be heard , the public hearing was closed. Director Foster noting additional information provided by Administration that addresses the intent of the Land Management Plan (LMP), examples of motions, and a requested amendment with housekeeping changes. City Manager Ostrander provided further clarification on the implementation plan that will follow Council's approval of the fina l LMP , and the status of other commissions ' resolutions recommending the LMP . MOTION: Commissioner Douthit MOVED to postpone Resolution No. PZ2021-39 until January 26, 2022 and Commissioner Woodard SECONDED the motion. UNANIMOUS CONSENT was requested . VOTE: There were no objections; SO ORDERED. I. PENDING ITEMS -None. J. REPORTS 1. City Council -Vice Mayor Glendening noted he is pleased with the involvement of the commission, and reviewed the actions of the January 5, 2022 City Council meeting. 2. Borough Planning -No report. 3. City Administration -Planning Director Foster reported on the following: • Noted the letter in the Informational Items and explained how the code violation had been remedied; • Noted KMC Chapter 12.10 Nuisances in General in the Informational Items that was requested; • Provided information regarding marijuana tax as requested ; • The next Planning & Zoning Commission regular meeting will include two pla t s, the continuation of LMP discussion, and the election of Chair and Vice Chair. Planning and Zoning Commission Meeting January 12, 2022 Page 4 of 5 Page 131 K. ADDITIONAL PUBLIC COMMENT Mosaddeque Reza provided further information on the street signs near his property. L. INFORMATIONAL ITEMS 1. Code Violation Remedy Letter -1005 Angler 2 . KMC Chapter 12.10 Nuisances in General M. NEXT MEETING ATTENDANCE NOTIFICATION 1. January 26, 2022 N. COMMISSION COMMENTS & QUESTIONS Commissioner Woodard noted that she was thankful to be re-appointed for another term. Commissioner Halstead noted that he appreciates having Chair Twait and Vice Chair Fikes . Commissioner Greenberg welcomed City Clerk Saner. Chair Twait thanked City Manager Ostrander for attending the meeting . 0. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:59 p.m . Minutes prepared and submitted by: ~ Deputy City Clerk Planning and Zoning Commission Meeting January 12, 2022 Page 5 of 5 Page 132 MEMORANDUM TO: Paul Ostrander, City Manager FROM: Riley Shurtleff, Temporary Grant Writer DATE: January 24, 2022 SUBJECT: Grant Applications Status Update Through the end of 2021, the City of Kenai has pursued grant opportunities for funding of large scale capital projects. Dedicated time to locating, researching, and authoring grant applications has resulted in the following: A total of 4 complete, reviewed applications have been submitted. If successful, these applications may provide up to $5,814,010 in funding towards the Bluffs Stabilization Project, General Fund via Revenue Relief and other goals as listed. $30,619.03 has been awarded out of the total applied for to date. In 2022 a separate application for funding through the Economic Development Administration is being pursued towards a large scale Airport Expansion Project. If successful, this application may provide up to $4.48 million in investment for a shovel ready project that will generate jobs and revenue within the City, less the required 20% match. Further applications are in the research stage and more information will be forthcoming. It is anticipated that a number of City Capital Projects will qualify for funding in the nationwide Infrastructure Bill that was passed in December. Additional Notice of Funding Opportunities will be explored and pursued following process decisions at the Federal and State levels. Page 133 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 26, 2022 SUBJECT: Quarterly Financial Report Attached is a relatively easily produced quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of December 31, 2021. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough through November. The fourth calendar quarter 2021 sales tax filings and tax payments are not in at this point and we will not be received for this quarter until the end of January or early February. State and Federal revenues are below budget in all funds because of PERS aid. The State doesn’t actually give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly, we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we will record revenue and expenditures for these items. Page 134 Quarterly General Fund Expenditure Report For Quarter Ended December 31, 2021 Original * FY2021 FY2022 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 2,996,973$ 3,262,337$ 408,975$ (2,853,362)$ 12.54% Taxes 12,467,966 11,894,795 11,894,795 7,041,141 (4,853,654) 59.20% Licenses/Permits and Ambulance 641,344 676,000 676,000 324,128 (351,872) 47.95% State/Federal 933,911 872,649 952,212 129,068 (823,144) 13.55% Dock/Multipurpose/Miscellaneous 171,920 198,000 198,000 128,604 (69,396) 64.95% Fines and Forfeitures 90,281 87,500 87,500 91,454 3,954 104.52% Interest and Miscellaneous 418,456 495,631 497,231 406,465 (90,766) 81.75% Transfers/Central Admin Fees 1,919,243 1,886,515 1,886,515 949,700 (936,815) 50.34% Total Revenues 16,643,121 19,108,063 19,454,590 9,479,535 (9,975,055) 48.73% EXPENDITURES & TRANSFERS General Government 01 City Clerk 283,478$ 330,235$ 338,685$ 162,723$ 175,962$ 51.95% 11 Legislative 143,115 202,739 202,739 123,208 79,531 39.23% 12 Legal 323,175 373,165 373,165 167,070 206,095 55.23% 13 City Manager 398,747 522,983 522,983 245,361 277,622 53.08% 14 Human Resources 176,877 185,854 185,854 90,470 95,384 51.32% 15 Finance 742,965 838,269 838,269 393,669 444,600 53.04% 16 Land Administration 3,111 12,140 107,176 568 106,608 99.47% 18 Non-Departmental 1,894,692 1,279,842 1,279,806 571,625 708,181 55.34% 19 Planning and Zoning 202,154 291,640 291,640 102,884 188,756 64.72% 20 Safety 890 2,900 2,900 - 2,900 100.00% Total General Government 4,169,204 4,039,767 4,143,217 1,857,578 2,285,639 55.17% Public Safety 21 Police 1,892,090 3,498,535 3,502,792 1,519,977 1,982,815 56.61% 22 Fire 1,884,884 3,332,557 3,429,266 1,577,150 1,852,116 54.01% 23 Communications 457,533 902,084 902,084 418,991 483,093 53.55% 29 Animal Control 420,148 460,808 460,808 222,909 237,899 51.63% Total Public Safety 4,654,655 8,193,984 8,294,950 3,739,027 4,555,923 54.92% Public Works 31 Public Works Administration 186,660 161,966 161,966 77,597 84,369 52.09% 32 Shop 595,132 661,366 661,366 278,302 383,064 57.92% 33 Streets 994,012 961,983 961,983 309,859 652,124 67.79% 34 Buildings 360,192 491,284 491,284 93,454 397,830 80.98% 35 Street Lighting 179,657 201,913 201,913 78,485 123,428 61.13% 60 Dock 32,156 64,993 64,993 14,959 50,034 76.98% Total Public Works 2,347,809 2,543,505 2,543,505 852,656 1,690,849 66.48% Parks and Recreation & Culture 03 Visitor Center 139,222 146,843 146,843 62,766 84,077 57.26% 40 Library 822,085 936,183 951,759 425,847 525,912 55.26% 45 Parks, Recreation & Beautification 1,102,360 1,175,406 1,175,406 474,260 701,146 59.65% Total Parks and Recreation & Culture 2,063,667 2,258,432 2,274,008 962,873 1,311,135 57.66% Total Operating Expenditures 13,235,335 17,035,688 17,255,680 7,412,134 9,843,546 57.05% Transfer to other funds Street Improvement Capital Project Fund 1,116,560 78,387 102,784 102,784 - 0.00% Kenai Recreation Center Capital Project Fund 60,000 1,036,000 1,113,275 1,113,275 - 0.00% Animal Shelter Capital Project Fund - 40,000 40,000 40,000 - 0.00% Public Safety Building Capital Proj. Fund - 50,000 50,000 50,000 - 0.00% Public Safety Capital Project Fund 22,388 175,000 175,000 175,000 - 0.00% Kenai Multipurpose Facility Capiral Proj. Fund 152,259 - - - - - Library Improvement Capital Proj. Fund 58,000 - - - - - Visitor Center Improvement Capital Proj. Fund 182,000 - - - - - Information Technology Capital Proj. Fund 35,000 - - - - - City Hall Improvement Capital Proj. Fund 210,000 - - - - - Kenai Fine Arts Center Imp. Cap. Proj. Fund 120,000 - 24,863 24,863 - 0.00% Kenai Cemetery Imp. Capital Project Fund - 260,000 260,000 260,000 - 0.00% Kenai Senior Center Imp. Capital Project Fund - 82,845 82,845 82,845 - 0.00% Senior Citizen Special Revenue Fund 185,563 220,518 220,518 110,259 110,259 50.00% Debt Service 114,906 129,625 129,625 108,375 21,250 16.39% Total Transfer to other funds 2,256,676 2,072,375 2,198,910 2,067,401 131,509 5.98% Total Expenditures & Transfers 15,492,011 19,108,063 19,454,590 9,479,535 9,975,055 51.27% Net Revenues over(under) Expenditures 1,151,110$ -$ -$ -$ -$ * Note: The original budget includes outstanding encumbrances at 6/30/2021. Page 135 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended December 31, 2021 Original * FY2021 FY2022 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 30,658$ 30,658$ -$ (30,658)$ -100.00% Beach Parking 175,979 183,775 183,775 161,580 (22,195) -12.08% Beach Camping 214,248 179,725 179,725 186,387 6,662 3.71% Dock Launch & Park 115,304 109,600 109,600 95,345 (14,255) -13.01% Dock Parking Only 13,377 13,400 13,400 10,641 (2,759) -20.59% Participant Drop-off Fee 4,792 4,205 4,205 4,019 (186) -4.42% Interest Earnings 469 750 750 - (750) -100.00% PERS Grant 3,969 4,696 4,696 - (4,696) -100.00% Credit Card Fees (12,807) (13,000) (13,000) (11,087) 1,913 -14.72% Transfer from Other Funds 2,215 - - - - 0.00% Total Revenue 517,546 513,809 513,809 446,885 (66,924) -13.03% EXPENDITURES & TRANSFERS Public Safety 79,278$ 106,173$ 106,173$ 87,735$ 18,438$ 17.37% Streets 36,127 53,332 53,332 27,736 25,596 47.99% Boating Facility 50,089 52,588 52,330 63,438 (11,108) -21.23% Parks, Recreation & Beautification 187,793 196,800 225,138 126,050 99,088 44.01% Total Operating Expenditures 353,287 408,893 436,973 304,959 132,014 30.21% Transfers to Other Funds 88,724 125,000 96,920 96,920 - 0.00% Total Expenditures & Transfers 442,011 533,893 533,893 401,879 132,014 24.73% Net Revenues over Expenditures 75,535$ (20,084)$ (20,084)$ 45,006$ (65,090)$ * Note: The original budget includes outstanding encumbrances at 6/30/2021. Page 136 Quarterly Airport Fund Expenditure Report For Quarter Ended December 31, 2021 Original * FY2021 FY2022 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 1,037,704$ 1,060,809$ -$ (1,060,809)$ 0.00% State/Federal 1,278,200 975,411 975,411 441,539 (533,872) 45.27% Interest , Leases & Fees 715,024 718,049 718,049 528,161 (189,888) 73.56% Terminal Revenues 