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HomeMy WebLinkAbout2006-09-06 Council PacketMAKE 2'9~ PACKETS ag COUNCIL PACKET ~ISTRIBUTION COUNCIL MEETING DATE: f /lo~p(p Ma or/Council t~) / Attorne Ta lor/5 rin er/Kebschull Clerk S Cit Mana er Public Works Police De artment ~ Finance En ineer Senior Center / Air ort /" Kim Librar Parks & Recreation / Clarion Fire De artment / Schmidt Mellish VISTA ~ Student Re . N/l~t KSRM Boylz (2) ~swis* Eldrid e* *Until October 3, 2006 election is certified. A6EN~A DISTRIBUTION DELaVER Counci) and Student Representative Packets to Police Department Dispatch desk. The Clarion, KSRM, Mellish & Schmidt's Office will pick their packet up in my office. The portion of the ngenda published by the Clarion should be emailed as soon as possible after Noon on packet doy. The camera-ready agenda c:/myfiles/documents/minutes/agenda form for paper) is emailed to Denise at Peninsulo Clarion (at email folder Work Session/Special Meetings, or Composition in Contacts or Ibell@acsalaska.net). Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emailed to me and I hold them in my HTML file. Place them onto the city's website from there as soon ns possible before leaving the office for the weekend. 0 ~ z w w ~ J t9 Z ~ O V ~ w z ~ Q ~ ~ > „~ ~ ~ , ~ w r ~ o ¢ ~ o ° ° ~ ~ ~ ~ m u i > ~ ~ ~ ~ ~ ~ ~ ~ w O r ~ o ¢ ~ ~ o o o ~ o 0 m d ~ cn ~ ~ ~ ~ ~ ~ 0 ~ d w ~o ~ ~ ta: O C9 z w w ~ U Z ~ O V > ~ ~ w w O ~ ~ ~ O Q uj J O ~ ~ O ~ d ~ ~ ~ ~ > ~ ~ ~ ~ 0~ o~ ~ ~ w ~ w z ~" ~ } ~ o a ~ O m a ~ ~ ~ ~ v i ` ~ w 0 ~ d o~ R a > ~ ~ ~ ~ r`~ °" ~ ~ w ~ ~ ~ ~ a ~ ~ O ~ ~ ~ ~5 0 0 (d m d ~ cn ~ ~ > ~ ~ ~ ~ ~ w ~ ~ O ~ m ~ ~ O ~ ¢ ~ ~ ~ ~ t > ~ ~ ~ ~ w ~ ~ ~ O ~ ~ O Q ~ 0 0 ~ ~ 0 0 m a ~ tn ~ ~ > ~ 0 u: O t9 Z H w u.t ~ U Z ~ O v ~ ~ w }~oQ ma~ai ACaENYSA KENAI CYTY COUNCIL - REGUI.AR MEET%NG SEPTEMBER 6. 2006 a:oo r.na. KENAI CI'I°Y COUNCIL CHAMB http: / /www.ci.kenai.ak.us YTEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *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 councii 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. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: UNSCIiEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS ETEM E: PUBLIC HEARINGS 1. Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 t~rport Administration and Operation), KMC 21.10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy Governing Modification of Existing Leasesj, and Replacing Them With KMC 21.05 (Airport Administration and Operation). KMC 21.10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Iand Outside of the Airport Reserve). Clerk's Note: A motion was passed at the August 16, 2006 meeting to postpone action on Ordinance No. 2180-2006 to September 6, 2006 and that a second public hecuvig be heid at that time. a. 3ubstitute Ordiaance No. 2180-2006 -- Repealing the E~dsting KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Lands}, KMC 21.15 (Provisions Requu-ed) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Reserve LandsD and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). 2. Osdinance No. 2181-2006 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund Library Depax-tment for a State Grant. Ordinance No. 2182-2006 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Police Department for a State Grant. 4. Ordinance No. 2183-2006 -- Repealing the Existing KMC 7.30 (Airport Land and Terminal) and Replacing It with a New KMC 7.30 (Airport Land Sale Permanent Fund). 5. Ordinance No. 2184-2006 -- Amending Portions of KMC 1.56 (Kenai Municipal Library Depai•tenent) and KMC 1.57 (Library Commissionj Regarding Lending Policies, and Replacing the Term °Librarian" with "Library Director." 6. padinance No. 2185-2006 -- Establishing a Cent~-al Mixed Use Zane (CMU) at KMC 14.20.125 and Amending the Various Parts of the Kenai Zoning Code by Adding the Provisions to Encompass the New Zone, and Updating Portions of the Land Use Table at KMC 14.22.010. 7. Ordisxance No. 2186-2006 -- Amending Estimated Revenues by $3,580 in the Senior Citizen Title III Fund and Increasing Estimated Revenues and Appropriations by $1,000 in the Senior Citizen Fund. 8. Ordinance No. 218?-2006 -- Increasing Estimated Revenues and Appropriations by $24,630 in the General Fund to Pay for Attomey's Fees Awarded in the Recreation Center Litigation. 9. Resotution No. 2006-50 --1Yansferring $8,000 in the Airport Fund to Purchase Equipment. ITEM F• NIINqJTES 1. *Regular Meeting of August 16, 2006. %TEM G: UNFIA"ISHED BUSINESS ITEM H: Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. "Ordinaace No. 2188-2006 -- Increasing Estimated Revenues and Appropriations by $500 in the General Fund to Purchase Library Books. 4. *Ordinance No. 2159-2006 -- Increasing Estimated Revenues and Appropriations by $16,000.00 in the General Fund for a Homeland Security Grant to Fund a Rewrite/Revision of the City of Kenai Emergency Operations Plan. 5. Approvai -- Election Boards/October 3, 2006 City of Kenai General Election 6. Approval -- Amendments to L'abrary Regulations '7. Discussfon -- Proposed Angler Drive Special Assessment District/Report of City Manager. ITEM Y: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Comnussion 4. Library Commission 5. Parks & Recreation Cominission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Comznittees a. Beautification Committee b. Alaska Municipal League Report ITEM J: REPORT OF THE MAYOR ITEM K: ADMINYSTRATION REPORT5 1. City Manager 2. Attorney 3. City Clerk ITEM L: 1. Citizens (five muiutes) 2. Council __ None Scheduled %TEM M: -l Suggested by: Administration C%TY OF KENAI ORDINANCE NO. 2180-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA. REPEALING THE EXISTING KMC 21.05 (AIRPORT ADMINISTRATION AND OPERATION), KMC 21.10 (LEASING OF AIRPORT LANDS), KMC 21.15 (PROVISIONS REQUIRED) AND Ffl~IC 21.20 (POLICY GOVERNING MODIFICATION OF EXISTING LEASES), AND REPLACING THEM WITi~i KMC 21.05 (AIRPORT ADMINISTRATION AND OPERATION), KMC 21.10 (LEASING OF AIRPORT RESERVE LANDS) AND KMC 21.15 (LEASE AND SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE). WHEREAS, the City of Kenai has undertaken a Supplemental Airport Master Plan process in which a comprehensive review of city policies regazding the use, lease and sale of airport lands was completed; and. WHEREAS, numerous publlc hearings were held during the process, including meetings with the Kenai City Council, Airport Commission, Planning and Zoning Comrnission, the Kenai Economic Development Strategies group, and members of the public, in order to increase public comment and participation during the process: and, WHEREAS, it is in the best interest of the City of Kenai to create an Airport Reserve and modemize the leasing provisions regazding Airport Reserve land and to prohibit land sales within the reserve; and, WHEREAS, it is in the best interest of the City of Kenai to modernize its leasing procedures for auport land outside the Airport Reserve and to eliminate the ability of new lessees to have the vested right to purchase the leased property once the property's development plan has been completed; and. WHEREAS, there may be instances where it is in the best interest of the City of Kenai to sell or convey some airport property outside of the Airport Reserve: and, WHEF2EAS. it is not the intent of this ordinance to alter or amend existing leases during their original terms; and, WHEREAS, extensions or renewals of existing leases not governed by the terms of that lease shall be processed according to the provisions of this ordinance, and, WHEREAS, it is in the best interest of the City of Kenai to enact the new policies and procedures as shown in Attachments A. B and C. NOW, THEREFORE. BE IT ORDAINED BY THE COUNCIL OF THE CI1Y OF KENAI. ALASKA that: KMC 21.05, 21.10. 21.15 and 21.20 are hereby repealed and KMC 21.05. 21.10 and 21.15 as shown on Attachments A, B and C are hereby enacted. Ordinance No. 2180-2006 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16~ day of August, 2006. PAT PORTER, MAYOR A'I'I'EST: Carol L. Freas, City Clerk Introduced: August 2, 2006 Adopted: August 16. 2006 Effective: September 16, 2006 (7/27/06 sp) Title 21 KENAI D4UNICIPAL AIRPORT AND THE AIRPORT RESERVE Chapters: 21.05 Airport Administration and Operation 21.10 Leasing of Airport Reserve Lands 2I.15 Leasing of Non-Airport Reserve Lands 21.20 Airport Commission Chapter 21.05 AIRPORT ADMINISTRATION AND OPERATION 5ectionsc 21.05.010 21.05.020 21.05.030 21.05.040 21.05.050 21.05.060 21.05.070 21.05.080 Airport Reserve. Airport Reserve boundary map. Definitions. Regulation of the airport. Use or occupancy of the Airport Reserve. Parking automobiles and airceaft. Environmental requirements. Penalties. 21.05.010 Airport Reserve. (a) There is established an Airport Reserve for the development, expansion, maintenance, operation, protection, and perpetuation of the Kenai Municipal Airport. The boundaries of the Airport Reserve aze established as shown on the map codified as 21.05.020. (b) No city-owned land within the Airport Reserve shall be sold or otherwise conveyed out of City ownership for any purpose, except as provided in a lease executed by the City before the effective date of this section. 21.05.020 Airport Reserve Boundary Map. (See Appendix I to this Chapter.) 21.05.030 Definitions. Unless the context requires otherwise, the foilowing words or phrases have the meaning given below when used in this Title 21. (a) "Airport" means all the Facilities and land of the Kenai Municipal Airport within the Airport Reserve. (b) "Airport Manager" means the official to whom the City Manager has delegated [he authority and responsibility of managing and directing the activities of the airport. "Airport Manager" includes that person's authorized representative. Ordinance 2180-2006 Attachment A Page 1 of 4 (c) "Airport Reserve" means the city-owned land reserved from sale and designated under 21.05.010 and 21.05.020. (d) "City Manager" means the official to whom the City Council has delegated the responsibility of managing and directing all activities oF the CiCy. "City Manager" includes those persons to whom the Manager has delegated responsibility to perform functions under this Title 21. 21.05.040 Regulation of airport. The City Manager may regulate the manner in which the airport is operated with reference to safety, accommodation, user fees, and service to the public. The City Manager is aTithorized to adopt, amend, and repeal such rules and regulations as may be necessary. Regulations promulgated under authority of this section are effective on the date designated by the Clty Manager. The City Council may by resolution at any meeting revise or repeal any regulation adopted under authority of this section. In this connection, the rules and regulations adopted prior to the enactment of this section are hereby ratified, approved, and continued in full force and effect until further amended or repealed by subsequent action of the City Manager. 21.05.050 Use or Occupancy of the Airport Reserve. No person may use or occupy city-owned land or facillties within the Airport Reserve for any purpose unless, (a) the portion of the land or facility being used or occupied is designated by the city for public use and the person's use or occupancy conforms to that public use; or (b) the person first obtains a lease, permit, concession, or other written permission from the City authorizing the use or occupancy; or (c) the person is on a premises with the express or implied consent of the lessee, permittee, or concessionaire. 21.05.060 Parking automobiles and aircraft. It shall be unlawful for a person to park an aircraft or au[omobile on the airport in any location or in any manner contrary to a regulation adopted under KMC 21.05.030, or a rule or order issued by the Airport Manager pursuant to a regulation adopted under KMC 21.05.030. The Airport Manager, including the manager's designated representative, shall be vested with full police powers under the authority of the City to enforce the provisions of this section. 21.05.070 Environmentat requirements. (a) A person using the aiiport shall comply with all applicable environmental laws. (b) A lessee, permittee, or concessionaire who is required under any environmental law to submit a report or other document about a violation or potential violation of an environmental law to a regulatory agency shall provide a copy of the document to the City Manager. Any person who receives a permiz from an environmental regulatory agency in connection with the person's use of the airport shall, within ten (10) days of receipt of the pernut, provide a copy of the permit to the City Manager. (c) A lessee, permittee, or concessionaire shall provide to the City Manager a copy of (1) any notice of violation or other notice, claim, or citation alleging a violation of an environmental law affecting airport property that a regulatory agency issues to or files against that lessee, pernuttee, or concessionaire; and Ordinance 2180-2006 Attachment A Page 2 of 4 (2) any complaint filed in a court that alleges violation by the lessee, permittee, or concessionaire of an environmental law affecting airport property. (d) The City Manager shall require a person responsible for the wntamination of airport property to remediate and return contaminated aitport property to an environmentally acceptable condition to the satisfaction of any regulatory agency having jurisdiction. However, any regulatory agency approval of a proposed remediation plan that limits the future use of aitport property is subject to approval by the City Manager before the responsible person may begin remediation activities on the airport. A person remediating contaminated airport property may not unreasonably interfere with `(1) a lessee's use of, or access to, the lessee's premises, unless (i) the contamination is a direct result of the lessee's operations; or (ii) the lessee first expressly consents; or (2) the operation or development of the airport unless the City Manager first expressly consents. (e) If the City Manager has cause to believe a premises or other property on the airport may have been contaminated, the Manager may cause to be performed an environmental assessment on the premises or property to establish the presence and source of any contamination and to describe the environmental condition of the premises or property. While perfornvng the assessment, the City wiil not unreasonably interfere with a lessee's use of, or access to, the lessee's premises unless the lessee first expressly consents. The City will assume the cost of the assessment of a premises or property if contamination is not found on the premises or property. If contamination is found on the premises or property, the person responsible for the ' conCamination shall, upon notice from the City Manager, (1) reimburse the City for the cost of the assessment; and (2) clean up the contamination. (~ For purposes of this section 21.05.060, interference with (1) a lessee's use of, or access to, the lessee's premises is unreasonable if the interference (i) poses a safety hazard or a substantiat disruption of the lessee's use of, or access to, the lessee's premises; ar (ii) can be avoided without materially increasing the cost or materially decreasing the effectiveness of the effort to achieve remediation satisfactory to all agencies having jurisdiction, or a reasonable environmental assessment, as applicable; (2) the operation or development of the airport is unreasonable if the interference poses a safety hazard or a material disruption of the operation or development of the airport. (g) For the purposes of this chapter 21.05, the following terms aze defined as follows: (1) "Contamination"-the unpermitted presence of any released Hazardous Substance. (2) "Environmental AssessmenY' - an assessment of property, prepazed in a manner consistent with generally accepted professional practices, that is supported by reports and tests that deternune the environmental condition of property and the presence, type, concentration, and extent of a Hazardous Substance in, on, and under the surface of the property. (3) "Environmental Law"-any applicable federal, state, or local statute, law, regulation, ordinance, code, pernut, order, decision, judgment of any governmental entity relating [o environmental matters, including littering and dumping. Ordinance 2180-2006 Attachment A Page 3 of 4 (4) "Hazardous Substance"-any substance that is defined under an Environmental Law as hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant, contaminant, petroleum, petroleum product, or oil. (5) "Materially Contributed To"-to cause the release or migration of a Hazardous Substance in a reportable quantity as defined under applicable Environmental Law. (6) "Responsible"-when used in regard to environmental contamination, means having materially contributed to, assumed under an assignment, or being otherwise liable for by law or contract. 2I.05.080 Penalties. Violations of this chapter shall be punished as provided for violations in KMC 13.05.010. Ordinance 2180-2006 Attachment A Page 4 of 4 Chapter 21.10 LEASING OF AIRPORT I2~SERVE LANDS Sections: 21.10.010 Airport reserveland. 21.10.020 Lands available for leasing. 21.10.030 Qualifications of applicants or bidders. 21.10.040 Applications. 2~.10.050 Filing fee and deposit. 21.10.060 No right of occupancy; Application expiration. 21.10.0'70 Processing procedure. 21.10.080 Lease amendment or renewal. 21.10.090 Length of lease term. 21.10.100 Rental rate determination. 21.10.110 Reimbursement for city-constructed improvements. 2110120 Lease utilization. 21.10.130 Bidding procedure. 21.10.140 Lease execution. 21.10.150 Form of lease. 21.10.160 Re-evaluation of rent. 21.10.170 Use permits. 21.20.180 Acquisition of real property. 21.10.010 Airport reserve land. (a) This chapter applies to airport-owned land within the Airport Reserve. (b) The provisions of this chapter shall not alter or amend the terms or rights granted under leases existing prior to the effective date of this chapter. (c) Pending lease applications filed prior to the effective date of this chapter shall come under the provisions of KNIC 21.10-20. Otherwise the provisions of this chapter shall apply. 21.10.020 Lands available for leasing. (a) Subject to the provisions of this chapter, city-owned land within the Airport Reserve may be leased as provided in this chapter unless the land is identified in the latest Federal Aviation Administrarion-approved Airport Layout Plan for the airport or in the latesC Airport Land Use Plan as being required for the operation or safety of the airport, or for the construction, preservation, future construction, or future expansion of facilities on the airport, including (1) runways, runway safety azeas, taxiways, aprons, water lanes, water taxiways, and other aircraft operational areas; (2) access roads, public streets, parking lots, and other facilities for use by motor vehicles; and (3) public ternunal buildings. (b) Notwithstanding (a) of this section, (1) apron space may be leased, but only for aircraft fueling, loading, unloading, parking and maneuvering purposes; and Ordinance No. 2180-2006 Atiachment B Page 1 of 10 (2) land required for the future eonstruction or future expansion of airport facilities: (i) may be leased for an interim period not extending beyond the date on which the City Manager determines the land will be required for the construction or expansion; but (ii) may not be leased if the City Manager determines that granting the lease would interfere with, or jeopardize, the safe ogeration of the airport. 21e10.030 Qualifications of applican[s or bidders. An applicant or bidder for a lease is qualified if the applicant or bidder: (a) Is an individual at least eighteen (18) years of age; (~) Is a group, association, or corporation which is authorized to conduct business under the laws of Alaska; or (c) Is acting as an agent for another and has qualified by filing with the City Manager a proper power of attorney or a letter of authorization creating such agency. The agent shall represent only one (1) principal to the exclusion of himself. The term "agent" includes real estate brokers and agents. 21.10.040 Applications. (a) All applications for lease of lands shall be submitted to the City Manager on forms provided by the City Manager, together with the non-refundable filing fee and any applicable deposit required under 21.10.050. The City Manager shall not accept an application that the Manager determines to be incomplete. Upon receipt of a complete application, filing fee, and any applicable deposit, the City Manager shall cause the application to be stamped with the date and time of its receipt. (b) With every application, the applicant shall submit (1) a development plan, showing and stating: (i) The purpose of the proposed lease; (ii) The use, nature, proposed location on the premises, and estimated cost of improvements to be constructed; (iii) The type of construction; (iv) The anticipated construction beginning and completion dates; and (v} Whether the intended use and proposed development conforms with the (i) zoning ordinance of the City; (ii) comprehensive plan of the City; (iii) latest Federal Aviation Administration-approved Airport Layout Plan for the airport; and (iv) the latest Airport Land Use Plan. (2) A business plan, if the applicant proposes to operate a business on the proposed premises. The plan must inciude (i) a comprehensive description of the proposed business; (ii} the number of people the applicant expects to employ in the business during its first full yeaz of operation; (iii) the number of customers the applicant expects business to serve during its first full year of operation; (iv) the applicant's source of capital. If the applicant plans to borrow funds, include a letter from a bank or other lending institution expressing interest in providing capitai; and Ordinance No. 2180-2006 Attachment B Page 2 of 10 (v) the applicant's estimate of the gross receipts of the business during its first year of full operation; (3) A site plan, if the land the applicant desires Co lease is not a platted lot or tract. The site plan must show the location and dimensions of the proposed lease site, bu[ need not be prepared by an engineer or surveyor; and (4) A KPB tax compliance certi~icate and statement Chat the appiicant is cusent with any charges, fees, rents, tases or other sums due and payable to the City. (c) Anytime during the processing of a lease application, the City Manager may request, and the applicant shall supply, any clarification or additional information that the City Manager re"asonably deternunes is necessary for the City to make a final decision on the application. 21.10.050 Filing fee and deposit. (a) When submitting an application for lease of land, [he applicant shall (1) pay a non-refundable filing fee in the amount of one hundred dollars ($100.00); and (2) make a deposit to show good faith and secure the City in payment of any costs in the foilowing amounts: (i) An appraisal cost recovery deposit of two thousand dollus ($2,000.00); and (ii) An engineering, surveying and consulting cost recovery deposit of two thousand dollazs ($2,000.00). ~ (b) If the City decides to reject the applicant's applicaCion and not enter into a lease with the applicant through no fault of the applicant or failure of the applicant to comply with any requirement of this chapter, any deposit made under (a)(2) of this Section .050 will be returned to the applicant. ~~~ (c) IP the City enters into a lease with the applicanC any deposit made by the applicant under (a) of this section .OSd will be applied to the City's engineering, appraisal, and consulting costs related to the processing of the applicant's application and entering into the lease. The City will apply any unused balance of a deposit to the rent payable under the lease. If the City's costs exceed the amount of any deposit, the applicant shall pay the shortage to the City as a condition of the lease. (d) If the applicant fails to comply with any requirement of this chapter, causes inordinate delay, as determined by the City Manager, or refuses to sign a lease offered to the applicant, the City Manager will reject the applicant's application and apply any deposit made by the applicant under (a) of this section to the Ci[y's appraisal, engineering, and consulting costs incused in connection with the applicant's application. If the City's costs for appraisal, engineering and consulting costs exceed the deposits, the appiicant will be responsible for these costs. The City wili return any unused deposit balance to the applicant. 21.10.060 No reght of occupancy; Application expiration. (a) Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. (b) If the City does not reject the application, an application shali expire on the earlier of the following (1) twelve (12) months after the date stamped on the application under 21.10.040(a) if the City and the appiicant have not, by that time, entered into a lease, unless the Council for good cause grants an extension for a period not to exceed six (6) months; or Ordinance No. 2180-2006 Attachment B Page 3 of 10 (2) the deadline date established under KMC 21.10.140, including any extension of time granted thereunder. 21.10.070 Application processing procedure. (a) Initial Application Review by: (1) Assistant to the City Manager (for application completeness; conformance with Title 21); (2) Airport Manager (for conformance with the Aiiport Land Use Plan, Airport Layout Plan, Airport Master Plan, FAA regulations, AIf' grant assurances, and airport operations); (3) City Planner (for conformance with the Airport Land Use Plan, Comprehensive Plan, - municipal zoning, and future aiaport improvement projects); and (4) City Manager (for adequacy of the applicant's business plan and construction financing plans). (b) The above staff shall present to the City Manager their joint recommendation for action on the application, such as Rejection, Approval, or Approval of a staff alternative. (c) If the City Manager concurs with the staff recommendation, the Manager wili: (i} issue a rejection letter, s[ating the reasons for rejection; or (2) refer the application to the Airport Commission and the Planning & Zoning Commission for review and comment, together with the Manager's recommendation for Approva( or Approval of the staff alternative; and (3) Inform the City Council of the Manager's recommendation. (d) If the City Manager refers the application to the Commissions, the City Manager will consider the recommendadons of the Commissions and (1) Issue a rejection letter, stating the reasons for rejection; or (2) Approve the application or staff altemative, and direct the staff to issue the lease; and (3) Inform the City Councii of the Manager's decision to approve or reject the application; or (4) Obtain the City Council's concurrence if the Manager's decision to approve or reject the application is contrary to the recommendations of the Commissions. (e) An applicant whose application is rejected by the City Manager may appeal to the City Council within fifYeen (15) days following the date on which the Manager's rejection letter was hand delivered or placed in the U.S. mail. (fl If another complete and otherwise appravable application for lease of the same property is submitted by a different applicant before the City Manager enters into a lease with the first applicant, the City Manager will forward the applications, the Manager's recommendation and the commissions' recommendations to the City Councii for approval of the application anticipated to best serve [he interests of the City. The Council may approve one of the applications or direct the City Manager to award a lease of the property by sealed bid. (g) Grounds for the City Manager to reject an application include, (1) the applicanYs failure to provide any clarification or information required under this chapter; (2) the applicant's proposed development or use of the land is inconsistent with (i) the zoning ordinance of the City; (ii) the comprehensive plan of the City; (iii) the latest Federal Aviation Adminisuation-approved Airport Layout Plan for the airpofi (iv) any obligation of the City under the Airport Sponsor Grant Assurances to the Federal Aviation Administration; - Ordinance No. 2180-2006 Attachment B Page 4 of 10 (v) the latest Airport Land Use Plan; or (vi} a regulation of the Federal Aviation Administration applicabte to the aiiport. (3) the applicant's proposed development or use of the land would violate a federal, state, or local law, including an ordinance or regulation of the City; (4) the applicant's failure to reasonably demonstrate the financial viability of the applicanYs proposed development or of [he business the applicant proposes to operate; (5) the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable to the City; (6) the applicant is in default of a requirement of any lease or conuact with the City; '(7) the application is rejected by the City Council in favor of another application for the same land under paragraph (fl above; (8) the City Council decides, under (~ above, to reject ali appiications and awud a lease of the land by sealed bid; and (9) the City Manager or the City Councii deternunes that approval of the appiication is not in the best interest of the City. (h) The City Council may waive provisions of this chapter to lease property or interests in real property with the United States, the state or an Alaska political subdivision when in the judgment of the council it is advantageous to the municipality to do so. 21.10.080 Lease Amendment oe Renewal. An application submitted by an existing tenant for an amendment, term extension, or renewal of the tenant's lease shall be subject to the requirements and procedures of KMC 21.10.010 - 21.10.070, except that (a) KMC 21.10.040(b)(1) and (2) shall not appiy to an application that does not include a proposal to construct new improvements on the premises. (b) I{MC 21.10.040(b)(2) shall not apply to an application that does not include a proposal to add, delete, or aiter a business authorized under the lease. (c) the appraisai deposit under KMC 21.10.050(a)(2)(i) shall not be required for an applicaaon for a lease amendment that, if approved, will not alter the size or value of the premises; and (d) the deposits under KMC 21.10.050(a)(2)(i) and (ii) shail not be required for an appiication for a lease amendment that, if approved, will make only administrative changes in the lease and will not alter the authorized use, size, or value of the premises or if [he City Manager deternrines the City will not incur any engineering, surveying or consulting costs. 21.30.090 Length of Lease Term. (a) The length of term for a lease granted for land within the AirQort Reserve witl be based on the amount of investment the applicant proposes to make in the construction of new permanent improvements on the premises during the first 24 months following the beginning date of the lease or lease extension. (b) The lengch of term for a lease renewal shall be based on the appraised value of the permanent impmvements on the property as set forth in the table in subseccion (d)(1). (c) If the applicant proposes to make less than $100,000 in new permanent impmvements on the premises, the maximum term of a new lease shall be five (5) years. (d) If the applicant proposes to invest $100,000 or more in new permanent improvements on the premises, Ordinance No. 2180-20Q6 AttacNment B Page 5 of 10 (1) the maximum term of a new lease or a renewal of an expiring lease shall be determined according to the following tabie: Applicant's Investrnent (in U.S. Doltars) Maximum is at Least Term of Years I.ess than $100,000 5 $100,000 15 - $125,000 16 $150,000 17 $175,000 18 $200,000 19 $225,000 20 $250,000 21 $275,000 22 $300,000 23 $325,000 24 $350,000 25 $375,000 26 $400,000 27 $425,000 28 $450,000 29 $475,000 30 $500,000 31 $525,000 32 $550,000 33 $575,000 34 $600,000 or more 35 (2) the maximum term extension for an existing lease shall be one (1) year for each $25,OQ0 of additional investment, provided that the total of the remaining lease term and the extension shall not exceed 35 years. (e) In the lease granted to the applicant, the City Manager will include a provision requiring the applicant to substantially complete the proposed permanent improvements within a reasonable period of time, considering the cost and nature of the improvements. Provided however, [hat the time allowed shall not exceed 24 months after the effective date of the lease. (fl In the lease extension granted to the applicant, the City Manager wili include a provision requiring the applicant to complete the additional proposed permanent improvements within a reasonable time period, considering the cost and nature of the improvements provided that the time period shall not exceed twenty-four (24) months after the effective date of the lease extension. (g) The City Manager will include a provision in a lease or lease extension reguiring the lessee to provide a performance bond, deposit, personal guazantee, or other security if the Manager determines security is necessary or prudent to ensure the applicanYs completion of the permanent improvements within the time period set under (e) or (~ of this section. The City Manager will determine the form and amount of the security according to the best interest of the Ordinance No. 2180-2006 Attachment B Page 6 of 10 City, considering the nature and scope of the proposed improvements and the financial responsibility of the applicant. (h) The applicant shalt, within 30 days after completion of the permanent improvements, submit to the City Manager written documentation that the improvements have been completed as required under (e) or (~ of this section. (i) If the applicant shows good cause to the City Manager, and the Manager determines the action is not inconsistent with the City's best interest, the Manager may grant an extension that is sufficient to allow for the completion of the permanent improvements or for submission of documentation that the permanent improvements have been completed under this section. No extension or combination of extensions granted under either subsection (e) or (fl will exceed 12 months. (j) If, within the time required under (e) or (~ of this section, including any extension granted under (i) of this section, the applicant fails to complete the required permanent improvements, the City Manager will execute the forfeiture of the performance bond, deposit, personal guazantee, or other security posted by the applicant under (g) of this section to the extent necessary to reimburse the City for all costs and damages, including administrative and legal costs, arising from the applicanYs failure to complete the required improvements, and initiate cancellation of the lease or reduce the term of the lease to a period consistent with the portion of the improvements substantially completed in a timely manner according to the best interests of the City. (k) When used in this section, the following terms shall have the meanings given: (1) "expiring lease," means a lease with less than one (1} yeaz of term remaining; (2) "existing lease," means a lease with at least one (1) year of term remaining; (3) "permanent improvement," a fixed addition or change to land that is not temporary or portable; (i) "permanent improvement" includes (A) a building, building addition, retaining wall, storage tank, earthwork, fill material, gravel, and pavement; and (B) remediation of contamination for which the applicant is not responsible; (ii) "permanent improvement" excludes items of ordinary maintenance, such as glass replacement, painting, roof repairs, door repairs, plumbing repairs, floor covering replacement, or pavement patching. 21.10.100 Rental rate determination. (a) Beginning in 2007 and at intervals of approximately five (5) yeazs thereafter, the City Manager shall retain the services of an independent, qualified real estate appraiser, certified under Alaska Statute 08.87 to deternune a zone-based squaze foot lease rate for all land w3thin the Airport Reserve that is under lease or available for lease based on the fair market value of the property and the appropriate mazket lease rate for property within [he Airport Reserve. L,ease applications filed after the effective date of this chapter but prior to completion of the initial lease rate deternunation shall have a rental rate of eight percent (8%) of fair mazket value. (b) Following the date on which the City Manager accepts the determinations made under (a) of this section, the Manager shall establish rental amounts for leases as follows: (1) for each new lease granted by the City under this chapter, the rental shall be as deternvned under (a) of this section; and Ordinance No. 2180-2006 Attachment B Page 7 of 10 (2) for leases in existence prior to the effective date of this chapter, the lease rate shall be determined as provided in the lease. (c) Under this section, when determining the fair market value of the premises of an existing lease, an appraiser shall appraise the property (1) in its condition as of the inception of the lease; (2) plus any improvements or amenities subsequently provided by the City; but (3) excluding any improvements or amenities provided by the City under 21.10.110, if lessee has reimbursed the City, or entered into an agreement to reimburse the City, for the cost of _the improvements or amenities. 21.10.110 Reimbuesement for city-constructed improvements. (a) The City Manager may include in a lease a requirement for the lessee to reimburse the City for the City's cost of. (i) land clearing, gravel fill, utility extensions and other improvements or amenities on or in direct connection with the premises, constructed by the City prior to the effective date of the lease: or (2) land ciearing, gravel fill, utility extensions and other improvements or amenicies on or in direct connection with the premises, which the City agrees to construct as a condition of the lease, subject to City Council approval. (b} The Lessee shall reimburse the City for the City's cost of constructing the improvements in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance. The Lessee may pay the entire remaining balance to the City at any time during the term of the lease. ' 21.10.120 Lease utilization. Leased lands shall be utilized for purposes within the scope of the application, the terms of the lease and in confomuty wich the ordinances of the City, and in substantial confornrity with the Comprehensive Plan and Airport Master Pian. Utilization or development for ocher than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan for the land shall constitute grounds for cancellation. 21.10.130 Bidding procedure. With the approval of the Clty Counc3l, the City Manager may designate a specific lot or lots to be leased through competitive sealed bid. In a sealed bid offering, the City Manager shall award the lease to the qualified bidder that offers the highest one-time premium payment, in addition to the lease rent established under this chapter. Provided however, that high bidder and the bidder's lease proposal shall be subject to atl provisions of lease application review and approval under this chapter. 21.10.140 Lease execution. When issuing a lease to an applicant, the City Manager shall hand deliver or mail the document to the applicant. The applicant shall have thirty (30) days fmm the date on which the lease is hand delivered to the applicant or deposited in the U.S, mail within which to execute and return the lease to the City Manager. If the applicant shows good cause to the City Manager, and the Manager determines the action is not inconsistent with the City's best interest, the Manager Ordinance No. 2180.2006 Attachment B Page 8 of 10 will grant an extension noC exceeding thirty (30) days for the applicanC to execute and retum the tease. Upon the failure of the applicant to timely execute and return the lease agreement, the City Manager shall withdraw the offer of the lease in writing. 21.10.150 Form of lease. (a) When leasing land under this TiCle 21, the City Manager shall use a standazd lease form that is: (1) drafted to (i) provide a reasonable basis for the lessee's use of the premises; (ii) foster the safe, effective, and efficient operation of the airport; (iii) conform with the applicable requirements of the KMC, including this Title 21, Alaska statutes, Federal Aviation Administration regulations, and other applicable federal law; and (iv) provide for the best interest of the City. (2) approved as to form by the City Attomey; and (3) adopted by resolution of the City CounciL (b) The City Manager may enter into a land lease that deviates from the standard form adopted under (a) of this section, if (1) the Manager believes the action is in the best interest of the City; (2) the lease is approved as to form by the City Attomey; and (3) the lease is approved by resolution of the City Council. 21.10.160 Re-evaluation of rent. (a) A[ intervals of not less than five (5) yeazs, or at such other time as may be specified in a lease executed before the effective date of the enactment of this section, the City Manager shall increase or decrease the rent charged in the lease to the amount determined under 21.10.100. (b) The City Manager shall change the rent in a lease by giving the lessee written notice at least thirty (30) days in advance of the effective date of the change. (c) The "Fair Mazket Value" of the Premises shall be equal to the then-fair market rate for similar commercial property in the City of Kenai, Alaska (the "Relevant Area"). City sha11 give notice to I.essee of City's estimation of the Fair Market Value not later Chan thirty (30) days prior to the expiration of the then-applicable five-year period, as evidenced and supported by the written opinion of a real estate appraiser certified under Alaska Statute 8.87, selected and paid for by the City, familiar with the Relevant Area and who would qualify as an expert wimess (the "First Appraiser"). If I.essee disagrees with such estimate, it shall advise the City in writing thereof within thirty (30) days of Lessee's receipt of such estimate, as evidenced and supported by the written opinion of a real estate appraiser certified under Alaska Statute 8.87 (selected and paid for by I,essee) familiar with the Relevant Area and who would qualify as an expert witness (the "Second Appraiser"). The parties shall promptly meet to attempt to resolve their differences between the First Appraiser and the Second Appraiser concerning the Fair Market Value of the Premises. If City and L.essee cannot agree upon such value then, with all deliberate speed, they shall direct the First Appraiser and the Second Appraiser to expeditiously and mutually select a third real estate appraiser qualified under Alaska Statute 8.87 (selected and paid for jointly by the parties) familiar with the Relevant Area (the "Third Appraiser"). Within thirty (30) days after the Third Appraiser has been appointed, the Third Appraiser shall decide which of the two respective appraisals from the First Appraiser and the Second Appraiser most closely reflects the Ordinance No. 2180-2006 Attachment B Page 9 of 10 Fair Market Value of the Premises. The Fair Market Value of the Premises shall irrebuttably be presumed to be the value contained in such appraisal selected by the Third Appraiser, aand the rental shall be redetermined based on such value. Notwithstanding anything to the contrary herein, rental shall continue to be paid at the then-applicable rate until any such new rental rate is established, and Lessee and City shall promptly pay or refund, as the case may be, any variance in the rentai, without interest thereon accruing to the extent to paid/refunded in a timely fashion. 21.10.170 Use Permits - The council may authorize the city manager to grant permits for the temporary use of real property owned by the city for a period not to exceed one (1) year, without appraisal of the value of the property or competitive process, for any purpose compatible with the zoning of the land, and on such terms and for such rentals as the council shall determine. 21.10.180 Acquisftion of Real Property (a) The city, by authorization of the city council, expressed in a resolution for such purpose, may purchase or acquire an interest in, lease or real property needed for a public use within the airport reserve on such terms and conditions as the council shall determine, but no purchase shall be made until a qualified appraiser has appraised the property and given the council an independent opinion as to the fuli and true value thereof; (b) Because of the unique value of real property, the city need not acquire or lease real property by competitive bidding. Ordanance No. 2180-2006 Attachment B Page 1€~ ~f 10 Chapter 21.15 LEASE AND SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE Sections: 21.15.010 Airport land outside of the Airport Reserve. 21.15.020 Qualifications of appticants or bidders. 2L15.030 Apglications. 21.15.040 Filing fee and deposit. 21.15.050 Itights prior to Ieasing. 21.15.060 Processing procedure. 21.15.070 Review. 21.15.080 Appraisal. 21.15.090 Terms of lease. 21.15.100 Annual minimum rental. 21.15.110 Bidding procedure. 21.15.120 Principtes and policy of lease rates. 2I.15.130 Reimbursement for city-constructed improvements. 21.15.140 Lease execution. 21.15.150 Lease utilization. 21.15.160 Form of lease. 21.15.170 Conveyance to encourage new enterprises. 21.15.180 Sale. 21.15.190 Sale procedure. 21.15.200 Terms for financing sate of City lands. 21.15.210 Determination as to need for public use. 21.15.220 Property exchanges. 21.15.230 Property sale to adjacent owners. 21.15.240 Grant or devotion. 21.15.250 Use permits. 21.15.260 Acquisition of real property. 21.15.010 Airport tand outside of the Airport Reserve. (a) This chapter applies to airport land outside of the Aiiport Reserve. (b) The City may sell, convey, exchange, transfer, donate, dedicate, direct, or assign to use, or othenvise dispose of airport land outside of the Airport Reserve, including property acquired, held for, or devoted to a pubiic use, in accordance with this chapter. Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands aze not required by the City for a public purpose. (c) The City may lease, sell or dispose of real property by warranty or quit-claim deed, easement, grant, permit, license, deed of trust, mortgage, contract for sale of real property, plat dedication, lease, or any other lawful method or mode of conveyance or grant. Any instrument requiring - execuuon by the City shall be signed by the City Manager and attested by the City Cierk. The fortn of any instrument shall be approved by the City Attorney. Ordinance 2180-2006 Attachment C Page 1 of 11 (d) The provisions of this chapter shall not alter or amend the terms or rights granted under leases existing griox to the effective date of this chapter. (e) Pending lease applications filed prior to the effective date of this chapter shall come under the currently existing provisions of KMC 21.10-20 and KMC 22.05.030-.045. Otherwise the provisions of this chapter shall appiy. 21.15.020 Qualifications of applicants or bidders. An applicant or bidder for a lease is qualified if the applicant or bidder: (a),Is an individual at least eighteen (18) years of age or over; or (b) Is a group, association, or coiporation which is authorized to conduct business under the laws of Alaska;or (c) Ls acting as an agent for another and has qualified by fiting with the City Manager a proper power of attorney or a letter of authorization creating such agency. The agent shall represene only (1) one principal to the exctusion of himself. The term "agent" includes real estate brokers and agents. 21.15.U30 Applications. (a) Al( applications for lease of lands shall be filed with the City Manager on forms provided by the City available at City Hall. Applications shall be dated on receipt an~ payment of filing fee and deposit. No application will be accepted by the City Manager unless it appears to the City Manager to be complete. Filing fees aze not refundable. (b) With every application, the appiicant shall submit a development plan, showing and stating: (1) The purpose of the proposed lease; (2) The use, value and nature of improvements to be constructed; (3) The type of construcdon; (4) The dates construction is estimated to commence and be completed (maximum of two (2) years); and (5) Whether intended use complies with the zoning ordinance and comprehensive pian of the CiYy. Applications shail become a part of the lease. 21.15.040 Filing fee and depos9t» (a) When submitdng an application for lease of land, the applicant shall (1) pay a non-refundable filing fee in the amount of one hundred dollars ($100.00); and (2) make a deposit to show good faith and secure the City in payment of any costs in the following amounts: (i} an appraisal cost recovery deposit of two thousand doilars ($2,OOO.QO); and (ii) an engineering, surveying and consulting cost recovery deposit of two thousand dollars ($2>000.00). (b) If the City ttecides to reject the appIicant's application and not enter into a lease with the applicant through no fault of the applicant or failure of the appiicant to comply with any requirement of this chapter, any deposit made under (a)(2) of this section will be returned to Yhe appiicant. (c) If the City enters into a lease with the applicant any deposit made by the applicant under (a)(2) of this section will be applied to the City's engineering, appraisal, and consulting costs related to the processing of the applicanYs applicadon and entering into the lease. The City will apply any unused balance of a deposit to the rent payabie under the lease. If the City's costs Ordinance 2180-2006 Attachment ~ Page 2 of S. 9+. exceed the amount oP any deposit, the applicant shall pay the shortage to che City as a condition of the lease. (d) If the applicanC fails to comply with any requirement of this chapter, causes inordinate delay, as determined by the City Manager, or refuses to sign a lease offered to the applicant, the City Manager will reject the applicant's application and apply any deposit made by the applicant under (a} of this section to the City's appraisal, engineering, and consulting costs incurred in connection with the applicant's application. If the City's costs for appraisal, engineering and consulting costs exceed the deposits, the applicant will be responsible for these costs. The City will return any unused deposit balance to the applicant. 21.15.050 Rights prior to leasing. The filing of an application for a lease shall give the applicant no right to lease or to the use of the land for which they have applied. The application shall expire within twelve (12) months after the application has been made if a lease has not been entered into between the City and the applicant by that time unless the City Council for good cause grants an extension. No extension may be granted for a period longer than six (6) additional months. I.ease rates aze subject to change on the basis of an appraisal done every twelve (12) months on the property applied for. 21.15.060 Processing procedure. (a) Applications shall be forwarded to the Planning and Zoning Commission upon receipt. The Planning and Zoning Commission shall normally consider applications for specific lands on a first-come, first-served basis if the Commission finds that the application is complete and conforms to the comprehensive plan and the Kenai Zoning Code. Where there is difficulty in obtaining a perfected application, details as to development plans, etc., or where the appiicant fails to comply with directions or requests of the Planning and Zoning Commission, any such priority will be lost. If an application for the purchase of City-owned lands, previously authorized for sale by the Council, is received by the City prior to the Kenai Planning and Zoning Commission making an affirmative or negative recommendation to the Council regarding the lease application for the same property, the City may elect to sell said property in accordance with the provisions of the Code. (b) The City Council shall normally consider a lease proposal only after approval of the Planning and Zoning Commission. However, appeals of Planning and Zoning Commission disapproval may be made to the City Council. Completed lease applications mast be presented to the City Council within thirty (30) days after approval by the Planning and Zoning Commission. (c) Where there are two {2) or more applications for the same airport lands for different uses, then if the Planning and Zoning Commission makes a finding that a subsequent appiication would resul[ in use of the lands for a higher and better purpose with a greater benefit to the City of Kenai and the citizens thereof, then the lease will be issued to such applicant notwithstanding the provisions of subparagraph (a) in this section which provide for leasing on a first-come, first- served basis. Any appiicant may appeal to the City Council from a finding or a refusal to find by the Planning and Zoning Commission by filing an appeal with the City Clerk within seven (7) days after the finding is made or refused by the Planning and Zoning Commission. (d) The decision whether or not to lease land rests in the sole discretion of the City Council. Ordinance 2180-2006 Attachment C Page 3 of 11 21.15.070 Reveew. No teased land may be changed in use, nor may any renewal lease be issueci ur.~il the proposed use or renewal has been reviewed by the Planning Commission and approved by the Council. 21.15.080 Appeaisal. No land shall be leased, or a renewal lease issued, unless the same has been appraised within a tweive (12) month period prior to the date fixed for beginning of the term of the lease or renewal lease. No land shall be leased for less than the approved appraised annual rental. Appraisals shall reflect the number and value of City services rendered the land in question. 21.15.090 Terms of (ease. All leases shall be approved by the City Council before the same shall become effective. The term of any given lease shall depend upon the durability of the proposed use, the amount of investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. 21.Y5.100 Annual minimum rental. (a) Annual minimum rentals shall be computed from the approved appraised market value utilizing the method as described in KMC 21.15.120 below. (b) Upon execution of the lease, the lands become ta~cable to the extent of its leasehoid interest and lessee shall pay all real property taaces levied upon such leasehold interest in these lands, and shall pay any special assessments and taxes as if he were the owner of said land. (c) Rent shall be paid annually in advance. Said payments shail be prorated to conform to the City of Kenai's fiscal year beginning July 1 and ending June 30. If the equivalent monthly payment exceeds two hundred dollazs ($200.00), then the lessee shail have the option of making payments on a monthly basis. (d) I.essee shall be responsible for all sales ta~ces applicable to its opera[ions. 21.15.110 Bidding procedure. As an exception to general policy listed above, the City Council may designate a specific tot or lots to be made available only for bid. This provision shall apply only when there is no outstanding application pending on the lot or lots. As designated, sealed bids shall be received offering a one-time premium in addition to the established lease rate. Highest bid, however, shall be subject to ail provisions of review and approval established for all other lease applications. 21.15.120 Principles and policy af lease rates. (a) A fair return to the Airport System is mandated by ehe terms and conditions of the quitclaim deed and appropriate deeds of release, granting these lands to the Airport System by the Federal Government. To ensure a fair return, all leases for a period in excess of five (5) years shall include a redetermination clause as of the Ffth anniversary, and all lands for lease shall be appraised prior to lease and again prior to redeternrination. I.ease rates: (1) Shall be based on fair mazket value of the land, including an appropriate consideration of facilities and services available (public water, public sewer, storm sewers, and other Ordinance 2180-2006 Aaachment C Page 4 of 11 pubiic utilities) as deternuned by a qualified independent appraiser, considering the best use of the specified land; and, (2) Shall be eight percent (8 %) of fair mazket value. (b) For leases in existence prior to the effective date of this chapter, the lease rate redeternunation shall be as provided in the lease. (c) The City Manager shall change the rent in a lease by giving the lessee written notice at least thirty (30) days in advance of the effec[ive date of the change. (d) The "Fair Market Value" of the Premises shall be equal to the then-fair mazket rate for similar commercial property in the City of Kenai, Alaska (the "Relevant Area"). City shall give notice to Lessee of City's estimation of the Fair Mazket Value not later than thirty (30) days prior to the expiration of the then-applicable five-year period, as evidenced and supported by the written opinion of a real estate appraiser certified under Alaska Statute 8.87, selected and paid for by the City, familiar with the Relevant Area and who would qualify as an expert witness (the "First Appraiser"). If I.essee disagrees with such estimate, it shall advise the City in writing thereof within thirty (30) days of I.essee's receipt of such estimate, as evidenced and supported by the written opinion of a real estate appraiser certified under Alaska Statute 8.87 (selected and paid for by L.essee) familiar with the Relevant Area and who would qualify as an expert witness (the "Second Appraiser"). The parties shall promptly meet to attempt to resolve their differences between the First Appraiser and the Second Appraiser concerning the Fair Mazket Value of the Premises. If City and Lessee cannot agree upon such value then, with atl deliberate speed, they shall direct the First Appraiser and the Second Appraiser to expeditiously and mutually select a third real estate appraiser certified under Alaska Statute 8.87 (selected and paid for jointly by the parties) familiar with the Relevant Area (the "Third Appraiser"). Within thirty (30) days after the Third Appraiser has been appointed, the Third Appraiser shall decide which of the two respective appraisals from the First Appraiser and the Second Appraiser most closely reflects the Fair Market Value of the Premises. The Fair Mazket Value of the Premises shall irrebuttably be presumed to be the value contained in such appraisal selected by the Third Appraiser, and the rental shall be redetermined based on such value. Notwithstanding anything to the contrary herein, rental shall continue to be paid at the then-applicable rate until any such new rental rate is established, and I.essee and City shall promptly pay or refund, as the case may be, any variance in the rental, without interest thereon accruing to the extent to paid/refunded in a timely fashion. 21.15.130 Reimbursement for city-constructed improvements. (a) The City Manager may include in a lease a requirement for the lessee to reimburse the City for the City's cost of (1) land clearing, gravel fill, utility extensions and other improvements or amenities on or in direct connection with the premises, constructed by the City prior to the effective date of the lease; or (2) land clearing, gravel fill, utility extensions and other improvements or amenities on or in direct connection with the premises, which the City agrees to construct as a condition of the lease, subject to City Council approval. (b) The I.essee shall reimburse the City for the City's cost of constructing the improvements in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance. The Lessee may pay the entire remaining balance to the City at any time during the term of the lease. Ordinance 2180-2006 Attachment C Page 5 of 11 21.15.140 Lease execution. The lease applicant shall execute and return Che appropriate lease us~~;A;r;~;nt wrth the CzCy of Kenai within thirty (30) days of mailing the agreement to said applicatit. Tl.e (ease ~greement shall be prepared in accordance with the requirements of this title. Failure to execute and return the lease agreement within the specified period shall result in the forfeiture of all leasing rights. 