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HomeMy WebLinkAbout2024-06-05 Council PacketKenai City Council - Regular Meeting Page 1 of 3 June 05, 2024 Kenai City Council - Regular Meeting June 05, 2024 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS 1. Fiscal Year 2023 Audit Report, Joy Merriner, BDO USA, LLP. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. Ordinance No. 3418-2024 - Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year Commencing July 1, 2024 and Ending June 30, 2025 and Committing $4,499,039 of General Fund, Fund Balance for Future Capital Improvements. (Administration) 2. Ordinance No. 3419-2024 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.070 - Acting Positions, 23.30.030 - Probationary Period for Employees in the Classified Service, 23.30.110 – Travel Expense, 23.40.040 - Terminal Leave, 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, 23.55.030 - Qualification Pay, and 23.55.080 - Longevity Pay for Employees in the Classified Service, to Ensure Appropriate Compensation and Benefits to City Employees Comparable to Other Places of Public Employment Improving Recruitment and Retention of Qualified Employees. (Administration) 3. Ordinance No. 3420-2024 - Increasing Estimated Revenues and Appropriations in the General Fund and Municipal Roadway Improvements Capital Fund and Awarding a Construction Agreement and Corresponding Purchase Order for the 2024 Lilac Lane Roadway Improvement Project. (Administration) 4. Resolution No. 2024-19 - Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2024 and Ending June 30, 2025. (Administration) Page 1 Kenai City Council - Regular Meeting Page 2 of 3 June 05, 2024 5. Resolution No. 2024-20 - Amending the Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes Included in the FY2025 Budget to Include Adjusting Airport Fees, Water Fees, Sewer Fees, and Adjusting the Monthly Rental Rates at Vintage Pointe. (Administration) 6. Resolution No. 2024-21 - Authorizing a Budget Transfer in the Airfield Fund, Airport Department for Amounts in Excess of Budget. (Administration) 7. Resolution No. 2024-22 - Authorizing a Budget Transfer in the Airport Terminal Improvements Capital Fund, and Awarding a Construction Contract and Corresponding Purchase Order for the Airport Landscaping Project. (Administration) 8. Resolution No. 2024-23 - Authorizing the City Manager to Execute a Lease of Airport Reserve Lands Between the City of Kenai and D & M Land Company, Limited Liability Corporation for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5. (Administration) 9. Resolution No. 2024-24 - Authorizing the City Manager to Execute a Lease of Airport Reserve Lands Between the City of Kenai and Schilling Rentals, Limited Liability Corporation for Lot 5A, Block 1, FBO Subdivision 2018 Replat. (Administration) F. MINUTES 1. *Regular Meeting of May 15, 2024. (City Clerk) G. UNFINISHED BUSINESS 1. Resolution No. 2024-17 - Renaming Cook Inlet View Drive to Cook Inlet Drive. (Sounart) [On 05/15/24 this item was referred to the Planning and Zoning Commission for recommendation to Council and postponed to 06/05/24.] H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Special Use Permit to Crowley Fuels, LLC for Use of 35,000 Square Feet of Apron Space at the Kenai Municipal Airport for Aviation Fueling. (Administration) 3. *Action/Approval - Special Use Permit to Empire Airlines, Inc. for Use of 11,250 Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration) 4. *Action/Approval - Special Use Permit to Everts Air Fuel, Inc. for Use of 30,000 Square Feet of Apron Space at the Kenai Municipal Airport Aircraft Parking. (Administration) 5. *Action/Approval - Fourth Amendment to Agreement for Janitorial Services with Reborn Again Janitorial Service at the Kenai Municipal Airport. (Administration) 6. *Action/Approval - Special Use Permit to Kenai Aviation Operations, LLC. for Use of 2,714 Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration) 7. *Action/Approval - Special Use Permit to United Parcel Service Co., Inc. for Use of 4,000 Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Loading and Parking. (Administration) 8. *Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of Joshua Belter to the Airport Commission. (Gabriel) 9. *Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of Samantha Springer to the Beautification Committee. (Gabriel) Page 2 Kenai City Council - Regular Meeting Page 3 of 3 June 05, 2024 10. *Ordinance No. 3421-2024 - Increasing Estimated Revenues and Appropriation in the Kenai City Airport Snow Removal Equipment, Visitor Center, and Public Safety Capital Project Funds to Transfer Residual Balance from Completed Projects Back to their Original Funding Sources. (Administration) 11. *Ordinance No. 3422-2024 - Increasing Estimated Revenues and Appropriations in the General Fund and Public Safety Capital Project Fund for Cost in Excess of Projected Budgeted Amounts for Fire Department Flooring Replacement Phase 2. (Administration) 12. *Ordinance No. 3423-2024 - Increasing Estimated Revenues and Appropriations in the General Fund and Personal Use Fishery Fund for Annual Transfer from Personal Use Fishery Fund to the General Fund for Non-Departmental Expenses. (Administration) 13. Action/Approval - Airport Commission 2024 Work Plan. (City Clerk) 14. Action/Approval - Beautification Committee 2024 Work Plan. (City Clerk) I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION N. PENDING ITEMS O. ADJOURNMENT P. INFORMATION ITEMS The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https://us02web.zoom.us/meeting/register/tZMofuihqT0uHdQEPAQbyuLo65KcQNnOUgQZ Page 3 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3418-2024 AN ORDINANCE ADOPTING THE ANNUAL BUDGET, SALARY SCHEDULE AND EMPLOYEE CLASSIFICATION PLAN FOR THE FISCAL YEAR COMMENCING JULY 1, 2024 AND ENDING JUNE 30, 2025 AND COMMITTING $4,499,039 OF GENERAL FUND, FUND BALANCE FOR FUTURE CAPITAL IMPROVEMENTS. WHEREAS it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not later than the tenth day of June, adopt a budget for the following fiscal year and make appropriation of the monies needed; and, WHEREAS, pursuant to Kenai City Charter section 2-4, the City Council has the power to adopt a budget, raise revenue, and make appropriations; and regulate salaries and wages and all other fiscal affairs of the City; and, WHEREAS, adoption of this Ordinance constitutes Council meeting its obligation to adopt a budget, raise revenue, and make appropriations; and, WHEREAS, through adoption of the document entitled “Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025”, which includes the City Manager presented table of Authorized Personnel Staffing and Salary Schedules, Council meets its obligation to adopt the Salary Schedule of the City for fiscal year 2025; and, WHEREAS, adoption of the document entitled “Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025”, which includes the City Manager presented Employee Classification Plan satisfies the requirement of KMC 23.50.010; and, WHEREAS, committed fund balance represents resources whose use is constrained by Council self- imposed limitations at its highest level of decision making, an Ordinance, and that remain binding unless removed in the same manner; and, WHEREAS, in recognition of deferred and ongoing maintenance needs of City facilities and in support of the City’s Fiscal Year 2025 – 2029 Capital Improvement Plan (The Plan), Council commits $4,515,416 towards funding of The Plan for fiscal years 2025-2029. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That certain document entitled "Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025" which is available for examination by the public in the Office of the City Clerk, the City’s website and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 2024 and ending June 30, 2025. Section 2. The following sums of money are hereby appropriated for the operations of the City of Kenai for the fiscal year commencing on the first day of July, 2024, and ending the 30th day of June, 2025, to be expended consistent with and subject to the restrictions, procedures, and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: Page 4 Ordinance No. 3418-2024 Page 2 of 7 New Text Underlined; [DELETED TEXT BRACKETED] General Fund $ 20,226,392 Enterprise Fund – Congregate Housing Fund 793,714 Internal Service Funds: Equipment Replacement Fund 272,476 Fleet Replacement Fund 93,332 Employee Health Care Fund 3,209,541 Total Internal Service Funds 3,575,349 Special Revenue Funds: Personal Use Fishery Fund 537,796 Water & Sewer Fund 3,746,439 Airport Fund 3,709,963 Senior Citizen Fund 1,067,727 Total Special Revenue Funds 9,061,925 Permanent Funds: Airport Land Sale Permanent Fund 1,090,387 General Land Sale Permanent Fund 151,278 Total Permanent Revenue Funds 1,241,665 Capital Project Funds: Park Improvement 150,000 Kenai Senior Center Improvement 50,000 Kenai Public Safety Improvement 150,000 Municipal Roadway Improvement 440,000 Congregate Housing Improvement 215,000 Airport Improvement 125,000 Water & Sewer Improvement 662,000 Water & Sewer vehicle replacements 145,000 W aste Water Treatment Plant Equipment 100,000 Total Capital Project Funds 2,037,000 Debt Service Fund – Library Expansion Bonds 130,750 Total All Funds $37,066,795 Section 3. Council hereby commits $4,499,039 of Unassigned General Fund, Fund Balance for future renovations and improvements to City facilities. Page 5 Ordinance No. 3418-2024 Page 3 of 7 New Text Underlined; [DELETED TEXT BRACKETED] Section 4. Council hereby adopts the Salary Schedule presented by the City Manager and included in the “Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025”: Classified employees excluding those engaged in fire protection activities. Range A B C D E F AA BB CC DD EE 1 $14.24 $14.60 $14.95 $15.31 $15.66 $16.02 $16.63 $17.23 $17.84 $18.44 $19.05 2 $14.95 $15.32 $15.70 $16.07 $16.45 $16.82 $17.46 $18.09 $18.73 $19.36 $20.00 3 $15.70 $16.09 $16.49 $16.88 $17.27 $17.66 $18.33 $18.99 $19.66 $20.33 $21.00 4 $16.49 $16.90 $17.31 $17.73 $18.14 $18.55 $19.25 $19.95 $20.65 $21.35 $22.05 5 $17.30 $17.73 $18.17 $18.60 $19.03 $19.46 $20.20 $20.93 $21.67 $22.40 $23.14 6 $18.18 $18.63 $19.09 $19.54 $20.00 $20.45 $21.22 $22.00 $22.77 $23.54 $24.31 7 $19.08 $19.56 $20.03 $20.51 $20.99 $21.47 $22.28 $23.09 $23.90 $24.71 $25.52 8 $20.43 $20.94 $21.45 $21.96 $22.47 $22.98 $23.85 $24.72 $25.58 $26.45 $27.32 9 $21.46 $22.00 $22.53 $23.07 $23.61 $24.14 $25.05 $25.96 $26.88 $27.79 $28.70 10 $22.52 $23.08 $23.65 $24.21 $24.77 $25.34 $26.30 $27.25 $28.21 $29.17 $30.13 11 $23.63 $24.22 $24.81 $25.40 $25.99 $26.58 $27.58 $28.59 $29.59 $30.60 $31.60 12 $24.84 $25.46 $26.08 $26.70 $27.32 $27.95 $29.01 $30.06 $31.12 $32.17 $33.23 13 $26.09 $26.74 $27.39 $28.05 $28.70 $29.35 $30.46 $31.57 $32.68 $33.79 $34.89 14 $27.39 $28.07 $28.76 $29.44 $30.13 $30.81 $31.97 $33.14 $34.30 $35.47 $36.63 15 $28.74 $29.46 $30.18 $30.90 $31.61 $32.33 $33.55 $34.77 $35.99 $37.22 $38.44 16 $30.18 $30.93 $31.69 $32.44 $33.20 $33.95 $35.23 $36.52 $37.80 $39.08 $40.36 17 $31.72 $32.51 $33.31 $34.10 $34.89 $35.69 $37.04 $38.39 $39.73 $41.08 $42.43 18 $33.28 $34.11 $34.94 $35.78 $36.61 $37.44 $38.85 $40.27 $41.68 $43.10 $44.51 19 $34.95 $35.82 $36.70 $37.57 $38.45 $39.32 $40.81 $42.29 $43.78 $45.26 $46.75 20 $36.68 $37.60 $38.51 $39.43 $40.35 $41.27 $42.83 $44.39 $45.95 $47.51 $49.06 21 $38.52 $39.48 $40.45 $41.41 $42.37 $43.34 $44.98 $46.61 $48.25 $49.89 $51.53 22 $40.45 $41.46 $42.47 $43.48 $44.50 $45.51 $47.23 $48.95 $50.67 $52.39 $54.11 23 $42.45 $43.51 $44.57 $45.63 $46.70 $47.76 $49.56 $51.37 $53.17 $54.98 $56.78 24 $44.59 $45.70 $46.82 $47.93 $49.05 $50.16 $52.06 $53.95 $55.85 $57.74 $59.64 25 $46.82 $47.99 $49.16 $50.33 $51.50 $52.67 $54.66 $56.65 $58.64 $60.63 $62.62 26 $49.19 $50.42 $51.65 $52.88 $54.11 $55.34 $57.43 $59.52 $61.61 $63.70 $65.79 27 $51.60 $52.89 $54.18 $55.47 $56.76 $58.05 $60.24 $62.44 $64.63 $66.82 $69.02 28 $54.20 $55.56 $56.91 $58.27 $59.62 $60.98 $63.28 $65.59 $67.89 $70.19 $72.50 Classified employees engaged in fire protection activities. Range A B C D E F AA BB CC DD EE 18 $23.77 $24.36 $24.95 $25.54 $26.13 $26.72 $27.73 $28.74 $29.75 $30.76 $31.77 20 $26.19 $26.84 $27.49 $28.14 $28.79 $29.44 $30.55 $31.67 $32.78 $33.89 $35.01 21 $27.52 $28.21 $28.90 $29.59 $30.28 $30.97 $32.14 $33.31 $34.48 $35.65 $36.82 Department Head service employees Range Minimum New Maximum 23 88,296 123,614 24 92,747 129,846 25 97,386 136,340 26 102,315 143,241 27 107,328 150,259 28 112,736 157,830 Page 6 Ordinance No. 3418-2024 Page 4 of 7 New Text Underlined; [DELETED TEXT BRACKETED] Temporary employees excluding those engaged in fire protection activities. Range A B C Step T1 $ 14.24 $ 14.60 $ 14.95 T2 $ 14.95 15.32 15.70 T3 $ 15.70 16.09 16.49 T4 $ 16.49 16.90 17.31 T5 $ 17.30 17.73 18.17 T6 $ 18.18 18.63 19.09 T7 $ 19.08 19.56 20.03 T8 $ 20.43 20.94 21.45 T9 $ 21.46 22.00 22.53 T10 $ 22.52 23.08 23.65 T11 $ 23.63 24.22 24.81 T12 $ 24.84 25.46 26.08 T13 $ 26.09 26.74 27.39 T14 $ 27.39 28.07 28.76 T15 $ 28.74 29.46 30.18 T16 $ 30.18 30.93 31.69 T17 $ 31.72 32.51 33.31 T18 $ 33.28 34.11 34.94 T19 $ 34.95 35.82 36.70 T20 $ 36.68 37.60 38.51 T21 $ 38.52 39.48 40.45 T22 $ 40.45 41.46 42.47 T23 $ 42.45 43.51 44.57 T24 $ 44.59 45.70 46.82 T25 $ 46.82 47.99 49.16 T26 $ 49.19 50.42 51.65 T27 $ 51.60 52.89 54.18 T28 $ 54.20 55.56 56.91 T29 $ 56.99 58.41 59.84 Temporary employees engaged in fire protection activities. Range A B C T18 $ 23.77 $ 24.36 $ 24.96 T19 $ 24.96 25.58 26.21 T20 $ 26.21 26.87 27.52 T21 $ 27.52 28.21 28.90 T22 $ 28.91 29.63 30.36 Page 7 Ordinance No. 3418-2024 Page 5 of 7 New Text Underlined; [DELETED TEXT BRACKETED] Section 5. Council hereby adopts the Employee Classification Plan presented by the City Manager and included in the “Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025”: Class Code Class Title Range (A) Supervisory and Professional 101 City Manager** NG 102 City Attorney** NG 103 City Clerk** NG 104 Finance Director* 28 105 Public Works Director* 28 106 Police Chief* 28 107 Fire Chief* 27 112 Airport Director* 25 117 Planning Director* 24 118 Information Technology (IT) Manager 23 119 Assistant to City Manager/Special Projects Coordinator 23 120 Library Director* 23 121 Senior Center Director* 23 122 Parks and Recreation Director* 23 123 Human Resources Director* 23 124 Controller 25 (B) Administrative Support 203 Administrative Assistant I 13 204 Accounting Technician I 14 205 Accounting Technician II 16 207 Desktop Support Technician 15 210 Administrative Assistant II 14 211 Administrative Assistant III 15 214 Library Assistant 12 218 Library Aide 8 (C) Public Safety 302 Fire Fighter 18 303 Police Lieutenant 27 304 Police Sergeant 24 305 Police Officer 21 306 Public Safety Dispatcher 15 307 Fire Engineer 20 311 Fire Captain 21 312 Fire Marshal 22 313 Communications Supervisor 18 314 Police Trainee 21/1 Page 8 Ordinance No. 3418-2024 Page 6 of 7 New Text Underlined; [DELETED TEXT BRACKETED] 315 Deputy Fire Chief 25 316 Chief Animal Control Officer 17 317 Animal Control Officer 14 (D) Public Works/ Airport Operations 400 Capital Project Manager 22 401 Building Official 21 402 Shop Foreman 21 403 Street Foreman 21 404 Utility Foreman I/II 21/22 405 Utility Operator I/II 15/18 407 Equipment Operator 16 408 Shop Mechanic 19 409 Equipment Lead Operator 19 412 Building Maintenance Technician 16 413 Utility Lead Operator 19 417 Airport Operations Specialist 16 418 Airport Operations Supervisor 21 419 Building Maintenance Lead Technician 19 (E) General Services 502 Assistant Parks & Recreation Director 19 503 Recreation Center Attendant 6 504 Parks and Recreation Maintenance Technician 14 505 Parks and Recreation Laborer 6 506 Cook 8 508 Driver 6 509 Kitchen Assistant 6 511 Janitor I/II 6 * Department Head Service ** City Manager, City Clerk, and City Attorney are Council-appointed administrative offices Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Page 9 Ordinance No. 3418-2024 Page 7 of 7 New Text Underlined; [DELETED TEXT BRACKETED] Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect July 1, 2024. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: May 15, 2024 Enacted: June 5, 2024 Effective: July 1, 2024 Page 10 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: David Swarner, Finance Director DATE: May 7, 2024 SUBJECT: Ordinance 3418-2024 Adopting the FY2025 City of Kenai Annual Budget The purpose of this memo is to recommend enactment of Ordinance 3418-224, Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for the year commencing July 1, 2024 and ending June 30, 2025. The City Council held the following work sessions relating to the budget: January 17, 2024 to discuss the Fiscal year 2025 – 2029 Capital Plan. The Capital Plan was approved by Resolution 2024-07 on February 7, 2024. January 3, 2024 to develop the FY 2025 Budget Goals. The Council established the FY 2025 Budget Goals with the approval of Resolution 2024-03 January 17, 2024. May 4, 2024 for the Administration to present the draft FY 2025 Annual Budget including the Salary Schedule and Employee Classification Plan. The draft budget document is available for public review on the City’s website on the Finance Department page. Since the last budget work session some adjustments were made to the budget for a total increase of $30,762 in General Fund expenses due to a $22,480 increase in the contract for the operations of the visitor center along with salary adjustments for the City Manager, City Clerk, City Attorney, an increase from 20 hours to 24 hours for the Planning and Zoning Admin II position and adjustments to the number of police officers receiving investigator pay. There were some adjustments to revenue related to PERS for the Airport Fund an increase of $169, an increase for the General Fund $298 and an increase of $5 for the Senior Citizen Fund. There were Revenue adjustments for the Fleet and Equipment Replacement funds, decrease of $3,206 and an increase of $34,399 respectively. Attached is the supporting documentation for all funds showing the revised budgets for each fund impacted (General Fund, Special Revenue Fund, Enterprise Funds and Internal Service Funds). The Administration will be available to answer questions regarding the FY 2025 budget during, or any time prior to, the public hearing on Ordinance 3418-2024. Page 11 City of Kenai Fiscal Year 2025 Operating Budget Combined Revenue and Appropriations All Fund Types FY2025 Adoeted Bud set General Special Enterprise Internal Permanent Debt Service Capital Project Total Fund Revenue Funds Service Euni;!s Funds Fund Funds All Funds REVENUES Taxes $ 14,550,814 $ $ $ $ $ $ $ 14,550,814 Intergovernmental 698 ,645 625,069 2,897 37,854,385 39,180,996 Interest/Investment Earnings 475,000 200,000 15,000 53,791 1,869,486 2,613,277 Charges for Service 1,165,645 4,963,267 3,248,717 9,377,629 Rents & Leases 232 ,020 1,248,425 477 ,403 611,181 2,569,029 Licenses & Permits 158,100 158,100 Fines & F orfeltures 72 ,950 72,950 Miscellaneous 135,000 299,800 64,112 10,000 508,912 Transfers In 2,060,478 1,327,854 130,750 1,584,126 5,103,208 Total Revenues 19,548,652 8,66 4,415 495,300 3,977 801 1,879 ,486 130 750 39,438,51 1 74,134,915 EXPENDITURES/EXPENSES Salaries & Benefits 14,392,264 3,010,473 101,020 17,503,757 Supplies 1,049,039 924,948 34,674 10,000 2,018,661 Services 3,672,990 , 2,362,897 255,774 3,565,349 9,857,010 Debt Service 130,750 130,750 Depreciation 140,446 140,446 Capltal Outlay 22,963 245,000 8,000 47 ,780,194 48 ,056,157 Transfers 1,089,136 2,518 ,607 253,800 1,241,665 5,103 ,208 Total Expenditures 20,226,392 9,061 ,925 793,714 3,575,349 1,241 ,665 130,750 47 ,780,194 82,809,989 Contributions to (from) Fund Balance/Net Assets (677,740) (397,510) (298,414) 402,452 637 ,821 (8 ,341 ,683) (8,675,074) Add Credit From Depreciation 140,446 140,446 Projected lapse/encumbrances 956,863 379 ,095 1,335,958 Adjusted Deficit/Surplus 279,123 (18,415) (157,968) 402,452 637,821 (8 ,341,683) (7,198,670) Beginning Fund Balance/ Net Assets 14 ,885,738 3,544,764 484,058 7,543,882 31 ,559 ,559 8,341 ,683 66 ,359,684 Ending Fund Balance/ Unrestricted Net Assets $ 15,164,861 $ 3,526,349 $ 326,090 $ 7,946 ,334 $ 32,1 97,380 $ $ -$ 59,161 ,014 Page 12 City of Kenai Fiscal Year 2025 Operating Budget General Fund Budget Projection Original Manager Actual Budget Projection Proposed Projection Projection Projection FY2023 FY2024 FY2024 FY2025 FY2026 FY2027 FY2028 TAXABLE VALUES (000'S) $ 894,277 $ 961,718 $ 987,136 $ 1,030,991 $ 1,048,602 $ 1,066,716 $ 1,085,335 MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35 REVENUES Property & Sales Taxes Property Tax 4,316,203 4,321,161 4,321,161 4,477,109 4,620,190 4,697,410 4,776,783 Sales Tax 9,818,482 9,999,729 9,999,729 10,073,705 10,275,179 10,480,683 10,690,297 Total Property & Sales Taxes 14,134,685 14,320,890 14,320,890 14,550,814 14,895,369 15,178,093 15,467,080 Intergovernmental Revenue: PERS Funding 207,305 255,735 255,735 404,100 416,223 428,710 441,571 Community Assistance 201,915 75,805 75,805 175,745 175,745 175,745 175,745 Fish Tax 35,646 50,000 50,000 17,500 18,025 18,566 19,123 Other 98 579 52 ,500 80450 48 ,500 50 925 53 471 56145 Total State/Federal Revenue 543 445 434040 461 990 645 ,845 66 Q,918 676,492 692 584 Other Revenue Licenses and Permits 151,244 155,100 155,100 157,100 161,813 166,667 171,667 Ambulance Fees 1,072,366 875,000 875,000 875,000 901,250 928,288 956,137 Interest 334,569 461,788 461,788 475,000 454,946 439,247 432,678 Other 892 078 770700 796 894 784 415 807.947 832 ,185 857151 Total Other Revenue 2 ,450 ,257 2 ,262,588 2,288 ,782 2 ,291 ,515 2,325 ,956 2 ,366 ,387 2,417 ,633 Total Revenues 17 ,128,387 17,017,518 17 ,071 ,662 17 488 174 17 ,882 ,243 18 ,220 ,972 18 ,577 297 Transfer From Other Funds Charges to other funds 1,798,500 1,757,300 1,757,300 1,795,400 1,849,262 1,904,740 1,961,882 Capital Projects/ Special Revenue 103,266 75,000 75,000 75,000 75,000 75,000 75,000 Enterprise 47,000 40,600 40,600 38,800 39,964 41,163 42,398 Trust Fund 138,209 138 ,209 151 ,278 154 304 157 390 167 377 Total Transfers 1,948 ,766 2,011 ,109 2,011 ,109 2 ,060 ,478 2 ,118 ,530 2 ,178,293 2 ,246 ,657 Total Revenues and Transfers 19077153 19 ,028 ,627 19082771 19 548 652 20 000 773 20,399 ,265 20 ,823 ,954 EXPENDITURES/APPROPRIATIONS General Government 3,469,046 4,210,045 4,238,195 4,439,691 4,572,882 4,710,069 4,851,371 Public Safety 8,491,863 9,101,734 9,124,878 9,338,108 9,618,251 9,906,799 10,204,003 Public Works 2,437,717 2,814,870 2,924,813 2,795,779 2,879,652 2,966,042 3,055,023 Parks, Recreation & Cultural 2 ,370 ,510 2,567 164 2 613 ,814 2 563 ,678 2 ,640 ,588 2 ,719 ,806 2 ,801,400 Total Operating Expenditures 16,769,136 18,693,813 18,901,700 19,137,256 19,711,373 20,302,716 20,911,797 Transfers or Non-Operating 2,368 ,812 944 780 1,724 ,780 1,089 ,136 1,798 ,264 1,330 ,642 2 ,243,455 Total Expenditures/Appropriations 19,137,948 19,638,593 20,626,480 20,226,392 21,509,637 21,633,358 23,155,252 Total Surplus (Deficit) (60,795) (609,966) (1,543,709) (677,740) (1,508,864) (1,234,093) (2,331,298) Projected Lapse -5% 934 691 945 ,085 !;!:i!;\,863 985 ,569 1,015,136 1,045,590 Adjusted Surplus (Deficit) (60,795) 324,725 (598,624) 279,123 (523,295) (218,957) (1,285,708) Beginning Fund Balance 15,545 ,157 15 ,291 ,178 15 ,484 362 14 885 738 15 164 861 14 641 566 14,422 ,609 Ending Fund Balance 15,484,362 15,615,903 14,885,738 15,164,861 14,641,566 14,422,609 13,136,901 Restricted (735,423) (749,494) (782,423) (818,423) (854,423) (890,423) (926,423) Committed (11,639,380) (11,993,977) (10,856,067) (11,122,279) (10,403,306) (10,113,873) (8,605,799) Assigned (3,109,559 ) (2,872,432 ) (3,247,248 ) (3,224,159 ) (3,383,837 ) (3,418,313 ) (3,604,679 ) Unassigned Fund Balance $ $ $ $ $ $ $ Page 13 City of Kenai Fiscal Year 2025 Operating Budget Fund: 019 -Senior Citizens Fund Department: Title Ill Summary Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues State Grants $ 283,815 $ 260,288 $ 261,497 $ 294,573 $ 261,646 Federal Grants 100,000 USDA Grant 21,969 22,022 22,000 15,214 22,000 Choice Waiver 65,023 68,496 75,000 96,127 80,000 KPB Grant 169,221 186,143 186,143 186,143 186,143 Other Grants 25,000 Rents and Leases 5,531 7,398 7,000 15,054 10,000 Donations 25,456 25,330 35,000 25,798 27,500 Donation -Senior Connection 50,000 100,000 100,000 100,000 100,000 Meal Donations 66,208 87,969 94,650 100,840 97,650 Transfer from General Fund -Operations 220,518 241,562 199,476 173,724 237,467 Other 3 185 300 300 300 Total Revenue 1,032,744 999,393 981,066 1,007,773 1,022,706 Expenditures Senior Citizen Access 226,753 219,553 221,833 225,092 233,071 Congregate Meals 286,666 130,016 131,025 145,136 184,526 Home Meals 277,743 459,299 491,082 500,212 433,927 Senior Transportation 94,964 97,583 109,744 109,768 130,479 Choice Waiver 150,127 89,433 71,368 71,406 85,724 Total Expenditures 1,036,253 995,884 1,025,052 1,051,614 1,067,727 Contribution To/(From) Fund Balance: (3,509) 3,509 (43,986) (43,841) (45,021) Projected Lapse (5%) 42,435 43,841 45,021 Adjusted (Deficit)/Surplus (3,509) 3,509 (1,551) Beginning Fund Balance (3,509 ) Ending Fund Balance $ (3,509) $ -$ (1,551 ) $ -$ Page 15 City of Kenai Fiscal Year 2025 Operating Budget Fund 008 • Airport Fund Department:-Airport Fund Summary Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues State & Federal Grants $ 1,391,559 $ 1,249,807 $ 26,317 $ 24,487 $ 37,700 Usage Fees Fuel Sales 19,423 38,298 35,000 46,186 45,000 Fuel Flowage 10,035 16,322 17,000 15,881 17,000 Float Plane 1,002 1,915 1,000 1,000 2,000 Tie Down 9,597 10,015 10,500 12,105 10,500 Landing 420,431 365,551 451,094 385,000 384,855 Plane Parking 18,479 19,166 22,000 11,709 22,000 Total Usage Fees 478,967 451,267 536,594 471,881 481,355 Rents and Leases -Land 562,370 559,207 532,323 543,318 708,089 Miscellaneous Penalty and Interest 3,547 5,929 3,000 2,085 3,000 Interest on Investments (33,781) 80,860 120,000 35,000 120,000 Other 18,625 43,570 148,392 190,410 170,000 Total Miscellaneous i 11,609 ) 130,359 271,392 227.495 293,000 Terminal Revenue Parking Fees 224,144 215,983 225,000 215,432 225,000 Rents and Leases 554,613 690,036 599,087 481,207 522,336 Penalty and Interest 1,496 5,134 5,000 10,081 5,000 Car Rental Commissions 140,025 186,928 180,000 187,413 185,000 Advertising Commissions 27,796 19,086 20,000 26,497 28,000 Miscellaneous 39,583 2,829 3,000 4,243 3,000 Total Terminal Revenue 987,657 1,119,996 1,032,087 924,873 968,336 Transfers In Capital Project Fund 1,684,996 286 Airport Land Trust Fund 1,025,736 1,028,478 1,053,635 1,065,618 1,090,387 Total Transfers In 2,710,732 1,028,764 1,053,635 1,065,618 1,090,387 Total Revenues 6,119,676 4,539,400 3,452,348 3,257,672 3,578,867 Expenditures Airport Terminal 525,296 568,901 616,724 624,724 693,273 Airport Airfield 1,850,849 1,889,544 2,160,579 2,158,061 2,222,638 Airport Administration 413,484 332,670 368,204 413,222 378,370 Airport Other Buildings and Areas 153,261 165,156 175,605 200,605 224,878 Airport Training Facility 30,803 108,706 207,793 224,293 164,987 Total Expenditures 2,973,693 3,064,977 3,528,905 3,620,905 3,684,146 Transfers Transfer to Capital Projects 1,531,833 2,251,842 346,875 796,875 25,817 Transfer to General Fund Total Transfers 1,531,833 2,251,842 346,875 796,875 25,817 Total Expenditures & Transfers 4,505,526 5,316,819 3,875,780 4,417,780 3,709,963 Contribution To/(From) Fund Balance: 1,614,150 (777,419) (423,432) (1,160,108) (131,096) Projected Lapse (6%) 140,256 145,776 147,813 Adjusted (Deficit)/Surplus (283,176) (1,014,332) 16,717 Beginning Fund Balance 2,273,082 3,887,232 4,298,729 3,109,813 2,095,481 Ending Fund Balance $ 3,887,232 $ 31109 ,813 $ 4,015,553 $ 2,095,481 $ 2,112,198 Page 16 City of Kenai Fiscal Year 2025 Operating Budget Budget Projection Fund: 010 -Water and Sewer Fund Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues PERS Grant $ 45,630 $ 18,073 $ 22,525 $ 18,950 $ 35,719 Usage Fees Service Hook-up 7,762 9,030 4,125 9,761 10,152 Residential Water 874,085 967,050 989,748 989,772 1,029,363 Commercial Water 343,557 351,024 381,325 381,335 396,588 Residential Sewer 1,235,894 1,358,476 1,388,566 1,388,600 1,444,144 Commercial Sewer 480,088 475,421 515,265 515,278 535,889 Total Usage Fees 2,941,386 3,161,001 3,279,029 3,284,746 3,416,136 Miscellaneous Revenues Penalty and Interest 32,856 41,583 40,950 40,950 42,588 Interest Earnings (69,134) 78,182 35,000 35,000 75,000 Other 19,810 5,798 5,000 18,901 5,000 Total Miscellaneous Revenues (16,468) 125,563 80,950 94,851 122,588 Transfer In, Capital Projects 147,303 Total Revenues 3,117,851 3,304,637 3,382,504 3,398,547 3,574,443 Expenditures Water Department 783,101 889,643 1,273,813 1,273,813 1,127,196 Sewer Department 389,368 453,824 683,559 688,397 759,759 Wastewater Treatment Plant Department 1,031,021 1,073,800 1,268,902 1,268,902 1,237,094 Total Expenditures 2,203,490 2,417,267 3,226,274 3,231,112 3,124,049 Transfers Capital Projects 1,520,000 740,000 679,970 679,970 622,390 Total Expenditures & Transfers 3,723,490 3,157,267 3,906,244 3,911,082 3,746,439 Contribution To/(From) Fund Balance: (605,639) 147,370 (523,740) (512,535) (171,996) Projected Lapse (6%) 142,146 176,848 169,629 Adjusted (Deficit)/Surplus (381,594) (335,687) (2,367) Beginning Fund Balance 1,951,658 1,346,019 987,486 1,493,389 1,157,702 Ending Fund Balance $ 1,346,019 $ 1,493,389 $ 605,892 $ 1,157,702 $ 1,155,335 Page 17 City of Kenai Fiscal Year 2025 Operating Budget Budget Projection Fund: 006 • Personal Use Fishery Fund Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues State Grant $ 2,394 $ 694 $ 1,169 $ 1,169 $ 1,861 Usage Fees Beach Parking 161,580 153,976 177,482 157,839 164,980 Beach Camping 186,387 200,802 191,463 216 ,085 210,102 Dock Launch & Park 95,105 106,548 110,565 100 ,609 100,754 Dock Parking Only 10,641 12,540 12,495 12,460 12,495 Participant Drop-off Fee 4,019 4,971 4,707 6,274 4,707 Total Usage Fees 457,732 478,837 496,712 493,267 493,038 Miscellaneous Revenues Investment earnings (4,412) 4,755 750 750 5,000 Other (11,150) (11,320) (11,500) (11,112 ) (11,500) Total Miscellaneous Revenues (15,562 ) (6,565 ) (10,750) (10,362) (6,500 ) Transfer In, Capital Projects Total Revenue 444,564 472 ,966 487,131 484 ,074 488,399 Expenditures Public Safety 104,368 114,046 178,544 178,544 136,531 Streets 36,602 33,921 39,059 39,059 39,302 Boating Facility 46,963 39,868 47,686 47,686 42,815 Parks, Recreation & Beautification 173,351 204,667 229,212 229,212 244,148 Total Expenditures 361 ;284 392,502 494 ,501 494,501 462 ,796 Transfers General Fund 75,000 75,000 75,000 Capital Projects 21,920 50,000 Total Transfers 96,920 125,000 75,000 Total Expenditures & Transfers 458,204 517,502 494,501 494,501 537,796 Contribution To/(From) Fund Balance : (13,640) (44,536) (7,370) (10,427) (49,397) Projected Lapse 18,423 83,327 16,632 Adjusted (Deficit)/Surplus (13,640) (44,536) 11,053 72,900 (32,765) Beginning Fund Balance 276,857 263,217 250,604 218,681 291,581 Ending Fund Balance $ 263,217 $ 218,681 $ 261,657 $ 291 ,581 $ 258,816 Page 18 City of Kenai Fiscal Year 2025 Operating Budget Budget Projection Fund: 009 -Congregate Housing Fund Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues PERS Grant $ 3,421 $ 1,314 $ 1,860 $ 1,337 $ 2,897 Rents and Leases 445,806 466,139 454,363 486,502 477,403 Interest on Investments (12,650) 17,198 4,000 2,000 15,000 Miscellaneous 1,075 502 Total Revenues 437,652 485,153 460,223 489,839 495,300 Expenses 498,507 510,086 710,195 642,525 793,714 Net Income (loss) (60,855) (24,933) (249,972) (152,686) (298,414) Beginning Retained Earnings 843,627 923,218 1,013,889 1,013,889 484,058 Capital Asset Acquistions (24,842) (17,330) (517,591) Allocated to Capital Projects (510,255) (585,413) (718,083) Credit for Depreciation 140,446 140,446 140,446 140,446 140,446 Available Retained Earnings $ 412,963 $ 428,476 $ 168,950 $ 484,058 $ 326,090 Page 19 City of Kenai Fiscal Year 2025 Operating Budget Fund: 011 -Employee Health Care Fund Department: 18 -Health Care Fund Summary Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues Charge for Services $ 2,823,678 $ 3,046,664 $ 2,640,656 $ 3,046,664 $ 2,825,839 Participant premiums 373,117 369,183 415,545 456,576 422,878 Transfer from Other Funds Interest Earnings (16,402 ) 27,328 30,000 6,000 30,000 Total Revenues 3,180,393 3,443,174 3,086,201 3,509,240 3,278,717 Expenses 2,863,722 2,863,722 3,016,689 3,016,689 3,209,541 Net Income (loss) 316,671 579,452 69,512 492,551 69,176 Beginning Retained Earnings 1,084,437 1,401,108 849,034 1,980,560 2,473,111 Available Retained Earnings $ 1,401,108 $ 1,980,560 $ 918,546 $ 2,473,111 $ 2,542,287 FY2023 FY2024 FY2025 Difference % Chan !:!e Employer cost per position: Full-time $ 28,810 $ 25,209 $ 26,722 $ 1,513 6.00% Part-time 14,405 12,605 13,361 757 6.00% Projected* 1-Jan-25 Jan 1 -Dec 31 Jan 1 -Dec 31 Jan 1 -June 30 Projected FY2023 2024 2025 Increase % Increase Employee monthly premiums: $3,000/$6,000 Deductible Plan Employee only 152.00 $ 162.00 $ 175.00 13.00 8.02% Employee with child{ren) 277.00 296.00 319.00 23.00 7.77% Employee with spouse 304.00 325.00 350.00 25.00 7.69% Employee with family 413.00 444.00 479.00 35.00 7.88% Part-time employee only 651.00 584.00 761.00 177.00 30.31% Part-time employee w/Children 1,636.00 1,497.00 1,904.00 407.00 27.19% Part-time employee w/Spouse 1,879.00 1,723.00 2,148.00 425.00 24.67% Part-time employee w/Family 2,864.00 2,636.00 3,136.00 500.00 18.97% * Assumes a 8.50% premium increase for health insurance and a 3.00% increase for dental and an employee cost share of 13% Page 20 City of Kenai Fiscal Year 2025 Operating Budget Fund: 061 -Equipment Replacement Fund Department: 59 -Equipment Replacement Fund Summary Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues Rents & Leases $ 347,374 $ 323,938 $ 422,792 $ 355,865 $ 457,191 Interest Earnings (20,778) 25,441 10,000 31,884 10,000 Other income 20,571 33,456 8,359 33,456 Total Revenues 347,167 349,380 466,248 396,108 500,647 Expenses -Depreciation 190,321 205,289 206,907 206,907 272,476 Net Income (loss) 156,846 144,091 259,341 189,201 228,171 Transfers out Total net income (loss) and transfers out 156,846 144,091 259,341 189,201 228,171 Beginning Net Position 3,512,068 3,668,914 3,858,342 3,813,005 4,002,206 Ending Net Position 3,668,914 3,813,005 4,117,683 4,002,206 4,230,377 Invested in Capital Assets (2,283,158 ) (2,133,505 ) (1 ,869,571 ) (2,151,119 ) {1,845,394) Unrestricted Net Position $ 1,370,788 $ 1,679,500 $ 2,248,112 $ 1,851,087 $ 2,384,983 Page 21 City of Kenai Fiscal Year 2025 Operating Budget Fund: 063 -Fleet Replacement Fund Department: 59 -Fleet Replacement Fund Summary Original Actual Actual Budget Projection Proposed FY2022 FY2023 FY2024 FY2024 FY2025 Revenues Rents & Leases $ 150,919 $ 152,059 $ 157,196 $ 151,327 $ 153,990 Interest Earnings (6,056) 9,340 13,791 7,294 13,791 Other income 9,465 6,245 30,656 6,344 30,656 Transfer In Total Revenues 154,328 167,644 201,643 164,965 198,437 Expenses -Depreciation 61,519 62,268 62,268 68,067 93,332 Net Income (loss) 92,809 105,376 139,375 96,898 105,105 Transfers out Total net income (loss) and transfers out 92,809 105,376 139,375 96,898 105,105 Beginning Net Position 773,482 866,291 980,704 971,667 1,068,565 Ending Net Position 866,291 971,667 1,120,079 1,068,565 1,173,670 Invested in Capital Assets (338,639 ) {503,083 ) {496,050 ) (89,381 ) (25,287 ) Unrestricted Net Position $ 527,652 $ 468,584 $ 624,029 $ 979,184 $ 1,148,383 Page 22 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Kathy Romain, Senior Center Director DATE: May 30, 2024 SUBJECT: Ordinance 3418-2024 Requested Amendment to Draft FY2025 Budget Document This memo requests an amendment to the FY2025 Draft Budget Document. At their May 24, 2024 meeting, the Kenai Senior Connection, Inc. (KSC) Board of Directors voted to allocate $120,000 to the FY25 Senior Center budget. This amount represents a $20,000 increase from previous years, made possible by the outstanding success of this year’s March for Meals event. We are exceptionally grateful for the continued support of this dedicated group of individuals as we work together to make a meaningful difference in the lives of our seniors. Motion Thank you for your consideration. Thank you for your consideration. Amend Ordinance No. 3418-2024, Section 2 as follows: Decrease the General Fund appropriation by ($20,000) Amend the Draft FY2025 Budget Document as follows: General Fund – Transfers, page 110 Decrease the proposed FY25 Transfers by an additional ($20,000) Senior Citizen Fund – Revenue, page 237 Increase Donation – Senior Connection $20,000 Decrease Transfer from General Fund – Operations ($20,000) Page 23 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member James Baisden DATE: May 28, 2024 SUBJECT: Ordinance 3418-2024 – Requested Amendment to Draft FY2025 Budget Document The memo requests an amendment to the FY2025 Draft Budget Document. The City has a current project to expand its cemetery. A columbarium to accommodate veteran memorial markers is needed as the City’s current columbarium cannot support the markers provided to veterans by the United States Department of Veterans Affairs. Inclusion of a columbarium for this purpose in the new cemetery section is a meaningful way to recognize the service and sacrifice of the City’s veterans. This request is to increase the transfer from the General Fund to the Cemetery Improvement Capital Project Fund by $25,000 and appropriate the funds in the Cemetery Improvement Capital Project Fund for construction of a veteran columbarium in the City’s cemetery expansion project. Motion Thank you for your consideration. Amend Ordinance No. 3418-2024, Section 2 as follows: Increase the General Fund appropriation by $25,000 General Fund – Non-Departmental, page 110 Increase Transfers by an additional $25,000; and Fund 118 – Cemetery Improvement Capital Project Fund, page 284 Increase Transfer from General Fund and Current Year Authorizations – Veterans Columbarium by $25,000. Page 24 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member James Baisden DATE: May 28, 2024 SUBJECT: Ordinance 3418-2024 – Requested Amendment to Draft FY2025 Budget Document The memo requests an amendment to the FY2025 Draft Budget Document. After the Administration met with employees regarding the Salary Study Report, the Administration re- evaluated the Fire Captain classification to ensure the pay range was commensurate with existing duties and responsibilities. Human Resources reviewed the classification and consulted with McGrath Human Resources Group to determine that to accurately reflect the minimum qualifications and to fairly reflect the differences in duties and responsibilities within the City’s Classification Plan related to compensation for comparable positions in other places of public employment, and to meet the City’s objective to provide an appropriate compensation structure to recruit and retain an adequate supply of competent employees, an amendment to the Classification Plan for Fire Captain from a range 21 to a range 22 is appropriate. This request is to increase the range and to provide funding for the position at range 22 on the City’s Salary Schedule. Motion Thank you for your consideration. Amend Ordinance No. 3418-2024, Section 5 as follows: Class Code 311 – Fire Captain Increase the range from 21 to 22; and Amend the Draft FY2025 Budget Document as follows: General Fund – Fire, page 132 Increase the Salaries and Benefits section by an additional $7,483; and Amend the Draft FY2025 Budget Document, by increasing the Class Code for Fire Captain from range 21 to range 22 throughout the document. Page 25 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member Victoria Askin DATE: May 28, 2024 SUBJECT: Ordinance 3418-2024 – Requested Amendment to Draft FY25 Budget Document The memo requests an amendment to the Draft FY2025 Budget Document. Central Area Rural Transit System, Inc (CARTS) President Jodi Stuart and Executive Director Jessica Schultz presented a CARTS update and status report at the March 20, 2024 City Council meeting requesting a donation in the amount of $5,000. Based on the presentation, I support amending the FY2025 budget to provide an operational grant to CARTS in the amount of $2,500. Based on the total amount of grants to other agencies, I support amending the Draft FY2025 budget to decrease the proposed budget amount from $5,000 to $1,500 for an operational grant to the Kenai Watershed Forum for Water Quality Baseline Monitoring of the Kenai River. This reduction represents the City's in-kind contribution in the form of allowing the Kenai Watershed Forum to utilize the City’s Water and Sewer lab for testing water. The following changes to the budget document are needed to include this amendment: Motion 1 Motion 2 Thank you for your consideration. Amend the Draft FY2025 Budget Document as follows: General Fund – Legislative, page 84 Account Number 001-411-5047, Grants to Agencies Increase the proposed budget amount by an additional $2,500, for the purpose of providing an operational grant of $2,500 to Central Area Rural Transit System, Inc. Amend the Draft FY2025 Budget Document as follows: General Fund – Legislative, page 84-85 Account Number 001-411-5047, Grants to Agencies Decrease the proposed budget amount by $1,500 to reduce the total amount of an operational grant to the Kenai Watershed Forum. Page 26 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member James Baisden DATE: May 28, 2024 SUBJECT: Ordinance 3418-2024 – Requested Amendment to the Draft FY2025 Budget Document Ordinance 3419-2024 – Requested Amendment Contingent on the Enactment of Ordinance 3418-2024 This memo requests an amendment to the Draft FY2025 Budget Document and to KMC 23.55.030 to incorporate qualification pay for Public Safety Dispatchers and adjust recognition entitlements for Paramedic certification for eligible Fire Department grades. After the Administration held meetings with employees and recognized the added responsibilities of Public Safety Dispatchers who serve as communications training officers as part of the department’s training program and to ensure compensation is competitive for comparable positions in other places of public employment, an amendment to add recognition pay for qualified Public Safety Dispatchers in the amount of a 5% increase of the employee’s current range and step is recommended. This amendment is supported by Human Resources and the City Manager, with an estimated annual cost of $2,996. For Fire Department positions, it is recommended that qualification pay for Paramedic certification be calculated on the employee’s current range and step to ensure competitive compensation. An amendment is also needed to accurately reflect the type of certification to reflect the Fire Department’s current certification levels and transition to the National Registry of Emergency Medical Technicians standards. Human Resources and the City Manager met with employees, reviewed certification pay, and supported an amendment to correct the certification types, increase certification pay for Paramedic to 5%, and adjust the pay so that it is determined by the employee’s current range and step rather than being fixed at step A of the Firefighter range, with an estimated annual cost of $25,504. The following changes to the draft FY2025 budget document referenced in Ordinance 3418-2024 are respectfully requested: Motion Amend the Draft FY2025 Budget Document as follows: General Fund - Fire, page 132 Increase the Salaries and Benefits section by an additional $25,504 General Fund - Communications, page 137 Increase the Salaries and Benefits section by an additional $2,996 For an overall increase of $28,500 to the FY2025 Budget Page 27 Page 2 of 2 The following amendments to Ordinance 3419-2024 are respectfully requested and are contingent on the enactment of Ordinance 3418-2024, adopting the “Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025,” Salary Schedule, and Employee Classification Plan and appropriating funds for the fiscal year July 1, 2024 – June 30, 2025: Motion 1 New Text Underlined; [DELETED TEXT BRACKETED] Motion 2 New Text Underlined; [DELETED TEXT BRACKETED] Thank you for your consideration. Amend Ordinance 3419-2024, Section 7, Section 23.55.030 - Qualification Pay, to include a new subparagraph (b)(1)(v) to read: (Recognition pay for qualified Public Safety Dispatcher personnel for employees temporarily assigned dispatcher training duties for eligible shifts only as follows: An additional five percent (5%) of the employee’s current range and step. Amend Ordinance 3419-2024, Section 7, Section 23.55.030 - Qualification Pay, paragraph (b)(2)(ii), to read: (ii) Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer, captain, Fire Marshal, Deputy Fire Chief, and Fire Chief are as follows: EMT/EMS Instructor An additional one-half percent (.5%) of step A of the Firefighter range. EMT III /Advanced Emergency Medical Technician (AEMT) An additional two and one-quarter percent (2.25%) of step A of the Firefighter range. [EMT- ]Paramedic An additional [3.75% OF STEP A FIREFIGHTER RANGE (INCLUDES EMT III PAY)] five percent (5%) the employee’s current range and step (includes AEMT Pay). Page 28 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3419-2024 AN ORDINANCE AMENDING SECTIONS OF KENAI MUNICIPAL CODE TITLE 23 - PERSONNEL REGULATIONS, SECTIONS 23.05.070 - DEFINITIONS, 23.25.070 - ACTING POSITIONS, 23.30.030 - PROBATIONARY PERIOD FOR EMPLOYEES IN THE CLASSIFIED SERVICE, 23.30.110 – TRAVEL EXPENSE, 23.40.040 - TERMINAL LEAVE, 23.55.020 - COMPENSATION STRUCTURE BY GRADE FOR EMPLOYEES IN THE CLASSIFIED SERVICE, 23.55.030 - QUALIFICATION PAY, AND 23.55.080 - LONGEVITY PAY FOR EMPLOYEES IN THE CLASSIFIED SERVICE, TO ENSURE APPROPRIATE COMPENSATION AND BENEFITS TO CITY EMPLOYEES COMPARABLE TO OTHER PLACES OF PUBLIC EMPLOYMENT IMPROVING RECRUITMENT AND RETENTION OF QUALIFIED EMPLOYEES. WHEREAS, pursuant to KMC 23.15.010, the City Manager prepares and recommends revisions and amendments to the personnel regulations as deemed necessary; and, WHEREAS, the City and other comparable government employers have experienced workforce challenges in recent years, which have made additional efforts necessary to recruit and retain qualified employees to meet the needs and expectations of the community; and, WHEREAS, the City contracted with McGrath Human Resources Group to perform a Classification Study and work with the Administration and an internal personnel working group to develop an overall compensation and classification recommendation for the City; and, WHEREAS, McGrath Human Resources Group presented its Classification, Compensation, and Benefits Study results to the City Council at the April 3, 2024 Kenai City Council Meeting; and, WHEREAS, the recommendations include an update to the City’s salary structure to add two steps (DD- EE) to the end of the schedule, adjustments to qualification pay, acting pay, longevity pay, probationary period, part-time employee compensation structure, and travel reimbursement; and, WHEREAS to ensure compensation is competitive for comparable positions in other places of public employment and uniform in application, the City Manager recommends amendments to the personnel regulations necessary to provide an appropriate compensation structure to recruit and retain qualified employees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section 23.05.070 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.05.070 – Definitions, is hereby amended as follows: 23.05.070 Definitions. Probationary Period. An employee appointed to a position in the classified service must serve a probationary period, [NORMALLY SIX (6) MONTHS, EXCEPT FOR POLICE, COMMUNICATIONS AND FIRE,] which is normally twelve (12) months. This period can be extended up to, but no longer than [, TWELVE (12) MONTHS AND] eighteen (18) months[, RESPECTIVELY]. Page 29 Ordinance No. 3419-2024 Page 2 of 6 New Text Underlined; [DELETED TEXT BRACKETED] Section 2. Amendment of Section 23.25.070 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.070 – Acting positions, is hereby amended as follows: 23.25.070 Acting Positions. Compensation During Temporary Assignment. An employee who is temporarily assigned to and performs duties of a position with a higher pay range for a period of forty (40) or more consecutive regular work hours for employees not performing fire protection activities and fifty-six (56) or more consecutive regular work hours for employees performing fire protection activities shall be paid [AT THE FIRST STEP OF THE HIGHER PAY RANGE, OR, THE EMPLOYEE SHALL BE GRANTED A ONE (1) STEP PAY INCREASE, WHICHEVER IS HIGHER]an additional ten percent (10%) of the employee’s current range and step, for the period worked in the temporary assignment. An employee who is temporarily assigned to a position with a lower pay range, for any period, shall not receive a reduction in pay. No such temporary assignment shall exceed six (6) months. Such acting appointments shall be in writing and the employee must perform the duties of the position. Section 3. Amendment of Section 23.30.030 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.030 – Probationary period for employees in the classified service, is hereby amended as follows: 23.30.030 Probationary Period for Employees in the Classified Service. (a) All original appointments for employees in the classified service including those that result from transfers shall be tentative and subject to a probationary period of not less than [SIX (6) MONTHS CONSECUTIVE SERVICE, EXCEPT FOR POLICE, FIRE, AND COMMUNICATIONS, WHICH SHALL BE NORMALLY] twelve (12) months[, SUBJECT TO MEETING CRITERIA FOR CERTIFICATION WHICH MAY BE ACCOMPLISHED FOLLOWING SIX (6) MONTHS OF SERVICE AND EXCEPT FOR SEASONAL EMPLOYEES WHOSE PROBATIONARY PERIOD IS ESTABLISHED BY THE TERM OF THE FIRST SEASON OF EMPLOYMENT]. Promotional appointment probationary period shall, for all employees in the classified service, be not less than [SIX (6)] twelve (12) months. (b) In cases where the responsibilities of a position in the classified service are such that a longer period is necessary to demonstrate an employee’s qualifications, the probationary period may be extended; however, no probationary period shall be extended beyond [TWELVE (12) MONTHS, OR] eighteen (18) months [FOR POLICE, FIRE, AND COMMUNICATIONS, OR ONE (1) ADDITIONAL SEASON FOR SEASONAL EMPLOYEES]. The employee shall be notified in writing of any extension and the reasons therefor. (c) Upon completion of the probationary period, employees in the classified service shall be considered as having satisfactorily demonstrated qualifications for the position, shall gain regular status, one (1) step in pay raise, and shall be so informed through his or her supervisor. The employee’s anniversary date shall be the first of the month in which the employee’s original probation ends. Employees who have gained regular status at the effective date of the ordinance codified in this section shall have their anniversary dates changed to the first of the month in which the employee’s present anniversary date falls. (d) During the probationary period, a new employee hired in the classified service may be terminated at any time without advance notice, without cause, and without appeal. (e) In the case of promotional appointments, the promoted employee may be demoted at any time during the probationary period without appeal; provided, that the probationary employee be reinstated in the class designation from which he or she was promoted, even though this necessitates the layoff of the employee occupying the position. Section 4. Amendment of Section 23.30.110 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.110 – Travel expense, is hereby amended as follows: Page 30 Ordinance No. 3419-2024 Page 3 of 6 New Text Underlined; [DELETED TEXT BRACKETED] 23.30.110 Travel Expense. When employees are required to travel outside the City on City business, reimbursement, subject to advances received, for expenditures incurred shall be determined as follows: (a) Prior to traveling outside the City, the employee shall obtain permission for the trip and the mode of travel from the department head. (b) Travel on official business outside the City by one (1) individual shall be via public carrier or City- owned vehicle whenever practical. If, for extenuating circumstances, the employee is authorized to use a private vehicle, total mileage shall be paid at the standard IRS mileage rate. This rate includes all travel, insurance and fuel. (c) Classified and department head service employees who often use their privately owned vehicle for City business shall be reimbursed thirty dollars ($30.00) per month or the standard IRS mileage rate, whichever is greater, subject to authorization by the City Manager. (d) The authorized per diem rates are [FIFTY DOLLARS ($50.00)] fifty-nine dollars ($59.00) per full twenty- four (24) hour day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to [FIFTY DOLLARS ($50.00)] fifty-nine dollars ($59.00) per day. Claims for lodging expenses will be supported by receipts. Section 5. Amendment of Section 23.40.040 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.040 – Terminal leave, is hereby amended as follows: 23.40.040 Terminal Leave. Upon separation [DURING INITIAL PROBATION (FIRST SIX (6) MONTHS FOR POLICE, FIRE AND COMMUNICATION), ACCRUED ANNUAL LEAVE SHALL NOT BE GRANTED NOR PAID TO EMPLOYEES IN THE CLASSIFIED SERVICE. IN OTHER SEPARATIONS], accrued leave shall be paid in a lump sum, except for separation during initial probation, in which accrued annual leave shall not be paid in an amount to exceed eighty (80) hours. The salary or hourly rate to be used in computing the cash payment shall be the rate which is being received by the employee on the date the resignation/separation is signed by the employee. Section 6. Amendment of Section 23.55.020 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.020 – Compensation structure by grade for employees in the classified service, is hereby amended as follows: 23.55.020 Compensation Structure by Grade for Employees in the Classified Service. (a) Compensation structure by grade for employees in the classified service is hereby established in accordance with the most recent salary schedule effective upon enactment by City Council of the ordinance adopting a budget for the following fiscal year or by resolution. (b) On completion of the probationary period, each [PERMANENT FULL-TIME] employee in the classified service [, EXCEPT SEASONAL EMPLOYEES,] shall be advanced one (1) step. At succeeding anniversary dates, subject to an evaluation of “Meets Expectations” or better,” the employee [S IN THE CLASSIFIED SERVICE] may be advanced a step increment subject to City Manager approval. The time period normally between steps B to C to D to E to F is one (1) year. The time normally between Steps F to AA to BB to CC to DD to EE is two (2) years. [(C) ON COMPLETION OF THE PROBATIONARY PERIOD, EACH PERMANENT PART-TIME EMPLOYEE IN THE CLASSIFIED SERVICE AND SEASONAL EMPLOYEE SHALL BE ADVANCED ONE (1) STEP. AT APPROPRIATE BIENNIAL OR QUADRENNIAL ANNIVERSARY DATES THEREAFTER, SUBJECT TO THE EMPLOYEE’S MOST RECENT ANNUAL EVALUATION BEING “MEETS EXPECTATIONS” OR BETTER, THE EMPLOYEE, INCLUDING SEASONAL EMPLOYEES, MAY BE ADVANCED A STEP INCREMENT. THE TIME PERIOD NORMALLY BETWEEN STEPS B TO C TO D TO E TO F IS TWO (2) YEARS. THE TIME PERIOD NORMALLY BETWEEN STEPS F TO AA TO BB TO CC IS FOUR (4) YEARS.] Page 31 Ordinance No. 3419-2024 Page 4 of 6 New Text Underlined; [DELETED TEXT BRACKETED] Section 7. Amendment of Section 23.55.030 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.030 – Qualification pay, is hereby amended as follows: 23.55.030 Qualification Pay. (a) In recognition of professional development, personal time, and effort of the individual to achieve same, the following annual recognition entitlement is authorized, payable on a pro rata monthly basis. (b) This recognition entitlement, except senior officer pay, investigator pay, certified municipal clerk pay, and driver/operator pay, is not considered when calculating hourly rates for annual leave or holiday pay. (1) Police Department. (i) Certification in accordance with State of Alaska Certification Standards as follows: [POLICE OFFICER] Intermediate Certification [$1,800/YEAR] An additional 2.25% of step A of the Police Officer range. Eligible grades are Police Officer and Police Sergeant. Advanced Certification [$3,000/YEAR] An additional 3.75% of step A of the Police Officer range. Eligible grades are Police Officer, Police Sergeant, Police Lieutenant, and Police Chief. [POLICE SERGEANT INTERMEDIATE CERTIFICATION $1,800/YEAR ADVANCED CERTIFICATION $3,000/YEAR POLICE LIEUTENANT ADVANCED CERTIFICATION $3,000/YEAR POLICE CHIEF ADVANCED CERTIFICATION $3,000/YEAR] (ii) Recognition Pay for Qualified Senior Officers. Senior officer pay is for police officers who have completed [STEP 21E] five years of service with the City of Kenai subject to an overall evaluation rating of “Meets Expectations” or better, as follows: [ADVANCE ONE (1) PAY GRADE FROM 21E TO 22E] An additional 5% of the employee’s current range and step. (iii) Recognition pay for qualified field training officer personnel for officers temporarily assigned field training officer duties for eligible shifts only as follows: Five percent (5%) increase of the employee’s current range and step. (iv) Recognition pay for qualified “investigator” personnel for temporary assignment as an investigator when the assignment is the employee’s primary assignment and the assignment has been approved by the City Manager or designee as follows: Five percent (5%) increase of the employee’s current range and step. (2) Fire Department. (i) Recognition entitlement for an associate degree in fire science is four hundred eighty dollars ($480.00) per year. Eligible grades are fire fighter, engineer, and captain. Page 32 Ordinance No. 3419-2024 Page 5 of 6 New Text Underlined; [DELETED TEXT BRACKETED] (ii) Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer, [AND] captain, Fire Marshal, Deputy Fire Chief, and Fire Chief are as follows: EMT I Instructor [$250/YEAR] An additional .5% of step A of the Firefighter range. [EMT II $500/YEAR] EMT III [$1,000/YEAR (INCLUDES EMT II PAY)] An additional 2.25% of step A of the Firefighter range. EMT-Paramedic [$1,500/YEAR (INCLUDES EMT II AND III PAY)] An additional 3.75% of step A Firefighter range (includes EMT III pay) (iii) Recognition entitlements for driver/operator qualified personnel for eligible grades of fire fighter are as follows: Driver/Operator Qualified [ONE (1) PAY RANGE INCREASE (PAY RANGE 18 TO PAY RANGE 19)] An additional 5% of the employee’s current range and step (3) Water and Sewer Utility. Certification in accordance with the State of Alaska Certification Standards. W & S II $300/year W & S III $480/year (4) City Clerk’s Office. Certification in accordance with International Institute of Municipal Clerks. Certified Municipal Clerk 2.5% of the employee’s base pay (5) Building Plans Examiner. Recognition Pay for certification in accordance with the International Code Council as a Building Plans Examiner beyond the basic requirements of the employee’s position, which provides substantial cost savings or additional benefit to the City, upon recommendation by the Department Head and approval of the City Manager as follows: An additional 2.25% of step A of the employee’s current range and step. Section 8. Amendment of Section 23.55.080 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.080 – Longevity pay for employees in the classified service, is hereby amended as follows: 23.55.080 Longevity Pay for Employees in the Classified Service. All regular employees who have received an overall rating of “Meets Expectations” or better in their last performance evaluation and who have been at Step [CC]EE for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%) of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall be paid just once a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this section but prior to the end of the calendar year 2008. Notwithstanding the above, any employee in the classified service who has received a range increase or a non-cost of living pay increase within their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus. Section 9. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares Page 33 Ordinance No. 3419-2024 Page 6 of 6 New Text Underlined; [DELETED TEXT BRACKETED] that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 10. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF June, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: May 15, 2024 Enacted: June 5, 2024 Effective: July 5, 2024 Page 34 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager Scott Bloom, City Attorney FROM: Stephanie Randall, Human Resources Director DATE: April 11, 2024 SUBJECT: Ordinance No. 3419-2024 – Amending Kenai Municipal Code Title 23 Personnel Regulations The City contracted with McGrath Human Resources Group (McGrath) to conduct a Classification Study. Working with an internal personnel working group of City employees, McGrath developed an overall compensation and classification recommendation for the City. McGrath and Human Resources Director Stephanie Randall presented the recommendations to the City Council on April 3, 2024. The recommendations encompass several key updates to the City’s salary structure. These include adding two steps (DD-EE) to the end of the schedule, adjustments to qualification/certification pay, acting pay, longevity pay, probationary period, part-time employee compensation structure, and travel reimbursement. These changes, designed to enhance the City's personnel regulations, are necessary to provide an appropriate compensation structure to recruit and retain qualified employees. Below is a sectional analysis for the proposed code changes included in the Ordinance. Section 1. This section amends 23.05.070, which defines the probationary period for employees in the classified service, except for public safety positions, as six months and public safety positions as 12 months, to change the probationary period to 12 months for all positions. City employees are eligible for a one-step pay raise upon satisfactory completion of probation. McGrath recommended extending the City’s pay schedule with the intention that employees would be eligible for step A-F on an annual basis, subject to a satisfactory evaluation. Based on the recommendation of McGrath, to ensure consistency across positions and to align the City with industry standards, an amendment to Section 23.05.070 to make the probationary period 12 months for all positions is recommended. Section 2. This section amends 23.25.070, which provides acting pay to an employee temporarily assigned to and performing the duties of a position with a higher pay range for 40 or more consecutive regular work hours (56 hours for employees performing fire protection activities). Depending on an employee’s current step placement and whether the employee is acting in the Department Head Service or in the capacity of a position appointed by the City Council, which do Page 35 Page 2 of 4 not have a “first step,” acting pay ranges from an additional 2% to, in some cases 40% and, in one case, an almost 96% pay increase. This amendment changes acting pay from the first step of the higher range or a one-step pay increase to a fixed increase to 10% of the employee’s current range and step, providing a fairer compensation approach. Based on the recommendation of McGrath and to ensure a fair and equitable approach to acting pay, the amendment to change acting pay to 10% is recommended. Section 3. This section amends 23.30.030, which provides for a 6- or 12-month probationary period for employees in the classified service. As described above, an amendment to Section 23.30.030 to make the probationary period 12 months for all positions is recommended to ensure consistency across positions. Section 4. This section amends 23.30.110, which provides a $50 per diem rate per day for employees traveling on City business outside of the City. The City’s authorized per diem rate was established in 1977 at $20 per day plus lodging expenses and increased to $50 in 2005 to adjust for inflation and has not been adjusted since. Per diem is an allowance paid to employees, City Council members, and Commissioners for meals and incidental expenses incurred when traveling. This allowance is in lieu of paying actual travel expenses, is not part of an employee’s wages, and is not taxable to the employee unless the rate is more than the federal per diem rate, which is set each year. Per diem typically covers lodging, meals, and incidentals, and the standard non-specified rate is $59 for Meals & Incidentals (M&IE). The reimbursement for employees who habitually use their privately-owned vehicle for City business was set at $30 per month in 1981 and has not increased since then. Employees who use their privately-owned vehicle more than the set amount have been reimbursed at the standard IRS mileage rate. To ensure employees are adequately reimbursed for travel expenses, an amendment to Section 23.30.110 to increase the per diem from $50 to $59 and provide a mileage reimbursement is recommended. Section 5. This section amends 23.40.040, which prohibits the City from paying an employee accrued annual leave if the employee is terminated before completing probation. Employees are allowed to take leave during the probationary period and may terminate for various reasons beyond the employee’s control. Based on the City’s former policy that employees could not take leave during the probationary period, which has since been abolished, an amendment 23.40.040 to allow employees to be paid up to 80 hours of accrued leave upon separation during the probationary period and reflecting the extended probationary period, is recommended. Section 6. This section amends 23.55.020, which sets the period when full-time and part-time employees are eligible for step increases. The City’s compensation structure by grade differs for full-time and part-time employees. This is true even when employees hold the same position as a full-time employee but work part-time. While full-time employees are eligible to advance one step annually for steps B-F and every two years for steps AA-CC, part-time employees are only eligible to advance every two years for steps B-F and every four years for steps AA-CC. Based on McGrath’s recommendation to extend the City’s pay schedule additional steps (DD and EE) and recommendation that all positions be paid the same pay range and afforded the same step adjustments at the same time intervals regardless of employment status (part-time or full-time) to ensure fairness and internal equity, an amendment to 23.55.020 to align the eligibility criteria for step increases between full-time and part-time employees is recommended. Page 36 Page 3 of 4 Section 7. This section amends 23.55.030, which establishes qualification pay for employees in recognition of professional development, personal time, and effort for Police Department, Fire Department, Water and Sewer Utility, and Clerk’s Office employees. Police Department. Qualification pay for Police positions was established in 1978 and increased to the current amounts in 2020 to address the recruitment and retention of qualified officers. This increase included recognition pay for qualified senior officers, field training officers, and investigators. The pay for Senior Officers was modeled after a one- pay range increase for qualified Driver/Operator positions established in the Fire Department and is based on the employee’s step placement. The certification pays for comparable positions in other places of public employment are calculated on an hourly basis or as a percentage of the base or regular hourly rate, which allows the pay to adjust annually based on adjustments to the salary schedule or pay plan. To ensure compensation is competitive for comparable positions in other places of public employment and apply qualification pay uniformly to promote efficiency and economy, an amendment to 23.55.030 to calculate certification pay as a percent instead of a flat rate is recommended. This change to Recognition Pay for Qualified Senior Officers would account for the pay more correctly as Certification Pay rather than change an employee’s base pay and classification. There is no additional cost associated with amending Recognition Pay for Qualified Senior Officers because the cost to advance an employee one pay grade from 21E to 22E is the same as an additional 5% of the employee’s current range and step. Qualified Senior Officer pay is considered when calculating hourly rates for annual leave and holiday pay. Overtime would also be calculated to include this recognition pay. Fire Department. Qualification pay for Firefighters was established in 1978 and increased to the current amounts in 1981. In 1981, $1,000 represented 3% of a firefighter's annual pay. Today, EMT III pay represents 1% of the base hourly rate. In 2013, a one-pay range increase for qualified Driver/Operator was adopted based on a compensation comparison with Engineer positions in neighboring fire departments. The Fire Marshal, Deputy Fire Chief, and Fire Chief positions are not listed in the Code as positions eligible for EMT III pay; however, employees in these positions have received this pay at the recommendation of the Department Head and previous City Administration based on the benefit provided to the City, as these positions are required to participate in fire suppression and other emergency situations. No employees are receiving EMT II pay, as most Fire Department employees are receiving EMT III Pay or have not yet achieved minimum certification requirements. The change to Recognition Pay for Driver/Operator positions would account for the pay more correctly as Certification Pay rather than change an employee’s base pay and classification. There is no additional cost associated with amending Driver/Operator pay because the cost to advance an employee one pay grade is the same as an additional 5% of the employee’s current range and step. To reflect the increase in compensation since 1981, ensure compensation is competitive for comparable positions in other places of public employment, and apply qualification pay uniformly to promote efficiency and economy, an amendment to 23.55.030 to remove EMT II pay, increase certification pay and calculate pay as a percent instead of a flat rate is recommended, Page 37 Page 4 of 4 include all positions required to participate in fire suppression and other emergency situations is recommended. Building Plans Examiner. To ensure the City meets the terms of its agreement for exemption of plan review and deferral of life safety inspections with the State of Alaska, to encourage employees to pursue certification beyond the basic requirements of their position, and to provide additional benefit to the City, an amendment to 23.55.030 to add a new type of certification pay as an additional 2.25% of step A of the employee’s current range and step for employees who obtain certification in accordance with the International Code Council as a Building Plans Examiner, which provides substantial cost savings or additional benefit to the City, upon recommendation by the Department Head and approval of the City Manager is recommended. Section 8. This section amends 23.55.080, which establishes longevity pay as a lump sum payment of 2% of an employee’s base pay for employees who have been at the last step (Step CC) of the City’s pay schedule for two years. Longevity Pay was adopted in 2008 to reward employees for their long-term service with the City based on its short pay model, which allowed employees to reach the maximum step in 10-10.5 years. McGrath recommended extending the compensation system to an 11-step model, which allows employees to reach the maximum step in 15 years. Longevity Pay for comparable public employers ranges from lump sum payments of 2-2.5%, with some employers either not having longevity pay or providing an annual bonus to all employees with at least one year’s service. Based on the recommendations of McGrath and to ensure compensation is competitive for comparable positions in other places of public employment, an amendment to 23.55.080 to change the last step from CC to EE is recommended. As part of the Administration’s proposed implementation of the updated pay schedule to an 11- step model, employees currently eligible for a longevity bonus who would see a non-cost of living pay increase would no longer be eligible for the longevity bonus under the City’s Code. To ensure that no employees receive a decrease in annual pay, the longevity bonus amount is considered part of the total annual pay for employees in longevity when placing employees in the new schedule to ensure that the employee moves to the step closest to what they are earning without taking a decrease in pay. These amendments aim to enhance the City's compensation and classification structure, ensuring fairness, competitiveness, and alignment with industry standards. Thank you for your consideration. Page 38 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member James Baisden DATE: May 28, 2024 SUBJECT: Ordinance 3418-2024 – Requested Amendment to the Draft FY2025 Budget Document Ordinance 3419-2024 – Requested Amendment Contingent on the Enactment of Ordinance 3418-2024 This memo requests an amendment to the Draft FY2025 Budget Document and to KMC 23.55.030 to incorporate qualification pay for Public Safety Dispatchers and adjust recognition entitlements for Paramedic certification for eligible Fire Department grades. After the Administration held meetings with employees and recognized the added responsibilities of Public Safety Dispatchers who serve as communications training officers as part of the department’s training program and to ensure compensation is competitive for comparable positions in other places of public employment, an amendment to add recognition pay for qualified Public Safety Dispatchers in the amount of a 5% increase of the employee’s current range and step is recommended. This amendment is supported by Human Resources and the City Manager, with an estimated annual cost of $2,996. For Fire Department positions, it is recommended that qualification pay for Paramedic certification be calculated on the employee’s current range and step to ensure competitive compensation. An amendment is also needed to accurately reflect the type of certification to reflect the Fire Department’s current certification levels and transition to the National Registry of Emergency Medical Technicians standards. Human Resources and the City Manager met with employees, reviewed certification pay, and supported an amendment to correct the certification types, increase certification pay for Paramedic to 5%, and adjust the pay so that it is determined by the employee’s current range and step rather than being fixed at step A of the Firefighter range, with an estimated annual cost of $25,504. The following changes to the draft FY2025 budget document referenced in Ordinance 3418-2024 are respectfully requested: Motion Amend the Draft FY2025 Budget Document as follows: General Fund - Fire, page 132 Increase the Salaries and Benefits section by an additional $25,504 General Fund - Communications, page 137 Increase the Salaries and Benefits section by an additional $2,996 For an overall increase of $28,500 to the FY2025 Budget Page 39 Page 2 of 2 The following amendments to Ordinance 3419-2024 are respectfully requested and are contingent on the enactment of Ordinance 3418-2024, adopting the “Annual Budget for the City of Kenai, Alaska July 1, 2024 – June 30, 2025,” Salary Schedule, and Employee Classification Plan and appropriating funds for the fiscal year July 1, 2024 – June 30, 2025: Motion 1 New Text Underlined; [DELETED TEXT BRACKETED] Motion 2 New Text Underlined; [DELETED TEXT BRACKETED] Thank you for your consideration. Amend Ordinance 3419-2024, Section 7, Section 23.55.030 - Qualification Pay, to include a new subparagraph (b)(1)(v) to read: (Recognition pay for qualified Public Safety Dispatcher personnel for employees temporarily assigned dispatcher training duties for eligible shifts only as follows: An additional five percent (5%) of the employee’s current range and step. Amend Ordinance 3419-2024, Section 7, Section 23.55.030 - Qualification Pay, paragraph (b)(2)(ii), to read: (ii) Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer, captain, Fire Marshal, Deputy Fire Chief, and Fire Chief are as follows: EMT/EMS Instructor An additional one-half percent (.5%) of step A of the Firefighter range. EMT III /Advanced Emergency Medical Technician (AEMT) An additional two and one-quarter percent (2.25%) of step A of the Firefighter range. [EMT- ]Paramedic An additional [3.75% OF STEP A FIREFIGHTER RANGE (INCLUDES EMT III PAY)] five percent (5%) the employee’s current range and step (includes AEMT Pay). Page 40 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3420-2024 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND AND MUNICIPAL ROADWAY IMPROVEMENTS CAPITAL FUND AND AWARDING A CONSTRUCTION AGREEMENT AND CORRESPONDING PURCHASE ORDER FOR THE 2024 LILAC LANE ROADWAY IMPROVEMENT PROJECT. WHEREAS, The City of Kenai formally released for construction bids the 2024 Lilac Lane Roadway Improvements Project on April 17, 2024 with bids due on May 7, 2024; and, WHEREAS, the following bids were received: Contractor Base Bid Alternative Bid Peninsula Construction, Inc. $637,180 $637,765 Foster Construction, LLC $785,843 $877,000 ; and, WHEREAS, the project includes repair and replacement of severely settled concrete curb and asphalt areas along Lilac Lane from Cook Inlet View Drive to the Kenai Spur Highway, with the difference between the base bid and alternative bid being a complete replacement of all asphalt in lieu of patching effected areas only; and, WHEREAS, Peninsula Construction, Inc. having successfully provided a low bid within budgeted amounts will be awarded the construction agreement for their alternative bid in the total amount of $637,765, which includes a $50,000 contingent sum for unforeseen conditions; and, WHEREAS, this project is listed in the FY2025-2029 Capital Improvement Plan and was set to receive funding on July 1st during the new fiscal year, however this Ordinance is allowing appropriation of those funds earlier to allow sufficient time to complete the project this construction season; and, WHEREAS, this project will take place through the summer with substantial completion anticipated for the Fall of 2024. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues - Appropriation of Fund Balance $637,765 Increase Appropriations – Transfer to Municipal Roadway Improvements Capital Fund $637,765 Page 41 Ordinance No. 3420-2024 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Section 2. That the estimated revenues and appropriations be increased as follows: Municipal Roadway Improvements Capital Fund: Increase Estimated Revenues - Transfer from General Fund $637,765 Increase Appropriations – Construction $637,765 Section 3. That the City Manager is authorized to execute a construction agreement in the amount of $637,765 and to issue a corresponding purchase order to Peninsula Construction, Inc. in that same amount. Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: May 15, 2024 Enacted: June 5, 2024 Effective: June 5, 2024 Page 42 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Scott Curtin, Public Works Director DATE: May 8, 2024 SUBJECT: Ordinance 3420-2024 On May 7th, 2024 the Public Works Department received construction bids for the 2024 Lilac Lane Roadway Improvements project, with Peninsula Construction, Inc. determined to have provided the lowest responsive and responsible bid at a total cost of $637,765. The project has been moving forward within our Capital Improvement Plan for some years now. This Ordinance is being provided now to appropriate the funding a month ahead of our normal fiscal years appropriations to allow more time to complete the project during this construction season. Lilac Lane is approximately 1600lf in length, located between Cook Inlet View Drive and the Kenai Spur Highway. The roadway Is primarily residential with some commercial properties along the highway frontage. Map and photo below of the project area. The project is anticipated to start in June with completion anticipated for later this fall. Council’s approval of this Ordinance is respectfully requested. Page 43 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-19 A RESOLUTION FIXING THE RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR COMMENCING JULY 1, 2024 AND ENDING JUNE 30, 2025. WHEREAS, Kenai Municipal Code requires that the rate of levy of property tax be set annually not later than the tenth day of June; and, WHEREAS, the Council has adopted the "City of Kenai 2025 Annual Budget," which estimates property tax revenue based upon a tax rate of 4.35 mills. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the rate of levy of property tax for the fiscal year commencing July 1, 2024 and ending June 30, 2025 is fixed at 4.35 mills. Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 44 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: May 24, 2024 SUBJECT: Resolution 2024-19 Establishing the City of Kenai FY2025 Property Tax Mill Rate Resolution 2024-19 will establish the rate of levy of property tax for FY2025, tax year 2024. The proposed rate of levy is 4.35 and will result in $435 in taxes being paid for each $100,000 of taxable assessed property value. The rate is unchanged and will generate the necessary property taxes to support the adopted FY25 budget. The last mill rate change for the City was in FY2015. Your support is respectfully requested. Page 45 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-20 A RESOLUTION AMENDING THE COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES INCLUDED IN THE FY2025 BUDGET TO INCLUDE ADJUSTING AIRPORT FEES, WATER FEES, SEWER FEES, AND ADJUSTING THE MONTHLY RENTAL RATES AT VINTAGE POINTE. WHEREAS, the newly adopted sections 10.40.090(a) and (b) provide that the fees for copying public records including paper documents, audio/video recordings, and digital records, as well as certified copies, will be a per copy fee as set forth in the City’s schedule of fees adopted by the City Council; and, WHEREAS, the newly adopted sections 10.40.090(c) and (d) provides that the fee for electronic services and products will be based on recovery of the actual incremental costs of providing the electronic services and products, and a reasonable portion of the costs associated with building and maintaining the information system of the City; and, WHEREAS, the Comprehensive Schedule of Rates, Charges, and Fees currently provides for Audio CDs and cassettes as methods of electronic records transfer; outdated mediums which are no longer convenient for many members of the public to access; and, WHEREAS, the Administration negotiated and implemented a five-year Airline Operating Agreement which was effective July 1, 2020; and, WHEREAS, this Airline Operating agreement included a 5% annual increase in terminal rents for exclusive and non-exclusive space, signatory landing fees, and signatory apron space; and, WHEREAS, non-signatory landing fees are 30% higher than the signatory rate and will be impacted proportionally by its increase; and, WHEREAS, the proposed increase to Airport Reserve Land Annual Lease Rates is commensurate with the 2023 annual change in Consumer Price Index for Anchorage of 1.54% and is a required rate change under Kenai Municipal Code 21.10.090(b); and, WHEREAS, the last water and sewer rate study performed by the City was in FY11 which called for annual adjustments by the Anchorage Alaska Annual Consumer Price Index (CPI) after a five-year period of rate increases in addition to CPI; and, WHEREAS, annual adjustments in relation to CPI reduces the likelihood of dramatic future increases upon the completion of a new rate study that is being performed; and, WHEREAS, the Anchorage Annual Consumer Price Index increase for 2022 and 2023 was 8.11% and 1.54% respectively and a 5% increase in FY2024, a 4% Water and Sewer rates is reasonable pending the completion the new rate study; and, WHEREAS, the Library removal of fees for equipment no longer in circulation; and, WHEREAS, the Library removal of postage fees in accordance to others in the consortium; and, Page 46 Resolution No. 2024-20 Page 2 of 9 New Text Underlined; [DELETED TEXT BRACKETED] WHEREAS, the Library included a processing fee of $5 to account for lost or damaged items; and, WHEREAS, the Library included a $10 fee for lost or damaged power cords; and, WHEREAS, the Library removed fees for replacement cost of projector/screen kit and Fishing rods and reels as they are included in Juvenile kits/adult kits/Playaway launchpads; and, WHEREAS, a rental rate study for Vintage Pointe was completed in 2020 and the City’s policy is to adjust rental rates each year by the Anchorage Alaska Annual Consumer Price Index (CPI) to a maximum of $50.00 per month until the next study, 2025; and, WHEREAS, because of the high, 8.11% Anchorage CPI for 2022 all units in Vintage Pointe will be below market after the proposed $50.00 per month increase; and, WHEREAS, updating the City’s Schedule of Rates, Charges, and Fees to include changes made in formation of the annual budget is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That City Clerk Fees be amended as follows: CITY CLERK PUBLIC RECORDS REQUESTS [KMC 10.40.050] [APX - PUBLIC RECORD INSPECTION REGULATIONS 1.01] 10.40.090(a) First 10 copies are free, more than 10 copies per copy $0.25 [1.01 AUDIO CD OR CASSETTE, FIRST $25.00 1.01 AUDIO CD OR CASSETTE, ADDITIONAL $5.00] 10.40.090(d) Electronic Services Actual [1.02] 10.40.090(b) Certified Copy Fee $10.00 [1.03] 10.40.090(c) Production fee will be calculated for work over 5 hours Actual Section 2. That Airport Fees be amended as follows: AIRPORT FEES 21.05.085 Fuel Flowage Fee per gallon -Signatory $0.035 -Non-signatory $0.07 APX - Airport Regulations Aircraft Parking Fees 6.05.070 (c) -transient, under 4,000 lbs. 0 - 4 hrs. FREE 6.05.070 (c) -transient, under 4,000 lbs. over 4 hrs. $5.00 6.05.070 (c) -transient, 4,001 - 12,500 lbs. 0-12 hrs. $25.00 6.05.070 (c) -transient, 4,001 - 12,500 lbs. 12-24 hrs. $50.00 6.05.070 (c) -transient, 12,501 - 100,000 lbs. 0-12 hrs. $50.00 6.05.070 (c) -transient, 12,501 - 100,000 lbs. 12-24 hrs. $100.00 6.05.070 (c) -transient, 100,001 lbs. per day $250.00 Landing Fees Page 47 Resolution No. 2024-20 Page 3 of 9 New Text Underlined; [DELETED TEXT BRACKETED] 14.05.010 (a)(2) Signatory per thousand pounds [$1.97] $2.07 14.05.010 (b)(2) Non-signatory per thousand pounds [$2.56] $2.69 exempt -- float planes, test landings due to mechanical or weather, government aircraft Terminal Building Rent -- Exclusive Space -signatory - per square foot per year [$39.19] $41.15 -signatory -- arrival hallway, departure hallway, passenger hold room & baggage claim area (per square foot per year) [$39.19] $41.15 Terminal Building Rent -- Joint Use Space -signatory -- baggage make up area (per square foot per year) [$23.75] $24.94 -signatory -- baggage break down area (per square foot per year) [$23.75] $24.94 -non-signatory terminal rates 30% higher Other Fees -Taxi cab annual fee per vehicle $100.00 -Terminal building key replacement (per key) $10.00 -Non-signatory airline airport apron rental rate per square foot [$1.33] $1.40 -Signatory, airline, terminal apron parking and GSE storage space rent per square foot [$0.61] $0.64 Page 48 Resolution No. 2024-20 Page 4 of 9 New Text Underlined; [DELETED TEXT BRACKETED] 21.10.090 (a) Airport Reserve Land Annual Lease Rates Legal Description of Property KPB Parcel ID No. FY25 Annual Rent Lot 2, Block 2, FBO Subdivision 04336004 [$7,321.12] $7,430.96 NW 1/4 NW 1/4 Sec, 33 lying W of Marathon Rd. excluding Baron Park 2007 Replat 04501056 Subject to Appraisal Lot 8, Block 2, Cook Inlet Industrial Air Park 04322008 [$17,477.44] $17,739.60 Lot 3, Block 5, Cook Inlet Industrial Air Park 04322020 [$6,441.44] $6,741.04 Lot 4, Block 5, Cook Inlet Industrial Air Park 04322021 [$6,691.44] $6,791.84 Lot 9A, Block 5, General Aviation Apron No. 6 04324026 $15,769.12 Lot 1, Block 2, FBO Subdivision 04336003 [$7,621.12] $7,735.44 Lot 1, FBO Subdivision No. 6 04336034 [$14,267.28] $14,481.28 Lot 3, FBO Subdivision No. 6 04336036 [$20,211.92] $20,515.12 [Lot 5, FBO Subdivision No. 9 04336043 Subject to Appraisal] Tract A1, Baron Park 2007 Replat 04501031 [$40,778.40] $41,390.08 [Tract C-1, Gusty Subd. No. 8 04327034 $4,016.16] Portion of W1/2 of Sec. 28 & SE1/4, Sec. 29, T6N, R11W 04101021 Subject to Appraisal Portion of SW1/4, Sec. 29, T6N, R11W Excluding Airport Float Basin Replat 04101022 Subject to Appraisal Portion of Tract A, Kenai Airport Float Plane Basin Replat 04318043 Subject to Appraisal Portion Sec. 32, T6N, R11W Excluding Subs. & Leased Areas & Float Plane Basin 04318044 Subject to Appraisal Tract A, FBO Subdivision 04336001 Subject to Appraisal [Lot 5A, Block 1, FBO Subdivision 04336049 Subject to Appraisal] Portion of E1/2 NE1/4 & SW1/4 NE1/4, Sec. 29, T6N, R11W 04101004 Subject to Appraisal Portion of Tract B, FBO Subdivision No. 10 04318045 Subject to Appraisal Lot 5B, FBO Subdivision No. 10 04318048 Subject to Appraisal Tract A, Gusty Subdivision No. 3 04327021 Subject to Appraisal Lot 1, Block 3, Gusty Subdivision No.4 04327030 Subject to Appraisal Lot 2, Block 3, Gusty Subdivision No. 4 04327031 Subject to Appraisal Lot 3, Block 3, Gusty Subdivision No. 4 04327032 Subject to Appraisal Tract C-1, Gusty Subdivision No. 7 04327034 Tract B, Gusty Subdivision No. 6 Amended 04327035 Subject to Appraisal Page 49 Resolution No. 2024-20 Page 5 of 9 New Text Underlined; [DELETED TEXT BRACKETED] Section 3. That Library Fees be amended as follows: LIBRARY FEES APX - Library Regulations and Policies 1. Default fees for lost, stolen or damaged materials when no retail value is available. a. -Adult book (hardcover) $33.00 b. -Adult large print $40.00 c. -Adult audiobook $50.00 d. -Youth board book $10.00 e. -Youth book (hardcover) or picture book $25.00 f. -Youth audiobook $25.00 g. -Adult/youth trade paperbacks $15.00 h. -Adult/youth mass market paperbacks $10.00 i. -Magazines $5.00 j. -Video/DVD/music CD $30.00 k. -DVD set $50.00 l. -Interlibrary loan item (fee or actual cost charged by lender) $30.00 m. -Juvenile kits/Adult kits/Playaway launchpads $150.00 n. -Microfilm reel or microfiche $35.00 [O. -PROJECTOR/SCREEN KIT $1,000] [P.] o -Chromebook kit $370.00 [Q.]p. -Laptop $800.00 [R. -FISHING RODS AND REELS $59.00] 2. Proctoring per test $25.00 3. Replacement Costs a. -processing fee for all lost/damaged items $5.00 [A.] b. -item barcode $1.00 [B.] c. -RFID Tag $1.00 [C.] d. -replacement library card $1.00 [D.] e. -mylar book cover $1.00 [E.] f. -music DC or single disc DVD case $2.00 [F.] g. -multidisc DVD or audiobook case $5.00 [G.] h. -power cord Chromebook/laptop $20.00 i. -power cord Launchpads, Tonies, etc. $10.00 Portion of T 5N R 11W Sec 5 & 6 Seward Meridian Kn Ptns of Sec 5 & 6 Lying NE of Kenai Spur Hwy & E of Birch Dr & NW of Main St Excl USS 4969 & Gusty Sub K1700 & Gusty Sub Addn #1 Amd 84-183 & Gusty Sub #3 84-237 & Gusty Sub #4 86-76 & Gusty Sub #5 87-15 & Gusty Sub #7 89-5 & Kenai Cemetery Expansion Sub 04327036 Subject to Appraisal Lot 1, FBO Subdivision No. 7 04336037 Subject to Appraisal Page 50 Resolution No. 2024-20 Page 6 of 9 New Text Underlined; [DELETED TEXT BRACKETED] Section 4. That Water and Sewer Fees be amended as follows: WATER FEES APX - Public Utility Regulations and Rates Water & Sewer service deposit - refundable after two years of timely payments $100.00 1. Schedule A -General Domestic Service Rates (non-metered) -one or two family residence, per family unit [$40.85]$42.48 -single or double unit apartment, per family unit [$40.85]$42.48 -apartment, 3 or more units on a single parcel, per family unit -single bill assumed by owner [$30.75]$31.98 -separate bill [$40.85]$42.48 -trailers, one or two on single lot, each [$40.85]$42.48 -trailer, 3 or more on single lot -single billing [$30.75]$31.98 -separate billing [$40.85]$42.48 -boarding houses, per available room [$10.87]$11.30 2. Schedule B - Commercial service (non-metered) -demand -1.00 inch service [$41.42]$43.08 -1.25 inch service [$63.09]$65.61 -1.50 inch service [$104.49]$108.67 -2.00 inch service [$157.71]$164.02 -3.00 inch service [$236.59]$246.05 -larger than 3.00 inch service [$354.85]$369.04 -use charge -bakery [$120.25]$125.06 -bath house, tub or shower, each [$27.64]$28.75 - bottling works, per bottling machine [$950.22]$988.23 -bowling alleys, amusement parks, doctor [$114.32]$118.89 -car lot, with car wash facilities [$57.18]$59.47 -car wash, automatic, per facility [$512.54]$533.04 -car wash, self-service, per stall [$76.87]$79.94 -churches, lodges, clubs, banquet rooms, per seat [$0.44]$0.46 -cleaners and commercial laundries, per facility [$329.23]$342.40 -dairies, installation of water meter required -day care center/preschool, per child, maximum capacity [$1.64]$1.71 -doctor and dentist offices, per room or chair [$24.63]$25.62 -garage, service stations [$49.29]$51.26 -recreational vehicle dump facility (May - September)[$57.18]$59.47 -hangar, airplane repair [$49.29]$51.26 -with washing facilities [$57.16]$59.45 -hospital, per bed [$32.55]$33.85 -hotel, motel, resort, per room [$25.62]$26.64 -laundry, self service, per machine [$46.37]$48.22 -markets, meat [$63.09]$65.61 -office building single bill assumed by owner, per business [$55.17]$57.38 -office building, tenants are billed, per business [$63.09]$65.61 -restaurants, cafes, taverns, bars, per seat [$3.55]$3.69 -public office building, per restroom [$14.21]$14.78 -recreation facility, per restroom, sauna, shower [$27.64]$28.75 -rv/camper park, per space [$27.64]$28.75 -schools, per seating capacity [$1.64]$1.71 -shopping center [$28.62]$29.76 -shops, beauty, per station or chair [$28.62]$29.76 -shops, misc. (includes barber), per shop [$28.62]$29.76 -sleeping room, per room [$10.87]$11.30 -studio, photo or photo lab [$135.05]$140.45 -supermarket [$324.31]$337.28 -theater, indoor, per seat [$0.19]$0.20 -theater, outdoor, per seat [$0.19]$0.20 -taverns, lounges, bars (without kitchens), per seat [$3.38]$3.52 -xray or lab office [$80.84]$84.07 Page 51 Resolution No. 2024-20 Page 7 of 9 New Text Underlined; [DELETED TEXT BRACKETED] WATER FEES - continued 3. Schedule C - Industrial Service (non-metered) -concrete mixing plant [$520.42]$541.24 -concrete products [$260.24]$270.65 -confectioner [$173.46]$180.40 -greenhouse, commercial [$173.46]$180.40 -ice cream plant [$260.24]$270.65 -cold storage plant or locker [$122.24]$127.13 -hydrant use (per day)[$105.83]$110.06 4. Schedule D - Fire Protection 5. Schedule E -Metered Service -general usage, per thousand gallons [$3.94]$4.10 -hydrant use, per thousand gallons [$5.93]$6.17 -minimum monthly charge, general usage [$59.17]$61.54 6. Schedule F - Water Connection Permit Fee [$245.32]$255.13 Hydrant Permit deposit $200.00 Unauthorized shut-off or turn-on of water service $250.00 Service shut-off or turn-on - during normal business hours $50.00 Service shut-off or turn-on - outside normal business hours & holidays $150.00 New construction service turn-on and shut off for system testing $0.00 New construction service turn-on for occupancy $0.00 Service valve & key box installation by City Actual Cost Key box location Actual Cost Note: All Water Fees are subject to a 2% discount for payment by means other than credit card. SEWER FEES APX - Public Utility Regulations and Rates 1. Schedule A -General Domestic Service Rates (non-metered) -one or two family residence, per family unit [$58.40]$60.74 -single or double unit apartment, per family unit [$58.40]$60.74 -apartment, 3 or more units on a single parcel, per family unit -single bill assumed by owner [$43.91]$45.67 -separate bill [$58.40]$60.74 -trailers, one or two on single lot, each [$58.40]$60.74 -trailer, 3 or more on single lot -single billing [$43.91]$45.67 -separate billing [$58.40]$60.74 -boarding houses, per available room [$15.77]$16.40 2. Schedule B -Commercial service (non-metered) -demand -1.00 inch service [$58.95]$61.31 -1.25 inch service [$87.41]$90.91 -1.50 inch service [$148.42]$154.36 -2.00 inch service [$221.59]$230.45 -3.00 inch service [$335.46]$348.88 -larger than 3.00 inch service [$504.20]$524.37 -use charge -bakery [$170.75]$177.58 -bath house, tub or shower, each [$38.61]$40.15 - bottling works, per bottling machine [$1353.99]$1,408.15 -bowling alleys, amusement parks, doctor [$163.67]$170.22 -car lot, with car wash facilities [$81.32]$84.57 -car wash, automatic, per facility [$727.82]$756.93 -car wash, self-service, per stall [$108.75]$113.10 -churches, lodges, clubs, banquet rooms, per seat [$0.61]$0.63 -cleaners and commercial laundries, per facility [$467.60]$486.30 -dairies, installation of water meter required -day care center/preschool, per child, maximum capacity [$2.35]$2.44 -doctor and dentist offices, per room or chair [$35.09]$36.49 Page 52 Resolution No. 2024-20 Page 8 of 9 New Text Underlined; [DELETED TEXT BRACKETED] SEWER FEES - Continued -garage, service stations [$71.17]$74.02 -recreational vehicle dump facility May - September)[$81.32]$84.57 -hangar, airplane repair [$70.64]$73.47 -with washing facilities [$81.32]$84.57 -hospital, per bed [$46.77]$48.64 -hotel, motel, resort, per room [$36.08]$37.52 -laundry, self service, per machine [$65.58]$68.20 -markets, meat [$89.46]$93.04 -office building single bill assumed by owner, per business [$77.27]$80.36 -office building, tenants are billed, per business [$89.46]$93.04 -restaurants, cafes, taverns, bars, per seat [$5.19]$5.40 -public office building, per restroom [$20.33]$21.14 -recreation facility, per restroom, sauna, shower [$39.13]$40.70 -rv/camper park, per space [$39.13]$40.70 -schools, per seating capacity [$2.35]$2.44 -shopping center [$40.66]$42.29 -shops, beauty, per station or chair [$40.66]$42.29 -shops, misc. (includes barber), per shop [$40.66]$42.29 -sleeping room, per room [$15.77]$16.40 -studio, photo or photo lab [$193.14]$200.87 -supermarket [$461.49]$479.95 -theater, indoor, per seat [$0.28]$0.29 -theater, outdoor, per seat [$0.28]$0.29 -taverns, lounges, bars (without kitchens), per seat [$4.87]$5.06 -xray or lab office [$114.87]$119.46 3. Schedule C - Industrial Service (non-metered) -concrete mixing plant [$742.07]$771.75 -concrete products [$370.02]$384.82 -confectioner [$245.98]$255.82 -greenhouse, commercial [$245.98]$255.82 -ice cream plant [$370.02]$384.82 -cold storage plant or locker [$172.81]$179.72 4. Schedule D - Fire Protection None 5. Schedule E -Metered Service -general usage, per thousand gallons [$5.79]$6.02 -hydrant use, per thousand gallons -minimum monthly charge, general usage [$86.86]$90.33 6. Schedule F -Permit fee [$233.76]$243.11 Note: All Sewer Fees are subject to a 2% discount for payment by means other than credit card. Page 53 Resolution No. 2024-20 Page 9 of 9 New Text Underlined; [DELETED TEXT BRACKETED] Section 5. That Vintage Pointe Rents be amended as follows: VINTAGE POINTE RENTS FOR UNITS WITH RENTAL AGREEMENTS GRANDFATHERED PER THE CITY'S POLICY BEFORE JUNE 30, 2023: 1-A apartment=586 sq. ft. Ocean Side (8) [$1,017.46] $1,067.46 1-A apartment=586 sq. ft. Street Side (5) [$970.98] $1,020.98 1-B apartment=637 sq. ft. Street Side (4) [$989.77] $1,039.77 1-B apartment=637 sq. ft. Ocean Side (6) [$1,037.24] $1,087.24 1-C apartment=682 sq. ft. Ocean Side (4) [$1,054.06] $1,104.06 1-C apartment=682 sq. ft. Street Side (4) [$1,006.58] $1,056.58 2-A apartment=826 sq. ft. Ocean Side (3) [$1,175.20] $1,225.20 2-A apartment=826 sq. ft. Street Side (1) [$1,124.27] $1,174.27 2-B apartment=876 sq. ft. Ocean Side (2) [$1,185.17] $1,235.17 2-B apartment=876 sq. ft. Street Side (2) [$1,127.39] $1,177.39 2-C apartment=789 sq. ft. Ocean Side (1) [$1,165.81] $1,215.81 Monthly Automatic ACH Payment Fee Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. FOR UNITS WITH MARKET RATE RENTAL AGREEMENTS: 1-A apartment=586 sq. ft. Ocean Side (8) [$1,074.28] $1,090.83 1-A apartment=586 sq. ft. Street Side (5) [$1,021.59] $1,037.32 1-B apartment=637 sq. ft. Street Side (4) [$1,042.88] $1,058.94 1-B apartment=637 sq. ft. Ocean Side (6) [$1,098.71] $1,113.60 1-C apartment=682 sq. ft. Ocean Side (4) [$1,115.78] $1,132.96 1-C apartment=682 sq. ft. Street Side (4) [$1,061.95] $1,078.30 2-A apartment=826 sq. ft. Ocean Side (3) [$1,257.07] $1,276.43 2-A apartment=826 sq. ft. Street Side (1) [$1,195.39] $1,213.80 2-B apartment=876 sq. ft. Ocean Side (2) [$1,275.02] $1,294.66 2-B apartment=876 sq. ft. Street Side (2) [$1,213.34] $1,232.03 2-C apartment=789 sq. ft. Ocean Side (1) [$1,242.50] $1,261.63 Monthly Automatic ACH Payment Fee Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. Section 6. That this Resolution takes effect July 1, 2024. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 54 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 23, 2024 SUBJECT: Resolution 2024-20 Fee Schedule Changes The Airport has reviewed the Airport Rates & Fees Schedule for fiscal year 2024 and respectfully requests the Kenai City Council’s consideration of the Resolution amending the fee schedule. The Airport is proposing the following changes: In accordance with the Kenai Municipal Airport – Airline Operating Agreement, the following fees will increase by five-percent (5%): Landing Fees Signatory per one-thousand pounds from $1.97 to $2.07 Non-signatory per one-thousand pounds from $2.56 to $2.69 Terminal Building Rent – Exclusive Use Space *Signatory – per square foot per year from $39.19 to $41.15 *Signatory – arrival hallway, departure hallway, passenger hold room & baggage claim area (per square foot per year) from $39.19 to $41.15 Terminal Building Rent – Joint Use Space *Signatory – baggage make-up area (per square foot per year) from $23.75 to $24.94 *Signatory – baggage breakdown area (per square foot per year) from $23.75 to $24.94 *Non-signatory terminal rates are an additional 30% Other Fees Non-Signatory airline airport apron rental rate per square foot from $1.33 to $1.40 Signatory, airline, terminal apron parking and GSE storage space rent per square foot from $0.61 to $0.64 Page 55 Page 2 of 2 Subject to Kenai Municipal Code 21.10.090 – Principles and policy of lease rates, all land leases are adjusted by the annual Consumer Price Index (CPI) for Anchorage, Alaska. The annual year over year CPI increased by 1.54 % in 2023 for Anchorage, Alaska. Page 56 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Katja Wolfe, Library Director DATE: May 28, 2024 SUBJECT: RES 2024-20 Fee Schedule Changes This memo is in reference to the Library Fees portion of the City of Kenai Schedule of Rates, Charges and Fees for FY2025. The following changes are proposed: • Under Section 1. Default fees for lost, stolen or damaged materials, we removed replacement costs for two items (o. Projector/screen kit and r. Fishing rods and reels), as both fall under m. Juvenile kits/adult kits/Playaway launchpads. (The default fees in this schedule are used only when no retail value is available.) • Under Section 3, Replacement Costs, we recommend the addition of a $5 processing fee to account for the materials and staff time needed to process replacement copies of lost or damaged items, as well as a $10 charge for lost or damaged power cords for electronic devices in our Library of Things collection. • We recommend the removal of Section 6. Equipment check-out, which was previously used to charge patrons (a) a refundable security deposit and (b) a rental fee for costly electronic equipment. We no longer circulate this equipment, making the section unnecessary. • We recommend the removal of Section 7. Postage Fee. The Kenai Community Library is the only library in the Alaska Library Catalog to assess a fee for hold items not picked up, and we would like to remove this fee to be in line with the rest of the consortium Thank you for your consideration. Page 57 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Scott Curtin, Public Works Director DATE: May 28, 2024 SUBJECT: Resolution 2024-20 Fee Schedule Changes The purpose of this memo is to request Council’s approval of modest cost increases within the City’s Water & Sewer sections of the Fee Schedule. The increases constitute an across the board 4% increase over last years rates. This is in alignment with the Water & Sewer Rate Study which is planned to be provided to Council at the June 19th meeting. The increases will allow the department to continue to effectively maintain the utility. While inflationary concerns continue to place pressure on the utility, our ability to successfully apply for and receive grants, continuation of reduced utility costs due to replacements of more efficient equipment, while finding new sources of revenue like the processing of leachate, are the primary reasons the increases proposed are not more significant. The Administration believes these increases are in the best interest of the City. Council’s approval is respectfully requested. Page 58 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Kathy Romain, Senior Center Director DATE: May 23, 2024 SUBJECT: Resolution 2024-20 Fee Schedule Changes This MEMO is in support of Resolution No. 2024-20, adjusting rental rates for Vintage Pointe Manor. Vintage Pointe Manor was originally designed as an independent senior housing facility, with rents intended to align with the current market value. In 2013, the City implemented a plan to gradually increase rents to market levels, allowing for annual increments of up to $35.00 per month until the market rate was achieved. Thereafter, rents would be adjusted annually based on changes in the Anchorage Consumer Price Index (CPI). New tenants would immediately be charged the market rate upon moving in. Significant increases in the CPI have rendered the $35.00 annual limit insufficient to keep pace with market rates. Last year, we informed the tenants of our intention to propose a $50.00 rent increase for FY2025. Despite this adjustment, most tenants will still be paying below market rates. Thank you for your consideration. Page 59 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member Askin DATE: May 28, 2024 SUBJECT: Fee changes at the Kenai Recreation Center The purpose of this Memo is to propose fee changes at the Kenai Rec Center to help reduce the amount currently supplemented by the City. Currently, the City supplements 80.57% of all the costs at the Kenai Rec Center, while the facility's revenue covers the other 19.53%. General Entry The Kenai Rec Center currently offers different rates for entry into the weight and cardio room and gymnasium. The proposed change would eliminate this discrepancy and charge the weight and cardio room fees for the use of the gymnasium. The purpose would be one fee to utilize the whole facility, excluding the racquetball and volleyball courts. Wallyball and Racquetball The racquet and volleyball courts are available to rent by the hour; the price varies depending on the activity. This change would make the fee the same for all activities and raise the rate to match the cost seen at other facilities. Gym Rentals Currently, the fee schedule allows youth athletic non-profits to rent the facility for free. Most of the free gym space is rented by the school district and Boys and Girls Club, and the rest is used by various youth nonprofits such as Kenai Peninsula Soccer Club. In FY24, 403 hours of free gym time were used, equal to 20,150 dollars of gym time. Supplement Change The changes would account for an estimated increase in revenue of $26,995.35 and a decrease in the city supplements to 66.97%. However, gym rentals could decrease since a fee would be established, so this estimate is based on whether the same amount of gym space is rented. Page 60 Page 2 of 3 Current Fee Schedule Appendix City of Kenai Schedule of Rates, Charges and Fees Fee Description Fee Amount PARKS AND RECREATION FEES Multipurpose Facility -hourly rate (reservation) $165.00 Kenai Recreation Center -Weights/Cardio/Sauna - includes weight/cardio room, shower, sauna, and gym. (must be 16 or older unless accompanied by a guardian) -Adults $5.00 -College Students $2.50 -High School Students and younger FREE -Veterans and Seniors (55 and older) $2.50 -Adult 10 visit punch card $40.00 -Adult Monthly Pass $50.00 -College Student, Veterans & Senior Monthly Pass $25.00 -Basketball/Pickleball - includes basketball gym and showers -Adults $3.00 -College Students $3.00 -High School Students and younger FREE -Adult & College Student Monthly Pass (All Ages) $25.00 -Gym Punch Card - 12 Visits (All ages) $25.00 -City League Basketball (per team) $325.00 -Racquetball & Wallyball Court Rentals - per hour and includes showers for participants. -Adult Racquetball $12.00 -Racquetball Punch Card (10 hours all) $80.00 -Adult Wallyball $12.00 - Wallyball Punch Card (10 hours) $100.00 -Facility Rental - per hour -Gym $50.00 -1/2 Gym $25.00 -Non-profit Youth Athletic Programs FREE Parks/Gazebos/Gardens -Picnic Shelter 8:00am - 3:00pm $20.00 4:00am - 11:00pm $20.00 -Gazebo 8:00am - 3:00pm $25.00 4:00am - 11:00pm $25.00 Page 61 Page 3 of 3 Appendix Proposed changes City of Kenai Schedule of Rates, Charges and Fees Fee Description Fee Amount PARKS AND RECREATION FEES Multipurpose Facility -hourly rate (reservation) $165.00 Kenai Recreation Center -Weights/Cardio/Sauna/Gymnasium—includes a weight/cardio room, shower, sauna, and gym. ( When using the weight room, must be 16 or older unless accompanied by a guardian) -Day Pass $5.00 - Day pass: College Student, Veterans & Senior $2.50 -High School Students and younger FREE - 10 visit punch cards -10 visit punch card: College Students, Veterans & Senior $40.00 $20.00 - Monthly Pass $50.00 - Monthly Pass: College Student, Veterans & Senior $25.00 -High School Students and younger FREE City League Basketball (per team) $325.00 -Racquetball & Wallyball Court Rentals - per hour and includes showers for participants. -Adult Racquetball/Adult Wallyball $15.00 - Wallyball Punch/Racquetball Card (10 hours) $120.00 -Facility Rental - per hour -Gym $50.00 -1/2 Gym $25.00 Parks/Gazebos/Gardens -Picnic Shelter 8:00am - 3:00pm $20.00 4:00am - 11:00pm $20.00 -Gazebo 8:00am - 3:00pm $25.00 4:00am - 11:00pm $25.00 Page 62 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-21 A RESOLUTION AUTHORIZING A BUDGET TRANSFER IN THE AIRFIELD FUND, AIRPORT DEPARTMENT FOR AMOUNTS IN EXCESS OF BUDGET. WHEREAS, the FY2024 Annual Budget for the City requires more funding for leave in the Airfield Fund due to retirement; and, WHEREAS, the Airport Operations Supervisor retired on May 30, 2024; and, WHEREAS, the Airport has adequate funding for airfield operating supplies through the end of June; and, WHEREAS, the additional funds of $28,000 are needed to pay for accumulated leave. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to reallocate the existing airport funds as detailed below. Airport Fund: Decrease Expenditures: Airfield Operating Supplies $28,000 Increase Expenditures: Airfield Leave $28,000 Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 63 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 26, 2024 SUBJECT: Resolution No. 2024-21 – Authorizing a Budget Transfer in the Airfield Fund, Airport Department. The Airport is requesting to transfer $28,000 from the Airfield Operating Supplies fund to the Airfield Leave fund. Over the last year there have been personnel changes that left some uncertainty on the retirement date of the Airport Operations Supervisor. All of the positions have been filled and the Airport Operations Supervisor decided on a date that would leave the Airport in a good place moving forward. This date was 5/30/24. This meant that accumulated leave falls in FY24. The Airport has worked diligently to adequately budget the Airfield Fund overall. This transfer will allow the Airport to have funding in the Airfield leave and Airfield Operating Supplies funds through the end of FY24. Your support for a budget transfer is respectfully requested. Thank you for your consideration. Page 64 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-22 A RESOLUTION AUTHORIZING A BUDGET TRANSFER IN THE AIRPORT TERMINAL IMPROVEMENTS CAPITAL FUND, AND AWARDING A CONSTRUCTION CONTRACT AND CORRESPONDING PURCHASE ORDER FOR THE AIRPORT LANDSCAPING PROJECT. WHEREAS, the City formally released the Kenai Municipal Airport Landscape project on April 30th, 2024 with bids due on May 21st, 2024; and, WHEREAS, one bid was received by Moore’s Landscaping, LLC in the total amount of $94,733; and, WHEREAS, additional funding in the amount of $25,000 will be required to fully fund the project, provide a small contingency and provide admin service in support of the project; and, WHEREAS, this Resolution transfers $25,000 from the Surveillance Camera and Access Controls Project as currently funded within the Terminal Improvements Capital Fund to the Airport Landscaping Project; and, WHEREAS, the Airport Landscaping Project will include installation of trees, shrubs, perennials, boulders, etc. in accordance with the Landscape Design completed by Earthscape this past year; and, WHEREAS, authorization of this transfer and contract award will allow this work to be completed this summer and is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to reallocate the existing capital project funds as detailed below: Airport Terminal Improvements Capital Fund: Decrease Expenditures: Surveillance Camera & Access Controls Project $25,000 Increase Expenditures: Airport Terminal Landscaping Project $25,000 Section 2. That the City Manager is authorized to execute a contract with Moore’s Landscaping in the amount of $94,733 for the Airport Landscaping Project and to issue a corresponding purchase order in that same amount, with the remaining funds available for contingency and administrative support. Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: Page 65 Resolution No. 2024-22 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 66 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Scott Curtin, Public Works Director DATE: May 28, 2024 SUBJECT: Resolution 2024-22 The Airport Terminal Landscaping project has been moving forward within the City’s Capital Improvement Plan. Earthscape completed the design this past year in coordination with Airport and Public Works staff with support from the Airport Commission. With the summer season upon us now is the time to complete this work. Bids came in higher than anticipated, however with the limited number of available contractors in the area coupled with the size of some of the elements within the design, the costs are reasonable. Funding for the project will require a budget transfer from the Surveillance Camera and Access Controls project. That project will move forward at a later date as staff time allows for further development of the projects overall scope of work. Completion of this work now will conclude overall terminal improvements dating back to 2018 totaling over $14,000,000 in value. Council’s support is respectfully requested. Page 67 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-23 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE OF AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND D & M LAND COMPANY, LIMITED LIABILITY CORPORATION FOR LOT 9A, BLOCK 5, GENERAL AVIATION APRON SUBDIVISION NO. 5. WHEREAS, on April 5, 2024, D & M Land Company, LLC (“D & M Land”) submitted an application to lease a City-owned property within the Airport Reserve, described as Lot 9A, Block 5, of General Aviation Apron Subdivision No. 5; and, WHEREAS, D & M Land intends to use the premises for an airplane hangar to support a local airline, such as Kenai Aviation, with an estimated investment value of $1,000,000 that allows for the maximum lease term of 45 years in accordance with the Kenai Municipal Code (KMC) 21.10.050(b) [Lease] Term Table; and, WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai Municipal Code for Titles 14 and 21, Kenai Comprehensive Plan, Airport Land Use Plan, Airport Master Plan, Federal Aviation Administration (FAA) regulations applicable to the airport, airport improvement projects, airport sponsor grant assurances to the FAA, and airport regulations and operations; and, WHEREAS, the City did not receive any competing lease applications within 30 days of publishing noticing as required in KMC 21.10.060(c) Lease Application Review; and, WHEREAS, pursuant to KMC 21.10.070(a) the applicant has provided evidence of financial resources to complete the proposed project; and, WHEREAS, at their regular meeting on May 8, 2024, the Planning and Zoning Commission recommended approval to the City Council on the consent agenda; and, WHEREAS, at their regular meeting on May 9, 2024, the Airport Commission reviewed the lease application and recommended approval to City Council; and, WHEREAS, it is in the best interest of the City to enter into a lease agreement with D & M Land for the development of the subject property to promote the growth and development of the Kenai Municipal Airport. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease between the City of Kenai and D & M Land Company, LLC for the property described as Lot 9A, Block 5, of General Aviation Apron Subdivision No. 5, as follows: 1. The construction of an airplane hangar with an estimated value of improvement of $1,000,000 will be completed within three (3) years of lease execution, unless City Council has approved a time extension. 2. The written documentation must be submitted to the City within 30 days of the completion of the permanent improvements. Page 68 Resolution No. 2024-23 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] 3. The lease term will be 45 years. 4. Prevent unauthorized access to the airfield during and after site improvements. 5. Structures are prohibited to encroach into the 100-foot building restriction line. 6. Lessee is responsible for all snow removal, and snow may not touch the perimeter security fence or be piled to a height that would allow access to the airport. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 69 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Linda Mitchell, Planning Director FROM: Brandon McElrea, Planning Technician DATE: May 30, 2024 SUBJECT: Resolution No. 2024-23 – Approving the Execution of a Lease of Airport Reserve Lands for the Property Described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5 D & M Land Company, LLC (“D & M Land”) submitted a land lease application of an Airport Reserve Land for the property described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5, located at 155 N. Willow Street (KPB Parcel No. 04324026). The applicant is requesting a term of 45 years and proposing an investment amount of approximately $1,000,000 to erect an airplane hangar. Pursuant to Kenai Municipal Code (KMC) 21.10.080(b) [Lease] Term Table, the maximum term for the proposed investment value is 45 years. The 30-day notice of competitive land lease application expired on May 10, 2024. The City did not receive any competing lease applications for the subject property. Pursuant to KMC 21.10.070(a) the applicant has provided evidence of the financial resources to complete the proposed project. In the FY2024 Fee Schedule, the annual lease rate for the subject property is $15,536.08. Please note that the fee schedule referenced the subdivision plat as no. 6, when it should be no. 5; however, the parcel identification number and general legal description are correct. In the Land Management Plan, the subject property has a retention status of lease only. It is one of the few remaining vacant lots within the Airport Reserve with frontage on North Willow Street and taxiway access. The applicant intends to use the premises for an airplane hangar to support a local airline, such as Kenai Aviation. D & M Land does not currently hold any leases with the City. However, Mike Schilling, a member of the D & M Land is also the single-member of Schilling Rentals, LLC (“Schilling”), which Schilling is in compliance with the terms and conditions of their leases. The subject property is approximately 1.07 acres and located within the Airport Light Industrial (ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city Page 70 Page 2 of 2 hazards that may endanger the lives and property of the public and aviation users. The proposed use of an aircraft hangar is a permitted use in the ALI Zone and is an airport compatible use. A new hangar with the intent to support a local airline will further promote the viability of the Kenai Municipal Airport. Furthermore, the proposed use is consistent with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal 5- Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai Peninsula. The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for local economic development. The proposed use by D & M Land complies with the Airport Land Use Plan. The Planning and Zoning Commission recommended approval of the lease application at their May 8, 2024 regular meeting. The Airport Commission recommended approval of the lease at their May 9, 2024 regular meeting. Resolution No. 2024-23 would authorize the City Manager to execute a lease of city-owned property within the Airport Reserve between the City of Kenai and D & M Land Company, LLC for the property described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5. Thank you for your consideration. Attachments Aerial Map Application The City of Kenai I www.kenai.city Page 71 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-24 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE OF AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND SCHILLING RENTALS, LIMITED LIABILITY CORPORATION FOR LOT 5A, BLOCK 1, FBO SUBDIVISION 2018 REPLAT. WHEREAS, on May 1, 2024, Schilling Rentals, LLC (“Schilling”) submitted an application to lease a City- owned property within the Airport Reserve, described as Lot 5A, Block 1, FBO Subdivision 2018 Replat; and, WHEREAS, Schilling intends to use the premises for an airplane hangar to support a local airline, such as Kenai Aviation, with an estimated investment value of $1,000,000 that allows for the maximum lease term of 45 years in accordance with the Kenai Municipal Code (KMC) 21.10.050(b) [Lease] Term Table; and, WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai Municipal Code for Titles 14 and 21, Kenai Comprehensive Plan, Airport Land Use Plan, Airport Master Plan, Federal Aviation Administration (FAA) regulations applicable to the airport, airport improvement projects, airport sponsor grant assurances to the FAA, and airport regulations and operations; and, WHEREAS, the City did not receive any competing lease applications within 30 days of publishing noticing as required in KMC 21.10.060(c) Lease Application Review; and, WHEREAS, pursuant to KMC 21.10.070(a) the applicant has provided evidence of financial resources to complete the proposed project; and, WHEREAS, at their regular meeting on May 8, 2024, the Planning and Zoning Commission recommended approval to the City Council on the consent agenda; and, WHEREAS, at their regular meeting on May 9, 2024, the Airport Commission reviewed the lease application and recommended approval to City Council; and, WHEREAS, it is in the best interest of the City to enter into a lease agreement with Schilling for the development of the subject property to promote the growth and development of the Kenai Municipal Airport. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease between the City of Kenai and Schilling Rentals, LLC for the property described as Lot 5A, Block 1, FBO Subdivision 2018 Replat, as follows: 1. The construction of an airplane hangar with an estimated value of improvement of $1,000,000 will be completed within three (3) years of lease execution, unless City Council has approved a time extension. 2. The written documentation must be submitted to the City within 30 days of the completion of the permanent improvements. Page 75 Resolution No. 2024-24 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] 3. The lease term will be 45 years. 4. Prevent unauthorized access to the airfield during and after site improvements. 5. Structures are prohibited to encroach into the 100-foot building restriction line. 6. Lessee is responsible for all snow removal, and snow may not touch the perimeter security fence or be piled to a height that would allow access to the airport. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 76 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Linda Mitchell, Planning Director DATE: May 31, 2024 SUBJECT: Resolution No. 2024-24 – Approving the Execution of a Lease of Airport Reserve Lands for the Property Described as Lot 5A, Block 1, FBO Subdivision 2018 Replat Schilling Rentals, LLC (“Schilling”) submitted a land lease application of Airport Reserve Land for the property described as Lot 5A, Block 1, FBO Subdivision 2018 Replat, located at 413 N. Willow Street (KPB Parcel No. 04336049). The applicant is requesting a term of 45 years and proposing an investment amount of approximately $1,000,000 to erect an airplane hangar. Pursuant to Kenai Municipal Code (KMC) 21.10.080(b) [Lease] Term Table, the maximum term for the proposed investment value is 45 years. The 30-day notice of competitive land lease application expired on June 3, 2024. The City did not receive any competing lease applications for the subject property. Pursuant to KMC 21.10.070(a) the applicant has provided evidence of the financial resources to complete the proposed project. The subject property was under a lease; therefore, it was not listed in the FY2024 Fee Schedule. Pursuant to KMC 21.10.090 Principles and Policy of Lease Rates, the annual rent is computed by multiplying the fair market value of the land based on the latest appraisal by the lease rate percentage and adjusted annually by the Consumer Price Index (CPI). The last appraisal was conducted in 2020 with a fair market value of $185,000 and the lease rate percentage is eight percent (8%). The annual lease rate in 2020 (i.e., FY 2021) would be $14,800 and adjusted annually by CPI to FY2025 would result in an annual lease rate of $16,852.09. In the Land Management Plan, the subject property has a retention status of lease only. It is a cleared and level lot with frontage on North Willow Street and the airport runway. The applicant intends to use the premises for an airplane hangar to support a local airline, such as Kenai Aviation. Schilling is in compliance with the terms and conditions of their leases. The subject property is approximately 1.80 acres and located within the Airport Light Industrial (ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed use of an aircraft hangar is a permitted use in the ALI Zone and is an airport compatible use. A new hangar with the intent to support a local airline will further promote the viability of the Kenai City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city Page 77 Page 2 of 2 Municipal Airport. Furthermore, the proposed use is consistent with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal 5- Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai Peninsula. The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for local economic development. The proposed use by Schilling complies with the Airport Land Use Plan. The Planning and Zoning Commission recommended approval of the lease application at their May 8, 2024 regular meeting. The Airport Commission recommended approval of the lease at their May 9, 2024 regular meeting. Resolution No. 2024-24 would authorize the City Manager to execute a lease of city-owned property within Airport Reserve between the City of Kenai and Schilling Rentals, LLC for the property described as Lot 5A, Block 1, FBO Subdivision 2018 Replat. Thank you for your consideration. Attachments Aerial Map Application The City of Kenai I www.kenai.city Page 78 KENAI CITY COUNCIL – REGULAR MEETING MAY 15 , 2024 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING City of Kenai Council Meeting Page 1 of 10 May 15, 2024 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on May 15, 2024, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Henry Knackstedt, Vice Mayor Phil Daniel Deborah Sounart Alex Douthit Victoria Askin A quorum was present. Absent: James Baisden Also in attendance were: **Xinlan Tanner, Student Representative Terry Eubank, City Manager Scott Bloom, City Attorney David Swarner, Finance Director Linda Mitchell, Planning Director Stephanie Randall, Human Resource Director Tyler Best, Parks and Recreation Director Scott Curtin, Public Works Director Derek Ables, Airport Manager Dave Ross, Police Chief Shellie Saner, City Clerk 3. Agenda Approval Mayor Gabriel noted the following additions to the Packet: Add to item E. 5. Public Hearing – Ordinance No. 3416-2024 • Beautification Committee Recommendation Amendment • Council on Aging Requested Amendment Add to item E. 7. Public Hearing – Ordinance No. 3417-2024 • Public Comment Add item P. 1. Informational Items • Peninsula Oilers funding Request Letter • KPB Comprehensive Safety Action Plan Virtual Public Workshop Page 82 City of Kenai Council Meeting Page 2 of 10 May 15, 2024 MOTION: Vice Mayor Knackstedt MOVED to approve the agenda and consent agenda with the requested revisions. Council Member Sounart SECONDED the motion. The items on the Consent Agenda were read into the record. Mayor Gabriel opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS - None. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. PUBLIC HEARINGS 1. Ordinance No. 3412-2024 - Accepting and Appropriating Grant Funds from the Alaska High Intensity Drug Trafficking Area for Drug Investigation Overtime Expenditures. (Administration) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3412-2024. Council Member Askin SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. VOTE: YEA: Askin, Douthit, Sounart, Knackstedt, Daniel, Gabriel NAY: None ABSENT: Baisden **Student Representative Tanner: Yea MOTION PASSED. 2. Ordinance No. 3413-2024 - Increasing Estimated Revenues and Appropriations in the General Fund - Police Department and Accepting a Grant from the US Department of Transportation Passed through the State of Alaska Department of Transportation and Public Facilities for Traffic Enforcement Overtime Expenditures. (Administration) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3413-2024. Council Member Sounart SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. Clarification was provided on the grant application process and ongoing funding requests. Page 83 City of Kenai Council Meeting Page 3 of 10 May 15, 2024 VOTE: YEA: Douthit, Sounart, Knackstedt, Daniel, Gabriel, Askin NAY: None ABSENT: Baisden **Student Representative Tanner: Yea MOTION PASSED. 3. Ordinance No. 3414-2024 - Repealing Kenai Municipal Code Sections 13.10.010(a)(2) - Miscellaneous Offenses, 13.10.020 - Loitering and Sleeping on the Streets, Schools, and 13.10.030 - Curfew, to Remove Certain City Prohibitions Regarding Begging, Loitering and Sleeping, and Curfews in the City that are Not Enforceable as Specifically Written in Code. (Administration) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3414-2024. Council Member Askin SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. It was reported that the provisions in code are broad and as currently written not enforceable; begging or asking for help is no longer speech that can be prohibited on its own; sleeping in public is different than camping other provisions of code addressed camping in undesignated areas; enactment of this ordinance would not limit the Police Departments ability to enforce State Laws and address illegal conduct. There was discussion regarding putting something in place regarding curfews. VOTE: YEA: Sounart, Knackstedt, Daniel, Gabriel, Askin, Douthit NAY: None ABSENT: Baisden **Student Representative Tanner: Yea MOTION PASSED. 4. Ordinance No. 3415-2024 - Authorizing a Donation of Surplus Sand from the Kenai Municipal Airport to the Triumvirate Theatre for the Construction of a New Theatre. (Administration) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3415-2024. Council Member Sounart SECONDED the motion. Mayor Gabriel opened the floor for public comment. Joe Rizzo, Triumvirate Theatre President addressed the Council, thanking them for supporting the rebuild; the land donation; and noted that the sand donation value was roughly the same amount as lobby furniture. There being no one else wishing to be heard, the public comment period was closed. MOTION TO AMEND: Vice Mayor Knackstedt MOVED to amend Ordinance 3415-2024 as follows: Tenth whereas clause to read, “At its meeting on May 9, 2024 the City of Kenai Airport Commission recommended enactment of this Ordinance; and,” Council Member Sounart SECONDED the motion to amend. UNANIMOUS CONSENT was requested on the motion to amend. Page 84 City of Kenai Council Meeting Page 4 of 10 May 15, 2024 VOTE: Motion APPROVED, without objection. VOTE ON MAIN MOTION AS AMENDED: YEA: Sounart, Knackstedt, Daniel, Gabriel, Askin, Douthit NAY: None ABSENT: Baisden **Student Representative Tanner: Yea MAIN MOTION AS AMENDED PASSED. 5. Ordinance No. 3416-2024 - Repealing, Reenacting and Renaming Kenai Municipal Code Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees, Enacting Chapter 1.95 - Standing Advisory Commissions, Repealing Chapters 11.10 - Harbor Commission, Chapter 19.05 Parks and Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section 14.05.050 - Planning And Zoning Commission - Qualifications and Membership, and Approving Amendments to The Council on Aging Commission’s By-Laws to Organize Streamline, and Improve the Efficiency of the City’s Standing Commissions. (City Clerk) • Ordinance No. 3416-2024 Substitute - Repealing, Reenacting and Renaming Kenai Municipal Code Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees, Enacting Chapter 1.95 - Standing Advisory Commissions, Repealing Chapters 11.10 - Harbor Commission, Chapter 19.05 Parks and Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section 14.05.050 - Planning and Zoning Commission - Qualifications and Membership, and Approving Amendments to the Council on Aging Commission’s By-Laws to Organize Streamline, and Improve the Efficiency of the City’s Standing Commissions. (City Clerk) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3416-2024. Council Member Askin SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. MOTION TO AMEND BY SUBSTITUTE: Vice Mayor Knackstedt MOVED to amend Ordinance No. 3416-2024 by Substitute Ordinance No. 3416- 2024. Council Member Askin SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend by substitute. VOTE: Motion APPROVED, without objection. MOTION TO AMEND: Vice Mayor Knackstedt MOVED to amend Substitute Ordinance 3416-2024 as follows: Eleventh whereas clause to read, “the Beautification Committee at their May 14, 2024, regular meeting recommended that the City Council enact this Ordinance; and”,” Council Member Askin SECONDED the motion to amend. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: Motion APPROVED, without objection. MOTION TO AMEND: Vice Mayor Knackstedt MOVED to amend Substitute Ordinance 3416-2024 as follows: Section 2, Chapter 1.95 - Standing Advisory Commissions, Section 1.95.030 - Council on Aging Commission, paragraph (b)(1)(ii) to read, “Development and use of Senior Center or other facilities owned or managed by the City for the provision of services for senior citizens, [EXCLUDING VINTAGE POINTE-INDEPENDENT SENIOR HOUSING].” Page 85 City of Kenai Council Meeting Page 5 of 10 May 15, 2024 Council Member Askin SECONDED the motion to amend. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: Motion APPROVED, without objection. A summary timeline of the Board, Commission and Committee review process authorized by Council was provided. VOTE ON MAIN MOTION AS AMENDED: YEA: Daniel, Gabriel, Askin, Douthit, Sounart, Knackstedt NAY: None ABSENT: Baisden **Student Representative Tanner: Yea MAIN MOTION AS AMENDED PASSED. 6. Ordinance No. 3417-2024 - Increasing Estimated Revenues and Appropriations by $12,600 in the General Fund for the Purchase of Approximately 7.8 Acres of Real Property Described as Tract B, Kenai Bluff Stabilization Subdivision from David W. Salter to be Retained by the City for a Public Purpose and Determining that the Public Interest will not be Served by an Appraisal. (Administration) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3417-2024. Council Member Sounart SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. It was reported that the parcel could be utilized for expansion of the Wastewater Treatment Plant in the future; would provide protection of drainages and wetlands; a provision of this would establish easement access for property owners to access areas where they were providing bluff stabilization for their own properties; and that the City would not be served by having an appraisal done. MOTION TO AMEND: Vice Mayor Knackstedt MOVED to amend Ordinance 3417-2024 as follows: Eight whereas clause to read, “at its meeting on May 6, 2024 the Harbor Commission recommended enactment of this Ordinance; and” Council Member Sounart SECONDED the motion to amend. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: Motion APPROVED, without objection. VOTE ON MAIN MOTION AS AMENDED: YEA: Gabriel, Askin, Douthit, Sounart, Knackstedt, Daniel NAY: None ABSENT: Baisden **Student Representative Tanner: Yea MAIN MOTION AS AMENDED PASSED. 7. Resolution No. 2024-16 - Authorizing a Budget Transfer within the Water and Sewer Capital Project Fund for Lift Station Renovation Projects. (Administration) MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2024-16. Council Member Askin SECONDED the motion. Page 86 City of Kenai Council Meeting Page 6 of 10 May 15, 2024 Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. It was reported that the City has nineteen lift stations, many over 50-years old; this project will update the lift stations with more efficient and reliable equipment; and the City would retain the old equipment to use as spare parts for the older stations until they can be upgraded. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objection. 8. Resolution No. 2024-17 - Renaming Cook Inlet View Drive to Cook Inlet Drive. (Sounart) MOTION: Council Member Sounart MOVED to adopt Resolution No. 2024-17. Council Member Askin SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. MOTION TO REFER AND POSTPONE: Council Member Sounart MOVED to refer Resolution No. 2024-17 to the Planning and Zoning Commission’s May 29, 2024 regular meeting for recommendation to Council and to postpone Resolution No. 2024-17 to the June 5, 2024 regular City Council meeting. Council Member Askin SECONDED the motion to refer and postpone. UNANIMOUS CONSENT was requested on the motion to refer and postpone. VOTE: Motion APPROVED, without objection. 9. Resolution No. 2024-18 - Accepting an Airport Improvement Program Grant from the Federal Aviation Administration for an Eco-Cart. (Administration) MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2024-18. Council Member Askin SECONDED the motion. Mayor Gabriel opened the floor for public comment. There being no one wishing to be heard, the public comment period was closed. It was reported that an Eco-Cart allows for accurate testing of the AFFF used in the ARFF trucks; ensures that the ARFF trucks are operational and ready to respond to emergencies; and minimizes waste during testing. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED; without objection. F. MINUTES 1. *Regular Meeting of May 1, 2024. (City Clerk) G. UNFINISHED BUSINESS - None. H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. Page 87 City of Kenai Council Meeting Page 7 of 10 May 15, 2024 2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) Approved by the consent agenda. 3. *Action/Approval - Second Extension to the Agreement with Redline Sports for Management Services at the Kenai Multi-Purpose Facility. (Administration) Approved by the consent agenda. 4. *Ordinance No. 3418-2023 - Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year Commencing July 1, 2024 and Ending June 30, 2025 and Committing $4,499,039 of General Fund, Fund Balance for Future Capital Improvements. (Administration) Introduced by the consent agenda and Public Hearing set for June 5, 2024. 5. *Ordinance No. 3419-2023 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.070 - Acting Positions, 23.30.030 - Probationary Period for Employees in the Classified Service, 23.30.110 – Travel Expense, 23.40.040 - Terminal Leave, 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, 23.55.030 - Qualification Pay, and 23.55.080 - Longevity Pay for Employees in the Classified Service, to Ensure Appropriate Compensation and Benefits to City Employees Comparable to Other Places of Public Employment Improving Recruitment and Retention of Qualified Employees. (Administration) Introduced by the consent agenda and Public Hearing set for June 5, 2024. 6. *Ordinance No. 3420-2023 - Increasing Estimated Revenues and Appropriations in the General Fund and Municipal Roadway Improvements Capital Fund and Awarding a Construction Agreement and Corresponding Purchase Order for the 2024 Lilac Lane Roadway Improvement Project. (Administration) Introduced by the consent agenda and Public Hearing set for June 5, 2024. 7. Action/Approval - Council on Aging 2024 Work Plan. (City Clerk) MOTION: Vice Mayor Knackstedt MOVED approve the Council on Aging 2024 Work Plan. Council Member Askin SECONDED the motion. Council on Aging, Vice Chair Craig provided a summary and overview of the Council on Aging, 2024 Work Plan Objectives. UNANIMOUS CONSENT was requested on the motion. VOTE: Motion APPROVED, without objection. 8. Action/Approval - Parks and Recreation Commission 2024 Work Plan. (City Clerk) MOTION: Vice Mayor Knackstedt MOVED to approve the Parks and Recreation Commission 2024 Work Plan. Council Member Askin SECONDED the motion. Council discussion noted concerns with Objective No. 2 directing staff. MOTION TO DIVIDE THE QUESTION: Vice Mayor Knackstedt MOVED to Divide the Question to vote and discuss Parks & Recreation Commission Work Plan, Objective No. 2 separate from Objectives 1, 3 & 4. Council Member Askin SECONDED the motion to Divide the Question. Page 88 City of Kenai Council Meeting Page 8 of 10 May 15, 2024 UNANIMOUS CONSENT was requested on the motion to divide the question. VOTE: Motion APPROVED, without objection. It was reported that Objective No. 2 would require staff to keep a log of comments and report the information gathered to the Commission. There was discussion that Advisory Commissions roles did not include administrative direction to Staff. VOTE ON PARKS AND RECREATION COMMISSION 2024 WORK PLAN, OBJECTIVE NO. 2: YEA: None NAY: Askin, Douthit, Sounart, Knackstedt, Daniel, Gabriel ABSENT: Baisden **Student Representative Tanner: Nay MOTION FAILED TO APPROVE. UNANIMOUS CONSENT was requested on Parks and Recreation Commission Work Plan Objective No’s 1, 3 & 4. VOTE: Motion APPROVED, without objection. I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging No report, next meeting June 13, 2024. 2. Airport Commission Council Member Sounart reported on the May 9, 2024 meeting, next meeting June 13, 2024. 3. Harbor Commission Council Member Askin reported on the May 6, 2024 meeting, next meeting June 10, 2024. 4. Parks and Recreation Commission Council Member Douthit reported on the May 2, 2024 meeting, next meeting June 6, 2024. 5. Planning and Zoning Commission Council Member Douthit reported on the May 8, 2024 meeting, next meeting May 29, 2024. 6. Beautification Committee Council Member Daniel reported on the May 14, 2024 meeting, next meeting September 10, 2024. J. REPORT OF THE MAYOR Mayor Gabriel reminded everyone about the upcoming Memorial Day Ceremonies. K. ADMINISTRATION REPORTS 1. City Manager – City Manager Eubank reported on the following: • Slash Site opening on May 16, 2024. • Conducing interviews for Fire Chief. • Upcoming retirement party for Airport Operations Supervisor Jim Lackey. • Recruitment for summer positions still ongoing. • Storefront & Streetscape Improvement applications period closes on May 17, 2024. • Meeting with the City’s Health Insurance Broker. • Meeting with the City’s Marketing Firm. Page 89 City of Kenai Council Meeting Page 9 of 10 May 15, 2024 • KPB comprehensive Safety Action Plan meetings and public comment opportunities. • Working with KPB regarding Federal Funding for Beetle Kill mitigation. • Invitation from Kenaitze for the Cultural Heritage Interpreter Site in Cooper Landing Re-Grand Opening on June 7, which possibly conflicts with the ribbon cutting ceremony for the Bluff Stabilization Project. • Airline Leakage Study tentatively scheduled for presentation at the June 19, 2024 City Council Meeting. • An overtime rate calculation error was identified, working with the City Finance Director and Attorney. • Please work with the Finance Director on proposed amendments to the budget, to ensure things go smoothly during the budget hearing. • On May 9, 2024 the Senate Finance Committee added to HB 347 a provision that would increase the mandatory Senior Citizen, Disabled Veteran tax exemption on real property to $450,000; currently it is $150,000. 2. City Attorney - No report. 3. City Clerk - No report. L. ADDITIONAL PUBLIC COMMENTS 1. Citizen Comments (Public comments limited to (5) minutes per speaker) 2. Council Comments Council Member Douthit noted that at the recent KPB land sale auction, some properties auctioned at double their assessed amount, indication current land values; and that while cleaning out the Moose Meat John Cabin a letter written by Mayor Gabriel when he was younger was found. Student Representative Tanner reported that May 16, 2024 would be the last day of school this year for Kenai Alternative High School and Kenai Central High School; and provided an update on sports activities. Council Member Sounart noted she was looking forward to the Bluff Stabilization Project, ribbon cutting ceremony. Vice Mayor Knackstedt thanked Council Member Sounart for covering the Airport Commission meeting for him; and encouraged Council Members to work with the Administration and pre-plan proposed budget amendments. M. EXECUTIVE SESSION - None. N. PENDING ITEMS O. ADJOURNMENT P. INFORMATIONAL ITEMS 1. Bishops Attic Donation Letter There being no further business before the Council, the meeting was adjourned at 7:43 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of May 15, 2024. Page 90 City of Kenai Council Meeting Page 10 of 10 May 15, 2024 ___________________________________ Michelle M. Saner, MMC City Clerk ** The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. Page 91 Sponsored by: Sounart New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2024-17 A RESOLUTION RENAMING COOK INLET VIEW DRIVE TO COOK INLET DRIVE. WHEREAS, Kenai Municipal Code Section 14.15.140 authorizes City Council to name and rename an existing street or newly established street within City limits upon recommendation from the Planning and Zoning Commission and after consultation with the Kenai Peninsula Borough (KPB) or any other affected municipality; and, WHEREAS, there has been an increase in complaints over the years that the existing street name, Cook Inlet View Drive, suggests the road has a scenic view, which has resulted in visitors, tourists, motorhomes, and tour buses/vans driving through the residential neighborhood and on the unimproved dead-end street that leads to the edge of the bluff; and, WHEREAS, the removal of “view” from Cook Inlet View Drive would deter visitors, tourists, motorhomes, and tour buses/vans from driving through the residential neighborhood and lingering at the edge of the bluff; and, WHEREAS, the KPB Planning Department has no objection to renaming Cook Inlet View Drive to Cook Inlet Drive; and, WHEREAS, adjacent property owners have __________ to changing the street name to Cook Inlet Drive; and, WHEREAS, the street name assignment would not adversely impact 911 navigation; and, WHEREAS, the Planning and Zoning Commission during their May 22, 2024 regular meeting recommended Council ___________ this resolution renaming Cook Inlet View Drive to Cook Inlet Drive; and, WHEREAS, it is in the best interest of the City of Kenai to rename the street to protect the residential neighborhood from increased tourist traffic and activities. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That Cook Inlet View Drive in the City of Kenai is renamed as Cook Inlet Drive. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 92 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Deborah Sounart, Council Member DATE: May 9, 2024 SUBJECT: Resolution No. 2024-17 – Street Renaming of Cook Inlet View Drive to Cook Inlet Drive This resolution seeks to change the street name of Cook Inlet View Drive to Cook Inlet Drive. There has been an increase in complaints over the years that the existing street name, Cook Inlet View Drive, suggests the road has a scenic view, which has resulted in visitors, tourists, motorhomes, and tour buses/vans driving through the residential neighborhood and on the unimproved dead-end street, known as 1st NW that leads to the edge of the bluff. The removal of “view” from Cook Inlet View Drive would these deter visitors and tourists from driving down through the residential neighborhood on an already busy street and lingering at the edge of the dangerously eroding bluff. Pursuant to Kenai Municipal Code Section 14.15.140, City Council may change, rename, or name an existing street or newly established street within City limits upon recommendation from the Planning and Zoning Commission and after consultation with the Kenai Peninsula Borough (KPB) or any other affected municipality. This resolution will be referred to Planning and Zoning Commission for their recommendation at their regularly scheduled meeting on May 22, 2024. With staff’s recommendations, all property owners along Cook Inlet View Drive will be notified of the proposed street renaming and the scheduled public meetings to provide several opportunities for submissions of comments. In addition, staff will request for comments from the Public Works Department, Police Department, Fire Department, and local United States Post Office. Thank you for your consideration. Attachment Aerial Map Page 93 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Linda Mitchell, Planning Director DATE: May 30, 2024 SUBJECT: Resolution 2024-17 Requested Amendment This memo requests an amendment to fill in the blanks and amend the date of the Planning and Zoning Commission meeting date within the Resolution. The regularly scheduled Planning and Zoning Commission meeting of May 22, 2024 was postponed to May 29, 2024. At the regularly scheduled Planning and Zoning Commission meeting of May 29, 2024, the Commission voted to recommend that City Council approve Resolution 2024-17 for the street renaming of Cook Inlet View Drive to Cook Inlet Drive. The following amendments are respectfully requested. Motion Thank you for your consideration. Amend the fifth (5th) whereas clause by inserting the adjacent property owners’ comments on the Resolution, to read:  “WHEREAS, adjacent property owners have provided written support to changing the street name to Cook Inlet Drive; and,” Amend the seventh (7th) whereas clause by inserting the recommendation of the Planning and Zoning Commission, to read:  “WHEREAS, the Planning and Zoning Commission during their May [22]29, 2024 regular meeting recommended Council approve this resolution renaming Cook Inlet View Drive to Cook Inlet Drive; and,” Page 95 1 Linda Mitchell From:Valerie Williams <vaheath@hotmail.com> Sent:Thursday, May 23, 2024 2:30 PM To:Planning Department Subject:Cook Inlet view drive to Cook Inlet drive comment CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. I live on wells way, at the end of Cook Inlet view drive. I have so appreciated the concrete barriers and signs placed at the end of Cook Inlet view drive. It has made a big difference! We still have people going down the bluff with ropes, but it has cut it down dramatically. It has also seemed to stop the parties that used to be common place. I believe that changing the name of the road will also help keep people from thinking this is a viewpoint. Changing the big green road signs on the spur leaving out the word “view” would make a big difference. Another thing that would help is having a sign beyond the concrete barriers that just says “keep off the bluff”, or maybe something about no trespassing, erosion control in process. Many people climb down the bluff on ropes not only causing erosion to city property and my property but it is dangerous and a safety hazard that could cause a serious injury. Thank you so much for everything you have done about this issue. It has been appreciated. Valerie and Wister Williams 1105 Wells Way Page 96 1 Linda Mitchell From:Timothy Cole <timberprints@gmail.com> Sent:Monday, May 27, 2024 3:08 PM To:Planning Department Subject:Resolution 2024-17 Testimony, Timothy Cole CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Dear Kenai Planning and Zoning Commission, I'm writing to you to offer testimony concerning Resolution 2024-17 concerning the change of the street name from Cook Inlet View Drive to Cook Inlet Drive; omitting the word view. I am in favor of this resolution. I live and own property on this street and I feel that the word "view" when left in the street name invites unnecessary traffic into our neighborhood. I feel this is most evident in the summertime when many large RVs enter the neighborhood and drive to the end of the road expecting a traditional viewpoint with an established parking area, etc. Instead they find themselves at the end of a road intersecting with the dead-end street Wells Way and with limited room to turn their often rented RV around. They rarely park the RVs and get out to enjoy the view but rather they too must feel this is not a viewpoint and that they are congesting a neighborhood. This neighborhood does have children at play present in all seasons and I feel that changing the name and signage of the street to Cook Inlet Drive will decrease the amount of traffic experienced in the neighborhood and will improve safety for our residents, especially the children. Additionally, it's one less word to fit on all the paperwork where we list our address. I kindly thank you for considering my comments on this resolution. Sincerely, Timothy Cole Kenai Resident 2907 Cook Inlet View Drive Page 97 1 Linda Mitchell From:Roxanne Colyer <roxanne@colyerart.com> Sent:Tuesday, May 28, 2024 5:48 PM To:Planning Department Subject:RE: Proposed Resolution 2024-17 CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. I fully support and encourage the proposed name change of Cook Inlet [View] Drive to Cook Inlet Drive. Why? 1) The name change will not interfere to any extent with existing mail addresses. 