568,669 726,281 726,281 406,144 (320,137) 55.92% Landing Fees 262,661 300,874 300,874 196,980 (103,894) 65.47% Transfers In 1,075,573 1,012,722 1,012,722 881,161 (131,561) 87.01% Total Revenues 3,900,127 4,771,041 4,794,146 2,453,985 (2,340,161) 51.19% EXPENDITURES & TRANSFERS Terminal Area 606,123$ 617,684$ 646,870$ 256,466$ 390,404$ 60.35% Airfield 1,860,679 1,952,017 1,952,795 822,506 1,130,289 57.88% Administration 340,708 1,270,958 1,266,240 143,193 1,123,047 88.69% Other Buildings & Areas 181,399 191,242 186,242 57,303 128,939 69.23% Training Facility 29,487 54,140 56,999 10,995 46,004 80.71% Total Expenditures 3,018,396 4,086,041 4,109,146 1,290,463 2,818,683 68.60% Transfer to other funds Airport Improvement Capital Projects 2,131,758 685,000 685,000 685,000 - 0.00% Total Transfer to other funds 2,131,758 685,000 685,000 685,000 - 0.00% Total Expenditures & Transfers 5,150,154 4,771,041 4,794,146 1,975,463 2,818,683 58.79% Net Revenues over Expenditures (1,250,027)$ (0)$ (0)$ 478,522$ 478,522$ * Note: The original budget includes outstanding encumbrances at 6/30/2021. Page 137 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended December 31, 2021 Original * FY2021 FY2022 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 141,413$ 331,305$ 82,011$ (249,294)$ 24.75% State/Federal 52,403 52,873 52,873 - (52,873) 0.00% Water/Sewer Fees 2,884,047 2,955,597 2,955,597 1,567,873 (1,387,724) 53.05% Penalty and Interest (19) 41,600 41,600 14,041 (27,559) 33.75% Interest and Miscellaneous 11,368 15,480 15,480 16,259 779 105.03% Transfers In 23,496 - - - - 0.00% Total Revenues 2,971,295 3,206,963 3,396,855 1,680,184 (1,716,671) 49.46% EXPENDITURES & TRANSFERS Water 773,023$ 923,360$ 1,073,360$ 505,869$ 567,491$ 52.87% Sewer 406,204 538,061 538,061 175,921 362,140 67.30% Wastewater Treatment Plant 1,028,490 1,215,542 1,255,434 468,394 787,040 62.69% Total Expenditures 2,207,718 2,676,963 2,866,855 1,150,184 1,716,671 59.88% Transfer to other funds - Water & Sewer Capital Projects 1,770,615 530,000 530,000 530,000 - - Total Transfer to other funds 1,770,615 530,000 530,000 530,000 - - Total Expenditures & Transfers 3,978,333 3,206,963 3,396,855 1,680,184 1,716,671 50.54% Net Revenues over Expenditures (1,007,038)$ -$ -$ -$ -$ * Note: The original budget includes outstanding encumbrances at 6/30/2021. Page 138 Quarterly Senior Fund Expenditure Report For Quarter Ended December 31, 2021 Original * FY2021 FY2022 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 24,210$ 24,210$ 51,787$ 27,577$ 213.91% State Grants 259,786 238,442 263,442 133,888 (129,554) 50.82% Federal Grants 39,231 USDA Grant 20,954 20,000 20,000 5,139 (14,861) 25.70% Choice Waiver 109,725 125,000 125,000 32,903 (92,097) 26.32% KPB Grant 169,221 169,221 169,221 50,149 (119,072) 29.64% Rents & Leases 9,088 13,000 13,000 4,047 (8,953) 31.13% Miscellaneous Donations 13,825 25,000 25,000 5,288 (19,712) 21.15% Donations - Senior Connection 50,000 50,000 50,000 - (50,000) 0.00% Meal Donations 40,689 82,500 85,000 30,339 (54,661) 35.69% Ride Donations 125 7,000 7,000 1,470 (5,530) 21.00% Transfer from General Fund - Operations 185,563 220,518 220,518 110,259 (110,259) 50.00% Other 32,508 300 300 (30) (330) -10.00% Total Revenues 930,715 975,191 1,002,691 425,239 (577,452) 42.41% EXPENDITURES & TRANSFERS Senior Citizen Access 148,572$ 237,332$ 237,332$ 99,547$ 137,785$ 58.06% Congregate Meals 257,297 247,084 257,322 105,620 151,702 58.95% Home Meals 280,494 221,853 239,115 117,711 121,404 50.77% Senior Transportation 80,224 106,805 106,805 37,527 69,278 64.86% Choice Waiver 150,835 162,117 162,117 64,834 97,283 60.01% Total Expenditures 917,422 975,191 1,002,691 425,239 577,452 57.59% Transfer to other funds - - - - - - - Total Transfer to other funds - - - - - - Total Expenditures & Transfers 917,422 975,191 1,002,691 425,239 577,452 57.59% Net Revenues over Expenditures 13,293$ -$ -$ -$ -$ * Note: The original budget includes outstanding encumbrances at 6/30/2021. Page 139 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: January 24, 2022 SUBJECT: December 2021 Quarterly Investment Report City of Kenai Investment Portfolio At December 31, 2021 the City had investments with a market value of $30,584,781. That is up from $29,526,872 at September 30, 2021. The City’s portfolio is yielding 0.75% that is up from 0.69% at September 30, 2021. The Federal Reserve is expected to increase the Federal Funds Rate in early 2021 to combat inflation. A rise in interest rates has an inverse effect on the portfolio’s value. Currently the market has priced in a rate hike in March 2021 as evident in the negative change in the portfolio’s value. Fair market value adjustments to the portfolio through December 31, 2021 are a negative $132,046. As of June 30, 2021, the portfolios fair market value adjustment was a positive $129,071. As rates continue to rise further negative fair market value adjustments are expected but higher yield on the portfolio will also occur. City’s Investment Portfolio US Agency Securities $14,952,781 AML Investment Pool 5,219,353 Wells Fargo Money Market 3,364,656 FDIC Insured Certificates of Deposit 6,517,463 Bank Balance 530,528 Total $ 30,584,781 Permanent Fund Investments Fourth quarter 2021 saw continued gains in the equity markets. 2021 was an exceptional year in equity markets which propelled the annual return of the portfolio to 11.94%. Returns for the fourth quarter of 2021 were 4.33%. Since inception the portfolio has returned 8.70%. As of December 31, 2021 the portfolio value was $36,400,142, comprised of $31,034,201 (85.26%) Airport Land Sale Permanent Fund, $3,926,077 (10.79%) General Land Sale Permanent Fund monies, $1,240,422 (3.41%) Kenai Senior Connection monies, and $199,442 (0.54%) Kenai Community Foundation holdings. With the Airport Land Sale Permanent Fund’s year ending balance of $31,034,201, the current spending policy is designed to acknowledge the goal of preserving purchasing power (inflation proofing) while allowing for annual transfers to support the Kenai Municipal Airport by adjusting Page 140 the spending rate based upon the level of principal preservation (3.8% - 4.2%). At 2021 calendar year end, the 5 year-average market value of the portfolio ($26,993,044) was below the inflation adjusted principal ($28,397,622), thus the allowable transfer is limited to the lower bound of the spending rate (3.8%). The FY2022 allowable transfer based upon this calculation is $1,025,736. The FY2022 budgeted amount for this transfer was $1,012,722 thus requiring an ordinance to increase the appropriation by the difference of $13,014. An Ordinance providing for the supplemental appropriation will be provided for introduction at the February 2nd Council meeting. With the General Land Sale Permanent Fund’s year ending balance of $3,926,077, the current spending policy is designed to allow for annual transfers to the General Fund, while acknowledging the constraint on spending inflation adjusted principal (KMC Section 5-11). To increase the likelihood of annual distributions, spending is limited to 4% annually and excess earnings are reserved to supplement spending when portfolio earnings are less than the 4% limit in any given year. In 2021, portfolio earnings exceeded the 4% spending limit after accounting for inflation, thus the 2021 annual transfer is limited to $157,043 (4% of the Fund’s value) and all other earnings will be credited to the reserve. After accounting for the allowable transfer, the earnings reserve at calendar year end was $609,898. The FY2022 budgeted transfer amount was $148,315 requiring a supplemental appropriation to maximize this year’s distribution. An Ordinance providing for the supplemental appropriation will be provided for introduction at the February 16th Council meeting. A reserve balance of $610K is equal to approximately 3.88 years of future distributions based upon the 2021 calendar year end market value. A decline in the Fund’s market value of approximately 16% would eliminate the existing reserve. The strategy was designed to increase the reserve over time to increase distribution stability given market volatility. Page 2 of 2 Page 141 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY December 31, 2021 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 530,528$ 0.01% Wells Fargo Secured Money Market 3,364,656 0.01% FDIC Insured Certificates of Deposit 6,517,463 2.31% Alaska Municipal League Investment Pool 5,219,353 0.01% Total Cash & Cash Equivalents 15,632,000 0.97% Average Yield Government Securities Maturities Less than 1 Year 4,557,625 0.13% Maturities 1 to 2 Years 8,860,471 0.73% Maturities Greater than 2 Years 1,534,685 0.49% Total Government Securities 14,952,781 0.52% Total Portfolio 30,584,781$ 0.75% Investment Portfolio - Purchase Price 30,455,710$ Investment Portfolio - Fair Value 12/31/21 30,584,781 Fair Value Adjustment - 06/30/21 129,071 Fair Value Adjustment thru -12/31/2021 (261,117) Cummulative Change in Fair Value (132,046)$ December 31, 2021 $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 142 CITY OF KENAI Investments 12-31-21 COK CITY OF KENAI INVESTMENTS 12/31/2021 Current year cost or Unrealized Expected Call 06/30/21 12/31/21 Gain Accrued EFFECT. DATE DATE SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE PURCH. DUE FRESB 2017-SB43 A5F Bullet 30306LAC5 557,381.91 557,381.94 556,514.58 (867.36) 1,195.83 0.501 12/10/2021 9/25/2022 FFCB 0.10 4/27/22 7/27/21 One Time 3133EMNU2 1,000,005.56 999,720.00 999,770.00 50.00 177.78 0.100 1/29/2021 4/27/2022 FFCB 0.125 2/3/23 Bullet 3133EMPH9 1,000,200.00 999,270.00 996,700.00 (2,570.00) 513.89 0.125 2/3/2021 2/3/2023 FNMA 2.0 1/5/22 Bullet 3135GOS38 1,019,341.44 1,009,790.00 1,000,110.00 (9,680.00) 9,777.78 0.070 2/1/2021 1/5/2022 FNMA 2.625 1/11/22 Bullet 3135GOU92 1,025,576.33 1,013,430.00 1,000,580.00 (12,850.00) 12,395.83 0.070 2/1/2021 1/11/2022 FHMS KSMC A2 2.615 1/25/23 Bullet 3137BO4Y7 2,652,003.98 2,623,167.30 2,584,356.45 (38,810.85) 5,524.19 0.196 2/4/2021 1/25/2023 FHMS K037 A1 Bullet 3137B7YX1 448,344.90 444,375.38 437,823.29 (6,552.09) 933.96 0.174 4/12/2021 4/25/2023 FHMS K047 A1 Bullet 3137BKRH5 306,450.49 303,672.30 297,684.59 (5,987.71) 682.93 0.297 4/14/2021 12/25/2024 FHMS K053 A1 Bullet 3137BN6F6 476,318.03 468,208.10 459,083.00 (9,125.10) 950.45 0.383 11/27/2020 2/25/2025 FHLMC 2.375 1/13/22 Bullet 3137EADB2 