21.15.150 Lease utilization. L.eased lands shall be utilized for purposes within the scope of the application, the eerms of_the lease and in conformity with the ordinances of the City, and in substantial confornuty with the comprehensive plan. U[ilization or development for other than the alIowed uses shali constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan for the land, consistent with the proposed use and terms of the lease, shall constitute grounds for canceilation. 21.15.160 Form of lease. (a) When leasing land under this Title 21, the City Manager shali use a standard lease form that is (1} drafted to (i} provide a reasonable basis for the lessee's use of the premisesy (ii) foster the safe, effective, and efficient operation of the airport; (iii) conform with the appticable requirements of the KMC, including this Title 21, Alaska statutes, Federal Aviation Administration regulaaons, and other applicable federal law; and (iv) provide for the best interest of the City. (2) approved as to form by the City Attorney; and (3) adopted by resolution of the City Councii. (b) The City Manager may enter into a land lease that deviates from the standard form adopted under (a) of this section, if (1) the Manager believes the action is in the best interest of the Ciry; and (2) the lease is approved as to form by the City Attorney; and (3) the lease is approved by resolution of the City Council. 21.15.170 Conveyance to encourage new enterprises. (a) Notwithstanding any other provisions of this chapter, where it is found that encouragement of a new commercial, industrial or non-profit enterprise would increase the economic stabiliry of the City of Kenai and would be beneficial to the City of Kenai, the City Council by resolution so finding may direct conveyance of one or more parceis of City land by the City Manager to such entexprise upon such terms as to price, conditions of conveyance, and with such contingencies as may be set forth in said resoludon. (b) In the event the land directed to be conveyed under subsection (a) above consists in part or in whole of airport lands, then the resolution ordering its conveyance wili not be effective until the City Council by ordinance has appropriated from the general fund to be dedicated to the airport the difference between the appraised fair market value of said airport lands and the purchase price, if any, set forth in said resolution. Ordinance 2180-2006 At~chment C Fnc~~ 6 of 11 21.15.180 Sale. (a) Airport land outside the airport reserve to which the City of Kenai holds title which are not restricted from sale by the Deed of Conveyance to the City, or which have been released from such restrictions, which the City Council has deternuned are not required for a public purpose, may be listed for sale by the City Manager, except that lands which have been leased shall not be sold unless the Lessee has made a written request to the City to place the land for sale. The decision whether or not to sell the tand rests in the sole discretion of the City. (b) Sales of land pursuant to subsection (a) above shall be made at not less than fair mazket value. The purchaser shall execute the "Agreement For Sale of Land" within six months of the date of appraisal. The City Manager has the option to dispose of such properties in accordance with the sale procedures set out in this Title: (1} By negotiated sale; or (2) By outcry auction to the highest responsible bidder; or (3) By competitive sealed bids to the highest responsible bidder. In the event that the sale is not closed within six months of the date of appraisal, the buyer will be charged, upon closing, interest computed in accordance with the applicable provisions of the Kenai Municipal Code, based upon the total sales price for the number of days past the expiration of the six-month period. 21.15.190 Sale procedure. (a) The City Manager will obtain such an appraisal for a detemunation of the minimum price on said land. (b) Where any party, hereinafter cailed "Applicant," requests that a tract or uacts of land be sold for which an appraisal will be required, which witi require subdividing, piatting, or surveying and staking, or which will require advertising or incurring any other expenditures by the City prior to sale, (1) No actions in prepazation for sale will be taken by the City until an agreement to purchase shall be properly executed and frled with the City Manager for the purchase of such land with payment of sufficient good faith deposit, which shall consist of cash or its equivalent deposited with the Finance Officer of the Ci[y of Kenai, as may be determined by the City Manager, to cover all expenses of the City and such agreement to purchase shall further contain the agreement by applicant to pay any additional costs if said good faith deposit is insufficient to pay all costs incurred by the City. (2) If at any time during the process of preparing for sale, the applicant gives notice to the City Manager of withdrawal of the request for sale, the City Manager shall stop all procedures, shall pay expenses incurred prior to termination of sale procedures, and shall reimburse applicant for any good faith deposit advanced in excess of all expenses incurred. (However, if another pasty desires the sale to proceed, files an application for sale, executes and files an agreement to purchase, and advances sufficient funds therefore, then the prior applicant will be reimbursed for expenses chazges which can be attributed to the subsequent applicant.) (3) If ali actions necessary for preparation for sate have been accomplished, and if neither the applicant nor any other party purchases said land when first offered for sale after such request, then all expenses incurnd in preparation for the sale will be paid from the good- faith deposit, and the balance, if any, shali be returned to the appticant. ff the sums Ordinance 2180-2006 Attachment C Page 7 of I 1 advanced as good faith deposit are insufficient to pay all of the costs, the applicant will be billed for [he balance due and normal collection procedures followed. (4) If the land applied for is sold on public sale set in response to such request to anyone other than applicant, then on closing of said sale, the good-faith deposit will be refunded in total to the applicant. The City's expenses will be first deducted from the deposit of the successfui bidder. (5) If the land in question is sold to applicant, the good-faith deposit advanced, after deducting the City's expenses, will be applied on the payment due at closing. (6) If the land in question is to be sold by sealed bid and the applicant has submitted a valid ' bid, but said applicant is not the high bidder, he may purchase the land by tendering the City a bid equal to the high bid within five days of the bid opening. If the land sale is initiated in accordance with KMC 21.15.060(a), the applicant shall be defined as that party submitting the initial lease application. (c} If the tract of land proposed to be soid is leased land, the lessee may request the sale of said land at not less than the fair mazket value. The current lessee may request to negodate a sale only after, to the satisfaction of the City Manager, development has been completed as detailed in the development schedule which has been incorporated into the lease agreement. If there is no development schedule, the lessee may request to purchase the property if there have been substantial improvements as deternuned by the City Manager. The decision whether or not to seli the land to the lessee rests in the sole discretion of the City. (d) If the tract of land proposed to be sold is not leased land, or is leased land without substantial improvements, then the tract of land may only be sold by outcry auction orby competitive sealed bids. The decision whether or not to sell the land rests in the sole discretion of the City. If the tract is to be put up for such competitive auction or sealed bid sale, notice of sale and the manner in which the land is to be sold shall be published in a newspaper of general circulation within the City once each week for two successive weeks not less than 30 days prior to the date of sale; such notice shall also be posted in at least three public places within the City at least 30 days prior to the date of sale, and such other notice may be given by such other means as may be considered advisable by the City Manager. Such notice must contain: (1) the legal description of the land, (2) a brief physical description of the land, (3) the area and general location of the land, (4) the minimum acceptable offer for the land (which shali be its appraised fair market value), (5) the terms under which the land will be sold, (6} any limitations on the sale of said land, (7) the time and place set for the auction or bid opening, (8) the amount of deposit to be submitted with each bid in order to cover the City's expenses such as survey, appraisal, and reviews, (9) any other matters concerning the sale of which the City Manager believes the public should be informed. (e) Where a real estate agent furnishes a buyer for City land, the closing agent shall be authorized to pay said agent a real estate commission of five percent (5%) of the purchase price for the land or five percent (5%) of the appraised fair market value of the land, whichever is lower, under the following terms and conditions (1) The City Manager shall provide a non-exciusive listing of lands available for sale. Ordinance 2180-2006 Attachment C Page 8 of 11 (2) No commission shall be paid to an agent where said agenc is a party> or in privity with a party, to said sale. (~ Closing of sale of City lands shall be handled by a title or escrow company within the city which specializes in closing of real estate sales. (g) Conveyance of City lands shall be by quit claim or warranty deed fumished by the City, and buyers are advised that all such conveyances are subject to all liens, encumbrances, restrictions, and covenants of record and are specifically, without being limited thereto, subject to any unreleased restrictions contained in the deed or deeds by which the City received title to the land. The deed shali be signed by the City Manager and attested by the City Clerk. The form of the d~ed shall be approved by the City Attorney. (h) If a buyer desires to obtain a preliminary commitment for title insurance or title insurance to the land, then it shall be the responsibiiity of the buyer to obtain such commitment or insurance and to pay for the same. (i) If the tract or tracts of land are sold under tenns by which the City is to accept a note as a portion of the purchase price, the note and accompanying deed of trust must be prepared by an attorney, but must be approved by the City Attorney prior to closing. (j) Said note shall be placed for collection with a bank selected by the City Manager, which may be changed from time to time, and which shalt be the bank in which City funds are deposited. The set-up fee to initiate collection may be negotiated, and the buyer shall pay the annual collection fees for such bank collection. (k) To enable the City to compete on an equal basis with private enterprise in lands disposal, the City Manager is hereby authorized to negotiate a division of the costs of sale listed in KMC 21.15.190(~(g}(h)(i} and (j) to a maximum of fifty percent (50%) of the required costs being borne by the City. 21.15.200 Terms for financing sale of City lands. (a) In order to expedite and facilitate the sale of City lands, the City Manager is hereby authorized to accept terms for said sales and may accept a note secured by a deed of trust for a portion of the purchase price thereof, subject to the following restrictions: {1) If the sale is to a lessee who has placed a lien for financing upon the land or improvements, then the City Manager is not authorized to sell the land except for totai cash payment, provided, however, that the City Manager may accept a note secured by a deed of trust subordinate to the existing security interest if the amount of the note thereby secured is within the difference between the fair market value of the land with improvements, and the sum of all prior security interests. The sale documents shail be subject to the same restrictions contained in the lease as the lease provides at the time of sale. (2) Prior to making a determination to accept a note and deed of trust from a prospective purchaser, the City Manager shall secure a preliminary commitment for title insurance (at purchaser's expense) and a review of the grantee index covering the party desiring to purchase ehe land from the title company in the local recording district, and no credit will be advanced on such sale if there are any delinquent liens or unpaid judgments found in the title company report until any such judgments or liens are paid and releases therefore have been filed. (3) In the event of a credit sale, the down payment required shall be deternuned by the City Manager, but shall not be less than fifteen percent (15%) of the sales price. Ordinance 2180-2006 Attachment C Page 9 of 11 (b) If the City Manager determines that it is in the CiCy's inCerest to sell City lands, the sale shall be either a cash transaction or by a note secured by a deed of trust, subject to paragraph (a) above, and by no other means. The note and deed of trust shall carry terms as follows: (i) The term of such note may be set by the City Manager, but is shall provide for monthly payments and not exceed twenty (20) years unless a longer period for a specific sale of land is approved by resolution of the City Council. (2) Such note shall bear interest at a rate to be determined by the City Council by resolution. 21.15.210 Determination as to need for pubtic use. (aj Whether land shall be acquired, retained, devoted, or dedicated to a public use shall be determined by ordinance which shall contain the public use for which said property is to be dedicated, the legal description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location. (b) Whether land previously dedicated to a public use should be dedicated to a different public use or should no longer be needed by the City for public use shall be deternuned by the City Council by ordinance which shali contain the new public use for which said property is to be dedicated or the reason the land is no longer needed for public use, the legal description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location. 21.15.220 Property exchanges. The Council may approve, by resolution, after public notice and an opportunity for public hearing, the conveyance and exchange of a parcel of City property for property owned by another person subject to such conditions as Council may impose on the exchange, whenever in the judgment of the City Council it is advantageous to the City to make the property excha~age and the City shall receive property (including a portion of money) at least equivalent to the value of the property exchanged by the City. 21.15.230 Property sale to adjacent owners. The council may approve, by resolution, after public notice and an opportunity for public hearing, the sale and conveyance of a pazcel of City property at its appraised value to the owner of adjacent land whenever, in the judgment of the City Council, the parcel of land is of such smail size, shape> or location that it could not be put to practicai use by any other party and, in addition thereto, where there is no foreseeable need of the land for any future use by the City. 21.15.240 Grant or devotion. (a) The Council, by ordinance, may lease, grant or devote real property no longer needed by the City for a public purpose to the United States, the State of Alaska, a local political subdivision of the State of Alaska (including the City of Kenai general fund), or any agency of any of these governments or non-profit corporation, for a consideration agreed upon between the City and grantee without a public sale if the grant or devotion is advantageous to the City. (b) In the event the land directed to be conveyed under subsection (a) above consists in part or in whole of airport lands, then the ordinance ordering its conveyance will not be effective until the City Council by ordinance has appropriated from the general fund to be dedicated to the airport the difference between the appraised fair market value of said airport lands and the purchase price, if any, set forth in said resolution. Ordinance 2180-2006 Attachment C Page 10 of 11 21.15.250 Use permits. The council may authorize the city manager ro grant permits for the temporary use of real property owned by the city for a period not to exceed one (1) year, without appraisal of the value of the property or public auction, for any purpose compatibie with the zoning of the land, and on such terms and for such rentals as the councii shall determine. 21.15.260 Acquisition of Real Property (a) The city, by authorization of the city council, expressed in a resolution for such purpose, may purchase or acquire an interest in, lease or real property needed for a public use within the airport reserve on such terms and conditions as the council shall determine, but no purchase shall be made until a qualified appraiser has appraised the property and given the council an independent opinion as to the full and true value thereof; (b) Because of the unique value of real property, the city need not acquire or lease real property by competitive bidding. Ordinance 2180-2006 Attachment C Page 11 of 1 I KMC 21.05.020 AIRPORT RESERVE BOUNDARY MAP APPENDIX I ~------; ~ i ~ / ~~ ~~~ ~- -- ~ ~ fl~eu~of / KENA~ SKA ~ MEMORANDUM Telephone: (907) 283-7535 / Fax: (907) 283-3014 www.ci.kenai.ak.us TO: Mayor Porter and Councilors FROM: C'~ Cary R. Graves, City Attomey DATE: August 10, 2006 RE: Airport Code Changes This memorandum is intended to summarize the changes to KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). Because of the comprehensive nature of the changes, a traditional legislative format would be too confusing to be a helpfui tool in tracking the changes. Instead, this memorandum will describe the differences in a narrative fashion with references to the retevant code sections and the consultant's recommendations. I hope this approach will be more user-friendly than legislative format. Attached to this memorandum are the consultant's recommendations for changes to KMC 21.05 and KMC 21.10. The consultant (Steve Pavish) did not provide recommended changes to KMC 21.15 that wiii deal with airport land outside of the Airport Reserve. The Administration's recommendations for KMC 21 aze a combination of ideas taken from the consultanYs suggestions for the Airport Reserve and intemal suggestions for manaeement of those lands. I should also note that the Adminisuation does not expect this ordinance to be approved without changes and that a substitute ordinance reflecting the concerns and issues brought up by Councit, Administration, commissioners and the public could be prepared for the second public hearing. L KMC 21.05 AIRPORT ADMINISTRATION AND OPERATION The primary change to this chapter of the code is the establishment of the Airport Reserve. The new KMC 21.05.010 establishes the reserve and KMC 21.05.020 seu the reserve boundaries. No city-owned land within the reserve can be sold unless pursuant to a pre-existing lease granting purchase rights to the tessee. See the new KMC 21.05.010(b). Much of the debate on this issue has centered on the boundaries of the Airport Reverse. I anticipate a good deal more debate and discussion will occur regazding the boundaries of the reserve. Mayor Porter and Councifors August l0. 2006 Page 2 of 10 The second major change to this chapter is the addition of the environmen[al regulacions (the new KMC 21.05.070). This section provides stricter environmental controls and regulation on the airpon. The new KMC 21.05.040 deals with airport regulations. The current system is that the City Manager (CM) has the power to adopt regulations for the airporc and the Council has the ~uthority to repeal or revise those regulations by resotution. The consultant reworded that section but kept the same basic procedure in place f'or adoption and repeal or revision of regulations. There are no significant changes from the consultant's recommendations for KMC 21.05 in the new KMC 21.05. A caveat to the above is that Mr. Pavish did not send a map recommendation for the Airport Reserve boundary with his proposais, so the map attached to the new KMC 21.05 is not a recommendation of his. The consuttants did attach a map to the draft Supplemental Master Plan and that is Attachment 1 to this memo. Attachment 2 is the map attached to Ordinance 2180-2006. That map was generated after the joint Airport Commission/KEDS meeting. It also should be noted that Mr. Pavish's recommendations did not include the now-existing KMC 21.05.045. That section deats with regulation of off-airport rental cars. That section was adopted in 2003 after a great deal of work by the Airport Commission and Council. The Administration feels the omission of that section was an oversight and wili recommend inctusion of the old KMC Z 1.05.045 in the new ordinance. 2. KMC 21.10 LEASING OF AIRPORT RESERVE LANDS This section is a comprehensive change to the City's leasing policies and procedures. It covers land in the new Airport Reserve. Because of the comprehensive changes, section by section review of the new ordinance is useful. a. KMC 21.10.010 (Airport reserve land). This is a new housekeeping section, not included in the consultanYs recommendations, that Administration thought was needed. It states: I) the chapter regulates land in the Airport Reserve; 2) that rights under existing leases are not changed by the ordinance; and 3) pending lease appiications remain under the system in effect at the time the lease was filed. b. KMC 21.10.020 (Lanc3s available for leasing). This section specifies which land wittun the reserve may be leased (i.e. land not currently used by the City such as runways, roads, etc. or anticipated to be used by it). The old section stated that all airport tand was potentially available for lease. The change simply recognizes some reserve land should be off the table for consideration fox leasing. This new section is as recommended by the consultant. ~tayor Porter and Councilors Aueust 10, ?006 Paee 3 of LO a KMC 21.10.030 (Qualifications of applicants or bidders). This section covers the qualifications of lease applicants. The only change from the existing code and recommendations of the consultant are that the age of lease applicants was changed in the new section from 19 to 18. That is to reflect that 18 is the age of majority now rather than 19. d. KMC 21.10.040 (Applications). There aze some significant changes from the current KMC 21.10.030. The new section KMC 21.10.040(b)(1)(iv) drops the two-year mandatory completion date for improvements. Airport Reserve property may not be purchased upon completion of improvements. The City may still require a lease applicant to change his proposed completion date in order to get lease approvat. The lease still may be canceled for failure to complete the developments within the approved time frame (new KMC 21.10.120). The new lease application must state whether the intended use complies with the Airport Layout Plan and the Airport Land Use Plan in addition to the zoning code and comprehensive plan as now required (new KMC 21.10.040(b)(1)(v)). The new KMC 21.10.040(b) requires a business plan, a site plan and a KPB tax compliance certificate. It also states the CM may require submission of additionat information for the application. My understanding is that the KEDS group opposed the inciusion of the business plan requirement because of the proprietary nature of the financing and gross revenue provisions. The only section deleted from the consultant's proposal was a section that required inclusion of "an explanation of how that applicant intends to finance the construction of the proposed improvements. If the applicant intends to borrow funds, the applicant must include a letter from a bank or other lending institution expressing interest in providing financing for the improvement." That subsection was removed because it was redundant. The new KMC 21.10.040(b)(2)(iv) also requires that information. e. KMC 21.10.050 (Filing Fee and Deposit). The new section has a$100 filing fee instead of $20. The deposit to cover expenses is $4,000 ($2,000 for appraisal costs and $2,000 for engineering, surveying and consulting). The old deposit was $2,000 for land already subdivided or $3,000 for un-subdivided land. The consultant recommended a$50 faling fee with a$2,000 appraisal cost recovery fee and a$1,000 engineering, [egal and administrative fee. £ KMC 21.10.060 (No right of occupancy; Application expiration). This section is substantially similar to old KMC 21.10.040. That section says lease applications aze good for one year and may be extended for six additionai months. Lease appraisals are good for twelve months. A thirty-day extension may be granted under the new section. The consultanYs version was submitted prior to the ordinance extending the application Mayor Porter and Councilors August 10. 2006 Page 4 of 10 and appraisal time period from six months to one year. His version had the old time frames in it. Otherwise the new version of KMC 21.10.060 is like the consultant's. g. KMC 21.10.070 (Application processing procedure). This process is substantially changed from the old process in KMC 21.10.060 (Processing procedure). The old system sent leases to the Airport Commission and to the Planning & Zoning Commission to see = if the proposed use was the highest and best use and if it conformed to the Airport Master Plan and any other "goals set by the Commission or Councii:' Under the old system the lease application, if approved, went to the CounciL If the Planning & Zoning Commission disapproved the application, the applicant could appeal to the Council. The old system aliows "conceptual applications" to be filed. I've never seen one of them actually filed. It also provides for the Commission and Council to choose the application with the highest and best use if there are competing lease appiications. The new procedure has an initial review by the Assistant to the CM (for app(ication compieteness and compliance with Title 21), the Airport Manager (for conformance with the Airport Land Use Plan, Airport Layout Plan, Airport Master Plan, FAA airport regulations, AIP grant assurances, and airport operations), City Planner (for conformance with the comprehensive plan, City zoning code, Airport Land Use PIan and future airport developments), and the CM (for adequacy of business plan and construction financing). The various staff inembers will recommend lease application approval, rejection or alternatives to the CM. The CM can then reject the application (stating his/her reasons) or refer the application to the Airport Commission and Planning & Zoning Commission for review and comment with recommendations from staff. The CM shall inform the Council of his/her recommendations. If the CM refers the application to the commissions, he/she shall consider eheir recommendations and approve or reject the lease. If the CM's decision goes against the commission's recommendations, the CM wiil refer the decision to Council for their concurrence. An applicant may appeal a rejection by the CM to the City Council. Competing lease applications will be decided by the Council after review of the CM's and the commission's recommendations. The new section adds the grounds for rejection of the lease application (KMC 21.10.070(g)). It also provides that the application proceduae may be waived for leases to government entities. The process in the new KMC 21.10.070 added the following to the consultant's recommendations: 1) the CM reviews the application's business plan and financing azrangements; 2) the lease application goes to P& Z for review; 3) the appeal period is 15 days rather than 10; 4) "not in the best interest of the City" is added as a basis to deny a lease appiication; and 5) the waiver process for government lease applicants. Mavor Porte~ and Councilors Aueust t0.2006 Page ~ of 10 It shoutd be noted that a lease application is reviewed by Council only if the CM's decision to approve or reject the lease is contrary to the recommendations of the commission, or the applicant appeals a rejection to the Council. h. KMC 21.10.080 (Lease Amendment or Renewal). The old code said lease renewals went to P& Z and the Council for review or changes in use (old KMC 21.10.070). KMC 21.10.080 is a new section that specifies the process is the same as applications (new KMC 21.10.070) with some exceptions. The exceptions aze: I) a development plan and business plan aze not required for appiications not proposing new improvemenu on the premises; 2) applications not adding a new business need not submit a business plan; 3) an appraisai is not required for an application that will not change the size of the leased premises; and 4) appraisal and engineering, surveying, and consulting deposits aze not required for lease changes that are only administrative in nature and do not alter the use, size or value of the premises or if no administrative costs wiil be incurred. i. KMC 21.10.090 (Length of lease term). This section is significantly different than we currently use. The old KMC 21.10.080 only provided that the term of the lease be based on the amount and nature of investment in the improvement. The City adopted some guidelines used by the State regarding a ma~cimum lease term of 55 years £or investments of $375,000 or more. The matrix included here as Attachment 3 is what is currently used. The consultant recommended a matrix beginning with a minimum 6-yeaz term for $12,000 investment with one additional yeaz for each additional $12,000 invested, up to a 35-yeaz lease for $360,000. The Adminisuation did not agree with that recommendation and changed it in the new KMC 21.10.090. Investments of less than $100,000 only get a 5-year lease term. The idea is that less than $100,000 is not really a major investment and should only get a relatively short-term lease. Investments over $100,000 get I S years. ABer that, each additional $25,000 investment adds another year to the lease term for a ma~cimum of 35 yeazs. Under the Administration's proposal, a 35-yeaz lease would require a$600,000 investment rather that $360,000 as suggested by the consuttant. Lease improvements must be completed in two yeazs and the CM may require security (i.e. performance bonds, deposit, or personal guarantees) to ensure development. A masimum extension of 12 months is aliowed for development. Lease extensions wiil be based on the value of new improvements to the premises under the new code. Lease renewals will be based on the value of the existing improvements to the premises rather than new improvements (new KMC 21.10.090(b)}. The consultant recommended renewals be based on new improvements. The KEDS group thought that would penalize existing businesses on the airport, and the Administration agreed with that position. ~[avor Porter and Councilors Augus[ 10.?006 Page 5 of 10 j. KMC 21.10100 (Rental rate determination). This is a major change from ti~e currenC system, which is 6% of fair market value. The consultants recommended a new system based on a five-year reserve-wide based appraisal that would determine the fair mazket value of property and then apply a"capitalization rate." The "capitalization rate" wou(d not be fixed by ordinance but would be whatever the appraiser thought was the appropriate rate when the appraisal was done. The Administration took a different approach. The new ordinance in KMC 21.10.100(a} also uses a five-yeaz reserve-wide appraisal. The difference is that the appraiser would divide khe reserve into zones and come to a square-foot lease value for each zone. Here's how it is envisioned to work. A lessee would come in and apply to lease a lot. Staff would look up the appraisal zone it is in and multiply the squaze-foot rate by the square feet to be leased and come up with the annual rate. The State uses a similaz system. Existing leases wouid continue under the system in their lease. Any lease appfications filed prior to the first reserve-wide appraisal would be handled on an 8% (up from 6%) of fair mazket value approach. k. KMC 21.10.110 (Reimbursement for City-constructed projects). This is a new provision that would allow the City to recapture money spent on developing land by adding a surchaz~e to the lease rate. The draft ordinance is the same as the consultant recommended. 1. KMC 21.10.120 (Lease Utilization). This is based on the old KMC 21.15.020. It provides that the lease must be used for the purpose in the application and in compliance with the comprehensive plan. The new version adds that the lease must also comply with the Aizport Master Plan. rn. KMC 21.10.130 (Bidding Procedure). This is based on the existing KMC 21.10.120. The new section is substantially the same as the old. It allows the City to bid a leased lot, with the winner to be determined by the person bidding the highest one-time premium to be paid in addition to the normal rent. It is as recommended by the consultant. n. K.MC 21.10.140 (Lease execution). This is based on the old KMC 21.10.140. It requires the lease be signed within 30 days. The new section allows a 30-day extension to be granted. It is as recommended by the consultant. oa KMC 21.10.150 (Form of Lease). This is new. The existing code has a laundry list of items to be covered in leases (old KMC 21.15.010-240 and KMC 21.20.010-350). The consultant recommended changing that approach. This ordinance provides that the City adopt a standazd lease form. The lease form will be approved by the Council. Any lease that deviates from the form must be authorized by a resolution of the Council. The new ordinance is as recommended by the consultant. Mavor Porter and Councilors August l0, 2006 Page 7 of (0 p. KMC 21.10.160 (Re-evaluation of Rent). This is the provision that requires re-evaluation of lease rates every five yeazs. The old section is KMC 21.10.130. The old section has a cap on the increase of leases for aeronautical purposes of 50%. The cap was instituted during the "boom" years when real estate values were climbing rapidiy. The general fund had to pay the airport for any (osses due to the cap. The new ordinance eliminates thatcap. The old ordinance did not have an appeal method if the lessee did not agree with the re- evaluation of rent. The new ordinance has an appeal mechanism. The lessee would get an appraisal. T'he City's appraiser and the lessee's appraiser would meet to see if they could resolve the dispute. If not, a third appraiser would be hired to choose between the City's or lessee's valuation estimate. The consultant recommended that rent appeais go to the Council to resolve instead of the method in the new ordinance. q. KMC 21.10.170 (Use permits). This is a new section authorizing the CM to issue special use permits for periods of less than one yeaz without appraisal or competitive process. 1'here is no provision in the old code about special use permits. This issue was not covered in the consultanYs recommendation. r. (KMC 21.10.180 (Acquisition of real property). This is a new section of .the code recognizing the City's ability to purchase real property. It states that because of the unique nature of real property, the City need not purchase land by a competitive process. An appraisal of the property's value must be presented to the Council prior to any resolution authorizing a purchase. 3. KMC 21.15 LEASE AND SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE This is the chapter dealing with airport land outside of the Airpon Reserve. The consultant did not send any recommended code revisions to us. The changes were drafted by the Administration from the consultanYs recommendations regazding the Airport Reserve and our own ideas about needed changes. a. KMC 21.15.010 (Airport lands outside of the Airport Reserve). This section is similu to the old sections KMC 22.05.010-020. It refers to the Ciry's ability to manage and dispose of its airport land ouuide of the Airport Reserve. It provides that the new chapter KMC 21.15 will not alter or amend the rights under existing leases and that pending leases will be processed and awazded under the rules existing at the time of the application. b. KMC 21.15.020 (Qualifications of appiicants or bidders). This is the same as the new KMC 21.10:030. The only real change is that the age is changed from 19 to 18. a KMC 21.15.030 (Applications). This section is the same as the old KMC 21.10.030. ~tayor Porter and Councilors August 10. 2006 Page 8 of IO d. KMC 21.15.040 (Filing fee and deposit). This section raises filing fees from $20 to $100. The deposit is raised from $2,000 for subdivided property or $3,000 for un- subdivided property to $4,000 (a $2,000 appraisal deposit and a$2,000 engineering, surveying and consulting deposit). The requirements of the lease application are unchanged from the old KMC 21.10.010. e. KMC 21.15.050 (Rights prior to Leasing). This section is the same as the old KMC 21.10.040. f. KMC 21.15.060 (Processing procedure). This is lazgely the same as the existing KMC 21.10.060. It eliminated a phrase about the Planning & Zoning considering "other goals set by the Commission or City Council" in their review of the lease application. That phrase was eliminated because it was too uncleaz what constituted "other goals." g. KMC 21.15.070 (Review). This section is the same as the current KMC 21.10.070. h. KMC 21.15.080 (Appraisal). This section is the same as the old KMC 21.10.090. i. KMC 21.15.090 (Terms of Lease). This section is the same as the old KMC 21.10.080. j. KMC 21.15.100 (Annual Minimum Rental). This section is based on the current KMC 21.10.100. It eliminates some outdated language about sales tax and assessments. k. KMC 21.15110 (Bidding procedure). This section is the same as the old KMC 21.10.120. l. KMC 21.15.120 (Principles and policy of lease rates). This is based on the old KMC 21.10.130 with two major changes. The lease rate is determined by taking the fair mazket value of the property times 8%. The old rate was 6%. The Administration felt 8% better reflected current leasing prnctices. This section has also added the same lease rate appeal provisions as the new KMC 21.10.160. m. KMC 21.15.130 (Reimbursement for city-constructed improvements). This is a new section, It is the same as the new KMC 21.10.110. It aldows the City to impose a surcharge to the lease rate to recover some costs of improving the property. n. KMC 21.15.140 (Lease execution). This section is the same as the current KMC 21.10.040. o. KMC 21.15.150 (Lease utilization). This is the same as the old KMC 21.15.020. Mavor Porter and Councilors August 10.2006 Page 9 of l0 p. KNIC 21.15.160 (Form of lease). This section is new. It is the same as the new KMC 21.10.150. It envisions the City using a Counci- approved lease form with leases entered into deviating from the form requirine a resolution from Council. q. KMC 21.15.170 (Conveyance to encourage new enterprises). This section is based on the oid KMC 22.05.025. That section allowed sale of property without competitive bid _ where "encouragement of a new industrial enterprise would be beneficial to the City of Kenai." The Council sets the terms, prices and conditions of sale and conveyance that it determines ue appropriate. The new section adds commercial or non-profit enterprises to industrial enterprise as qualifying. If the sale is for less than fair mazket value, the general fund would have to pay the airport fund for the difference. An example of how the amended section could be used is a sale of "Miilennium Square." For that development the Council may wish to set the price at fair mazket value and award the sale to the developer whose plans conform to the City's development goals for the property rather than merely seil it to the highest bidder. The sale wouid have development requirements and a reversion clause and compensation if the development was not completed. r. KMC 21.15.180 (Sale). This section is similaz to the old KMC 22.05.030 except that it makes it cleazer that the sale of land "rests in the sole discretion of the city." s. KMC 21.15.190 (Sale Procedure). This section is based on the old KMC 21.15.040. The major change is that a lessee will not automatically get the right to purchase leased property for fair mazket value once the developments are compieted. He/she may apply to purchase, but the City has "sole discretion" in determining whether to seil the property. That is a major change in City land policy. t. KMC 21.15.200 (Terms for financing of City (ands). This is the same as the old section KMC 22.05.045. u. KMC 21.15.210 (Determination as to need for public use). This section is the same as the old section KMC 22.05.050 with one exception. The reference to tax foreclosed pazcels was removed to reflect that the City will simply follow state law regarding the taac foreclosure process. v. KMC 21.15.220 (Properry exchanges). This is the same as the old secUOn KMC 22.05.070. w. KMC 21.15.230 (Property sale to adjacent owners). This is the same as the old section KMC 22.05.0'70. x. KMC 21.15.240 (Grant or devotion). This section is based on the old KMC 22.05.080. It allows conveyance of properiy upon terms and conditions set by the City (including Mavor Poner and Councilors August l0. 2006 Page 10 of 10 price) to federal, state or local govemment or non-profit entities without a competitive process if it is advantageous to the City. If the conveyance is for less than fair mazket value, the general fund must make up the difference to the airport fund. y. KMC 21.15.250 (Use permits). This is a new section and is the same as the new KMC 21.10.17Q. It allows the City Manager to issue speciai use permits for up to one yeaz _ without a competitive process or appraisal. z. KMC 21.15.260 (Acquisition of Real Property). This is the same as the new section KMC 21.10.180. It recognizes the City's ability to purchase real property. Given the unique nature of land, a competitive process is not required; but an appraisal must be given to the Council prior to the resolution authorizing the purchase. Please let me know if you have questions. CRG/sp Attachments ~ ~ ~ V? ~ ~ ~ O ~ L ~ ~ ~ ~ O ~ O i ~ Attachment 1 ~ KMC 21.05.020 AIRPORT RESERVE BOUNDARY MAP APPENDIX I FairMarketValue, Purchase Price, or Investment of at Leas4 fhe Foliowing DollarAmount ' Terms of Years 0.00 5 7,SD0.00 6 15,000.00 7 22,500.00 8 30,000.00 9 37,500.00 t0 45,000.00 t 7 52,500.00 12 60,000.00 13 67,500.00 74 75,~00.00 15 82,500.00 16 90,000.00 t 7 97,500.00 t8 105,000.00 t9 112,500.00 20 120,000.00 21 727,500.00 22 135,000.00 23 142,500.00 24 150,OOD.00 25 157,500.00 26 165,000.00 27 172,500.00 28 180,000.00 29 187,500.00 30 795,000.~0 31 202,50D.00 32 210,000.00 33 217,500.00 34 225,000.00 35 232,500.00 36 240,000.00 37 247,500.00 38 255,000.00 39 262,500.00 40 270,000.00 41 277,500.00 42 285.000.00 43 292,SOO.QO 44 300,000.00 45 307,500.00 46 315,000.00 47 322,500.00 48 330,000.00 49 337,500.00 50 345,000.00 51 352,500.00 52 360,000.00 53 367,500.00 54 375,000.00 55 Attachment 3 Kenai Municipai Airport Suppiemental Pianning Assessment Phase 11 Recommended Changes to the Kenai Municipal Code (February 13, 2006) Consultanf's Note: In this set of recommended KMC changes, addifions and deletions are presenfed in MS Word Track Changes format, with deletions from existing code text shown in crossed-out text (sresse~l-e~f) and new wording shown in underlined text (underlined). Code texf that appears in black font is wording drawn from the existing code. Per a November 2005 verbal agreement with City Attorney Cary Graves, in some cases where 1'm recommendrng a major departure from the existing code, 1 have presented an outline of the essential elements, leaving the drafting of the actual code wording to Mr. Graves. Where the purpose of a change or new provision may not be immediately apparent, 1 have inserted explanations in ltalics. This document proposes that a separate Titie be adopted to apply exclusively to the land and facilifies within the Airport Reserve. Since the number of fhe new Title wasn't known at the time this document was prepared, the new Tif(e is reierred fo as Tifie XX. Sfephen L. Pavish Northern Horizon Co. February 13, 2006 Titfe 21 CITY AIRPORT AND AIRPORT LANDS Chapter 21.05 AIRPORT ADMINISTRATION AND OPERATION. Repeal the entire chaoter. (21.05.030 - 050 will be covered in Title XX. 1 ~ understand that 21.05.010 & 020 have not been enforced, as written, for some time and should be repealed. A provision requiring City approval prior to lessee construction of improvements is included in ChapterXX.15.) Chapter 21.10 LEASING OF AIRPORT LANDS Add a new section 21.10.005: 21.10.005 Chapter not aoplicable to Airaort Reserfe. Nothina in this Ghapter 21.10 shall aonlv to anv Citv-owned land within the Airoott Reserve, as defined under Chanter XX.05. Chapter 21.15 PROVISIONS REQUIRED Add a new section 21. 95.005: 21.15.d05 Chapter ~oY applicable to Airport Reserve. Nothinq in this Chaqter 21.15 shall aooiv to anv Citv-cwned land within the Airport Reserve, as defined under Chapter XX.05. Chapter 21.20 POLICY GOVERNING MODIFICATIONS OF EXISTING ~EASES Add a new section 21.20.005: 21.20.005 Chapter not appiicable ta Airport Reserve. Nothinq in this Chapter 21.20 shall applv to anv Citv-owned land within the Airport Reserve, as defined under Chapter XX.05. Chapter 21.25 AIRPORT COMMISSION Repeal entire chapter. (The Arrport Commission is addressed in XX.20.) Chapter 22005 DISPOSITION OF CITY LANDS. Add a new section 22.05.005: 22.05.005 Chapter not applicable to Airport Reserve. Nothinq in this Chapter 22.05 shall aqpiv to anv Citv-owned land within the Airport Reserve, as defined under Chapter XX.05. (The above amendments to Chapters 21.10, 29.15, 21.20, 29.25, & 22.05 are proposed as a quick way for the Cify to implement Title XX for facilities and /and inside the Airport Reserve, while allowrng al! the existing land leasing and sale 2 ordinances to remain in force (as to arrport land outside fne Airport Reserve}. Lafer, if the Cify desired to adopt some of fhe features of Tif/e XX for use in connection with airport land outside the Reserve, appropriate amendments to the above chapters could be adopted.) Titie XX KENAI MUNICIPAL AIRPORT AND THE AIRPORT RESERVE Chapters: XX.05 Airoort Administration and Operation XX.10 Leasinq of Airport Lands XX.15 Form and Conditions of Lease XX.20 Airport Commission Chapter XX.05 AIRPORT ADMINISTRATION AND OPERATION Sections: XX.05.010 XX.05.015 XX.05.020 XX.45.025 XX.05.030 XX.05.040 XX.05.050 XX.05.060 XX.Q5.Q70 Airport Reserve. Airqort Reserve boundarv map. Applicabilitv of Title XX. Definitions. Requlation of the Airport. Use or occupancv of the Airport Reserve Parkinq automobiles and aircraft. Environmental reauirements. Penalties. XX.05.010 Airport Reserve. (a) There is established an Airport Reserve for the development, expansion, maintenance, operation, protection, and perpetuation of the Kenai Municipai Airport. The boundaries of the Airport Reserve are established as shown on the maa codified as XX.05.015. executed bv the Citv before the effective date of this section. XX.05.015 Airport Reserve Boundarv Map. (The map depicting fhe Airport Reserve boundaries would be referenced here.J 3 XX.05.020 Applicabilitv of Title XX. I This Title XX aoplies to all facilities of the Airoort and aH Citv-owned land within the I Airport Reserve. XX.05.025 Definitions. Unless the context repuires otherwise the folfowing words or phrases have the meanina qiven below when used in this Title XX. ja) "Airport° means aii the facilities and land of the Kenai Municioal Airport within the Airport Reserve. (b) "Air~ort Manaqer' means the officiai to whom the Citv Manaqer has deleqated the authoritv and responsibilitv of manaqinq and directinp the activities of the Airqort. "Airoort Manaqer" inciudes that oerson's authorized reoresentative {c1 "Airport Reserve" means the Citwowned land reserved from sale and desiqnated under XX.05.010 and XX.05.015. {d} "Citv Manaqer" means the official to whom the Citv Councii has deleqated the responsibilitv of manaqinq and directina all activities of the Citv "Citv Manaqer" includes those qersons to whom the Manaqer has deleqated resoonsibilitv to perform functions under this Title XX. XX~-.05.030 Regulation of airport. The City Manager may regulate the manner in which the Airport~eaai-Air~er~.apd r~ is operated with reference to t#e-safety, accommodation, user fees, and service to the public. aa~E#sr+t~-EThe City Manager is authorized to adopt, amend. and repeai such rules and regulations as may be necessary to carry out the duties under this grant. Regulations promulgated under authority of this section are effective on the date desiqnated bv the Citv Manaqer , ~ . The City Council may by reso(ution at any meeting revise or repeal any regulation adopted a~d-a~eved under authority of this section. in this connection, the rules and regulations adopted prior to the enactment of this ' ' section are hereby ratified, approved, and continued in full force and effect until further amended or repealed by subsequent action of the City Manager g~ g~+la#+ar~s. The de%ted portion of the third sentence is unclear and unnecessary. As ~ 21.05.030 is wriften in the existing KMC, regulafeons adopted by the City Manager are "effective" (which normally would be understood to mean 4 "enforceable') on the dafe the Manager indicates. However, "at the next meeting fo!lowing their effective date" the regu/afions "are subject to approval by the Cify Council". This suggests that the regufations are not actually eniorceab(e ("etfective') until they are approved by the Council. Furthermore, the specrfrc reference to the `next meeting" ~aises the question of whether the regulations are enforceab(e or are voided if the Council fails to take action on the regulations at the "next meeting". To eliminate this internal confiict in the sentence, i recommend deleting the reference to City Council approvaL The fourth sentence allows the Council to amend or repeal a regulation at any time, so no Manager- adopted regulation wouid be 6eyond the Council's power to amend or repeal, whether at the "next meeting" or anytime. Regarding the deleted portion of the last sentence, what are "acceptable procedures"? "Acceptable" to whom? If the City has a regulation adoption process, it should be specrfically cited here. If the City doesn't have a procedure, it is best to delete the last portion of the sentence, as recommended, or add a regulation adoption procedure to 030. YX 05 040 Use or Occupancv of the Airoort Reserve. No person mav use or occupv CitV-owned Iand or facilities within the Airport Reserve for any purpose unless, fa) the portion of the land or facilitv beinq used or occupied is desiqnated bv the Citv for a public qurpose and the person's use or occupancy conforms to the public ourpose: (b) the person first obtains a lease. qermit, concession. or other written permission from the Citv authorizinq the use or occupancv; or (c) the person is on a qremises with the exoress or imofied consent of the lessee permittee. or concessionaire. XX2a-.05.050 Parking automobiles and aircraft. It shall be unlawful for aa~ person to park an aircraft or aa~-automobile-e~ a#s~a€4 on the Airqort in any location or in anv mannera~ea contrary to a repulation adopted under XX 05 030 or a rule or order issued by the Airport Manaqer pursuant to a requtation adopted under XX.05.030. . The~aid Airport Manager includinq~ the manaqer's#+s designated representative~ shall be vested with full police powers under the authority of the#~+s City to enforceea~s~sa the provisions of this section. (KC 17-34; Ord. 531) (The following environmental section was adapted from 97 AAC 45.045) XX.05.060 Environmental requireme~ts. (a) R person usinq the Airport shall complv with aIl applicable environmentai laws. (b) A lessee, permittee, or concessionaire who is required under anv environmental law to submit a report or other document about a violation or potential vioiation of an a~vironmental law to a requlatorv aqencv shall provide a coqv of the document to tne Citv Manaqer. .4nv person who receives a oermit from an environmental requlatorv aqencv in connection with the person's use of the Airoort shall, within ten (101 davs of receipt of the qermit provide a copv of the permit to the Citv Manaqer. (c) A lessee. permittee. or concessionaire shall provide to the Gitv Manaqer a coov of (11 anv notice of viotation or other notice. ciaim. or citation aileainq a violation of an environmental law affectinq Airport proqertv that a requlatorv aqencv issues to ar files aqainst that lessee. permittee. or concessionaire: and (2) anv compiaint filed in a court that alieqes violation bv the lessee oermittee or concessionaire of an environmental law affectinq Airport propertv. (dl The Citv Manaqer shaii reauire a person responsible for the contamination of Airport propertv to remediate and return contaminated Airport proRertV to an environmenta8v acceptabie condition to the satisfaction of anv requlatorv aqencv havinq iurisdiction. However, any requlatorv aqency aqproval of a proposed remediation plan that limits the future use of Airport propertv is subiect to approval bv the Citv Manager before the responsible person mav beqin remediation activities on the Airport. A person remediatinq contaminated Airport proqertv mav not unreasonablv interfere with (11 a lessee's use of. or access ta, the lessee's nremises. unless (A) the contamination is a direct resuit of the lessee's operations• or (B) the lessee first expressiv consents: or {2) the operation or develapment of the Airport unless the Citv Manaqer first expresslv consents. ~e? ~f the Citv Manaqer has cause to believe a Rremises or other propertv on the Airport mav have been contaminated, the Manaqer mav cause to be pertormed an environmental assessment on the premises or propertv to establish the presence and source of anv contamination and to describe the environmental condition of the premises or propertv. While performinq the assessment, the Citv will not unreasonablv intertere with a lessee's use of. or access to, the lessee's premises unless the lessee 6 ,srst e;<oressiv consents. Ti~~e Citv v~ill assume t~e cost of ;hc- aasessment of a nremises en upon notice from the Citv Manaqer. (1) reimburse the Citv for the cosf or the assessment: ~nd ~ f2l clean up the contamination. Ifl For purposes of this section XX.05.060. interference with (1) a lessee's use of or access to the lessee's ~remises is unreasonabfe if the interference (A poses a safetv hazard or a substantiai disruQtion of the lessee's use of. or access to. the lessee's premises: or (B) can be avoided without materiallv ircreasinq the cost or materiailv decreasina the effectiveness of the er"fort to achieve remediation satisfactorv to ali aaencies havinq jurisdiction, or a reasonable environmentai assessment as appiicable: ~2) the operation or development of the Airport is unreasonable if the interference poses a safetv hazard or a materiai disruption ot the operation or deveiopment of the Airport. For the purposes of this chapter XX.05, the followinq terms are defined as follows: (1) "Contamination" - the unpermit~ed oresence of anv released Hazardous Substance. j2a "Environmental AssessmenY' - an assessment of oroaertv. prepared in a manner consistent with qeneraliv accepted professionai practices, that is supported bv reports and tests that determine the environmental condition of propertv and the presence tVpe concentration. and extent of a Hazardous Substance in on. and under the surface of the propertv. (3) "Environmentai Law' - anv apqlicable federai, state. or locai statute, law, requlation ordinance code permit order, decision, iudqment of anv governmentai entitv relatinq to environmental matters. includinq litterinq and dumpinq. (4) "Hazardous Substance" - anv substance that is defined under an Environmentai Law as hazardo~s waste Hazardous Substance hazardous material toxic pollutant contaminant. petroleum, petroleum product. or oii. 7 (~} °Materialiv Contributed To" - ta cause the release or miqration of a Hazardous Substance in a reportable quantitv as defined under applicable EnvironmPntal Law. (6} °Responsible". ~Nhen used in reqard to environm~ntal contamination means havinq materiailv contributed to. assumed under a~ assianment or beinq otherwise liable for bv law or contract. X~C2a-,05.070 Penaities. Violations of this chapter shall be punished as provided for violations in KMC 13.05.010. (Ords. 263, 531, 697, 874, 1240) Chapter XX.10 LEASING OF AIRPORT RESERVE LANDS Sections: XX.10.010 Lands available for leasinq. XX.10.020 Qualifications of applicants or bidders. XX.10.030 Applications. XX.10.035 Filinq fee and deposit. XX.10.040 No riqht of occupancv; Apqlication expiration. XX.10.Q60 Processinq procedure. XX.10.070 Lease amendment or renewal. XX.10.080 Lenqth of lease term. XX.10.09Q Rental rate determination. XX.10.100 Reimbursement for Citv-constructed improvements XX.10.110 Additionai rent. XX.10.120 Biddinq procedure. XX.10.130 Lease execution. XX.10.010 Lands avaifable for leasina. ta) Subiect ta the provisions of this chapYer, Citv-owned land within the Airoort Reserve mav be leased as pravided in this chapter unless the land is identified in the Iatest Federal Aviation Administratian-approved Airport Lavout Plan for the Airoort or in the latest Airport Land Use Pian as beinq required for the ooeration or safetv of the Airoort or for the construction. preservation. future construction or future expansion of facilities on the Airport, includinq (1) runwavs, runwav safetv areas, taxiwavs, aprons, water lanes water taxiwavs and other aircraft operational areas: 8 ~} access roads Gublic streets. ~arkina iots. ana other racfiities ror use bv motor vehicles: and j3) puolic terminal buildinqs. (b} NotwiYhstandinq (a} of this section. (1 } aoron sqace mav be leased but oniv for aircraft fuelinq. laadinq unloadina parkinq and maneuverinq purooses~ and {2) land required for the future construction or future expansion of airport facilities (A) mav be leased for an interim aeriod nat extendinq bevond the date on which the City Manaqer determines the Iand wiil be repuired far the construction or expansion: but (Bl mav not be leased if the Citv Manaqer determines that qrantinq the lease wouid interfere with. or ieopardize. the safe ooeration of the .~irport. XX~1-.10.020 Qualifications of applicants or bidders. An appiicant or bidder for a lease is qualified if the applicant or bidder. (a) Is an individual at least nineteen (19) years of age-er~ve~;-o~ (b) Is a group, association, or corporation which is authorized to conduct business under the laws of Alaska; or (c) Is acting as an agent for another and has qualified by filing with the City Manager a proper power of attorney or a letter of authorization creating such agency. The agent sha~i represent oniy (1) one principal to the exclusion of himself. The term "agenY' includes real estate brokers and agents. (Ords. 258, 400, 531, 1878-2000) XX~-.10.030 Appiications. (a) All appiications for lease of lands shall be submitted to€ile~-w}t~ the City Manager on forms provided by the City ManaQer. toqether with the non-refundable filinq fee and any applicable deposit required under XX 10 035. . . The Citv Manaqer shail not accept anPJe application that the Manager determines to be incompiete. Upon receipt of a complete application filina fee and anv applicable deposit. the Citv Manaqer shail cause the application to be stamped with the date and time of its receipt. 