2) Removing the word “View” from the street name will hopefully discourage a percentage of speeding tourists/dip netters who assume beach access and have little to no respect for the children who feel safe enough to play in their neighborhood or respect the surrounding personal properties. 3) The word “view” implies a point of access where no safe or legal access exists. The Jersey barriers are already breached by four wheelers. The bluff continues to erode as the site is used by persons seeking beach access (DOT??? employees staying at the B&B were the latest.) 4) The local Police force and Fish and Game capacities are stretched in June and July. Posting a large, visible “No Beach Access” sign on the Spur and removing “view” from the street signs may reduce the number of incidents and take some of the pressure off local authorities. If you have questions please contact me. roxanne@colyerart.com Page 98 PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: JUNE 5, 2024 VENDOR DESCRIPTION PERS PERS HOMER ELECTRIC ELECTRIC USAGE INVESTMENTS VENDOR DESCRIPTION DEPARTMENT VARIOUS VARIOUS MATURITY DATE ACCOUNT LIABILITY UTILITIES AMOUNT AMOUNT 98,463.84 105,353.27 Effect. Int. Page 99 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Action/Approval – Special Use Permit to Crowley Fuels, LLC for use of 35,000 square feet of apron space at the Kenai Municipal Airport Crowley Fuels LLC is requesting a Special Use Permit for approximately 35,000 square feet for aviation fueling on the apron fueling area. The Special Use Permit will be effective for one year from July 1, 2024 to June 30, 2025. Crowley Fuels LLC has submitted the Special Use Permit application and paid the fee. Crowley Fuels LLC is current in all fees owed to the City and a current Certificate of Insurance is on file. Airport Commission reviewed the request at the May 9, 2024 Commission meeting and recommends Council approval. Your support for a Special Use Permit to Crowley Fuels, LLC is respectfully requested. City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city Page 100 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 1 of 8 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose address is 201 Arctic Slope Ave., Anchorage, AK 99518, a Special Use Permit for the fueling area on the apron at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 35,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $1,866.67 ($0.64/SF/Year) plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) Page 101 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 2 of 8 4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the following purpose(s): Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. Page 102 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 3 of 8 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee’s fuel handling activities. The policy must name the City as an additional insured. B. Worker’s compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker’s compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, Page 103 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 4 of 8 or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2024. The effective date of the insurance shall be no later than July 1, 2024. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee’s activities on or use of the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. Page 104 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 5 of 8 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Permittee’s use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee’s fuel dispensing equipment at all times. Permittee must comply with the Airport’s Storm Water Pollution Prevention Plan as appropriate to Permittee’s activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50’ of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations’ “Standard for Aircraft Fueling Servicing” in NFPA 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. Page 105 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 6 of 8 14. No Discrimination. Permittee shall not discriminate against any person because of the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport’s eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City’s grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai Page 106 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 7 of 8 is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22. Termination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, “Permittee” means Crowley Fuels LLC., and where the context reasonably indicates, its officers, agents, and employees. “Airport” means the Kenai Municipal Airport. Page 107 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 8 of 8 CITY OF KENAI CROWLEY FUELS LLC By: By: Terry Eubank Date Katharine J. Fontaine Date City Manager Vice President of Operations ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by Terry Eubank, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing instrument was acknowledged before me by Katharine J. Fontaine, Vice President of Operations, Crowley Fuels LLC, on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: APPROVED AS TO FORM: Scott M. Bloom, City Attorney Page 108 EXHIBIT A Crowley I I EXHIBIT A Page 109 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Action/Approval – Special Use Permit to Empire Airlines, Inc. for use of 11,250 square feet of apron space at the Kenai Municipal Airport. Empire Airlines, Inc. is requesting a Special Use Permit for aircraft parking on approximately 11,250 square feet of apron space. The Special Use Permit will be effective for one year from July 1, 2024 to June 30, 2025. Empire Airlines has submitted the Special Use Permit Application and paid the fee. Empire Airlines is current in all fees owed to the City and a current Certificate of Insurance is on file. The Airport Commission reviewed the request at the May 9, 2024 Commission meeting and recommends Council approval. Your support for a Special Use Permit to Empire Airlines, Inc. is respectfully requested. Attachments- Exhibit A, Application, Special Use Permit City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city Page 111 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 1 of 8 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to EMPIRE AIRLINES, INC. (Permittee), whose address is 11559 N. Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose of aircraft parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use approximately 11,250 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $1,312.50 ($1.40/SF/Year) plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) Page 112 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 2 of 8 4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the following purpose(s): Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety Page 113 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 3 of 8 of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee’s fuel handling activities. The policy must name the City as an additional insured. B. Worker’s compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker’s compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. Page 114 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 4 of 8 ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2024. The effective date of the insurance shall be no later than July 1, 2024. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee’s activities on or use of the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s Page 115 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 5 of 8 exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 13. No Discrimination. Permittee shall not discriminate against any person because of the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 14. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 15. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport’s eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City’s grant assurances and federal obligations. 16. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 17. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 18. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 19. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. Page 116 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 6 of 8 20. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 21. Termination; Default. This Permit may be terminated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 22. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule of rates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (10) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 23. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. Page 117 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 7 of 8 24. Definitions. As used in this Permit, “Permittee” means Empire Airlines, Inc. and where the context reasonably indicates, its officers, agents, and employees. “Airport” means the Kenai Municipal Airport. Page 118 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 8 of 8 CITY OF KENAI EMPIRE AIRLINES, INC. By: By: Terry Eubank Date Randy Lanfell Date City Manager Director of Flight Operations ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by Terry Eubank, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing instrument was acknowledged before me by Randy Lanfell, Director of Flight Operations, Empire Airlines, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: Approved as to Form: ___________________ Scott Bloom City Attorney Page 119 Exhibit A ENA SUP - Empire Airlines (11,250 SF) N ➤➤ N Image © 2023 CNES / Airbus Image © 2023 CNES / Airbus Image © 2023 CNES / Airbus Page 120 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Action/Approval – Special Use Permit to Everts Air Fuel, Inc. for use of 30,000 square feet of apron space at the Kenai Municipal Airport. Everts Air Fuel, Inc. is requesting a Special Use Permit for aircraft parking on approximately 30,000 square feet of apron space. The Special Use Permit will be effective for one year from July 1, 2024 to June 30, 2025. Empire Airlines has submitted the Special Use Permit Application and paid the fee. Empire Airlines is current in all fees owed to the City and a current Certificate of Insurance is on file. The Airport Commission reviewed the request at the May 9, 2024 Commission meeting and recommends Council approval. Your support for a Special Use Permit to Everts Air Fuel, Inc. is respectfully requested. Attachments- Exhibit A, Application, Special Use Permit Page 122 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 1 of 8 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose address is P.O. Box 60908, Fairbanks, AK 99706, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $3,500.00 ($1.40/SF/Year) plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) Page 123 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2 of 8 4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the following purpose(s): Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety Page 124 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 3 of 8 of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee’s fuel handling activities. The policy must name the City as an additional insured. B. Worker’s compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker’s compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. Page 125 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4 of 8 ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2024. The effective date of the insurance shall be no later than July 1, 2024. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee’s activities on or use of the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s Page 126 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5 of 8 exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Permittee’s use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee’s fuel dispensing equipment at all times. Permittee must comply with the Airport’s Storm Water Pollution Prevention Plan as appropriate to Permittee’s activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50’ of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations’ “Standard for Aircraft Fueling Servicing” in NFPA 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. Page 127 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6 of 8 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport’s eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City’s grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by Page 128 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 7 of 8 the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 22. Termination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, “Permittee” means Everts Air Fuel, Inc. and where the context reasonably indicates, its officers, agents, and employees. “Airport” means the Kenai Municipal Airport. Page 129 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 8 of 8 CITY OF KENAI EVERTS AIR FUEL, INC. By: By: Terry Eubank Date Robert W. Everts Date City Manager Consultant ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by Terry Eubank, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing instrument was acknowledged before me by Robert W. Everts, Consultant, Everts Air Fuel, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: APPROVED AS TO FORM: Scott M. Bloom, City Attorney Page 130 Page 131 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Action/Approval – Fourth Amendment to Agreement for Janitorial Services with Reborn Again Janitorial Service at Kenai Municipal Airport Terminal On July 1, 2020, the City of Kenai entered into an Agreement for Janitorial Services with Reborn Again Janitorial Service for a period of one year with the option to extend for four successive one- year terms by mutual consent of Owner and Contractor. The Contractor requests to renew under the same terms and conditions. The Airport has a current Certificate of Insurance on file. Airport Commission reviewed the request at the May 9, 2024 Commission meeting and recommends Council approval. Does Council recommend the City Manager approve the Fourth Amendment to Agreement for Janitorial Services with Reborn Again Janitorial Services? Thank you for your consideration. Attachments- 4th Amendment, Agreement Page 133 FOURTH AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the 1st day of July 2020, by and between the CITY OF KENAI, hereinafter called “Owner”, whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, Reborn Again Janitorial Services, whose mailing address is P.O.Box 927, Kenai, AK 99611, hereinafter called “Contractor,” is hereby amended as follows: 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Service for the Kenai Municipal Airport is extended for one final year, beginning on July 1, 2024 and ending on June 30, 2025. 2). All other terms and conditions of the Agreement remain unchanged and in full force and effect. DATED this ____ day of , 2024. CITY OF KENAI By: Terry Eubank, City Manager Reborn Again Janitorial Services Reborn Again Janitorial Services By: By: Sylvia Trevino, Owner Erica Jackson, Owner Page 134 (If Lessee is a corporate-style entity) ATTEST: Name Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ___ day of , 2024, by Terry Eubank, City Manager for the City of Kenai. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ___ day of , 2024, by Reborn Again Janitorial Services, an Alaskan corporation on behalf of the corporation. Notary Public for Alaska My Commission Expires: Approved as for form: Scott Bloom, City Attorney Approved by Finance: David Swarner, Finance Director Page 135 AGREEMENT FOR JANITORJAL SERVICES THIS AGREEMENT is made this l_ day of~ 2020, by and between the CITY OF KENAI (Owner or City); 210 Fidalgo Avenue, Kenai, AK 99611-7794, and Reborn Again Janitorial Service (Contractor), PO Box 927, Kenai, AK 99611. WHEREAS, Owner desires to contract for janitorial and maintenance services for the Kenai Municipal Airport Terminal Building (Facility); and, WHEREAS, Owner and Contractor agree to the terms and conditions under which Contractor shall provide such services and both Owner and Contractor desire t o contract for the provision of such services by Contractor. NOW, THEREFORE, the parties hereto agree as follows: 1. Term. The tenn of this Agreement shall begin on July 1, 2020, and end on June 30, 2021. 2 . Extension. This Agreement may be extended for four successive one-year terms by mutual written consent of Owner and Contractor. 3 . Facility and Services. A. Contractor shall provide the services described in Specifications attached hereto as Exhibit A and incorporated herein by reference. B. Services are for a facility that is approximately 25,000 square feet. (These figures are for reference only and are not binding upon Owner.) Jn the event the Facility undergoes remodel or other partial or full closure during the contract period, square footage may be added or deleted from the contract on a permanent or temporary basis. The City Agreement for Janitorial Services-Reborn Again Janito1ial Service Page I of 13 Page 136 reserves the right to add or delete portions of the building as required by City operations, in which case an equitable adjustment will be made with the contractor, based on cost per square foot, prior to commencement or deletion of work. 4. Payment. In exchange for perfonnance of janitorial services provided hereunder, Owner shall pay Contractor for services rendered at the rate of $4,231.25 per MONTH. If portions of the building are added or deleted by Owner under the provisions of the Specifications, the payment will be adjusted in accordance with the change in square footage. Invoices for services performed by Contractor must be received by Owner no later than five working days following the end of the month during which Contractor performed the services. Invoices must be sent to: Airport Administrative Office, 305 N. Willow St. Ste. 200, Kenai, AK 99611. Payment will be due from Owner to Contractor within thirty days after Contractor has submitted Contractor's invoice for services to Owner. 5. Administrator; Designated Representative. The Airp01i Manager will act as Contract Administrator (Administrator) to act on the City's behalf. Contractor is responsible for prompt attention to any defective work pointed out by the Administrator. At the request of the Administrator, Contractor shall meet with the Administrator at least twice each calendar month to conduct an inspection of the Facility and to discuss performance. Contractor must supply Owner with the contact name and telephone number of Contractor's designated representative in writing on or before July 1, 2020. Contractor is responsible for the performance of the services required under this Agreement, and for the direct supervision of Contractor's personnel, through its designated representative. Such Agreement for J anitorial Services-Reborn Again Janitmial Service Page 2 of 13 Page 137 representative shall, in turn, be available at all reasonable times to report and confer with the Owner with respect to the services. Contractor must provide Owner with a telephone and/or an answe1ing service number through which Owner can contact the designated representative 24 hours per day. Should the designated representative be away from the City of Kenai or be otherwise unable to respond to Owner, Contractor shall designate a new or temporary representative who shall be empowered to act for Contractor and provide Owner with this contact info1mation. 6. Independent Contractor; No Agency. Contractor's relationship with Owner is that of an independent contractor with the authority to control and direct the perfomrnnce of details of the services that are the subject of this Agreement. Nothing contained in this Agreement may be construed to create an agency, partnership, joint venture, or employee- employer relationship between Owner and Contractor. Contractor is not the agent of Owner and Contractor is not authorized to make any representation, contract, or commitment on behalf of Owner. 7. Contractor's Perso nnel Payment and Supervision . A . All personnel furnished by Contractor must be employees of Contractor. Contractor must pay all taxes, salaries, and expenses of each employee, including but not limited to payment of all federal social security taxes, federal and state unempl oyment taxes, and any payroll taxes relating to such employees. B. The manner in wh ich the services contracted for hereunder are to be performed are detennined by the Contractor. Contractor agrees that the sen ices provided under this Agreement must only be perfonned by qualified, careful , and efficient employees Agreement for Janitmial Services-Reborn Again Janit orial Service Page 3 of 13 Page 138 in strict conformity with the best practices and highest applicable standards. C. It is the Contractor's duty to train its employees in order to provide the services required. Contractor will furnish the Administrator a list of the names, addresses and telephone numbers of Contractor's employees working under this Agreement and shall provide Owner with updates of this list as information changes. D . Owner may require removal from the Facility those employees of Contractor whose presence is deemed incompetent, insubordinate or otherwise objectionable, or whose continued employment and presence at the Facility is contrary to the public interest or inconsistent with the best interest of Owner. 8. Insurance. A. Throughout the term of this Agreement Contractor shall, at its own expense, secure and keep in force insurance as stated below. i. Comprehensive general liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual coverage with a per occurrence limit of not less than ONE MILLION DOLLARS ($1,000,000) combined single limit. ii . Worker's Compensation insurance with coverage for all employees engaged in work under this Agreement as required by AS 23.30.045 . 111. Comprehensive automobile liability insurance covering all owned, hired, and non-owned vehicles with coverage limits not less than $250,000 combined single limit per occurrence. Where specific limits are stated, the limits are the minimum acceptable limits. If Contractor 's insurance policy contains higher limits, Owner is entitled to coverage to the extent of the higher limits. Agreement for Janitorial Services-Reborn Again Janitorial Service Page 4 of 13 Page 139 B. All insurance required by this paragraph 8 shall meet the following requirements: 1. for comprehensive general liability and automobile liability insurance, name the City of Kenai as an additional insured; and, 11. for worker's compensation insurance, general liability and automobile liability insurance include a waiver of subrogation so that the insurer waives all rights of subrogation against the City of Kenai for payments made under the policy; and, n1. provide Owner with at least 30 days ' notice before any termination, cancellation, or material change in insurance coverage is effective; and, iv. be issued by a company/corporation currently rated "A-"or better by A.M. Best. C. Contractor must submit to Owner proof of insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. The effective date of the insurance will be no later than the effective date of this Agreement. D. The indemnification and insurance coverage requirements stated in this paragraph 8 and in paragraph 9, below, do not relieve Contractor of any other obligation under this Agreement. E. Owner may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Agreement. Owner will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Contractor shall submit to Owner evidence of insurance coverage that meets the requirements of Owner. 9. Indemnity, Defend, and Hold Harmless Agreement. Contractor shall indemnify, defend, and hold harmless Owner and its agents, employees, and/or insurers from Agreement for Janitorial Services-Reborn Again Janitoiial Service Page 5 of 13 Page 140 claim, loss, damage, liability or expense ruising out of or related to any act or omission of Contractor or Contractor's employees, agents, or inv itees arising out of Contractor's performance of services under this Agreement, except to the extent any negligence of Owner or its employees, agents, or invitees is a proximate cause of any injury or damage. If a third pruiy asserts a claim against Contractor and Owner, Contractor and Owner shall seek in good faith to achieve agreement to an apportionment of fault as between them without an independent of litigation. This provision shall survive expiration or terminat ion of this Agreement. 10. Complaints; Charges. If the Administrator provides complaints regarding janitorial services to Contractor's designated representative, Contractor shall act on the complaint within twenty-four hours, or if urgent, on the same day the complaint is delivered to Contractor. If the deficiencies are not co1Tected in the Agreement for Services allotted time, Owner will arrange to have the work done and all charges will be deducted from Contractor's monthly payment. Termination. 11. A. Term ination For Cause. The obligation to provide further services under this Agreement may be terminated for cause by either party upon fifteen days' wri tte n notice in the event of substantial failure by the other party to perform in accordance with the tenn thereof through no fault of the terminating party. The nonperfonning party shall be given a fifteen calendar day cure period to show progress (satisfactory to the terminating party) after the written notice of intent to terminate. In the event of any tennination, Contractor will be paid for all services properly Agreement for Janitorial Services-Reborn Again Janitorial Service Page 6 of 13 Page 141 rendered up to the date of tern1ination. Upon any termination, Contractor must promptly discontinue all services affected (unless a termination notice from Owner directs otherwise). In the event of termination for cause by Owner, Owner has the right of set-off from any payment due Contractor, of all expenses, costs, and damages, including professional and legal expenses necessary to provide the services. B. Termination Without Cause. Owner retains the exclusive right to cancel , st op, or re-s chedule any or al1 services associated with this Agreement upon thirty (30) days' written notice to Contractor. Owner reserves the right to terminate this Agreement for reasons of convenience or if the services are no longer needed with the same termination conditions stated in subsection (A) immediately above except the fifteen (I 5) day cure period stated above. Contractor may tenninate this Agreement at any time upon thirty (30) days' written notice to Owner. Termination of this Agreement by Contractor without cause shall cause Contractor to be liable to Owner for any increased costs of procuring replacement services as well as for any other damages provided by law. 12. Costs on Default. In the event that either party defaults in the performance of any of its obligations under this Agreement and an action is brought for the enforcement thereof, the defaulting party must pay the other all the costs and expenses incuned therefor e, including actual, reasonable attorney's fees. No right or remedy herein conferred upon or reserved to Owner is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder, or now or hereafter existing at law or in equity or by statute. Agreement for Janitorial Services-Rcbom Again Janitorial Service Page 7 of 13 Page 142 13 . Licensing. Contractor must obtain and maintain all necessary li censes and permits, pay all taxes lawfully imposed on its business, and pay any other fee or charge assessed under any applicable public statute, regulation, or ordinance. Said licensing includes, but is not limited to, obtain ing state and borough business licenses and tax ce1iificates, and, where applicable to Contractor, paying all taxes and filing all documents necessary to maintain Contractor's status as a corporate entity in good standing in the State of Alaska. 14 . Visitors . Contractor may not perm it there to be children, fi:iends, or other unauthorized persons at the Facility while the services are being perfonned by Contractor. 15 . Assignment and S ubco n tract. Contractor may not assign or transfer this Agreement wi thout the prior written approval of the Owner. Further, Contractor may not subcontract and/or transfer any part of the services or work to be performed witho ut p ri or written approval of the Owner. Any such assignment or transfer or subcontracting of services without the consent of Owner constitutes default on the part of Contractor. 16 . N o Discriminati on . Contractor shall ensure that Contractor and Contractor's agents and personnel, including any officer or employee, and anyone else acting by, on behalf of, or under the authority of Cont ract on the Airport and, on the Premises, does not discriminate on the groun ds of race, creed, color, national 01igin, age, sex, handicap, mari tal status, change in marital status, pregnancy, or parenthood against any patron, employee, applicant for employment, or other person or group of per sons in any manner prohibited by federal or state law. Contractor recognizes that the right of state to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. This agreement is Agreement for Ja nito1ial Serv ices-Reborn Again Jan ito ri al Service Page S of 13 Page 143 subject to the requirements of the U.S . Department of Transportation 's regulations, 49 CFR paii 23 . The contractor agrees that it will not discriminate against any business owner because of the owner's race, color, national origin, or sex in connection with the award or perfonnance of any contract agreement, management contract, or subcontract, purchase or lease agreement, or other agreement covered by 49 CFR part 23. A. Affinnative Action: The Contractor will undertake any affirmative action program required by 14 CFR, Part 152 (Airpo1i Aid Program), subpart E (Nondiscrimination in Airport Aid Program), and the American Disabilities Act of 1990 to ensure that no person shall, on the grounds ofrace, creed, color, national origin, age, sex, handicap, marital status, change in marital status, pregnancy, or parenthood be excluded from participating in any employment, contracting, or leasing activities covered by 14 CFR Part 152, subpart E or the American Disabilities Act of 1990. Contractor assures that no person shall be excluded on these grounds, from participating in or receiving the services or benefits of any program or activity covered by said s ubpaii or act. Contractor assures that I wi ll require its covered organizations provide assurances to state that they similarly will unde1iake affirmative action programs and that they wm require assurances from their suborganizations as required by ] 4 CFR Part 152, subpart E or the American Disabilities Act of 1990, to the same effect. Contract shall comply with any affirmative action plan or steps for equal employment opportunity required by 14 CFR Paii 152, subpart E, the Ameiican Disabilities Act of 1990, a part of the affirmative action program, and by any federal, state, or lo cal agency or court, includin g those resulting from a conciliation agreement, consent decree, comi order, or similar mechanism. Contractor shall use state or local affirmative actions plans in lieu of any Agreement for Jani101ial Services-Reborn Again Janito1ial Service Page 9 of 13 Page 144 affinnative action plan or steps required by 14 CFR 152.409. Contractor shall obtain a similar assurance from its covered organizations, and to cause them to require a similar assurance of their covered suborganizations, as required by 14 CFR Part 152, subpart E. Copies of CFR Paii 152, subpart E, and the American Disabilities Act of 1990 are available from the City. B. Compliance with Regulations: Concessionaire will comply with Title VI List of Pertinent Nondiscrimination Statues and Authorities, attached as Attachment A, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract 17. Assumption of Risk. Contractor must provide all proper safeguards and assume all risks incurred in perfom1ing its services hereunder. 