1,023,073.50 1,012,240.00 1,000,650.00 (11,590.00) 11,083.33 0.070 2/1/2021 1/13/2022 FHMS KMP1 A1 Bullet 3137FATD0 293,400.01 291,207.61 286,362.68 (4,844.93) 523.40 0.302 4/14/2021 8/25/2024 FN AN0734 Bullet 3138LCY82 3,055,705.39 3,055,705.39 3,051,154.17 (4,551.22) 7,215.30 1.468 12/10/2021 1/1/2023 FN AN3349 Bullet 3138LFWK0 293,037.61 289,475.42 285,583.47 (3,891.95) 491.58 0.589 11/20/2020 10/1/2023 FN AM4716 Bullet 3138L5G20 632,962.17 628,095.50 607,468.45 (20,627.05) 1,710.48 0.787 11/20/2020 10/1/2023 FN Am47124 Bullet 3138L74J2 843,907.73 830,692.04 809,600.67 (21,091.37) 2,068.95 0.759 11/20/2020 10/1/2023 FNR 2003-79 NJ Mtge Bullet 31393EER6 93,524.51 90,267.71 87,784.96 (2,482.75) 357.61 0.346 2/5/2021 8/25/2023 FHR 2935 AC Mtge Bullet 31395MQ28 74,226.07 71,840.51 69,941.26 (1,899.25) 280.63 0.487 2/5/2021 2/15/2025 G2 5122 Mtge Bullet 36202FVP8 419,597.19 419,597.19 421,613.12 2,015.93 1,167.23 0.874 11/16/2021 7/20/2026 TOTAL 15,215,056.82 15,108,136.39 14,952,780.69 (155,355.70) 57,051.15 0.422 0.129 0.73 0.49 FDIC Insured CD's CD - 12/31/10 3.55 AXP 12/4/23 27471 02589AA28 249,998 264,548.55 258,712.65 (5,835.90) 667.21 3.160 1/2/2019 12/4/2023 2.45 BWW 5/10/22 35141 05580ARK2 245,000 250,061.70 246,942.85 (3,118.85) 855.15 2.450 5/10/2019 5/10/2022 1.75 SECSTB 12/18/24 8941 062163BN9 245,000 256,544.40 251,159.30 (5,385.10) 164.45 1.750 12/18/2019 12/18/2024 0.20 HAPOAL 11/27/22 33686 06251A2M1 249,000 249,191.73 248,716.14 (475.59) 61.40 0.200 11/17/2020 11/17/2022 3.10 BANK MIDWEST CD 9/15/23 5170 063615BM9 245,000 260,520.75 255,598.70 (4,922.05) 2,205.67 3.100 9/17/2018 9/15/2023 2.45 SONHBT 5/23/22 24540 06426KBB3 245,000 250,211.15 247,138.85 (3,072.30) 148.01 2.450 5/23/2019 5/23/2022 2.30 BACR 10/18/22 57203 06740KLD7 245,000 251,921.25 248,888.15 (3,033.10) 1,157.88 2.300 10/18/2017 10/18/2022 2.4 COF 4/19/22 33954 1404202E9 247,000 251,660.89 248,605.50 (3,055.39) 1,201.84 2.400 4/19/2017 4/19/2022 2.4 COF 8/30/22 4297 14042RHS3 245,000 251,568.45 248,444.70 (3,123.75) 1,949.26 2.400 8/28/2017 8/30/2022 3.15 CFBANK 9/18/23 28263 15721UCQ0 245,000 260,738.80 255,811.85 (4,926.95) 296.01 3.150 9/18/2018 9/18/2023 3.30 C 9/7/23 7213 17312QS34 245,000 261,370.90 256,240.60 (5,130.30) 2,569.48 3.300 9/7/2018 9/7/2023 1.75 CNBMIL 12/9/24 3814 17801GBW8 245,000 256,492.95 251,151.95 (5,341.00) 270.17 1.750 12/9/2019 12/9/2024 2.55 CMS 1/18/22 57293 29278TAK6 245,000 248,366.30 245,281.75 (3,084.55) 273.86 2.550 2/16/2018 1/18/2022 3.10 SRCE 10/21/22 9087 33646CKJ2 245,000 254,532.95 250,485.55 (4,047.40) 2,122.44 3.100 9/21/2018 10/21/2022 2.35 GS 8/30/22 33124 38148PNS2 245,000 251,423.90 248,363.85 (3,060.05) 1,908.65 2.350 8/28/2017 8/30/2022 1.85 LIVOAK 12/11/24 58665 538036HF4 245,000 257,343.10 251,864.90 (5,478.20) 384.95 1.850 12/11/2019 12/11/2024 2.60 MS 2/15/22 32992 61747MK83 245,000 248,917.55 245,735.00 (3,182.55) 2,425.84 2.600 2/15/2018 2/15/2022 2.05 NTLNYC 8/30/22 18734 634116CM7 245,000 250,537.00 247,893.45 (2,643.55) 27.52 2.050 10/30/2017 8/30/2022 3.40 NCBSVG 12/21/23 32612 635573AL2 247,234 263,992.40 258,259.40 (5,733.00) 251.04 3.220 1/2/2019 12/21/2023 0.30 NYCB 11/9/23 16022 649447UE7 249,000 249,258.96 247,585.68 (1,673.28) 108.47 0.300 11/9/2020 11/9/2023 2.15 NRTHFL 10/25/22 28710 66612ABX5 245,000 251,529.25 248,672.55 (2,856.70) 981.34 2.150 10/30/2017 8/30/2022 1.70 RCKCAN 12/20/23 33542 77183VAD0 245,000 253,658.30 250,083.75 (3,574.55) 136.93 1.700 12/20/2019 12/20/2023 2.80 SALLMA 4/17/24 58177 7954502H7 245,000 262,127.95 256,566.45 (5,561.50) 1,428.38 2.590 5/7/2019 4/17/2024 2.75 SBIIN 02/16/23 33682 856285HZ7 245,000 255,260.60 251,504.75 (3,755.85) 2,547.33 2.750 2/16/2018 2/16/2023 2.35 SYF 10/20/22 27314 87164WTC2 245,000 252,109.90 249,010.65 (3,099.25) 1,151.50 2.350 10/20/2017 10/22/2022 2.15 EVER 10/28/22 34775 87270LAV5 245,000 251,622.35 248,743.60 (2,878.75) 909.18 2.150 10/30/2017 10/28/2022 TOTAL FDIC Insured CD's 6,387,231.99 6,615,512.03 6,517,462.57 (98,049.46) 26,203.96 2.312 WELLS MONEY MKT 3,364,656.43 3,364,656.43 3,364,656.43 66.79 0.010 AML POOL - City ACCT Agreed to Amlip 5,219,353.17 5,219,353.17 5,219,353.17 44.27 0.010 Agreed to GL 30,186,298.41 30,307,658.02 30,054,252.86 (253,405.16) 83,366.17 WF Cash Agreed to WF 530,527.90 530,527.90 530,527.90 - - 0.010 TOTAL 30,716,826.31 30,838,185.92 30,584,780.76 (253,405.16) 83,366.17 MONTHS (132,045.55) TOTAL CURRENT YIELD 0.7526% Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 9,175,434.23 1.0854% 2,545,427 6,630,006.98 OK 6000000 Liquidity 20% Minimum 6,116,956.15 0.4954% 17,145,085 (11,028,128.52) OK Maturity 1 - 2 years 1.0796% 10,894,269 0.7526% 30,584,781 Page 143 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY December 31, 2021 Current or Current Average Portfolio Target Portfolio 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 Yield Weight Weight Maximum Cash Cash & Cash Equivalents 2,070,212 1,859,760 2,190,624 2,369,402 2,516,906 0.01% 6.91% 5.00% 10.00% Fixed Income Government & Corporate Securities Government Securities 9,059,561 5,510,068 5,766,625 6,632,925 6,632,925 1.54% 18.22% Corporate Securities 3,008,315 3,358,495 3,331,243 3,214,776 3,214,776 2.30%8.83% Total Fixed Income 12,067,876 8,868,563 9,097,868 9,847,701 9,847,701 1.86% 27.05% 30.00% 45.00% Equities: Domestic Equities: Large-Cap Index 7,044,122 7,785,032 7,847,291 7,883,679 8,472,518 23.28% 22.00% 25.00% Small-Cap Index 1,969,325 2,373,660 2,210,115 2,103,327 2,205,806 6.06% 6.00% 10.00% Mid-Cap Index 3,587,646 4,544,749 4,369,012 4,143,616 4,437,562 12.19%12.00%15.00% Total Domestic Equities 12,601,093 14,703,441 14,426,418 14,130,622 15,115,886 41.53% 40.00% 50.00% International Equities: International Equity 3,408,193 4,360,394 4,389,491 4,175,003 4,203,100 11.55% 12.00% 15.00% Emerging Markets 1,772,297 2,839,434 2,923,176 2,766,724 2,705,552 7.43%8.00%10.00% Total International Equities 5,180,490 7,199,828 7,312,667 6,941,727 6,908,652 18.98%20.00% 25.00% Real Estate: JP Morgan Beta Builders MSCI Reit 488,356 542,069 773,540 677,098 781,973 2.15% Pacer Benchmark Industrial Real Estat 159,528 174,858 - - - 0.00% Total Real Estate 647,884 716,927 773,540 677,098 781,973 2.15% 2.00% 7.00% Infrastructure - Flexshares Stoxx Global Broad Infrastucture 994,560 1,477,735 1,465,887 1,194,194 1,229,024 3.38%3.00%8.00% Total Equities 19,424,027 24,097,931 23,978,512 22,943,641 24,035,535 66.04%65.00%90.00% Total Portfolio 33,562,115 34,826,254 35,267,004 35,160,744 36,400,142 11.94%100.00%100.00%145.00% Total ALSPF Balance 28,632,059 29,710,505 30,068,105 29,746,816 31,034,201 Total GLSPF Balance 3,643,755 3,781,000 3,803,858 3,763,212 3,926,077 Total Kenai Community Foundation 178,171 184,881 193,233 191,168 199,442 Total Kenai Senior Connection 1,108,130 1,149,869 1,201,808 1,188,966 1,240,422 Fair Market Value 0.00% 25.00% 50.00% Cash Fixed Income Large-Cap Index Small-Cap Index Mid-Cap Index International Equity Emerging Markets Real Estate: Infrastructure - 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 2.81% 4.33% 11.94% 11.94% 8.70% Benchmark 2.88% 4.36% 11.57% 11.57% 8.83% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Portfolio Performance Page 144 $15,000,000 $17,000,000 $19,000,000 $21,000,000 $23,000,000 $25,000,000 $27,000,000 $29,000,000 $31,000,000 $33,000,000 Total ALSPF Balance 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 $4,000,000 $4,500,000 Total GLSPF Balance $‐ $50,000 $100,000 $150,000 $200,000 $250,000 Total Kenai Community Foundation Balance Transfer of $149,802 to General Fund Operations. Transfer of $1,203,690 to Airport Operations. Transfer of $161,561 to General Fund Operations. $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Total Kenai Senior Connection Balance Initial investment. Transfer of $137,239 to General Fund Operations. Transfer of $928,251 to Airport Operations. Transfer of $148,315 to General Fund Operations. Transfer of $1,012,722 to Airport Operations. Page 145 Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCECurrentMonthCurrentQuarterYear toDateLatest 1YearInception toDatePortfolio2.81 4.33 11.94 11.94 8.70Benchmark2.88 4.36 11.57 11.57 8.830.002.004.006.008.0010.0012.0014.00Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:Equity BlendPORTFOLIO COMPOSITIONFixed Income34%US Lg Cap23%US Md Cap12%US Sm Cap6%Int'l12%Emer Mkts7%Real Estate6%MANAGEMENT TEAMClient Relationship Manager: Blake Phillips, CFA®Blake@apcm.netYour Portfolio Manager: Bill Lierman, CFA®Contact Phone Number: 907/272 -7575ACCOUNT ACTIVITYPortfolio Value on 11-30-21 35,406,201Contributions 0Withdrawals -494Change in Market Value 757,967Interest 20,298Dividends 216,169Portfolio Value on 12-31-21 36,400,142CITY OF KENAI PERMANENT FUNDSAccount Statement - Period Ending December 31, 2021Page 146 Alaska Permanent Capital Management Co. PORTFOLIO SUMMARY AND TARGET CITY OF KENAI PERMANENT FUNDS December 31, 2021 % Asset Class & Target Market Value Assets Range FIXED INCOME (35%) US Fixed Income (30.0%) 9,846,931 27.1 25% to 45% Cash (5.0%) 2,553,470 7.0 0% to 10% Subtotal: 12,400,400 34.1 EQUITY (60%) US Large Cap (22.0%) 8,444,088 23.2 17% to 27% US Mid Cap (12.0%) 4,437,562 12.2 7% to 17% US Small Cap (6.0%) 2,205,806 6.1 0% to 11% Developed International Equity (12.0%) 4,196,933 11.5 7% to 17% Emerging Markets (8.0%) 2,705,552 7.4 0% to 13% Subtotal: 21,989,941 60.4 ALTERNATIVE INVESTMENTS (5%) Real Estate (2.0%) 781,973 2.1 0% to 5% Infrastructure (3.0%) 1,227,828 3.4 0% to 6% Subtotal: 2,009,801 5.5 TOTAL PORTFOLIO 36,400,142 100 Page 147 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSDecember 31, 2021YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityFNMA & FHLMC7,061 FHLMC POOL G14203 104.56 7,383 105.25 7,431 0.02 282 24 -0.274.000% Due 04-01-2671,796 FG POOL C91270 105.67 75,868107.12 76,910 0.21 3,231 269 1.034.500% Due 10-01-2975,338 FG POOL J30401 101.30 76,315105.62 79,572 0.22 2,260 188 1.003.000% Due 01-01-3075,857 FG POOL G16255 99.70 75,632104.26 79,089 0.22 1,896 158 1.302.500% Due 07-01-3296,850 FR SB8503 Mtge 102.81 99,574102.68 99,446 0.27 1,937 32 1.332.000% Due 08-01-3576,682 FNCL POOL 995373 106.72 81,834110.45 84,693 0.23 3,451 288 2.144.500% Due 02-01-39100,015 FR RB5095 MTGE 103.84 103,852 101.61 101,624 0.28 2,000 33 1.732.000% Due 01-01-41194,328 FN POOL AJ1405 104.48 203,042 109.81 213,393 0.59 7,773 648 2.014.000% Due 09-01-4199,004 FN MA4475 