9 (b) With every application, the applicant shall submit (1) a development plan, showing and stating: (A) The purpose of the proposed lease; (B) The use, val~e-a~-nature. aroposed focation on the premises and estimated cost of improvements to be constructed; (C) The type of construction; (D) The anticipated construction beqinninp and compietion _- datesseas d-# e€~~,'_~ "~-~:~;; and (E) Whether the intended use and proposed develooment conforms ^"~with the ~zoning ordinance of the Citv:aa~ ii comprehensive plan of the City_ (iiil latest Federal Aviation Administration-apqroved Airport Lavout Plan for the Airport: and ivy the latest Airoort Land Use Pian. 21 an explanation of how the applicant intends to finance the construction of the proposed improvements. if the applicant qlans to borrow funds the applicant must include a letter from a bank or other lendinq institution expressinq interest in providinq financinq for the improvements: (3) a business plan. if the applicanT proqoses to operate a business on the praposed premises. The pian must inciude (A) a comprehensive description af the qroqosed business• (B) the number of peopie the applicant exnects to employ in the business durinq its first full vear of aperation; (C1 the number of customers the applicant expects business to serve durinq its first full year of operation: {D) the applicant's source of operatinq capitai. if the applicant Qlans to borrow funds, include a letter from a bank or other lending institution expressinq interest in providinq operatinq caqital: and fE} the aqpiicanYs estimate of the pross receipts of the business durinp its first year of full operation: and (The reason for requiring a business plan is twofold: (1)it gives the City some clue as fo the potential viabilify of the lessee's /ease proposal; and (2J it forces an applicanf to think about his plans more thoroughly before applying. Both (1) &(2) 10 may save the Cify from signing a lease wifh someone who will default after making a mess of the premises.) (41 a site plan. if the land the aopiicant desires to lease is not a piatted lot or fract. The site plan must show the locaiian and dimsnsions of the proposati lease site. but need not be prepared bv an enqineer or survevor. (c) Anytime durinq the qrocessi~q of a Iease application. the Citv Manaqer mav request. and the applicant shall suppiv. anV clarification or additional information that the Citv f~titanaqer reasonably determines is necessarv for the Gitv to make a final decision on the aopiicatian. A~Ii^^~~;a;,~;al~esea}e-a-~ar~-af-Y~e-lease- (There mav be etements of the applicanYs proposa/ that the Citv does not authorize rn the lease. (n such a case. havinq an ordinance that makes fhe app(ication "a part of the lease' cou/d create confusion or conflict in the lease, to the Citv's detriment in litiqation. l XX~-.10.035 Filing fee and deposit. (a) When submittinq an aRRlication for lease of land, the applicant shall 1 a a~4 filing fee in the amount of fiftykw~~ dollars (S50.00~~8:88)~~-s#~aA (l doubt if $20 even recovers the City's cost of setting up a file for fhe application. The state has been charging a$50 application fee for about four years and is currently in the process of raising it to $100. 1 recommend the City's filing fee be increased to at least $50.00.) I { (lmake a deposit to show good faith and secure the City in payment of any costs in the foilowing amounts: (A) An appraisal cost recoverv deposit of le~.. 0.~7 t+..n ~.I~n~+rJv hann e~~ ~hrJi~drinrl 4hn n ~n4 nf Vhe~ rde~nn '4 ~ar'il hn~0 thousand dollars ($2,000.00)~, and.- (These redraf~ed deposit provisions will work under the existing platting / appraisai system, as well as under the platting exemption / airport-wide appraisal system proposed by the DOWL team. 11 de41a~~{~~888-89~. Under the DOWL recommendation, there woutd not be individual lot appraisals for which the City could seek rermbursement. Therefore, the City would need to esfa6lish a reasonable portion of the airport-wide appraisal costs to allocate to a new lease. A fixed allocation based on the square footage of the land being leased would be a fair mefhod. Alfhough fhere would be no platting costs involved under the DOWL recommendation, the Cify would have some engineering expense in = preparing a mefes & bounds description and / or a/ease exhibff drawing.) jbafs-} If the City decides to reiect the appiicanPs apqlication and not;vf;,~~~ «enter into a lease with the applicant through no fault of the applicant or failure of the appficant to comply with any requirement ot this chapter ~ deposit made under (a} of this section .035 will be eeturned to the applicant. ~ if the Citv enters into a lease with the applicant cerr~pi~n:+h ~u f+h t~ .. . ... ..y..,.., , a~deposit made bv the appiicant under (ai of this section .d35 wiil be appiied to the City's ses~s-s#-enaineerinq~s~r-~e~ appraisal, Ieqai, and administrative costs^^~~ ~~'~+°~' ~°~~'^~~ related to the processinq of the applicanYs aoplication and enterinq into the lease. ~i~kt-a~yThe Citv will appiv anv unused balance of a~~ deposit-a{~Ne~# to the rent pavable under the lease. If the Citv's costs exceed the amount of anv deposit, aad-as~y-sk~a~tage-~illec-I-te-the applicant shall pav the shortaqe to the Citv as a condition of the lease. (The real fesf for the above provision is fhat the City and the applicant execufe a lease. / assume the City would not grant a lease to an applicant who failed to comply with applicable law or a Planning Commission direcfive, so there's no need to reference those otherissues.) jd)_If the applicant failsre#~ses to comply with any requirements of this chaqter,t#~e causes inordinate delay, as determined bv the Citv Manaqer, or a#~ew~+se-refuses to sign a lease ofFered to the appiicant~°^~ ~~° ^'~^°^ }^ «ti~ n~nnr+hv +ti~~ the Citv Manaaer will reiect the aopiicanYs application and appiv anv deposit made bY the applicant under (a) of this section to the Citv's administrative, appraisai, enqineerinq and leqal costs incurred in connection with the applicanYs application. The Citv wiil retum anv unused deposit balance-~e ~.+~.+nn.-. fhor~+.+f 'f .~ v ohall he~ ro1~ ~.,~~ to the appiicant. ., , ~^„ ,,..M.. .... ....,. (Ords. 689, 1290-88, 1802-98) XX~.10.040 No riqht of occupancv: ' Apqlication expiration. 12 (a} Submittina -T-he-F+I++~g-s€ an application for a lease doesshal~ not give the applicant a+~e right to lease or to-N~~use o-t-the land requested in tne application#~ (b) If the Citv does not reiect the application, an~e application shail expire on the earlier of the foilowinq j1) one-hundred-eiqhtv (1801 davs after the date stamped on the a iication under XX.10.030 a ~Qac If •• ~ w~~ F~~~ .. 4 h ~ r~nf~~nrl ;n#n tio+,.,oo., the City and the applicant have not, by that time, entered into a lease: or. ~~~~^ ~^+^~ ^-^ ^, ~• + ~{~-~- (2) the deadline date established under XX.10.130. includinq anv extension of time qranted thereunder: (The above changes make it clear, in one subsection, that the applicafion will expire before the 980-day period ends if the City has issued a lease and the applicant faits to sign and retum if. In the existing KMC, fhis is inferred, but not made unmistakably clear, by a combined reading of 21.10.040 and 21.10.140.) XX~.10.060 Appiication R~rocessing procedure. (Given the facfs that: 1. Title XX wiil only apply to Airport Reserve lands; 2. Reserve lands will never be sold; and 3. Reserve lands will only be leased for aviation and airport-related purposes in accordance with the airport land use plan, and certain limifed interim uses; there is no reason why all applications should have to be run through a P& Z Commission review process. The long-term function of Airport Reserve /ands wi1! be to support aviation and the airport, yet the P& Z brings no aviation or airport expertise to the leasing process. About the only thing the exisfing system of P& Z review would do forAirport Reserve lease applications is delay fheirprocessing. As an alfemative to the exisfing P& Z review system, 1 ~ecommend fhe City use a completely different application processing procedure, structured around fhe City Manager, the Cify's administrative staff, and the Airport Commission. Here is an oufline of the application process 1 recommend: 1. Initial Apptication Review bv: (a} Assistant to the City Manaqer (for application compieteness; conformance with Titie XX); 13 (b) Airport Manaqer (far conformance with the Airpon ~avout Plan FAA requlations. AIP ctrant assurances and airport operations~ ard (c{ Planninq & Zoninq Administrator (Ms Kebscnuii's oosition) tfor conformance with the Airqort Land Use Plan municipal zoninq and future airport improvement proiects). 2. The above staff would present to the Citv Manaper their ioint recommendation for ~tion on the appiication f Reiection Approvai or Approvai of a staff alternative) 3, if the Citv Manaqer concurs with the staff recommendation the Manaaer will• (a) issue a reiection letter statinq the reasons for reiection~ or (b) refer the application to the AirqorY Commission for review and comment toqether with the Manaqer`s recomme~dation for Aqprovai or Aqproval of the staff alternative: and (c) Inform the Citv Councii of the Manaqers recommendation to the Airoort Commission. 4. The Citv Manaaer will consider the recommendations of the A~rport Commission and (a) Issue a reiection letter, statinq the reasons for rejection• or {b) Approve the application or staff aiternative and direct the staff to issue the lease: and ~c) Inform the Citv Council of the Manaqer's decision to aoprove or reiect the appiication; or (d} Obtain the Citv CounciPs concurrence if the Manager's decision ta approve or relect the appiication is co~trarv to the recommendations of the Airport Commission. 5. An applicant whose aoplication is reiected bv the Citv Manaaer mav appeal to the Citv Cauncii within ten (10) davs followinq the date on which the Manaqer's reiection letter was hand delivered or placed in the U.S. mail. 6. If another comolete and otherwise approvable aoplication for lease of the same propertv is submitted bv a different applicant before the Citv Manager enters into a lease with the first apqlicant, the Ciiv Manaqer will forward the applications and the Manaper's recommendations to the Citv Council for approval of the appiication anticiqated to best serve the interests of the Citv. The Council mav approve one of the appiications or direct the Citv Manaqer to award a Iease of the prapertv bv sealed bid 14 7. Grounds for the Citv Manaaer to reiect an a~plication indude. (A} the apqiicant's faii~re to provide anv clarir`ication or iniormation required under this chapter: tB) the applicanYs proposed develoRment or use of the land is inconsistent with (ii the zonina ordinance of the Cit~ (iil the comprehensive plan of the Citv' jiii) the latest Federal Aviation Administratian-approved Airport Lavout Plan for the Airport; (iv) any obliqation of the Citv under the Airport Soonsor Grant Assurances to the Federal Aviation Administration: (vt the iatest Airoort Land Use Pian: or (vi1 a requlation of the Federai Aviation Administration aqpiicable to the Airpo~t. (Cl the aoplicanYs proposed development or use of the land would violate a federat. state or local Iaw, includinq an ordinance or regulation of the Citv: Dl the aoolicanYs failure to reasana6ly demonstrate the financial viabilitv of the applicant's proposed develooment or of the busi~ess the applicant proposes to o~erate; f~ the applicant is in default of any charqes. fees, rents. taxes. or other sums due and pavabie to the Citv; Fl the aaolicant is in default of a requirement of anv lease or contract with the Citv: (G) the appiication is reiected bv the Citv Council in favor of another application for the same land under paraaraph #6 above; and (H1 the Citv Council decides, under #6 abov_e, to reiect all apQlications and award a lease of the land bv sealed bid. (Consultant's Note: The procedures ouflined a6ove would seldom require the City Council's involvement in application approval / rejection decisions. Applications for land inside the Airport Reserve would have to conform to fhe Airport Layout Plan, Airport Land Use Plan, FAA regulations, AIP grant assurance requirements, and other relatively narrow airport-related requirements. Therefore, a City Manager's decision, backed with a review by the administrative staff and the Airport Commission should be su~cient for the vast majority of applications. There is no real need fo require the Council's approva! of every 15 lease application when the app/icable arrport requirements will determrne the outcome for most of them.) ~ XX.10.d70 Lease Amendment or Renewat. (Applications from existing tenants for lease amendments, term extensions, and renewals would be run through fhe same process outlined rn (1) through (6) above.) ~X.10.~80 Lenqth of Lease Term. (Note: The fol%wing secfion is based on the lease term guideline recommendations (dated August 4, 2005J i presenfed at a City Council /Airport Commission work session in August 2005.) {a) The lenqth of term for a lease or lease extension qranted for land within the Airport Reserve will be based on the amaunt of invesiment the applicant prauoses to make in the construction of new permanent improvements on the premises durinq the first 24 months followinq the beqinninq date of the iease or lease extension. (b) If the apqlicant qroposes ta make no investment in new qermanent improvements on the premises or proqoses to invest less than a~12,000. 4he maximum term of a new lease or a renewal of an expirinq lease shall be five (5) vears. (Provision (b) above reasonably accommodates non-investor or minimal-investo~ applicants.) (c) If the appiicant praposes to invest S12 000 or more in new permanent imorovements on the premises, t1) the maximum term of a new lease or a renewai of an exqirinq lease shali be determined accordinq to the foilowina table: ApplicanYs Investment (in U.S. Dollars) Maximum is at Least Term of Years 12.000 6 24 000 7 36 000 g 4$ 000 g 60 000 10 72 000 11 108 000 14 16 120,OOQ 15 132 OQO 16 144, 000 17 156.0~0 18 168.000 19 180.000 20 192.000 21 204 000 22 216.000 23 228.000 24 240.000 25 252.000 26 264 000 27 276.OOQ 28 288.000 29 300.000 30 312.000 31 324.000 32 336.000 33 348.000 34 360 000 35 (2) the maximum term extension for an existinq lease shall be o~e (1) vear far each $12 000 of additional investment, provided that ;A) anv resuitinp fraction of a vear shali be rounded up to the nearest one- Quarter ('/<) vear, and {B) the totai of the remaininq lease term and the extension shall not exceed 35 vears. (Note the definitions of °existing lease" and "expiring lease"in subsection (i) below. The distinction between (c)(9) &(c)(2) above is necessary because the term table begins at 6 years (giving 5"free"years to lessees who make substantial investments, just as is provided to non-investor /essees under (b) above). lf the table was used for granting mid-term lease extensions, the lessee would gain 5 `Yree" years wifh every extension and creafe a disunity among lessees who make the same total investment. For example, compare fhe results of applying the table to fwo applicants who invest the same fotal amount of money, but at different times. Lessee X invesfs $300,000 in improvements at the beginning of his /ease and is granted a totat /ease term of 30 years, according fo the table. 17 Lessee Y makes an initial investment oi $100,000 at the beginning of his lease and is granted a term of 13 years (from the table). Six years /ater, "Y" invests anofher $100,000 and obtains an extension (from the table} of 13 more years. Three years after that, "Y" invests another $10Q000 and obtains a further extension (from the table) of 13 years. `X" and "Y" both invested a total of $30Q, 000, but "Y" obtained a tota! term of 39 years, while "X" received only 30 years. This problem is avoided by (c)(1) &(c)(2), above, under which the Cify would __ granf an initial lease term fo `?C" under (cJ(1) (from the table, $300, 000 = 30 years). For "Y", fhe Cify would grant A. an inrtial term under (c)(1) (from the table, $100,000 = 13 yearsJ; and 8. the two term extensions under (c)(2) at one year per $12,000 (fwo investments of $900,000 each: $100,000 = 92,OQ0 = 8.34 years, rounded up to 8.5 years; 8.5 years x 2= 9 7 years}; fhus C. resulting in a total term of 30 years. In the above example, "X" and "Y°' ended up with identical term totals. However, the combined affects of the rounding required by (c)(2)(A) and the various ways $200, 000 could be divided into different investments for fhe two extensions, the total term granted to "Y" could be slightly more or less than the 30-year tofal granfed to `~C" Nevertheless, the equivalency of (c)(1) &(c)(2) is su~cient fo satisfy fhe A/P grant assurance requirements for reasonable uniformity.J (d) In the lease or fease exYension qranted to the apq6cant, the City Manaqer will include a provision reauirinq the applicant to complete the praposed permanent improvements within a reasonable period of time. considerinq the cost and nature of the improvements. Provided however, that the time aifowed shaii not exceed 24 months after the effective date of the lease or lease extension. {e} The Citv Manaqer will include a provision in a lease or lease extension requirinq the lessee to provide a aerformance bond, deposit, personal quarantee or other securitv if ths Manaqer determines securitv is necessarv or qrudent to ensure the applicant's compietion of the permanent improvements within the time oeriod set under (d) of this section. The Citv Manaqer wili determine the form and amount of the securitv accordina to the best interest of the Citv, considerinq the nature and scooe of the qroposed improvements and the financial responsibilitv of the applicant. (f) The aqplicant shall, within 30 davs after completion of the Qermanent improvements. submit to the Citv Manaqer written documentation that the imorovements have been completed as required under (d) of this section. 18 C71 " ` ~ ~ _ R ih2 flppllCaRt ShOtNS QOOd C3USE [0 th8 C,I:V HI10CI81'. a 1d Th_2. _: al1aQ@C C12I@f1711f12S :ne action is not inconsistent ~viih the Citys oest inierest, the i~lanaoer v~~iii arant an excension that is sufficient to ailow for the comoietion of the nermanent imorovements or ~or submission or dncume~tation tnat the permanent imorovements have been comaieted under this section. No extension or combination or extensions aranted under fhis subsection (a) will exceed 12 months. ih) if. ~n~ithin the time reauired under (d) or this section, inciudina anv extension aranted under iq) of this section. the applicant faiis to compiete the repuired oermanent improvements. the CitY Manaqer will (11 execute the forfeiture of the oerformance bond. deposit personal auarantee. or other securitv posted bv the aqqlicant under (e) of this section to the extent necessarv to reimburse the City for all casts and damaqes. indudina administrative and ieqal costs. arisinq from the aoplicanYs failure to comalete the reouired improvements, and ~2) take one ot the followina actions. us aopiicable. (A) if the Manaaer determines that one-third or less of the required investment in improvements has besn compieted. initiate canceliation of the lease: (B} if the Manaqer determines that at least two-thirds of the reauired investme~t in improvements has been comoleted. reduce the term of the lease to a period under (b) or (c) of this section that is consistent with the portion of the improvements timely comqieted: U if the Manaqer determines that more than one-third but less than two- thirds of the required investment in improvements has been completed. appfV the best interests of the Citv ta take the action describeti in either fA) or (B} of this subsection. (i) When used in this section. the followinq terms shall have the meaninqs qiven: (1) "expirinq lease°, means a lease with fess than one (11 vear of term remaininq; (2) "existinq lease' means a lease with at least ane (1) year of term remaininq• (3) "permanent improvemenY', a fixed addition or chanpe to Iand that is not temporarv or portable: (A) "permanent improvemenY' includes ji) a buildinq building addition, retaininq wali. storaqe tank. earthwork fiit material, qravel, and pavement: and 19 ~ (ii) remediation or cont~mination for wnich the applicani is noC responsible: (B) "permanent improvement° exciudes items of ordinarv maintenance. such as qlass repiacement paintina roof repairs door I`eDairs plumbinq repairs floor coverinq replacement or pavement oatchinq. XX 10 090 Rental rate determination. (a) Beqinninq in 2006 and at intervals of approximatelv five (5) vears thereafter the Citv Manaaer shail retain the services of an indeoendent. qualified peneral real estate anoraiser certified under Rlaska StaYute 08.87, to determine (1) the fair market vaiue of all the land within the Airport Reserve that is under lease or available for Iease: and (2) the contemporarV capitafization rate. in terms of a percentaqe, tvpicaiiy appiied to fair market value ta establish the rental rate for land leased bV Iandiords in the Kenai Peninsula Borouqh real estate market. (b) Durinq the first 12 months followinq the date on which the Citv Manaqer accepts the determinations made under (a) of this section. the Manaqer shaii establish the rentai amounts for leases as follows: (1 } for each new lease qranted bv the Citv under this chapter, the rental shail be the fair market value of the premises multiplied bv the capitalization rate, both as determined under (a) of this section: and (2) for each existinq lease that becames subiect to a rent re-evaluation under the provisions of the lease the rental shall be the fair market value of the premises, as determined under (al of this section. multiplied bv (A) the capifafization rate determined under (a) of this section, if the iease does not include a fixed capitalization rate: or (B) the fixed caoitalization rate specified in the lease. (c) At the beqinnina of the second, third. fourth and fifth 12-month period followinq the date on which the Citv Manaqer accepts the determinations made under (a) of this section the Manaaer shall adiust the fair market value of ali the land within the Airport Reserve that is under lease or availabie for lease. j1 } The Manaqer shall make the adiustment bv appivinq the Anchoraqe Consumer Price Index for the previous calendar vear: 20 (21 The result af the adiustment shail be considered the appraised Pair market vaiue or each propertv durina the resoective 12-month oeriod for which the adiustment is made: and (3} If the State of Alaska substanti~ilv alters the manner in which the State calculates the Anchoraqe Consumer Price Index. or ceases to annuailv provide the Anchoraae Consumer Price Index, the City Manaqer mav with the concurrence bv resolution of the Citv Council, use a reasonablv simiiar = alternative index to make the adiustments required under this subsection (c). (dt Qurinq each of the second. third, fourth, and fifth 12-month periods followinp the date on which the Citv Manaqer accepts the determinations made under (a1 of this section. the Manaper shail establish the rental amounts for leases in the same manner as provided in (b) of this section. exceot that the Manaqer shail apply the fair market value as adiusted under (c) of this section e) Under this section. wnen determininq the_r_air market_yaiue of the oremises of an existinq lease. an aopraiser shali aopraise the propertv (11 in its condition as af the inception of the lease: f 21 qlus anv improvements or amenities subsequentiv provided bv the Citv' but (3) excludinq anv improvements or amenities provided bv the Citv under XX.10.100. if lessee has reimbursed the Citv. or entered into an aqreement to reimburse the Citv, for the cost of the improvements or amenities. (The intent of (e)(3) above is to exclude from the scope of an appraisal improvements that are constructed by the Cify and paid for by the lessee. Regard/ess of whether improvements are built by the City or the lessee, if the lessee pays for them, they are not part of fhe premises the Cify leased fo the lessee and, therefore, a~e ordinarily excluded from tfie appraisal.) XX.10.100 Reimbursement for Citv-constructed imqrovements. (a) The Citv Manaqer maV include in a lease a requirement for the lessee to reimburse the Citv for the Citv's cost of j1~ land clearinq, gravel fill, utiliiy extensions and other improvements or amenities on or in direct connection with the premises. constructed bv the Citv prior to the effective date of the lease: or 21 {2) land clearina. qravel fill. utiiitv exiensions and other +merovemenis or amenities on or in direct connection witn the premises. ~vnicn the Citv aqrees to construct as a condition of the lease. subiect to Citv Councif aoproval. (b~ The ~essee shall reimburse the Citv for the Citv's cost ef constructinq the improvements in ten {10} equal annuai paVments, plus interest at ei4ht percent {8%) per year on the unpaid baiance. The Lessee maV paV the entire remaininq balance to the Citv at anv time. L XX.10.110 Additionai rent. ~) In addition to rent established u~der XX.10.~9~ and anv reimbursement for Citv- constructed imorovements or ame~ities under XX.10.1 dd. a Iessee shall paV (1) taxes pertaininq to the leasehold interest of the lessee: (2~ interest at the rate of eiqht oercent (8%) per ar,num for all past due rents. charqes. and fees; j3) an administrative penalty of ten percent (10%} of the amount due and unqaid each time the lessee fails to timelv pav anv rent or fee when due; and j4) sales taxes due on pavments under a lease. {bl Anv rent. charqe, fee or other consideration which is due and unpaid at the expiration termination, or canceliation of a tease will be a lien aqainst the lessee's propertv. real or personal. c) The lessee will pav all reasonable actual exRenses. costs. and attornev fees the Cit mav incur with or withouT formal action. to enforce. defend. or protect the lease or Citv's riqhts under the lease includinq anv expense incurred with resoect to environmentai compliance. bankruptcv or anv proceedinq that invoives the lessee. the lease, the premises or improvements or personal qropertv on the premises. The lessee will make oavment within 30 davs of the date of each notice from CiN of anv amounts pavable under this subsection (c ~d) A lessee shail paY the Citv a reasonable fee for anv st~ecial services ar facilitiss, which the Citv is not otherwise obliqated under the lease to provide and which the lessee reauests from the Citv in writinq and the City provides. XX.10.120 Biddinq procedure. , With the aoprovai of the City Council, the Citv Manaqer may designate a specific lot or lots. which are not subiect to a pending 22 "aplication. to be ieased rnade-avalla~le-er~i~-~o~throuan com~etitive sealed bid. T-~}s ~Fev+si e-0uES~ar~~+ag !^~~;-~-~~^,^}n«Q, In a sealed bid offerina, the City Manaaer shall award the i~ase s-to the auaiified bidder that offers the hiqhest~R^" "^ ~^^^`,^~' ^~^~ ^^ ^ one-time premium ~ayment. in addition to the lease rent estabiished under this chaotec cc;^~;;,,,", ~+~n~a ~ate: H+a#es#-b+~Provided however, that hiqn bidder and the bidders lease proposal shail be subject to all provisions of lease aoolication review and approval under this Cha te(.~u r~.hi'ohnrl fnr ..i! .-~}hrnr I~-. o~+nni'n~+t'nnc _ (The part of the existing 21.10.130 are covered in XX.10.090, but most of the existing 130 seems either unnecessary or very much outdated, so ! didn't bring it ac~oss to Tite XX.) XX.10.130 Lease execution. When issuinq a lease to an applicant. the City Manaqer shall hand deiiver or mail the document to the applicant. The leas~applicant shall have thirtv (30) davs rrom the date on which the lease is hand delivered to the aopiicant or deposited in the U.S. mail within which to execute and return the apryrepraaEe-lease a~ee+~e~t-av+~# to the City Manaaer. nnrnr~mnn# ~o~+.~ll hr~ nronnrnr~ 'n nnnnrrlnnnn w'4L~ IF~ nn# nf Mh' f'tl e-re~u+r-e~.,, <<~-t„-n-,.~,~,~- If the applicant shows qood cause to the Citv Manaqer, and the Manaaer determines the action is not inconsistent with the Citv's best interest. the Manaqer wiii qrant an extension not exceedinq thirtv (30) davs for the appiicant to execute and return the lease. Upon the failureF-aflafe of the appiicant to timeiv execute and return the lease agreement. the Citv Manaqer shall withdraw the offer af the lease in writinq.~e r'f'~.~i nnril+r~i ch-~II rr~c~ Ih 'n 4h~ Frsrfn'+, r.~f nll Ir~ .~{~} Chapter XX.15 FORM AND CONDITIONS OF LEASE XX.15.010 Form of lease. XX.15.015 Re-evaluation of rent. XX.15.020 Assiqnments and subleases. XX.15.030 Canstruction of imorovements bv a lessee XX.15.040 Indemnification and insurance. XX.15.050 Lease termination. XX.15.060 Damaqe to lessee improvements. XX.15.070 Disposition of improvements upon termination. NOTE: l recommend against placing a(l the lease provisions in fhe KMC. Irt general, having /ease provisions explicitly presented in law, ordinance, or regulation tends to "fossilize" /ease language and retard the incorporafion airport leasing industry innovations. lt atso tends to burden the negotiation of unusua! /eases with fnflexibilify. A better alternafive is to present only the essentia! issues ofleasing policy in the 23 ordinance along with a provision requrring leases to be issued on a form approved by the City Attorney and adopted by City Council resolution. The followrng is my recommended alternative to the existing Chapters 2i.15 and 29.20, as applied to the Airport Reserve. XX.15.010 Form of lease. (a) Whe~ leasinq land under this Title XX, the CitY Manaqer shail use a standard lease form that is {1) drafted to (A) provide a reasonable basis Tor the lessee's use of ths premises; (B} foster the safe. effective, and efficient operation of the Airport: (C1 conform with the applicable requirements of the KMC. inciudinq this Title XX Alaska statutes. Federal Aviation Administration requlations, and other aqplicabie federal law: and (D) provide for the best interest of the CitV. (21 approved as to form bv the City Attornev; and (31 adopted bv resolution of the Citv Council. b) The Citv Manaqer may enter into a land lease that deviates from the standard form adopted under (a) of this section, if (1) the Manaqer believes the action is in the best interest of the CifV: t21 the Iease is approved as to form bv the Citv Attornev; and (3) the lease is approved bv resolution of the Citv Councii. XX.15.015 Re-evaluation of rent. fa) At intervals of not less than five (5} vears. or at such other time as mav be specified in a lease executed befare the effective date of the enactment of this section. the Citv Manaqer shall increase or decrease the rent charqed in the lease to the amount determined under XX.10.090. (b) The Citv Manaqer shalf chanqe the rent in a lease bv qivinq the lessee written notice at least thirtv (30) davs in advance of the effective date of the chanqe. 24 icl A lessee wno believes the rent resu(tina rrom a chanae bv the Citv Manaaer exceeds market rent mav aqqeai to the Citv Council bv heliverinq a written notice of rent apneal to the Citv Cierk ov no Iater than the effective date of the rent chanae. ", rent ,~peal musf include __ (1) the name, mailinq address. and teieohone number of the lessee~ _ (21 a coqv of the City Manaqers rent chanqe notice: _ (31 a summarv of the lessee's basis for a~pealinq the rent inciudina anv facts or evidence in support of the lessee's position that the chanqed rent exceeds market rent: and (4) if the lessee intends to present an appraisal in support of the apqeal the date by which the appraisal report will be made avaiiable for the Citv Council to consider not to exceed ninetv (90} davs after the date an which the appeai is delivered to the Citv Cierk. Failure bv the lessee to submit the aopraisai reoort by the stated date will void the aqpeal. (d) The Citv Council wiii consider the lessee s appeai and the basis for the Citv Manaqer s rent chanqe; and (1) If the Councii finds aqeinst the lessee. the lessee shall beqin oavinq the rent established bv the Citv Manaqer, as of the effective date af the Manaqer's oriqinal rent chanqe notice: or (2} If the Councii finds in favor of the lessee, the Citv Manaqer shail issue a wntten notice ta the lessee, rescindinq the oriqinai rent chanqe notice and establishinq the rentai rate at the amount determined bv the Councii. The effective date of the revised rent shalt be the effective date of the Manaqer's oriqinal rent chanqe notice. (e) For the purpose of this section XX.15.015, "market renY' means the fair market value of a lease premises multiqlied bY the appropriate capitalization rate as qrovided under XX.10.090. XX.15.020 Assiqnments and subieases. (Repardina securitv assiqnments: As indicafed irr the DOWL Phase I( project report, the exisfing KMC 21. 95.100 provides some unusually beneficial righfs to mortgagees, which a~e not necessary and could compromise the best interests of the City. With respect to mortgagees, 21.15.100 does not require the City's written consent to a security assignment or deed of trust (only notice by the tessee to the City). !t is the norm in the airport industry fo require airport consent for this kind of transaction because the process allows the airport operator to 25 know, in detail, the terms of any financial encumbrance on an airport lease before it is set in place. Requiring prror consent afso atlows an airport operator to prevent a lessee from accepting security provisions that may be adverse to the airport operator's interests. 1 strongly recommend the Cify make consent mandatory for all security assignments. Also, with respect to mortgagees, the existing code al/ows a mortgagee to come in after the City cancels a lease for breach and obtain a new lease of its own. The mortgagee can choose fo save the existing lease or take out a new one with = the City. The more common pracfice in the airport indusfry is to allow a morfgagee the opportunify to cure fhe lessee's breach (if the lessee doesn't) and preserve the original lease. If the mortgagee chooses not to do so, the lease ends and the mortgagee loses its security interest. This is beneficial to the airport operator because it keeps the interests of the morfgagee more parallel to those of the airport operator, and results in fewer cases where the airport operator gets stuck wifh the problems in a lessee bankruptcy. This requirement also allows a defaulted lease to be cleanly ended by the airport ope~ator, if nerther the /essee or the morfgagee timely cure fhe breach. The operator can then promptly proceed with actiorrs in its own interest. The State of Alaska has followed this common indusfry practice for at least 25 years wifhout hindering the financing of leasehold developments. At fhe same time, the practice saved the State f~om substanfial financial loses in tenant bankruptcies. Re4ardina subleases: The exisfing code assures a subtenant that the Cify will accept them as a lessee (to the extent of the sub/ease) if the Cify cancels the lessee's lease. I've not seen a similar provision in any other airport operator's ordinances or regulations. !t opens the door to all kinds of problems. It presupposes that every sublessee is financially viabie. The failure of a sublessee to perform under the sublease may have contributed to fhe lessee's breach of fhe lease, but the City would stili have to take the sublessee on as its own tenant. Whaf if a sma// avionics business subleased a single room of the lessee's large hangar and fhe City cancelled the lease? The existing code would appear to require fhe City to recognize the sublease as its own and retain the sub/essee in his one-room space, with the Cify having to heat and maintain the rest of the building solely for the benefif of fhe sublessee. The mere presence of the sublessee coutd hinder the City from leasing fhe property to a quali~ed applicant who wanfs fo use all the space on the premises. The industry norm is for sub/eases to automatically end if a lease is terminated. That way, the airport operator is free to negotiate a new /ease with any qualifred applicant, including a former sublessee. For fhe above reasons, I didn't bring KMC 21.15.100 or 21.20. 950 info Tifle XX.) 26 {~ j A lessee mav not. bv arant or im~iicatian. without the orior written consent of the Citv Manaaer. (11 assiqn all or anv ~ortion of the lease: (2) assiqn or convev anv mortqaqe or securitv interest in the lease: or (3) subiease ail or anv qortion of the oremises or improvements on the premises (b) For the purpose of this section, anv sinale or cumulative transfer of more than a 50% interest in a ioint venture. partnership. limited liabilitv companv, corporation or other multi-party entitv which is a lessee constitutes an assiqnment of lease interest tnat is subiect to the consent of the Citv under this section. (c) Anv proposed assiqnment. securitv assiqnment. or subiease must be written and must be submitted to the Citv Manaqer bearin4 the oriainal, notarized sianatures of ali parties. ,~ lessee maV submit unsiqned draft documents for the Citv Manaqer's conceptuai review. Nowever, the CitV Manaqer s conceptual aqproval of a draft document mav not be construed as the Citv's consent to anv assiqnment, securitv assianment. or sublease. (d) An assiqnment of a fease must include a provision statinq that the assipnee accepts r~onsibilitv for ail of the assiqnor s(lessee sl obliaations under the lease includinq environmental liabilitv and responsibilitv. However, unless the Citv sqecificatlv releases the lessee in writinq, the Citv mav hold the lessee responsible for perForminq any obiiqation under the iease which an assiqnee fails to perform. (e) An assianee or sublessee mav not occuov the premises before the Cifv Manaper consents to the assiqnment or sublease in writinq. (f) In the event of a conflict between the lease and an assianment securifv assipnment or subiease, the terms of the lease wiii controf. (q) The Citv Manaaer's consent to anv subiease does not relieve or otherwise alter the lessee's obiiqations under the lease. (h) No security assiqnment. inciudinq anv related document. mav encumber the Citv's underlvinq titie to the land. A securitv assiqnment to whicn the Citv Manaqer consents shall be valid oniv untii the lease expires or is terminated for breach provided that the noider of such a securitv assiqnment mav act to cure any breach. The Citv Manaaer shail not consent to a security assipnment that obliqates the Citv to qrant a new lease to the hotder of the securitv assiqnment after the Citv has terminated the oriqinal lease. (i) Reqardless of anv term stated in a sublease, the term of a subiease will end at the ~iration or earlier termination of the lease, unless the Citv extends or renews the 27 lease term or reinstates tne lease atter canceilation. A sublessee desirinp to remain on the aremises after the cancellation expiration. ar termination or the Iease must aoolv for. and execute. a new lease from the CitV. (j) Before consentinq, or denyinq consent, to an assiqnment. securitv assiqnment. or sublease, the City ManaQer will consider (1) the best interests of the Citv: (2} in the casa of an assiqnment or securitv assiqnment, the pualifications and financial capabilitv of the assignee ta perform the reouirements of the lease: (3) the compatibilitv of the proposed use of the oremises by an assipnee ar subiessee with the uses authorized in the lease; and t4) anv recommendations resu(tinq from a review of the assipnment. securitv assianment. or sublease documents bv the Citv Attorney. ~k) The Citv Maneqer shall not unreasonabiv withhold consent to an assipnment security assiqnment or subiease. ~1) A denial of consent to an assiqnment, securitv assiqnment, or sublease must be in writing and state the reasons for the action. A lessee whose request for consent is denied bv the Citv Manaqer mav appeai to the City Council bv submittinq a written atapeal to the Citv Clerk within thirtv (30) davs foliowinq the date of the Managers written deniai. ~) For the purpases of this section, "securitv assiqnmenC' means an assiqnment for securitv deed of trust mortgaqe, or other document that qrants to a creditor an interest in a lease as collateral to assure pavment or performance of a debt, loan. or other oblipatian of the lessee. XX.15.~30 Construction of improvements bv a lessee. (a) A~v buildina construction bv a lessee must be compatible with its surroundinqs and consistent with the uses authorized under the Lease, as determined bv the City Manager. b) A lessee must obtain the City Manaper's written approval before placinq fili materiai beqinninq anV land development, or constructinq or demolishinq anV improvements on the leased premises and before beqinninq anv aiterations, modifications. or renovation of existinq structures on the premises. When submittinq a request for the Citv Mana4er's approval, a lessee must provide the Manaqer with 28 (1) detailed drawinas or the proposed cieveioomen~. alteranon. moaiticsiion or renovation: {2) evidence that the prooosed deveiopment, aiteration. modification. or renavation will contorm to the reauirements of the KMC related to the Airoort zoninq, and building construction standards: (31 evidence af the lessee s comnliance with Federai Aviation Administration requlation 14 CFR Part 77, if applicable to the proposed deveiopment, alteration. modification or renovation: and (Part 77 deals with airspace clearances and obstructions. The "evidence" is usualiy a Form 7460-1 beanng the approval of Alaska Region FAA.) ~4) any other information the CitV Manaqer reasonablv reauires. (c) The Citv Manaqer's aqproval or denial of a lessee's request under this section must be in writina. A deniai must state the reasons for the action. A lessee whose request for aoproval is denied bV the City Manaqer maV appeat to the Citv Council bv submittina a written appeal to the CitV Cierk within thirtv {30} daVS followina the date of the Manaqer's written denial. XX.15.040 Indemnification and insurance. (a) All land leases shall incfude a provision reauirinq the lessee to indemnifv the Citv from claims related to the lease and the lessee. ~b} Except as provided in (c} of this section. all land leases shall reQUire the lessee to provide insurance coveraqe of the followinq tvpes and minimum coverage limits. If a lessee's poiicy contains hiqher limits, the Citv will be entitled to coveraae ta the extent of the hiqher limits. (1) Commerciai General Liabilitv, includinq premises. all operations. propertv damaqe, personai iniurv and death, broad-form contractuai. with a per- occurrence limit oP not tess than ~1.000,000 combined sinqle limit. If the iease authorizes the lessee to enqaqe in the sale or the commercial dispensinq or storaqe of aviation fuel, the policv must include an endorsement under which the insurer extends coveraqe to the lessee's fuei handling activities. The policv must name the Citv as an additional insured. f2) Commercia( Automobile Coveraqe with not iess than ~1.000.000 combined sinqie limit per occurrence. This insurance must cover all owned, hired and non- owned motor vehicles the lessee uses on the Airport. 29 statutorv obliqations. The policv must waive subroqation aqainst the Citv. (4) Products and Completed Operations Liabilitv Insurance. If the lease authorizes the lessee to enqaqe in the sale or the commercial dispensinq or storaqe of aviation fuel, the lessee shali provide Products and Compieted Ooerations ~iability insurance in at least the foilowinq coverape Iimits: (The insurance requiremenfs above are used by the State for rural airport tand leases and a~e similar to fhose of other airport operafors interviewed during my airport comparison research under the DOWL Phase ll project.) (c) The Citv Manaqer mav with the counsel of the Citv Attornev waive or reduce the insurance requirements under (b) of this section for a lease qranted for strictiv non- commercial, individual use purpases. ~d) The lessee wili provide the Citv with proof of insurance coveraae in the form of an insurance qolicv or a certificate of insurance, toqether with proof that the premiums have been paid, showinq the tvpes and manetary limits of coveraae secured. All insurance required bv this section must provide that the Citv be notified at least 30 davs prior ta anv termination, cancellation, or material chanqe in the insurance coverape. e) A lease shall include a provision allowinq the City at intervals of not less than five (5) vears from the beqinninq date of the term of the lease and upon written notice to lessee, revise the insurance requirements required under the Lease. The determination to revise the insurance requirements wiil be made bv the City Manaqer with the counsei of the Citv Attorney a~d shail be based on the risks relative to the Iessee's ooerations. anv insurance guidelines adopted bv the Citv, and anv chanae in aoplicabie law. XX.15.050 Lease termination. ja) Anv of the foilowinq shali be qrounds for the Citv Manaaer to cancel a lease and recover possession of the premises upon 30 davs' written notice to the lessee, unless the violation is cured within the 30 daVS: (1) The lessee faifs to pav when due tne rents, additional rents. charqes or other sums specified in the lease; issuinq financial institution: 30 {3) The iessee uses. or authorizes oThers co use, the premises r"or anv purpose not authorized bv the Iease: ' (4y The lessee fails to fullv oerform or complv with anv provision in the lease~ j5) The lessee uses the premises for a~ iileqal purpose or atherwise materialiv violates an applicable law: (6) A court enters a iudqment of insoivencv aqainst the lessee: (71 A trustee or receiver is aopointed for the lessee's assets in a proceedinq brouqht bv or acaainst the lessee. or the tessee files a voluntarv petition in bankruptcv: or (81 Failure bv the lessee to timely comolete anV land development or permanent improvement construction required bv the lease. (b) Tiie iessee wiil continue to paV the Citv rent after the expiration, termination. or cancellation of this lease and to abide bv the lease obliqations. includinq providinq proof of insurance coveraqe, throuqh the date lessee relinquishes possession of and compieteiv vacates the premises. The premises will be considered completelv vacated when the lessee has (1) remediated anv environmental contamination for which the Lessee is responsible; (2} removed or atherwise disposed of anv lessee-owned permanent or removable imqrovements and qersonal propertv which the lease allows to be removed or the Citv Manaqer directs to be removed: and t3) restored the premises to a neat and clean phvsical condition acceotable to the Citv Manager. (The above provision was adapted from a Sfate of Alaska /ease form. It fs not an uncommon practice in the airport industry to hold a lessee responsible for the payment of rent until a new lessee can be found to /ease the property. If the City wants to go that roufe, (b) above wil/ need to be revised accordingly.) XX 15.060 Damaqe to Iessee improvements. la) Exceot as qrovided under_(b1 of this section, if a lessee's improvements on the premises are damaqed or destroved the lessee shali cause the improvements to be repaired or rebuiit and restored to normal function within two t21 vears following the damaqe or destruction: If the lessee fails to timelv rebuild or restore the improvements, the Citv Manaqer mav, at the Manaqer's soie discretion, either 31 (1) reduce the term of the lease commensurate with the estimated value of the lessee's remaininq, fullv fu~ctional improvements on the premises. usinq the term table in XX.10.080: or t2) cancel the lease. (b} If a lessee's improvements are damaqed to the extent that more than 5~% of the space is unusable and the damaqe occurs within five {5) vears of the exoiration of the term of the lease, the lessee mav remove the damaaed improvements. restore the premises and ierminate tnis iease. XX.15.070 Disposition of improvements upon termination. ~on the expiration of the term of a lease or anv earlier termination. title to the buildinas other improvements. and buildina equipment shali automaticallv vest in Citv without requirement of any deed. conveyance, or bill ot sale. Nowever, if Citv Manager requests anv such document, the lessee shail promotiy execute. acknowiedae. and _deliver the document to the Citv Manaqer and pav anv charge, tax. and fee lawfullv asserted or imposed on the convevance evidenced bv the docurnent. Provided however that the lessee shall retain title to. and remove from the oremises at the lessee's sole expense, any buiidinq, other improvement or buildinq equipment that the Citv Manaqer determines in writinq to the lessee 1. has exceeded its useful life: 2. is damaqed bevond reasonable repair: 3. is a hindrance to the future use of the premises: or 4. is of neqligible value. Chapter XX.20 AIRPORT COMMISSION XX.20.010 Duties and powers. XX.20.020 Qualifications. XX25.030 Membership. XX.20.010 Duties and powers. The Commission shalB: (a) Develop, adopt, alter or revise, subject to approval by the City Council, a master pian for the airport development. This may include: 32 (1) Development of type, location and sequence of all airport terminai facilities; and (2} Development and use of alI Citv-owned iand within the Airport Re s e rve a ir-pe ~-ae~eaat~+c-aNaa~s. (b} Observe, oversee and guide in an advisory capacity, any matters relating to use of airport runways, airport terminal, and Citv-owned land within the Airport Reserve ' . (c) Act in an advisory capacity to the Gitv Gouncil, the Citv Manaqer. and the Airport Manager. (d} Review lease anplications and make recommendations to the CitV Manaqer as provided under XX.10.060. XX.20.020 Qualifications. Members of the Airport Commission will conform to the requirements of the City of Kenai Boards, Commissions, and Committees Standard Procedures as established by KMC 1.90, except that members of the Airport Commission need not be residents of the City of Kenai. (Ord. 1531-93) ~ XX.25.030 Membership. The Commission shall comprise of seven (7) members who shall be chosen so as to rep~esent broadly the following areas: (a) One member, fixed base operator (FBO) (b) One member, lessee of airport aeronautical lands or terminal facility. (c) One member, with expertise in Federal Aviation Administration functions. (d) One member, representing the Civii Air Patrol. (e) Three members, at-large, representing the business and professional community. (f) One non-voting member, representing ad hoc member of the Kenai City Council. (Ord. 1531-93) (NOTE: Except for the reference to /ease application revfews and narrowing fhe Commission's scope to the Airport Reserve, I am not recommending changes to this Airport Commission chapter at this time. As the City moves through the Implementation Pian, changes to this chapter wiN have to be made fram time to time to reflect increases in Commission authority & responsibility, changes in membership, etc.) I 33 "'? ?? ?? Lease Qevelooment Incentives fTemporarv waiver of Citv prooertv taxes} (I didn't know where in the KMC fhis should be addressed. The following is the general outline of the program recommended in the Phase 1( project report.) ~ A. The lessee must commit to compiete permanent improvements costinq at least ~250.000 on the premises: B. The lessee must commit to complete the improvements within 24 months of the lease beginninq date: C. The lessee must submit to the City written evidence that the improvements have been timelv compieted. toaether with evidence of the lessee s total cost af canstructinq the improvements: D._Upon_re_c_e_iv_in_g satisfactorv evidence of timelv compietio~ from the lessee, the City wiil qrant the lessee a waiver of the Citv propertv taxes applicable to the improvements for a period of time immediatelv followinq the date on which the lessee completed the improvements. The propertv tax waiver period would depend on the lessee's improvement construction cost, as fo(lows: COST TAX WAIVER PERIaD At least ~250.000. but less than S500.000 ....................... 2 vears At least $500.Q00, but less than 5750.000 ....................... 3 vears At least ~750.000 ............................................................. 4 vears (This graduated approach to tax waivers would encourage larger developments while providing some incentives for smaller ones.) E. The waiver wouid not apply to any improvements constructed o~ the premises after the date in B, above. F. If the lessee commits a breach of the lease. any unexqired waiver wouid end on the date the CitV terminates the lease. 34 ~ .~.~ _,~::'~ ~ti t ~~ _.' ._ ,_'._ _ ~?-9 - , ,- theu~af / KENA~ SKA _~ . ~~l/clla~e wit~t a Past, Gi~ ~c~ ~,. s 210 Fidaigo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 / Fax: (907) 283-3014 www.ci.kenai.ak.us MEMORANDUM TO: 6 Mayor Porter and the Kenai City Councit FROM: C~- Cary R. Graves, City Attorney DATE: September l, 2006 RE: Substitute Ordinance No 2180-2006 Substitute ordinance 2180-2006 contains a variery of changes from the original ordinance. The changes came from suggestions from the Airport Commission, the consultant, individual Council Members and staff. The substitute is in legislative format. The changes shown are from the original ordinance, not the currently existing code provisions. The idea is to let the Council see what changes have been made from the ordinance introduced on August 2, 2006. To help explain the changes, I will go through them in this memorandum with a brief explanation of why they were made. Hopefully, this will provide a better understanding of the substitute ordinance. Please let me know if you have any questions. Page L Changes to the title page reflect the addition of the off-airport rental car ordinance (KMC 21.05.080) and renumbering of the next ordinance. 2. Page 4-5. This adds KMC 21.05.080 (Off-airport vehicle rental permit). This is the same as the current KMC 21.05.045. The consultant did notinclude itin his draft because he thought it should be covered by a regulation, not an ordinance. The administration feels this section should be included in the ordinance. 3. Page 5. The penalties section was renumbered from KMC 21.05.080 to KMC 21.05.090 to reflect addition of the off-airport vehicle rental section above. 4. Page 6. KMC 21.10.170 (Annual minimum rental) was added to the title page and the following ordinances were re-numbered. KMC 21.10.010 was reworded to try to make the intent cleazer regarding pending airport lease applications filed prior to the effective date of this ordinance. These leases will be processed and issued under the old rules. Otherwise, the new rules will apply (i.e. lease renewals and extensions). Mayor Porter and Kenai City Council September 1, 2006 Paee 2 of 4 5. Page 7. KMC 2110.040(b}(1)(iv) was changed to retlect Chat the construction schedule should "ordinarily" be two years. It was changed to provide flexibility for wnstruction of a lazge project that can extend beyond the two-yeaz deadline. KMC 21.10.040(b)(2) was added at the request of the consultant. It requires a lease applicant to explain his construction financing, including a letter of interest from a financial institution. Councilor Molloy requested information regarding the city's ability Co keep lease application information, such as financing, confidential. AS 40.25 (Public Records Disclosures) covers the release of public records for the state and municipalities. AS 40.25110 provides that unless otherwise exempted by law records held by the state and municipalities are public records. Exceptions to the public records act aze narrowly construed. Municipaliry of.Anchorage v. Anchorage Daily News, 794 P.2d 584 (Alaska 1990). There aze some exemptions recognized under state law such as personnel records, tax information, and library records. Financial information attached to a lease applieation is not covered under any of the current exemptions to the public records rules. It is questionable whether the city could create a municipal exemption broader than the exemptions allowed by the state. 6. Page 1 l. KMC 21.10.090. Several changes were made to this section. Subsections (a) and (b) were changed to allow a shorter lease renewal than allowed under the matrix if the shorter term is in the best interest of the city. An example is if a lessee applies for a 35-year lease or renewal and the city has plans for the property in 25 yeazs. The city could grant the renewal for only 25 yeazs. A provision was added that requires an applicant for a lease renewal to pay for the appraisal of the improvements. The appraisal must be made by an appraiser with airport experience licensed in Alaska. 7. Page 12. A new matrix was added at (d)(1), at the request of the Airport Commission. It keeps the maximum term at 35 yeazs, but changes the increments from 25,000 for one additional year to 100,000 for five additional years. Subsection (d)(3) was added to a11ow a bona fide purchaser for value to get a lease extension based on the purchase value of the improvements. The matrix is used to determine the length of the extension unless the city finds a shorter extension is in the best interest of the city. The lease could not be extended past 35 years. The applicant must pay for the appraisal to determine the value improvements. Subsection (e) and (~ were amended to provide that construction schedule for improvements shouid "ordinarily" be two yeazs. That is to recognize that situations may arise where the improvements cannot be completed within two years. Subsection (i) was amended to clarify the intent that extensions of a cons~uction schedule cannot exceed twelve months. ~tayor Porter and Kenai Ciry Council September I, 2006 Page 3 of 4 8. Page 13. KMC 21.10.090(k) was added at the request of the Airport Commission fo provide for a five-year review by the City Manager of rates and charges to keep up with inflation, etc. KMC 21.10.100(a) was amended to provide that prior to the new zone-base lease rate being finished, new lessees will pay 8% until the first June 30`h after the rate study is done and will then shift over to the new rate. The original ordinance had them paying 8% for the duration of their lease. 9. Page 14. KMC 21.10.100(b) was changed at the request of the Airport Commission to reflect that short-term (eases should be on a shorter repayment schedule for city- constructed improvements. 10. Page 15. KMC 21.10.160(a) was changed to reflect that atl airport reserve property under the new system will be on the same re-appraisal schedule starting in 2012. It will be appraised in 200'7 and all property will be re-appraised every five yeazs afrer that. For example, if I lease property in 2009, I will use the 2007 squaze foot lease rate until 2012, when my lease wili be re-appraised like all other reserve property. Then it will be re- appraised in 2017 with all other reserve property. Subsection (c) was changed to reflect that the initial re-appraisal rate would be based on the city's zone based square foot appraisal rather than an individual appraisal. The second and third appraisers in an appeal must now have airport appraisal experience and be certified under AS 8.87. 1 l. Page 16. KMC 21.10.170 (Annual minimum rental) was added at the request of the consultant. It sets out what rent the lessee must pay and how it shall pay it. In addition to property tax on the lease, lessee must pay any special assessments on the property and sales tax applicable to its operations. KMC 21.10.180 (Use Permits) was amended as requested by the consultant to clarify the special use permit process. KMC 21.10.180 (Acquisition of real property) was re-numbered to KMC 21.10.190 to reflect the addition of the annual minimum rental section described above. 12. Page 18. KMC 21.15.010(e) was changed to read the same as KMC 21.10.010(c) as discussed at No. 1 above. The changes are to better reflect that pending lease applications filed prior to the effective date of this ordinance aze processed and issued under the old rules. Otherwise the provisions of this chapter would apply (i.e. lease renewals or extensions). KMC 21.15.030 was amended to add the word "ordinarily" regarding the lessee's construction schedule. That change was made to reflect that some construction projects might require longer than two yeazs for completion. Mayor Porter and Kenai City Councif September I, 2006 Page 4 of 4 13. Page 20. KMC 21.15.080 (Appraisal). This section was changed to put appraisals for sales on the same one-year time limit as lease appraisais. Currently some sale appraisals are under a six-month limit and other sale provisions are uncleaz as to what the appraisal limit is. This would clarify that ambiguity at have one standazd for all leases and sales. 14. Page 21. KMC 21.15.120 (Principals and policies of lease rates). The requirement that the appraiser of city property be qualified as an expert wimess was deleted. The thought was that requiring the appraiser to be licensed in the state was enough assurance of competence and that arguing whether an appraiser would qualify as an expert witness was something that could delay the lease rate determination process. KMC 2I.15.130(b} (Reimbursement for city-constructed improvements). This is the same change as made to KMC 21.10100(b) as described in No. 9 above. It requires for shorter repayment schedule for city-constructed improvements for shorter-term leases (fewer than ten yeazs}. 15. Page 22. KMC 21.15.170 (Conveyance to encourage new enterprises). This section was amended by changing the requirement of a resolution authorizing a sale to requiring an ordinance. Councilor Swamec suggested that change. The provision for sale to a non- profit was removed because sales to a non-profit aze already covered in KMC 21.15.240. : Also, the phrase "increase the ecnnomic stabiliry of the City of Kenai" was removed. Councilor Ross questioned whether the phrase was too ambiguous. After looking at the phrase, staff agreed it was ambiguous and thought it should be removed. 16. Page 23. KMC 21.15.180(b} (Sale). This appraisal time period was changed from six months to one year similar to what was done in No. 13 above (KMC 21.15.080.) ~ SUBSTITUTE Suggested by: Administration CITY OF KENAI o~arrArrcE No. ziso-2oo6 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA. REPEALING THE EXISTING KMC 21.05 (AIRPORT ADMINISTRATION AND OPERATION), KMC 21.10 (LEASING OF AIRPORT LANDS), KMC 21.15 (PROVISIONS REQUIRED) AND KMC 21.20 (POLICY GOVERNING MODIFICATION OF EXISTING LEASES), AND REPLACING THEM WITH KMC 21.05 (AIRPORT ADMINISTRATION AND OPERATION), KMC 21.10 (LEASING OF AIRPORT RESERVE LANDS) AND KMC 21.15 (LEASE AND SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE). WHEREAS, the City of Kenai has undertaken a Supplemental Airport Master Plan process in which a comprehensive review of city policies regarding the use, lease and sale of airport lands was completed; and. WHEREAS, numerous public hearings were heid during the process, including meetings with the Kenai City Council, Airport Comrnission, Planning and Zoning Comnussion, the Kenai Economic Development Strategies group, and members of the public, in order to increase public comment and participation during the process: and, WHEREAS, it is in the best interest of the City of Kenai to create an Airport Reserve and modemize the leasing provisions regarding Airport Reserve land and to prohibit land sales within the reserve; and, WHEREAS, it is in the best interest of the City of Kenai to modernize its leasing procedures for airport land outside the Airport Reserve and to eliminate the ability of new lessees to have the vested right to purchase the leased property once the property's development plan has been completed; and. WHEREAS, there may be instances where it is in the best interest of the City of Kenai to sell or convey some airport property outside of the Airport Reserve; and, WHEREAS, it is not the intent of this ordinance to alter or amend existing leases during their original terms; and, WHEREAS, e~tensions or renewals of existing leases not governed by the terms of that lease shall be processed according to the provisions of this ordinance, and, WHEREAS, it is in the best interest of the City of Kenai to enact the new policies and procedures as shown in Attachment A. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI. ALASKA that KMC 21.05, 21.10, 21.15 and 21.20 are hereby repealed and KMC 21.05, 21.10 and 21.15 as shown on Attachment A are hereby enacted. Ordinance No. 2180-2006 SUBSTITUTE Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI. ALASKA, this 6~ day of September, 2006. PAT PORTER, MAYOR A'I1'EST: Carol L. Freas, City Clerk Introduced: August 2, 2006 Second reading: August 16, 2006 Adopted: September 6, 2006 Effective: October 6, 2006 Title 21 KENAI MUNICIPAL AdRPORT AND THE AdRPORT RESERVE Chapters: 21.05 Airport Administration and Operation 21.10 Leasing of Airport Reserve Lands 21.15 Leasing of Non-Airport Reserve Lands 21.20 Airport Commission Chapter 21.05 AIRPORT ADMINISTRATION AND OPERATION Sections: 21.05.010 21.05.020 21.05.030 21.05.040 21.05.050 21.05.060 21.05.070 21.05.080 21.05.090 Airport Reserve. Airport Reserve boundary map. Definftions. Regulation of the airport. Use or occupancy of the Airport Reserve. Parking automobiles and aircraft. Environmental requirements. Off•airport vehicle rental nermit. Penalties. 21.05.010 Airport Reserve. (a) There is established an Aiiport Reserve for the development, expansion, maintenance, operation, protection, and perpetuation of the Kenai Municipal Airport. The boundaries of the Airport Reserve aze established as shown on the map codified as 21.05.020. (b) No city-owned land within the Airport Reserve shall be sold or otherwise conveyed out of City ownership for any purpose, except as provided in a lease executed by the City before the effective date of this section. 21.05.020 Airport Reserve Boundary Map. (See Appendix I to this Chapter.) 21.05.030 Definitions. Unless the context requires otherwise, the following words or phrases have the meaning given below when used in this Title 2L (a) "Airport" means all the facilities and land of the Kenai Municipal Airport within the Airport Reserve. Ordinance 2180-2006 SUBSTTTiTI'E Attachment A Page 1 of 27 (b) "Airport Manager" means the official to whom the Ciry Manager has delegated the authority and responsibility of managing and directing the activities of the aitport. "Airport Manager" includesthat person's authorized representative. (c) "Airport Reserve" means the city-owned land reserved from sale and designated under 21.05.010 and 21.05.020. (d) "City Manager" means the official to whom the City Council has delegated the responsibility of managing and directing all activities of the City. "City Manager" includes those persons to whom the Manager has delegated responsibility to perform functions under this Title 21. 21.05.040 Regulation of airport. The City Manager may regulate the manner in which the airport is operated with reference to safety, accommodation, user fees, and service to the publia The City Manager is authorized to adopt, amend, and repeal such rules and regulations as may be necessary. Regulations promulgated under authority of this section are effective on the date designated by the City Manager. The City Council may by resolution at any meeting revise or repeal any regulation adopted under authority of this section. In this connection, the rules and regulations adopted prior to the enactment of [his section are hereby ratified, approved, and continued in full force and effect undl further amended or repealed by subsequent action of the City Manager. 21.05.050 Use or Occupancy of the Airport Reserve. No person may use or occupy city-owned land or facilities within the Airport Reserve for any purpose unless, (a) the portion of the land or facility being used or occupied is designated by the city for public use and the person's use or occupancy conforms to that public use; or ~ (b) the person first obtains a lease, pernut, concession, or other written permission from the City authorizing the use or occupancy; or (c) the person is on a premises with the express or implied consent of the lessee, pernuttee, or concessionaire. 21.05.060 Parking automobiles and aircraft. It shall be unlawful for a person to park an aircraft or automobile on the airport in any location or in any manner contrary to a regulation adopted under KMC 21.05.040, or a rule or order issued by the Airport Manager pursuant to a regulation adopted under KMC 21.05.040. The Airport Manager, including the manager's designated representative, shail be vested with full po(ice powers under the authority of the City to enforce the provisions of this section. 21.05.070 Environmental requirements. (a) A person using the airport shall comply with all applicable environmental laws. (b} A lessee, permittee, or concessionaire who is required under any environmental law to submit a report or other document about a violation or potential violation of an environmental law to a regulatory agency shall provide a copy of the document to the City Manager. Any person who receives a permit from an environmental regulatory agency in connection with the person's use of the airport shall, within ten (10) days of receipt of the peranit, provide a copy of the permit to the City Manager. (c) A lessee, permittee, or concessionaire shall provide to the City Manager a copy of Ordinance 2180-2006 SUBSTTTUTE Attachment A Page 2 of 27 (1) any notice of violation or otller notice, claim, or citation alleging a violation of an environmental law affecting airport property that a regulatory agency issues to or files against that lessee, permittee, or concessionaire; and (2) any complaint filed in a court that alleges violation by the lessee, permittee, or concessionaire of an environmental law affecting airport property. (d) The City Manager shall require a person responsible for the contamination of airport property to remediate and retum contaminated airport property to an environmentaliy acceptable condition ro the satisfaction of any regulatory agency having jurisdiction. However, any regulatory agency approval of a proposed remediation plan that limits the future use of airport property is subject to approval by the City Manager before the responsible person may begin remediation activities on the airport. A person remediating contaminated airport property may not unreasonably interfere with (1) a lessee's use of, or access to, the lessee's premises, unless (i) the contamination is a direct result of the lessee's operations; or (ii) the lessee first expressly consents; or (2) the operation or development of the airport unless the City Manager first expressly consents. (e) If the City Manager has cause to be(ieve a premises or other property on the airport may have been contaminated, the Manager may cause to be performed an environmental assessment on the premises or property to establish the presence and source of any contamination and to describe the environmental condition of the premises or property. While performing the assessment, the City will not unreasonably interfere with a lessee's use of, or access to, the lessee's premises unless the lessee first expressly consents. The City will assume the cost of the assessment of a premises or property if contamination is not found on the premises or property. If contamination is found on the premises or property, the person responsible for the contamination shall, upon notice from the City Manager, (1} reimburse the City for the cost of the assessment; and (2) clean up the contamination. (f~ For purposes of this section, interference with (1) a lessee's use of, or access to, the lessee's premises is unreasonable if the interference (i) poses a safety hazard or a substantial disruption of the lessee's use of, or access to, the lessee's premises; or (ii) can be avoided without materially increasing the cost or materiaily decreasing the effectiveness of the effort to achieve remediation satisfactory to ail agencies having jurisdiction, or a reasonable environmental assessment, as applicable; (2) the operation or development of the airport is unreasonable if the interference poses a safety hazazd or a material disruption of the operation or development of the airport. (g) For the purposes of chis chapter 21.05, [he following terms are defined as follows: (1) "Contamination"-the unpernutted presence of any released Hazardous Substance. (2) "Environmental Assessment" - an assessment of property, prepared in a manner consistent with generaily accepted professional practices, that is supported by reports and tests that deternvne the environmental condition of property and the presence, type, concentration, and extent of a Hazazdous Substance in, on, and under the surFace of the property. Ordinance 2180-2006 SUBSTITUTE Attachment A Page 3 of 27 (3) "Environmental Law"-any applicable federal, state, or local statute, law, regulation, ordinance, code, pernut, order, decision, judgment of any govemmentai entity relating to environmental matters, including littenng and dumping. (4) "Aazardous Substance"-any substance that is defined under an Environmental I,aw as hazardous waste, Hazardous Substance, hazazdous materiai, toxic, pollutant, contaminant, petroleum, petroleum product, or oil. (5) "Materially Contributed To"-to cause the release or migration of a Hazazdous Substance in a reportable quantity as defined under applicable Environmental I,aw. (6) "Responsible"-when used in regard to environmental contamination, means having materiaily contributed to, assumed under an assignment, or being otherwise liable for by law or contract. 21.05.080 Off-airaoet vehicle rentat uermit. (a) To operate a vehicle rental business on the Kenai Municipal Airport a person who does not have a concession to onerate a vehicle rental business in the terminal buildinQ must hold a current vehicle rental business permit issued under this section {b) A person must submit an a~plication for a vehicle rental business permit in writinp to the Airoort Manaeer and include: (1) A list of vehicles that the apolicant proposes to oaerate on the airport under the vehicle• (2) A descriotion of the services that the anplicant proposes to offer under the permiC ~3) Anv appiication fee established bv the Citv. (c) The Airoort Manaeer shall aDprove an application for a vehicle rental business vermit unless the Manager determines that: (1) The anplicant is (i} In violation of a matenal term of a contract with the City, {ii) In arreazs to a navment (includine Citv or Borough sales or property tax) or other financial obligation due to the Citv or liii) In default of a material oblieation under anv lease contract oermit or concession the Citv has issued to the apnlicant: j21 The nronosed use would interfere with or is otherwise incompatible with the securitv safetv, maintenance, or operation of the airoort• (3) The oroposed use would violate an apolicable FAA Qrant assurance or the Cit~s obligations under revenue bonds: (4) The proposed use would result in a violation of apolicable law• or (5} The nronosed use is inconsistent with sound airoort olanning {d) A decision bv the Airport Manaeer to deny an appiication for a vehicle rentaI business permit must be in writine. (e) A vehicle rental business permit is not transferable and mav not exceed a term of five (5) years. (~ An off-airport rental business permittee shall pay ten oercent (10%) of eross revenue derived from rentals orieinating at or from the Kenai Municipal Airport (e) Unon reasonable notice. the Citv shall have the rieht to audit a nermittee's books and records regazding the permit for verif i~ng the Qross revenue. {hl A vehicle rental business permittee shall orovide such evidence of insurance covera¢e for the permittee's onerations on the airport as the Airport Manaeer determines a.pprovriate Ordinance 2180-2006 SUBSTITUTE Attachment A Page 4 of 27 (i) A vehicle rental business permittee operatine a vehicle on airport propenv shall keep the vehicle in safe ooerating condition. The Airport Manaeer shall order a pernuttee to remove from service anv oermittee vehicle the ManaQer determines to be unsafe or otherwise in violation of this section. (j) A vehicle rental business pernuttee maypark, wait, and drop off or pick up a passenQer only at a premises or in an area the Aitport ManaQer has desiQnated for that purpose. (k) A vehicle rental business permittee may cancel a permit and cease operations aC the airport at anv time on written no[ice to the Airoort Mana~er. (I) The Airport Mana~er shall, after written notice to the permiCtee, cancet a vehicle rental business pernut and invalidate all vehicle identification issued to the permittee if the Manager determines that the permittee: (1) Is not in compliance with the vehicle rental business permit and has not conected the noncompliance within ten (10) days after receipt of the notice: or ~ Has ceased vehicle rental operations on the airoort. (m) Cancellation of a vehicle rental business permit bv the Airport ManaQer must be in writing and sTate the reasons for the cancellation. (n) An applicant or vermittee mav protest the Aitport Manaeer's decision to denv an application or cancel a vehicle rental business oermit in accordance with KMC 14.20.290. (o) In this section, "eross revenue" means and includes, but is not limited to the followinQ: (1) All monies paid or ~yable to the permittee from a transaction initiated under an off- airport vehicle rental business permit, re~azdless of either the assiened location of the rental- car or where the customer returns the rental car; (2) Chaz~es for an_y service performed in, on or throueh the business conducted under this aereement, and includes all other income andproceeds From or incidental to anv business conducted in whole or in part in, on or in connection with the rights ~ranted under a permit; (3) Goods, work or services furnished b~~any_person in lieu of ~a,yment in exchanee for value received; (4) Sales or fees for au[omobile liabilitv insurance and personal accident insurance. (p) No deductions from~ross revenue other than those specificallV identified below shall be allowed: (1) The amount of Federal, State, BorouQh or municipal sales or other similar taxes separatelv stated and collected and/or reimbursed from customers; (2) Anv sums received from sales of capitai assets: t3) Anv sums received from insurance or other settlements from damaQe to automobiles or other prooertv of the concessionaire, or for the loss. conversion or abandonment of such automobiles, or anv char~es collected from a customer for damages to the automobile rented; (4) Any sums received for loss damaQe waiver insurance; (5) Replacement fuel charees. (q) In this section, "aicport" means the area of land or water that is used or intended to be used for the landing and take-off of aircraft and includes its buildinQS and facilities such as the terminal, ramps, taxiwavs, parkine lots and the float nlane basin. 21.09.090 Penalties. Violations of this chapter shall be punished as provided for violations in KMC 13.05.010. Ordinance 2180-2006 SUBSTITi7TE Attachment A Page 5 of 27 Chapter 21.10 LEASING OF AIRPORT RESERVE LANDS Sections. 21.10.010 Airport reserve land. 21.10.020 Lands available ffor leasing. 21.10.030 Qualifications of applicants or bidders. 21.10.040 Applications. 21.10.050 Flling fee and deposit. 21.10.060 No right of occupancy; Application expiration. 21.10.070 Processing procedure. 21.10.080 Lease amendment or renewal. 21.10.090 Length of lease term. 21.10.100 Rental rake determination. 21.10.110 Reimbursement for city-constructed improvements. 21.10.12Q Lease uti[ization. 21.10e130 Bidding procedure. 21.10.140 Lease execution. 21.10.150 Form of lease. 21.10.160 Re-evaluation of rent. 21.10.170 Annual minimum rental. 21.10.180 Use permits. 21.10.190 Acquisition of real property. 21.10.010 Airport reserve land. (a) This chapter applies to airpork-owned land within the Airport Reserve. (b) The provisions of this chapter shall not alter or amend the terms or rights granted under leases existing prior to the effective date of this chapter. (c) Pending lease applications for airport land filed prior to the effective date of this [CI-IAP'I'ER] ordinance shall [COME] be processed and issued under the provisions of KMC 21[.10-20] and 22 in existence immediatelv prior to the effective date of this ordinance. Otherwise the provisions of this chapter shall apply, 21.10.020 Lands available for leasing. (a) Subject to the provisions of this chapter, city-owned land within the Airport Reserve may be teased as provided in this chapter unless the land is identified in the latest Federal Aviation Administration-approved Airport Layout Plan for the airport or in the latest Airport Land Use Pian as being required for the operation or safety of the airport, or for the construction, preservation, future construction, or future expansion of facilities on the airport, including (1) runways, runway safety areas, taxiways, aprons, water lanes, water ta:ciways, and other aircraft operational azeas; (2) access roads, public streets, parking lots, and other facilities for use by motor vehicles; and (3) public ternunal buildings. Ordinance 2180-2006 SUBSTITUTE Attactiment A Page 6 of 27 ~ (b) NoCwithstanding (a) of this section, (1) apron space may be leased, but only for aircraft fueling, loading, unloading, parking and maneuvering purposes; and (2) land required for the fuCure construction or fuCUre expansion of airport facilities: (i) may be leased for an interim period not extending beyond the date on which the City Manager determines the land will be required for the construction or expansion; but (ii) may not be leased if Che City Manager determines that granting the lease would interfere with, or jeopazdize, the safe operation of the aiiport. 21.10.030 Quali~cations of applicants or bidders. An applicant or bidder for a lease is qua(ified if the applicant or bidder: (a) Is an individual at least eighteen (18) yeazs of age; (b) Is a group, association, or corporation which is authorized to conduct business under the laws of Alaska; or {c) Is acting as an agent for another and has qualified by filing with the City Manager a proper power of attorney or a letter of authorization creating such agency. The agent shall represent only one (1) principal to the exclusion of himseif. The term "agent" includes real estate brokers and agents. 21.10.040 Applications. (a) All applications for lease of lands shall be submitted to the City Manager on forms provided by the City Manager, together with the non-refundable filing fee and any applicable deposit required under 21.10.050. The City Manager shall not accept an application that the Manager determines ro be incomplete. Upon receipt of a complete application, filing fee, and any applicable deposit, the City Manager shall cause the application to be stamped with the date and time of its receipt. (b) With every application, the applicant shall submit (1) a developrnent plan, showing and stating: (i) The purpose of the proposed lease; (ii) The use, nature, proposed location on the premises, and estimated cost of improvements to be constructed; (iii) The type of construction; (iv) The anticipated construction beginning and completion dates (ordinarilv two yeazs); and (v) Whether the intended use and proposed development conforms with the (i) zoning ordinance of the City; (ii) comprehensive plan of the City; (iii) latest Federal Aviation Administration-approved Aiiport Layout Plan for the airport; and (iv) the latest Aicport Land Use Plan. (2) an ex.planation of how the apnlicant intends to finance the construction of the proposed i~rovements. If the applicant plans to borrow funds, the aaplicant must include a letter from a bank or other IendinQ institution expressina interest in providinQ financin f¢ or the improvements. (3) A business plan, if the applicant proposes to operate a business on the proposed premises. The plan must include Ordinance 2180-2006 SUBSTTTiJTE Attachment A Page 7 of 27 (i) a comprehensive description of the proposed business; (ii) the number of people the applicant expects to employ in the business during its first fuli year of operation; (iii) the number of customers the applicant expects business to serve during its first full yeaz of operation; (iv) the applicant's source of capital. If the applicant plans to borrow funds, include a letter from a bank or other lendzng institution expressing interest in providing capital; and (v) the applicant's estimate of the gross receipts of the business during its first year of fuli operation; (4) A site plan, iP the land the applicant desires to lease is not a ptatted lot or tract. The site pian must show the location and dimensions of the proposed lease site, but need not be prepared by an engineer or surveyor; and (5) A KPB tax compliance certificate and statement that the applicant is current with any charges, fees, rents, taxes or other sums due and payable to the City. (c) Anytime during the processing of a lease application, the City Manager may request, and the applicant shall supply, any clarification or additional information that the City Manager reasonably deternunes is necessary for the City to make a final decision on the appiication. 21.10.050 Filing fee and deposit. (a) When submitting an application for lease of land, the applicant shall (1) pay a non-refundable filing fee in the amount of one hundred dollazs ($100.00); and (2) make a deposit to show good faith and secure the City in payment of any costs in the foliowing amounts: (i) An appraisal cost recovery deposit of two thousand doliars ($2,000.00); and (ii) An engineering, surveying and consulting cost recovery deposit of two thousand doilars ($2,000.00). (b) IP the City decides to reject the applicant's application and not enter into a lease with the appiicant through no fault of the applicant or failure of the applicant to comply with any requirement of this chapter, any deposit made under (a)(2) of this section will be retumed to the applicant. (c) If the City enters into a lease with the applicant any deposit made by the applicant under (a) of this section will be applied to the City's engineering, appraisal, and consulting costs related to the processing of the applicanYs application and entering into the lease. The City will appiy any unused balance of a deposit to the rent payable under the lease. If the City's costs exceed the amount of any deposit, the applicant shali pay the shortage to the City as a condition of the lease. (d) If the applicant faiis to comply with any requirement of this chapter, causes inordinate delay9 as determined by the City Manager, or refuses to sign a lease offered to the applicant, the Ciky Manager wiil reject the applicant's application and apply any deposit made by the applicant under (a) of this section to the City's appraisal, engineering, and consulting costs incurred in connection with the applicanYs appiication. If the City's costs for appraisat, engineering and consulting costs exceed the deposits, the applicant wiil be responsible for these costs. The City will return any unused deposit balance to the applicant. 21.10.060 No right of occupancy; Application expiration. (a) Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. Ordinance 2180-2006 SUBSTITIJTE Attachment A Page 8 of 27 (b) If the City does noC reject the application, an application shall expire on the earlier of Che following (1) twelve (12) months afYer the date stamped on the application under 21.10.040(a) if the City and the applicant have not, by that time, entered into a lease, unless Che Council for good cause grants an extension for a period not to exceed six (6) months; or (2) the deadline date established under KMC 21.10.140, including any extension of time granted thereunder. 21.10.070 Application processing procedure. (a) Initial Application Review by: (i) AssistanC to Yhe City Manager (for applicaCion completeness; conformance wiCh Title 21); (2) Airport Manager (for conformance with the Airport Land Use Plan, Airport Layout Plan, Airport Master Plan, FAA regulations, AIP grant assurances, and airport operations); (3) City Planner (for conformance with the Airport Land Use Plan, Comprehensive Plan, municipal zoning, and future airport improvement projects); and (4) City Manager (for adequacy of the applicant's business plan and construction financing plans). (b) The above staff shall present to the City Manager their joint recommendation for action on the application, such as Rejecdon, Approval, or Approval of a staff alternative. (c) If the City Manager concurs with the staff recommendation, the Manager will: (1) issue a rejection letter, stating the reasons for rejection; or (2) refer the application to the Airport Commission and the Planning & Zoning Commission for review and comment, together with the Manager's recommendation for Approvai or Approval of the staff alternative; and (3) Inform the City Council of the Manager's recommendation. (d) If the City Manager refers the application to the Commissions, the City Manager wiil consider the recommendations of the Commissions and (1) Issue a rejection letter, stating the reasons for rejection; or (2) Approve the application or stafP alternative, and direct the staff to issue the lease; and (3) Inform the City Council of the Manager's decision ro approve or reject the application; or (4) Obtain the City CounciPs concunence if ffie Manager's decision to approve or reject the application is contrary to the recommendations of the Commissions. (e) An applicant whose application is rejected by the City Manager may appeal to the City Council within fifteen (15) days foIlowing the date on which the Manager's rejection letter was hand delivered or placed in the U.S. mail. (~ If another complete and otherwise approvable application for lease of the same property is submitted by a different appiicant before the City Manager enters into a lease with the first applicant, the City Manager will forwazd the applications, the Manager's recommendation and the commissions' recommendations to the City Council for approval of the application anticipated to best serve the interests of the City. The Councii may approve one of the applications or direct the City Manager to award a lease of the property by seated bid. (g) Grounds for the City Manager to reject an application include, (1) the applicant's failure to provide any ctarification or information required under this chapter; (2) the applicant's proposed development or use of the land is inconsistent with (i) the zoning ordinance of the City; Ordinance 2180-2006 SUBSTITUTE Attachment A Page 9 of 27 (ii) the comprehensive plan of the City; (iii) the latest Federal Aviation Administration-approved Aitport Layout Plan for the airport; (iv) any obligation of the City under the Airport Sponsor Grant Assurances to the Federal Aviation Administration; (v)thelatest Airport Land Use Plan; or (vi) a regulation of the Federal Aviation Administration applicable to the airport. (3) the applicant's proposed development or use of the land would violate a federal, state, or local law, including an ordinance or regulation of the City; (4) the applicanYs failure to reasonabIy demonstrate the financial viability of the applicanYs proposed development or of the business the applicant proposes to operate; (5) the applicant is in default of any charges, fees, rents, ta~ces, or other sums due and payable to the City; (6) the applicant is in default of a requirement of any lease or contract with the City; (7) the application is rejected by the City Council in favor of another application for the same land under paragraph ( fl above; (8) the Ciry Council decides, under (~ above, to reject all applications and award a lease of the land by sealed bid; and (9) the City Manager or the City Council deternunes that approvai of the application is not in the best interest of the City. (h) The City Council rnay waive provisions of this chapter to lease property or interests in real property with the United States, the state or an Alaska political subdivision when in the judgment of the councii it is advantageous to the municipality to do so. 21.10.080 Lease Amendment or Renewal. An application submitted by an existing tenant for an amendment, term extension, or renewal of the tenant's lease shall be subject to the requirements and procedures of KMC 21.10.010 - 21.10.070, except that (a) KMC 21.10.040(b)(1), (2) and (3) shall not apply to an application that does not include a proposal to construct new improvements on the premises. (b) KMC 21.10.040(b)(3) shall not appiy to an application that does not include a proposal to add, delete, or alter a business authorized under the lease. (c) the appraisal deposit under KMC 21.10.050(a)(2)(i) shall not be required for an application for a lease amendment that, if approved, will not alter the size or value of [he premises; and (d) the deposits under KMC 2110.050(a)(2}(i) and (ii) shall not be required for an application for a lease amendment that, if approved, will make only administrative changes in the lease and will not alter the authorized use, size, or value of the premises or if the City Manager deternvnes the City will not incur any engineering, surveying or consulting costs. Ordinance 2180.2006 SUBSTITUTE Attachment A Page l0 of 27 21.10.090 Length of Lease Term. (a) Unless the Citv determines a shorter lease term is in the best inCeresT of the Citv. the length of term for a lease granted for land within Che Aiiport Reserve will be based on the amount of investment the applicant proposes to make in the construction of new permanent improvements on the premises during the first 24 months following the beginning date of the tease or lease extension. (b) [THE I.ENGTH OF TERM FOR A I,EASE RENEWAL SHALL BE BASED ON] Unless the Citv determines a shorter lease term is in the besC interest of the City, the leneth of term for a lease renewal shall be based on a citv-approved appraisal of the [APPRAISED] value of the pertnanent improvements on the property as set forth in the table in subsection (d)(1). The appraisal shall be ~erformed bv an independent appraiser certified under Alaska Statute 8.87 with exp~ri~nce agpraisine airport improvements. The appraisal shall be paid for by the lessee. (c) If the applicant proposes to make less than $100,000 in new permanent improvements on the premises, the maximum term of a new lease shall be five (5) years. (d) If the applicant proposes to invest $1OQ000 or more in new permanent improvements on the premises, (1) the maximum term of a new lease or a renewal of an expiring lease shall be determined accordittg to the following table: [Applicant's Investment (in U.S. Dollars) [ Maximum is at Least] Term of Years] [Less than $100,000 5 $100,000 15 $125,000 16 $150,000 17 $175,000 18 $200,000 19 $225,000 20 $250,000 21 $275,000 22 $300,000 23 $325,000 24 $350,000 25 $375,000 26 $400,000 2'7 $425,000 28 $450,000 29 $475,000 30 $500,000 31 $525,000 32 $550,000 33 $575,000 34 $60Q000 or more 35~ , Ordinance 2180-2006 SUBSTITUTE Attachment A Page 11 of 27 Applicant's Investmentl Value (in U.S. Dollars) Maximum is at Least Term of Years I.ess than $100.000 5 $100.000 - $199,000 15 $200,000 - $299,000 20 $300,000 - $399.000 25 ~00,000 - $500,000 30 More than $500 000 35 (2) the ma~cimum term extension for an existing lease shall be one (1) yeaz for each $25,000 of additional investment, provided that the total of the remaining lease term and the extension shail not exceed 35 years. (3} a bona fide third partv purchaser of airport improvements mav eet an extension for an exi.stinQ lease acquired with imorovements based on a city-at~nroved appraisal of the improvements nurchased. Unless the City determines a shorter lease term is in the best interest of the Citv. the extension shall be based on the table in subsection (d)(1) provided no extension shall extend a lease term past 35 veazs The appraisal shall be performed bv an indenendent annraiser certified under Alaska Statute 8 87 with experience appraisinQ airport imnrovements. The appraisal shall be paid for by the lessee (e) In the lease granted to the applicant, the City Manager will include a provision requiring the applicant to substantialiy complete the proposed permanent improvements within a reasonable period of time, considering the cost and nature of the improvements. Provided however, that the time allowed shall not ordinariiv exceed 24 months after the effective date of the lease. (fl In the lease extension granted to the appiicant, the City Manager will include a provision requiring the applicant to complete the additional proposed permanent improvements within a reasonable time period, considering the cost and nature of the improvements provided that the time period shall not ordinarilv exceed twenty-four (24) months after the effective date of the lease extension. (g) The City Manager will inciude a provision in a lease or tease ex[ension requiring the lessee to provide a performance bond, deposit, personal guazantee, or other security if the Manager deternunes security is necessary or prudent to ensure the applicant's completion of the permanent improvements within the time period set under (e) or (~ of this section. The City Manager wiil determine the form and amount of the security according to the best interest of the City, considering the naCUre and scope of the proposed improvements and the financiai responsibility of the applicant. (h) The applicant shall, within 30 days after completion of the permanent improvements, submit to the City Manager written documentation that the improvements have been completed as required under (e) or (~ of this section. (i) If the applicant shows good cause to the City Manager, and the Manager deternunes the action is not inconsistent with the City's best interest, the Manager may grant an extension that is sufficient to ailow for the completion of the permanent improvements or for submission of documentation that the permanent improvements have been compieted under this section. No extension or combination of extensions granted [LTNDER EITHER SUBSECTION (e) OR (fl] will exceed 12 months. Ordinance 2180-2006 SUBSTITUTE Attachment A Page 12 of 27 (j) If, within the Cime required under (e) or (~ of this section, including any extension granted under (i) of this section, the applicant fails to complete the required permanent improvements, the City Manager will execute the forfeiture of the performance bond, deposit, personal guarantee, or other security posted by the applicant under (g) of This secTion to the extent necessary to reimburse the City for all costs and damages, including administrative and legal costs, arising from the applicant's failure to complete the required improvements, and initiate cancellation of Che lease or reduce Che term of the lease to a period consistent with the portion of the improvements substantially completed in a timely manner according to the best interests of the City. (k) The Citv Manater shall review rates charQes and the investmenUvalue in the chapter everv five vears to see if adjustments should be made. ~ When used in this section, the following terms shall have the meanings given: (1) "expirittg lease," means a tease with less than one (1) year of term remaining; (2) "existing lease," means a lease with at least one (1) year of term remaining; (3) "permanent improvement," a fixed addition or change to land that is not temporary or portable; (i) "permanent improvement" includes (A) a building, building addiCion, retaining wall, storage tank, earthwork, fill material, gravel, and pavement; and (B) remediation of contamination for which the applicant is not responsible; (ii) "permanent improvement" exctudes items of ordinary maintenance, such as glass replacement, painting, roof repairs, door repairs, plumbing repairs, floor covering replacement, or pavement patching. 21.10.100 Rental rate determination. (a) Beginning in 2007 and at intervals of approximately five (5) yeazs thereafter, the City Manager shall retain the services of an independent, qualified real estate appraiser certified under Alaska Statute 08.87 to deternune a zone-based squaze foot lease rate for all land within the Aiiport Reserve that is under lease or available for lease based on the fair market value of the property and the appropriate market lease rate for propeny within the Airport Reserve. L.ease applications filed after the effective date of this chapter but prior to completion of the initial lease rate determination shalt have a rental rate of eight percent (8%) of fair market value until the first 7une 30 after the zone based sauaze foot lease rate is established under this subsection, after which the lease rate shall be as established in the zone-base sauare foot method described above. (b) Following the date on which the City Manager accepts the determinations made under (a) of this section, the Manager shall establish rental amounts for leases as follows: (1) for each new lease granted by the City under this chapter, the rental shall be as detemuned under (a) of this section; and (2) for leases in existence prior to the effective date of this chapter, the lease rate shall be determined as provided in the lease. (c} Under this section, when determining the fair market value of the premises of an existing lease, an appraiser shall appraise the property (1) in its condition as of the inception of the lease; (2) plus any improvements or amenities suhsequently provided by the City; but Ordinance 2180-2006 SUBSTITUTE Attachment A Page 13 of 27 (3) excluding any improvements or amenities provided by the City under 21.10.110, if lessee has reimbursed the City, or entered into an agreement to reimburse the City, far the cost of the improvements or amenities. 21.10.110 Reimbursement for city-constructed improvementse (a) The City Manager may include in a lease a requirement for the lessee to reimburse the City for the City's cost of: (1) land clearing, gravel fill, utility extensions and other improvements or amenities on or in direct connection with the premises, constructed by the City prior to the effective date of the lease;or (2) land clearing, gravel fill, utility extensions and other improvements or amenities on or in direct connection with the premises, which the City agrees to construct as a condition of the lease, subject to City Council approval. (b} The L.essee shall reimburse the City for the City's cost of constructing the improvements in ten (10) equal annual payments, plus interest at eight percent (8%) per yeaz on the unpaid balance. If the lease is for less than ten vears, the re-payment schedule mav not be loneer than the term of the lease. The Lessee may pay the entire remaining balance to the City at any time during the term of the lease. 21.10.120 Lease utilization. Leased lands shall be utilized for purposes within the scope of the application, the terms of the lease and in conformity with the ordinances of the City, and in substantial confornuty with the Comprehensive Plan and Airport Master Pian. Utilization or development for other than the allowed uses shall wnstitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan for the land shall constitute grounds for cancellation. 21.10.130 Bidding peocedure. With the approval of the City Council, the City Manager may designate a specific tot or lots to be leased through competitive sealed bid. In a sealed bid offering, the City Manager shail award the lease to the qualified bidder that offers the highest one-time premium payment, in addidon to the lease rent established under this chapter. Provided however, that high bidder and the bidder's lease proposal shall be subject to all provisions of lease application review and approval under this chapter. 21.10.140 Lease execution. When issuing a lease to an applicant, the City Manager shall hand deliver or mail the document to the applicant. The applicant shall have thirty (30) days from the date on which the lease is hand delivered to the applicant or deposited in the U.S. mail within which to execute and return the lease to the City Manager. If the applicant shows good cause to the City Manager, and the Manager determines the action is not inconsistent with the City's best interest, the Manager will grant an extension not exceeding thirty (30) days for the applicant to execute and return the lease. Upon the failure of the applicank to timely execute and retum the lease agreement, the City Manager shali withdraw the offer of the lease in writing. Ordinance 2180-2006 SUBSTITUTE Attachment A Page 14 of 27 21.10.150 Form oflease. (a) When ieasing land under this chapter, the City Manager shall use a standard lease form that is: (1) drafted to (i) provide a reasonable basis for the lessee's use of the premises; (ii) foster the safe, effective, and efPieient operation of Che airport; (iii) conform with the applicable requirements of the KMC, including this chapter, Alaska statutes, Federal Aviation Administration regulations, and other applicable federal law; and (iv) provide for the best interest of the City. (2) approved as to form by Che CiCy ACtorney; and (3) adopted by resolution of the City Council. (b) The City Manager may enter into a land lease that deviates from the standard form adopted under (a) of this section, if (1) the Manager believes the action is in the best interest of the City; (2) the lease is approved as to form by the City Attomey; and (3) the lease is approved by resolution of the City Council. 21.10.160 Re-evaluation of rent. (a) [AT INTERVALS OF NOT L.ESS THAN] Be~inning in 2007 and ever~ five (5) years [OR AT SUCH OTHER TIME AS MAY BE SPECffTED IN A LEASE EXECUTED BEFORE THE EFFECTIVE DAT'E OF THE ENACTMENT OF THIS SECTION] thereafter, the City Manager shall increase or decrease the rent chazged in the lease to the amount determined under 21.10.100. (b) The City Manager shall change the rent in a lease by giving the lessee written notice at least thirty (30) days in advance of the effective date of the change. (c) The "Fair Market Value" of the Premises shall be equal to the then-fair mazket rate for similar commercial property in the City of Kenai, Alaska (the "Relevant Area"). City shall give notice to I.essee of City's estimation of the Fair Market Value not later than thirty (30) days prior to the expiration of the then-applicable five-yeaz period, as evidenced and supported by the [WRITTEN OPIlVION OF] zone-base square foot lease rate appraisal done under KMC 21.10.100(a) [A REAL ESTATE APPRAISER CERTIFIED UNDER ALASKA STATUTE 8.87, SELECTED AND PAID FOR BY THE CITY, FAMII.IAR WITH THE RELEVANT AREA AND WHO WOULD QUAI.IFY AS AN EXPERT WITNESS (THE "FII2ST APPRAISER")1. If Lessee disagrees with such estimate, it shall advise the City in writing thereof within thirty (30) days of I.essee's receipt of such estimate, as evidenced and supported by the written opinion of a real estate appraiser certified under Alaska Statute 8.87 with experience in appraising airport property (selected and paid for by L.essee) Pamiliaz with the Relevant Area [AND WHO WOULD QUALIFY AS AN EXPERT WITNESS] (the "Second Appraiser"). The parties shall promptly meet to attempt to resoive their differences between the First Appraiser and the Second Appraiser concerning the Fair Market Value of the Premises. If City and L.essee cannot agree upon such value then, with all deliberate speed, they shall direct the First Appraiser and the Second Appraiser to expeditiously and mutually select a third qualified real estate appraiser [QUALII~IED] certified under Alaska Statute 8.87 with experience in appraisin airport propertv (selected and paid for jointly by the parties) familiar with the Relevant Area (the `"Third Appraiser"). Within thirty (30) days after the Third Appraiser has Ordinance 2180-2006 SUBSTITUTE Attachment A Page 15 of 27 been appointed, the Third Appraiser shall decide which of the two respective appraisals from the First Appraiser and the Second Appraiser most closely reflects the Fair Market Value of the Premises. The Fair Market Value of the Premises shall irrebuttably be presumed to be the value contained in such appraisal selected by the Third Appraiser, and the rental shall be redetemuned based on such value. Notwithstanding anything to the contrary herein, rentai shali continue to be paid at the then-applicable rate until any such new rentai rate is established, and L.essee and City shall promptly pay or refund, as the case may be, any variance in the rental, without interest thereon accruing to the extent to pald/refunded in a timely fashion. 21.10.170 Annual minimum rental. ~a) Annual minimum rentals shall be com~uted from the a.pproved aopraised mazket value utilizine the method as described in KMC 21.100 110 and 160 (b) Uoon execution of the lease the lands become taxable to the extent of its leasehold interest and lessee shall pav all real property taxes levied upon such leasehold interest in these lands and shall oav anv special assessments and taxes as if he were the owner of said land (c) Rent shall be oaid annualiv in advance Said pavments shall be ororated to conform to the Citv of Kenai's fiscal ear be innine 7ulv 1 and ending June 30 If the equivalent monthlv pavment exceeds two hundred dollazs ($200) then the lessee shall have the ootion of making pavments on a monthlv basis. {d) I.essee shall be responsible for all sales taxes apnlicable to its operations or due on pavments under the lease. 21.10.180 Use Permits [THE COUNCIL MAY AUTHORIZE TI-IE CITY MANAGER TO GRANT PERMITS F012 TI~ TEMI'ORARY USE OF REAL PROPERTY OWNED BY THE CPPY FOR A PERIOD NOT TO EXCEED ONE (1) YEAR, WiTHOUT APPRAISAL OF THE VALUE OF THE PROPERTY OR COMI'ETITIVE PROCESS, FOR ANY PURPOSE COMPATIBLE WTI'H THE ZONING OF THE LAND, AND ON SUCH TERMS AND FOR SUCH RENTALS AS TI-IE COtTNCIL SHALL DETERMIlVE]. Subiect to the approval bv the Citv Councii of the terms and rent. the Citv Manaeer may without subiectine the nropertv to apqraisal or competitive process ~rant a pernut for the temnorary use of real propertv owned bv the City for a~eriod not to exceed one (1) year and for any_purpose not in conflict with the zonine of the land. 21.10.190 Acquisition of Real Property (a) The city, by authorization of the city council, expressed in a resolution for such purpose, may purchase or acquire an interest in, lease or real property needed for a public use within the airport reserve on such terms and conditions as the council shall determine, but no purchase shall be made until a qualified appraiser has appraised the property and given the council an independent opinion as to the full and true value thereof; (b) Because of the unique value of real property, the city need not acquire or lease real property by competitive bidding. Ordinance 2180-2006 SUBSTITUTE Attachment A Page 16 of 27 Chapter 21.15 LEASE AND SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE Sections: 21.15.010 Airport land outside of the Airport Reserve. 21.15.020 Qualifications of applicants or bidders. 21.15.030 Applications. 21.15.040 Filing fee and deposit. 21.15.050 Rights prior to leasing. 21.15.060 Processing procedure. 21.15.070 Review. 21.15.080 Appraisal. 21.15.090 Terms of lease. 21.15.100 Annual minimum rental. 21.15.110 Bidding procedure. 21.15.120 ~rinciples and policy of lease rates. 21.15.130 Reimbursement for city-constructed improvements. 21.15.140 Lease execution. 21.15.150 Lease utilization. 21.15.160 Form of lease. 21.15.170 Conveyance to encourage new enterprises. 21.15.180 Sale. 21.15.190 Sale procedure. 21.15.200 Terms for financing sale of City tands. 21.15.210 Determination as to need for publ'ac use. 21.15.220 Property exchanges. 21.15.230 Property sale to adjacent owners. 21.15.240 Grant or devotion. 21.15.250 Use permits. 21.15.260 Acquisition of real property. 21.15.010 Airport land outside of the Airport Reserve. (a) This chapter applies to airport land outside of the Airport Reserve. (b) The City may sell, convey, exchange, transfer, donate, dedicate, direct, or assign to use, or otherwise dispose of aitport land outside of the Airport Reserve, including property acquired, held for, or devoted to a public use, in accordance with this chapter. Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands aze not required by the City for a public purpose. (c) The City may lease, sell or dispose of real property by warranty or quit-claim deed, easement, grant, pernut, license, deed of trust, mortgage, contract for sale of reai property, plat dedication, lease, or any other lawful method or mode of conveyance or grant. Any instrument requiring execution by the City shail be signed by the City Manager and attested by the City Clerk. T'he form of any instrument shall be approved by the City Attorney. Ordinance 2180-2006 SUBSTITIITE Attachment A Page 17 of 27 (d) The provisions of this chapter shall not alter or amend the terms or rights granted under leases existing prior to the effective date of this chapter. (e) Pending lease applications for airport land filed prior to the effective date of this [CHAPTER] ordinance shall [COME] be processed and issued under the [CURRENTLY EXISTING] provisions of KMC 21 [.10-20] and KMC 22 in existence immediatelv prior to the effective date of this ordinance. Otherwise the provisions of this chapter shall apply. 21.15.020 Qualifications of applicants or bidders. An applicant or bidder for a lease is qualified if the applicant or bidder: (a) Is an individual at least eighteen (18) yeazs of age or over; or (b) Is a group, association, or cotporation which is authorized to conduct business under the laws of Alaska; or (c) Is acting as an agent for another and has qualified by filing with the City Manager a proper power of attorney or a letter of authorization creating such agency. The agent shall represent only (1) one principal to the exclusion of himself. The term "agent" includes real estate brokers and agents. 21.15.030 Apptieations. (a) All applications for lease of lands shail be filed with the City Manager on forms provided by the City available at City Hall. Applications shail be dated on receipt and payment of filing fee and deposit. No application will be accepted by the City Manager unless it appears to the City Manager to be complete. Filing fees are not refundabie. (b) With every application, the appiicant shall submit a development plan, showing and stating: (1) The purpose of the proposed lease; ~ (2) The use, value and nature of improvements to be constructed; (3) The type of construction; (4) The dates construction is estimated to commence and be completed (ordinarilv a ma~cimum of two (2) years); and (5) Whether intended use complies with the zoning ordinance and comprehensive plan of the City. Applications shall become a part of the lease. 21.15.040 Filing fee and deposi~ (a) When submitting an appiication for lease of land, the applicant shail (1) pay a non-refundable filing fee in the amount of one hundred dollars ($100.00); and (2) make a deposit to show good faith and secure the City in payment of any costs in the following amounts: (i) an appraisal cost recovery deposit of two thousand dollazs ($2,000.00); and (ii) an engineering, surveying and consulting cost recovery deposit of two thousand dollars ($2,000.00). (b) If the City decides to reject the applicanYs application and not enter into a lease with the applicant through no fauit of the appiicant or failure of the applicant to comply with any requirement of this chapter, any deposit made under (a)(2) of this section wiil be returned to the applicant. (c) If the City enters into a lease with the applicant any deposit made by the applicant under (a)(2) of this section will be applied to the City's engineering, appraisal, and consulting costs related to the processing of the applicanYs application and entering into the lease. The City will Ordinance 2180-2006 SUBSTITUTE Attachment A Page 18 of 27 apply any unused balance of a deposit to the rent payable under the lease. If the City's costs exceed the amount of any deposit, the applicant shall pay the shortage to the City as a condition of the lease. (d) If the applicant fails Co comply with any requirement of this chapter, causes inordinate delay, as deternuned by the City Manager, or refuses to sign a lease offered to the applicant, the City Manager will reject the applicanYs application and apply any deposit made by the appl'rcant under (a) of this section to the City's appraisal, engineering, and consulting costs incuned in connection with the applicant's application. If the City's costs for appraisal, engineering and consulting costs exceed the deposits, the applicant will be responsible for these costs. The City will retum any unused deposit balance to the applicant. 21.15.050 Rights prior to leasing. The filing of an application for a lease shall give the applicant no right to lease or to the use of the land for which they have applied. The application shall expire within twelve (12) months after the application has been made if a lease has not been entered into between the City and the applicant by that time unless the City Council for good cause grants an extension. No extension may be granted for a period longer than six (6) additional months. L.ease rates are subject to change on the basis of an appraisal done every twelve (12) months on the property applied for. 21.15.060 Processing procedure. (a) Applications shall be forwazded to the Planning and Zoning Commission upon receipt. The Pianning and Zoning Commission shall normally consider applications for specific lands on a first-come, first-served basis if the Commission finds that the application is complete and conforms to the comprehensive plan and the Kenai Zoning Code. Where there is difficulty in obtaining a perfected application, details as to development plans, etc., or where [he appiicant fails to compiy with directions or requests of the Planning and Zoning Commission, any such priority will be lost. If an application for the purchase of City-owned lands, previously authorized for sale by the Council, is received by the City prior to the Kenai Planning and Zoning Commission making an affirmative or negative recommendation to the Council regarding the lease application for the same property, the City may elect to sell said property in accordance with the provisions of the Code. (b) The City Council shall normally consider a lease proposai only after approval of the Pianning and Zoning Commission. However, appeais of Planning and Zoning Commission disapproval may be made to the City Council. Completed lease applications must be presented to the City Council within thirty (30) days after approval by the Planning and Zoning Commission. (c) Where there are two (2) or more applications for the same airport lands for different uses, then if the Planning and Zoning Commission makes a finding that a subsequent application would result in use of the lands for a higher and better purpose with a greater benefit to the City of Kenai and the citizens thereof, then the lease will be issued to such applicant notwithstanding the provisions of subparagraph (a) in this section which provide for leasing on a first-come, first- served basis. Any applicant may appeal to the City Council from a finding or a refusal to find by the Planning and Zoning Commission by filing an appeal with the City Clerk within seven (7) days after the finding is made or refused by the Planning and Zoning Commission. (d) The decision whether or not to lease land rests in the sole discretion of ihe City Council. Ordinance 2180-2006 SUBSTTTUTE Attachment A Page 19 of 27 21.15.070 Review. No leased land may be changed in use, nor may any renewal lease be issued until the proposed use or renewal has been reviewed by the Planning Commission and approved by the Council. 21.15.080 Appraisai. No land shall be s~ leased, or a renewal of lease issued, unless the same has been appraised within a twelve (12) month period prior to the sale or date fixed for beginning of the term of the lease or renewal lease. No land shall be leased for less than the approved appraised annual rental. Appraisais shall reflect the number and value of City services rendered the land in question. 21.15.090 Terms of lease. All leases shall be approved by the City Council before the same shall become effective. The term of any given lease shall depend upon the durability of the proposed use, the amount of investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. 21.15.100 Annual mfnimum eental. (a) Annual minimum rentals shall be computed from the approved appraised market value utilizing the method as described in KMC 21.15.120 below. (b) Upon execution of the lease, the lands become taxable to the extent of its leasehold interest and lessee shall pay all real property taxes levied upon such teasehold interest in these lands, and shall pay any special assessments and taxes as if he were the owner of said land. (c) Rent shall be paid annually in advance. Said payments shall be prorated to conform to the City of Kenai's fiscal yeaz beginning July 1 and endang June 30. If the equivalent monthly payment exceeds two hundred dollazs ($200.00), then the lessee shali have the option of making payments on a monthly basis. (d) L.essee shall be responsible for all sales ta~ces applicable to its operations. 