Mtge 103.58 102,547 103.25 102,219 0.28 2,475 41 1.842.500% Due 11-01-41108,299 FN POOL AT2324 100.20 108,519 105.97 114,766 0.32 3,249 54 1.833.000% Due 01-01-43168,239 FG POOL V80057 100.23 168,633 106.56 179,274 0.49 5,047 421 1.863.000% Due 05-01-43109,221 FN POOL AL3180 100.20 109,443 105.95 115,715 0.32 3,277 273 1.873.000% Due 05-01-43102,477 FG POOL G08722 102.09 104,615 106.93 109,578 0.30 3,587 299 2.083.500% Due 09-01-4639,605 FN AS8483 102.95 40,774 105.32 41,710 0.11 1,188 99 1.983.000% Due 12-01-4669,071 FN POOL BD2453 99.89 68,995105.60 72,936 0.20 2,072 173 1.983.000% Due 01-01-47188,112 FN POOL AS8810 102.04 191,948 106.63 200,593 0.55 6,584 549 2.103.500% Due 02-01-4761,399 FN POOL MA2930 103.56 63,586107.59 66,058 0.18 2,456 205 2.424.000% Due 03-01-4755,815 FG G61893 101.14 56,452 104.92 58,561 0.16 1,674 140 1.983.000% Due 07-01-4728,097 FN MA3276 105.75 29,713106.01 29,787 0.08 983 82 2.123.500% Due 02-01-4852,359 FN MA3305 103.02 53,938 105.80 55,398 0.15 1,833 153 2.153.500% Due 03-01-4816,931 FN POOL MA3638 103.09 17,455 106.34 18,004 0.05 677 56 2.504.000% Due 04-01-4946,722 FR RA1343 104.69 48,912 104.53 48,838 0.13 1,402 117 2.113.000% Due 09-01-49Page 148 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSDecember 31, 2021YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity28,246 FN MA3834 101.90 28,782103.68 29,285 0.08 847 71 2.113.000% Due 11-01-4930,084 FN MA3871 101.91 30,657103.64 31,179 0.09 903 75 2.113.000% Due 12-01-4937,652 FR QA5517 102.31 38,523 103.87 39,109 0.11 1,130 94 2.113.000% Due 12-01-4932,278 FN MA3960 102.31 33,024103.65 33,458 0.09 968 81 2.253.000% Due 03-01-5061,879 FANNIE MAE POOL 104.98 64,963 102.12 63,191 0.17 1,547 129 2.082.500% Due 05-01-50125,765 FANNIE MAE POOL 105.11 132,191 102.51 128,919 0.35 3,144 262 2.082.500% Due 08-01-5092,240 FN CA7738 MTGE 105.64 97,443102.12 94,196 0.26 2,306 192 2.082.500% Due 11-01-50102,775 FN MA4237 MTGE 103.73 106,613 99.78 102,550 0.28 2,056 34 1.992.000% Due 01-01-51230,824 FN BR1668 Mtge 99.54 229,751 99.78 230,319 0.63 4,616 77 2.012.000% Due 03-01-51234,866 FR RA5041 Mtge 99.49 233,664 99.78 234,352 0.64 4,697 78 2.012.000% Due 04-01-51293,716 FR QC4235 Mtge 102.31 300,508 102.12 299,945 0.82 7,343 122 2.102.500% Due 07-01-51Accrued Interest5,516 0.023,185,147 3,247,613 8.92 5,516CORPORATE BONDS200,000 BANK OF NEW YORK MELLON 97.83 195,666 102.17 204,332 0.56 4,400 1,650 0.852.200% Due 08-16-23200,000 JPMORGAN CHASE & CO 105.18 210,362 105.86 211,726 0.58 7,750 3,229 1.023.875% Due 02-01-24100,000 MORGAN STANLEY IND FINANCIAL SRV 103.71 103,711 106.01 106,009 0.29 3,875 667 1.253.875% Due 04-29-24100,000 WELLS FARGO & COMPANY 99.88 99,882 105.17 105,168 0.29 3,300 1,027 1.333.300% Due 09-09-24150,000 KIMCO REALTY CORP 94.92 142,377 105.10 157,654 0.43 4,950 2,062 1.603.300% Due 02-01-25150,000 REYNOLDS AMERICAN INC 108.47 162,700 108.00 162,000 0.45 6,675 352 2.034.450% Due 06-12-25150,000 CITIGROUP INC 101.65 152,470 108.13 162,192 0.45 5,550 2,605 1.613.700% Due 01-12-26100,000 KROGER CO 99.82 99,820 103.91 103,908 0.29 2,650 559 1.792.650% Due 10-15-26100,000 GENERAL DYNAMICS CORP 106.12 106,120 108.87 108,866 0.30 3,500 875 1.723.500% Due 04-01-2735,000 DARDEN RESTAURANTS INC 110.59 38,706 108.25 37,888 0.10 1,347 225 2.203.850% Due 05-01-27Page 149 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSDecember 31, 2021YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity110,000 BORGWARNER INC 107.34 118,072 103.31 113,643 0.31 2,915 1,457 2.012.650% Due 07-01-27100,000 ENBRIDGE INC 101.13 101,135 107.82 107,817 0.30 3,700 1,706 2.193.700% Due 07-15-27100,000 ANHEUSER-BUSCH INBEV WORLDWIDE 114.31 114,309 111.23 111,230 0.31 4,000 867 2.084.000% Due 04-13-2870,000 ESSEX PORTFOLIO LP 111.75 78,224 110.62 77,434 0.21 2,800 933 2.384.000% Due 03-01-29100,000 INTEL CORP 113.48 113,484 113.59 113,588 0.31 3,900 1,040 2.093.900% Due 03-25-3050,000 KOHL'S CORPORATION 99.80 49,901 101.84 50,921 0.14 1,687 281 3.143.375% Due 05-01-3170,000 CENOVUS ENERGY INC 119.59 83,716 118.15 82,708 0.23 3,675 163 3.705.250% Due 06-15-37100,000 AT&T INC 119.32 119,320 141.32 141,325 0.39 6,375 2,125 3.426.375% Due 03-01-41100,000 HOME DEPOT INC 115.63 115,627 131.87 131,869 0.36 4,875 1,842 2.914.875% Due 02-15-4450,000 PHILLIPS 66 126.49 63,243 126.07 63,037 0.17 2,437 311 3.254.875% Due 11-15-44100,000 CARDINAL HEALTH 111.47 111,470 120.17 120,167 0.33 4,900 1,443 3.624.900% Due 09-15-45100,000 BANK OF AMERICA CORP 106.31 106,308 124.26 124,263 0.34 4,443 1,987 3.084.443% Due 01-20-48100,000 Sysco Corporation 120.54 120,536 117.67 117,666 0.32 4,450 1,310 3.424.450% Due 03-15-4870,000 NATIONAL RETAIL PROP INC 126.03 88,222 125.20 87,641 0.24 3,360 709 3.364.800% Due 10-15-4850,000 TELUS CORP 121.52 60,762 121.11 60,555 0.17 2,150 96 3.154.300% Due 06-15-49110,000 MAGELLAN MIDSTREAM PARTN 109.07 119,976 105.92 116,517 0.32 4,345 1,448 3.613.950% Due 03-01-50110,000 KANSAS CITY SOUTHERN 108.00 118,801 106.31 116,945 0.32 3,850 642 3.163.500% Due 05-01-5075,000 NUTRIEN LTD 99.74 74,803 115.75 86,815 0.24 2,962 395 3.113.950% Due 05-13-50Accrued Interest32,009 0.093,069,725 3,215,896 8.83 32,009DOMESTIC LARGE CAP EQUITY FUNDS/ETF3,140 FLEXSHARES QUAL DIV ETF40.53 127,261 61.34 192,608 0.53 NA17,373 SPDR S&P 500 ETF 210.23 3,652,250 474.96 8,251,480 22.67 NA3,779,510 8,444,088 23.20DOMESTIC MID CAP EQUITY FUNDS/ETF15,676 ISHARES CORE S&P MIDCAP 400 ETF 117.93 1,848,623 283.08 4,437,562 12.19 NAPage 150 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSDecember 31, 2021YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityDOMESTIC SMALL CAP EQUITY FUNDS/ETF19,263 ISHARES S&P SMALLCAP 600 INDEX ETF 50.32 969,387 114.51 2,205,806 6.06 NAINTERNATIONAL EQUITY FUNDS/ETF56,229 ISHARES ETF CORE MSCI EAFE 66.29 3,727,678 74.64 4,196,933 11.53 NAEMERGING MARKET FUNDS/ETF45,198 ISHARES ETF CORE MSCI EMERGING MKTS 52.97 2,394,158 59.86 2,705,552 7.43 NAREAL ESTATE & INFRASTRUCTURE21,409 FLEXSHAR STX GLOBAL BROAD INF ETF 50.57 1,082,581 57.35 1,227,828 3.37 NA7,041 JPMORGAN BETABUILDERS MSCI US REIT ETF 81.50 573,820 111.06 781,973 2.15 NA1,656,401 2,009,801 5.52U.S. TREASURY 50,000 US TREASURY NOTES 100.02 50,010 99.93 49,965 0.14 62 26 0.240.125% Due 07-31-22110,000 US TREASURY NOTES 99.96109,953 99.54 109,493 0.30 137 35 0.500.125% Due 03-31-2320,000 US TREASURY NOTES 100.00 19,999 99.28 19,855 0.05 25 12 0.600.125% Due 07-15-23180,000 US TREASURY NOTES 99.48179,072 99.09 178,355 0.49 225 67 0.670.125% Due 09-15-2390,000 US TREASURY NOTE 99.7589,779 99.00 89,100 0.24 112 24 0.690.125% Due 10-15-23150,000 US TREASURY NOTES 99.41 149,109 101.68 152,520 0.42 2,437 417 0.701.625% Due 10-31-23200,000 US TREASURY NOTES 99.53 199,055 99.00 197,992 0.54 750 161 0.820.375% Due 04-15-24180,000 US TREASURY NOTES 99.86179,740 98.64 177,547 0.49 450 58 0.830.250% Due 05-15-24170,000 US TREASURY NOTES 102.28 173,871 101.57 172,669 0.47 2,550 224 0.951.500% Due 11-30-2475,000 US TREASURY NOTES 99.71 74,780 105.71 79,280 0.22 2,062 6 1.082.750% Due 06-30-2520,000 US TREASURY NOTES 100.16 20,032 97.00 19,400 0.05 50 21 1.110.250% Due 07-31-2575,000 US TREASURY NOTES 95.63 71,726 101.68 76,257 0.21 1,219 158 1.231.625% Due 05-15-26185,000 US TREASURY NOTES 102.37 189,387 101.70 188,151 0.52 3,006 264 1.271.625% Due 11-30-26200,000 US TREASURY NOTES 95.49 190,988 94.98 189,962 0.52 750 314 1.310.375% Due 07-31-27100,000 US TREASURY NOTES 99.59 99,590 99.11 99,109 0.27 1,250 321 1.401.250% Due 03-31-28Page 151 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSDecember 31, 2021YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity160,000 US TREASURY NOTES 102.38 163,808 111.15 177,843 0.49 5,000 649 1.423.125% Due 11-15-2820,000 US TREASURY NOTES 101.7420,348 108.11 21,621 0.06 525 198 1.422.625% Due 02-15-2910,000 US TREASURY NOTES 100.79 10,079 93.50 9,350 0.03 62 8 1.450.625% Due 05-15-3020,000 US TREASURY NOTE 99.7319,945 93.26 18,652 0.05 125 47 1.460.625% Due 08-15-30125,000 US TREASURY NOTES 97.64 122,046 95.07 118,842 0.33 1,094 142 1.470.875% Due 11-15-30340,000 US TREASURY NOTE 99.32 337,674 97.05 329,973 0.91 3,825 1,445 1.471.125% Due 02-15-31125,000 US TREASURY NOTES 100.89 126,113 101.27 126,582 0.35 2,031 264 1.481.625% Due 05-15-31125,000 US TREASURY NOTES 127.11 158,890 131.80 164,751 0.45 4,844 1,830 1.853.875% Due 08-15-4075,000 US TREASURY NOTES 96.42 72,316 96.95 72,715 0.20 1,312 496 1.941.750% Due 08-15-4195,000 US TREASURY NOTES 102.9897,832 120.46 114,438 0.31 2,731 355 1.912.875% Due 05-15-4915,000 US TREASURY NOTES 100.74 15,111 84.92 12,738 0.03 187 24 1.941.250% Due 05-15-50115,000 US TREASURY NOTES 96.64 111,133 93.17 107,143 0.29 1,869 243 1.931.625% Due 11-15-5050,000 US TREASURY NOTES 100.88 50,439 101.94 50,969 0.14 1,000 378 1.912.000% Due 08-15-51Accrued Interest8,187 0.023,102,826 3,133,460 8.61 8,187AGENCIES125,000 FEDERAL HOME LOAN BANK 99.90124,875 98.04 122,550 0.34 750 258 1.150.600% Due 08-27-25125,000 FHLB 104.27 130,335 101.23 126,539 0.35 2,031 615 1.381.625% Due 03-12-27Accrued Interest873 0.00255,210 249,962 0.69 873CASH AND EQUIVALENTSDIVIDEND ACCRUAL 35,790 35,790 0.10WF ADV GOVT MM FD-INSTL #1751 2,517,680 2,517,680 6.922,553,470 2,553,470 7.01TOTAL PORTFOLIO 26,542,136 36,400,142 100 242,190 46,585Page 152 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TradeDate Date Security Quantity AmountDEPOSITS AND EXPENSESMANAGEMENT FEES12-31-21 12-31-21 MANAGEMENT FEES 4,700.014,700.01DividendDOMESTIC LARGE CAP EQUITY FUNDS/ETF12-17-21 01-31-22 SPDR S&P 500 ETF 28,429.7212-23-21 12-23-21 FLEXSHARES QUAL DIV ETF1,171.2429,600.96DOMESTIC MID CAP EQUITY FUNDS/ETF12-17-21 12-17-21 ISHARES CORE S&P MIDCAP 400 ETF15,136.06DOMESTIC SMALL CAP EQUITY FUNDS/ETF12-17-21 12-17-21 ISHARES S&P SMALLCAP 600 INDEX ETF14,144.19EMERGING MARKET FUNDS/ETF12-17-21 12-17-21 ISHARES ETF CORE MSCI EMERGING MKTS61,529.71INTERNATIONAL EQUITY FUNDS/ETF12-17-21 12-17-21 ISHARES ETF CORE MSCI EAFE71,816.9212-30-21 01-05-22 ISHARES ETF CORE MSCI EAFE6,167.8777,984.79REAL ESTATE & INFRASTRUCTURE12-23-21 12-23-21 FLEXSHAR STX GLOBAL BROAD INF ETF11,142.55Page 153 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TradeDate Date Security Quantity Amount12-27-21 12-27-21 JPMORGAN BETABUILDERS MSCI US REIT ETF5,438.8912-30-21 01-04-22 FLEXSHAR STX GLOBAL BROAD INF ETF1,192.3117,773.75216,169.46InterestCASH AND EQUIVALENTS12-01-21 12-01-21 WF ADV GOVT MM FD-INSTL #175118.31CORPORATE BONDS12-13-21 12-13-21 REYNOLDS AMERICAN INC3,337.504.450% Due 06-12-2512-15-21 12-15-21 CENOVUS ENERGY INC 1,837.505.250% Due 06-15-3712-15-21 12-15-21 TELUS CORP 1,075.004.300% Due 06-15-496,250.00FNMA & FHLMC12-15-21 12-15-21 FHLMC POOL G14203 24.424.000% Due 04-01-2612-15-21 12-15-21 FG POOL G16255 161.722.500% Due 07-01-3212-15-21 12-15-21 FG POOL G08722 312.173.500% Due 09-01-4612-15-21 12-15-21 FG POOL C91270 280.344.500% Due 10-01-2912-15-21 12-15-21 FG POOL J30401 192.803.000% Due 01-01-3012-15-21 12-15-21 FG POOL V80057 422.153.000% Due 05-01-43Page 154 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TradeDate Date Security Quantity Amount12-15-21 12-15-21 FG G61893 143.663.000% Due 07-01-4712-27-21 12-27-21 FR SB8503 Mtge 164.572.000% Due 08-01-3512-27-21 12-27-21 FR QA5517 96.943.000% Due 12-01-4912-27-21 12-27-21 FR QC4235 Mtge 616.702.500% Due 07-01-5112-27-21 12-27-21 FR RA1343 120.763.000% Due 09-01-4912-27-21 12-27-21 FR RA5041 Mtge 398.032.000% Due 04-01-5112-27-21 12-27-21 FR RB5095 MTGE 169.642.000% Due 01-01-4112-27-21 12-27-21 FN POOL AJ1405 654.924.000% Due 09-01-4112-27-21 12-27-21 FN POOL AT2324 282.883.000% Due 01-01-4312-27-21 12-27-21 FN AS8483 102.153.000% Due 12-01-4612-27-21 12-27-21 FN POOL AS8810 553.883.500% Due 02-01-4712-27-21 12-27-21 FN POOL AL3180 274.043.000% Due 05-01-4312-27-21 12-27-21 FN POOL BD2453 175.893.000% Due 01-01-4712-27-21 12-27-21 FANNIE MAE POOL 129.242.500% Due 05-01-5012-27-21 12-27-21 FANNIE MAE POOL 266.862.500% Due 08-01-5012-27-21 12-27-21 FN BR1668 Mtge 388.732.000% Due 03-01-5112-27-21 12-27-21 FN CA7738 MTGE 197.852.500% Due 11-01-5012-27-21 12-27-21 FNCL POOL 995373 295.394.500% Due 02-01-39Page 155 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TradeDate Date Security Quantity Amount12-27-21 12-27-21 FN POOL MA2930 210.394.000% Due 03-01-4712-27-21 12-27-21 FN MA3305 159.063.500% Due 03-01-4812-27-21 12-27-21 FN MA3276 85.923.500% Due 02-01-4812-27-21 12-27-21 FN MA4475 Mtge 207.222.500% Due 11-01-4112-27-21 12-27-21 FN POOL MA3638 59.494.000% Due 04-01-4912-27-21 12-27-21 FN MA3834 73.863.000% Due 11-01-4912-27-21 12-27-21 FN MA3871 78.913.000% Due 12-01-4912-27-21 12-27-21 FN MA3960 84.663.000% Due 03-01-5012-27-21 12-27-21 FN MA4237 MTGE 173.692.000% Due 01-01-517,558.93U.S. TREASURY 12-31-21 12-31-21 US TREASURY NOTES 1,031.252.750% Due 06-30-2514,858.49PRINCIPAL PAYDOWNSFNMA & FHLMC12-15-21 12-15-21 FHLMC POOL G14203 264.75 264.754.000% Due 04-01-2612-15-21 12-15-21 FG POOL G16255 1,769.84 1,769.842.500% Due 07-01-3212-15-21 12-15-21 FG POOL G08722 4,553.80 4,553.803.500% Due 09-01-4612-15-21 12-15-21 FG POOL C91270 2,962.58 2,962.584.500% Due 10-01-29Page 156 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TradeDate Date Security Quantity Amount12-15-21 12-15-21 FG POOL J30401 1,783.60 1,783.603.000% Due 01-01-3012-15-21 12-15-21 FG POOL V80057 622.27 622.273.000% Due 05-01-4312-15-21 12-15-21 FG G61893 1,649.11 1,649.113.000% Due 07-01-4712-25-21 12-27-21 FR SB8503 Mtge 1,893.66 1,893.662.000% Due 08-01-3512-25-21 12-27-21 FR QA5517 1,123.80 1,123.803.000% Due 12-01-4912-25-21 12-27-21 FR QC4235 Mtge 2,299.47 2,299.472.500% Due 07-01-5112-25-21 12-27-21 FR RA1343 1,581.79 1,581.793.000% Due 09-01-4912-25-21 12-27-21 FR RA5041 Mtge 3,952.54 3,952.542.000% Due 04-01-5112-25-21 12-27-21 FR RB5095 MTGE 1,770.26 1,770.262.000% Due 01-01-4112-25-21 12-27-21 FN POOL AJ1405 2,149.47 2,149.474.000% Due 09-01-4112-25-21 12-27-21 FN POOL AT2324 4,854.11 4,854.113.000% Due 01-01-4312-25-21 12-27-21 FN AS8483 1,253.78 1,253.783.000% Due 12-01-4612-25-21 12-27-21 FN POOL AS8810 1,788.56 1,788.563.500% Due 02-01-4712-25-21 12-27-21 FN POOL AL3180 394.35 394.353.000% Due 05-01-4312-25-21 12-27-21 FN POOL BD2453 1,285.38 1,285.383.000% Due 01-01-4712-25-21 12-27-21 FANNIE MAE POOL 157.54 157.542.500% Due 05-01-5012-25-21 12-27-21 FANNIE MAE POOL 2,326.43 2,326.432.500% Due 08-01-5012-25-21 12-27-21 FN BR1668 Mtge 2,414.27 2,414.272.000% Due 03-01-51Page 157 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TradeDate Date Security Quantity Amount12-25-21 12-27-21 FN CA7738 MTGE 2,725.76 2,725.762.500% Due 11-01-5012-25-21 12-27-21 FNCL POOL 995373 2,087.00 2,087.004.500% Due 02-01-3912-25-21 12-27-21 FN POOL MA2930 1,718.80 1,718.804.000% Due 03-01-4712-25-21 12-27-21 FN MA3305 2,176.94 2,176.943.500% Due 03-01-4812-25-21 12-27-21 FN MA3276 1,362.32 1,362.323.500% Due 02-01-4812-25-21 12-27-21 FN MA4475 Mtge 459.01 459.012.500% Due 11-01-4112-25-21 12-27-21 FN POOL MA3638 916.66 916.664.000% Due 04-01-4912-25-21 12-27-21 FN MA3834 1,297.72 1,297.723.000% Due 11-01-4912-25-21 12-27-21 FN MA3871 1,478.92 1,478.923.000% Due 12-01-4912-25-21 12-27-21 FN MA3960 1,586.81 1,586.813.000% Due 03-01-5012-25-21 12-27-21 FN MA4237 MTGE 1,441.58 1,441.582.000% Due 01-01-5160,102.8860,102.88WithdrawCASH AND EQUIVALENTS12-20-21 12-20-21 WF ADV GOVT MM FD-INSTL #1751493.78493.78Page 158 Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 Through 12-31-21Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss12-15-21 264.75 FHLMC POOL G14203 276.83 264.75 -12.084.000% Due 04-01-2612-15-21 1,769.84 FG POOL G16255 1,764.59 1,769.84 5.252.500% Due 07-01-3212-15-21 4,553.80 FG POOL G08722 4,648.79 4,553.80 -94.993.500% Due 09-01-4612-15-21 2,962.58 FG POOL C91270 3,130.61 2,962.58 -168.034.500% Due 10-01-2912-15-21 1,783.60 FG POOL J30401 1,806.73 1,783.60 -23.133.000% Due 01-01-3012-15-21 622.27 FG POOL V80057 623.73 622.27 -1.463.000% Due 05-01-4312-15-21 1,649.11 FG G61893 1,667.92 1,649.11 -18.813.000% Due 07-01-4712-25-21 1,893.66 FR SB8503 Mtge 1,946.92 1,893.66 -53.262.000% Due 08-01-3512-25-21 1,123.80 FR QA5517 1,149.79 1,123.80 -25.993.000% Due 12-01-4912-25-21 2,299.47 FR QC4235 Mtge 2,352.65 2,299.47 -53.182.500% Due 07-01-5112-25-21 1,581.79 FR RA1343 1,655.94 1,581.79 -74.153.000% Due 09-01-4912-25-21 3,952.54 FR RA5041 Mtge 3,932.31 3,952.54 20.232.000% Due 04-01-5112-25-21 1,770.26 FR RB5095 MTGE 1,838.17 1,770.26 -67.912.000% Due 01-01-4112-25-21 2,149.47 FN POOL AJ1405 2,245.86 2,149.47 -96.394.000% Due 09-01-4112-25-21 4,854.11 FN POOL AT2324 4,863.97 4,854.11 -9.863.000% Due 01-01-4312-25-21 1,253.78 FN AS8483 1,290.81 1,253.78 -37.033.000% Due 12-01-4612-25-21 1,788.56 FN POOL AS8810 1,825.03 1,788.56 -36.473.500% Due 02-01-4712-25-21 394.35 FN POOL AL3180 395.15 394.35 -0.803.000% Due 05-01-43Page 159 Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 Through 12-31-21Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss12-25-21 1,285.38 FN POOL BD2453 1,283.97 1,285.38 1.413.000% Due 01-01-4712-25-21 157.54 FANNIE MAE POOL 165.39 157.54 -7.852.500% Due 05-01-5012-25-21 2,326.43 FANNIE MAE POOL 2,445.30 2,326.43 -118.872.500% Due 08-01-5012-25-21 2,414.27 FN BR1668 Mtge 2,403.05 2,414.27 11.222.000% Due 03-01-5112-25-21 2,725.76 FN CA7738 MTGE 2,879.51 2,725.76 -153.752.500% Due 11-01-5012-25-21 2,087.00 FNCL POOL 995373 2,227.22 2,087.00 -140.224.500% Due 02-01-3912-25-21 1,718.80 FN POOL MA2930 1,780.03 1,718.80 -61.234.000% Due 03-01-4712-25-21 2,176.94 FN MA3305 2,242.59 2,176.94 -65.653.500% Due 03-01-4812-25-21 1,362.32 FN MA3276 1,440.65 1,362.32 -78.333.500% Due 02-01-4812-25-21 459.01 FN MA4475 Mtge 475.43 459.01 -16.422.500% Due 11-01-4112-25-21 916.66 FN POOL MA3638 945.02 916.66 -28.364.000% Due 04-01-4912-25-21 1,297.72 FN MA3834 1,322.36 1,297.72 -24.643.000% Due 11-01-4912-25-21 1,478.92 FN MA3871 1,507.11 1,478.92 -28.193.000% Due 12-01-4912-25-21 1,586.81 FN MA3960 1,623.51 1,586.81 -36.703.000% Due 03-01-5012-25-21 1,441.58 FN MA4237 MTGE 1,495.41 1,441.58 -53.832.000% Due 01-01-51TOTAL GAINS 38.11TOTAL LOSSES -1,587.5761,652.34 60,102.88 -1,549.46Page 160 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TranDate Date Code Activity Security AmountWF ADV GOVT MM FD-INSTL #175112-01-21 Beginning Balance 2,262,832.6612-01-21 12-01-21 dp Interest WF ADV GOVT MM FD-INSTL #175118.3112-13-21 12-13-21 dp Interest REYNOLDS AMERICAN INC 3,337.504.450% Due 06-12-2512-15-21 12-15-21 dp Interest CENOVUS ENERGY INC 1,837.505.250% Due 06-15-3712-15-21 12-15-21 dp Interest TELUS CORP 1,075.004.300% Due 06-15-4912-15-21 12-15-21 dp Paydown FHLMC POOL G14203 264.754.000% Due 04-01-2612-15-21 12-15-21 dp Interest FHLMC POOL G14203 24.424.000% Due 04-01-2612-15-21 12-15-21 dp Interest FG POOL G16255 161.722.500% Due 07-01-3212-15-21 12-15-21 dp Paydown FG POOL G16255 1,769.842.500% Due 07-01-3212-15-21 12-15-21 dp Paydown FG POOL G08722 4,553.803.500% Due 09-01-4612-15-21 12-15-21 dp Interest FG POOL G08722 312.173.500% Due 09-01-4612-15-21 12-15-21 dp Interest FG POOL C91270 280.344.500% Due 10-01-2912-15-21 12-15-21 dp Paydown FG POOL C91270 2,962.584.500% Due 10-01-2912-15-21 12-15-21 dp Paydown FG POOL J30401 1,783.603.000% Due 01-01-3012-15-21 12-15-21 dp Interest FG POOL J30401 192.803.000% Due 01-01-30Page 161 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TranDate Date Code Activity Security Amount12-15-21 12-15-21 dp Interest FG POOL V80057 422.153.000% Due 05-01-4312-15-21 12-15-21 dp Paydown FG POOL V80057 622.273.000% Due 05-01-4312-15-21 12-15-21 dp Paydown FG G61893 1,649.113.000% Due 07-01-4712-15-21 12-15-21 dp Interest FG G61893 143.663.000% Due 07-01-4712-17-21 12-17-21 dp Dividend ISHARES ETF CORE MSCI EAFE 71,816.9212-17-21 12-17-21 dp Dividend ISHARES ETF CORE MSCI EMERGING MKTS61,529.7112-17-21 12-17-21 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF15,136.0612-17-21 12-17-21 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF14,144.1912-20-21 12-20-21 wd Withdrawal from Portfolio -493.7812-23-21 12-23-21 dp Dividend FLEXSHAR STX GLOBAL BROAD INF ETF11,142.5512-23-21 12-23-21 dp Dividend FLEXSHARES QUAL DIV ETF 1,171.2412-25-21 12-27-21 dp Paydown FR SB8503 Mtge 1,893.662.000% Due 08-01-3512-25-21 12-27-21 dp Paydown FR QA5517 1,123.803.000% Due 12-01-4912-25-21 12-27-21 dp Paydown FR QC4235 Mtge 2,299.472.500% Due 07-01-5112-25-21 12-27-21 dp Paydown FR RA1343 1,581.793.000% Due 09-01-4912-25-21 12-27-21 dp Paydown FR RA5041 Mtge 3,952.542.000% Due 04-01-51Page 162 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TranDate Date Code Activity Security Amount12-25-21 12-27-21 dp Paydown FR RB5095 MTGE 1,770.262.000% Due 01-01-4112-25-21 12-27-21 dp Paydown FN POOL AJ1405 2,149.474.000% Due 09-01-4112-25-21 12-27-21 dp Paydown FN POOL AT2324 4,854.113.000% Due 01-01-4312-25-21 12-27-21 