21.15.110 Bidding procedure. As an exception to general policy listed above, the City Council may designate a specific lot or lots to be made available only for bid. This provision shall apply oniy when there is no outstanding application pending on the lot or lots. As designated, sealed bids shall be received offering a one-time premium in addition to the established lease rate. Highest bid, however, shall be subject to all provisions of review and approval established for all other lease applications. 21.15.120 Principles and polisy of lease rates. (a) A fair return to the Airport System is mandated by the terms and conditions of the quitclaim deed and appropriate deeds of release, granting these lands to the Airport System by the Federal Government. To ensure a fair retum, all leases for a period in excess of five (5) years shall include a redeternunation clause as of the fifth anniversary, and all lands for lease shall be appraised prior to lease and again prior to redeternunation. I.ease rates (I) Shall be based on fair market value of the land, including an appropriate consideration of facilities and services available (public water, public sewer, storm sewers, and other public Ordinance 2180-2006 SUBSTITUTE Attachm~nt A Page 2 , of 27 utilities) as determined by a qualified independent appraiser, considering the best use of the specified land; and, (2) Shall be eight percent (8 %) of fair mazket value. (b) For leases in existence prior to the effective date of this chapter, the lease rate redetermination shall be as provided in the lease. (c) The City Manager shall change the rent in a lease by giving the lessee written notice at least thirty (30) days in advance of the effective date of the change. (d) The "Fair Market Value" of the Premises shali be equal to the then-fair mazket rate for similar commercial property in the City of Kenai, Alaska (the "Relevant Area"). City shaii give notice to Lessee of City's estimation of the Fair Market Value not later than thirty (30) days prior to the expiradon of the then-applicable five-year period, as evidenced and supported by the written opinion of an independent real estate appraiser certified under Alaska Statute 8.8'I, selected and paid for by the City, familiar with the Relevant Area [AND WHO WOULD QUALIFY AS AN EXPERT WITNESS] (the "First Appraiser"). If L,essee disagrees with such estimate, it shall advise the City in writing thereof within thirty (30) days of L.essee's receipt of such estimate, as evidenced and supported by the written opinion of a real estate appraiser certified under Alaska Statute 8.87 (selected and paid for by Lessee) familiar with the Relevant Area [AND WHO WOiJLD QUALIFY AS AN EXPERT WI'I'NESS] (the "Second Appraiser"). The parties shall promptly meet to attempt to resolve their differences between the First Appraiser and the Second Appraiser concerning the Fair Mazket Value of the Premises. If City and I.essee cannot agree upon such value then, with all deliberate speed, they shall direct the First Appraiser and the Second Appraiser to expeditiously and mutually select a third real estate appraiser certified under Alaska Statute 8.87 (selected and paid for jointly by the parties) familiar with the Relevant Area (the "Third Appraiser"). Within thirty (30) days after the Third Appraiser has been appointed, the Third Appraiser shall decide which of the two respective appraisals from the First Appraiser and the Second Appraiser most closely reflects the Fair Market Value of the Premises. The Fair Market Vatue of the Premises shall irrebuttabiy be presumed to be the value contained in such appraisal selected by the Third Appraiser, and the rental shall be redetermined based on such value. Notwithstanding anything to the contrary herein, rental shall continue to be paid at the then-applicable rate until any such new rental rate is established, and I.essee and City shail promptly pay or refund, as the case may be, any variance in the rental, without interest thereon accruing to the extent to paid(refunded in a timely fashion. 21.15.130 Reimbursement for city-constructed improvements. (a) The City Manager may include in a lease a requirement for the lessee to reimburse the City for the City's cost of (1) land clearing, gravel fill, utility extensions and other improvements or amenities on or in direct connec6on with the premises, constructed by the City prior to the effective date of the lease; or (2) land clearing, gravel fill, ucility extensions and other improvements or amenities on or in direct connection with the premises, which the City agrees to construct as a condition of the lease, subject to City Councii approval. (b) The I.essee shall reimburse the City for the City's cost of constructing the improvements zn ten (10) equat annual payments, plus interest at eight percent (8%} per yeaz on the unpaid balance. If the lease is for less than ten (101 vears, the re~avment schedule mav not be longer Ordinance 2180-2006 SUBSTITUTE Attachment A Page 21 of 27 than the term of the lease. The L.essee may pay the entire remaining balance to the City at any time during the term of the lease. 21.15.140 Lease execution. The tease applicant shall execute and retum the appropriate lease agreement with the City of Kenai within thirty (30) days of mailing the agreement to said applicant. The lease agreement shall be prepared in accordance with the requirements of this title. Failure to execute and return the lease agreement within the specified period shall result in the forfeiture of all leasing rights. 21.15.150 Lease utilization. L,eased lands shall be utilized for purposes within the [SCOPE OF THE APPI.ICATION, THE] terms of the lease and in conformity with the ordinances of the City, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan for the land, cons'rstent with the proposed use and terms of the lease, shall constitute grounds for cancellation. 21.15.160 Form oflease. (a) When leasing land under this chapter, the City Manager shall use a standazd lease form that is (1) drafted to (i) provide a reasonable basis for the lessee's use of the premises; (ii) foster the safe, effective, and efficient operation of the airport; (iii) conform with the applicable requirements of the KMC, including this chapter, Alaska . statutes, Federal Aviation Administration regulations, and other applicable federai law; and (iv) provide for the best interest of the City. (2) approved as to form by the City Attorney; and (3} adopted by resolution of the City Council. (b) The City Manager may enter into a land lease that deviates from the standard form adopted under (a) of this section, if (1) the Manager believes the action is in the best interest of the City; and (2) the lease is approved as to form by the City Attorney; and (3) the lease is approved by resolution of the City Council. 21.15.170 Canveyance to encourage new enterprises. (a) Notwithstanding any other provisions of this chapter, where it is found that encouragement of a new commercial or industrial [OR NON-PROFIT] enterprise would [INCREASE THE ECONOMIC STABILITY OF THE CITY OF KENAI AND WOULD~ be beneficial to the City of Kenai, the City Council by [RESOLUTION] ordinance so finding may direct conveyance of one or more parcels of City land by the City Manager to such enterprise upon such terms as to price, conditions of conveyance9 and with such contingencies as may be set forth in said [RESOLI7TION] ordinance. (b) In the event the land directed to be conveyed under subsection (a) above consists in part nr in whole of airport lands, then the [RESOLLJTION] ordinance ordering its conveyance wili not be effective until the City Council by [RESOLLTITON] ordinance has appropriated from the general Ordinance 2180-2006 SUBSTITUTE Attachment A Page 22 of 2,7 fund to be dedicated to the airport the difference between the appraised fair mazket value of said airport lands and the purchase price, if any, set forth in said [RESOLIJ`!'ION] ordinance. 21.15.180 Sale. (a) Airpor[ land outside the airport reserve to which the City of Kenai hoids title which are not restricted from sale by the Deed of Conveyance to the City, or which have been released from such restrictions, which the City Council has determined are not required for a public purpose, may be listed for sale by the City Manager, except that lands which have been leased shall not be sold unless the Lessee has made a written request to the City to place the land for sale. The decision whether or not to sell the land rests in the sole discretion of the City. (b) Sales of land pursuant to subsection (a) above shall be made at not less than fair mazket value. The purchaser shall execute the "Agreement For Sale of Land" within [SIX MONTFIS] one (1) ,~ of the date of appraisal. The City Manager has the option to dispose of such properties in accordance with the sale procedures set out in this Title: (1) By negotiated sale; or (2) By outcry auction to the highest responsible bidder; or (3) By competitive sealed bids to the highest responsible bidder. In the event that the sale is not closed within [SIX MONTHS] one (1) ~ of the date of appraisal, the buyer will be charged, upon closing, interest computed in accordance with the appiicabie provisions of the Kenai Municipal Code, based upon the total sales price for the number of days past the expiration of the six-month period. 21.15.190 Sale procedure. (a) The City Manager will obtain such an appraisal for a determination of the minimum price on said land. (b) Where any party, hereinafter called "Appiicant," requests that a tract or tracts of land be sold for which an appraisal will be required, which wili require subdividing, platting, or surveying and staking, or which will require advertising or incurring any other expenditures by the City prior to sale, (1) No actions in prepazation for sale will be taken by the City until an agreement to purchase shall be properly executed and filed with the City Manager for the purchase of such land with payment of sufficient good faith deposit, which shall consist of cash or its equivalent deposited with the Finance Officer of the City of Kenai, as may be determined by the City Manager, to cover all expenses of the City and such agreement to purchase shall further contain the agreement by applicant to pay any additional costs if said good faith deposit is insufficient to pay all costs incnrred by the City. (2) If at any time during the process of preparing for sale, the applicant gives notice to the City Manager of withdrawal of the request for sale, the City Manager shall stop all procedures, shali pay expenses incurred prior to termination of sale procedures, and shall reimburse applicant for any good faith deposit advanced in excess of all expenses incurred. (Fiowever, if another party desires the sale to proceed, files an appiication for sale, executes and files an agreement to purchase, and advances sufficient funds therefore, then the prior applicant will be reimbursed for expenses chazges which can be attributed to the subsequent applicant.) Ordinance 2180-2006 SUBSTITUTE Attachment A Page 23 of 27 (3) If all actions necessary for preparation for sale have been accomplished, and if neither Che applicant nor any other party purchases said land when first offered for sale after such request, then all expenses incurred in preparation for the sale will be paid from the good-faith deposit, and the balance, if any, shall be returned to the applicant. If the sums advanced as good faith deposit aze insufficient to pay all of the costs, the applicant will be billed for the balance due and normal collection procedures followed. (4) If the land applied for is sotd on public sale set in response to such request to anyone other than applicant, then on closing of said sale, the good-faith deposit will be refunded in total to the applicant. The City's expenses will be first deducted from the deposit of the successful bidder. (5) If the land in question is sold to applicant, the good-faith deposit advanced, after deducting the City's expenses, will be appfied on the payment due at closing. (6) If the land in question is to be sold by sealed bid and the applicant has submitted a valid bid, but said applicant is not the high bidder, he may purchase the land by tendering the City a bid equal to the high bid within five days of the bid opening. If the land sale is initiated in accordance with KMC 21.15.060(a), the applicant shall be defined as that party submitting the initial lease application. (c) If the tract of land proposed to be sold is leased land, the lessee may request the sale of said land at not less than the fair market value. The current lessee may request to negotiate a sale only after, to the satisfaction of the City Manager, development has been completed as detailed in the development schedule which has been incorporated into the lease agreement. If there is no development schedule, the lessee may request to purchase the property if there have been substantial improvements as deternuned by the City Manager. The decision whether or not to sell the land to the lessee rests in the sole discretion of the City. (d) If the tract of land proposed to be sold is not leased land, or is leased land without substantial Smprovements, then the tract of land may only be sold by outery auction or by competitive sealed bids. The decision whether or not to sell the land rests in the sole discretion of the City. If the tract is to be put up for such competitive auction or sealed bid sale, notice of sale and the manner in which the land is to be sold shall be published in a newspaper of general circulation within the City once each week for two successive weeks not less than 30 days prior to the date of sale; such no[ice shall also be posted in at least three public places within the City at least 30 days prior to the date of sale, and such other notice may be given by such other means as may be considered advisable by the City Manager. Such notice must contain: (1) the legai description of the land, (2) a brief physical description of the land, (3) the area and general location of the land, (4) the minimum acceptable offer for the land (which shall be its appraised fair market value), (5) the terrns under which the land will be sold, (6) any limitations on the sale of said land, (7) the time and place set for the auction or bid opening, (8) the amount of deposit to be submitted with each bid in order to cover the City's expenses such as survey, appraisal, and reviews, (9) any other matters conceming the sale of which the City Manager believes the public should be informed. Ordinance 2180-2006 SUSSTTTiJTE Attachment A Page 24 of 27 (e) Where a real estate agent furnishes a buyer for City land, the closing agent shall be authorized to pay said agent a real estate commission of five percent (5%) of the purchase price for the land or five percent (5%) of the appraised fair market value of the land, whichever is lower, under the following terms and conditions: (1) The City Manager shall provide a non-exclasive listing of lands available for sale. (2) No commission shall be paid to an agent where said agent is a party, or in privity with a party, to said sale. (~ Ciosing of sale of City lands shali be handled by a title or escrow company within the city which specializes in closing of real estate sales. (g) Conveyance of City lands shall be by quit claim or warranty deed furnished by the City, and buyers are advised that all such conveyances aze subject to all liens, encumbrances, restrictions, and covenants of record and aze specifically, without being limited thereto, subject to any unreleased restrictions contained in the deed or deeds by which the City received title to the land. The deed shall be signed by the City Manager and attested by the Ciry Clerk. The form of the deed shall be approved by the City Attorney. (h) If a buyer desires to obtain a preliminary commitment for ti[le insurance or title insurance to the land, then it shall be the responsibility of the buyer to obtain such commitment or insurance and to pay for the same. (i) If the tract or tracts of land aze sold under terms by which the City is to accept a note as a portion of the purchase price, the note and accompanying deed of trust must be prepared by an attorney, but must be approved by the City Attorney prior to closing. (j) Said note shall be placed for coliection with a bank selected by the City Manager, which may ' be changed from time to time, and which shall be the bank in which City funds are deposited. The set-up fee to initiate collection may be negotiated, and the buyer shall pay the annual collection fees for such bank collection. (k) To enable the City to compete on an equal basis with private enterprise in lands disposal, the City Manager is hereby authorized [o negotiate a division of the costs of sale listed in KMC 21.15.190(~(g)(h)(i) and (j) to a ma~cimum of fifty percent (50%) of the required costs being borne by the City. 21.15.200 Terms for financing sale of City lands. (a} In order to expedite and facilitate the sale of City lands, the City Manager is hereby authorized to accept terms for said sales and may accept a note secured by a deed of trust for a portion of the purchase price thereof, subject to the following restrictions: (1) If the sale is to a lessee who has placed a lien for financing upon the land or improvements, then the City Manager is not authorized to sell the land except for total cash payment, provided, however, that the City Manager may accept a note secured by a deed of trust subordinate to the existing security interest if the amount of the note thereby secured is within the difference between the fair market value of the land with improvements, and the sum of all prior security interests. The sale documents shall be subject to the same restrictions contained in the lease as the lease provides at the time of sale. (2) Prior to making a determination to accept a note and deed of trust from a prospective purchaser, the City Manager shatl secure a preliminary commitment for title insurance (at purchaser's expense) and a review of the grantee index covering the party desiring to purchase the land from the title company in the local recording district, and no credit will be advanced on such sale if there aze any delinquent liens or unpaid judgments found in the title Ordinance 2180-2006 SUBSTITUTE Attachment A Page 25 of 2'1 company report untll any such judgments or liens are paid and releases therefore have been filed. (3) In the event of a credit sale, the down payment required shall be deternuned by the City Manager, but shall not be less than fifteen percent (15%) of the sales price. (b) If the City Manager determines that it is in the City's interest to sell City lands, the sale shall be either a cash transaction or by a note secured by a deed of trust, subject to pazagraph (a) above, and by no other means. The note and deed of trust shall carry terms as follows: (1) The term of such note may be set by the City Manager, but is shall provide for monthly payments and not exceed twenty (20) years unless a longer period for a specific sale of land is approved by resolution of the City Council. (2) Such note shall beaz interest at a rate to be deternuned by the City Council by resolution. 21.15.210 Determination as to need for public use. (a) Whether land shall be acquired, retained, devoted, or dedicated to a public use shall be determined by ordinance which shall contain the pubtic use for which said property is to be dedicated, the legal description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location. (b) Whether tand previously dedicated to a publlc use should be dedicated to a different public use or should no longer be needed by the City for public use shall be determined by the City Council by ordinance which shall contain the new public use for which said property is to be dedicated or the reason the land is no longer needed for public use, the legal description of the property, and the address or a general description of the property sufficient to prov'rde the public with notice of its location. 21.15.220 Peoperty exchanges. The Council may approve, by resolution, after public notice and an opportunity for public hearing, the conveyance and exchange of a parcel of City property for property owned by another person subject to such conditions as Council may impose on the exchange, whenever in the judgment of the City Councit it is advantageous to the City to make the property exchange and the City shall receive property (including a portion of money) at least equivalent to the value of the property exchanged by the City. 21a15.230 Property sale to adjasent owners. The council may approve, by resolution, after public notice and an opportunity for public hearing, the sale and conveyance of a parcel of City property at its appraised value to the owner of adjacent land whenever, in the judgment of the City Council, the pazcel of land is of such small size, shape, or location that it could not be put to practical use by any other party and, in addition thereto, where there is no foreseeable need of the land for any future use by the City. 21.15.240 Grant or devotion. (a) The Council, by ordinance, may lease, grant or devote real property no (onger needed by the City for a public purpose to the United States, the State of Alaska, a locat political subdivision of the State of Alaska (including the City of Kenai general fund), or any agency of any of these governments or non-profit corporation, for a consideration agreed upon between the City and grantee without a public sale if the grant or devotion is advantageous to the City. Ordinance 2180-2006 SUBSTITUTE Attachment A Page 26 of 27 (b) In the event the land directed to be conveyed under subsecYion (a) above consists in part or in whole of airport lands, then the ordinance ordering its conveyance will not be effective until the City Council by ordinance has appropriated from the general fund to be dedicated to the airport the difference between the appraised fair mazket value of said airport lands and the purchase price, if any, set forth in said resolution. 21.15.250 Use permits. The council may authorize the city manager to grant permits for the temporary use of real property owned by the city for a period not to exceed one (1) year, without appraisal of the value of the property or public auction, for any purpose compatible with the zoning of the land, and on such terms and for such rentals as the council shall determine. 21.15.260 Acquisition of Real Property (a) The city, by authorization of the city council, expressed in a resolution for such putpose, may purchase or acquire an interest in, lease or real property needed for a public use within the airport reserve on such terms and conditions as the council shall determine, but no purchase shall be made until a qualified appraiser has appraised the property and given the council an independent opinion as to the full and Crue value thereof; (b) Because of the unique value of real property, the city need not acquire or lease real property by competitive bidding. Ordinance 2180-2006 SUBSTITUTE Attachment A Page 27 of 27 KMC 21.05.020 AIRPORT RESERVE BOUNDARY MAP APPENDIX I r ~ i I ~ ~ 'r~ l(~~'E d~'G ~f l a~'GZ~~ CiG ~ t~lll ~dl ~~Gt~LIY'G rr 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ~,~.w.~„ Telephone: 907-283-7535 / FAX: 907-283-3014 ,'~~Ir 1992 ~ s To: C9tg/ COl1Y8C9~ Airport Commission Kenai Economic Development Strategy Group (14EDS) ROM: Riek Koch, City Manager ~ATE: August, 23, 2006 SU~JECl°: Kenai Municipal ,4irport Reserve ~oundasy (Proposed) The purpose ofthis memorandum is to discuss the above referenced subject and to submit for your review the following: EXHIBIT 1. Airport Reserve Boundary as recommended by the Kenai Economic DevelopmenY Strategy (KEDS) Group. 2. An aerial photograph of the Kenai Municipal Airport showing the Administration's proposed airport reserve Uoundary (heavy blue line}, and the boundary proposed by the Airport Commission (heavy black line where it differs from Administration's recommendation). 3. Using the Administration's proposed airport reserve boundary, a diagram of possible future commercial aviation lease lots and relocation of Marathon Road. 4. Using the Airport Commission's proposed boundary, a diagram of possible future commercial aviation lease loYs and relocation of Marathon Road, as shown in draft supplemental planning assessment by DOWL Engineers. 5. Proposed Airport Reserve Boundary shown in dra8 supplemental planning assessment by DOWL Engineers. 6. Property Status shown in dra$ supplemental planning assessment by DOWL Engineers. Page 2 Memo to Council, Airport Commission & KEDS August 23, 2006 The airport reserve as delineated in the substitute ordinance (to be presented at the September 6, 2006 Council meeting) is the administration's proposed alternative, as shown on exhibit 2. This alternative provides adequate areas for both lease lots to support airport and non-airport operations, and an area outside the airport reserve in which property could be sold, given both FAA and Kenai City Council approvals. It was my intent to assist in the creation of a consensusxegarding the airport reserve boundary. To that end, on July 13, 2006 a joint work-session was held, attended by the Airport Commission, the Planning and Zoning Commission, the KEDS Group, and the city manager. At Che conclusion of Chat meeting I left with the undersCanding that an airport reserve boundary was agreed upon by those in attendance. That boundary is what is contained in the substitute ordinance. On August 10`h the Airport Commission met and passed a motion proposing an airport reserve boundary that differed from what was discussed at the joint work-session of July 13`h. This modification to the Administration's proposed boundary is also shown on exhibit 2. The effect of this modification to the Administration's recommendation is to place approximatety 43 additional acres of property within the airport reserve. It also limits development opportunities along Marathon Road near a growing retaiUbusiness area. On August 21 S` I met with the Airport Commission and asked them to again discuss the aiiport reserve boundary and to re-consider the Administration's recommendation. After prolonged discussion, a motion was made and seconded to accept the Adrninistration's proposed airport reserved boundary. The motion failed to pass by a 3-3 vote. In support of the Administration's recommended aiiport reserve boundary, I believe the foilowing to be importanC: L The boundary provides development opportunities for both airport and non- airport related business and industry when land ownership versus leasing is a critical issue. 2. The boundary provides an equivalent land area (+/- 136 acres) for future commercial airport lease lots (exhibit 3), as is provided for in the DOWL draft supplemental planning assessment (exhibit 4). Page 3 Memo to Cauncil, Airport Commission & KE13S August 23, 2006 3. During discussions with the Airport Commission regarding the Administration's proposed commercial lease lot configuraYion, the question was raised whether it would encompass a greater area of wetlands than the consultanC's commercial lease lot configurafion. The Administration's proposed configuration would encompass a greater area of wetlands, though not a significant amount. From aerial photography, it appears that 3-5 acres of additional wetlands may be impacted. 4. Having land available for both lease and purchase will enable the City Council to consider a wider range of development opportuniYies, if found to be in the best interest o£ the Airport, subsequent to a deed release being granted by the FAA. 5. The 16-acre tract that fronts the west side of Marathon Road, immediately to the north of the State of Alaska Youth Detention Facility, has had the deed restriction lified by FAA. The Airport Commission's proposed airport reserve boundary would encompass 12 acres of this tract, limiting its use to lease only. In order for property leasing to be the only acceptable altemative to purchase for non- airport use, the properties in question must be significantly different in character and/or opportunity than other available properties in the area. To try and gauge future demand it is imperative that past and present use/demand be defined. The following is a table showing the present leasing program at the Kenai Municipal Airport: Lease T e Number of Leases Acreage of Leases Average Acreage of Leases Acreage of Largest Lease Aviation 20 19.01 0.95 3.60 Non-Aviation 27 23.74 0.88 2.04 Totals 47 42.75 Page 4 Memo to Council, Airport Commission & KEDS August 23, 2006 Locations of the lots presently under lease are shown in exhibit 6. Given the present area under lease for aviation purposes, what might be a reasonable growth projection? For purposes of discussion let's look at a projected sustained growth of five percent. Year Acreage 2006 19.01 2011 24.26 2016 30.97 2021 39.52 2026 50.44 2031 6438 2036 82.16 2041 104.86 2046 133.83 I believe that sustained growth of five percent per year in lease area for aviation purposes to be very aggressive, and very likely in excess of what will happen. Nonetheless, after 40 years the projected increase in aviation-use lease space will be 114.82 acres (133.83 acres-19.01 acres) Based on this analysis, the Administration's proposed airport reserve boundary supporting a commercial aviation lease area of approx'smately 136 acres will meet demand far into the future. It is also important to recognize Yhere ue additional lands within the Administration's proposed airport reserve boundary Chat can also be used for additional eomm.ercial aviation, general aviation, and non-aviation leasing. To summuize, the Administration's proposed airport reserve boundary provides the most flexibility for the Airport to best respond to, and take advantage of, future development and business opportunities. Adoption of the Administration's proposed airport reserve boundary does not mean that the Administration will exclude property leasing outside the proposed airport reserve. It simply will allow both leasing and property sale to be alternatives to promote the financial health of the Kenai Municipal Airport. As you are aware, all proceeds from the sale of airport property, either within or outside of the airport reserve boundary, are deposited in the airport trust fund. The interest earned on any money in the trust fund or on land sale contracts goes to the Airport Enterprise Fund, which supports the operation and expansion of the Airport. If you have any questions, I look forward fo speaking with you at your earliest convenience. AttachmenYs - Exhibits 1 through 6 `J~J ~ ~ ~ _ .~, ~ ~ L J ~~N~~/\~ ^ ~ ~~ ` \/ : { ryl I ~~ ~ ~ i I I qy' ~ ~~~~{ I 'Z`~~ ~~ \ G ~ R ~~ ~~ ~ ~~ r } g~ J ~-M \ 4<~_ ~ '~ ~~ ^- ~ ~ ~~ . ~ ~i I ~ I I i ~ ~ ~ ~ ~ ~ J~ D r y ~~ ZO Z ?O 0 :;~ p £5 ~ ~ ~~~.~;: `~~ Dm \ m= >~ ~w \ ~o O -~ \ ~~ ~~ yOD O ~ ~ , ~ ~'~~ '~~,,~ ~I ~ , ~, ,~ ~i m~ ~- ::. ~ ~a ~ € ~; ~~=; ~~oa ; ~~ ~, E ~~ ~ J i ~ ~ ~~ E G: ~ ; I~ I~ ' i ~ Ci ~ r'I~ i ~ ~~ I. 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T An T n T ~" ~ ~' ~ T O s q ~. ~ q C d g z ~a~a`~ W J o,a y m ~ m W 2N ~ W ~ ~m v ti uA a r a m•- ° ~ W v~ tv g~ ' ~ ¢w > 1- JQW G W ma ~ o a 0 az 0 n y 0 n6 . de s ~n o o ° ar~ a C w 2 U Oa CN r Oa` a` a`Z 0 . Q a.~. o W O.i 2C ~ a p a W . . p O N a ~ ~ 6 '~ ' ~ ~ , i ~ ~; N . a~ g ~ ~~~ ~~ ~~°or~~r~~e,~~ ~,~ ,~~ `~ `~ ap~~ /~rair~ KMC 21.05.020 AIRPORT RESERVE BOUNDARY MAP APPENDIX I i - --- I ' i I ' Suggested by: Administr4 CITY OF KENAI NO. 2181-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $20,000 IN THE GENERAL FUND LIBRARY DEPARTMENT FOR A STATE GRANT. WHEREAS, the City of Kenai was awarded a$20,000 grant from the State of Alaska for library books and computers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: State Grants 20 000 Increase Appropriations: Library - Small Tools $8,000 - Books 12,000 _ 00 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of September, 2006. PAT PORTER, MAYOR AT'I'EST: Carol L. Freas, City Clerk Introduced: August 30, 2006 Adopted: September 6, 2006 j Effective: September 6, 2006 Approved by Finance:~ (08/03/2006) hl .. Suggested by: Adminisi CITY OF KENAI NO. 2I82-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $40,000 IN THE GENERAL FUND POLICE DEPARTMENT FOR A STATE GRANT. WHEREAS, the City of Kenai was awarded a$40,000 grant from the State of Alaska for replacement of lockers, benches and seats in the Police Department. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: State Grants $40,000 Increase Appropriations: Police - Repairs and Maintenance $40,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of September, 2006. PAT PORTER, MAYOR ATTEST: Cazol L. Freas, City Clerk Approved by Finance: ~ (08/03/2006) hl Introduced: August 30, 2006 Adopted: September 6, 2006 Effective: September 6, 2006 r~ Suggested by: Administration CYTY OF KENAI ORDINANCE NO. 2183-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING THE EXISTING KMC 7.30 (AdRPORT LAND AND TERMINAL) AND REPLACING IT WITH A NEW KMC 7.30 (AIRPORT LAND SALE PERMANENT FUND). WHEREAS, the City of Kenai has engaged in a 5upplemental Airport Master Plan process to update and modernize the management of the airport and its land system; and, WHEREAS, the existing Airport Land Fund Ternunal ordinances were designed to secure payment of airport bonds which have long since been repaid; and, WHEREAS, the airport consultants have recommended revisions of KMC 7.30 to modernize the financial system of the airport and reflect the payment of the airport bonds; and, WI-IEREAS, the new KMC 7.30 creates an airport permanent fund to ensure that proceeds from airport land and operations are used for the benefit of the Kenai Municipal Airport as required by grant assurances, deed restrictions and federal law; and, WHEREAS, it is in the best interest of the City of Kenai to adopt a new KMC 7.30 entitled "Airport Land Sale Pei•manent Fund." NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that the existing KMC 7.30 (Airport Land and Ternunal) is hereby repealed and replaced by tkie new KMC 7.30 (Airport Land Sale Permanent Fund) as shown below. Chapter 7.30 AIRPORT LAND SALE PERMANI:NT FUND 7.30.010 Airport Land Sale Persnanent Fund A sepazate fund of the City of Kenai is hereby established as the Airport Land Sale Pei•inanent fund. The purpose of the fund is to account for the principal proceeds of the sale of airport Land. Airport Lands shall consist of all land owned by the City of Kenai and held by it for the use or benefit of the Kenai Municipal Airport under the terms of the 1963 Quitclaim Deed from United States of America recorded at Book 27, Page 303 at the Kenai Recording District, Kenai, Alaska. Additionally, any other land owned by the City and acquired with airport funds shall be Airport Lands. (aj The Airport L.and Sale Permanent F~.ind shall be a restricted fund. The establishment of the fund known as the Airport Land Sale Ordinance No. 2183-2006 "' Page 2 of 2 Permanent Fund is within the discretion of the Kenai City Council. Deed restrictions, federal regulations and grant assurances require that airport funds be used for the use and benefit of the Kenai Municipal Airport. (b) The net proceeds received by the City on closing sale of Airport Lands shall be deposited in the Airport Land Sale Perxnanent Fund. Where notes are taken in payment for Airport Lands, all principal payments on said notes shall be deposited in the Airport Land Sale Permanent Fund. Interest on notes taken in payment for airport lands shall be transferred to the Airport Enterprise Fund. (c) Money placed in the Airport Land Sale Permanent Fund shall not be available for use by the City for any purpose other than for investments in accordance with City ordinances. (d) Interest or income earned by the Airport Land Sale Permanent Fund shall be deposited in the Airport Enterprise Fund. The City Council may, by ordinance, transfer funds from the Airport Enterprise ~l~nd to the Airport Land Sale Permanent Fund. After such a transfer, the money wiil become a part of the Airport Land Sale Permanent Fund to be used only for the investment purposes for which the Fund is established. PASSED BY THE COUNCIL OF THE CITY OF KENAI, 1\LASKA, this sixth day of September, 2006. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: August 16, 2006 Adopted: September 6, 2006 Effective: October 6, 2006 (8/4/06 sp) _ Suggested by. Library Commission CITY OF KENAI ORDIlYANCE NO. 2184-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA. AMENDING PORTIONS OF KMC 1.56 (KENAI MUNZCIPAL LIBRARY DEPARTMEN'I`) AND KMC 1.5? (LIBRARY COMMISSION) REGARDING LENDING POLICIES. AND REPLACING THE TERM "LIBRARIAN" WITH "LIBRARY DIRECfOR." WHEREAS, KMC 1.56 and KMC 1.57 contains the city ordinances relating to the Kenai Community Library and the Kenai Library Cominission; and, WHEREAS, the Kenai Library Commission has recommended amendments to KMC 1.56 regarding lending policies and changing the term "Librarian" to "Library Director"; and, WHEREAS, the Kenai Library Commission is charged under KMC 1.56.010(c) to make recommendations to the Kenai City Council regarding library matters: and, WHEREAS, it is in the best interest of the City of Kenai to amend the Kenai Municipal Code as shown in Attachment A. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 1.56 and KMC 1.57 are amended as shown in Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI. ALP,SKA, this sixth day of September, 2006. PAT PORTER. MAYOR ATI'EST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: August 16, 2006 September 6. 2006 October 6, 2006 (8/3/06 sp) Chapter 1.56 KENAI MUNICIPAL LIBRARY DEPARTMEN'I' 1.56.010 Creation. There shall be a Municipal Library Department, the head of which shali be the Librarian, appointed by the City Manager for an indefinite term. The [LIBRARIAN~ Librarv Director shall be an officer of the City and have supervision and control of the Kenai Community Library. 1.56.020 Authority for adoption of rules, regulations, and ~nes. The [LIBRARIAN] Librarv Director shail establish rules and regulations for conduct on the property of, and use of, the Kenai Community Library and library materials and a fine or penalty charge schedule for overdue, damaged, or failure to return loaned library property, which rules and regulations shall be effective after approval by City Council and after being posted in a location within the library readily visible by library patrons. 1.56.025 Library cards. No materials will be loaned from the library except to parties having a valid library identification card which is not subject to any unpaid fines or penaities in excess of $10. Such library identification card will be issued to any resident of the area making application therefor and upon a form prepazed by the Librarian and containing an agreement to be responsible for all materials borrowed thereon and to pay any fines, charges, or penalties imposed by misuse of library property. However, no such card wiil be issued to a minor (under the age of 18) unless the application for said card is also signed by a parent of such chiid or one standing in place of the pazent who is wiliing to assume responsibility for the child and for any misuse of library privileges. 1.56.030 Sleeping and resting prohibited. No one shall sleep within the library or outside the library upon library property at any time nor shall anyone lie in a reclined position within or outside the library or library grounds. To lie in a reclined position means to position one's body parallel to the floor or ground whether one is on the floor, ground, a table, bench, chairs, couch, counter, shelves, card cases, or any other item of furniture. 1.5b.040 Refusing to return loaned material. No person, firm, or corporation shall knowingly refuse to return any reading material, including books, periodicals, newspapers, maps, atlases, or any non-reading material including cassettes, record players, screens, and projectors loaned to said person, firm, or corporation within thirty (30) days after said reading oz non-reading material becomes overdue. (Ord. 536} 1.56.045 Lending policy where loaned ~-aterial not returned. Lznding privileges for any library materials will be suspended on any library card on which materials have been loaned and have not been returned when due or on which any fines, chazges, or penalties in excess of $10 have been assessed which are in arrears. [WHERE PRIVIL.EGE OF ANY MEMBER OF A FAMQ.Y GROUP WHO IS A HOLDER OF A LIBRARY CARD HAS BEEN SUSPENDED LTNDER TERMS OF THIS SECTION, THE LIBRARIAN IS AUTHORIZED, BY GIVING PRIOR WRITTEN NOTICE OF SUSPENSION TO A Ordinance 2184-2006 Attachment A Page 1 of 2 PARENTAL FIGURE AT THE ADDRESS ON THE CARD, TO SUSPEND THE USE OF Ai.i. OTHER LIBRARY CARDS OF TI-IE FAMII..Y GROUP UNTII.. THE OVERDUE MATERIALS HAVE BEEN RETURNED OR THE FINES, CHARGES, OR PENAL'I'IES ON THE SUSPENDED CARD HAVE BEEN FtTLLY PAID.] 1.56.050 Penalty. In addition to any fine levied or other penalty imposed pursuant to this ordinance or regulations imposed thereunder, any person, firm, or corporation who shall v'rolate any provision of this chapter including any rules and regulations as herein set forth, or fail to comply therewith upon conviction thereof shall be punished by a fine as provided for violations in KMC 13.05.010. Chapter 1.57 LIBRARY COMMISSION 1.57.010 Duties and powers. The Commission shall be required to do the foltowing: (a) Develop, adopt, alter, or revise subject to approval by the City Council, a master plan for the physical development of library faciliues Por the Ciry; (b) Submit annually to the City Manager and Council a list of recommended capital and other improvements in regazds to the library; (c) Make recommendations regazding any matter related to library service; (d) Serve as the liaison between the public and the City Council in regazds to library service; (e) Work closely with the Friends of the Kenai Community Library [BOARDj for the betterment of the Kenai Community Library; (~ Shall act in an advisory capacity in the selection of the [CiTY IJBRARIAN~ Librarv Director. 1.57.020 Library regulations. The Lihrary Regulations shall be as listed under the regulations section in the Kenai Code, Supplement #18, adopted on September 20, 1982, and all future updates. Ordinance 2184-2006 Attachment A Page 2 of 2 ~ Suggested by: Planning & Zorung Coinmission CITY OF KENAI ORDINANCE 1V0. 2185-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ESTABLISHING A CENTRAL MIXED USE ZONE (CMU) AT KMC 14.20.125 AND AMENDING THE VARIOUS P~1RT5 OF THE KENAI ZONING CODE BY ADDING THE PROVISIONS TO ENCOMPASS THE NEW ZONE, AND UPDATING PORTIONS OF THE LAND USE TABLE AT KMC 14.22.010. WHEREAS, the City of Kenai Zoning Code does not have a zone designed for a mixture of commercial and residential use; and, WHEREAS, it is desirable to have a zone designed for a centrally located, pedestrian- friendly area for general retail shopping, personal and professional services, enterkaimnent and restaurants to be mi~ced with residential uses; and. WHEREAS, the 2003 City of Kenai Comprehensive Plan calls for the estabiishment of such a central mixed use zone: and, WHEREAS, such a zone would be called the Central Mixed Use zone (CMU): and, WHEREAS, it is in the best interest of the City of Kenai to establish a Central Mixed Use zone as described above; and, WHEREAS, amending the Land Use Table categories of "Automotive Repair/'dYre Recapping/Rebuilding" to "Automotive Repair," "Sarutariums" to "Assisted Living," and "Farming/Gardening and General Agriculture" to "Famung/General Agriculture" would aid in better deternuning which uses aze allowed in the various zones within the City; and, WI-IEREAS, adding definitions of the terms farming, agriculture, assisted living. hospital and assembiages wiIl aid in better understanding land uses in the City of Kenai; and, ~ WI-IEREAS, Footnote 21 of the Land Use Table shouid be amended to substitute "Development" for "Setbacks" to better regulate lot size in the Central Commercial and Central Mixed Use zones. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI. ALASKA that: SECTION I. KMC 14.20.125--A Centrai Mixed Use Zone (CMU} is enacted as set forth in Attachment A. Ordinance No. 2185-2006 Page 2 of 2 SECTION II. KMC 14.22.010-The Land Use Tabie and its footnotes are amended as set forth in Attachment B. SECTION III. KMC 14.24.010 and 14.24.020-The Development Requirements Tables are amended as set forth in Attachment C. SECTION IV. KMC 14.20.220-The Sign Code and Sign Code Tabie are amended as set forth in Attachment D. SECTION V. KMC 14.20.320-The definitions are amended as set forth in Attachment E. SECT20N VI. KMC 14.25A20-The I.andscape/Site Plan Requirements are amended as set forth in Attachment F. PASSED BY THE COUNCIL OF THE CPPY OF KENAI, ALASKA, this sixth day of September, 2006. PAT PORTER, MAYOR A'I'I'EST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: August 16, 2006 September 6, 2006 October 6. 2006 (7/7/06 sp) 14.20.125 Central Mixed Use Zone (CMiT ZONEI (a) Intent: The CMU Zone is established provide a centrallv located area in the City for ¢eneral retail shopping, personal and orofessional services, entertainment establishments restaurants and related businesses The district is also intended to accommodate a mixture of residential and commercial uses with conflict beine resolved in favor of business. The CMiJ Zone shall be designed to encourage pedestrian movement throuehout the area. Buildin~ and other structures within the district should be compatible with one another and the surroundin~ azea• (b) Principai Permitted Uses: As allowed in the Land Use Table. (c) Conditional Uses: As allowed in the Land Use Table and subject to the provisions of this chapter. (d} Accessorv Uses: As defined. (See definitions in KMC 14.20.320) (e) Home Occupations: Uses as allowed in this chapter (~ Parking Requirements: As required bv this chapter. (g) Development Requirements: (1) No open storaee shall be located closer than twentv-five feet (25') to the adjoining rieht-of-way of anv collector street or main thoroughfare. Anv ooen storage in front or side vard visible from a coliector street shall be enclosed with an eieht-foot (8') hi¢h commercial grade fence; (2) As set forth in KMC 14.20.250(b)(4)(Bl. (h) Landscapina: As reauired in KMC 14.25. Ordinance No. 2185-2006 Attachment A Page 1 of 1 ~~~ o~o C N U ~ m._ ~ ._ o ~o~ ~~a o m ~ ~ 9 m a ~ N a ro - .... ~.~ Q 9 ~ a:c ~ m ~~~a i~a`(g~nz° W 11 il II ii Ya C)(~Z ~ ~ '~? ~-~,:' ;:v v ~, `~.~; ' ~° '~ 'z c~ :. ~a s v < ~ ~ . ~. ' a~ ... a'. 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U U C) CJ C.7 W C.7 U Pn C,J C.7 C~ a U U U z c~ U w a U z U z z a ~ v a ~ u v E ~ ~ ~ ~ _ ~ :: = x ~,' p Q ^ ~ ,eq ~ , ~ rn w E o ~ ~ ' a' U ~ v exa F U ` o ~'2 ~" O ~ ~ ~2 p ' t A ~6 V] ~ rra i, Ti 00 a ~~ ~ G Ci O~ • G .~. ya y ~ P~ C yz„~ n ~y ^ '~ ~" z ~G R ~ O e~{ U ° O t0 ~ ~ Q" ,~ ] G ~ ~ ~ ~ v~ O ~ @ a .n C ~ G U ~ S ~ u U~ ~bL` ~ C i ~ ^ ~" 0~ fA d L-~ t ' R 0a ~ ~ r" n ~ ~ Q' ~ ~ ° ° ~ ' p G .~ ~ C~ eo ~ eo iY on n ~~ ~ ~~ y ~ ~ + w -~~q i ce . + _ p w y y a W ~ o v i ~~ W d R CE! 4 R ~ ~ ~ G L C~ 0 y! ~ ~? ` ~ .~ " .~ ~ 4 a N ' ~ 4 4 ~ u ~ ~ a a w wc~ c~ c7 ew w ~ z a c a av a m a y a: m ~ d° E tO N N Qa s. 0 ~~ ~ ~ ~ ~ ~ ~ ~ ~ Y , ~ ~ ~ ~ N Z g ~ F a v m c L O a ~ ~ ,~ G a o` w 14.22.010 Land Use Table Footnotes: l. Allowed as a secondary use except on the ground floor of the part of the building fronting on collector streets and major highways. 2. One (1) single-family residence per pazcel, which is part of [he main building. 3. Allowed as a conditional use, subject to satisfying the foilowing conditions: a. The usable area per dwelling unit shall be the same as that required for dweiling units in the RS zone; b. The site square footage in area must be approved by the Commission; c. Yazds around the site, off-street parking, and other development requirements shall be the same as for principal uses in the RR zone; d. Water and sewer facilities shall meet the requirements of all applicable health regulations; e. The proposed dwelling group will constitute a residential area of sustained desirability and stability; will be in harmony with the character of the surrounding neighborhood, and will not adversely affect surrounding property values; f. The buildings shall be used oniy for residential putposes and customary accessory uses, such as garages, storage spaces, and recreationai and community activities; g. There shall be provided, as part of the propased development, adequate recreation azeas to serve the needs of the anticipated population; h. The development shali not produce a volume of traffic in excess of the capacity for which the access streets are designed; i. The property adjacent to the proposed dwelling group will not be adversely affected. . 4. See "Townhouses" section. 5. See "Mobile Homes" section. 6. Allowed as a conditional use, subject to "Mobile Homes" section and provided that any mobile home park meets the minimum Federal Housing Authority requirements. 7. See "Planned Unit Residential Development" section. 8. Allnwed as a conditional use, provided that the proposed location and the characteristics of the site wili not destroy the residential character of the nei~hborhood. 9. Allowed as a conditional use, provided that all applicable safety and fire regulations are met. 10. Provided that no part of any building is located nearer than thirty (30) feet to any adjoining street or property line. 11. Allowed as a conditional use, provided that no part of any building is located neazer than thirty (30) feet to any adjoining street or property line and provided further that the proposed location and characteristics of the use will not adversely affect the commercial development of the zone. 12. Allowed as a conditional use, provided that the following conditions are met: a. The proposed location of the use and the size and characteristic of the site wiil maacimize its benefit to the public; b. Exits and entrances and off-street parking for the use are located to prevent traffic hazards on public sueets. 13. Allowed as a condidonal use, provided that setbacks, buffer strips, and other provisions aze adequate to assure that the use will not be a nuisance to surrounding properties. The Commission shall specify the conditions necessary to fulfill this requirement. Ordinance No. 2185-2006 Attachment B Page 4 of 5 14. Allowed as a conditional use, Provided thaC no indication of said use is evident from the exterior of the mortuary. l5. Allowed, provided thaC the following conditions aze met: a. An uncleared buffer strip of at least thirty (30) feet shall be provided between said use and any adjoining property in a residential zone. b. Exits and entrances and off-street parking for the ase shall be located to prevent traffic hazards on the public streets. 16. See "Conditional Uses" section. 17. See "Conditional Use Permit for Surface Extraction of Natural Resources" section. 18. Conditional Use allowed only on privately held property. Not allowed on govemment lands. 19. Deleted by Ordinance 2144-2006. 20. The airport related uses allowed under this entry are aircraft approach zones per KMC 14.20.070(a), except [hat for properties contained inside the aitport perimeter fence or having access to aircraft movement azeas, ramps, taxiways or parking aprons, FAA authorized uses aze allowed. 21. [SETBACKS] Development for use shall be the same as those listed in the "Development Requirements Tables" for the RU/TSH zones. 22. Allowed as a conditional use in conjunction with a permitted use in the ED zone. For example, housing for teachers or students for a school in the zone. 23. Allowed as an accessory use in conjunction with a permitted use in the ED zone. For example, a dornutory used to house students for a school or educational facility. 24. Retail businesses allowed as a secondary use in conjunction with the primary use (e.g. a gift shop or coffee shop within another business). 25. Art studios, barbers, beauticians, dressmakers, dry cleaners and self-service laundries, fitness centers, photographic studios, tailors, tanning salons and massage therapists. 26. Food services aze allowed on a temporary or seasonal basis of not more than four (4) months per year. Ordinance No. 2185-2006 Attachment B Page 5 of 5 14.24.010 Minimum lot area requirements. KEY: N=Not allowed DEVELOPMENT REQUIREMENTS TABLE Zonin Districts USES C/RR RRl RS RSl RS2 RU/TSH IL/IH/CC/CG/C R ED LC MINIMUM LOT AREA (s uare feet) See individual sections Single/'1'wo/Three of Code for Famil Dweltin 20,000 20,000 7,200 12,500 7,200 ~,200 re uirements 20,000 20,000 12,500 Four Family Dwel(in 20,000 22,400 9,600 N N 7,200 N N 12,500 Five Family Dwellin 22,400 N 12,000 N N 7,200 N N 12,500 Six Family Dwellin 24,800 N 14,400 N N 7,200 N N 12,500 27,200+ 16,800+ 2,400 for 2,400 for Seven or More each unit each unit Famil Dwellin over 7 N over 7 N N 7,200 N N 12,500 Footnotes: ~ (1) Listed square footages are the tninimum required for each zone. (2) Greater lot square footages may be required to sausfy Alaska Department of Environmental Conservatlon (ADEC) requiremenu where on-site water supply and/or sewer is necessary. (3) Minimum lot size for non-residenfial uses in ED zone is 40,000 squaze feet. (4) Minimum lot size for residential uses in the CMU zone is 7.200 squaze feet Ordinance No. 2185-2006 Attachment C Page 1 of 2 14.24.020 General Requirements. DEVELOPMEIVT REQUIREMENTS TABLE ZONING DISTRICT USES C/RR RRl RS RSl RS2 RUlTSH IL/IH/CC/ CG/CMU R ED LC MINYMUM LOT Width (feet} 90 90 60 60 60 60 90 90 90 MINIMUM LOT Size (feet) Front' 25 25 25 25 25 t0 25 ZS 25 Side ~ One-Story 3 Day-light BasementlSptit Leve13 Two-Sto 3 IS 15 IS 5 10 15 5 10 IS 5 10 IS 5 10 IS 5 5 5° See individual sections of Code for requirements 15 15 IS 15 15 15 IS 15 15 Rear 20 20 20 20 20 10' 20 20 20 '. Maximum Lot Covera e 30%a 30% 30% 30% 30% 40% 30% 30°!a 30% - Maximum Hei ht (feet) 35 35 35 35 35 Footnotes: (1) Provided that the aunimum fron[ setback is measured from any right-of•way or access easement. (2) Side setbacks aze deternvned independently &om the front view of the structure. P(at plan/As-buil[ wilt dis[inguish single and two-story portions of building ro verify setback distances aze met. (3) Story is the portion of the building included between the upper surface of any tloor and the upper surface of ~ the floor next above or the ceiling or roof above. One-story is defined as a story having direct access from grade levet without a lower story. A swcture having a lower srory situated below a one-story is considered a one-story swcture in its en[irety. Two-story is defined as one-story plus moce than one•half (I/2) the height af the lower story alI situated above grade. Dayligh[ basement/split tevel is defined as one-story plus tess than one-half (1/2) the height of the lower story all siNated above grade. For pu~poses of these footnotes, Grade is defined as the lowest point of elevation of the finished surface e of the ground between [he building and a line five (5) fee[ from the building. (4) Except tha[ for each story over two (2) srodes, each side and reaz yazd shall be increased t}uee (3) feet, but nced not exceed fourteen (14) feet for each side yazd and nineteen (19) feet for the reaz yard. Ordinance No. 2185-2006 Attaclunent C Page 2 of 2 14.20.220 (f1 Siens are allowed as foilows: (1) Allowed Signs Not Requiring a Permit. (A1 Public siens erected by or on behaif of a~ovemmental bodv to post leeal notices identifv oublic nroperty, convev public information and direct or reeulate pedestrian or vehiculaz traffic. (Bl Personal messaQe siens of a total of not more than five (5) squaze feet contaim_ng noncommercial messaees. {C) Traditional holiday decorations. (D) Temporary banners of not more than thirtwtwo (32) square feet No temporarv banners shall be installed or nlaced for a period to exceed thirry (30) da s~ n~v (90) day eP nod• (E) SiQns in the nature of cornerstones commemorative plaques historical signs building name, or street number. (F) Si~ns within a buildinQ or on a structure or fence located at an outdoor snortine event sportine facilitv or sports field. ~ ~Gl Temnorarv sians of not more than five (5) squaze feet advertising such items as "vazd sale," "earaee sale." "property for sale." "onen house." or "lemonade" may be dispiaved for one (1) week. Such signs must disolav the name address and telephone number of an adult oerson conductin supervisine such sale and must be dated. (I-D SiQns erected on a lot or lots that aze fenced or screened so that no part is visible from a public ri~ht-of-wav or another tot. (n Construction Signs. Durine construction reoair or alteration of a structure temporary siQns that denote the azchitectural or eneineering firm contractor or builder that denote the name of the structure and its use or occupants-to-be may be erected on the construction site. Each sien shall be thirtv-two (32) square feet or less in size and no more than one (1) such sien shall be pernutted for each architectural or engineerine firm, contractor, builder, owner, or denoting the name, use and occupants-to-be of the structure. Anv of these may be combined on one (1) or more siens but the total square foota¢e of the sien or sians shall not exceed that set out above. All constmction si~ns shail be removed when the construction is completed. (Jl A fla¢ or insipnia of any nation, organization of nations, state borou¢h citv refi¢ious, civic, fraternal or~anization, or educational institution exceot flaQS used in connection with a commercial promotion or as an advertisine device. (K) Event Signs One (1) unlighted sign of ua to thirty-two (32) sqaare feet ma ~}_be displaved for the pumose of announcine an event of civic nhilanthropic educational or relieious oreanization. Signs mav be installed no sooner than ten (10) davs orior to the event announced and shall be removed within five (5) days after the event. No event signs may be installed for a oeriod exceedinQ thirtv (301 davs in anv ninety (901 dav period. The ninetv (90) dav period begins on the first dav the event si¢n is displaved. Event si¢ns shall contain the date of their ptacement. (L) Real estate sie,ns of thirtv-two (32) square feet or less used to advertise the sale or lease of the pro~ertv on which the sien is located. Ordinance No. 2155-2006 Attachment D Page 1 of 8 (Ml A sandwich board siQn of not more than sixteen (16) square feet exclusive or" other signs allowed. N Political 3i ns. Political si ns shall be removed within two 2 weeks aft~r ;he date of the election that the siens were displaved to promote: provided that sietts erected for any primarv election that remain relevanC to the followine eeneral election may be maintained until two (2) weeks followine the Qeneral election. If after reasonable notice, such si~ns aze not removed, the City mav remove them and the candidate. or¢anization. or person who caused the si n to be placed mav be charged for said removal. 