dp Paydown FN AS8483 1,253.783.000% Due 12-01-4612-25-21 12-27-21 dp Paydown FN POOL AS8810 1,788.563.500% Due 02-01-4712-25-21 12-27-21 dp Paydown FN POOL AL3180 394.353.000% Due 05-01-4312-25-21 12-27-21 dp Paydown FN POOL BD2453 1,285.383.000% Due 01-01-4712-25-21 12-27-21 dp Paydown FANNIE MAE POOL 157.542.500% Due 05-01-5012-25-21 12-27-21 dp Paydown FANNIE MAE POOL 2,326.432.500% Due 08-01-5012-25-21 12-27-21 dp Paydown FN BR1668 Mtge 2,414.272.000% Due 03-01-5112-25-21 12-27-21 dp Paydown FN CA7738 MTGE 2,725.762.500% Due 11-01-5012-25-21 12-27-21 dp Paydown FNCL POOL 995373 2,087.004.500% Due 02-01-3912-25-21 12-27-21 dp Paydown FN POOL MA2930 1,718.804.000% Due 03-01-4712-25-21 12-27-21 dp Paydown FN MA3305 2,176.943.500% Due 03-01-4812-25-21 12-27-21 dp Paydown FN MA3276 1,362.323.500% Due 02-01-48Page 163 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TranDate Date Code Activity Security Amount12-25-21 12-27-21 dp Paydown FN MA4475 Mtge 459.012.500% Due 11-01-4112-25-21 12-27-21 dp Paydown FN POOL MA3638 916.664.000% Due 04-01-4912-25-21 12-27-21 dp Paydown FN MA3834 1,297.723.000% Due 11-01-4912-25-21 12-27-21 dp Paydown FN MA3871 1,478.923.000% Due 12-01-4912-25-21 12-27-21 dp Paydown FN MA3960 1,586.813.000% Due 03-01-5012-25-21 12-27-21 dp Paydown FN MA4237 MTGE 1,441.582.000% Due 01-01-5112-27-21 12-27-21 dp Dividend JPMORGAN BETABUILDERS MSCI US REIT ETF5,438.8912-27-21 12-27-21 dp Interest FR SB8503 Mtge 164.572.000% Due 08-01-3512-27-21 12-27-21 dp Interest FR QA5517 96.943.000% Due 12-01-4912-27-21 12-27-21 dp Interest FR QC4235 Mtge 616.702.500% Due 07-01-5112-27-21 12-27-21 dp Interest FR RA1343 120.763.000% Due 09-01-4912-27-21 12-27-21 dp Interest FR RA5041 Mtge 398.032.000% Due 04-01-5112-27-21 12-27-21 dp Interest FR RB5095 MTGE 169.642.000% Due 01-01-4112-27-21 12-27-21 dp Interest FN POOL AJ1405 654.924.000% Due 09-01-4112-27-21 12-27-21 dp Interest FN POOL AT2324 282.883.000% Due 01-01-43Page 164 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TranDate Date Code Activity Security Amount12-27-21 12-27-21 dp Interest FN AS8483 102.153.000% Due 12-01-4612-27-21 12-27-21 dp Interest FN POOL AS8810 553.883.500% Due 02-01-4712-27-21 12-27-21 dp Interest FN POOL AL3180 274.043.000% Due 05-01-4312-27-21 12-27-21 dp Interest FN POOL BD2453 175.893.000% Due 01-01-4712-27-21 12-27-21 dp Interest FANNIE MAE POOL 129.242.500% Due 05-01-5012-27-21 12-27-21 dp Interest FANNIE MAE POOL 266.862.500% Due 08-01-5012-27-21 12-27-21 dp Interest FN BR1668 Mtge 388.732.000% Due 03-01-5112-27-21 12-27-21 dp Interest FN CA7738 MTGE 197.852.500% Due 11-01-5012-27-21 12-27-21 dp Interest FNCL POOL 995373 295.394.500% Due 02-01-3912-27-21 12-27-21 dp Interest FN POOL MA2930 210.394.000% Due 03-01-4712-27-21 12-27-21 dp Interest FN MA3305 159.063.500% Due 03-01-4812-27-21 12-27-21 dp Interest FN MA3276 85.923.500% Due 02-01-4812-27-21 12-27-21 dp Interest FN MA4475 Mtge 207.222.500% Due 11-01-4112-27-21 12-27-21 dp Interest FN POOL MA3638 59.494.000% Due 04-01-4912-27-21 12-27-21 dp Interest FN MA3834 73.863.000% Due 11-01-49Page 165 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 12-01-21 To 12-31-21Trade Settle TranDate Date Code Activity Security Amount12-27-21 12-27-21 dp Interest FN MA3871 78.913.000% Due 12-01-4912-27-21 12-27-21 dp Interest FN MA3960 84.663.000% Due 03-01-5012-27-21 12-27-21 dp Interest FN MA4237 MTGE 173.692.000% Due 01-01-5112-31-21 12-31-21 dp Interest US TREASURY NOTES 1,031.252.750% Due 06-30-2512-31-21 Ending Balance 2,517,679.81DIVIDEND ACCRUAL12-01-21 Beginning Balance 0.0012-17-21 01-31-22 dp Dividend SPDR S&P 500 ETF 28,429.7212-30-21 01-05-22 dp Dividend ISHARES ETF CORE MSCI EAFE 6,167.8712-30-21 01-04-22 dp Dividend FLEXSHAR STX GLOBAL BROAD INF ETF1,192.3112-31-21 Ending Balance 35,789.90Page 166 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISAL sort by CUSIPCITY OF KENAI PERMANENT FUNDSDecember 31, 2021Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest IncomeFNMA & FHLMC3128MC3L7 256,397.0000 7,060.7300 FHLMC POOL G14203 104.562501 7,382.88 105.251007,431.49 23.54 282.433128MFE46 190,000.0000 75,856.9300 FG POOL G16255 99.703123 75,631.73 104.2610079,089.19 158.04 1,896.423128MJYU8 477,000.0000 102,477.0100 FG POOL G08722 102.085937 104,614.62 106.92900109,577.64 298.89 3,586.703128P7MT7 2,000,000.0000 71,796.0600 FG POOL C91270 105.671877 75,868.24 107.12300 76,910.09 269.24 3,230.8231307LNS3 301,000.0000 75,338.1000 FG POOL J30401101.296875 76,315.14 105.62000 79,572.10 188.35 2,260.143132D6NU0 125,000.0000 96,849.6250 FR SB8503 Mtge102.812504 99,573.52 102.68100 99,446.16 32.28 1,936.993132L5B28 450,000.0000 168,238.7700 FG POOL V80057 100.234376 168,633.08 106.55900179,273.55 420.60 5,047.1631335CC69 150,000.0000 55,815.1600 FG G61893 101.140626 56,451.80 104.9190058,560.71 139.54 1,674.453133A0DW1 100,000.0000 37,652.2100FR QA5517 102.312497 38,522.92 103.86800 39,108.60 94.13 1,129.573133ANV43 300,000.0000 293,715.5140 FR QC4235 Mtge 102.312500 300,507.69 102.12100299,945.22 122.38 7,342.893133KGP44 100,000.0000 46,722.0100 FR RA1343 104.687501 48,912.10 104.5290048,838.05 116.81 1,401.663133KLS65 250,000.0000 234,865.9750 FR RA5041 Mtge99.488280 233,664.12 99.78100 234,351.62 78.29 4,697.323133KYUU1 115,000.0000 100,015.2300 FR RB5095 MTGE103.835939 103,851.75 101.60900 101,624.48 33.34 2,000.303138ASR38 1,500,000.0000 194,327.5500 FN POOL AJ1405 104.484375 203,041.93 109.81100213,393.03 647.76 7,773.103138EKRA5 374,582.0000 108,299.0400 FN POOL AT2324100.203126 108,519.02 105.97100 114,765.58 54.15 3,248.973138WJM96 125,000.0000 39,604.6400FN AS8483 102.953126 40,774.21 105.31700 41,710.42 99.01 1,188.143138WJYG7 783,285.0000 188,111.8500 FN POOL AS8810 102.039062 191,947.57 106.63500200,593.07 548.66 6,583.913138WPSN5 335,507.0000 109,220.7400 FN POOL AL3180 100.203125 109,442.59 105.94600115,715.01 273.05 3,276.623140F9WP6 139,000.0000 69,070.9100 FN POOL BD2453 99.890625 68,995.36 105.5960072,936.12 172.68 2,072.133140KESQ2 100,000.0000 61,878.8000 FANNIE MAE POOL104.984378 64,963.07 102.12100 63,191.25 128.91 1,546.973140KLRM6 175,000.0000 125,765.1300 FANNIE MAE POOL105.109373 132,190.94 102.50800 128,919.32 262.01 3,144.133140KY2A1 250,000.0000 230,824.0900 FN BR1668 Mtge99.535156 229,751.12 99.78100 230,318.59 76.94 4,616.483140QFS42 115,000.0000 92,240.0000 FN CA7738 MTGE105.640623 97,442.91 102.12100 94,196.41 192.17 2,306.0031416BXA1 4,000,000.0000 76,682.3200 FNCL POOL 995373 106.718781 81,834.44 110.44700 84,693.32 287.56 3,450.7031418CHG2 148,000.0000 61,398.6200 FN POOL MA2930103.562500 63,585.95 107.58800 66,057.55 204.66 2,455.9431418CU77 225,000.0000 52,358.8400 FN MA3305 103.015627 53,937.79 105.8040055,397.75 152.71 1,832.5631418CUA0 125,000.0000 28,097.1300 FN MA3276 105.750001 29,712.72 106.01300 29,786.61 81.95 983.4031418D6M9 100,000.0000 99,004.2300 FN MA4475 Mtge 103.578130 102,546.73 103.24700 102,218.90 41.25 2,475.1131418DBG6 101,000.0000 16,930.8800 FN POOL MA3638103.093756 17,454.68 106.34000 18,004.30 56.44 677.2431418DHL9 100,000.0000 28,246.1900 FN MA3834 101.898438 28,782.43 103.67600 29,284.52 70.62 847.3931418DJR4 100,000.0000 30,083.7300 FN MA3871 101.906254 30,657.20 103.64000 31,178.78 75.21 902.5131418DMJ8 100,000.0000 32,277.7700 FN MA3960 102.312502 33,024.19 103.65500 33,457.52 80.69 968.3331418DV74 115,000.0000 102,775.0400 FN MA4237 MTGE 103.734374 106,613.04 99.78100 102,549.96 34.26 2,055.50Accrued I5,516.103,185,147.49 3,247,612.98 5,516.10 88,892.00CORPORATE BONDS00206RDG4 100,000.0000 100,000.0000 AT&T INC 119.320000 119,320.00 141.32500 141,325.00 2,125.00 6,375.00035240AL4 100,000.0000 100,000.0000 ANHEUSER-BUSCH INBEV WORLDWIDE114.309000 114,309.00 111.23000 111,230.00 866.67 4,000.0006051GGG8 100,000.0000 100,000.0000 BANK OF AMERICA CORP 106.308000 106,308.00 124.26300 124,263.00 1,987.01 4,443.0006406FAD5 200,000.0000 200,000.0000 BANK OF NEW YORK MELLON 97.833000 195,666.00 102.16600 204,332.00 1,650.00 4,400.00099724AL0 110,000.0000 110,000.0000 BORGWARNER INC107.338000 118,071.80 103.31200 113,643.20 1,457.50 2,915.0014149YBD9 100,000.0000 100,000.0000 CARDINAL HEALTH111.470000 111,470.00 120.16700 120,167.00 1,442.78 4,900.0015135UAP4 70,000.0000 70,000.0000 CENOVUS ENERGY INC 119.594000 83,715.80 118.15500 82,708.50 163.33 3,675.00172967KG5 150,000.0000 150,000.0000 CITIGROUP INC101.647000 152,470.50 108.12800 162,192.00 2,605.42 5,550.00237194AL9 35,000.0000 35,000.0000 DARDEN RESTAURANTS INC 110.588000 38,705.80 108.25200 37,888.20 224.58 1,347.50Page 167 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISAL sort by CUSIPCITY OF KENAI PERMANENT FUNDSDecember 31, 2021Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest Income29250NAR6 100,000.0000 100,000.0000 ENBRIDGE INC 101.135000 101,135.00 107.81700 107,817.00 1,706.11 3,700.0029717PAT4 70,000.0000 70,000.0000 ESSEX PORTFOLIO LP111.749000 78,224.30 110.62000 77,434.00 933.33 2,800.00369550BL1 100,000.0000 100,000.0000 GENERAL DYNAMICS CORP 106.120000 106,120.00 108.86600108,866.00 875.00 3,500.00437076BD3 100,000.0000 100,000.0000 HOME DEPOT INC115.627000 115,627.00 131.86900 131,869.00 1,841.67 4,875.00458140BR0 100,000.0000 100,000.0000 INTEL CORP 113.484000 113,484.00 113.58800 113,588.00 1,040.00 3,900.0046625HJT8 200,000.0000 200,000.0000 JPMORGAN CHASE & CO 105.181000 210,362.00 105.86300 211,726.00 3,229.17 7,750.00485170BE3 110,000.0000 110,000.0000 KANSAS CITY SOUTHERN 108.001000 118,801.10 106.31400116,945.40 641.67 3,850.0049446RAU3 150,000.0000 150,000.0000 KIMCO REALTY CORP 94.918000 142,377.00 105.10300 157,654.50 2,062.50 4,950.00500255AX2 50,000.0000 50,000.0000 KOHL'S CORPORATION 99.802000 49,901.00 101.8420050,921.00 281.25 1,687.50501044DE8 100,000.0000 100,000.0000 KROGER CO 99.820000 99,820.00 103.90800 103,908.00 559.44 2,650.00559080AP1 110,000.0000 110,000.0000 MAGELLAN MIDSTREAM PARTN109.069000 119,975.90 105.92500116,517.50 1,448.33 4,345.0061746BDQ6 100,000.0000 100,000.0000 MORGAN STANLEY IND FINANCIAL S103.711000 103,711.00 106.00900 106,009.00 667.36 3,875.00637417AM8 70,000.0000 70,000.0000 NATIONAL RETAIL PROP INC 126.032000 88,222.40125.20100 87,640.70 709.33 3,360.0067077MAX6 75,000.0000 75,000.0000 NUTRIEN LTD 99.738000 74,803.50 115.75400 86,815.50 395.00 2,962.50718546AL8 50,000.0000 50,000.0000 PHILLIPS 66 126.486000 63,243.00 126.0750063,037.50 311.46 2,437.50761713BG0 150,000.0000 150,000.0000 REYNOLDS