2) Allowed Signs Requiring a Permit. (A) One (1) freestandine or mazquee ner lot of.not more than sixtv-four (64) square feet. (B) Signs Identifyin¢ a Home Occunation. One (1) si~n per use not exceedin¢ five (5) square feet. Such sien shall be no closer than ten feet (10'1 to anXpronerty line or shall be flat aeainst the buildine. No li htin is pernutted. (C) Bulletin Boards. Bulletin boards or aermanent changeable letter signs located on the premises shall be nermitted for churches. schools, community centers and public charitable or institutional uses. Such si~ns shall contain no more than thirtv-two (32) sguare feet in azea. Such signs mav be used as wall signs• mav be used as ground siens when located a minimum of ten feet (10') from the street lot line: may be indirectly illuminated. (D) A permanent subdivision sien mav be placed at one (1) entrance to a subdivision and may contain onlv the name of the subdivision. Such sign shall not exceed thirtv-two (32) square feet. Anv illumination shall be by indirect means. (3) Prohibited Si¢ns. (A) Audio siens. (B) Beacon si~ns. (C) Fence siens. (D) Roof si n~s. (E) Rotatin s~ns. (F) Unauthorized siens in the riQht-of-wav or on citv propertv. Such signs mav be removed and disposed of without notice. (G) Signs that are hieher than twelve feet (12') above the adjacent ground or pavement level. (I-~ Si~ns containine profane or indecent words or illustrations. (I) SiQns containing electricai equinment or electrical appazatus of any kind that causes interference with radio. television, or telephone sienals and reception. (J) Si ng_s placed on trailers or vehicles. which as pazked or located are desiQned to primarilv to displav said sien. This does not anp(v to signs or letterine on buses taicis. or vehicles operated in the normal course of business. (K) Flashine or intermittent illumination are not permitted. (L) Balloons or other inflatable or eas-filled fi,gures or si ns (M) Signs not mentioned in the code are prohibited. (N) No sign shall be erected at anv location where by reason of the ~osition shane intensitv, or color of such sien it mav interfere with, obstruct the view of or be confused Ordinance No. 2185-2006 Attachment D Page 2 of 8 with anv authorized traffic siQn, signal or device. No sien shall be attached to any traffic si or sienal device or to anypublic sign or signpost (O) No sign other than public signs shall be placed within twentv feet (20') of any intersection as measured from the nearest intersection of street rieht-of-wav lines (P) No off-premises commercial advertising signs includine billboazds excevt as allowed in subsection (~(1}(G) of this section or at an outdoor sportittQ event sports facilitv or sports field. (Q) Portabie siens. [(f~~ ~ Nonconforming Signs. (1) After the enactment of this section, signs located within the City of Kenai on the effecdve date of this section that do not conform to the requirements of this code shall be classified as legal "nonconfornung" signs if the sign was in compliance with applicable law on the date of adoption of this code. (2) ti legal nonconfornung sign shall immediatelylose its legai nonconfornung designation if: (A) The sign is altered in any way in structure which tends to increase its nonconfomuty with the requirements of this code; (B) The sign structure is relocated; (C) The sign (except for copy on a changeable copy sign) is replaced. Upon the occunence of subsections (f~(2)(A), (~(2)(B) or (~(2)(C) of this section, the sign shall be immediately brought into compliance with this code with a new permit secured or it shall be removed. [(g)] ~ Specific Definitions Pertaining to Signs. (1) "Applicant" means any for-pro5t or nonprofit ente~prise, or organization, or any individual not acting on behalf of such an enterprise or organization. (2) "Audio sign" means a sign that emits a noise or sound, either spoken words, music, or singing. (3) "Banner" means a sign construction of flexible material, such as cloth, which moves upon being subjected to pressure by the wind. (4) "Beacon sign" means a light with one (1) or more beams capable of being directed in any direction or directions or capable of being revolved. (5) "Combination sign" means a sign incorporating any combination of the features of pole, projecting, and roof signs. Ordinance No. 2185-2006 Attachment D Page 3 of 8 (6) "Curb line" means the line at the face of the curb nearest to the street or roadway. In the absence of a curb, the curb line shall be established by the City Engineer. (7) "Display surface" means the azea made available by the sign structure for the purpose of displaying the advertising message. (8) "Electric sign" means any sign containing electrical wiring, but does not include signs illuminated by an exterior light source. (9) "Fence sign" means a sign other than a real estate or home occupation sign displayed upon fences or upon walis that aze not an integral part of a building or walls that aze used as fences. (10) "Fin sign" means a sign that is supported wholly by a building or partly by poles and partly by a building. (I1) "Ground sign" means a sign which is supported by one (1) or more uprights, poles, or braces in or upon the ground other than a combination sign, fin sign, or pole sign as defined by this Code. (12) "Legal setback line" means a line established by ordinance beyond which a building may aot be built. A legal setback line may be a property line. (13) "Mazquee" means a permanent weatherproof structure attached to, supported by a building, and projecting fram the wall of the building. (14) "Pole sign" means a sign wholly supported by a sign structure in the ground. (15) "Political sign" means a sign promoting a candidate for political office, or promoting any position on a bailot proposition. (16) "Portable display surface" means a display surface temporarily fixed to a standardized advertising structure that is regulazly moved from structure to structure at periodic intervals. (17) "Portabie sign" means a sign other than a temporary sign that is not attached to any building or structure. It may readily be moved from one (i) location to another. It is designed to rest on the ground when displayed and may be with or without its own wheels. It may or may not be lighted. (18) "Projecting sign" means a sign other than a wall sign, which projects from and is supported by a wall of a building or structure. (19) "Real estate sign" means a sign advertising the sale, lease or rent of one (1) or more lots or acreage or the improvements thereon by a real estate company or individua] licensed by the State of Alaska. Ordinance No. 2185-2006 Attachment D Page 4 of 8 (20) "Roof sign" means a sign erected upon or above a roof or parapet of a building or structure. (21) "Sign" means any words, letters, parts of letters, figures, numerais, phrases, sentences, emblems, devices, trade names, or trade marks by which anything is made known, such as aze used to designate an individual, a firm, an association, a corporation, a profession, a business, or a commodity or product which are visible from any public street or highway and used to attract attention. (22) "Sign structure" means a stnzcture that supports or is capable of supporting any sign as defined in this code. A sign structure may be a single pole or poles and may or may not be an integral part of a building. (23) "Temporary sign" means any sign, banner, pennant, valance, or advertising display constructed of cloth, canvas, light fabric, cardboard, wall board, or other light materials, with or without frames, designed to be displayed for a limited period of time only. 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'!+, ~ G N c0 n c om ~ o d s1 ~ ~. aa ~ a ~ v .~ a 0 z ¢ z .~ .. ` a 0 z ~. d ~ .~ d 0. c~ 0 N v~ ~ N ~ ~ ~ ~ 14.20.320 Definitions. (a) General Interpretation. (i) Words used in the present tense include the future tense. (2) The singular number includes the plural. (3) The word "person" includes a corporation as well as an individual. (4) The word "IoY' includes the word "ploY' or "pazcel." (5) The term "shall" is always mandatory. (6) The word "used" or "occupied" as applied to any land or building shali be construed to include the words "intended," "arranged" or "designed to be used or occupied." (b} Specific Definitions. (EiDD THE FOLLOWING TO EXISTING LIST:) "A~riculture" means the science art and business of cultivatin se oil, producing crops, and raising livestock; farnung; "Assemblaees" means a large atg hering of peonle for an event such as a concert, fair, or circus." "Assisted livine" means a livine arrangement in which oeoole with special needs, especiallv seniors with disabilities, reside in a facilitv that provides help with everydav tasks such as bathinQ, dressine, and takinQ medication. "Farming" means a tract of land cultivated for the pumose of commerciai agricultural production. "Hosoital" means an institution that provides medical, sur ic~ al, or psvchiatric care and treatment for the sick or the iniured. Ordinance No. 2185-2006 Attachment E Page 1 of 1 14.25.020 Application. This chapter shall apply to all commercial and industrial development within the City of Kenai and shali apply to both the landscaping and site plans. "Commercial and industrial developmenP' and "all developmenP' shall be defined as any improvements requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000) or more, which adds square footage, located on properties within the Central Commercial (CC), General Commercial (CG), Limited Commercial (CL), Heavy Industriai (II~, Townsite Historic (TSH), Light Industrial (IL), Central Mixed Use (CMLT), and Education (ED) zoning districts or a change of use as required in KMC 14.20.250 (a). It is unlawful for any person to construct, erect or maintain any structure, building, fence or improvement, including landscaping, pazking and other facilities on property requiring a landscape/site plan unless such improvements are constructed or reconstructed in a manner consistent with the approved plan. Ordinance No. 2185-2W6 Attachment F Page 1 of 1 ~~ ~ r~~ ti:`~ ; . ~ , . - ~..~,-- tl~e cily of // '~I/i~/a9e wit~r a~ast, Gi~ wit~i a Future" 210 Fidalgo Avenueal Kenai, Alaska 99611-7794 ~ Telephone: 907-283, 7535 / FAX: 907-283-3014 ~'~Ii~ issz M ~ ~ o ^ TO: Larry Semmens, Acting City Manager FROM: Mariiyn Kebschull, Planning THRU: Jack La Shot, Public Works DATE: August 8, 2006 SU~JECT: PZ06-51 - Resolution recommending an amendment to Titie 14 to inciude a Central Mixed Use Zone (CMU) On July 26, 2006, the Planning and Zoning Commissuon approved a resolution recommending to Councii that Title 14 be amended tQ inciude a Centrai Mixed Use (CMU) zone. The Commission held work sessidns for severai months to draft a recommendation for Gouncii. The intent is to ~establish a centrally located area in the City that provides for both commercial an residential uses. Development of a mixed-use zone was recommend~ in the Comprehensive Plan. ! Administration is comfortable with the recommendatipn with the exception of the Commission's recommendation for the sign code for khe proposed zone. The proposed code would severety restrict the size and h ight for freestanding signs in the zone. Even though the amendment does not i~entify an area for the zone, the Commission has reviewed and decided on an ar~a for a possibie rezone if the Council amends Titie 14 to include the CMU zone. (See the attached map.) The area includes parcels zoned CG - General Comrnercial and CC - Central Commercial. The sign code now allows for freestanding signs of up to 120 square feet for a single business and 200 for multipl~ businesses on one parcel. Signs may be up to 30-feet high. The proposed am ndment would Iimit signs to 64 square feet with a maximum height of 12 feet. During discussions with the Commission, I explainedl administration's (Cifij Attomey, Building Official, and myselfl concems abo~t restricting the signs to this size and height. It was noted that the sign code was iamended in 1985 to 81 square feet and again in 2000 to 12Q square feet (antl 200 for muitipie businesses}. The resolution in 1985 states the ameridment is being proposed because the code is "too restrictive." In 2000, the cocie was amended at Administration's recommendation because of the request for sign variances for larger signs. ~ On March 22nd, Bob Springer conducted an uno~ciallsurvey of signs in the area Based on the survey, he recommended the sign sizelcurrently allowed be maintained. He noted that amending the sign code tb 64 square feet would cause at ieast 50 businesses in the area to have non~conforming signs. This information was provided to the Commission. The Commission voted to proceed with their recommendation. They noted thatl~the code allows for variances from the sign code and that requests could; be reviewed on an individual basis. They also noted that they had spent considerable time reviewing sign sizes and CommissionerAmen had provided a pictorial overview of sample signs so they could make a recommendation. The Commission asked that these photographs and the table showing sign sizes be provided to the Council as backup information to the ardinance. ! in my tenure, administration has never disagreed witPo a recommendation of the Commission; however, I do feel it important that the ouncil understand administration's concerns and consider ali informatio~ when acting on the ordinance. Let me know if there is information you would like to ~rovide to Councii for their consideration during the public hearing. cc. Robert Springer, Building Official Cary Graves, City Attorney ~~1~~ ~~ ~ ~0~ a N C N N~ A A A~~~~~ ~ p ~ Q ° 'w m ~ < ~ 'm 2 ' y A A v ~-1 (pD ~ A 7 m 0~ n N n~ N m ~ ? ~ ~ a ~ m° m° _ ~ 3 3 = ~ m rv _ _ _ ~ w _ _ N J r trt °~ n ~ ~;~~\ '~.~~ tl~e c~'Ly a f / KENa~ s~ "Villa9e wit~ a Past, Gi~ witl~ a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 i'~, Telephone: 907-283-7535 / FAX: 907-283-3014 ~' f' 1992 ~~E ~~ o : TO: City Council (~~µ FROM: Rick Koch Ur DATE: August 31, 2006 SUBJECT: QrdinanceNumber2185-2006 The purpose of this conespondence is to recommend that the Council amend the above referenced ordinance to reflect the following: Attachment D, Page 2 of 8 (2} Allowed Signs Requiring a Permit. (A) One (1) freestanding or marquee per premises of not more than one hundred riventy (120) square feet. Where there is more than one (1) business on a premises a combined freestanding or mazquee sign of not more than two hundred (200) square feet. (3) Prohibited Signs (b)Signs that aze higher than twenty (20) feet above the adjacent ground or pavement level. Adopting the recommended amendment will decrease impact on existing signs, decrease the amount o£ variances that we believe wiil be applied for. Administration believes the above amendment provides for both reasonable sizing, and heights of signs. Attached please find additional information prepared by staff. attachments -aa. j ^ "V'llaye wit~t a~'ast, Gc y wit~t a Fr~ture~" .~~,~ i~_ 210 Fidaigo Avenue, Kenai, Alaska 99611-7794 ,,,.,~, _A_~ ~ Telephone: 907-283-7535 / FAX: 907-283-3014 i~Ilfi '- '"~~. ~ ~ 1992 `E~ie clty of KENA~ SKA M~~ ^ TO: Rick Koch, City Manager FROM: Marilyn Kebschull, Pianning Administra r THRU: Jack La Shot, Public Works Manager ~ DATE: August 28, 2006 SUBJECT: Ordinance No. 2185-2006 Robert Springer, Buiiding O~cial, conducted an unofficiai survey of signs in the City to provide a sampling of the size and height. Administration felt this information would be helpful to Councii when reviewing the proposed ordinance. Attached is a spreadsheet showing the results of that survey. Signs shown in bold would become non-conforming either by size or height under recommendations in the ordinance. Administration has noted a concern with the proposed size and height for freestanding signs in the ordinance. Councii shouid also be aware that the proposed ordinance does not provide for roof or fence signs both of which are currently ailowed in commerciai zones. If Council decides to consider an amendment to Ordinance No. 2185-2006 to KMC 14.20.220 (Signs), Council may wish to consider the following: • Attachment D, Page 2 of 8 (2) Allowed Signs Requiring a Permit. {A) One (1) freestanding or marquee per premises of not more than one hundred twenty (120) square feet. Where there is more than one (1) business on a premises a combined freestanding or marquee sign of not more than two hundred (200) square feet. (3) Prohibited Signs. (B) Signs that are higher than twenty feet (20') above the adjacent ground or pavement level. Adopting these recommendations would provide for the least impact on existing signs in the proposed area. cc: Robert Springer, Building Official Cary Graves, City Attorney Attachment Signs in Bold wiil be non-conforming either for size or heigh4 under recommended ordinance. Business Name S uare Foota e Si n Hei ht Comments Kenai Veterina Hos ital 18 7 Leif Hanson 20 4 Kenai Visitors Center 22 5 Welis Far o 24 13 Tesoro S ue H . 24 24 Salvation Arm 24 20 Chamber of Commerce 26 4 Methodist Church 26 6 Back Door Loun e 32 17 Re ai Cinemas 32 14 Luc Puck 32 18 Summit Cleaners 32 12 Zirul 32 11 Peninsula InsW Care 36 18 Kenai Munici al Air ort 36 5 HEA 39 13 ~all Park 40 8 Kenai Christian CeMer 42 10 Ke Bank 48 20 Car Quest 48 24 OI a's 50 25 Dan°s N 56 20 Kenai New Life Assembi of God 59 14 First National 60 14 Rositas 60 16 First Ba tist Church 60 12 Petro Ex ress 60 11 EDD 63 14 Louie's 64 20 Ale eska 64 20 Bi Di er 64 14 Joe's Laund 64 16 Willow Street Mall 72 20 ~erit inn 82 20 .lealth Clinic 85 5 Signs in Botd will be non-conforming either for size or height under recommended ordinance. Business Name S uare Foota e Si n Hei ht Comments - Ca~is Jr. gg 24 Tesoro Wiliow St. & S ur H . 90 25 McDonalds 96 20 doesn't inciude arches Wash-n-D 96 24 Paradisos 96 21 Home De ot 98 27 Ski Mo's 100 16 Holida 712 22 Pekin 112 20 Safewa 120 20 NAPA 120 25 Three Bears 128 20 IGA 140 22 Medi-Centee 144 24 City of Kenai -- Planning and Zoning Commission Sampling of signage and dimensions Sign Name Width Height Area October 2005 ~SORTED BY AREA ~eif Hansen 10 4 40 Zirul 4 11 44 -- ~,MethodiSt 9 6 54 _ ___.- HEA __ 5 __ __. _ 11 __ _..__.- 55 Chamber of Commerce 14 4 56 Veterinary 8 7 56; __ ----- Kenai Visitors Center __ 12 __ 5 _-___ 60 Airport 12 5 60 ;Kenai Christian 8 10 ~ Ball Park 11 _ 8 88 Petro Express 9 11 99 Health Clinic 9 11 99 --- __._._ Economic Development .._.__._--- 11 -- -- 13 143 Tesoro 14 11 154 Averages 9.71 8.36 77.71 SORTED BY HEIGHT _ 1 ~eif Hansen 10 4 40 Chamber of Commerce 14 4 56 Kenai Visitors Center IL - - 12 5 60~ _ - - Airport 12 5 60 Methodist 9 6 54 Veterinary -_ ____.- 8 _ 7 _ 56 .._ _ __.. Ball Park 11 8 88 Kenai Christian 8 10 80 Zirul 4 11 44 --_. ___.-_ HEA ._ - __ 5 ____._ 11 __ _ .. 55 Petro Express 9 11 99 'Health Clinic ~__- _ _ _ 9 ._.__ 11 _. -- - 99 -- - - Tesoro 14 11 154 Economic Development 11 13 143 Averages 9.71 8.36 77.71 '~ Suggested by: C%TY OF KENAI NO. 2186-2006 Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AMENDING ESTIMATED REVENLTES BY $3,580 IN THE SENIOR CITIZEN TITLE III FUND AND INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,000 IN THE SENIOR CITIZEN FUND. WHEREAS, at the time the City of Kenai budget was approved by Council, the grant award for the Council on Aging Title III grant, and the United Way allocation had not been approved;and, WHEREAS, the Council on Aging Title III grant award was $3,5801ess and the United Way allocation was $1,000 more than the original budget; and, WHEREAS, due to an increase in the suggested donation for senior meals, an increase in the meal donations budget will off set the reduction in the State grant; and, WHEREAS, the increase in the United Way allocation will be used for food supplies for the Senior Citizen Program. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: Section 1: The following budget amendment be made: Senior Citizen TiUe III Grant Fund State Grant <$3,580> Meal Donations $3,580 Section 2: Estunated revenues and appropriations be increased as foilows: Senior Citizen Ftznd Increase Estimated Revenues: United Way $1,000 Increase Appropriations: Operating Supplies $1,000 Ordinance No. 21XX-2006 Page 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of September, 2006. PAT PORTER, MAYOR ATTEST: Cazol L. Freas, City Clerk Introduced: August 16, 2006 Adopted: September 6, 2006 Effective: September 6, 2006 Approved by Finance:__~~ (O8/09/2006) hl - Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2187-2006 AN ORDINANCE OF THE COUNCIL OF THE CI'I'Y OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $24,630 IN THE GENERAL FUND TO PAY FOR SUPERIOR COURT ATTORNEY'S FEES AND COSTS AWARDED IN THE RECREATION CENTER LITIGATION. WHEREAS, the Superior Court has entered a judgment awarding the plaintiffs Superior Court attorney's fees and costs in Friends of the Recreation Center, Inc., and Mark Necessary, Anita Necessary and Ctifford D. Massie, Individualty vs. City of Kenai, an Alaska municipal corporation, Case No. 3KN-03-503CI; and, WHEREAS, the judgment for Superior Court attorney's fees and costs was for $24,425.77 plus interest of $4.725 per day; and, WHEREAS, AS 09.30.040 provides that while no execution may issue on judgments against a municipality it also provides that municipalities shall pay judgments issued against it; and, WHEREAS, funds are available in the Fund balance of the General Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Appropriation of Fund Balance $24,630 Increase Appropriations: Legal - Miscellaneous $24,630 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sixth day of September, 2006. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: August 16, 2006 Adopted: September 6, 2006 Effective: September 6, 2006 Approved by Finance: ~ I Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2006-50 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, TRANSFERRING $8,000 IN THE AIRPORT FUND TO PURCHASE EQUIPMENT. WHEREAS, the Fire Department needs a pick-up truck to facilitate back up response from the Airport Fire Station; and, WHEREAS, the truck will be used to perform runway checks and other Airport related duties; and, WHEREAS, the Airport Manager agrees that the Airport should share in the cost of the truck; and, WHEREAS, funds are available in the Airfield Operating Supplies account for transfer to the Machinery and Equipment account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: Airnort Fund From: Airfield Department - Operating Supplies $8,000 To: Airfield Department - Machinery 8v Equipment $8,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this sucth day of September 2006. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance:~ (08/25/2006) hl INTEROFFICE MEMORANDUM ll ~l ~ll~. DE~'AR T1~7ENT Date: August 30, 2006 To: City Manager Koch Through: Rebecca Cronkite From: Fire Chief Tilly( Subject: Money transfer (Resolution 2006-50) Rick, This memo is to address Resolution 2006-50 and the transfer of $8,000 from the Airport fund to purchase equipment. This is an agreement between the Fire Department and the Airport Manager that addresses the need for a shared use vehicle. The Fire Deparnnent is in need of a vehicle to be housed at the airport station that will be used for both on aicport and off airport responses. The Fire Department provides runway checks, tapely meter readings, water fowl hazing and general surface report for the airport. The vehicle will be outfitted with the proper radios and equipment to operate in this azea. Additionally the vehicle is needed for off airport responses to fires, cudiac calls, serious motor vehicle accidents and whenever additional manning is needed on scene. It has been determined by the Airport Manager and myself, that the funds requested are not needed for the purchase of additional foam this year and it is agreed that this is a suitable use of the money. If you need any further clarification, please contact me. - ' AGENDA KENAI CITY COUNCYL - REGULAR MEETING AUGU6T 16, 2006 7:00 P.M. KENAI CITY COUNC%L CHAMBERS http: //www.ci.kenai.ak.us %TEN! A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) aze 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. ITEM B: SCHEDiTLED PUBLIC COMMENTS (10 minutes) ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS YTEM E: PUBLIC HEARINGS Ordinance No. 2179-2006 -- Increasing Estimated Revenues and Appropriations by $250,000 in the Airport Fund to Purchase Fire 'IYaining Props and Equipment. 2. Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Reserve I,ands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). 3. Resolution No. 2006-4? -- Supporting the City's Application to the Alaska Department of Envirorunental Conservation SFY 08 Capital Municipai Matching Grant Program for Well No. 2 Water 1Yeatment System Inciuding Water and Sewer Main Connections. 4. Resolution No. 2006-48 -- Directing the Continuation of the Project Entitied "Shamrock Circle" and Designating What Improvements are to be Included in this Project. 5. Resolution No. 2006-49 -- Declaring Equipment, Supplies, and Materials Surplus or Obsolete. 6. 'Liquor License Renewal -- WITIiDRAWAL OF PROTEST -- Kings Inn Property Management LLC d/b/a Kings Inn Hotel, Restaurant, Lounge, LLC (Mr. D's)/License #2457 ITEM F: MINUTES 1. *Regular Meeting of August 2, 2006. ITEM G: UNFIivISFIED BUSINESS ITEM H: NEW BUSINESS Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. °Ordinance No. 2181-2006 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund Library Department for a State Grant. 4. °Ordinaace No. 2182-2006 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Police Departrnent for a State Grant. 5. *Ordinance No. 2183-2006 -- Repealing the Existing KMC 7.30 (Airport Land and Terminal) and Replacing It with a New KMC 7.30 (Airport Sale Permanent Fundj. 6. *Osdinance No. 2184-2006 -- Amending Portions of KMC 1.56 (Kenai Murucipal Library Department) and KMC 1.57 (Library Commission) Regazding Lending Policies, and Replacing the Term "Librarian" with "Library Director." 7. 'Ordinance No. 2185-2006 -- Estabiishing a Central Mixed Use Zone (CMU) at KMC 14.20.125 and Amending the Various Parts of the Kenai Zoning Code by Adding the Provisions to Encompass the New Zone, and Updating Portions of the Land Use Table at KiVIC 14.22.010. 8. *Ordinance No. 2186-2006 -- Amending Estimated Revenues by $3,580 in the Senior Citizen'lYfle III Fund and Increasing Estimated Revenues and Appropriations by $1,000 in the Seruor Citizen Fund. 9. *Ordinance No. 2187-2006 -- Increasing Estimated Revenues and Appropriations by $24,630 in the General Fund to Pay for Attorney's Fees Awarded in the Recreatlon Center Litigation. 10. Approval -- Amendments to City of Kenai Mini-Grant Overview/ Procedures. i i. Approval -- Negotiation of Lease/Alaska Regional Fire 1Yairung Facility by Homer Electric Association. YTEM %: COMMISSIOIV/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report ITEM J: REPORT OF THE MAYOR ITEM K: 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council -- None Scheduled ITEM M: KENAI CI7'Y COUNCIL - REGULAR MEETING AUGUST 16, 2006 7:00 P.M. KENAI CITY COUNCYL CFiANlBERS http: / /www.ci.kenai.ak.us MAYOR PAT PORTER, PI2ESIDING MINUTES YTEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL The City Clerk took roll. Present were: Robert Mollo Mike Bo le Pat Porter, Ma or Joe Moore, Vice Ma or Linda Swarner Rick Ross A quorum was present. A-3. AGENDA APPROVAL SUBSTYTUTE: E-3, Resolution No. 2006-47 -- Supporting the City's Application to the Alaska Department of Environmental Conservation SFY 08 Capital Municipal Matching Grant Program for the Construction of a New Water Transmission Main From Well No. 2, the Construction of a New Sanitary Sewer Main Serving Well House No. 2, Water Treatment System Upgrades, and Other Related Improvements. ADD TO: E-4 -- Resolution No. 2006-48 -- 8/ 14/06 Sarah J. Copple-Blum opposing unprovements to Shamrock Circle. MOTION: Council Member Molloy MOVED for approval of the agenda as amended. Councff Member Moore SECONDED the motion and requested UNAPRMOUS CONSENT. There were no objections. SO ORDERED. A 4. CONSENT AGENDA KENAI CITY COUNCIL MEETING AUGUST 16, 2006 PAGE 2 MOTION: Council Member Moore MOVED to approve the consent agenda as presented and requested UNANIMOUS CONSENT. Council Member Swarnes SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCIiEDITLED PUBLIC COMMENTS -- None. ITEM C: LTNSCHEDULED PUBLIC COMMENTS -- None. ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS -- None. %TEM E: PUBLYC HEARINGS E-1. Osdinance No. 2179-2006 -- Increasing Estimated Revenues and Appropriations by $250,000 in the Airport Fund to Purchase N1re Training Props and Equipment. MOTION: Council Member Swarner MOVED for adoption of Ordinance No. 2179-2006 and Council Member Moore SECONDED the motion. There were no public comments. City Manager Koch reported the following: • A comprehensive list of the equipment and its condition is being developed. • The purchase agreement will be brought to council for approvai. • Administration was confident the equipment is worth far more than $250,000. • Admirustration believes it is in the best interest of the City to purchase the equipment (including computers, controls, etc.) as a component for leasing the facility to another training entity. • The City would recoup the equipment purchase costs through lease amounts. VOTE: Mollo Yes Bo le Yes Porter Yes Moore Yes Swarner Yes Ross Yes MOTION PASSED UNAlVIMOUSLY. KENAI CITY COUNCIL MEEI'ING AUGUST 16, 2006 PAGE 3 E-2. Osdinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Lands), KMC 21.15 (Provisions Requu-ed) and KMC 21.20 (Policy Governing Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 21.10 (I,easing of Airport Reserve Iands) and KNZC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). MOTION: Council Member Swarner MOVED for adoption of Ordinance No. 2180-2006 and Council Member Molloy SECONDED the motion. The public hearing was opened and the following commented on Ordinance No. 2180- 2006: Barry Eidridge, 2679 Bowpicker Lane. Kenai -- Eldridge commented as follows: • Understood it was agreed no business plan would be required that would diwige the applicant's source of capital, customer numbers, etc. ~ • Referring to KMC 21.10.040, he believed a bank would not approve a loan without having an approved lease in hand. • Referring to KMC 21.10.040, Section 3, he believed a site plan should be included. • Referring to KMC 21.10.090 (table), he believed the cost of the lease had been increased, felt it excessive, and a$20,000 cost would be more reasonable. • Continue the option to purchase. • The boundary did not reflect what had been discussed previously by the KEDS group. Discussion followed related to the KEDS suggested boundary. Blaine Gilman, 100 Willow Strect, Henai -- Gilman explained he was representing his client, Salamatof Native Association, Inc. (SNA) and thanked administration and the Airport Commission for their work. He reported SNA had been concerned about the boundary reserve and believe their construction project could go fonvard under either the Administration or Airport Commission's suggested boundaries. Gilman noted, his personal opinion was that because of the growth the city will be facing, compromise would be needed, and, the city should have the right to sell land as some prospective developers may not be interested in long-term leases. There being no further public wishuig to comment, the public hearing was closed. KENAI CITY COUNCIL MEETING AUGUST 16, 2006 PAGE 4 Council comments inciuded: • The boundary map suggested by the consuitants should be provided with a comparison to the boundary currently proposed. • Copies of all modifications should be provided. • Iarge maps showing the suggested boundaries be placed around the room for the September 6, 2006 council meeting. • KEDS should have an official representative present to speak to its recommendations. • Administration should discuss why it recomrnended requiring information (discussed by Eldridge) included in business pians. • Attachment C, KMC 21.15.170(a) related to conveyance -- Direct conveyance of parcel(s) by ordinance instead of resolution (which, through the process, wouId allow a longer amount of time for consideration). • Request to Admuustration to provide information related to how requu-ed business plans would be protected under public records law (KMC 21.10.090). Attorney Graves noted he was drafting language to that effect and would be bringing it to the Cominission for review. MOTION TO POSTPONE: Council Member Moore MOVED to postpone action on the ordinance until the next council meeting and Council Member Molloy SECONDED the motion. Mayor Porter asked if Moore wanted to allow for an additional public hearing as well and Moore answered yes. VOTE ON MOTION TO POSTPONE: Mollo Yes Bo le Yes Porter Yes Moore Yes Swarner Yes Ross Yes MOTION PASSEI9 UNAIVIMOUSLY. E-3. Resolution No. 2006-47 -- Supporting the City's Application to the Alaska Department of Environmental Conservation SFY 08 Capital Municipal Matching Grant Progsam for Well No. 2 Water 1Yeatment System Including Water and Sewer Main Connections. E-3a. Substitute Resolution No. 2006-4'7 -- Supporting the City's Application to the Alaska Department of Environmental Conservation SFY O8 Capital Municipal Matching Grant Program for the Construction of a New Water Transmission Main From Well No. 2, the Construction of a New Sazutary KENAI CITY COUNCdL MEETING AUGUST 16, 2006 PAGE 5 Sewer Main Serving Well House No. 2, Water'IYeatment System Upgrades, and Other Related Improvements. MOTION: Council Member Molloy MOVED to adopt Substitute Resolution No. 2006-48 and Council Member Moore SECONDED the motion. There were no public comments. City Manager Koch expiained the originai resolution spoke at length about treatment of water to remove color at Well No. 2; he believed the removal of color in the water was secondary and would not offer a compelling reason to rank the application high for funding; and, the inain compelling reason for funding is to bring in a second line into the city and replace the old asbestos line. He added, the second transmission line would assist in upgrading the water quality. VOTE: Mollo Yes Bo le Yes Porter Yes Moore Yes Swarner Yes Ross Yes MOTION PASSED UNANIMOUSLY. E-4. Resolution No. 2006-48 -- Directing the Continuation of the Project Entitled "Shamrock Circie" and Designating What Improvements are to be Included in this Project. MOTION: Council Member Moore MOVED for approval of Resolution No. 2006-48 and Council Member Swarner SECONDED the motion. Sarah Copple-Blum, 1?l? E. Aliak, Lot 2-- Because her property has no direct access from Shaznrock Circle, she requested her property be exempt from the assessment. She suggested the cost of what would be her assessment be recouped through property tases of the properties accessed by Shamrock Circle. Discussion followed with comments including: • Concerns the number those signing the petition were not a large majority of the property owners. • Comer lots aze always an issue. • Experience with other corner lots in paving projects has been ihe remaining property owners in the proposed district have divided the cost of the corner lot between them. KENAI CITY COUNCIL MEETING AUGUST 16, 2006 PAGE 6 • One of the properties is being sold and both the realtor and the current owner have discussed the process with administration. • It is not appropriate the city participate in discussions between the property owners related to the possibility of dividing the corner lot costs. MOTION TO TABLE: Council Member Moore MOVED to table Resolution No. 2006-48 until such time Administration thinks it should come back for consideration. Council Member Ross SECONDED the motion. VOTE: Mollo Yes Bo le Yes Porter Yes Moore Yes Swarner Yes Ross Yes MOTION PASSED UNANIMOUSLY. E-5. Resolution No. 2006-49 -- Declaring Equipment, Supplies, and Materials Surplus or Obsolete. MOTION: Council Member Molloy MOVED to approve Resolution No. 2006-49 and Council Member Boyle SECONDED the motion. There were no pubiic or council comments. VOTE: Mollo Yes Bo le Yes Porter Yes Moore Yes Swarner Yes Ross Yes MOTION PASSED UNAIVIMOUSLY. E-6. Liquoz License Renewal -- WITHDRAWAL OF PROTEST -- Kings Inn Property Management LLC d/b/a Kings Inn Hotel, Restaurant, I.ounge. LI.C (Mr. D's)/License #2457 Approved by consent agenda. YTEM F: MINUTES KENAI CITY COUNCIL MEE'1'ING AUGUST 16, 2006 PAGE 7 F~1. Regulaz Meeting of August 2, 2006 -- Approved by consent agenda. ITEM G: ITNFIDiISHED BUSINESS -- None. ITEM H• NEW BUSINESS H-1. Bills to be Ratifled MOTION: Council Member Swarner MOVED to approve the payments over $15,000 and requested UNAivIMOUS CONSENT. Councll Member Moore SECONDED the motion. VOTE: There were no objections. SO ORDERED. H-2. Approval off Purchase Orders Escceding $15,000 MOTION: Council Member Swarner MOVED to approve the purchase orders exceeding $15,000 and requested UNADiIMOUS CONSENT. Council Member Moore SECONDED the motion. VOTE: There were no objections. SO ORDERED. BRF.AK TAKEN: 8:03 P.Me BACK TO ORDER: 8:14 P.M. H-3. Ordinaace No. 2181-2006 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund Library Department for a State Grant. Introduced by consent agenda approval. H-4. Ordinance No. 2182-2006 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Police Department for a State Grant. Introduced by consent agenda approval. KENAI CITY COUNCIL MEETING AUGUST 16, 2006 PAGE 8 FI-5. Ordinance No. 2183-2006 -- RepeaIing the Existing KMC 7.30 (Airport Land and Ternunal) and Replacing It with a New KMC 7.30 (Airport Sale Permanent Fund). Introduced by consent agenda approval. H-6. Ordinance Na. 21842006 =- Amending Portions of KMC 1.56 (Kenai Municipal Library Department) and KMC 1.57 (Library Commission) Regazding Lending Policies, and Replacing the Term "Librarian" with "Library Director." Introduced by consent agenda approval. H-?. Ordinance No. 2185-2006 -- Establlshing a Central Muced Use Zone (CMU) at KMC 14.20.125 and Amending the Various Parts of the Kenai Zoning Code by Adding the Provisions to Encompass the New Zone, and Updating Portions of the I,and Use Table at KMC 14.22.010. Introduced by consent agenda approval. H-8. Ordinaace No. 2186-2006 -- Amending Estimated Revenues by $3,580 in the Senior Citizen 11t1e III Fund and Increasing Estimated Revenues and Appropriations by $1,000 in the Senior Cit3zen Fund. Introduced by consent agenda approval. H-9. Ordinance No. 2187-2006 -- Increasing Estimated Revenues and Appropriations by $24,630 in the General Fund to Pay for Attorney's Fees Awarded in the Recreation Center Litigation. Introduced by consent agenda approval. Ii-10. Approvai -- Amendments to City of Kenai Mini-Grant Overview/ Procedures. MOTYON: Councff Member Swarner 1ViOVED to approve the Amendments to the city of Kenai Mini-Grant Overview/Procedures and requested UNAPtIMOUS CONSENT. Council Member Moore SECONDED the motion. VOTE: There were no objections. SO ORDERED. KENAI CITY COiJNCIL MEETING AUGUS'1' 16, 2006 PAGE 9 H-11. Approval -- Negotiation of Lease/Alaska Regional Fire 1Yairung Facility by Homer Electric Association. Discussion followed related to a request made by Molloy to delay the approval of the lease negoGation to allow time for City Manager Koch to meet with the educational subcominittee of the KEDS Team. Comments inciuded: • A task of the subcomrnittee is to work with the city to eacplose the possibility of situating a vocational school in Kenai. • Reasonable to discuss the possibility with the group as an alternative, but would want a comparable equivalent value return and if it is not, the city manager should go forward with the Homer Electric Association. Inc. (HEA) proposal. • The city would perform the snow removal and maintenance, but the city would be reimbursed for those e~cpenses. • HEA's board has allocated funding and want to move in between September 1 and 15 if council aggress to the $55,000/year rent. • No previous discussion had been held with the subcomrnittee. • The initial term would be for three years with mutually agreed two-year extensions as well as an escalation ciause included based on fair mazket value. • A tour of the facility as a consideration for charter school was held, but it was four.d the facility and the fire training activities would not be compatible. • Concerns were expressed a lease with HEA could possibly tie the availability of the buiiding up for three to seven years. MOTION: Council Member Moore MOVED to authorize the City Manager to negotiate a three to seven-year lease with Homer Electric Association for approximately 3,800 square feet of the Alaska Regional Fire 1Yaining Facility. Council Member Swarner SECONDED the motion. VOTE: Mollo No Bo le No Porter Yes Moore Yes Swarner Yes Ross Yes MOTION PASSED. ITEM I: COMMISSYON/COMMITTEE REPORTS I-l. Councii on Aging -- Council Member Molloy referred to the meeting summazy included in the packet and reviewed actions/discussions taken at the August 3 meeting. KENAI CPl'Y COUNCIL MEETTNG AUGU5T 16, 2006 PAGE 10 I-2. Airport Comasission -- Councll Member Molloy referred to the meeting summary included in the packet and reviewed actions/discussions taken at the August 10 meeting. %-3. Iiarbor Commission -- The meeting was cancelled and the nelct meeting is scheduled for September 11. 2006. I-4. Library Commission -- Council Member Molloy reported the meeting summary was included in the packet and noted, no quorum was available. All were reminded of the open house planned for FYiday, August 18 in honor of Linda McNair's retirement. I-5. Parks 8c Recreation Comaussion -- Council Member Moore referred to the meeting summary included in the packet and reported there was no quorum available for the August 3 meeting. I-6. Planning & Zoning Commission -- Council Member Moore referred to the minutes of the August 9 meeting (included in the packet) and reviewed actions taken. Mayor Porter recommended the appointrnent of Roy Wells to the Planning & Zoning Cominission. Council stated no objections. I-7. Miscellaneous Commissions and Committees Y-7a. Besutificatlon Committee -- Mayor Porter referred to the meeting suuimary of the August S meeting and reviewed actions and discussions. I-7b. Alaska Municipal League Report -- Council Member 5wamer reported she and Mayor Porter attended the AML summer meeting in Homer and reviewed issues discussed. She also noted Kathy Wasserman, former mayor of Pelican, was appointed as the new executive director. ITEM J: REPORT OF THE MAYOR -- Mayor Porter reported the following: • She, Council Member Swarner and representatives of city admiriistration participated in a tour of the Pebble Mine Project. • The Industry Appreciation Picnic will be held on August 26. ITEM K: ADNSINISTRATYON REPORTS ~-1. City Manager -- City Manager Koch noted the following: • Requested council to contact him or Attorney Graves regazding suggested changes to the Airport Reserve boundary and amendments to 'IYtle 21. KENAI CITY COUNCIL MEE'I°ING AUGUST 16, 2006 PAGE ll sealed bid). The proposed date for the city auction is September 16 (either auction or H-2. Attorney -- Attomey Graves noted Admuustration is drafting a code amendment ordinance related to mobile homes and trailer parks. The ordinance will be reviewed by the Planning & Zoning Commission prior to being presented to council. K-3. City Cierk -- Clerk Freas noted the following: • A special Airport Commission meeting will be heid on Monday, August 21. 2006, beginning at 3:00 p.m. • The candidacy period for election of council seats ended on August 15 and the candidates for the two three-yeaz term seats are Rick Ross and Robert Molloy (encumbentsj, and the candidates for the one, one-yeaz seat are Bany Eldridge and Anthony Lewis. ITEM L: DYSCUSSION L-1. Cit3zens -- None. L-2. co,mcil -- Boyle -- Stated his concerns of making major changes to what the airport consultants recommended in their review of the airport code. Molloy -- No comments. Ross -- No comments. Swarner -- • Requested maps be available for review related to the suggested Airport Reserve boundary at the Special Airport Commission meeting and the Council meeting when the amendments to the code will be addressed. Food Bank Soup Supper tickets are available. Moore -- Stated concerns related to the LID process and suggested a code amendment be considered to address corner lots. EXECUTIVE SE5SION -- None Scheduled ITEM M: There being no further business before the Councll, the meeting adjoumed at approximately 8:45 p.m. KENAI CITY COUNCIL MEETING AUGUST 16, 2006 PAGE 12 Minutes submitted by: Carol L. Freas, City Clerk I ~ J ~ O ~ a a ¢ J U z ~ O U ~ W W z o U N z ui ~S ~ °o m O W O ~- P W ~ y Q' W a ~: y o W ~ 7 Z ' L ~ a W W ~ Q J = U ~ O a c> K 0 Z w > 0 0 0 0 0 0 R O M OJ O (O o] O OJ V ? tD N ~D ~ a ~ a w a6 } ~ W Z T U ~ ua U ~ ~ W y ~ O K 0. a ~ a w o~y } ~ W Z S U ~ ~ W U O a 2 O N ~ W a w N N ~ ~ O LL ~' W h= 2 O ~ LL } z Z O ~ ~ w ~ w U Q2 W F 2 ~ W U w U d 0 w ~ ~ Y U ~ ~ 0 u~ LL Y V ~ m U Q Z O d ~ w ~ ~ ~ a J 4 H O r ~ z a 0 ~ a ~ LL O a O O a > - ~ ~ d ~ ~ W ~ ~ Z ~ ~ ~ ~ o N ~ ~ ~ N ~ 1 ~ Q N O N W U ~ O Z ~ O ~°n ~ Z ~ m ~ ~ a' Z } - N ~ I- 'J S J W f Q J 1 ~ r z W a w ~ (n N fn o ~ Q O O O j ~°,~ p a a ~ > ~ > ~ > ~ ~ ~ ~ t= U W 2 tL d ~ a ~ ~ ~ z Z u w ~ ~ z 4 ~ p N Z a g ~ w w t0 O ~ `~ ~ -' Z v~ ~ ~ W m7 a ~ ci ~ W V F F a O = U~ U ~ F- U U U' w rn o c~ ¢ a W w y ~ ~ a u i w o ~ ~ °o N 0 o .. 0 r ~ ~ ~+ C9 O W ? U U ~ W O W z ? ~ ~ w -" F~ .y a p~p J ~ N ..... W ~ Ua. ~ O v u1 W W ~ KQ ~ = 4 U Z > ~ ~ ~ ~ ~ W Z ~ Z ~ 0 . ? > 1 1• Suggested by: Admuiistrat CITY OF I{ENAI NO. 2188-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $500 IN THE GENERAL FUND TO PURCHASE LIBRARY BOOKS. WHEREAS, the Vanguard Charitable Endowment Program has given the Kenai Library a$500 grant to purchase books; and, WHEREAS, it is in the best interest of the City of Kenai to accept this grant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Miscellaneous Donations $S00 Increase Appropriations: Library - Books $500 PASSED BY THE COUNCIL OF THE CIT'Y OF KENAI, ALASKA, this 20~ day of September, 2006. PAT PORTER, MAYOR ATTEST: Cazol L. Freas, City Clerk Introduced: September 06, 2006 Adopted: September 20, 2006 (~ Effective: September 20, 2006 Approved by Finance:_!1~-"~- (08/ 16/2006) hl ! Suggested by: Aummistranon CITY OF KENAI ORDINANCE NO. 2189-2006 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $16,000.00 IN THE GENERAL FUND FOR A HOMELAND SECURITY GRANT TO FUND A REWRITE/REVISION OF THE CITY OF KENAI EMERGENCY OPERATIONS PLAN. WHEREAS, under the 2005 State Homeland Security Grant Program, the Kenai Peninsula Borough requested and received $80,000 to fund rewrites/revisions of local Emergency Operations Plans (Emergency Response Plans) for the Borough and the Cities of Kenai, Sewazd, Homer and Soldotna; and, WHEREAS, revisions of longstanding local Ciry plans are needed to accommodate current disaster mitigation, response and recovery planning requirements; as well as include communiry response resources, functional plan annexes, and hazard-specific appendices; and, WHEREAS, the Kenai Peninsula Borough is unable to coordinate this effort on behalf of each City, but is able to provide reunbursement up to $16,000.00 per City upon receipt by the Borough of a completed local Plan and eacpenditure documentation; and, WHEREAS, it is in the best interest of the City to utilize these funds to update our Emergency Operations Plan. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General blxnd Increase Estimated Revenues: State Grant $16,000 Increase Appropriations: Police - Professional Services $16,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of September, 2006. PAT PORTER, MAYOR A1"I'EST: Carol L. Freas, City Clerk Introduced: September 6, 2006 Adopted: September 20, 2006 Effective: September 20, 2006 Approved by Finance:~ (09/O1/2006) jl j "~'l(a~e wit~i a Past, Gi~ w~~~i a Future `° .~;,~ ~~_ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 _~__~ ~ Telephone: (907) 283-7535 / Fax: (907) 283-3014 www.ci,kenai.ak.us \ thea~of KENA~ SKA August 30, 2006 ----- Scott Walden; Coordinato~---------__ Kenai Peninsula Borough Office of Emergency Management 253 Wilson Lane Soldotna, Alaska 99669 RE: ERP REVISIONS - 2005 SHSP GRANT REIMBURSMENT Mr. Walden, The City of Kenai is currently in discussions with Elise DeCola from the Nuka Reseazch and Planning Group LLC, to enter into an agreement for the review and re-write of the ' City of Kenai's Emergency Response Plan. It is our intenYion to begin this process as eazly as possible. The purpose of ihis project is to update and revise the City of Kenai's Emergency Response Plan to facilitate collaborative incident management and to conduct an exercise with the revised Plan. If funding permits, the consultant may be asked to develop a local fieid operations guide (FOG) - a durabie pocket or desk guide that contains essenrial information required to perform speci5c assignments or functions. Nuka Research will conduct a complete review of existing State of Alaska, Kenai Peninsula Borough, and City of Kenai planning documents and create a collaborative, dynamic "master" Emergency Operations Plan (EQP) that will dovetail with other local govemment Plans. Upon compietion of the Master EOP, Nuka Research would be available to present the final pian to the Kenai City Council. It is my understanding that there are fvnds available through your office from the 2005 SHSP Homeland Security Grant awazded to the Borough on behalf of the Cities of Soldotna, EIomer, Sewazd and Kenai to contract with a consultant to rewrite City Plans. The City of Kenai intends to enter into an agreement with Nuka Research and have a completed Plan revision and exercise completed by July 2007. The City intends to enter into the contract on September 20, 2006 and to appropriate City funds to proceed with the contract. Upon sigung the contract with Nuka Reseazch and encumbering City funds for this contract, the City will request reimbursement through the Borough from the 2005 SHSP Homeland Security Grant for a"not to exceed" amount of $16,000. If you have any questions please contact me at your earliest convenience. Sincerely, CTI'Y OF KENAI __ _ _____---_ __---_- _ _ _ _ _ _ __ __ _ _ . _ ck och City Manager Attachments: April 17, 2006 Lettez from KPB OEM, inciudes exceipt from 2005 SHSP Grant Priority #3. // . . . . ~ .r V lla~e wlt~i a Past G~t~ wltti ~ ,~ ~,~ti 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ~ -~~ ~~ Telephone: (907) 283-7535 / Fax: (907) 283-3014 - www.ci.kenai.ak.us ~~ t~rea'yaf ~~ KENAI. ALASKA U MEMORANDUM TO: Mayor and Council Members FROM: Carol L. Freas, City C e~ DATE: August 23, 2006 RE: OCTOBER 3, 2006 CITY GENERAL ELECTION Etection Board Approval Following are the people who have agreed to work on the Election Boards for Precincts 1, 2, and 3 in the City of Kenai. Kenai No. 1, 33/710 Kenai No: Z, 33/?20 Kenai No. 3, 33%73U Ma Tro Castimore, Chair A. Susan Smalle , Chair Kari Mohn, Chair Diane Crai Lucille Barton Christine Cook Marion R. Austin Ronald Fullinck Katherine E. Philli s Elizabeth M. Meier Deborah A. Fullinck Arnold E. Wa aman Rusti K. Kelse KMC 6.05.040 states the City Councll appoints the members of the election board. Does Councii wish to appoint tfiese persons as election board members for the October 3, 2006 Citg of Kenai/Kenai Peninsuia Borough etection? _ MEMORANDIJM TO: Rick Koch, City Manager rROM: Mary Jo Joiner, Library Director ~'Na~ c`o ~ovx,uJ DATE: August 28, 2006 SUBJECT: Proposed Library code and regulation changes. There are three items pertaining to the library in the City Council packet for their meeting on September 6. One is regarding some changes in the City Code and the others include changes to the library regulations and policies that appear in an appendix Co the City Code. All of these changes were voted on and approved by the Library Commission. The changes proposed in the code are: An across the board change in the language that refers to "Librariad' to "Library Director." This reflects the actual title of the position. Section 1.56.025 (and again in 1.56.045) shows a change in the limit of fines that a cardhoider may have before their library privileges are cut off. The previous limit was $5. The proposed new limit is $10. The reasoning behind this is that it is pretty easy to rack up $5 in fines and late fees and folks do not always have cash on them when they come to the library. Curtailing their use of computers and abiliry to check out materials for such a small amount merely makes them ftustrated and angty. It was felt that the limit of $10 was a more reasonable cut-off number. Section 1.56.045. This section also deletes language that, in effect, "blackballed" an entire family for one family member's bad habits. I[ is not deleted merely for fairness reasons. After consulting with the city attorney, we felt that defining "family group" is problematic. Section 1.57.010 changes language in (e) more properly referring to the Friends of the Kenai Library rather than the Kenai Library Board. The changes in the library regulations are as follows: Seetion 1. b. Currently new borrowers may eheck out one (1) item on theic ficst visit to the library. We hope to change this to two items (2) untit receipt of their card in the mail. We propose to eliminate the limit of four (4) items per check out `afrer receiving the cazd.' Section 2. We would prefer to title this section `LaYe fees' rather than `Fines'. Fines have a punitive connotation. Late fees are something that the bonower creates by their own behavior. Section 2. b. We want to make the uniform late fee for books, etc. Che Cen ($0.10) per day referred to in 2.a. This is easier for staff and borrowers to cope with. We are reducing the late fees for videos and DVDs to one dollar ($1.00) per day from the previous three dollars ($3.00). LIBRARY REGULATIONS i. BORROWERS' CARDS a. All transactions will require Yhe presence of a valid library identi£ication card which wili be issued to a resident filing an application, and accepting responsibility for the usage thereof. No cazd will be issued to a minor under eighteen (18) years of age unless the application, and acceptance of responsibility, is signed by the minor and also by a pazent or legal guazdian. The responsible adutt must be a cunent cardholder and be willing to assume the responsibility for the minor for misuse or abuse of the privileges of library usage. b. Upon application for a card, the borrower will be permitted to check out [ONE (1)~ two ~ items [AFTER RECEIVING THE CARD THROUGH THE MAIL, THE BORROWER MAY CHECK OUT AS MANY AS FOUR (4) ITEMS EACH LIBRARY VISIT IF ALL MATERIALS PREVIOUSLY LOANED HAVE BEEN RETURNED AND NO FINES, CHARGES, OR PENALTIES ARE NOTED ON LIBRARY RECORDS] until receipt of their cazd in the mail. c. Where privileges have been suspended on a card of a minor, privileges on a card of a pazent or legal guardian with legal custody of the minor may be suspended by giving prior written notice of suspension to such parent or a legal guardian at the address on the library record, and will remain in effect until the overdue materials have been returned, and/or the fines, charges, or penalties on the suspended cazd have been paid in fulL 2. [FINES] LATE FEES a. Ten cents ($0.10} per day on four (4) week books. b. [TWENTY-FIVE CENTS ($0.25) PER DAY ON FOURTEEN (14) DAY BOOKS AND/OR OTHER LIBRARY MATERIALS SUCH AS MAPS, PERIODICALS OR AV MATERIALS.] One dollar ($1.00 per dav on videos, DVD's and non-book materiais. c. Three doilars ($3.00) per day on [NONBOOK MATERIALS SUCH AS VIDEOS, DVDS,] cassette players, screens or projectors. d. The MaYimum fine accrual per item is set at ten dollazs ($10.00). 3. SERVICE CHARGES a. Ten dollars ($10.00) handling chazge for books or other materials that aze lost or damaged beyond repair. This is in addition to full replacement costs. If the current price of the item is unavailable, defauit replacement costs are as follows: Twenty-five doilars ($25.00) for Adult Fiction AMENDED KENAI COMMUNITY LIBRARY REGULATIONS AND POLICIES Page ( of 6 Thirty-tive dollars ($35.00) for Adult Non-fiction Thiriy-Tive dollars ($35A0) for Alaska Fiction Forty-t3ve dollars ($45.00) for Alaska Non-fiction Fifteen dollars ($15.00) for Juvenile Fiction Twenty-five dollazs ($25.00) for Juvenile Non-fiction Fifteen dollars ($15.00) for Easy Fiction Twenty-five dollars ($25.00) for Easy Non-tiction Twenty doltars ($20.00) for Music CD Five dollazs ($5.00) for Periodical Forty dollazs ($40.00) for CD-ROM Forty-five dollazs ($45.00) for Government Document Twenty doliazs ($20.00) for Audiocassette Twentv-five dollars ($25.00) for Videos and DVD's. b. Five dollars ($5.00) handling chazge for damaged books that may be rebound, in addition to rebind chazges. [ C. TWO DOLLARS ($2.00) FOR EACH MAZLED NOTICE OR TELEPHONE CALL THAT IS NECESSARY TO EFFECT RETURN OF OVERDUE BOOKS AND/OR OTHER LIBRARY MATERIALS, OR SETTLEMENT OF OTHER CHARGES.] 4. REPLACEMENT CHARGES a. One dollar ($1.00) for each library identifier/bazcode. b. Two dollars ($2.00) for lost library cazd. a Three doilars ($3.00} for record sleeves, hang-up bags or AV or cassette containers. 5. DAMAGES a. Two doilazs ($2.00) per page for torn or defaced pages or covers. (Pages or covers containing scribbling, writing or pages that have been mended with scotch tape or like material AMENDED KENA1 COMMUNITY LIBRARY REGULATIONS AND POLICIES Page 2 of 6 are considered defaced.) The charee shouid not exceed the aceual cost or replacement cost of the item. b. If librazy materials are damaged to the extent that any parts of them aze illegible, chazges under paragraph 3(a) above will be applicable: [6. LIMITED CIRCULATION] [MATERIALS DESIGNATED "LIMITED CIRCULATION" ARE TO BE LOANED ONLY TO BORROWERS WITH RESPONSIBLE LIBRARY USAGE FOR THE IMMEDIATE PAST SIX (6) MONTHS. A FIVE DOLLAR ($5.00) CHARGE WILL BE IMPOSED IF ANY SUCH BOOK IS DEPOSITED THROUGH THE BOOK DROP.] [7]6. RENEWALS Books and/or other librazy materials may be renewed in person, on-line or by telephone once if not reserved. [8]7. USE OF LIBRARY CONFERENCE ROOM Use of the librazy conference room is limited to general govemment and library related events or meetings. [9]8. EXHIBITS Only govemmental or library related exhibits may be displayed at the library. AMENDED KENAI COMMUNITY LIBRARY REGULATIONS AND POLICIES Page 3 of 6 KENAI COMMUNITY LIBRARY POLICIES [THE KENAI COMMUNITY LIBRARY WILL ENDEAVOR:] [ A. TO PROVIDE FREE SERVICE TO EVERY RESIDENT IN THE COMMUNITY. B. TO SUPPORT THE LIBRARY BILL OF RIGHTS AND THE AMERICAN LIBRARY ASSOCIATION FREEDOM TO READ STATEMENT. C. TO ASSEMBLE, PRESERVE, AND ADMINISTER BOOKS AND/OR OTHER LIBRARY MATERIALS. D. TO SERVE THE COMMUNITY AS A CENTER OF RELIABLE INFORMATION. E. TO PROVIDE NONRESIDENTS THE SAME SERVICES. F. TO HAVE THE LIBRARY OPEN SEVEN (7) DAYS A WEEK FOR AT LEAST A TOTAL OF FIFTY-NINE (59) HOURS.] The mission of the Kenai Communitv Librarv is to provide a comfortable and friendlv environment in which the public mav: a. Have a reasonable expectation that thev wiil leave the building with what thev came for; b. Relax and read current materials• c. Receive knowiedQeable assistance and answers to questions: d. Pursue oonortunities for lifelon~ leaming; e. Find professionally selected materials in all formats for personai enjoyment; f. Eniov programs or nerformances; g. Have access to technolo~ical resources. In sunnort of this mission, the librar~provides individualized assistance, communitv outreach, professional expertise, and current technologies for equal access to facilities, qualitv services, and materials in a varietv of formats. AMENDED KENAI COMMUNITY LIBRARY REGULATIONS AND POL[CIES Page 4 of 6 The Kenai Communitv Librarv will endeavor to: a. Provide service to every resident in the communitv; b. Provide non-residents the same services• a Have the librarv open seven (71 davs a week for at least a total of fiftv-nine (591 hours. The librarv supports the Librarv Biil of Rights of the American Librarv Association Freedom to Read statement. The librarv's mandate is to provide the public with access to information on all sides of an issue. MATERIALS Books and other library materials will be added to the present collection to provide information, entertainment, inteliectual development and enrichment to all the people of the community. PERSONNEL Salary schedule, holidays, vacation and sick leave shall conform to those rules outlined in the Personnel Regulations of the City of Kenai. BUDGET, OPERATIONAL The budget shall be presented to the City by the Library staff. BUDGET,CAPITALIMPROVEMENTS The initiation of a budget for Capital Improvements shall be done by the Library Commission andthe Library Staff. BOOK SELECTION The Library Commission recognizing the pluralistic nature of this community and the vazied backgrounds and tfie needs of the citizens, declares as a matter of book selection policy that: AMENDED KENAI COMMUNITY L[BRARY REGULATIONS AND POGICIES Page 5 of 6 a. Books and/or other library material selection are and shall be vested in the librarian. Any book and/or library material so selected shall be held to be selected by the Commission. b. Selection of books and/or other library material shall be made on the basis of their value of interest, information, and enlightenment of all the people of the ccrmmunity. No book and/or library material shall be excluded because of the race, nationality or the political or social views of the author. c. This Commission believes that censorship is a purely individuai matter and declares that while anyone is free to reject for himself books of which he does not approve, he cannot exercise this right of censorship to restrict the freedom to read to others. d. This Commission defends the principles of the freedom to read and deciares that whenever censorship is involved no book and/or library material shall be removed from the library save under the orders of a court or competent jurisdiction. e. This Commission adopts and declares that it will adhere to and support: The Library Bill of Rights, and 2. The Freedom to Read Statement adopted by the American Library Association, both of which are made a part hereof. Gifts will be accepted with provisions as to addition to the collection upon examination of materials. Non-usable gifts will be given the disposition that is of most value to the library. PUBLIC RELATIONS Cooperation will be given to other libraries to advance the usage of all libraries and to provide additionat services to the readers of our community, and to publicize the value of library services to all. AMENDED KENAI COMMUNITY LIBRARY REGULATIONS AND POLICIES Page 6 of 6 ~~ TO: Rick Koch, City Manager Carol L. Freas, City Clerk Larry Semmens, City Finance Director FROM: Keith Komelis DATE: August 25, 2006 RE: Aagler Drive LID The following information is for the City Managers Report as per KMC 16.10.010: PR__OPOSED IMPROVEMENTS AND SCOPE This project is to provide mad and drainage improvements to Angler Drive from Beaver Loop Road to terntinus. The impmvements include engineering design and inspection, excavation, grading and backfill, leveling course, draiaage improvements, asphalt paving, topsoil and seeding, and signage. Paving this road will decrease the road maintenance cost by eliminating dust control and summer time grading. It will also impmve the drainage. ESTIMATED COST OF THE PROPOSED IMPROVEMENTS The estimated mugh cost estimate for this pmject is $728,000. If the city council decides to proceed with these proposed impmvements I wouid recommend usiag the rem +~g Municipal Matching Grant funds and the recendy received FY 2006 State Designated Legislative Grant for Kenai Road and Sewer Improvements. ff additional funds are needed the General Funds could be used or the pmject postponed until additional gaut funds are received. City Resolution No. 2003-02 states thaf the assessment rate will be 50%. Aitached is "ANGLER DRIVE LID" dated 7/17/2006. It designates the pmperiy owners name, KPB assessment pascei #, and both the physical street and the legal address. Also attached is a drawing of the proposed LID that shows the lot numbers, street addresses, and owner's name. / ~C ~ I ~ ,_~ 6~9 ' s~~ °°~ 757 i ~~ 3Qqp ' ~ 3938 625 ~ 620 ~ 755 3713 I 7t5 ~ 710 \ 7W 1 805 ; 850 ~65 805 785 837 ~ 900 805 3720 3Q50 1705 ~/ 3620 a ~ 920 909 855y+ ,.. 