AMERICAN INC 108.467000 162,700.50 108.00000162,000.00 352.29 6,675.00871829BH9 100,000.0000 100,000.0000 Sysco Corporation 120.536000 120,536.00 117.66600 117,666.00 1,310.28 4,450.0087971MBK8 50,000.0000 50,000.0000 TELUS CORP 121.524200 60,762.10121.11000 60,555.00 95.56 2,150.0094974BGA2 100,000.0000 100,000.0000 WELLS FARGO & COMPANY 99.882000 99,882.00 105.16800 105,168.00 1,026.67 3,300.00Accrued I32,008.703,069,724.70 3,215,895.70 32,008.70 110,823.00DOMESTIC LARGE CAP EQUITY FUNDS/ETF33939L860 3,140.0000 3,140.0000 FLEXSHARES QUAL DIV ETF 40.528831 127,260.53 61.34000 192,607.60 0.0078462F103 17,373.0000 17,373.0000 SPDR S&P 500 ETF210.225633 3,652,249.91 474.96000 8,251,480.08 0.003,779,510.44 8,444,087.68 0.00DOMESTIC MID CAP EQUITY FUNDS/ETF464287507 15,676.0000 15,676.0000 ISHARES CORE S&P MIDCAP 400 ET117.926983 1,848,623.39 283.08000 4,437,562.08 0.00DOMESTIC SMALL CAP EQUITY FUNDS/ETF464287804 19,263.0000 19,263.0000 ISHARES S&P SMALLCAP 600 INDEX50.323765 969,386.68 114.510002,205,806.13 0.00INTERNATIONAL EQUITY FUNDS/ETF46432F842 56,229.0000 56,229.0000 ISHARES ETF CORE MSCI EAFE 66.294585 3,727,678.21 74.64000 4,196,932.56 0.00EMERGING MARKET FUNDS/ETF46434G103 45,198.0000 45,198.0000 ISHARES ETF CORE MSCI EMERGING52.970444 2,394,158.11 59.86000 2,705,552.28 0.00REAL ESTATE & INFRASTRUCTURE33939L795 21,409.0000 21,409.0000 FLEXSHAR STX GLOBAL BROAD INF 50.566646 1,082,581.32 57.35100 1,227,827.56 0.0046641Q738 7,041.0000 7,041.0000 JPMORGAN BETABUILDERS MSCI US 81.496971 573,820.17 111.06000 781,973.46 0.001,656,401.50 2,009,801.02 0.00U.S. TREASURY 912810QK7 125,000.0000 125,000.0000 US TREASURY NOTES 127.111805 158,889.76 131.80100 164,751.25 1,829.57 4,843.75912810SH2 95,000.0000 95,000.0000 US TREASURY NOTES 102.981445 97,832.37 120.46100 114,437.95 354.61 2,731.25Page 168 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISAL sort by CUSIPCITY OF KENAI PERMANENT FUNDSDecember 31, 2021Unit Total Market Accrued AnnualCusip9 Original Face Quantity Security Cost Cost Price Value Interest Income912810SN9 15,000.0000 15,000.0000 US TREASURY NOTES 100.738267 15,110.74 84.91800 12,737.70 24.34 187.50912810SS8 115,000.0000 115,000.0000 US TREASURY NOTES 96.637565 111,133.20 93.16800107,143.20 242.63 1,868.75912810SZ2 50,000.0000 50,000.0000 US TREASURY NOTES100.878900 50,439.45 101.93800 50,969.00 377.72 1,000.00912810TA6 75,000.0000 75,000.0000 US TREASURY NOTES96.421880 72,316.41 96.95300 72,714.75 495.75 1,312.509128285M8 160,000.0000 160,000.0000 US TREASURY NOTES 102.380210 163,808.34 111.15200177,843.20 649.17 5,000.009128286B1 20,000.0000 20,000.0000 US TREASURY NOTES 101.741271 20,348.25108.10600 21,621.20 198.30 525.00912828R36 75,000.0000 75,000.0000 US TREASURY NOTES 95.634709 71,726.03 101.6760076,257.00 158.24 1,218.75912828T91 150,000.0000 150,000.0000 US TREASURY NOTES 99.406253 149,109.38 101.68000 152,520.00 417.47 2,437.50912828XZ8 75,000.0000 75,000.0000 US TREASURY NOTES 99.707033 74,780.27 105.7070079,280.25 5.70 2,062.50912828YU8 185,000.0000 185,000.0000 US TREASURY NOTES 102.371092 189,386.52 101.70300188,150.55 264.29 3,006.25912828YV6 170,000.0000 170,000.0000 US TREASURY NOTES 102.277341 173,871.48 101.57000172,669.00 224.18 2,550.00912828ZQ6 10,000.0000 10,000.0000 US TREASURY NOTES100.793000 10,079.30 93.50000 9,350.00 8.11 62.50912828ZY9 20,000.0000 20,000.0000 US TREASURY NOTES 99.996100 19,999.22 99.27700 19,855.40 11.55 25.0091282CAB7 20,000.0000 20,000.0000 US TREASURY NOTES100.160150 20,032.03 97.00000 19,400.00 20.92 50.0091282CAC5 50,000.0000 50,000.0000 US TREASURY NOTES100.019540 50,009.77 99.93000 49,965.00 26.15 62.5091282CAD3 200,000.0000 200,000.0000 US TREASURY NOTES 95.493850 190,987.70 94.98100 189,962.00 313.86 750.0091282CAE1 20,000.0000 20,000.0000 US TREASURY NOTE99.726562 19,945.31 93.25800 18,651.60 47.21 125.0091282CAK7 180,000.0000 180,000.0000 US TREASURY NOTES 99.484378 179,071.88 99.08600 178,354.80 67.13 225.0091282CAP6 90,000.0000 90,000.0000 US TREASURY NOTE99.753905 89,778.51 99.00000 89,100.00 24.11 112.5091282CAV3 125,000.0000 125,000.0000 US TREASURY NOTES 97.636720 122,045.90 95.07400118,842.50 142.01 1,093.7591282CBL4 340,000.0000 340,000.0000 US TREASURY NOTE 99.315862 337,673.93 97.05100 329,973.40 1,444.77 3,825.0091282CBS9 100,000.0000 100,000.0000 US TREASURY NOTES 99.589840 99,589.84 99.10900 99,109.00 321.13 1,250.0091282CBU4 110,000.0000 110,000.0000 US TREASURY NOTES 99.957027 109,952.73 99.53900 109,492.90 35.32 137.5091282CBV2 200,000.0000 200,000.0000 US TREASURY NOTES 99.527345 199,054.69 98.99600 197,992.00 160.71 750.0091282CCB5 125,000.0000 125,000.0000 US TREASURY NOTES 100.890624 126,113.28 101.26600126,582.50 263.73 2,031.2591282CCC3 180,000.0000 180,000.0000 US TREASURY NOTES 99.855467 179,739.84 98.63700 177,546.60 58.43 450.00Accrued I8,187.113,102,826.14 3,133,459.86 8,187.11 39,693.75AGENCIES3130AJ4B2 125,000.0000 125,000.0000 FHLB 104.268000 130,335.00 101.23100 126,538.75 615.02 2,031.253130AJZ36 125,000.0000 125,000.0000 FEDERAL HOME LOAN BANK 99.900000 124,875.00 98.04000 122,550.00 258.33 750.00Accrued I873.35255,210.00 249,962.10 873.35 2,781.25CASH AND EQUIVALENTSDIVIDEND ACCRUAL 35,789.90 35,789.90 0.00VP4560000 WF ADV GOVT MM FD-INSTL #1751 2,517,679.81 2,517,679.81 0.002,553,469.71 2,553,469.71 0.00TOTAL PORTFOLIO26,542,136.37 36,400,142.10 46,585.26 242,190.00Page 169 Page 170 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Shellie Saner, City Clerk DATE: January 27, 2022 SUBJECT: Planning & Zoning Commission Vacancy Commissioner Robert Springer resigned his position on the Planning & Zoning Commission effective January 27, 2022. Kenai Municipal Code (KMC) 14.05.015 in part establishes that the City Clerk shall notify the Council when a vacancy on the Planning & Zoning Commission occurs and advertise the notice of vacancy. The notice of vacancy was posted on January 31, 2022 and has been scheduled for publication on February 6 & 8, 2022. The deadline for interested candidates to apply is noon on February 9, 2022. Page 171 ROBERT C. SPRINGER January 27, 2022 Kenai City Council RE: Planning & Zoning Commissioner Resignation Mayor Gabriel and Kenai City Council members: At the Planning & Zoning meeting last night I announced my resignation as commissioner. This letter is my written resignation notice. It has been an honor and a pleasure to be a member of the Kenai Planning & Zoning Commission. Due to some personal issues and possible future plans I wish to resign my position. This was a difficult decision to make because I did enjoy being a Commissioner but with my possible future plans I didn’t feel I could provide my service as well as I have provided in the past. On another note, I might suggest as my replacement; Victoria Askin. Since she has already been a P&Z Commissioner she would have significant knowledge of how the Planning Zoning Commission works. Thank you for providing me with the privilege of being a Planning & Zoning Commissioner. Sincerely, Robert C. Springer Page 172 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: FEBRUARY 2, 2022 VENDOR DESCRIPTION DEPT. ACCOUNT ENVIRONMENTAL HEAL TH SCIENCES FIRE DEPT FLOORING PROJECT PUBLIC SAFETY CAP IMPS MACHINERY & EQUIPMENT BOB'S SERVICES VIBCO DC VIBRATOR SHOP OPERTING SUPPLIES STATE OF AK-DEC ANNUAL PERMIT FEE WWTP MISCELLANEOUS ANGUS WARREN PHYSICIAN SPONSOR FIRE PROFESSIONAL SERVICES AMOUNT 4,112.00 2,829.54 7,920.00 3,000.00 Page 173 FEBRUARY 2, 2022 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET: ACTION ITEM REQUESTED BY Add to item D.1 Ordinance No. 3267-2022 • Amendment Memo City Manager Add to item G.2. Purchase Orders Over $15,000 • Kirila Fire Memo City Manager MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Paul Ostrander, City Manager DATE: February 2, 2022 SUBJECT: Ordinance 3267-2022 Requested Amendment The purpose of this memo is to request an amendment to Ordinance 3267-2022. If for any reason it is determined that COVID leave is no longer necessary, the Council could repeal the COVID leave provisions in this ordinance but could only do so by enacting a new ordinance, which requires two meetings This amendment would allow the repeal of the leave provisions by resolution which could be accomplished with one meeting. The following amendment is respectfully requested. Motion Thank you for your consideration. Add a new sentence at the end of Section 1 that reads: The leave provisions authorized by this ordinance may be repealed at any time by Council resolution. MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Director of Public Works DATE: February 2, 2022 SUBJECT: Purchase Order – Kirila Fire Staff is in the process of closing out the grant for the Alaska Regional Fire Training Facility. The project was split into three separate contracts as Council may recall, them being Fire Props and Controls, Building Renovations, and new ARFF Trucks. This memo is specific to the Fire Props and Controls Contract through Kirila Fire. Kirila Fire was originally contracted at $1,993,000. Throughout the project four change orders were processed with a pending 5th as Final Adjusting: Change Order 1 on 2/20/20 in the amount of $120,000.00 Change Order 2 on 3/15/21 in the amount of $22,764.37 Change Order 3 on 3/15/21 in the amount of $26,392.50 Change Order 4 on 3/15/21 in the amount of $102,407.50 Change Order 5 pending in the amount of (-$20,265.53) Final Adjusting Total Contract including all Change Orders is $2,244,298.84 Council has previously approved Change Orders 1-4 under Ordinance 3112-2020 and Ordinance 3175-2020 respectfully. Purchase Order 119055 will now be reduced to $2,244,298.84 with the execution of Change Order 5. Change Orders to date equate to roughly 12.6% of original contract. All work is completed and remained within budgeted amounts. Council’s consideration is respectfully requested. CITY OF KENAI CITY COUNCIL February 2022 FY2021/2022 Scope Recap Promote Local Business Promote Relocation & Tourism Event Promotions Capture Kenai On Film Creative Services KENAI CITY COUNCIL 3 BEST PLACE TO ALASKACAMPAIGN UPDATE We kicked off a new round of relocation ads in Alaska and the Lower 48. CITY OF KENAI 4 CAMPAIGN DETAILS Targeting Shift in 2022 Real estate inquiries have shifted since Q4 2020 / Q1 2021 Relocation is driving real estate demand Focused on relocation campaigns to capitalize on real estate demand Tourism