3329 r,. ~ 1755 3520 100~ 11 n.A 9 3456~ ~ eec F09ter FOSter 94S ~ ~ VoM 9010 ' , 3073 ~ Cowen ~10 1035• s7L Votb ~ 1045~ /~ VoW ° 1105'~ Lowe~ Cowm 1050 1115~/!/ Arne~ 1125• Johnson 1135' . Haak Andersen ~»p ~~q5~• Maautla ~ 1205~~ Cedros ~0'"'° 1730 1215~~ HoRan .. ~~ 1225 Leo .. L~~ ~Z~ ~'Z~ S10dya 3136 C~y of Kenai Rfddle 130.5" Nv Fretr 1310 1375~. 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U v 1 i ~Q~y VJ~ Q ~- ~" ~~ f~ ~ o W i~ ~ ~ . . ~~zwo 3 ~, 3w QI ~JION~~a{^!~WIOWO ~ ~- a I ! a ~j 2 2:Z ~ O W ~ U~N J~ Y6'~Y~S(.9q5ZVW7~Y2~lYQ~ '^ ~ ~' m mi m ~ Q' m a o'I m rn rn f N i / ~ql Q% Y ¢ K; y I OI Q ~ ~ w; i I i ~~ ~! ~ Q I Z ~, WI I- Zi p F }I - U a O l W UI Q~ Y I WI; O I Q' W ~ ' I ~I ~ W f q J I ~ ~ 7 Q ~ N W ~ I O, ~n J O ~ ~i ~ ~ al o 0 a ~ ~i N M~ a N I I , i ~ I U Z I i~ Q ~,Y U W ~ Vi ! I ~ ~ I W W ~ ~ J'' K 4~ W I Q q$ ' Q I :~ W ~ ' F - _ UI W ~ ~~ m ~ ~ ', U O I ~ ~ f ~ K Q} ~ W W Z O .O}=i Y a Q W ~ ~i m~ i ~ m ~ ~ ~ ~ I N ~ Q t 0 , I i ~ ~ ~~~ I W ~~ ~ W ~ >0 ~ ~~ >pl W ~' in ¢i m~ m~ ¢ a 9 Q ' oI o ~ m ao' h~ ~ N ~ ~ ~ OI ~ p~ O O N ~ ~ Ni (O I OI ~ y A ~i M ~ ~i ~N N ~ I i ~ I m Y ~ i I V Ni ~~ ~~ Oi tOl C O~ O N I I pMjl I mi m ~') Q ~• 1 P. ? CI C VI O~ V O 0 0 r n a m a - CITY OF KENAI PLANNING & ZONING CONIMI3SION AGENDA August 23, 2006 - 7:00 p.m. 1. CALL TO ORDER: a. Roll Call b. Agenda Approval c. Excused Absences • Commissioner Jenckes d. Consent Agenda *All items listed with an asterisk (*) aze considered to be routine and non-controversial by the Commission and will be approved by one motion. There wiil 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. 2. *APPROVAL OF MINUTES: a. *August 9, 2006 3. SCHEDULED PUBLIC COMMENT: 4. CONSIDERATION OF PLATS: a. PZ06-61- Preliminary Plat - Bookey's Replat. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. b. PZ06-62 - Preliminary Plat - Original Townsi[e of Kenai - Tomrdle Repiat. Plat submitted by Segesser Surveys, 30485 Rosland Street, Soldotna, Alaska. 5. PUBLIC HEARINGS: 6. OLD BUSINESS: 7. NEW BUSINESS: a. KMC 14.20.105 - Townsite Historic (TSH} Zoning District - Discussion 8. PENDING YTEMS: 9. REPORTS: a. City Council b. Borough Planning c. Administration 10. PERSONS PRESENT NOT SCFIEDULED: Aeenda Page 2 ~ August23.2006 11. INFORMATION ITEMS: a. Zoning Bulletin (8J10106) 12. COMMIS5ION COMMENTS & QUESTIONS: 13. ADJOLJRNMENT: CYTY OF KENAI PLANriING & ZOTRNG COMMISSION IVIEETING AUGUST 23, 2006 7:00 P.M. CHAIR BARRY ELDRIDGE, PRESIDING MINUTES YTEM 1: CALL TO ORDER Chair Eldridge called the meeting to order at approximately 7:00 p.m. 1-a. Roll Call Roll was confirmed as follows: Commissioners present: S. Romain, B. Eldridge, P. Bryson. R. Fullinck, J. 'Itvait Commissioners absent: J. Jenckes Others present: Councii Member R. Ross, Planning Departinent Assistant N. Carver, Contract Secretary B. Roper A quorum was present. 1-b. Agenaa approvai MOTION: Cominissioner Romain MOVED to approve the agenda adding Item 9-a, Kenai City Council Regular Meeting Agenda, and Item 9-b., Kenai Peninsula Borough Plat Committee August 28, 2006 Agenda. Commissioner Romain requested iJNAPIIMOUS CONSENT and Commissioner Fullinck SECONDED the motion. Department Assistant Carver requested the administration of oath to Roy Wells be added to the agenda. Commissioner Romain and Commissioner Flillinck agreed to add that item to the motion. VOTE: There were no objections. SO ORDERED. 1-c. Egcused Absences -- Commissioner Jenckes 1-d. Sweariag In of Commissioner Itoy Wells Carver administered the oath of office to Roy Wells. Comixussioner Wells took his seat at the dais. 1-c. Consent Agenda MOT%ON: Commissioner Bryson MOVED to approve the consent agenda as submikted and requested UNArTIMOUS CONSENT. Commissioner Romain SECONDED tlae motion. There were no objections. SO ORDERED. ITEM 2: APPROVAL OF MINUTES -- July 26, 2006 Approved by consent agenda. ITEM 3: SCHEDLJLED PUBLIC COMMENT -- None. ITEM 4: CONSIDERATION OF PLATS 4-a. PZO6-61 -- Preliminary Plat/Bookey's Repiat. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. MOTION: Commissioner Twait MOVED to approve PZ06-61, the preliininary Plat - Bookey's Replat with the noted staff recommendations. Commissioner Fullinck SECONDED the motion. Eldridge apened the floor for public testimony; there were no public comments. Carver reviewed the staff report which was included in the packet. Commissioner Bryson indicated he would abstain from voting on PZ06-61 and PZ06- 62 due to his participation at the Borough level. However, regarding PZ06-61 he felt the 50' driveway needed to be reevaluated because, from the field it did not appear the property line interfered with the street. Discussion followed related to the different sizes of rights of way in the area. '1'he Commission agreed with staff comments. VOTE: Romain Yes Eidrid e Yes B son Abstain Wells Yes Fullinck Yes Twait Yes Jenckes Absent MOTION PASSED UNAivIMOUSLY. 4-b. PZO6-62 -- Preliminary Plat/Original Townsite of Kenai - Tomrdle Replat. Plat submitted by Segesser Stuveys, 30485 Rosland Street, Soldotna, Alaska MOTION: PLANNING & ZONING COMMISSION MEETING AUGUST 23. 2006 PAGE 2 Commissioner Romain MOVED to approve PZ06-02 a preliinixiary replat, Originai Townsite of Kenai, Tomrdie Replat. Commissioner Fullinck SECONDED the motion. Eidridge opened the meeting to public testimony; there were no public comments. Carver reviewed the staff report which was included in the packet. VOTE: Romain Yes Eldrid e Yes B son Abstain Wells Yes Flillinck Yes ltvait Yes Jenckes Absent MOTION PASSED UNANYMOUSLY. ITEM 5: PUBLIC HEARINGS -- None. ITEM 6: OLD BUSINE55 -- None. ITEM 7: NEW BUSINESS 7-a. Discussion -- KMC 14.20.105 - Townsite Historic (TSH) Zoning District. Information included in the packet was reviewed and discussion followed with comments including: • The item review was requested by Eidridge who suggested changes related to permitted types of buildings to be constructed 'an the TSH zone including amending KMC 1420.105(c)(lj to include gable roof designs with 8/12 to 12/12 pitch and horizontal siding, logs, clapboazds, or shingles as well as amend (c)(5) to include different siding. • The Comanission was requested to review the materials included in the packet and be prepazed to discuss the item again at the September 13 meeting. ITEM 8: PENDING YTEMS -- None ITEM 9: REPORTS 9-a. City Council -- Council Member Ross reviewed the meeting agenda and action taken at August 16, 2006 council meeting. Concerns related to the sign ordinance were expressed by Eldridge and Ross suggested he speak to his concerns during the ordinance's public hearing at the September 6. 2006 council meeting. 9-b. Borough Planning -- Commissioner Bryson provided a report on action taken at the last Borough Planning meeting. 9-c. E,dministration -- Departrnent Assistant Carver referenced the Excused Absences memo in the packet. PLANNING & ZONING COMMISSION MEETING AUGUST 23, 2006 PAGE 3 Commissioner Romain reported he would be absent from the September 13 meeting and Commissioners Wells and Eldridge reported they would be absent from the September 27 meeting. Romain, Wells and Eldridge requested to be excused from the meetings. Commissioners stated no objections to the requests. ITEM 10: PERSONS PRESENT NOT SCHEDULED -- None ITEM 11: INFORMATION YTEMS 11-a. Zoning Bulletin (8/10/06) ITEM 12 : COMMISSYON COMMENTS & QUESTYONS Commissioner Twait welcomed Commissioner Wells. Cosnmissioner Wells stated he looked forward to serving on the Commission. Chairman Eldridge encouraged the Commission to review the TSH District information and suggested amending the Limited Commercial Zone to include the area from Tinker Lane along the Spur Highway to Swires Road. ITEM 13: ADJOURNMENT MOTION: Commnissioner Wells MOVED for adjournment and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Cominission, the meeting adjourned at approximately 7:53 p.m. Minutes recorded and prepared by: Barbara Roper, Contract Secretary PLANIVING & ZONING COMMISSION MEE'i'ING AUGUST 23, 2006 PAGE 4 .~~~\ - -° ~,: ~ -. t~iecftyaf / KENAV SKA ~~V~~IGC e Wdt~ a P~St G6 Wtti1 G. ~ 9 ~` 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ,..~~ Telephone: 907-283-7535 / FAX: 907-283-3014 ~O'If ~ 1992 M~~~O • TO: City Councii /~ rv~ FROM: Rick Koch U" DATE: Septembee 1, 2006 SUBJECT: Draft Management Agreement for Alaska Fire Training Center (PRISM) Facility The purpose of this correspondence is to transmit for your review a copy of the draft management agreement beriveen the State of Alaska, Department Df Public Safety, Alaska Division of Fire Protecrion and the City of Kenai for management and operations of the Alaska Fire Training Center (PRISM). It is our intent to bring this agreement before Council for approval at the September 20, 2006 meeting. This is informational, and the administration would appreciate any questions and/or comments you may have. Thank you for your attention in this matter. attachment ~~ ~ MANAGEMENT/OPERATIONSAGREEMENT FOR ALASKA FIRE TRAINYNG CENTER THIS AGREEMENT is made and entered into on this day of 2006, by and between the CITY OF KENAI, an Alaskan home-rule municipal corporation with offices at 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 (hereinafter "City"), and the State of Alaska, Department of Public Safety, Alaska Division of Fire Prevenrion, (address) (hereinafter "Alaska Division of Fire Prevention"). WITNESSETH: WHEREAS, the City owns the Alaska Fire Training Center located in Kenai, to enabie hands-on training of fire response personnel in scenarios replicating actual emergencies involving aircraft and structuraUindustrial settings (hereinafter the "Center"); and WHEREAS, the Alaska Division of Fire Prevention has certain technical expertise in the fietd of firefighter training, including training of personnel and trainers, and the maintenance and operation of fire training equipment; and WHEREAS, the City owns a structuraUindustrial fire training facility on the Center site, in order to enhance the training opportunities available at the Center; and WHEREAS, the City has constructed an Administration Facility (hereinafter "Facilit}~'), which will accommodate classroom training and certain hands-on training for use of appazatus and fire training equipment; and WHEREAS, the City desires that the Ataska Division of Fire ProtectionAlaska Division of Pire Prevention accept management of the Center, and the Alaska Division of Fire Prevention desires to perform management of the Center, under the terms and conditions described hereinbelow; and Wf~IEREAS, this Agreement is intended to allow the Alaska Division of Fire Prevention's office to manage and operate the Alaska Fire Training Center for the purpose of providing training. That training curriculum includes, but is not limited to, safe firefighting, hazardous material, emergency response, and public safety/law enforcement. NOW, THEEREFORE, in consideration of the mutual premises appearing below, and other good and valuable consideration, the receipt of which is hereby acimowledged, thc parties agree, as of the date last appearing below, to be bound by the following terms: Alaska Fire Training Center ManagemenUOpentions Ageement Page i of 12 '~F !',~ l, e,~ c+-+ f ' ~Sv e! ~' ~'~ ~*°°^~ ~ 'u I. TERM OF AGREEMENT This Agreement shall commence on the date last appearing below, and shall continue until II. OPERATION OF CENTER BY ALASKA DIVISION OF FIRE PREVENTION The Alaska Division of Fire Prevention shall perform the following duties throughout the term of this ManagementJ Operations Agreement (hereinafter the "AgreemenY'). In per£ormance of such duties, the Alaska Division of Fire Prevention shall not act as the City's agent, except to the extent authorized by this Agreement or subsequent written grant of such authority. The Alaska Division of Fire Prevention shall obtain any and all permits or licenses relevant to its performance of fire training services hereunder. A. Training. The Alaska Division of Fire Prevention shall schedule training at the Center on a year-round basis. The training is intended to include, but not be limited to, firefighting, hazazdous materiai, emergency response, public safety and law enforcement. 1. The Alaska Division of Fire Prevention shall provide to the City: a. AARF and Airport Operations training required by Part 139 to City personnel which shall be fully compiiant with Part 139 of the Federal Airport Regulations (as amended) at no cost to the City; and b. StructuraUindustrial training to City personnel on a class-availabie and space- available basis at no cost to the City. c. Annual Live Fire Drill trauung on a space available or reimbursable propane costs basis. d. Classroom space at no charge on a space availabie basis for FAA, TSA, or other airport-related training. 2. The Alaska Division of Fire Prevention shall provide training to third parties. 3. Revenues generated by training at the facility shall be distributed in the following order: a. Reimburse Alaska Division of Fire Prevention for all direct costs for management and operations. b. Reimburse City for all direct costs for facility maintenance, maintenance of AARF vehicles, and snow removalliandscape maintenance. c. Reimburse City an amount up Yo $25,000 per yeaz for purchase of fire fighting training props from the AAI. d. Additional revenues shall be placed in capital improvements/major maintenance/equipment replacement fund. Expenditures from this fund aze subject to joint approval by the Alaska Division of Fire Prevenrion and the City. 4. At the end of the agreement, any money in the capital improvements/major maintenance/equipment replacement fund will be divided equally between the City Alaska Fire Training Center ManagemendOperations Agreement Page 2 of 12 ~~ and the Alaska Division of Fire Prevention. Any equipment purchased in whole or in part with these funds shall belong to the City. B. Equipment. The Alaska Division of Fire Prevention shall maintain the City-provided equipment, including a. That identified on Attachment A made a part hereof by this reference; and b. Electrical components of prop controls, operations panels and training equipment/systems which aze part of the Facility, and shall retum same to City at the end of the term of this Agreement in substantially the same condition as when received by the Alaska Division of Fire Prevendon, reasonable wear and tear excepted. For lost or damaged items, the Alaska Division of Fire Prevention shall repair or replace City-provided equipment (listed on Attachment B made a part hereof by this reference). 2. The Alaska Division of Fire Prevention shall provide and maintain the following equipment at its sole expense: a. Propane b. Props c. Sensors d. Controls C. Maintenance of Facil-ty. The Alaska Division of Fire Prevention shall provide access to the Facility to city personnel (for inspection purposes) during all normai operating hours (and othenvise by reasonable advance notice). 1. Janitorial services: The Alaska Division of Fire Prevention shall perforrn or cause to be performed janitorial services within the interior of the Facility, except the 4,000 squaze-foot azea on the second floor that may be leased by the City to a third pariy, including trash removal, and cleaning of classroom, office, and common areas as required to maintain a neat and clean appeuance in the Facility. To the extent any other floor space is used by the City (or a third-pariy through the City), a pro-rata adjustment shall be made. 2. Utilities: The Alaska Division of Fire Prevention shall pay utilities directly. To the extent any floor space is used by the City (or by a third party through the City), a pro- rata adjustment shall be made. 3. Routine Maintenance: The Alaska Division of Fire Prevention shall perform or cause to be performed routine maintenance on all incorporated systems, including: waste water pre-treatment (prior to entering the municipal system); water supply; ventilation and air monitoring, propane plant and liquid propane systems, fire extinguisher charging systems, fire suppression and alarm systems (sprinklers), electricai, elevator systems, plumbing, heating, ventilation and air conditioning and air systems, emergency breathing systems, communication systems, self-contained Alaska Fire Training Center ManagemendOperarions Agreement Page 3 of 12 ~~~~~~ breathing apparatus tanks, high pressure chazging tanks, and the effluent buiiding shucture. This includes any preventive maintenance as may be recommended by the manufacturer of the system (with information to be supplied to the Alaska Division of Fire Prevention by the City upon occupancy) and any emergency service calls. However, it shali be the City's responsibility to schedule any inspections (annual or special) which may be required to comply or ensure compiiance with any regulations. To the extent any floor space is used by the City (or third party through the City), a pro-rata adjustment shall be made for maintenance of those articles which aze in common use. 4. Other Maintenance: Items which ue beyond routine maintenance and which aze non-emergency repairs to be performed by the City shall require notice by the Alaska Division of Fire Prevention to the City; emergency repairs may be performed by the Alaska Division of Fire Prevention or a party performing at its request, so long as the Alaska Division of Fire Prevention notifies the City as soon as possible of such repair(s). 5. Warranty Items. Upon discovery of defective worlananship, defective materials, or evidence or poor design, construction or installation, the Alaska Division of Fire Prevention shall inform the City promptly of such item. 6. The Alaska Division of Fire Prevention shall invoice the City for any pro-rata adjustments agreed to by the parties. D. Maintenance of Specialized Aircraft Fire Trainer ("SAF'T"). The Alaska Division of Fire Prevenrion shall be responsible to return the SAFT to the City in substantially the same condition as existed at the commencement of the term of this Agreement, except for any damage which may be caused by (a) reasonable weaz and tear; or (b) events not caused by negligent act or omission of the Alaska Division of Fire Prevention (inciuding its agents, empioyees, customers and invitees). E. Maintenance of AARF/A-2000 ("Fuel Spill Trainer"). The Alaska Division of Fire Prevention shall be responsible to retum the A-2000 to the City in substantially the same condition as existed at the commencement of the term of this Agreement, except for any damage which may be caused by {a) reasonable wear and teaz; or (b) events not caused by negligent act or omission of the Alaska Division of Fire Prevention (inciuding its agents, employees, customers and invitees). F. Annual Operating Plan. The Alaska Division of Fire Prevenrion shall draft an operating plan no later than October 31 during each yeaz of this Agreement, which plan shall set forth the anticipated use of the Center for the upcoming fiscal yeaz. The City shall be provided with a copy of the operating plan. G. Annuat Report. The Alaska Division of Fire Prevention shall, within 90 days of the end of the calendar year, prepare an annual report of operations to include statistics that show " the type of classes taught and attendance along with revenues and expenses with sufficient Agreement Page 4 of 12 ~ ~ ~ ~ '~~,~=~ ~ detail to provide the City with a clear view of the financial operations. The financial records pertaining to the operations of the facility shali be made available to the City upon request. H. Notitication. The Alaska Division of Fire Prevention, by the end of January each year, shail provide the City with a written request for funding any major maintenance and/or equipment items so that the City is able to include such items, if appxopriate in the annual budget process. I. Cooperative Marketing Efforts. The Alaska Division of Fire Prevention shall work cooperatively with the City to mazket the Center with the goal of amacting new business for the Center and to retain established clients. The Alaska Division of Fire Prevention will incorporate information and materials made available by the City to enable the Alaska Division of Fire Prevention to promote local enterprises of potential interest to the Center's ciients. J. Indemnification. The Alaska Division of Fire Prevention shail save or hold the City hazmiess from all actions, suits, liabilities, or damages resulting frorn or arising out of any negligent acts of commission or omission by the Alaska Division of Fire Prevention, its agents, employees, customers, invitees, or caused by the Alaska Division of Fire Prevention's occupation, operation, or use of the Facility, and to pay all costs connected therewith, including reasonable attorney's fees. Notwithstanding the afore stated provision, the City shall save or hold the Alaska Division of Fire Prevention harmless from . all actions, suits, liabilities, or damages to the extent resulting from or arising out of any negligent acts of commission or omission by the City's tenant, its agents, empioyees, customers, invitees (the "Tenant"), or caused by the TenanYs occupation, operation, or use of the Facility, and to pay all costs connected therewith, including reasonabie attomey's fees. K. Insurance. The Alaska Division of Fire Prevention shall obtain and maintain insurance, in amounts not less than those listed below, by insurance companies with acceptabie industry ratings, so long as such company is not barred from insuring City assets. All policies or endorsements shall, where possible, name the City as an additional insured. The Alaska Division of Fire Prevenrion shall not commence to perform under this Agreement until all required insurance is in fuli force and effect. l. The Alaska Division of Fire Prevention shall provide the Ciry with certificates of insurance within thirty (30) days of the effective date of this Agreement. Comprehensive general liability combined single limit (death, bodily injury and property damage) $10,000,000.00 Worker's Compensation Statutory Minirnum or Alaska Fire Training Center ManagemendOperarions Agreement Page 5 of 12 °"_*. !^-1 ,-\ F's' m,s , :'~~~ ~ G'~_'i'' ~"~ r ~ 2. A self-insurance program, or combination thereof, acceptable to the City. L. Compliance with atl appticable regulation. In performing under this Agreement, the Alaska Division of Fire Prevention agrees that it shall comply with all applicable local, state and federal regulations pertaining to such performance. The Alaska Division of Fire Prevention shall not knowingly permit illegai activities to occur on the Center premises. M. Independent Contractor Status. The Alaska Division of Fire Prevention shall be deemed to be an independent contractor and shall be wholly responsibie for the manner in which the Alaska Division of Fire Prevention performs the services required hereunder. Nothing contained herein shali be construed as creating an employment or agency relationship between the City and the Alaska Division of Fire Prevention (for the purposes of this Section, the Alaska Division of Fire Prevention shall include its employees, agents, officers, directors, and subcontractors). The Alaska Division of Fire Prevention sha11 be solely responsible for the compensation (including benefits, if any) paid to said parties. The Alaska Division o£ Fire Prevenrion shall determine the appropriate personnei required to perform the duties described herein, and shall select, hire, supervise, and manage such personnel. N. Technicat Advisory Committee. The Technical Advisory Committee (Committee) comprised of indushy representatives that utilize the Center shall be selected jointly by the Alaska Division of Fire Prevenrion and the City. The Committee shall meet at least annually to review the annual operations plan, discuss past and on-going training pmgrams, and suggest changes, modifications, deletions and/or additional to the training programs offered. The Committee sha11 consist of the following: One seat-Alaska Division of Fire Prevention One Seat-Alaska State Fire Marshal One seat-City of Kenai Two seats-Oil and Gas Industry T~vo seats-Mining Industry One seat-Alaska Fire Chiefs Association One seat-Marine Industry One seat-ADOT/PF, Aviarion Maintenance and Operations One seat-Alaska Association of Chiefs of Police One seat-Alaska Region FAA Airports Certification Inspection One seat-Alaska International Airport System (FAI and ANC) III. CITY SHALL PERFORM THE FOLLOWING DUTIES THROUGHOUT THE TERM OF THIS AGREEMENT. A. Ingress and Egress. Provide ingress and egress to Facility for the Alaska Division of Fire Prevenrion, officers, employees, agents and invitees. Alaska Fire Training Center ManagementlOperations Agreement Page 6 of 22 ~ c°~, ~ E-s, ~ :,~ ~ i ~ y..~ ~ B. Exslusive use (except during government-declared local or azea-wide emergencies): 1. of the Center to the Alaska Division oF Fire Prevention for hands-on training on aircraft and structural-industrial settings (including ali assigned pazking spaces- except four spaces which shall be reserved for third-pariy tenant-and unrestricted use of the unassigned parking spaces at the Center); 2. of the Facility (including entire first floor and the following space(s) on the second floor: prop room, orientation room, library) to the Alaska Division of Fire Prevention for classroom and hands-on training. The City shall ensure that the use of the second floor space by any third pariy (non-government entity) is not incompatibie with the Alaska Division of Fire Prevention's use of the Facility. C. The City agrees to purchase from AAI Engineering Support, Inc. fire training props currently at the Center for $250,000 for the use of the Alaska Division of Fire Prevention. D. Payment Terms. The City shali pay the Alaska Division of Fire Prevenrion charges pursuant to this Agreement (Section II.C.6. above) no later than thirty (30) calendar days foilowing the invoice date. E. City Maiatenance of Center Property. The City shall provide all major maintenance of the Facility, non-potable water system (as well as systems to carry nui-off from the same), mechanical, electrical and plumbing systems and grounds keeping (including but not limited to landscaping, grass cutting) and snow removal on the access road and parking lot. F. Systems and Equipment. The City shall be responsible for the refurbishments and/or replacement of incorporated Facility systems, except prop controls, operations panels, and any classroom training equipment, which shall be maintained in good working order by the Alaska Division of Fire Prevention. The City shall provide the equipment listed on Attachment C made a part hereof by this reference and the Alaska Division of Fire Prevention shall replace the equipment as necessary. G. Non-potable Water foe Training. The City shall provide (and maintain--routine and otherwise) adequate fire hydrants and/or other water delivery systems required to deliver non-potable water to the training sites around the Center, as well as the systems for canying away the run-off from same. H. Cooperative Marketing Efforts. The City shall work cooperatively with the Alaska Division of Fire Prevention to mazket the Center with the goal of attracting new business for the Center and to retain established clients. 'I'he City will ensure the availability of infoamation and materials to enable the Alaska Division of Fire Prevention to incorporate sales, public relations, and local tourism by Center clients. Alaska Fire Training Centex ManagemendOperauons Agreement Page 7 of 12 ~. :-~ :-~ r,m a~^~ i~ :~ la "4e 6"."`~~ ~ ~ I. Operating Plan Review. Not later than October i of each yeaz during the term of this Agreement, the City shall provide to the Alaska Division of Fire Prevention iYs anticipated training needs for the foliowing fiscal yeaz for inclusion in the Alaska Division of Fire Prevention's strategic pian. Not later than December i of each year during the term of the Agreement, the City shall review and comment to the Alaska Division of Fire Prevention on the operating pian for the upcoming yeaz of Center activities. Training Vehicles. The City shall provide the training vehicles listed on Attachment A made a part hereof by this reference at no chazge to the Alaska Division of Fire Prevenrion for use in the Alaska Division of Fire Prevention's performance hereunder. The City sha11 ensure that the vehicles receive routine service maintenance, annual factory service, and any applicable certifications. The City shali provide automobile liability insurance with an insurance company with an acceptable industry rating in the amount of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence. The City shall provide the Alaska Division of Fire Prevention a certificate of insurance name the Alaska Division of Fire Prevention as additionai insured on such policy. K. Exclusivity. In recognition of the extraordinary investment of time and resources by the Alaska Division of Fire Prevention and the City to develop a comprehensive training site, during the term of this Agreement, the City shall not contract with nor grant to any third party the right to provide fire training services for Kenai on the Center's site, unless such training services are being provided to an audience which includes only person(s) empioyed by the City of Kenai. Furthermore, throughout the term of the Agreement, no fire-related training on the site shall be scheduled independently by the City without prior coordination with the Alaska Division of Fire Prevention's local manager. L. License Apptications. The City sha11 assist the Alaska Division of Fire Prevention by pmviding any information which may be reasonably required by the Alaska Division of Fire Prevention to obtain permits or licenses, or to otherwise comply with local, state or federal regulations. IV. NIISCELLANEOUS A. Assignment: Neither party may assign this Agreement to another party without the prior written pernussion of the other party. However, no assignment shall relieve the original contracting party from its obligations hereunder, and the assignee shall be subject to all terms and conditions of this Agreement. B. Default, Right to Cure, and Termination. Termination. This Agreement may be terminated by either pariy by giving one hundred riventy (120) days notice. 2. Fuading Shortfali. The City may terminate this Agreement at any time in the event there are insufficient lawfully appropriated funds for the operation of the Center, provided that, (a) the City shali give one hundred twenty (120) days notice of such Alaska Fire Training Center ManagemenUOperations Agreement Page 8 of 12 ~ ..,` . . ~--~ m termination; (b) due to the advance bookings which the Alaska Division of Fire Prevention may have for the Center, at the sole election of the Alaska Division of Fire Prevention, the Alaska Division of Fire Prevention may continue to operate the Center, providing training to Center clients and to City trainees (however, during funding shortfall periods, training of City trainees shall be at a cost negotiated with the City prior to such training); and (c) if such funds should be appropriated prior to the original expiration date of this Agreement, the Alaska Division of Fire Prevention be entitled to reinstate this Agreement as if no interruption had occurred. 3. Accrued Fees. Upon termination of this Agreement by either party, for any reason whatsoever, the parties shall pay to one another fees accrued through the date of termination; but the payment and acceptance of such sums hy either party shall be without prejudice to ciaims by either party for damages arising out of the breach by the other party of this Agreement, inciuding wrongful termination. 4. Return of Property. If, at the time of termination, either pariy has in its possession funds or other property of the other party, such property shali be retuned to the owner immediately, but not later than thirty (30) days following receipt of written notice. 5. Rights and Remedies. The rights and remedies of the parties contained in ttus section aze not exclusive and aze in addition to all other remedies available to the parties at law or in equity. 6. No~-waiver. The failure of either party at any time to enforce a provision of this Agreement shall in no way constitute a waiver of the provision, nor in any way affect the validity of this Agreement or any part hereof, or the right of such party thereafter to enforce each and every provision hereof. 7. Amendment. This Agreement may be amended only by written agreement executed by the parties. 8. Choice of Law. The laws of the State of Alaska shall govern the rights and obligations of the parties under this Agreement. Any action commenced under this Agreement shall be filed in the Third Judicial District at Kenai, Alaska. 9. Severability. Any provisions of this Agreement decreed invalid by a court of competent jurisdiction shall not invalidate the remaining provisions of this Agreement, unless such provision is reasonably considered by either party to have a material impact on the financial or operating control of the Center. Should either pazty reasonably consider an invalidated provision to be material, either party may terminate this Agreement with ninety (90} days prior written notice, subject to ati other termination provisions set forth herein or in the Lease. 10. Notices. All notices required by this Agreement shall be in wriring and shall be sufficiently given and served upon the other party if sent by registered or certified United States mail, postage prepaid, and addressed as follows: Alaska Fire Training Center ManagemendOperations Agceement Page 9 of 12 -, -~ ,-~ ~-. _-.~ .. ... _ . . 3,-~ .' IF SENT TO CITY: City Manager City of Kenai 210 Fidalgo Avenue Kenai, AK 996 1 1-7794 or at such other piace as the City may, from time to time, designate by notice to the Alaska Division of Fire Prevention. IF SENT TO ALASKA DNISION OF FII2E PREVENTION: Alaska Division of Fire Prevention Dept. of Public Safety State of Alaska or at such other place as the Alaska Division of Fire Prevention may, from time to time, designate by notice to the City. 11. Force Majeure. Except as otherwise provided, neither pariy shall be obligated to perform hereunder, and neither shall be deemed to be in default, to the extent its respective performance is prevented by fire, earthquake, flood, act of God, strike, picket, or boycott of the Center, riot, civil commotion, or other matter or condition beyond the control of the parties, including the unavailability of sufficient fuel or energy to operate the Center, or any law, ordinance, rule, regulation, or order of any public or military authority stemming from the existence of economic controls, riot hosrilities, waz or governmental law and regulation. 12. Integration. This Agreement and all incorporated attachments and appendixes hereto embody the entire agreement of the parties relating to the services to be provided hereunder. There are not promises, terms, conditions, or obligations other than those contained herein, and this Agreement shall supersede all previous communications, representations, or agreements, either oral or written between the parties. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and yeaz first written above. PASSED and APPROVED by the City Council of the City of Kenai, Alaska, on the _ day of 2006. CITY OF KENAI Alaska Fire Training Center ManagemenHOperarions Agreement Page 10 of 12 ~, ~~ By: Rick R. Koch, City Manager OF FIRE PREVENTION STATE OF ALASKA ALASKA DIVISION By: ATTEST: Cazol L. Freas, City Clerk APPROVED AS TO FORM: Cary R. Graves, City Attorney STATE OF ALASKA ) )ss TFIIl2D JL7DICIAL DISTRICT ) THIS IS TO CERTIFY that on this ~ day of 2006, RICK R. KOCH, Kenai City Manager, being personally known to me or having produced satisfactory evidence of identification, appeazed before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: Alaska Fire Training Center ManagemenUOperarions Agreement Page 11 0£ 12 _, _ ,. _,.-~ STATE OF ALASKA ) )ss THIl2D JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2006, for State of Alaska, being personally known to me or having produced satisfactory evidence of identification, appeazed before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: Alaska Fire Training Center Management/Operarions Agreement Page 12 of 12 l- MEMO~ND~M To: Rick Koch, City Manager From: Larry Semmens, Finance Director ~ Date: August 31, 2006 Subject: Draft Financial Statements Attached is the draft Statement of Revenues, Expenditures and Changes in Fund Balance for the General Fund for the year ended June 30, 2006. The statement is not scheduled to be audited until mid October. I do not expect substantial changes to the numbers. By most accounts FY 2006 was a very good year. We ended up with a small deficit of $68,000 which was about a half million dollars less than the Fy2006 deficit projection made in the FY2007 budget document. Sales tax revenues hit a new high at $4.4 million! State grants were up, the big item was PERS aide at $231,000. Ambulance revenue is up but below budget because Medicare reduced their limits for reimbursement. Dock revenue for fuel sales and boat launches both exceeded budget. Miscellaneous revenue - other, included dip net parking of $116,000, land sales $227,000, and settlement of a class action suit related to in-floor heat at the Visitors Center $71,000. Interest revenue didn't quite make budget due to a large paper loss adjustment that had to be made at year-end due to rising interest rates. Expenditures of $9.8 million were about $800,000 less than budgeted (7.6%) and encumbrances were about $246,000. There were a couple departments that exceeded budgets in some categories. The Police Department personal services category was overspent due to overtime related to Arctic Winter Games. The Recreation Department other services and charges category was overspent due to utilities at the Multipurpose Facility. This also could have been impacted by the Games. To offset these statistics, remember that taxable sales for the quarter ended March 2006 were the highest 1 S` quarter on record - up 8% from last year, and most believe the Arctic Winter Games were good for Kenai. At the end of the year the General Fund fund balance is $9.4 million. This is a very healthy fund balance. Consideration should be given to utilizing some of the fund balance to pay down the growing PERS liability. DRAFT CITY OF KENAI, ALASKA GENERA~FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2006 Oeiginal Final Budaet Budaet Variance With FinalBudget Positive Actuai Ne ative Revenues: Taxes: General property $ 2,018,800 $ 2.018,800 $ 2,003,683 $ (15,117) General seles 4,085,000 4,085,000 4,404,158 319,158 Penaity and interest on taxes 25,000 25,000 15,520 (9,480) Totaltsxes 6,128,800 6,128,800 6,423,361 294,561 I.icenses and permits: Building permits 55,000 55,000 68,550 13,550 Animal control licenses and fees 6,700 6,700 6,232 (468) Other 4,100 4,100 4,976 876 Totallicenses and permits 65,800 65,800 79,758 13,958 Intergovernmental revenues: Federal Grants - 65,351 73,314 7,963 Kenai Peninsula Borough 48,000 48,000 48,Q00 - State of Alaska shared revenues: Electric utility tax 26,000 26,000 30,307 4,307 Fish tax 100,000 100,000 103,929 3,929 Liquor iicenses 23,Q00 23,000 27,050 4,050 State of Alaska grants: Library grants - 8,500 8,500 - Ofher 236,000 339,589 340,863 1,274 Total intergovernmentai revenues 433,000 610,440 631,963 21,523 Charges for services: Ambulancefees 270,000 270,000 230,856 (39,144) Multipurposefacilitycharges 75,000 75,000 61,617 (13,383) Administrative and service fees 1,011,800 1,011,800 1,011,800 - Other 117,000 117,000 170,789 53,789 Totalchargesforservices 1,473,800 1,473,800 1,475,062 1,262 Fines and forfeits: Courtfines 900,000 100,000 87,869 (12,131) Libraryfines 15,000 15,000 ~4,209 (799) Otherforfeitures 1,850 6,060 6,519 459 Total fines and forfeits 116,850 121,060 108,597 (12,463) See Accompanying Notes to Financial Statements DRAFT CITY OF KENAI, ALASKA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2006 continued Variance With Final Budget Original Finai Positive Budpat Budaet Actual Ple ative Misceilaneous reve~ues: Interest revenue $ 375,000 $ 375,000 $ 323,384 $ (51,616) Rents and leases 40,500 40,500 41,234 734 Librarydonations 2,000 2,000 1,803 (197) Oil and gas royalties 72,000 72,000 109,092 37,092 Specialassessments 16,Q00 16,000 21,233 5,233 Other 262,450 278,856 554,704 275,848 Total miscelianeousrevenues 76~,950 784,356 1,051,450 267,094 Totalrevenues 8,986,200 9,184,256 9,770,191 585,935 Expenditures: General government: Legislative: Personai services 44;357 44,817 44,816 1 Suppiies 1,820 2,940 1,366 1,574 Other services and charges 65,333 93,853 60,587 33,266 Totallegisiative 111,510 141,610 106,769 34,841 City clerk Personalservices 91,058 100,258 99,930 328 Supplies 7,420 7,580 5,149 2,431 Other services and charges 28,893 19,533 18,290 1,243 Total city clerk 127,371 127,371 123,369 4,002 City attorney: Personal services 204,295 204,295 195,388 8,907 Supplies 930 2,903 2,653 250 Other services and charges 17,829 27,588 26,200 1,388 Total city attomey 223,054 234,786 224,241 10,545 See Accompanying Notes to Financiai Statements DRAFT CITY OF KENAI, AIASKA GENERALPUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BAWNCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2006 continued Variance With Finai Budgek Original Final Positive Budae4 Budaet Actual Ne ative City manager: Personalservices $ 170,901 $ 142,228 $ 105,214 $ 37,014 Supplies 1,932 3,873 2,551 1,322 Otherservices and charges 12,175 39,507 38,645 862 Total city manager 185,008 185,608 t46,410 39,198 Finance: Personalservices 389,976 389,976 384,273 5,703 Suppiies 13,575 13,575 9,177 4,398 Other services and charges 18,320 18,320 17,114 1,206 Total finance 421,871 421,871 410,564 11,307 Non-departmentaf: Supplies 9,736 9,736 7,614 2.122 Other services and charges 399,797 335,047 286,698 48,349 • Pass-through grants - 91,072 91,072 Total non-departmental 409,533 435,855 385,384 50,471 Pianning and zoning: Personal services 139,903 139,903 131,070 8,833 Supplies 9,126 9,344 9,096 248 Other services and charges 16,586 16,368 12,901 3,467 Total pianning and zoning 165,615 165,615 153,067 12,548 Safety: Supplies 1,600 1,600 672 928 Other services and charges 14,510 9,511 4,238 5,273 Total Safety 16,110 11,111 4,910 6,201 ~and administration: Supplies 239 231 156 75 Otherservices and charges 9,022 9,022 6,131 2,891 Total land administration 9,253 9,253 6,287 2,966 Total general govemment 1,669,325 1,733,080 1,561,001 172,079 See Accompanying Notes to Financial Statements DRAFT CITY OF KENAI, ALASKA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET ANQ ACTUAL YEAR ENDED JUNE 30, 2006 continued Vaeiance With Final Budget Original Finai Positive Budaet Budaet Actual Ne ativa Public safety: Police: Personal services $ 1,657,355 $ 1,689,928 $ 1,699,524 $ (9,596) Supplies 52,664 68,374 62,862 5,512 Other services and charges 110.077 102,577 97,904 4,673 Capital outlays 67,426 59,926 59,876 50 Total police 1,887,522 1,920,805 1,920,166 639 Fire: Personal services 1,551,603 1,544,250 1,446,652 97,598 Supplies 31,879 94,872 86,108 8,764 Other services and charges 119,118 122,366 106,290 16,076 Capital outlays 22.000 31,700 31,400 300 Totaifire 1,724,600 1,793,188 1,670,450 122,735 Communications: Personalservices 550,799 550,799 525,535 25,264 Supplies 7,200 7,887 6.141 1,746 Otherservicas and charges 34,105 33,418 30,643 2,775 Total communications 592,104 592,104 562,319 29,785 Animal control: Personat services 155,094 155,094 149,917 5,177 Suppiies 10,850 10,850 9,566 1,284 Other services and charges 68,136 68,136 65,411 2,725 Total animal control 234,080 234,080 224,894 9,186 Total public satety 4,438,306 4,540,177 4,377,829 162,348 See Accompanying Notes to Financial Statements DR.4FT CITY OF KENAI, ALASKA GENERAIFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2006 continued Variance ~th Final Budget Original Final Positive Budnet Budaet Actuai Ne ative Public warks: Public works administration: Personal services $ 293,164 $ 293,164 $ 265,527 $ 27,637 Suppiies 6,000 6,000 4,591 1,409 Other services and charges 11,250 11,250 5,042 6,208 Total public works administretion 310,414 310,414 275,160 35,254 Shop: Personalservices 261,740 253,740 242,799 10,941 Supplies 210,239 262,412 255,424 6,988 Otherservices and charges 104,225 121,052 114,249 6,803 Total shop 5'76,204 637,204 612,472 24,732 Streets: Personal services 481,674 481,674 461,649 20,025 Supplies 118,625 116;906 62,344 54,562 Other services and charges 156,318 159,037 119,999 39,038 Capital outlays 7,000 6,000 5,600 400 Total streets 763,617 763,617 649,592 114,025 Dock: Personal services 5~,841 57,841 55,149 2,692 Supplies 43,187 63,186 50,095 13,091 Other services and charges 69,679 39,680 21,486 18,194 Total dock 170,707 160,707 126,730 33,977 Buildings: Personalservices 170,330 170,330 159,801 10,529 Supplies 28,127 24,905 20,098 4,807 Other services and charges 182,552 188,794 181,845 6,949 Capital ouUays 43,000 39,980 39,980 Totat buiidings 424,009 424,009 401,724 22,285 Street lighting: Supplies 24,178 24,178 2,590 21,588 Otherservices and charges 129,051 129,051 95,945 33,106 Total street lighting 153,229 153,229 96,535 54,694 Tatal public works 2,398,180 2,449,180 2,164,213 284,967 See Accompanying Notes to Financial Statemerrts DRAFT CITY OF KENAI, ALASKA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2006 continued Variance With FinalBudget Original Final Positiva Budsret Budstet Actual Ne ative Parks, receeation, and culturai: l.ibrary: Personal services $ 378,760 $ 378,760 $ 359,296 $ 19,464 Suppiies 30,550 36,929 31,370 5,559 Other services and charges 136.687 143,808 127,400 16,408 Totallibrary 545,997 559,497 518,066 41,431 Visitors center: Supplies 1,800 1,800 1,360 440 Othsr services and charges 112,550 117,444 115,397 2,047 Total visitors center 114,350 119,244 116,757 2,487 Recreation: Personalservices 72,704 72,704 67,667 5,037 ' Suppiies 4,000 9,827 9,475 352 Otherservices and charges 276,530 282,037 288,243 (6,206) Totalrecreation 353,234 364,568 365,385 (817) Parks: Personaiservices 135,304 135,304 123,740 11,564 Supplies 2Q,500 19,400 18,775 625 Other services and charges 70,984 73,451 61,422 12,029 Capital outlays 25,000 25,000 22,365 2,635 Totaiparks 251,788 253,155 226,302 26,853 Beautification: Personalservices 36.938 36,938 36,769 169 Supplies 23,581 21,831 19,502 2,329 Other services and charges 18,225 7,274 3,106 4,168 Capital outlays - 24,691 15,087 8,604 Total beautification 78,744 90,~34 74,464 16,270 Totai parks, recreation, and cultural 1,344,113 1,38~,198 1,30Q974 86,224 Total expenditures 9,849,924 1Q109,635 9,404,017 705,618 See Accompanying Notes to Financiai Statements DRAFT CITY OF KENAI, ALASKA GENERALFUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENOED JUNE 30, 2006 con4inued Originai Final Budaet Budaet Excess ofrevenues over(under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Netchangesinfund balance Fund balance - July t Fund balance - June 30 Actual Variance ~th Final Budget Positive Ne ative $ (863,724) $ (925,379) $ 366,174 $ 1,29i,553 46,000 k6,000 7,085 (38,916) (34,500) (541,048) (441,048) 100,000 11,500 (495,048) (433,963) 61,085 $ (852,224) $ (1,420,427) (67,789) $ 1,352,638 9,461,403 $ 9,393,614 See Accompanying Notes to Financial Statements . ~ K~'N~ M1 ~. 7r p\ j, ~^9._ . . ~M~~ ttieayaf / KENA~ SKA "1/clla e wit~r a Past, Gi wit~i ~ ', ~ ~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 / Fax: (907) 283-3014 www.ci.kenai.ak.us l~~e~orandum Date: August 22, 2006 To: Rick R. Koch, City Manager From: Kim Howard, AssistanY Yo the Ciry Manager ~ RE: Salty Dog Heights Subdivision Land Sales On August 18`h, a competitive sealed bid sale was held for the six loCS that the City had acquired in Sterling. Bids were received on four of the parcels. On August 22°d, one of the parcels that didn't receive a bid was sold over the counter at the fair market value. Four of the sales have closed and one is pending. All were sales under terms at 11.25% inYerest. The properties that sold are as follows: Parcel No. Buyer Minimum Purchase Lot BlockPart $id/FMV Price 063-610-22 Joseph F. DeSmidt, III $20,500 24,211 6 1 2 063-610-38 JosephF. DeSmidt, Jr. $17,500 19,612 5 1 7 063-610-37 Jennifer Elaine Belcik $17,500 ~ 19,100 4 1 7 063-610-36 Robert A. Halpin $17,500 24,500 3 1 7 *063-610-35 Joe Charles Hamersley $17,500 17,500 2 1 7 Total $90,500 104,923 * Purchased after the sale over the counter. One lot remains. I have had some interest in the property. A"For Sale" will remain on the pazeel untii it sells. /kh `~ "V'ffa~r e witlr a Past, Gc`~ wit1~ a i ~~h~; ~,, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 „'I~, ~_~, Telephone: 907-283-7535 / FAX: 907-283-3014 ~~ '~ _ . ,. '- --_r~ ,, .>~ 7992 thea~uf KENQ~ SKA M~~~ • TO: City Cauncil < FROM: Rick Koch DATE: August 30, 2006 SUBJECT: Biuff Stabilization Project Attached please find a copy of a report titled "Kenai River Bank Erosion Technical Report, dated May 2006, we received on August 29, 2006 from the Corp of Engineers. The remainder of the report, figures 1-4, and appendices A-D, is available in my office for review. I will be speaking to the Corp regarding this report, specifically Section 7.2 Additional Study Requirements. I will attempt to have discussed fhis with the Corp in advance of the Sepfember 6`h Council MeeCing. Thank you for your attention in this matter. attachxnent Ve `•~~~~Gi Y~~i@ 1 63~ ~i F~ i''S9SIYi~~ ~ ~~A ~ // ;'~~~ U.S. ,~e32iflY EPJGI~IEER D15TRICT, ,~L~ASf€l~ i~ ~ ~'.O. nOX 6$98 , ;~. ~ _ ~ ~L~'dPEPSDC3E;F daFB, l`~K 9950fi-689ii ~. ~~ i~aE~~3~i ~E$ff~~ ~~°iRE@~ ES'~2~3.~EE~~ ~'~~E~~^91C~.L ~EP~~B~' ~~E~~,41, ~L~S May 2006 4 aUMMP~itY This report presents the findings of a technical investigation of bank erosion along the Kenai River at the eity of Kenai, Alaska. The Secretary of the Army was directed in the Energy and WaTer Development Appropriations Aet of 2002, Senate Report 107-039, to expend up to $500,000 to conduct a"special technic~l evaluation ofbank stabilization needs along the lower Kenai River." The city oY Kenai and the lower reach of the Kenai River are located on the Kenai Peninsula, approximately 6~ air miles and 155 highway miles southwest of Anchorage via the Sterling Highway. The section of riverbank being studied is along the nonh bank of the river, between the mouYh of the river and the city. Erosion of the bank along the Kenai River at Kenai has continued to encroach upon city, commercial, and private utiliCies and structures. The city has had Co relocate utilities and roads, and cannot move forward with planning and development of the area along the bluff. Erosion has also resulted in properties and sYructures being abandoned or condemned. Tlie steep and unstable bank is a safeCy risk to residents and visitors t~ Kenai. The city and residents currently incur an average annual loss of $151,000 due fo reduced v~lue of lands and buildings and relocation of buildings and utilities. A number of forces contribute to the bank erosion such as wind, waves, foot traffic, overland drainage, groundwater seepage, and river currents. The pnmary contributor af erosion is groundwater seepage out of the bank face, which causes the piping of fine sand material from ±he upper bank and weakening of the lower silt,'clay layer. The eroded material is initially deposited on the bluff toe where it is Yhen subjected Co further erosion from wind, w~ves, and river currents. I'urther studies and bank stabilization project designs should tirst address groundwater seepage. To estimaYe the impacts of a stabilized bank iC was assumed that the bank stabitization conceptual design by Peratrovich, Nottingham, and Drage, Ina (PND) in their February 2002 report was the with-project condition. Primary features of this concept tivould consist of an armor stone Iayer along Che lower bank with Yhe upper bank cut to a shallower grade and revegetated. Groundwater seepage out of Che bank face woutd be routed through a collector drain and dischar~eci to the river. Although it is recognized that the PND design was at a conceptual level, additional analysis and design should first focus on groundwater seepage and collecfion. There is the potenCial for direcf and indirect loss of habitaC from stabilization of the bank. Direct habitat loss would occur from project construction in the interCidal area and also resulC in a loss of poYential nesting habitat for swallows if the bank grade is altered. Change of the bank grade would remove numerous spruce trees from the top of the bank. Bald eagles commonly use these trees to perch and overlook the river and associated wetlands. If the bank is cut back to a more shallow, stable slope and subsequently revegetated, it is likely that the new vegetation will provide some bird habitat. There will likely be disturbance and displacement of birds during some phases of construction. vlany adverse impacts to birds can be avoided through the use of construction windows. Hydraulic modeling was performed to compare the existing and with-project conditions. Results of the modeling indicate that the project would have minimal encroachment on the river flow pafh and would have an insi~nificant impact on river currents. Kenai River Bank Erosion Technicat Report - Kenar, Alaska Indirect impacts would encompass effects of the erosion contrcl project that are encountered outside the project footprint. Of~particular concern are the sand dunes and the largc intert? area in front of the dunes and the sewage treatmenC p1anC. According to the sediment impa, analysis, see tlppendix C, the impacts to the dunes Prom an erosion contro] projecY are expected to be minor. Although armoring the bank would decrease the amoLmt of sediment entering the system, this quantiYy is small in comparison to the overall amount of sediment contributed from other sources in the river. Although the bluff is receding, geotechnical analyses indicate that the slope is stable and that massive slope failures are not contributing factors to the erosion. Both the sand and clay slope faces, however, are susceptible to surface raveling, sloughing, and wind and water erosion. Well flow tests were also eondneted along the bluf£ 'I'he tests indicate that the sand layer of the bluff is highly permeable. However, the number of tests performed was insufficient to adequately map groundwater flow patterns suitable for detailed design of a bluf£ stabilization project. Kenai River Bank Erosion Technrcal Report-Kenar,Alaska CO~TENTS 1.0 STUDY RU7HORITY-----------•------°-----------------------°------°-------°-°--...------------------------1 2A STUDY PURPOSE AND LOCATiON-------°-------°---------------•-----•----------°-----------------' 2.1 Purpose and Location-----------------------°------------------------------------ --------------°--2 22 Smdy ScoPe-----------------------------°-----------°----------------------------- ------------------Z 3.0 PREVIOUS STUDIES-----°-----------------------------°-~---------°-----...-------°----------°°---°-°-4 4.0 EXISTING CONDITIONS----°----°------------°•--------------------°------------------------------°------5 4.l Community Description---°-----------------°-------------------°---------- -------°------------5 4.2 Physical Environment----------------------------------------°------------------ ----°--------------5 4.3 Environmental Resources-------------------------------------------------- --------------~ 5.0 PROBLE~AS AND OPPORTUNtTIES--------°-----°---------------------°----------°•----°---°-------7 ~.1 Problem statement --------------------~---------------------------------°- ------------------~ 52 Opportunities------------------------------------------------------------°-------- ---------------~ 6.0 EVALUATION OF BANK EROSION AND STABILIZATION____________________ _____________________g 6.1 Bank Erosion Process -------------°---------------------------------°------------ ------------------8 6.2 Szdimentation ---------------------------------------------------------------- ----------------K 63 Riverine Characteristics------------------------------------------------------ ---------------°--9 6.4 GeotechnicalInve,tigation------------------------------------------------------ ----------------9 6.5 Environmental Evaluation ---------------------------------------------------- --------------9 6.5.1 Cultural Resources ------------------------------------------------ ---------°---------9 6.52 EnvironmentatImpacts--------------°------------------------------------ ------------------9 6.6 Economic Impacts --------'--'----------------'-°'--------------'---------------- -----'----'----- 10 6.6.1 Current without project Conditions ------------------------------___________ _________________ ; p 6.6.2 Fu!ure withoubproject conditions ---------------------__-_-------------- _--_,-_---_---_ l2 ... ~ 6.6.3 Puture with-project conditions-------------------°---------------------- ------------------ 13 7.0 CONC~USION-------------°---------°-------°---°-.....----°-------°°---°•°----....- ----°----------°14 7.1 Bank Stabilization Design Considerations-----------------------------___________ ________________ 14 72 Additional Study Requirements-----------------------°------------------------ ---------------- 14 73 Conclusion-----------------°---------------------------°------------°--------- ---------------- 14 FIGURES Figa~re L Location MaP--------------------------------------------------°------------------------------~ Figure l. Lower Kenai River--------°----------------------------------------------------------------3 Figure 3. Kenai Bank Gots and Existing Bnnk-Line, Used by permission oflhe eity ofKenai.