targeting will commence in April 2022 5 6 Views within State2021 Q3 Cross-Market Demand: Kenai Peninsula Where is the Borough's Housing Demand Coming from? Lower 48 Alaska International 7 2021 Q3 Cross-Market Demand: Kenai Peninsula Where is the Borough’s Housing Demand Coming from? Views from other States Lower 48 Alaska International CAMPAIGN DETAILS New Relocation Campaign Continued with the “MadLib” concept Ads focused on work / life balance and the Alaskan lifestyle Increasing awareness of Kenai compared to the greater Kenai Peninsula Campaigns can be repurposed for Tourism 8 CITY OF KENAI 10 With abundant nature and miles of open water, the City of Kenai is the ideal destination to live the Alaskan lifestyle. Get out of the mainstream in Kenai, the Best Place to ALASKA. CITY OF KENAI 12 With abundant nature and miles of open beach, the City of Kenai is the ideal destination to live the Alaskan lifestyle. Discover your next adventure in Kenai, the Best Place to ALASKA. CITY OF KENAI 14 With more room to stretch and a low cost of living, the City of Kenai is the ideal destination to live the Alaskan lifestyle. Discover work/life balance in Kenai, the Best Place to ALASKA. CITY OF KENAI 18 19 Total Campaign Performance December 2021 –January 2022 3,349,680 Total Impressions 37,400 Video Plays 1,012,251 Reach (People) 3,349 Sessions 84.3% % New Sessions 4,069 Pageviews DEMOGRAPHICS 2022 CITY OF KENAI 20 16.9% 20.6% 24.9% 16.4% 13.8% 7.4% Users Age A18-24 A25-34 A35-44 A45-54 A55-64 A65+ Male 50.7% Female 49.3% Gender December 2021 –January 2022 U.S. MAP CITY OF KENAI 21 STATE MAPS CITY OF KENAI 22 California Georgia STATE MAPS CITY OF KENAI 23 Nevada Arizona STATE MAPS CITY OF KENAI 24 Washington Texas BUSINESS MARKETING To assist the City of Kenai in suppor ting local businesses in Kenai so they can thrive. CITY OF KENAI 25 SOCIAL MEDIA SEMINAR 26 MARKETING SEMINAR FOR SMBS 27 BUSINESS MARKETING Ongoing Services Will repeat the “Battle for Attention” presentation in Summer Will provide a zoom presentation(s) for KCCVC Luncheons Will provide zoom presentation(s) for young entrepreneurs org Working with City to promote incentives for businesses in Kenai 28 EVENT PROMOTIONS Promoting City-sponsored events locally, regionally, and nationwide. CITY OF KENAI 29 5 TH ANNUAL KENAI SILVER SALMON DERBY •$13,242 in sponsorships •50% increase over 2020 •42% increase participation over 2020 •PR Audience: 104,548,640 2021 CITY OF KENAI 30 6 TH ANNUAL KENAI SILVER SALMON DERBY •Goal: $20,000 in sponsorships •Goal: 50% increase in participation CITY OF KENAI 31 KENAI SILVERSALMON DERBY 6th AnnualKENAI SILVERSALMON DERBY The Kenai Silver Salmon Derby reduces selective fishing practices which lead to catch-and-release injuries that compromise the health of the silver salmon population. KenaiSilverSalmonDerby.com @KenaiSilverSalmonDerby TUESDAY, SEPT 13 to SUNDAY, SEPT 18, 2022 THE WORLD’S MOST RESPONSIBLE FISHING TOURNAMENT KENAI RIVER, KENAI, ALASKA $10 PER DAY $50 entire derby A family-friendly fishing tournament where ANYONE can WIN prizes! Tournament is subject to final determination of sustainability by Alaska Fish & Game. Alaska State Parks Special Use Permit #21-KA-4249/845 Alaska State Charitable Gaming Permit #482 PROMOTING KENAI Nationwide media attention for the City of Kenai CITY OF KENAI 32 CITY OF KENAI 33 CITY OF KENAI 34 MEDIAFEED.ORG CITY OF KENAI 35 CITY OF KENAI 36 CITY OF KENAI 37 CITY OF KENAI 38 CITY OF KENAI 39 Coming Up: 2022 2,000-word article with photos (August Issue) Print ad: 3 issues Website Banner: Summer Website Featured Image: August 2 Email Blasts Showcase Kenai Silver Salmon Derby IMPACT OF DIVINING POINT MARKETING Measurable results of our work CITY OF KENAI 40 IMPACT OF DIVINING POINT MARKETING Comparative Sales Tax Revenue Reviewed sales tax revenue across the Kenai Peninsula Pre-2019 and Post-2019 tax revenue Sustainable growth trends PRESENTATION TITLE 41 IMPACT OF DIVINING POINT MARKETING Comparative Sales Tax Revenue PRESENTATION TITLE 42 Seward Homer Soldotna Kenai 2017 vs 2016 +2.8% +4% +16.7% 0% 2018 vs 2017 +3.5% +5.2% +2.2% +3.3% 2019 vs 2018 +6.8% +5.1% +1.8% +4.6% 2020 vs 2019 -34.7% -8.2% +0.6% +5.7% IMPACT OF DIVINING POINT MARKETING REAL ESTATE SALES Relocation of families and businesses has been our primary goal in our scope Growing the community Identifying successful growth patterns PRESENTATION TITLE 43 MARKETS IN DECLINE 44CITY OF KENAI Not All Communities Are Growing Pine Bluff, Arkansas Danville, Illinois Charlestown, West Virginia Decatur, Illinois ALASKA’S GROWTH 45CITY OF KENAI First increase since 2016 Kenai Peninsula: +0.21% Alaska’s Median Age: 49 Kenai Peninsula Media Age: 42 GREATER KENAI –RESIDENTIAL AVERAGE SALE PRICE 46CITY OF KENAI KENAI –MEDIAN LIST PRICE: DECEMBER 2021 2022 47 The median list price of homes in Kenai, AK was $560,000 in December 2021 , compared to $259,000 in 2020. Kenai, AK was a seller's market in December 2021, which means that there are more people looking to buy than there are homes available. CITY OF KENAI KENAI –HOME FOR SALE: DECEMBER 2021 48 The number of homes for sale in Kenai, AK was 11 in December 2021 , compared to 45 in 2020. CITY OF KENAI IMPACT OF DIVINING POINT MARKETING We’ve Built a Solid Foundation Momentum! Expounded on the work of past marketers in Kenai We are putting Kenai on the map! Kenai Silver Salmon Derby is very popular –at home & nationwide Providing more promotional and educational opportunities for businesses 49 2021 CITY OF KENAI 50 2021 CITY OF KENAI 51 2021 CITY OF KENAI 52 2021 CITY OF KENAI 53 2021 CITY OF KENAI 54 ONWARDFY 22/23 •Keep up the momentum! •Promote tourism in Q2 2022 •Expand outreach and support for local businesses •Promote 6th Annual Kenai Silver Salmon Derby 20XX PRESENTATION TITLE 55 THANK YOU Coy West Founder & CEO coywest@diviningpoint.com CITY OF KENAI 56 Kenai City Council - Regular Meeting Page 1 of 4 February 02, 2022 Kenai City Council - Regular Meeting February 02, 2022 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska **Telephonic/Virtual Information on Page 3** 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) 1. Coy West - City of Kenai Marketing Presentation 2. Brandy Niclai and Bill Lierman, Alaska Permanent Capital Management - 2021 Financial Performance, Financial Projections and Recommended 2022 Asset Allocation for the City's Permanent Fund Investments. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED AS AMENDED BY SUBSTITUTE. Ordinance No. 3267-2022 - Authorizing COVID Leave for City Employees that Test Positive for COVID-19, and Authorizing the Use of Funds from a Grant from the State of Alaska - Department of Health and Social Services - Division of Public Health - COVID Emergency Operations Center to Fund the Leave. (Administration) • Substitute Ordinance No. 3267-2022 - Authorizing COVID Leave for City Employees that Test Positive for COVID-19, and Authorizing the Use of Funds from a Grant from the State of Alaska – Department of Health and Social Services – Division of Public Health – COVID-19 Emergency Operations Center to Fund the Leave and COVID-19 Testing. (Administration) Kenai City Council - Regular Meeting Page 2 of 4 February 02, 2022 2. ENACTED UNANIMOUSLY. Ordinance No. 3268-2022 - Increasing Estimated Revenues and Appropriations in the Water and Sewer Special Revenue Fund and Authorizing a Purchase Order Increase to Alaska Waste for Sludge Disposal Services At The Waste Water Plant (Administration) 3. ENACTED. Ordinance No. 3269-2022 - Amending Kenai Municipal Code Section 7.30.020, Land Sale Permanent Funds, to Identify the Circumstances and Limitation on the Use of Derivative Investments and to Add Two New Classes of Assets to the List of Authorized Investments and to Codify the Applicable Benchmark by Which these Asset Classes Will be Measured and Evaluated (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 2022-08 - Designating the Investment and Allocation Plan for the City’s Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2022. (Administration) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of January 19, 2022. (City Clerk) 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 Over $15,000. (Administration) 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval - Non-Objection to Liquor License Renewals for Uptown Motel/Back Door Lounge and Uptown Motel/Louie's. (City Clerk) 4. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 2/16/2022. *Ordinance No. 3270-2022 - Increasing Estimated Revenues and Appropriations in the General, Airport, Senior Citizen, and Water & Sewer Funds, and Authorizing a One-Time Premium Payment to Eligible Employees. (Vice Mayor Glendening and Council Members Winger and Sounart) 5. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 2/16/2022. *Ordinance No. 3271-2022 - Increasing Estimated Revenues and Appropriations in the Airport Land Sale Permanent Fund to Transfer Earnings in Excess of Budgeted Amounts to the City’s Airport Fund. (Administration) 6. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 2/16/2022. *Ordinance No. 3272-2022 - Increasing Estimated Revenues and Appropriations in the General Land Sale Permanent Fund to Transfer Earnings in Excess of Budgeted Amounts to the City’s General Fund. (Administration) Kenai City Council - Regular Meeting Page 3 of 4 February 02, 2022 7. APPOINTMENT OF SARAH DOUTHIT CONFIRMED. Action/Approval - Confirmation of Mayoral Nomination for Appointment to Mini-Grant Steering Committee. (Mayor Gabriel) 8. WORK SESSION SCHEDULED FOR 3/7/2022. Discussion - Request to Schedule a Council Work Session for the Draft Land Management Plan. (Administration) H. COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION M. PENDING ITEMS 1. Resolution No. 2022-04 - Awarding a Three Year Contract for the Purchase of Microsoft Software. (Administration) [Clerk's Note: At the January 19, 2022 Meeting, this item was Postponed to the February 16, 2022 Council Meeting; a motion to enact is on the floor.] N. ADJOURNMENT O. INFORMATION ITEMS 1. Purchase Orders Between $2,500 and $15,000 Kenai City Council - Regular Meeting Page 4 of 4 February 02, 2022 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. Join Zoom Meeting OR https://us02web.zoom.us/j/87839274421 Dial In: (253) 215-8782 or (301) 715-8592 Meeting ID: 878 3927 4421 Passcode: 988655 Meeting ID: 878 3927 4421 Passcode: 988655