-------- 11 Figure 4. Kenai Utiliry Lacations and Existing Bank Line, Used by pe~~mission ojthe cfry oJKenai.--- 12 APPENDICES AppendixA EnvironmeiatalStudies Appe»dix B Hydraulics and Hydrology Appendix C Sediment Impact Assessment Appendix D Geotechnical ]nvestiga[ion Kenai River Bank Erosron Technical RepoR - Kenai, Alaska ~ ::~ .~ .._ 1.0 iTBJ~~ A~UT~iO~iT`f ~~" This study is in partial response to the Rivers and Harbors in Alaska resolution, adopted by the U.S. House of Representatives Committee on Public Works on 2 December 197Q This Y~ resolution reads in part: Resolved by the Committee on Public Wortis of tlze House of Representatives, 1~ United States, that the Board of Eragineers for Rivers and Harbors is hereby requested to review the reports of the Chief of Engineers on Rivers arid Htarbors tn Alaska, published as House Documenf Numbered 41A, 83'~`~ '~ Congress, 2"d Sessio~2; ...and other~ pertine~~t repa~ts, wifh a view zo determining whether any modiflcations o'the recommendations contained ~ herein are advisable at the present tirne. :~ The Secretary of the Army was directed in the Energy and Water Development Appropriations Act of 2002, Senate Report 107-039, to expend up to $500,000 to conduct a "special technical evaluation of bank stabilization needs along the lower Kenai River." Kenai Rrver Bank Erosion Technical Report - Kenai, Alaska 2 ~.~ ~~~~~ ~~~~~~~ ,E'~~D ~~w~~e~a~ 2.3 Purpose and Location The purpose of thss study is to conduct a technical investigation of bank erosion and ~tabilization along the lower Kenai River at Kenai, Alaska. The city of Kenai and the lower reach of Che Kenai River is approximately 65 air miles and 155 highway miles southwest of Anchorage via the Sterling Highway. The bank is along the north bank of the river, bet~veen the river and Yhe city. The location of Kenai is shown on Figure 1. A detailed phofograph of the lower Y.enai River is shown on Figure 2. 2.2 study Scope The scope o£this investigation includes identification of the mechanisms for bank erosion, analysis of bank stability, measurements of groundwater flow, and iinpacts to tl~e anvironmental resources and the river and coastal environment from a bank stabilization project. ..4AAraVgzT.~ ..., ~ p 3ml Gnmpartz Chartna! ~1 m NIYtsMu ~ ' Mikiski ,o ortNikkkl a ~~iJ . ..._ ~ .. r ok INnt ~ ~ d 0{flCtilO ~.. ~ `J p IilOMiky ~ 2D04 MapQuest.com, Inc.; ~ 2904 60T, Inc. Figure 1. Location Map Kenai River dank Erosion Tecnnical Report-ker~ai.Alaska Figure 2. Lower Kenai River Kenai River Bank Erosion Technicai Report - Kenai, Alaska 3.0 s~R~ViOl1S ~TiJ~i~~ Section 905(b) (WRDA 86) Analysis, Kenai River Bluff Erosion, U.S. Anny Corps uf Engineers, July 2005. This report provides a reconnaissance level analysis to determine i there is Federai interest in a cost-shared feasibility study. "Kenai Coastal Tail and Erosion Control ProjecY', Peratrovich, NoYtin~ham, and Drage, u February 2002. This report provides a design coneept of bank stabilization and a pedestn trail along the bank. "Erosion at the Mouth of the Kenai River, Alaska", Orson Smith, William Lee, and Heike Merkel, April 2001. Report contains a sediment budget analysis wiYh regard to the propo<. "Kenai Coastal Trail and Erosion Control ProjeeY", PND Feb 2002. Draft `Bluff Erosion Study, Kenai River Sedimentation Study", TAMS Engineers, November 1982. This report identificd groundwater seepage from the bank face as the primary mechanism of bank erosion and recommended control of this seepage as the f:rst order of work towards bank stabilization. "Erosion and Sedimentation in the Kenai River, Alaska", U.S. Geological Survey, 1982. This report presented an assessment of erosion and sedimentation of the entire Kenai Rive~ Kenai River Bank Erosion Technical Report - Kenai, Alaska _ .~ ; ~~ ~.0 ~XlST~~d~ ~O~~~T80~~ 4.1 Community Description Historv. Prior to Russian settlement, Kenai was a Dena'ina Athabascan Indian village. Russian fur traders first arrived in 1741. At that time, about 1,000 Dcna'ina lived in the village of Shk'ituk't, near the river. The traders called the people "Kenaitze," or "Kenai people.° In 1791, a fortified Russian trading post, Fort St. Nicholas, was constructed for fur and fish trading. In 1869 the U.S. military estab]ished a post for the Dena'ina Indians in the area, called Fort Kenay, which was abandoned in 1870 aftcr Alaska was purchased by the U.S. A post office was established in 1899. Through the 1920s, commerciai fishing was the primary activity. In 1940, homesteading enabled the area to develop. The first dirt road from Anchorage was constructed in 19> L In 1957, oil was discovered at Swanson River, 20 miles northeast of Kenai - the first major Alaska oil strike. The City was incorporaCed in 1960. In 1965, offshore oil discoveries in Cook Inlet ftieled a period of rapid growth. I{enai has been a growing center for oil exploration, producYion ancl services since that time. CuCture. The Kenai River is a major sport fishing location for Anchorage residents and tourists. The river is world renown for trophy king and silver salmon. The Kenaitze (Tanaina Athal~ascans) live borough-wide and uYilize the rich resources of Cook Inlet. Economy. The City is the center of Yhe oil and gas indusYry for the Kenai Peninsula, providing services and supplies for Cook InleYs oil and natural gas diilling and exploration. Tesoro Alaska's oil refining operations and Unocal's urea plant are located in North Kenai. Both in-staTe and ouY-of-state visitors provide a significant industry on the Peninsula. Other importanY economic sectors include sport, subsistence and cotnmercial fishing, fish processing, timber and lumber, agriculture, transportation services, consCruction and retail trade. 234 area residenfs hold commercial fishing pennits. 'I"he largest employers are the Borough School DisYrict, Unocal, Peak Oilfield Services, the Borough, and Central Peninsula Ueneral Hospifal. The Chaltenger Learning Center of Alaska was completed in Spring 2000. Logging of spruee bark beeYle-kiiled timber also occurs in the area. Facilities. Water is supplied by three deep wells and is piped to 75% of households. Sewage is piped and receives secondary treatment. The remaining 25% of households use individual water wells and septic systems. Natural gas is primarily used for home heating purposes. Homer Electric Assoe. operates the Bradley Lake Hydroelectric Project and is part owner of the Alaska Electric Generation & Transmission Cooperative. The Borough landfill is located in nearby Soldotna. 4.2 Physical Environment The City of Kenai is located on the Nikishka Lowland geomorphoiogica] subdivision of the Kenai Lowland. This region is characterized by a modified morainal topography, which is separated by an interlacing pattern of swamps and muskegs developed in abandoned drainage channels and broad depressions. The topography and surficial deposits of the region are primarily the products of repeated glaciations, which advanced from ice centers in the surrounding mountain ranges. Near the CiYy of Kenai, the glacia] moraines are fronted by a Kenai River Bank Erosion rechnical Report - Kenai, Alaska br~ad coastal piain ronsisting of *er~-~ccd and cl~~a7nele~d sand and gravel deposits, whic)~ . tersr~inate as steep sea b?ui'fs above a series ofraised tic~al flats. The topograpny in the area oi the Kenai River mouth consists of a bank approximat~ely 7U ~ ;eet hi~h ouoosite a low-Iying ~vetla~id and tide flaY area. The tcpography inciicat~s that thE river vaiey historically has ~xperienced much higher flows during periods of glacial retreat. 13oth th~ bed materia] and the channeI pattem refiect previous glacial discharges and, excep~ for the lower 12 miles the river, is undersized. The banlc at the mouth ~~f the river is composed of three distinct material types. An organic mat top layer approximately 2 feef thick, a fine sand layer approximately 37 feet thick, and a silt/clay layer that varies from 35 to 45 feet thick. A more detailed description of the phy~ical environment oi the project area is ~rovided in Appendices B, C, and D. ~i.3 ~nvironmeniai Resourc2s Surveys in iIie project area to inventory birds, mammals, fish and invertebrates were conducted. The Kenai River esiuary is a very biologically productive area noted foi• its abundant hshery resources including ali 5 species of salmon. Other species include. ~tickleback, iamprey, eulac}~on, rainbow trout, Dolly Varden, juvenile nlarine species such as tivalleye poliock, Pacific cod, tom cod, sole, Pacific herring, sand lance, Pacific sandfish, sculpins, snaii fish, and shrimp species. Fish and macroinvertebrates were sampled, stomach conCent analysis, and partial food webs were constructed for the estuary. Time series temperature and salinity indicated a highly dynamic nature of the physical environment,~~~~*he estuary. InverfebraCe species sampled in the project fooYprint area were limited due,Yo t hard substrates. Uncompacted snbstrates on the ~ouYh shore provided habitat for small c~a~ns (Telina sp.) and maiine wonns, which are prey for many bird species. The shoreline and wetland ia the area are tised seasonally for nesting, foraging 1nd staging by a variety of gu11s. waterfowl, and bald eagles. Along the face of the banlc, the most common birds were ravens, magpies, herrin~ gulls and swa,'lows. Harbor saa(s are roufinely observed near the river mouth. Beluga whales were also observed. There are the remains of 3 archaeologicai sites and at least 25 structures in the general proiect area. Of the approximately 25 structures, 7~ue eligibie fc~r the National Register of HisCOrie Places and the remainder must be evaIu3Yed for the Register. In addition, a portion of the project is within the boundaries of a localiy designated histotic district. A more detailed description of the environmental and cultural resources is provided in Appendix A. Kenai River Bank Erosion Tochnical Report-Kenai,Alaska 5.0 ~'R~~L~~S ,A~lD f3PP~~T'i9P~[i'4~~ 5.1 Probletn statement The town of Kenai is located along the bank of Che Kenai River at its mouth in Cook Inlet. Grosion of the north river bank has continued to encroach upon city, commercial, and private utilities and structures. The city has had to relocate utilities and roads and cannot move forward with planning and development of the area. Erosion has also resutted in properties and structures being abandoned or condemned. The steep and unstable bank is a safety risk to residents and visitors to Kenai. 5•2 Opportunities • Reduce repair and relocation eosts of public utilities a Reduce relocation cost of public, commercial, and private shuctures • Reduce repair and relocation cost of public roads • Allow for long-term pianning and developtnent of lands adjacent to the banks a Reduca safeYy risk to individuals walking along the b1ufF Kenai River Bank Erosion Technicat Report - Kenai, Alaska S.0 ~VALl9~T90~1 ~3F ~~,f~~C ~~~:~E~3F ANC! ~T,Q~BLI~1'6~P, 6.1 ~ank Erosion Process Bank erosion along the Kenai River mouth is a product of several conditions, with varying degrees of contribution. The erosion mechanisms are discussed in detail in Appendix B. Th~ mechanisms acting on the bank include: Wind - Erosion due to winds along the bank is coirunon. However, fhis volume of rnaterial is minimal and does not contribute significantly to the total erosion along tbe bank face. Waves - Erosion from large wave action is generally limited to the section of the bluff along Mission Avenue due to its open exposure Co Cook Inlet. Tl~e section of bluff downstream (seaward) of Mission Avenue is protecCed by coastal dunes and is generally not subjeeted to wave action. Wave action at the biuff section upstream of Mission Avenue is an infrequent occurrence due to the parCia] protection provided by the weYlands to the souCh and the shoal a the river mouth. Wave action ac this section requires a combination of stonn surge and high tide to overtop these natural barriers. Groucndwater Seepage -- Groundwater seepage out of the bank face at the sand and silUclay (ayer interface transmits sand particles, which weakens the upper layer. Also, water running down the face weakens the lower silUclay layer. ~ver3and ~+iow - The upper banks along the Kenai are susceptible to erosion from overland flow. Flow over the top of the bank, if left uncontroied wili readily erode the sand in ` upper bank. 6.2 Bank Erosion Rate The Sediment Impact Assessment (Appendix C) estimated the bluff erosion rate at 1.2 feet per year. This estimate ~~~as based on a comparison of aerial photographs from 19(5 and 1995. The sedimenC budget study perfonned by the University of Alaska Anchorage was based on aerial photographs from 1976 and 1999. Comparison nf these photographs provided an estimated erosion rate of 2.5 feet per year. The erosion rate (3 feet per year) used in Yhis report is considered conservative (faster) than Che actual erosion rate. A conservative erosion rate w2s used to bracket the maximum extent of damages under the without-project condition. 6.3 Sedimentation Erosion from the bluff at Kenai confributes an estimated 21,300 tons of sediment to the Kenai estuary annualiy. Sediments trom the bank consist of a mixture of gravels, sands, silts and clays, wiCh most of the noncohesive soils in the horizon comprising the upper half of the bank. About 50 percent of these upper horizon soils are sands in the size classes found in the Kenai Dunes. Thus, the bank conCributes an average of 10,600 tons of noncohesive sediments to the system each year. This represents about 7 percent of the sand flux into the system. About 60,000 tons are delivered annually by the Kenai River from upland and streambank erosion upstream of the estuary, and about 100,000 tons are delivered by ' longshore transport in Cook Inlet. Most of these sedimenfs pass through the estuary, but-- some are deposited on the tidal flats and the Kenai Dunes. Kenai River Bank E~osion Technical Report - Kenai, Alaska SYabilization of the bank would affect the sediment dynamics in the estuary. The overall impact of the reduction in sediment load if dle bank is stabilized would be very minor, however, as the system is aggradational and the rcduction in sediment volume slight. Changes in the morphology of the tidal flats and dunes are noC expected given the nef sutplus of sediment in the reach, and the coastal morphology indicates Yhat the dunes are primarily fed by longshore transport and wave action. Detailed information on the sediment assessment is provided in Appendix C. 6.4 Riverine Characteristics The general effect of a bank stabilization projecY was evaluated using the Hydrologic Engineering Center River Analysis System (HEGRAS). The model was run to determine potential changes to the river vetocities for the existing ancl with-project condition. ResulCs of the analysis indicate that the project would cause an insigniflcanY (0.1 feeC per second) to the nver velociry. This is due to the limited amount of encroachment into the river's flow path by the project. More detailed informaCion on the geotechnical investigation is provided in Appendix B. 6.5 Geotechnical investigation The purpose of the geotechnical investigation was to determine if slope stability was contributing to the recession of the bank. In addition to the stability investigation, a well flow test was conducYed to estimaYe soil permeability. The well flow Yest indicated tha[ the sand layer of the bank is highly permeable. Although the bank is receding, the collected soil data, laboratory testing, and analysis indicate thaY the slope is stable and that massive slope failures are not contributing facYors to the erosion. Soth the sand and clay slope faces, however, are susceptible to surface raveling, sioughing, and wind and water erosion. More detailed information on the ~eotechnical investigaYion is provided in Appendix D. 6.6 Environmental Evaluation 6.6.1 Cultural Resources There are the remains of two archaeological sites and four structures eligible for the Nafional Register of Historic Places that could be impacted by continued erosion during the project's period of analysis. There are about 14 additional structures that could be impacted. The historical significance of these structures is unknown and should be investigated if additional studies are performed. 6.6.2 Environmentallmpacts There is the potential for direct and indirect loss of habitat from stabilization of the bank. Direct habitat loss would oecur by placing riprap in the intertidal area and also result in a loss of potential nesting habiYat for swallows iFthe bank grade is alCered. Changing the slope of the bank would require numerous spruce trees to be removed from the top of the bank. Bald eagles commonly use these trees to perch and overlook the river and associated ~vetiands. Indirect impacCs would encompass effects of the erosion controT projecC that are encountered outside the project footprint. Of particular concern are the sand duries and the large intertidal Kenai River Bank Erosion Technical Report - Kenai, Alaska area ii~ rr~nt ot~ fne dunes and £tie se~ua2e ireatment plant. According to the recent sedizr ^~t~ impact analysis, fhe re~ulYs of the proposed erosion control project are expected to be' Althotiigh znnoring the bani; wouid decrease the amount of sedimeni entering the systen,, ~~~~is quantity is smal( in comparison to the ove~rail amoun~ of sediment contributed from other sources in the river. If the bank is cut back to form a more gentte, sfable slope and subsequeiltly revegetated, it is likeiy that the new vegetation cvill provide some bird habiCat. For instance, eagles couid perch in the trees once they grow to an adequate size. Ve~etation selected for planting sh~uld be simitar to existing vegetation in the area. There wiil like(y be disturbance and displacement of birds during some phases of constnzcrion. The timing of const~rucCion will be important since coasCraction impacts to many birds ean be avoided. Gulls nest in large mimbers on the inside bend weClands near the mouth of the river across fronl the bank and it is unknown how they 7nighe react to construction di5turbance. Shorebirds use the interCidal areas in the project vicinity to forage for prey to fuel their migration to breeding grounds. Impacts could be avoided if construction was timed to avoid the weeks that they are present. Eagtes often perch along the bank o~£the inside bend wetlands and could also be dis~urbeci by construction activities. At lo~v tides, gulls, eagles, shorebirds and ducks foraQe on the intertidal mudflats. This intertidal area is much closer to the bank than the inside bend wetlands that are onlv ~ periodieaily eovered at high tides in the spring and fail. ' it is diffieult to predict the degree of disturbance taat inay nrise from construction. In the ~~~ summer months, there is always a large amount of boat traffic near the moufh of the Ke' from both cotnmercial and recreational boaters. "I'he d~gree of disturbance from construo~r;,~i~ may be a factor of the type and duration of the noise produeed ti~om consf~vction. Seals foraging in the river moufh may be disturbed by construction activities such as excavation and placement of riprap. Since the riprap will be above the water line except far high tides, the effects a~fter constniction are likely to be minimal. Suanmarv. 5ince most bird usage oceurs outside the oroject fooCprinT aild the proj~ci is not expected to affect i,ie dunzs and m~~~dflats down-river, it is unlikely that birds will be negatively aftected in the long-teim due to tt~e proposed erosion control project. i~:owever, short-term impacts are likely for several species due to conetruction activiries. These effects could be minimized i~Fconstruction was timed prouerly. Further consultation will be necessary to ~ietermine the construetion tin~ing to minimize aff'eets to birds anc3 marine mammals. 6•7 ~can~mic Em~racts 6•7.1 Current voithout-project Conditions The bank at Kenai has experienoed severe erosion over the pasC 48 years. The erosion rate of three feet per year as used Yo bracket the maximum exteut of damages under Che without- project condition. The bank averages a loss ~f approximately a half acre per year to erosion. The avera~e value of Yhis lost land is approximately $42,000 per year over Yhe past 48 years ($2 Million). An average value per acre was taken of lots near the bank that are unaffect~ ~ by erosion and used to calculate the lost value caused by erosion. Kenai River Bank Erosior Technical Report - Kena~; AI«ska Twenry-nine lots have lost some or their entire footprint to erosion. The following figure shows the lots in relation to the existing bank line. Figure 3. Kenai Bank Lots and Existing Bank Line, Used by permission of the city of Kenai. At the cunent rate of erosion, the bank wili continue to Iose approximately a half-acre per year and land will continue to lose value. Once land becomes eroded to a certain point, thc resale value decreases. It can be reasonably assumed that once the erosion reaches a certain percentage (i.e.... 50%) of the land, that even if the land is assessed at a value, no buyer is wiIling to take the risk of purchasing the lot. Twenty-six lots adjacent to the bluff are approaching a loss of 50% due to erosion. The existing value of these lots is $540,000 aeeordin~ fo the city's tax assessment reeo'rds. This existing value is considered a lost value since the land has elose to no resale worth. Utility locations are also a concern for the city of Kenai. A sewer ]ine was moved away from the bank in 2002. Approximately 500 feet was moved at a cost of $135,000. It was recognized 4-5 years prior to the work that the sewer line was at risk of damage due to the bank eroding. The streef (Mission Avenue) adjaeent Co the sewer line aiso had to be moved at a cost of approximately $125,000. A totai of $260,000 was spent to make thesc relocations. Figure 4 shows the abandoned section of sewer line that had to be relocated as well as the sections of line that are closesY to the bank line that wili have to be relocated if the erosion problems are not addressed. Kenai River Bank Erosron Technrcal Report-Kenai,Afaska t-igure 4. Kenai Utility Locations and Existing Bank Line, Used by permission o{ the city of K~ In addition to the land eroding, the buildings that reside on those lots are at nsk of ban: ~ erosion. Currentty there are two buildings that are at immediate risk of faliing info the river. One of the buildines has part of the foundation hanging off the edge of the bank, while the other building is on the bordec In ocder to move the buildings out of harms way, the buildings must be pulled qff their foundations, placed on beams and h~ansported to another location. IC is estimated that it would cost on average approxi~natety $SQ000 per st- acture to complete a znove to another location. A total cost of $10C,0(~~ is anticipated for the immediate movement and relocation of these stnictures. A total cost of 2.9 :Vlillion dollars has been incurred by the city over the past 48 years due to the eroszon of the bank. This is an annual cost of ~60,000, with tl~e majoriYy of the costs taking place within the Iast 20 years. &•7•2 Fv4ure wi4hout-proj~ct conditions The erosion is anticipaCed to continue aC the current }iigh-end estimate of 3 feet per year. This erosion ~,vill continue to lead to 1osC value in ~and at the cuirent 2004 cost of ~42,000 per vear. Utilities and street relocations wili also continue. tt is ~stimated that at least~ an addiCional 1,000 feet of road and utility liizes are at risk of erosion. These roads and lines are anywhere from 40 to 100 feet from the bank. At the current pace of erosion, additionat sfreets and sewer lines will need to be replaced within the next 20 years. It can be estimated that replacing 1,500 feet ofutility lines would eost $405,000 and fhe roads, $375,000. A tot~' cost of $780,000 in 2004 dollars can be estimated for the relocation of roads and lines i, ~ nexY 20 years. An annual cost of $39,000 is anticipated for tl~ie movement of utility lines:~~~~~~ Kenai River Ban;~ Erosion Technical Report - Kenai. Alaska ;3 There are approximately another 20 structures that will be at risk of the erosion of the bank within the next 20 years. It is estimated that movernent of these buildings will cost in the range of $50,000 to $90,000 per sYructure. It is assumed that at least one building will neEd to be relocated each year at a cost of $70,000. The annual cost for the future without-project condition is $151,000. 6.7.3 Future with-project conditions Though it is difficult to predict the value of land in the with-project condition, there is no doubt Yhat the attractiveness of the land will increase dramaYically resuiting in additional value and added benefits to the project. The current benefits are calculated on cunent values of property nearby the bank. The benefits from a project that stops the existing erosion problems are the inereased value of land and resale abiliCy and the end to the relocation of buildings and ufiiity iines. Total annual benetit of the project is estiinated to be $151,000. Kenai River Bank Erosion Technical Report - Kenai, A/aska ^, .i 7.fl ~.Or~CC.~9.bt~~i 7.1 @anic gtabiiization i~esign ~onsideratsons Further study and design oFbank stabilization measures should tlrst address groundwater seeping ouY the bank face. Any soluYion that does not address the groundwater wi11 not solv a major source of erosion. C~pfions that may be considered to address the groundwater include: a cuCoFf wall and pump system to inYercepf the groundwater, draw dou~n wells to reduce the water table along the bank face, a horizonta] drain system into the face of the ban to collect and divert the water, a free draining retaining system to hold back the bank maten and still allow free drainage of water from the; face of the bank, or creation of drainage channels to alter the groundwater gradient. 7.2 l~dditional Sfiudy P~equirements The findings of t11e Corps' 905(b) report indicate that bluffsfabilization may be feasible froi; a technical engineecing perspecfive. However, the amount of nariona( economic development benetlts available would not support Federal participation in a cost-shared feasibility sYudy under existing shore protection authorities until changes in the socioeeonomic or plrysical environment warrant a restuciy ot the area. If the 1oca1 interest desires additional technicai assistance it can be requested through the Corps' Planning Assistance to StaCes Program. Technical assistance can also be pursU~'~~~ through additional congressional legislation. I~f Federal participation in a feasibility level study of barilc sfabilization is conducted, ~ evaluation would be requir~d under the Clean WaCer Act, National Historic Preservation Acf, NaYionat Environmental Poticy Act, Coastal Zone'vlanagement Act, F.ssential Fish habitaC. Endangered Species Act, and Fish and Wildlife CoordinaCion Act. ~ 7.3 Conclusian Stabilization is technically possible and could be performed in such a manner to minimize its effect on the environment. Aclditional studies should focus on field data collection to address erosion from ~roundwater seepage, identification of cultural resources, and analysis and design of bank stabilization measures. Kenai Rivar Bank Erosion Technrcal Report - Kenai, Alaska 24 August 2006 U.S. ARMY CORPS OF ENGINEERS KENAI RIVER BLUFF EROSION STUDY Fact Sheet STUDY FUNDING: • Energy and Water Development Appropriations Act, 2002, Senate Committee Report provided $500,000 s Energy and Water Development Appropriations Act, for FY 2006, Conference report provides $500,000 STUDY AUTHORIZATION: • Section 55 of the 1974 WRDA P.L. 93-251 • Provide technical and engineering assistance to non-Federal public interests to develop methods of preventing damages attributable to shore and streambank erosion SUMMARY OF WORK TO DATE: • Initial technical study of bluff erosion - Report distributed July 2006 - Study focused on many of the issues raised by agencies following preliminary permit application for bluff stabilization - Study findings indicate no significant adverse impacts to the environment from bluff stabilization • R&M Consultants hired to scope geotechnical field investigations • Tetra Tech, Inc. hired to scope remaining study and design needs UPCOMING WORK: • Geotechnical field investigations - R&M scheduled to perform field work fall 2006 - Work will include drilling of 6 to 8 holes along the bluff toe and an additional 6 to 8 holes adjacent to the top of bluff - Groundwater monitoring equipment will be installed in some of the top of bluff holes - Information will better define subsurface soil and groundwater conditions and will be used in bluff stabilization designs • Identify cultural resources - to be completed by Corps • Tetra Tech Studies - To be initiated in fall 2006 - Topographical survey of the bluff - Conceptual design of bluff stabilization alternatives - Detailed design of preferred stabilization alternative - Cost estimates at conceptual and detailed design level • Agency scoping meeting - to be scheduled for September 2006. Intent is to discuss completed studies, identify remaining or new agency concerns of bluff stabilization, and identify further study needs. For more information contact the project manager, Dave Martinson at 907- 753-2668 or the project formulator Pat Fitzgerald at 907-753-5638. YriTFORMATION %TEMS KENAI CITY COUNCIL MEETING SEPTEMBER 6. 2006 9/1/2006 Purchase Orders Between $2,500 and $15,000 for council review. 2. 6/ 12/06 Kenai Convention & Visitor Bureau meeting minutes. 3. City of Homer, Alaska Resolution No. 06-96, pledging a contribution of $2,500 to the proposed statewide methamphetamine abuse education carnpaign. 4. 8/14/Q6 Kenai Harbor Rate Schedule. 5. 8/23/06 L. Semmens letter to Division of Retirement and Benefits related to the draft 2006 Supplement to the Actuarial Results and City of Kenai unfunded liability. 6. 9/5/2006 Kenai Peninsula Borough Assembly Meeting Agenda. 7. 8/30/06 Public Works Department, Project Status Report. 3 . n: ~ U Z ~ O U ~ O ~ o° 0 0 0 r~i .-. ~ ~ a N °o `O C ~ W o m N w W Z 4 W W W y ~ W , m W y ti ~ ~ wz ~ ~~~;.~..y ~ 2 U = v ~ ~ Q o o o o o ~ ~ ~ o ~ W ~t uY O> 6 Cl M O ~ V fD ry ~ N N M ~n f`• ~ ~ 0 n: J m w ~ Z J ~ U z ~ O ~ ~ ~ w _ ~ ~ Z ~ a~ ~ W a ~ ~ W ~ O d ~ Z ~ ac ~ w cc Y O m ~ J p O J ~ ~n 0. . ~ C7 ~ Q a o > ~ ~ ~ ~ ¢ i r ~ r ~ _ a x ~ ~ w m ~ w F ~ ~ ¢ ~ O~ Q ~ z Q Z a W ~ U ~ F W w N U' 0 d= 4 a ~ ~ ~ ~ W ~ °6 m ~ U 2 ~ ~ ~ ~ I¢- ^? ~ w O ~ ~ ~ ~ U u, O 3 ~ p ¢ C~9 ~ Z 13J p z H ~n z ~ J ~ Z a ~ o ~ ~ v x ~_ W a Z a z m ~ ~ ~ tJ) Y U p Q - I ~ ~ Q ~j ~ ~ 0 U ~ ~ p o ~ Z J ~ W O 2 ! C7 J t[ p Z ~} V Tn - I ~~ + Kenai Convention & Visitor I3ureau Kenai, AK Monday, June 12, 2006, 5:30 p.m. Alexandra M. Lindgren, Presiding A. CALL TO ORDER & ROLL CALL: Roll call was taken at 5:35 p.m. and the following members were: Present: Alexandra M Lindgren (left at 7:05 p.m.); Fred Braun; Sharon Brower; Diana Lofstedt; Marion Nelson; Jacquie Steckel; Robin West; Honorable Pat Porter Absent: Ron Malston (excused); David Edwards-Smith; Roberc Fulton Visitors PresenC: Mya Renken B. APPROVAL OF AGENDA: Additions to the Agenda: G3: I.etCer of resignation; G4: Barnding; Action: Sharon moved [o approve the agenda, Jacquie second the motion. Passed unanimously PERSONS SCHEDULED TO BE IIEARD None C. APPROVAL OF MINUTES: Action: Fred moved to approve the minutes, Diana second the motion. Passed unanimously. D. REPORTS: Arts Committee Discussioia: Marion Nelson is Yhe Chair of the Arts Committee. There will be a meeting of the committee on Monday, 7une 19`h at 5:30 p.m. Financial Report - Discussion: None Executive Director Discussion: The report was presented in writing. Executive Director directed to contact Diane Zirul to sit on the KVCC Retail Committee. E. IJNFI~IISHED BUISNESS: By-taws review Action: Tabled until October, 2006 meeting. Executive Director's Evaluation Motion: Robin moved to adopt draft evaluation to be finalized by the Executive Committee and the Executive Director. Steckel seconded the moCion. Action: Motion passed unanimously. Soard Development Action: Tabled until October, 2006 meeting. Member Survey Action: Tabled until September, 2006 meeting. Employee Aandbook Review Action: Tabled NEW BLTISNESS Cruise Ship Initiative Motion: Marion moved to adopt; Shazon seconded the motion. Discussion: Resolution in opposition to Ballot Initiative 2 was presented for discussion. Action: Passed unanimously. Resolution 2006-02 Motion: Marion moved to adopt; Dana seconded the motion. Discussion: Resolution defining the roles of the CVB and Chamber was presented. Action: Passed unanimously. Letter of Resignation Motion: Marion moved to nominate Fred to Vice President through the 2006 calendar year. Steckel seconded the motion. Discussion: Lori McL.ennan tendered her resignation from the Board. Action: Resignation accepted. Passed unanimously. Branding Motion: Steckel moved to participate as a stakeholder in branding of the Kenai Peninsula; Marion seconded the motion. Discussion: KCVB and the Kenai Chamber of Commerce can jointly sponsar at the stakeholder level. KCVB will be a stakeholder with the actual amount to be determined by the Chamber's contribution. Action: Question called. Passed unanimousiy. BOARD COMMENTS Robin- Thank you Marion for stepping up as Chair of Arts Committee Jacquie- Thank you Robin, Mya, Fred, Marion and everyone. NEXT MEETING SET FOR JULY 31, 2006 at 5:30 p.m. ADJOURNED at 7:20 p.m. ~- l ~ ~ CITY OI~' HOP~IER ElOMER, ~LASKA Council RF;SOLUTION Ofi-96 A RESOLUTION OP 'I'HE HOMER C'1TY COUNCZL PLEDGING A CONTRIBUTIO~I OF ~2,500 TO THE PROFOSED STATEWIDL METHAMPHETAMINE ASUSE ~I7UCAT'[OV CAMPAfGN. ~WHEREAS, At a recent Kenai Peninsula Conference of Mayor's meetin„ Kenai Peninsula Borough Mayot John Williams i~foaned the Mayors about an initiative sponsored by the Kenai Peninsula Borau~h, the I~4atanuska-Susitna Bocough, and tlle Municipality of Anclloi~age to start a statewide methainphetamine abuse ~ducation progzam, and V~'HEREAS, Mayor Williams is akeemptuie to rtiise a local cash mateh and sezd nioney for the pro~ am from Borough org~nizations and municipalities, and WHEREAS, Mayor ~~iillianis has requested that Municipalities in the Borough pledge 52,500 towazd the campaign and the City Council reviewed his reauest and supporting infonnation at the regular Council meeCin; on July 24, 2006, and ~ ~VHEREAS, The City of Homer has ex~eneaced tl~c d~vastatino effects of methamphetamine abuse on individuals, families, and the cornmunicy at targc, anci WHEREAS, The Homer City Council cvishes ta help address tiiis prublcm 1nd believes th~it community ee4ucati~n is a vitally important com~oneiit of this effort. NO~~ THEREFORE BE 1T' RESOLVEU, Chat the Hor,er C'ity Couucil l~ereby pledges $2,.500 for the pro~~osed state-wide methamphetamine abuse ct~ucation pro~~am described by Mayur 4b'illi~ms, and BE CT FURTHER RGSOLVED, That the Council authorizes the CiCy zvlanager to draYt the necessazy budget ordinance ta fulfiil this pied~e at the appropriate time when the program is cstablished, espenditure ru[es are fonnalized, and thz funds are requested. PASSED AND APPROV~D by the Homer Gity Council this 14`h day of August, 200b. C Y OF HUMER f~ ~._ J~~u~ItE C ORNADAY, MAYOR ~ A'I"Y~ST: G` ~~ , i~ V CLERK ~'[scal Note: SZ,500 wheu reqnested ! GF Reserve Pund Balano~ August 14, 2006 KENAi HARBOR RATE SCHEDULE The City Manager shall establish the fees, rates, and charges for the biiling and collections for the support of the harbor. The City Manager reserves the right to change the rate schedule at any time. There is a 5% sales tax added to the total invoice (3% City and 2% Borough). RATE SCHEDULE SLIMMARY 1. Product wharfa e w/crane; w/o forklift $ 0.07/ib Non- roduct wharfa e ice, nets, sta les, etc. 0.04/Ib. Purchases Purchases Purchases Under 500 500 al. 2000 al. Gallons or more or more 2. Fuel Gasotine Re ular 2.746 2.696 State Marine Tax .050 .050 Federal Tax .184 .184 Total $i al. 2.98 2.93 Diesel #2 3.02 2.97 2.81 State Marine Tax .05 .05 .05 Total $/ al. 3.07 3.02 2.86 3. Used Oil Dum in $1.00/ al. 4. Boat Launch Ram 0-10 min. _$15.00 includes Parkin with Trailer Each min. over 10 min. _$1.00/min. Seasonal ass er boat = $150/season 5. Parking Oniy if with trailer, must a launch fee $10.OOlda Seasonal Pass for Parkin $100.00lSeason 6. Tie U Fee A. Skiffs tied to land side of concrete dock $7.00lda Seasonal Pass er boat $150/season B. Boats tied to buo in river $10.00/da Seasonal Pass er boat $150/season 7. Forklift w/0 erator 1/2-hr. minimum $50.00/hr. 8. Ci Labor Char es for call out 2-hr. min. $40.00/hr. 9. Other Items See Dock Mana er Prior to Use Finance 4 \ .. y-: v_ ~e-~ \ -~ ~ _. -,:r ,-_ __. ~.. Elaec~yof/ KENA~ SKA August 23, 2006 .~... ~ `~V ~~a~e witti a Past, Gc~ wit. -~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 ! Fax: (907) 283-3014 www.ci.kenai.ak.us State of Alaska Division of Retirement and Benefits Traci Carpenter, Director PO Box 110203 Juneau, AK 998 1 1-0203 Dear Ms. Catpenter: The draft 2005 Supplement to the Actuarial Results indicates thaf the unfunded liability of my employer, City Kenai, has grown from $11,565,261 to $16,917,297 a 46% increase. This concerns me very much and will concern our Council just as much since the 2008 actuarially required rate for Kenai is 36.67%. I expect to be asked if I am confident that this liability is correet. I have responded to this question previously that I have no information that would help me assess the reasonableness of the number. Consider that four years ago (FY2001) the City of Kenai had a surplus of nearly $2 million. What happened?? How could the liability grow from a surplus in 2001 to $17 million today? While I feel fairly well informed on the overall picture, the specifics for Kenai simply are not available. Charlene Morrison has provided me with certain information that may help, but the change in the liability per Chis latest valuation compels me to seek detailed analysis of the liability assessed Co Kenai. I understand that the State does not provide employers with the details supporting these liability calculations except for a fee. This policy should be reconsidered. Should anyone be expected to hlindly accept these liability catculations and the resulting impacts on expenditures without supporting documentation? I can assure you no vendor would be paid under these conditions. I would like to receive a report that provides all of the details necessary to verify the accuracy of this liability. Since I am not an actuary, I suspect that I do not even know what to ask for to accomplish such a verification. The following is a list of iCems that I think would be helpful: The name, age, service dates, retirement dates and employers of every City of Kenai employee-active, inactive and retired- or basically ail of the underlying information that the acfuary uses to make Yhe calculation of Kenai's Iiability. Ideaily, this would be displayed in a table showing Yhe liability associated with every employee, the sum of whieh would be the total liability for the City. • An item analysis that details what specific elements caused a 46% increase in the unfunded liability from FY2004 to FY2005. This would be similar to what has been done for the overall plan. Please let me know as soon as possible when this information could be available and how much it will cost. Thank you for your efforts to effectively manage the retirement systems and for your assistance with this request. Sincerely, 7 ~~;?~~v~ ~v~-- Lawrence A. Semmens Finance Director Cc: Kenai City Councii Kenai Peninsula Borough ~~- 6 Assemblv A~enda September 5, 2006 - 7:00 p.m. Regulaz Meeting Borough Assembty Chambers, Sotdotna, Alaska 2on Long (ssembly President 'eat 6 - East Peninsula 'errn Expires 2006 'ete Sprague (ssembly Vice President eat 4 - Soldotna 'erm Fxpires 2007 )an ctwy (ssembly Member 'eat 1 - Kalifornsky 'erm Fxpires 2006 'aul Fischer lssembly Member ~eat 7 - Central 'err" -~~~~ires 2007 ). ' _:, Germano is~....bly Member ~eaY 8 - Homer "erm Expires 2008 ~fargaret Gilman issembly Member ~ea[ 2 - Kenai "erm F~pires 2008 vlilli Martin fssembly Member ~eat 9 - South Peninsula !'erm Expires 2006 srace Merkes lssembly Member ~eat 5-Sterling/Funrry River !'erm Expires 2008 sary Superman 4ssembly Member ieat 3 - Nikiski Perm F.zpires 200~ A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. INVOCATION D. ROLL CALL E. COMMITTEE REPORTS F. APPROVAL OF AGENDA AND CONSENT AGENDA (All items listed with an asterisk (*) ue considered to be routine and non-controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly Member so requests, in which case the item will be removed from the Consent Agenda and considered in iu normal sequence on the agenda. G. APPROVAL OF MINUTES * l. August 15, 2006 Regulaz Assembly Meeting Minutes ......... 1 H. COMMENDING RESOLUTIONS AND PROCLAMATIONS I. PRESENTATIONS WITH PRIOR NOTICE (Limit to 2o minutes total) 1. Central Peninsula General Hospital, Inc. Quarterly Report (10 minutes) J. PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE E~GErIDt~ (3 minutes per speaker; 20 minutes aggregate) ~ K, REPORTS OF COMMISSIONS AND COUNCILS September 5, 2006 Page1 of 7 L. MAYOR'S REPORT ...................................................22 1. 2. Assembly Requests/Responses a. PERS Funding Information - Craig Chapman . . . . . . . . . . . . . . . . . . . . 24 b. "What is the Retention of the Jobs Reported from Small Bnsiness Clients of the SBDC? Are These Jobs Full Time, Part Time or Seasonal?>, - Mazk Gregory, SBDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Agreements and Contracts a. Spruce Bazk Beetle Mitigation Program: • Approval of Contract with Tinker Creek Surveys for Beaver Loop Surveying Project . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . 26 • Approval of Contract with Tinker Creek Surveys for Sunset #2 Surveying Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 • Approval of Contract with Segesser Surveys for Poppy Ridge Surveying Project< ....................................30 • Approval of Contract with Saw Sisters for Forest Glen RO W Project .............................................32 b. Approval of Contract with ProComm Alaska for Communications Tower Relocation from CES to the New Emergency Response Center .........................................................34 c. ApprovalofContractwithTemaFirmaTestingforQualityAssurance and Special Inspection for South Peninsula Hospital East Addition Project ......................:............................36 d. ApprovalofContractwithIntegritySurveysforRockyRidgeLandfill Site Survey ................................<...............37 e. Appaoval of Conteact with Welding Services for Pre Demolition Bleacher Removal at Qld Seward Middle School . . . . . . . . . . . . . . . . . . 38 f. Approval of Contract with Fire Technology Services for Classroom Instruction at CES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 g. Approval of Contract with P.H.S. for Classroom Instruction at CES ... 40 September 5, 2006 Page 2 of 7 h. Approval to Awazd Contract to Puffin Electric for Purchase and Installation of a Fire Station Generator for Kachemak Emergency Service Area ...............................................41 i. Approval to Awazd Contract to Peninsula Plumbing and Heating for Nikiski Swimming Pool Ultrauiolet Disinfection System Upgrade .... 42 j. Approval of Sole Source with Dr. WiIliam Cooper for Medical Director Services . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 k. Approval of Sole Source with Great Originals, Inc. for Map Book Printing Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 1. Approval to Awazd Contract to Pacific Wire Products, Inc. for Baler Wire Purchase for Homer and Central Peninsula Landfill . . . . . . . . . . . . 47 3. Other a. Letter of Recognition from George Cannelos, Federal Co-Chair, Denali Commission, for Complerion of Solid Waste Award ......... 49 b. Capital Projects Quarterly Report - thru June 30, 2006 . . . . . . . . . . . . . . 50 M. ITEMS NOT COMPLETED FROM PRIOR AGENDA - None N. PUBLIC HEARINGS ON ORDINANCES (Testimony limited to 3 minutes per speaker) 1. Ordinance 2006-19-06: Appropriating $250,000 from the Borough's Generai Fund Balance to Partially Reunburse the CES Capital Project Fund for its Contribution for Conslruction of an Emergency Response Center (Mayor) (Referred to Finance Committee) . . . . . . . ., . . . . . . . . . : . . . . . . . . . . . . . . . . . 67 2. Ordinance 2006-19-08: Appropriating $150,000 in the Borough's General Fund for Transfer to the General Govemment Capital Projects Fund for Capital Improvements at Borough Facilities (Mayor) (Referred to Finance Committee) .....................................................69 3. Ordinance 2006-19-10: Accepting and Appropriating Four State Grants Totaling $105,000 for School Projects (Mayor) (Refened to Finance Committee) ......, ..............................................71 4. Ordinance 2006-19-11: Accepting $325,080 from the State of Alaska for the Local Match to Federal Funds for Keystone Drive Road Improvements and Appropriating the Grant to a Road Service Area Capital Project Account (Mayor) (Referred to Finance Committee) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 September 5, 2006 Page 3 of 1 o. P. urr~nvrs~n BusirrESs 1. Postponed Items a. Ordinance 2006-21: Amending KPB Chapter 5.12 to Require That a Senior Citizen or Disabled Veteran must Be Eligible for a Permanent Fund Dividend for the Same Yeaz or for the Immediately Preceding Year in Order to Receive the First $150,000 Exemption from the Assessed Value of Real Properry and T'hat, in Order to Qualify for the Unlimited Exemption above $150,000, the Senior Citizen or Disabled Veteran must Have Been Absent from the Kenai Peninsula Borough for No More than 90 Days in the Calendar Yeaz with Certain Excepfions and Have Met a Residency Requizemettt (Superman, Germano) (Referred to Policies and Procedures Committee) ...............................................83 b. Ordinance 2006-26: Amending KPB 5.12.105 to Require Late-Filed Senior Citizen and Disabled Veteran Properiy Tas Exemption Appiications to be Filed by February 15 of Each Yeaz (Ciermanoj (Referred to Policies and Piocedures Committee) . . . . . . . . . . . . . . . . . . 94 c. Ordinance 2006-19-02: Accepting and Appropriating $10,000 from Michael Anderson as a Public Interest Contribndon to Develop and Conduct an Environmental Protection Symposium on Gravel Pits and Gravel Pit Operation (Mayor) (Refeaed to Policies and Procedures Commiitee) ..............................................100 NEW BUSINESS 2. Bid Awards *a. Resolution2006-082:AuthoringAwardofContractforPurchaseand Installation of Emergency Response Center Workstation Furniture (Mayor) (Referred to Finance Committee) . . . . : . . . . . . . . . . . . . . . . . 103 ResoIutions *a. Resolution 2006-077: Changing the November 2006 Assembiy Meeting Date (Long @ the request of the Borough Cierk) (Refeaed to Policies and Procedures Committee) . . . . . . . . . . o . . . . . . o . . . . . . . 106 *b. Resolution 2006-078: Opposnxg the Alaska Railroad's Permit Request to the Alaska Department of Environmentat Conservation to Spray Herbicidal Mixtiues Along the Raikoad's Rights of Way with the Kenai Peninsula Borough (Long} (Referred to Legislative Gommittee) ...............................o..............108 September 5, 2006 Page 4 of 7 *c. Resolution 2006-079: Authorizing the Acceptance of Late-Filed Senior Citizen and Disabled Veteran Exemption Applications (Mayor) (Referred to Policies and Procedures Committee) . . . . . . . . . . 111 *d. Resolution 2006-080: Authoring the Transfer of Surplus Project Funds to Increase Funding for Areawide Upgrades to Borough Facilities to Comply with the Americans with Disabilities Act (ADA} (Mayor) (Referred to Finance Committee) . . . . . . . . . . . . . . . . . . . . . . 138 *e. Resolu6on 2006-081: Authorizing the Beaz Creek Fire Service Area to Purchase $30,000 of Hose with Funds to be Provided by Canceling a Prior Appropriation (Mayor) (Referred to Finance Committee) ..... 141 3. Ordinances *a. Ordinance 2006-19-19: Accepting and Appropriating Two State Grants Totaling $405,000 for School Equipment, Supplies, and Mini- Projects (Mayor) (Hearing on 10(10/06) (Refeaed to Finance Committee) ..............................................144 *b. Ordinance 2006-19-20: Accepring and Appropriating on Behalf of Anchor Point Fire and Emergency Medical Service Area a Rura1 Fire Assistance Crrant from the U.S. Department of Interior (Mayor) (Shortened Hearing on 09/19/06) (Refened to Finance Committee) ... 149 *c. Ordinance 2006-19-21: Accep6ng and Appropriating on Behalf of Nikiski Fire Service Area a Volunteer Fire Assistance Grant from the Alaska Depazlment ofNatural Resources (Mayor) (Shortened Hearing on 09/29/06) (Referred to Finance Committee) . . . . . . . . . . . . . . . . . . . 154 *d. Ordinance 2006-19-22: Accepting and Appropriating on Behalf ofthe Sewazd/Bear Creek Flood Service Area a State Grant in the Amount of $10,499.75 for Updating the Flood Hazard Midgation Plan (Mayor) (Hearing on 10/10/06) (Referred to Finance Committee) .... 159 *e. Ordinance 200b-34: Confirming the Assessment Roll for the West $rook Estates Road Improvement Assessment District (Mayor) (Hearing on 10/10/0~ (Referred to Finance Committee) . . . . . . . . . . . 163 4. Other *a. Approval of Election Boards, Canvass Board and Absentee Voting Officials for the October 3rd, 2006 Regulaz Municipal Election (Referred to Policies and Procedures Committee) . . . : . . . . : LAYDOWN September 5, 2006 Page 5 of 7 Q. R. S. T PUBLIC COMIVIENTS AND PUBLIC PRESENfATIONS (3 minutes per speaker) ASSEMBLY MEETING AND HEARING ANNOUNCEMENTS September 19, 2006 7:00 PM Regulaz Assembly Meeting Homer ASSEMBLY COMMENTS PENDING LEGISLATION (1'his item tists legislation w6ich will be addressed at a later date as noted.) Resolution 2006-070: Supporting an Application to the U.S. Boazd on Geographic Names to Officially Name an Unnamed Lake South of Soldotna as Pula Lake (Mayor) (Hearing on 09/19/06) (Referred to Lands Committee) 2. Ordinance 2006-19-13: Accepting and Appropriating a State Grant in the Amount of $20,000 for Purchase of Borough Properiy by the Kachemak Gun Club, Inc. (Mayor) (Hearing on 09/19/06) (Referred to Finance Committee) 3. Ordinance 2006-19-14: Accepting and Appropriating a State Grant in the Amount of $10,000 for Purchase of Respiratory Support Equipment for Newborn Infants at South Peninsula Hospital(Mayor) (Hearing on 09/19/06) (Refeaed to Finance Committee) 4. Ordinance 2006-19-15: Accepting and Appropriating a State Grant in the Amount of $30,000 for Pre-Development Activities for Senior Hausing for Anchor Point Senior Citizens, Inc. (Mayor) (Hearing on 09/19i06) (Referred to Finance Committee) 5. Ordinance 2006-19-16: Accepting a$38,500 Grant from the State of Alaska for the Borough's Coastal Management Program (Mayor) (Hearing on 09/19/06) (Referred to Finance Committee) _ 6. Ordinance 2006-19-17: Accepting and Appropriating a State Grant in the Amount of $17,000 for Purchase of a Bnash Fire Attack Vehicie for the Anchor Point Fire and Emergency Medical Service Area (Mayor) (Hearing ~ on 09/19/0~ (Referred to Finance Committee) Ordinance 2006-27: Changing the Name of Cenixal Kenai Peninsula Hospital Service Area to Healthcare Service Area of the Central Peninsula, and Changing the Number of Members of the Boazd from Seven to Nine (Mayor at Request of Central Kenai Peninsula Hospital Service Area Board) (Tabled on 06/20%0~ (Referred to Policies and Procedures Committee) September 5, 2006 Page 6 of 1 8. Resolufion 2006-029: Reclassifying Certain Borough Land in the Sunrise Area Pursuant to KPB 17.10.080 (Nfayor) (Tabled on 04l04/06) {Referred to Lands Committee) U. INFORMATIONAL MATERIALS AND REPORTS V. NOTICE OF NEXT MEETING AND ADJOURNMENT The next meeting of the Kenai Peninsula Borough Assembly will be held on Septembez 19, 2006, at 7:00 P.M. in the Homer City Council Chambers, Homer, Alaska. This meeting will be broadcart on KDLL-FM 91.9 (Cenbal Peninsula), KBBI-AM 890 (South Peninsula), K101A0-FM88.1(East Penirrsula). Copies of agenda items are available at the Borough Clerk's O~ce in the Meetrng Room just prior to the meeting. For jurther information, please call the Clerk's O~ce at 714-2160 or toll free within the Boraugh at 1-800- 478-4441, Ext. 2160. Visit our website at wivw.bnrough.kenaiak.us for copies of the agenda, meeting summaries, ordinances and resolutions. September 5, 2006 Page 7 of 7 ~n~° ~ Project Status Report NC=Non-Construction F=Future STIP=State Trans. Imp KK - Keith Kornelis JI. - Jack La Shot RS - Robert Springer MK - Manlyn Kebschull Jet • Jan Taylor ~c~i City Contact Pr~t Na~ Status arn A KK Adivate Old Weils Public Works is looking at existing wells in our search for water system improvements. HDL working on arsenic ground water study. A MK Airport Suppiemental Planning Proceeding with implementation. Assessment A JL Airport Terminal Modifications Change Order 7 work finishing - large bury pit excavated. A KK City Parking Lot Improvements A JL Contaminated Soils - Shop A KK Kenai Boat Launch Improvements A KK Kenai River Bluff Erosion Controi Project A JL A KK A KK Parking lot improvements to library, public safety, senior center, and recreation center to be added to LID's Paving Projects 2007. Sewer project should start September 5. Pipe material delayed. Peninsula Construction has completed this project. The Corps has received funds to help with the design and answer any questions from the study and agencies inciuding obtaining the Corps Permit. City working with Corps consultant. Ciry received Corps fact sheet 8/24l06. Kenai Soccer Fields Re-bid February. Lawton Drive Water Main WH4 Nelson completed design but going to add water to Swires main from WH4 to WH2. McCollum/Aliak LID Engineering design, surveying, ROW, and inspection awarded to Nelson. Project scheduled for 2007. Wednesday, August 30, 2006 Page t ot 3 ~~iFJ City Contact PruJe~t Nama Status s~ A JL Miliennium Square - Meeting scheduled wiih ADEC, Dee Gaddis, City Enviromental Study Ma~ager, etc. A KK On-Site Wells Project waiting on Municipai Water System Improvements. A JL Parallel Taxiway Punch list items. A Jl Runway Safety Zone/Ex4ension Contractor mobilizing. Work will begin soon. A KK Set Ne4 Drive LID Nelson completed design. AII bids rejected - going to bid ali paving projects together in 2007. A KK Town Ciock Public Works completed its work on this project. Parks working on items. A KK WH 2 Orca Tech did jar tests for color removal at WH2. Good results. City looking at a pilot test for color removaL A KK WH 4 Drilii~g new well at Section 36. Filtronics, Sevem Trent, Kinetico, Pureflow Filtration Systems are still interested in treatment systems. F KK Angler Drive LID City received a new petition for paving Angler Drive. New City Manager's report (starting proceedure all over again) is scheduled for 9/6/O6 Council meeting. F KK Boating Faciliry Facit Road Street crew has built this exit road. We stili need to work on 112 of the parking lot and widen the road. F JL Maintenance Shop ``` Preliminary plans and specifications complete. F KK S. Ames and Thompson Park Property owners are circulating petitions for LID LID Wednesday, August 30, 2006 Page 2 of 3 A/NC/F/ City Contact Pro~ect Name Status SiP F KK Shamrock Circle LID Council put this project on hold. STIP KK DOT - Bridge Access Pathway Pathway along Bridge Access Road from K-Beach to Spur 3.3 miles...Project in environmeotal assessment. Design scheduled FFY08. Construction after FFY09. Wednesday, August 30, 2006 Page 3 of 3 SEPTEMBER 6, 2006 REGULAR COUNCIL MEETING BY: Requests for amendments to the agenda: ADD TO: E-la -- E~ibit 2A (map indicating current Airport Reserve Boundary, and recommended boundaries of consultant, Airport Comnussion and Adrivnistration). CI1'Y MANAGER CONSENT AGENDA None. 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"~ ~ ~'F! ~ I ~%%' . ~ ~ ~ i . ~,r ~ ' "_ ',-A . u ~ ~r - ~ i ,„„ ~.. a ; ~ . p ~ ~ ~ g~ ~f : ~., ~.,ae4 Ff ~n ~ 9 ~- ' ~;~7 ~ _ ~P&a: INFORMATION ITEMS KENAI CITY COUNCYL MEETING SEPTEMBER 6, 2006 9/1/2006 Purchase Orders Between $2,500 and $15,000 for council review. 2. 6/ 12/06 Kenai Convention & Visitor Bureau meeting minutes. 3. City of Homer, Alaska Resolution No. 06-96, pledging a contribution of $2,500 to the proposed statewide methamphetamine abuse education campaign. 4. 8/14/06 Kenai Harbor Rate Schedule. 5. 8/23/06 L. Semmens letter to Division of Retirement and Benefits related to the draft 2006 Supplement to the Actuarial Results and City of Kenai unfunded liability. 6. 9/5/2006 Kenai Peninsula Borough AssemUly Meeting Agenda. 7. 8/30/06 Public Works Department, Project Status Report. SEPTEMBER 6, 2006 REGULAR COUNCIL MEETING RE(~UESTED BY• Requests for amendments to the agenda: ADD TO: E-la -- E~chibit 2A (map indicating current Airport Reserve Boundary, and recommended boundaries of consultant, Airport Couunission and Administration). CITY MANAGER CONSENT AGENDA None. MAYOR'S REPORT AGENDA C\\\~NAI CITY COUNCIL - REGULAR MEETING ~r~ SEPTEMBER 6, 2006 ~~-~ 7:OOP.M. h,~ KENAI CITY COUNCIL CHAMBERS MFNOI.AlpSN6 http:Uwww.ci.kenai.ak.us ~ ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM E: PUBLIC HEARINGS 1. Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 2i.10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 2120 (POlicy Governing Modification ot Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Reserve Lands) and KMC 21.15 (Lease and Sale of Airport Land Outside of the Airport Reserve). a. Substitute Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Lands), KMC 21.15 (Provisions Required) and KMC 2120 (POlicy Goveming Modification of Existing Leases), and Replacing Them With KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing of Airport Reserve Lands) and KMC 2~.15 (Lease and Sale ot Airport Land Outside of the Airport Reserve). 2. Ordinance No. 2181-2006 -- Increasing Estimated Revenues and Appropriations by $20,000 in the General Fund Library Departmentfor a State Grant. 3. Ordinance No. 2782-2006 -- Increasing Estimated Revenues and Appropriations by $4Q000 in the General Fund Poiice Department for a State Grant. 4. Ordinance No. 2183-2006 -- Repealing the Existing KMC 7.30 (Airport Land and Terminal) and Repiacing It with a New KMC 7.30 (Airport land Sale Permaneni Fund). 5. Ortlinance No. 2184-2006 -- Amending Portions of KMC 1.56 (Kenai Municipal library Department) and KMC 1.57 (Library Commission) Regarding Lending Policies, and Repiacing the Term "Librarian" with "Library Director." 6. Ordinance No. 2185-2006 - Estabiishing a Centrai Mixed Use Zone (CMU) at KMC 1420.t25 and Amending the Various Parts of the Kenai Zoning Code by Adding the Provisions to Encompass the New Zone, and Updating Portions of the Land Use Table at KMC 1422.010. 7. Ordinance No. 2186-2006 -- Amending Estimated Revenues by $3,580 in the Senior Citizen Title III Fund and Increasing Estimated Revenues and Appropriations by $1,000 in the Senior Citizen Fund. 8. Ordinance No. 2167-2006 -- Increasing Estimated Revenues and Appropriations by $24,630 in the General Fund to Pay for Attomey's Fees Awarded in the Recreation Center Litigation. 9. Resolution No. 2006-50 -- Transferring $8,000 in the Airport Fund to Purchase Equipment. ITEM G: UNFINISHED BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Ratified 2. Approvai of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2788-2006 -- Increasing Estimated Revenues and Appropriations by $500 in the General Fund to Purchase Library Books. 4. "Ordinance No. 2189-2006 -- Increasing Estimated Revenues and Appropriations by $16,000.00 in the General Fund for a Homeland Security Grant to Fund a Rewrite/Revision of the City of Kenai Emergency Operations Plan. 5. Approval -- Election Boards/October 3, 2006 City of Kenai General Election 6. Approval -- Amendments to Librery Regulations 7. Discussion -- Proposed Angier Drive Special Assessment ~~. DistricUReport of City Manager. ~'~ EXECUTNE SESSION -- None Scheduled. ITEM N: ADJOURNMENT i The public is invited to attend and participate. Additional information is available through the City Clerk's ofiice at 210 Fidalgo Avenue, or visit our website at httq://www.ci.kenai.ak.us. Carol L Freas, City Clerk D186/271