18 . No Waiver. If Owner does not insist in any one or more instances on the strict perfonnance by Contractor of any provision or article under this Agreement, it is not a waiver or relinquishment for the future, but the provision or article will continue in full force . An Owner waiver of any provision or article in this Agreement cannot be enforced nor relied on unless the waiver is in writing and signed on behalf of Owner. 19. Integration and Modification. This Agreement contains the entire agreement of the pa1iies. All negotiations, statements, representations, warranties, and assurances, whether oral or written, which are in any way related to the subject matter of this Agreement or the perfonnance of either party hereto, are merged and integrated into the terms of this Agreement. This Agreement may not be modified or amended except by a writing signed by both parties hereto . Agreement for Janitorial Services-Reborn Again Janitoria l Service Page 10 of 13 Page 145 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Action/Approval – Special Use Permit to Kenai Aviation Operations, LLC. for use of 2,714 square feet of apron space at the Kenai Municipal Airport. Kenai Aviation Operations, Inc. is requesting a Special Use Permit for aircraft parking on approximately 2,714 square feet of apron space. The Special Use Permit will be effective for 6 months from May 6, 2024 to November 6, 2024. Kenai Aviation Operations, Inc. has submitted the Special Use Permit Application and paid the fee. Kenai Aviation Operations, Inc has a current plan of payment and a current Certificate of Insurance is on file. The Airport Commission reviewed the request at the May 9, 2024 Commission meeting and recommends Council approval. Your support for a Special Use Permit to Kenai Aviation Operations, Inc. is respectfully requested. Attachments- Exhibit A, Application, Special Use Permit Page 149 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 1 of 8 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to Kenai Aviation (Permittee), whose address is 101 N Willow Street, Kenai, AK 99611, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 2,714 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for six months commencing on May 6, 2024 and ending on November 6, 2024. Regardless of the date of signature, this Permit shall be effective as of May 6, 2024. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee plus applicable sales tax as follows: May – June 2024 $137.96 July – November 2024 $144.75 B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) Page 150 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 2 of 8 4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the following purpose(s): Aircraft Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. Page 151 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 3 of 8 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee’s fuel handling activities. The policy must name the City as an additional insured. B. Worker’s compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker’s compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, Page 152 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 4 of 8 or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by May 6, 2024. The effective date of the insurance shall be no later than May 6, 2024. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee’s activities on or use of the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. Page 153 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 5 of 8 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Permittee’s use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee’s fuel dispensing equipment at all times. Permittee must comply with the Airport’s Storm Water Pollution Prevention Plan as appropriate to Permittee’s activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within fifty feet (50’) of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations’ “Standard for Aircraft Fueling Servicing” in NFPA 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. Page 154 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 6 of 8 14. No Discrimination. Permittee shall not discriminate against any person because of the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport’s eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City’s grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Page 155 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 7 of 8 Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 22. Termination; Default. This Permit may be terminated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule of rates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (10) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Permit, “Permittee” means Kenai Aviation and where the context reasonably indicates, its officers, agents, and employees. “Airport” means the Kenai Municipal Airport. Page 156 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 8 of 8 CITY OF KENAI KENAI AVIATION By: By: Terry Eubank Date Peter Heinrichsohn Date City Manager President ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by TERRY EUBANK, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing instrument was acknowledged before me by Peter Heinrichsohn, President, on behalf of Kenai Aviation Operations, LLC. Notary Public for Alaska My Commission Expires: Approved as to Form: ___________________ Scott Bloom City Attorney Page 157 Page 158 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Action/Approval – Special Use Permit to United Parcel Service Co., Inc. for use of 4,000 square feet of apron space at the Kenai Municipal Airport. United Parcel Service Co., Inc. is requesting a Special Use Permit for approximately 4,000 square feet of apron for aircraft loading and parking. The Special Use Permit will be effective for one year from July 1, 2024 to June 30, 2025. United Parcel Service Co., Inc. has submitted the Special Use Permit application and paid the fee. United Parcel Service is current in all fees owed to the City and a current Certificate of Insurance is on file. The Airport Commission reviewed the request at the May 9, 2024 Commission meeting and recommends Council approval. Your support for a Special Use Permit to United Parcel Service Co., Inc. is respectfully requested. Attachments- Exhibit A, Application, Special Use Permit Page 160 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 1 of 7 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc. (Permittee), whose address is 6200 Lockheed Ave., Anchorage, AK 99502, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 4,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $466.67 ($1.40/SF/Year) plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) Page 161 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 2 of 7 4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the following purpose(s): Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee’s use only and may not be transferred or assigned. Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety Page 162 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 3 of 7 of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee’s insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee’s fuel handling activities. The policy must name the City as an additional insured. B. Worker’s compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker’s compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. Page 163 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 4 of 7 ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2024. The effective date of the insurance shall be no later than July 1, 2024. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee’s activities on or use of the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s Page 164 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 5 of 7 exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 13. No Discrimination. Permittee shall not discriminate against any person because of the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 14. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 15. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport’s eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City’s grant assurances and federal obligations. 16. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 17. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 18. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 19. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. Page 165 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 6 of 7 20. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 21. Termination; Default. This Permit may be terminated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 22. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City’s comprehensive schedule of rates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (10) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 23. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. Page 166 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 7 of 7 CITY OF KENAI UPSCO United Parcel Service Co., Inc. By: By: Terry Eubank Date Robert Vey Date City Manager Business Manager ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by TERRY EUBANK, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing instrument was acknowledged before me by Robert Vey, the Business Manager, on behalf of UPSCO, United Parcel Service Co., Inc. Notary Public for Alaska My Commission Expires: Approved as to Form: ___________________ Scott Bloom City Attorney Page 167 Exhibit A Page 168 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Shellie Saner, City Clerk FROM: Meghan Thibodeau, Deputy City Clerk DATE: May 15, 2024 SUBJECT: Airport Commission Appointment A vacancy currently exists on the Airport Commission; an application for a partial term on the FAA seat has been received and is attached for consideration. Pursuant to Kenai Municipal Code 1.90.010 members are nominated by the Mayor and confirmed by the City Council. Mayor Gabriel has requested Council confirmation of the following appointment: Joshua Belter – Airport Commission term ending December 31, 2024 Your consideration is appreciated. Page 170 From:Joshua Belter To:City Clerk Subject:Form submission from: Commission/Committee Application (Webform) Date:Wednesday, May 8, 2024 12:50:37 PM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Submitted on Wednesday, May 8, 2024 - 12:50pm Submitted by anonymous user: 162.58.82.136 Submitted values are: Date: Wed, 05/08/2024 Name: Joshua Belter Resident of City of Kenai?: Yes If resident, how long?: 10 years Residence Address: Mailing Address: Home Telephone: Home Fax: Business Telephone: Business Fax: Email address: May we include your contact information on our website?: No If not all, what may we include?: Employer: Federal Aviation Administration Job Title: Air Traffic Controller Name of Spouse: Kenia Belter Current Membership Organization: National Air Traffic Controllers Association Past organizational memberships: Committees or commissions in which you are interested: Kenai Airport Committee Why do you want to be involved with this commission or committee?: As Josh Daily, FAA, has stepped down. I asked to continue carrying the torch representing the Federal Aviation Administration. I would like to be a part of the committee that makes decisions for our local airport and serve as a resource for potential changes and improvements at the ENA airport. What background, experience, or credentials do you possess to bring the board, commission, or committee membership?: I have over 35 years of experience in air traffic control working in multiple FAA towers, contract air traffic control towers, flight service, and the FAA Lockheed Martin contract. I have represented the FAA multiple times at outreach and liaison meetings, most recently at the Great Aviation Gathering in Palmer last week. As a nationally published author, I have presented countless presentations and book signings across the country. I have a passion for aviation, and would love to be a part of the activities at our local Kenai airport. The results of this submission may be viewed at: https://www.kenai.city/node/2601/submission/11304 Page 171 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Shellie Saner, City Clerk FROM: Meghan Thibodeau, Deputy City Clerk DATE: May 22, 2024 SUBJECT: Beautification Committee Appointment A vacancy currently exists on the Beautification Committee; an application for a partial term has been received and is attached for consideration. Pursuant to Kenai Municipal Code 1.90.010 members are nominated by the Mayor and confirmed by the City Council. Mayor Gabriel has requested Council confirmation of the following appointment: Samantha Springer – Beautification Committee term ending December 31, 2024 Your consideration is appreciated. Page 172 From:Samantha Springer To:City Clerk Subject:Form submission from: Commission/Committee Application (Webform) Date:Monday, May 20, 2024 9:15:43 AM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Submitted on Monday, May 20, 2024 - 9:15am Submitted by anonymous user: 63.140.120.6 Submitted values are: Date: Mon, 05/20/2024 Name: Samantha Springer Resident of City of Kenai?: No If resident, how long?: Residence Address: Mailing Address: PO Box 2573, Soldotna, AK 99669 Home Telephone: 907-947-0514 Home Fax: Business Telephone: 907-283-1991 Business Fax: Email address: samantha@kenaichamber.org May we include your contact information on our website?: Yes, but not all (specify below) If not all, what may we include?: My residence address Employer: Kenai Chamber of Commerce & Visitor Center Job Title: Executive Director Name of Spouse: Greg Springer Current Membership Organization: President, LeeShore Center Board of Directors; Housing subcommittee on the KPB Working Group; Bronze Bear committee member. Past organizational memberships: Committees or commissions in which you are interested: Beautification committee Why do you want to be involved with this commission or committee?: As the current Executive Director of the Kenai Chamber of Commerce & Visitor Center, I am passionate about enhancing our community's appeal for both citizens and tourists. Joining the Beautification Committee for the City of Kenai is a natural extension of my commitment to fostering an inviting and enjoyable environment. I believe that a well-maintained and attractive city not only boosts local pride but also draws visitors, benefiting our local economy. My love for community involvement and dedication to service drive my desire to contribute to initiatives that enhance the aesthetic and functional quality of our city, making Kenai an even more wonderful place to live and visit. What background, experience, or credentials do you possess to bring the board, commission, or committee membership?: With extensive experience serving on various committees and boards, I am well-equipped to contribute effectively to the Beautification Committee for the City of Kenai. My love for community service began in college when I served as the Alpha Sigma Alpha Philanthropic Chair, instilling in me a deep commitment to community enhancement. As the President of the LeeShore Center Board of Directors, I have honed my leadership and collaborative skills, Page 173 working towards community-focused goals. My involvement in the Housing subcommittee on the KPB Working Group has provided me with a deep understanding of local needs and the intricacies of project development. Additionally, my participation in the Bronze Bear committee has enriched my perspective on community enhancement projects. These roles have collectively prepared me to bring a wealth of knowledge, strategic thinking, and a strong commitment to the Beautification Committee, ensuring our city remains a vibrant and attractive place for all. The results of this submission may be viewed at: https://www.kenai.city/node/2601/submission/11318 Page 174 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3421-2024 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATION IN THE KENAI CITY AIRPORT SNOW REMOVAL EQUIPMENT, VISITOR CENTER, AND PUBLIC SAFETY CAPITAL PROJECT FUNDS TO TRANSFER RESIDUAL BALANCE FROM COMPLETED PROJECTS BACK TO THEIR ORIGINAL FUNDING SOURCES. WHEREAS, $336.64 remains in Airport Snow Removal Equipment Capital Project Funds from completed capital projects for a snow removal attachment and gate installation; and, WHEREAS, transfer of the residual $336.64 to the Airport Fund, the fund from which the funds originated will allow future appropriation of the funds for operations or future capital projects and is in the best interest of the city; and, WHEREAS, $1,191.66 remains in Visitor Center Capital Project Funds from completed capital project for roof replacement at the Visitor Center; and, WHEREAS, transfer of the residual $1,191.66 to the General Fund, the fund from which the funds originated will allow future appropriation of the funds for operations or future capital projects and is in the best interest of the city; and, WHEREAS, $11,966.90 remains in Visitor Center Capital Project Funds from completed capital project for the HVAC Control upgrade at the Visitor Center; and, WHEREAS, transfer of the residual $11,966.90 to the General Fund, the fund from which the funds originated will allow future appropriation of the funds for operations or future capital projects and is in the best interest of the city; and, WHEREAS, $2,843.10 remains in Public Safety Capital Project Funds from completed capital project for flooring replacement at the Fire Department; and, WHEREAS, transfer of the residual $2,843.10 to the General Fund, the fund from which the funds originated will allow future appropriation of the funds for operations or future capital projects and is in the best interest of the city; and, WHEREAS, $9,367.71 remains in Public Safety Capital Project Funds from completed capital project for the apparatus bay painting at the Fire Department; and, WHEREAS, transfer of the residual $9,367.71 to the General Fund, the fund from which the funds originated will allow future appropriation of the funds for operations or future capital projects and is in the best interest of the city. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the estimated revenues and appropriations be increased as follows: Airport Improvement Capital Project Fund: Page 175 Ordinance No. 3421-2024 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Increase Estimated Revenues- Appropriation of Fund Balance $336.64 Increase Appropriations – Transfer to Airport Fund $336.64 Section 2. That the estimated revenues and appropriations be increased as follows: Visitor Center Improvement Capital Project Fund: Increase Estimated Revenues – Appropriation of Fund Balance $13,158.56 Increase Appropriations – Transfer to General Fund $13,158.56 Section 3. That the estimated revenues and appropriations be increased as follows: Public Safety Capital Project Fund: Increase Estimated Revenues – Appropriation of Fund Balance $12,210.81 Increase Appropriations – Transfer to General Fund $12,210.81 Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: June 5, 2024 Enacted: June 19, 2024 Effective: June 19, 2024 Page 176 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Officer DATE: May 25, 2024 SUBJECT: Ordinance 3421-2024 Residual Capital Project Balance Transfer The purpose of this memo it to recommend the enactment of Ordinance 3421-2024 that will transfer remaining balances from completed projects back to their original funding source. These transfers will allow the residual funds to be appropriated for operations or new capital projects in the future. In total $25,369.37 will be returned to the General Fund from these completed capital projects: 1. Public Safety Capital Project – Apparatus bay painting at the Fire Department, $9,367.71 2. Public Safety Capital Project – Flooring replacement at the Fire Department, $2,843.10 3. Visitor Center Capital Project – HVAC control upgrade, $11,966.90 4. Visitor Center Capital Project – Roof replacement, $1,191.66 $336.64 will be returned to the Airport Fund from this completed project: 1. Airport Snow Removal Equipment Capital Project – Snow removal attachment and gate installation, $336.64 With the enactment of Ordinance 3421-2024, these funds will be returned to their original funding source, where they will reside in fund balance until the passage of future ordinances appropriating the funds for operations or other capital projects. No authorization to spend is created by this appropriation, rather only the authority to transfer between funds is being provided. Your support for the enactment of Ordinance 3421-2024 is respectfully requested. Page 177 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3422-2024 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND AND PUBLIC SAFETY CAPITAL PROJECT FUND FOR COST IN EXCESS OF PROJECTED BUDGETED AMOUNTS FOR FIRE DEPARTMENT FLOORING REPLACEMENT PHASE 2. WHEREAS, the FY24 budget was approved with a $100,000 Capital project for Fire Department Flooring Replacement Phase 2; and, WHEREAS, it was estimated that $4,488 would come from a residual balance from a prior capital project; and, WHEREAS, the residual balance did not materialize; and, WHEREAS, the $4,488 is needed to fully fund the Capital project for the Fire Department Flooring Replacement Phase 2; and, WHEREAS, this remains a priority project for the Department and provides appropriate maintenance in the continued protection of a City asset. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues – Appropriation of Fund Balance $4,488 Increase in Appropriations – Transfer to Public Safety Capital Project Fund $4,488 Public Safety Capital Project Fund: Increase Estimated Revenues – Transfer from General Fund $4,488 Increase in Appropriations – Fire Department Flooring Replacement Phase 2 $4,488 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Page 178 Ordinance No. 3422-2024 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: June 5, 2024 Enacted: June 19, 2024 Effective: June 19, 2024 Page 179 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: May 25, 2024 SUBJECT: Ordinance 3422-2024 for Kenai Fire Department Flooring Replacement Phase 2 The purpose of this Ordinance is to provide supplemental funding in support of the Kenai Fire Departments Flooring Replacement Phase 2, approved and as detailed on page 299 of the FY24 budget. It was projected that $4,488 of the funds would come from residual funding from prior projects. Thus only $95,512 was budgeted in the FY24 budget for transfer from the General Fund, as detailed on page 298 of the FY24 budget. The residual funds did not materialize as expected. The additional $4,488 requested is intended to bring the total capital amount of the Fire Department Flooring Replacement Phase 2 up to the projected project cost of $100,000. The Fire Department, Public Works Department and Administration are in support of the project. Council’s approval is respectfully requested. Page 180 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3423-2024 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE PERSONAL USE FISHERY FUND FOR THE BUDGETED ANNUAL TRANSFER FROM PERSONAL USE FISHERY FUND TO THE GENERAL FUND. WHEREAS, the FY24 General Fund annual budget included a $75,000 transfer from the Personal Use Fishery Fund, but the companion transfer from the Personal Use Fishery Fund was inadvertently omitted from the FY24 budget; and, WHEREAS, the Personal Use Fishery Fund requires an additional appropriation of $75,000 to complete the FY24 intended transfer and correct the omission. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the estimated revenues and appropriations be increased as follows: Personal Use Fishery Fund: Increase Estimated Revenues – Appropriation of Fund Balance $75,000 Increase in Appropriations – Transfer to General Fund $75,000 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF JUNE, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Page 181 Ordinance No. 3423-2024 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Approved by Finance: _________________ Introduced: June 5, 2024 Enacted: June 19, 2024 Effective: June 19, 2024 Page 182 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: May 25, 2024 SUBJECT: Ordinance 3423-2024 for PU Fishery transfer from PU Fishery Fund Balance The purpose of this Ordinance is to authorize funding for the annual transfer from the Personal Use Fishery Fund to the General Fund to cover Non-Departmental expenses. In the FY24 budget, $75,000 was allocated for this transfer into the General Fund. However, the Transfer Out from the Personal Use Fishery Fund was inadvertently omitted from the FY24 budget. The requested $75,000 will be allocated to the Personal Use Fishery budget to facilitate the transfer. Completing this transfer will ensure that the City’s budgeted revenues cover Non- Departmental expenses for FY24. Council’s approval is respectfully requested. Page 183 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: May 10, 2024 SUBJECT: Workplan 2024 – Airport Commission The Airport Commission convened for work sessions on March 14, 2024, April 11, 2024, and May 9, 2024 to draft their Workplan for 2024. On May 9, 2024, during their meeting, they voted to propose their workplan for approval by the City Council. The Administration supports goals 1, 2, and 3, as they are consistent with Kenai Municipal Code. Thank you for your consideration. Page 184 Page 185 2024 – AIRPORT COMMISSION ANNUAL WORK PLAN 2024 Annual Work Plan City of Kenai Airport Commission INTRODUCTION This area should include a brief description of the overall purpose of the commission. Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and the City of Kenai Comprehensive Plan. Instructions: In the space provided below, create a list of issues and goals (objectives) your commission would like to address in the upcoming year, your list should also include plans on how to address those issues. Each objective listed should include information regarding additional staff resources and/or community volunteers needed; funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain the objective. Pease prioritize the objectives of your group with number one (1) being the top priority. GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE Objective No. 2 Objective: West Side Hangar subdivision Estimated Time to Complete: Unknown Strategy: (Provide a summary of tasks which need to be done to obtain the objective.) The Airport Commission will hold a work session to discuss the development of hangars on the west side. They will review the current lots and sizes that may be needed in the future. They will also review the possible use cases with the infrastructure that is in place now as well as the infrastructure that will be built. They will review funding sources, the timeline when this is available, and make recommendations. Narrative: (Describe the benefits to the residents and visitors of the City.) The Kenai Municipal Airport Terminal seeks to be financially stable. This could generate additional revenue for the airport and allow for more use. Collaboration: (Who needs to be involved to obtain the objective?) Kenai Airport Manager, City Manager, City Attorney, City Council, and Airport Commission Funding: (Are funds available, or is funding needed in a future budget? Funding sources for supporting infrastructure such as taxiways would be through AIP entitlements and discretionary funding. Sources of funding for hangars will be explored. Page 186 2024 – AIRPORT COMMISSION ANNUAL WORK PLAN 2024 Annual Work Plan City of Kenai Airport Commission INTRODUCTION This area should include a brief description of the overall purpose of the commission. Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and the City of Kenai Comprehensive Plan. Instructions: In the space provided below, create a list of issues and goals (objectives) your commission would like to address in the upcoming year, your list should also include plans on how to address those issues. Each objective listed should include information regarding additional staff resources and/or community volunteers needed; funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain the objective. Pease prioritize the objectives of your group with number one (1) being the top priority. GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE Objective No. 3 Objective: Airport Terminal Landscaping _ Estimated Time to Complete: 1 year Strategy: (Provide a summary of tasks which need to be done to obtain the objective.) The Airport Commission will seek and receive updates on the status of the terminal landscaping project. Narrative: (Describe the benefits to the residents and visitors of the City.) The Kenai Municipal Airport Terminal is the commercial aviation gateway to the City of Kenai and the Greater Kenai Peninsula. Our Airport Terminal is a source of pride for the community as we welcome our friends, family, and visitors to our area. The inside of the terminal is new and beautiful. The outside of the terminal will also be able to reflect that as well. Collaboration: (Who needs to be involved to obtain the objective?) Kenai Airport Manager, City Manager, City Attorney, City Council, Public Works Director, and landscape planning committee. Funding: (Are funds available, or is funding needed in a future budget? Funding sources are in the capital improvement fund and through donations for the statues. Page 187 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Tyler Best, Parks and Recreation Director DATE: May 29, 2024 SUBJECT: Workplan 2024 –Beautification Commission The Beatification Commission met on May 14, 2024, and voted on its annual work plan goals. The Commission voted on 4 individual goals, and the Administration supports all 4 goals. Page 188 2024 – DrȕǻI®ÝNǻÝŷŗ COMMISSION ANNUAL WORK PLAN 2024 Annual Work Plan City of Kenai DsȖǼÞ¯ÞOǼÞŸŘ Commission INTRODUCTION This area should include a brief description of the overall purpose of the commission.Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and the City of Kenai Comprehensive Plan. Instructions:In the space provided below, create a list of issues and goals (objectives) your commission would like to address in the upcoming year, your list should also include plans on how to address those issues. Each objective listed should include information regarding additional staff resources and/or community volunteers needed; funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain the objective. Pease prioritize the objectives of your group with number one (1) being the top priority. GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE Objective No. __________ Objective: _________________________________________________________________________________ Estimated Time to Complete: _____________________________ Strategy: (Provide a summary of tasks which need to be done to obtain the objective.) Narrative: (Describe the benefits to the residents and visitors of the City.) Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) 1 Parks and Garden Tour N/A Tour of Gardens and Parks with a focus on landscaping (plant, shrubs, beds, & ext) and beautification of parks. The hope would be to do this tour annually during the month of August when most of the plants and flowers and in full bloom. Determine if updates or changes are needed to improve the beautification of The City of Kenai. Beautification Commission and the Parks and Recreation Department none, the tour would happen as a regular schedule meeting or work session. Page 189 2024 – DrȕǻI®ÝNǻÝŷŗ COMMISSION ANNUAL WORK PLAN 2024 Annual Work Plan City of Kenai Beautification Commission INTRODUCTION This area should include a brief description of the overall purpose of the commission.Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and the City of Kenai Comprehensive Plan. Instructions:In the space provided below, create a list of issues and goals (objectives) your commission would like to address in the upcoming year, your list should also include plans on how to address those issues. Each objective listed should include information regarding additional staff resources and/or community volunteers needed; funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain the objective. Pease prioritize the objectives of your group with number one (1) being the top priority. GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE Objective No. __________ Objective: _________________________________________________________________________________ Estimated Time to Complete: _____________________________ Strategy: (Provide a summary of tasks which need to be done to obtain the objective.) Narrative: (Describe the benefits to the residents and visitors of the City.) Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) 2 Winter Beautification Tour N/A Tour of the City's winter beautification areas and static displays. This tour would work best to have an Annual Work Session in December. Determine if updates or changes and needed to improve the beautification of The City of Kenai during the Winter Months. Beautification Commission and the Parks and Recreation Department none, the tour would happen as a regular schedule meeting or work session. Page 190 2024 – DrȕǻI®ÝNǻÝŷŗ COMMISSION ANNUAL WORK PLAN 2024 Annual Work Plan City of Kenai Beautification Commission INTRODUCTION This area should include a brief description of the overall purpose of the commission.Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and the City of Kenai Comprehensive Plan. Instructions:In the space provided below, create a list of issues and goals (objectives) your commission would like to address in the upcoming year, your list should also include plans on how to address those issues. Each objective listed should include information regarding additional staff resources and/or community volunteers needed; funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain the objective. Pease prioritize the objectives of your group with number one (1) being the top priority. GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE Objective No. __________ Objective: _________________________________________________________________________________ Estimated Time to Complete: _____________________________ Strategy: (Provide a summary of tasks which need to be done to obtain the objective.) Narrative: (Describe the benefits to the residents and visitors of the City.) Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) 3 Leif Hansen Memorial Fountain 2 years Provide input on the redesign of the Lief Hansen Memorial Fountain and immediate surrounding area. To enhance the beauty of the Leif Hansen Memorial Park with the Fountain as the center piece. Beautification Commission , the Parks and Recreation Department and members of the public. There is current funding for an improvement design for the Fountain. If a design is approved it may require additional funding. Page 191 2024 – DrȕǻI®ÝNǻÝŷŗ COMMISSION ANNUAL WORK PLAN 2024 Annual Work Plan City of Kenai Beautification Commission INTRODUCTION This area should include a brief description of the overall purpose of the commission.Note: Work plans developed by the advisory body will be submitted to the City Council for approval; therefore, it is a good idea to align the goals and objectives with city code, policy and the City of Kenai Comprehensive Plan. Instructions:In the space provided below, create a list of issues and goals (objectives) your commission would like to address in the upcoming year, your list should also include plans on how to address those issues. Each objective listed should include information regarding additional staff resources and/or community volunteers needed; funding resources, are funds available in the budget if not are you proposing council include funding in the upcoming budget cycle; and how long is it expected to obtain the objective. Pease prioritize the objectives of your group with number one (1) being the top priority. GOAL OR OBJECTIVE COLLABORATION FUNDING RESOURCES TIME TO COMPLETE Objective No. __________ Objective: _________________________________________________________________________________ Estimated Time to Complete: _____________________________ Strategy: (Provide a summary of tasks which need to be done to obtain the objective.) Narrative: (Describe the benefits to the residents and visitors of the City.) Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) 4 Green Strip Pavilion 2 years Provide input on the redesign and appearance of the Pavilion and the surrounding areas, such as adding a mural. To enhance the beauty of the Green strip Pavilion as it is widely used for many public and private events. Potentially increase local residents desire to rent the pavilion for private events. Beautification Commission, the Parks and Recreation Department, members of the public, and local artist groups. The replacement of Green-strip Pavilion is currently on the City's Capital Improvement Plan. Page 192 KENAI COUNCIL ON AGING – REGULAR MEETING MAY 9, 2024 - 3:00 P.M. KENAI SENIOR CENTER 361 SENIOR CT., KENAI, AK 99611 CHAIR KEN AYERS, PRESIDING Council on Aging Meeting Page 1 of 3 May 9, 2024 ACTION MINUTES A. CALL TO ORDER A Regular Meeting of the Council on Aging was held on May 9, 2024, at the Kenai Senior Center, Kenai, AK. Chair Ayers called the meeting to order at approximately 3:00 p.m. 1. Pledge of Allegiance Chair Ayers led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Ken Ayers, Chair Rachael Craig, Vice Chair Velda Geller (arrived at 3:15 p.m.) Barbara Modigh Frances Kilfoyle Kit Hill Jim Glendening William Sadler A quorum was present. Also in attendance were: Kathy Romain, Senior Center Director Red Piersee, Senior Center Administrative Assistant Shellie Saner, City Clerk James Baisden, City Council Liaison 3. Agenda Approval MOTION: Vice Chair Craig MOVED to approve the agenda as presented. Member Modigh SECONDED the motion. VOTE: There being no objection; SO ORDERED. B. SCHEDULED PUBLIC COMMENTS - None. C. UNSCHEDULED PUBLIC COMMENTS - None. D. APPROVAL OF MINUTES 1. April 11, 2024 MOTION: Member Hill MOVED to approve the April 11, 2024 Council on Aging minutes. Vice Chair Craig SECONDED the motion. VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS - None. Page 193 Council on Aging Meeting Page 2 of 3 May 9, 2024 F. NEW BUSINESS 1. Discussion/Recommendation - Recommendation to Council on Enactment of Ordinance No. 3416-2024 - An Ordinance Repealing, Reenacting and Renaming Kenai Municipal Code Chapter 1.90 - Standard Procedures For Boards, Commissions and Committees, Enacting Chapter 1.95 - Standing Advisory Commissions, Repealing Chapters 11.10 - Harbor Commission, Chapter 19.05 Parks And Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section 14.05.050 - Planning and Zoning Commission - Qualifications and Membership, and Approving Amendments to the Council on Aging Commission’s By-Laws to Organize Streamline, and Improve the Efficiency of the City’s Standing Commissions. MOTION: Member Glendening MOVED to recommend City Council enact Ordinance No. 3416-2024. Vice Chair Craig SECONDED the motion. City Clerk Saner summarized the report as provided in the packet, noting that the proposed new code had substantial structural changes; however, the intent of the Commissions February recommendation remained in the new proposed code. MOTION TO AMEND: Chair Ayers MOVED to recommend City Council amend Ordinance No. 3416-2024, Section 2, Chapter 1.95 - Standing Advisory Commissions, Section 1.95.030 - Council on Aging Commission as follows: Paragraph (b)(1)(ii) to read, “Development and use of the Senior Center or other facilities owned or managed by the City for the provision of services for senior citizens [, EXCLUDING VINTAGE POINTE- INDEPENDENT SENIOR HOUSING].” Member Glendening SECONDED the motion. Members Ayers, Modigh and Glendening spoke in support of the recommended amendment. Members Sadler, Craig and Hill spoke in opposition to the recommended amendment. [Clerk’s Note: Member Geller arrived at approximately 3:15 p.m.] VOTE ON MOTION TO AMEND: YEA: Ayers, Kilfoyle, Geller, Modigh, Glendening NAY: Craig, Hill, Sadler MOTION TO AMEND PASSED. 5 Yes, 3 No VOTE ON MAIN MOTION AS AMENDED: YEA: Ayers, Geller, Modigh, Kilfoyle, Glendening NAY: Craig, Sadler, Hill MAIN MOTION AS AMENDED PASSED. 5 Yes, 3 No 2. Discussion - Selection of a Council on Aging Member to Attend the May 15, 2024 City Council Meeting for the Purpose addressing the City Council Regarding the Council on Aging Work Plan. Director Romain summarized the information as provided within the Packet. City Clerk Saner reported the importance of selecting one member to represent the opinion of the Council on Aging to the City Council related to the State of Alaska Open Meetings Act. NOMINATION: Chair Ayers NOMINATED Vice Chair Craig to attend the May 15, 2024 City Council Meeting for the purpose of representing the recommendation of the majority of the Council on Aging regarding the Council on Aging 2024 Work Plan. Page 194 Council on Aging Meeting Page 3 of 3 May 9, 2024 Chair Ayers called for additional nominations; having no additional nominations and no objections; Vice Chair Craig was selected. 3. Discussion/Recommendation - Pledge of Allegiance at Lunchtime. Director Romain summarized the memo as provided in the packet and requested feedback from the members. There was general consensus that the pledge of allegiance could be added on Fridays prior to singing the Alaska song. G. REPORTS 1. Senior Center Director - Director Romain reported on the following: • Reviewed the budget plan as presented to the City Council. • Reviewed the 2024 March for Meals fundraiser. • Provided an overview of the recent classification study for City employees. • Upcoming Fourth of July. • Staff out of offices in June. • Vintage Pointe boiler and generator updates. 2. Commission Chair - Chair Ayers reported his recent research and meeting with the City Attorney for changes to 1.95.030, section (b)(ii). 3. City Council Liaison - Council Member Baisden reported on the actions of the May 1, 2024 City Council Meeting. H. ADDITIONAL PUBLIC COMMENTS - None. I. NEXT MEETING ATTENDANCE NOTIFICATION - June 13, 2024. Member Modigh will be attending remotely. J. COMMISSION QUESTIONS AND COMMENTS Members discussed potential items to be added to the June agenda; receiving updates on the Kenaitze Transportation program and the Bluff Stabilization project. K. ADJOURNMENT L. INFORMATIONAL ITEMS - None. There being no further business before the Council on Aging, the meeting was adjourned at 4:15 p.m. I certify the above represents accurate minutes of the Council on Aging meeting of May 9, 2024. ___________________________________ Meghan Thibodeau Deputy City Clerk Page 195 r l KENAI PLANNING & ZONING COMMISSION REGULAR MEETING MAY 8, 2024-7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR JOE HALSTEAD, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai Planning & Zoning Commission was held on May 8, 2024, in City Hall Council Chambers, Kenai, AK. Chair Halstead called the meeting to order at approximately 7:03 p.m. 1. Pledge of Allegiance Chair Halstead led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Joe Halstead, Chair Glenese Pettey Jeff Twait Gwen Woodard A quorum was present. Also in attendance were: Linda Mitchell, Planning Director Alex Douthit, City Council Liaison Shellie Saner, City Clerk John Coston, Vice Chair Sonja Barbaza Diane Fikes (electronic participation; joined 7:15 p.m.) Meghan Thibodeau, Deputy City Clerk 3. Approval of Agenda and Consent Agenda MOTION: Commissioner Woodard MOVED to approve the agenda and consent agenda. Commissioner Twait SECONDED the motion. The items on the Consent Agenda were read into the record. Chair Halstead opened the floor for public comment on consent agenda items; there being no one wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. There being no objection; SO ORDERED. *All items listed with an asterisk(*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. APPROVAL OF MINUTES 1. *Regular Meeting of March 13, 2024 Approved by the consent agenda. Planning & Zoning Commission Meeting May 8, 2024 Page 1 of 5 Page 196 C. SCHEDULED PUBLIC COMMENTS -None. D. UNSCHEDULED PUBLIC COMMENTS -None. E. CONSIDERATION OF PLATS -None. F. PUBLIC HEARINGS 1. Resolution No. PZ2024-08 -Granting a Conditional Use Permit to Two (2) Six-Unit Apartment Buildings on the Property Located at 2150 Redoubt Avenue within the Rural Residential (RR) Zoning District. MOTION: Commissioner Twait MOVED to approve Resolution PZ2024-08. Vice Chair Coston SECONDED the motion. Planning Director Mitchell presented the staff report as provided in the packet, and explained that the applicant has requested a conditional use permit (CUP) for two six-unit apartment buildings for senior housing. It was noted that both buildings would be under the same CUP, but the project would be phased with one building this year and another building the following year. The criteria for CUPs were reviewed; it was noted the application met the criteria and City staff recommends approval subject to the following conditions: 1. Further development of the property shall conform to all Federal, State of Alaska, and local regulations. 2. Phase 1 will consist one (1) six-unit apartment building with on-site improvements, such as the perimeter/interior landscaping adjacent to the constructed building and paving the fire apparatus access road and driveway. Phase 2 will consist of a second identical or similar 6-unit apartment building within the next two (2) years. 3. Provide a recreation area for the residents, such as a community garden or outdoor patio area in either the northwest or northeast corners of the property, subject to setback requirements. 4. A biennial fire inspection must be completed by the City of Kenai Fire Marshal. 5 . The applicant will meet with City staff for on-site inspections when requested. Applicant Dana Gregoire clarified that this development is another two phases of senior housing with identical layouts to others built on Redoubt Avenue; the land was donated by the City for this purpose. Chair Halstead opened the floor for public hearing; there being no one wishing to be heard, the public hearing period was closed. Vice Chair Coston spoke in support, noting that he looked forward to seeing the development of affordable housing . Gregoire provided information on the status of waiting lists for senior housing and low-income family units , hearing and mobility impairment accessibility, rental rates and funding. Chair Halstead spoke in support. VOTE: YEA: Twait, Woodard, Barbaza, Pettey, Coston, Halstead NAY: None MOTION PASSED WITHOUT OBJECTION. [Clerk's note: Commissioner Fikes abstained from discussion and voting on Resolution PZ2024-08 pursuant to KMC 14 .05.025(e)] Chair Halstead noted the 15-day appeal period. Planning & Zoning Commission Meeting May 8, 2024 Page 2 of 5 Page 197 2. Resolution PZ2024-09 -Granting an Encroachment Permit for a Residential Detached Accessory Structure to Encroach into the Required (West) Side Yard Setback on the Property Located at 3018 Bree Avenue within the Rural Residential (RR) Zoning District. MOTION: Vice Chair Coston MOVED to approve Resolution PZ2024-09. Commissioner Twait SECONDED the motion. Planning Director Mitchell presented the staff report as provided in the packet, and explained that the applicant has requested an encroachment permit for a one-story detached accessory structure which would encroach 8.25 feet into the required 15-foot side yard setback, or 6. 75 feet away from the property line. The criteria for encroachment permits were reviewed; it was noted the application met the criteria and City staff recommends approval subject to the following conditions: 1. An as-built survey by a registered professional land surveyor must be submitted to the Building Official prior to the issuance of the Certificate of Occupancy. 2. Prior to the building permit issuance, Lots 34 and 35 of Shoreline Heights 2014 Addition Phase 1 must be consolidated or merged. Applicant Ryan Bolton noted that he had estimated the encroachment distance using the Kenai Peninsula Borough parcel viewer map but it may be as close as two or three feet from the property line, and that he was currently in the process of merging the two properties. Chair Halstead opened the floor for public hearing; there being no one wishing to be heard, the public hearing period was closed. Clarification was provided that the easement had been removed in the original plat; that setback requirements are based on zoning and density; and that the applicant's proposed location for the structure was chosen because it is the most optimal spot on the property where it would be farther from the neighbor's house, easier for vehicular access and closer to the applicant's residence. The applicant requested an increase in the encroachment to 12 feet into the setback and three feet from the west property line, to allow for possible discrepancy in the original estimated distance. MOTION TO AMEND: Commissioner Twait MOVED to amend Resolution PZ2024-09 by increasing the encroachment distance to three feet from the property line. Commissioner Pettey SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend. There being no objection; SO ORDERED. Chair Halstead stated that he was not in support of the increased encroachment distance, although he noted that the neighboring property owner had not spoken in opposition. Commissioner Twait stated support but encouraged the applicant to minimize the encroachment as much as possible. VOTE: YEA: Pettey, Coston, Twait, Woodard, Barbaza NAY: Halstead MOTION PASSED. [Clerk's note: Commissioner Fikes abstained from discussion and voting on Resolution PZ2024-08 pursuant to KMC 14.05.025(e)] Chair Halstead noted the 15-day appeal period. G. UNFINISHED BUSINESS -None. H. NEW BUSINESS Planning & Zoning Commission Meeting May 8, 2024 Page 3 of 5 Page 198 1. *Action/Approval-Requesting an Excused Absence for the March 13, 2024 Regular Meeting -Pettey Approved by the consent agenda. 2. *Action/Approval -Recommending Approval of a Lease of Airport Reserve Land for the Property Described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5. Approved by the consent agenda. 3. *Action/Approval -Recommending Approval of a Lease of Airport Reserve Land for the Property Described as Lot 5A, Block 1, FBO Subdivision 2018 Replat. Approved by the consent agenda . 4. Discussion/Recommendation -Recommendation to Council on Enactment of Ordinance No. 3416-2024 -An Ordinance Repealing, Reenacting and Renaming Kenai Municipal Code Chapter 1.90 -Standard Procedures For Boards, Commissions and Committees, Enacting Chapter 1. 95 -Standing Advisory Commissions, Repealing Chapters 11.10 -Harbor Commission, Chapter 19.05 Parks And Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section 14.05.050 -Planning and Zoning Commission -Qualifications and Membership, and Approving Amendments to the Council on Aging Commission's By-Laws to Organize Streamline, and Improve the Efficiency of the City's Standing Commissions. MOTION: Vice Chair Coston MOVED to recommend Council enactment of Ordinance No. 3416-2024 . Commissioner Twait SECONDED the motion. City Clerk Saner summarized the report as provided in the packet, noting that the proposed new code had substantial structural changes. UNANIMOUS CONSENT was requested. There being no objection; SO ORDERED. I. REPORTS 1. Planning Director -Planning Director Mitchell reported on the following: • Attended Comprehensive Safety Action Plan public workshop at Kenai River Center; City is partnering with the Borough to get community feedback on areas where traffic safety can be improved. • Storefront and Streetscape Improvement Program application period is open until May 17, 2024. • Hoping to go live with new code enforcement software in June . • City Council Budget Work session took place on May 4, 2024; reviewed FY2025 changes to the Planning & Zoning budget. 2. Commission Chair -No report. 3. Kenai Peninsula Borough Planning -Commissioner Fikes reported on recent actions of the Kenai Peninsula Borough Planning Commission. 4. City Council Liaison -Council Member Douthit reported on recent actions of the City Council. J. ADDITIONAL PUBLIC COMMENT -None. K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: May 22, 2024 Planning & Zoning Commission Meeting May 8, 2024 Page 4 of 5 Page 199 Vice Chair Coston noted he would be attending remotely for the May 22, June 12, and June 26 scheduled meetings. L. COMMISSION COMMENTS AND QUESTIONS Vice Chair Coston and Commissioner Twait thanked Joe Halstead for serving as Chair. M. PENDING ITEMS -None. N. ADJOURNMENT 0. INFORMATIONAL ITEMS-None. There being no further business before the Planning & Zoning Commission, the meeting was adjourned at 8:12 p.m. I certify the above represents accurate minutes of the Planning & Zoning Commission meeting of May 8, 2 □~­ MeghanThf:o¥eit- Deputy City Clerk Planning & Zoning Commission Meeting May 8, 2024 Page 5 of 5 Page 200 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Terry Eubank, City Manager DATE: April 23, 2024 SUBJECT: Quarterly Financial Report – March 31, 2024 Attached is a relatively easily produced quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of March 31, 2024. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough through February. The first calendar quarter 2024 sales tax filings and tax payments are not in at this point and we will not be received for this quarter until the end of April or early May. State and Federal is below budget in all funds because of PERS aid. The State doesn’t actually give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly, we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we will record revenue and expenditures for these items. Page 201 Quarterly General Fund Expenditure Report For Quarter Ended March 31, 2024 Original * FY2023 FY2024 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 605,267$ 673,959$ -$ (673,959)$ 0.00% Taxes 14,134,685 14,320,890 14,320,890 10,210,114 (4,110,776) 71.30% Licenses/Permits and Ambulance 1,310,312 1,113,650 1,113,650 1,006,035 (107,615) 90.34% State/Federal 596,247 489,040 512,290 246,453 (265,837) 48.11% Dock/Multipurpose/Miscellaneous 243,131 198,000 198,000 213,832 15,832 108.00% Fines and Forfeitures 117,959 74,200 74,200 61,958 (12,242) 83.50% Interest and Miscellaneous 710,616 826,438 831,938 1,046,541 214,603 125.80% Transfers/Central Admin Fees 1,948,766 2,011,109 2,011,109 1,376,525 (634,584) 68.45% Total Revenues 19,061,716 19,638,594 19,736,036 14,161,458 (5,574,578) 71.75% EXPENDITURES & TRANSFERS General Government 01 City Clerk 363,865$ 368,599$ 368,599$ 256,576$ 112,023$ 30.39% 11 Legislative 154,636 175,687 175,687 118,255 57,432 32.69% 12 Legal 362,210 434,325 434,325 296,084 138,241 31.83% 13 City Manager 503,562 574,159 573,809 362,739 211,070 36.78% 14 Human Resources 146,292 244,100 244,839 149,114 95,725 39.10% 15 Finance 867,746 956,647 956,647 626,621 330,026 34.50% 16 Land Administration 24,775 63,400 63,400 292 63,108 99.54% 18 Non-Departmental 825,656 1,073,465 1,072,727 720,143 352,584 32.87% 19 Planning and Zoning 218,752 313,763 327,513 183,236 144,277 44.05% 20 Safety 1,550 5,900 5,900 660 5,240 88.81% Total General Government 3,469,044 4,210,047 4,223,447 2,713,720 1,509,727 35.75% Public Safety 21 Police 3,588,735 3,863,607 3,878,607 2,655,703 1,222,904 31.53% 22 Fire 3,488,927 3,746,081 3,746,081 2,621,927 1,124,154 30.01% 23 Communications 930,882 985,445 985,445 659,613 325,832 33.06% 29 Animal Control 483,320 506,600 512,100 345,077 167,023 32.62% Total Public Safety 8,491,864 9,101,733 9,122,233 6,282,320 2,839,913 31.13% Public Works 31 Public Works Administration 169,606 199,815 199,815 126,200 73,615 36.84% 32 Shop 698,556 780,848 780,848 450,835 330,013 42.26% 33 Streets 971,668 1,113,284 1,148,226 672,367 475,859 41.44% 34 Buildings 394,075 489,584 489,584 260,034 229,550 46.89% 35 Street Lighting 203,814 231,339 231,339 166,040 65,299 28.23% 60 Dock 32,584 64,065 64,065 18,615 45,450 70.94% Total Public Works 2,470,303 2,878,935 2,913,877 1,694,091 1,219,786 41.86% Parks and Recreation & Culture 03 Visitor Center 147,631 157,191 157,541 116,608 40,933 25.98% 40 Library 955,669 979,319 987,569 699,416 288,153 29.18% #Parks, Recreation & Beautification 1,234,626 1,366,590 1,386,590 894,731 491,859 35.47% Total Parks and Recreation & Culture 2,337,926 2,503,099 2,531,699 1,710,755 820,944 32.43% Total Operating Expenditures 16,769,137 18,693,814 18,791,256 12,400,886 6,390,370 34.01% Transfer to other funds Street Improvement Capital Project Fund 1,087,000 174,320 174,320 254,320 (80,000) -45.89% Kenai Recreation Center Capital Project Fund 490,000 75,000 75,000 75,000 - 0.00% Public Safety Capital Project Fund 120,000 95,512 95,512 95,512 - 0.00% Municipal Facility Improvement Cap Proj Fund 80,000 - - - - - Multipurpose Facility Capital Proj. Fund - 94,847 94,847 94,847 - 0.00% Visitor Center Improvement Capital Proj. Fund 100,000 - - - - - Information Technology Capital Proj. Fund - - - - - - City Hall Improvement Capital Proj. Fund - 50,000 50,000 50,000 - 0.00% Animal Shelter Capital Project Fund - - - - - - Public Safety Building Capital Proj. Fund - - - - - - Kenai Fine Arts Center Imp. Cap. Proj. Fund - - - - - - Kenai Cemetery Imp. Capital Project Fund - - - - - - Kenai Senior Center Imp. Capital Project Fund - - - - - - Park Improvement Capital Project Fund 120,000 125,000 125,000 125,000 - 0.00% Senior Citizen Special Revenue Fund 241,562 199,476 199,476 99,738 99,738 50.00% Debt Service 130,250 130,625 130,625 114,000 16,625 12.73% Total Transfer to other funds 2,368,812 944,780 944,780 908,417 36,363 3.85% Total Expenditures & Transfers 19,137,949 19,638,594 19,736,036 13,309,303 6,426,733 32.56% Net Revenues over(under) Expenditures (76,233)$ -$ -$ 852,155$ 852,155$ *Note: The original budget includes outstanding encumbrances at 6/30/2023. Page 202 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Terry Eubank, City Manager DATE: May 20, 2024 SUBJECT: March 2024 Quarterly Investment Report City of Kenai Investment Portfolio At March 31, 2024 the City had investments with a market value of $35,595,612. That is up from $34,021,865 at December 31, 2023. The City’s portfolio is yielding 4.14% that is down from 4.18% at December 31, 2023. There was no change to the Federal Fund Rate during the quarter with the rate staying at 5.50%-5.25%. Fair market value adjustments to the portfolio through March 31, 2024 are a negative $605,470. As of June 30, 2023, the portfolios fair market value adjustment was a negative $983,755. Rates are projected to decrease and further decreasing the negative fair market value adjustment but lower yield for the portfolio will also occur. City’s Investment Portfolio US Agency Securities $17,739,217 AML Investment Pool 4,009,588 Wells Fargo Money Market 10,308,857 FDIC Insured Certificates of Deposit 1,921,253 Bank Balance 1,616,697 Total $ 35,595,612 Permanent Fund Investments First quarter 2024 saw gains in the equity markets. Returns for the first quarter of 2024 were 4.09%. Since inception the portfolio has returned 7.48%. As of March 31, 2024, the portfolio value was $35,540,361, comprised of $29,477,710, 82.94% Airport Land Sale Permanent Fund, $3,804,352, 10.71% General Land Sale Permanent Fund monies, $1,254,845, 3.53% Kenai Senior Connection monies, $801,241, 2.25% Kenai Senior Center Cone Memorial Trust monies, and $202,211, 0.57% Kenai Community Foundation holdings. The FY2024 Airport Land Sale Permanent Fund allowable transfer is $1,065,518 and it will be made on June 1, 2024. The FY2024 General Land Sale Permanent Fund allowable transfer is $146,180 and it will also be made on June 1, 2024. Page 203 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY March 31, 2024 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 1,616,697$ 0.01% Wells Fargo Secured Money Market 10,308,857 5.36% FDIC Insured Certificates of Deposit 1,921,253 2.89% Alaska Municipal League Investment Pool 4,009,588 5.36% Total Cash & Cash Equivalents 17,856,395 4.61% Average Yield Government Securities Maturities Less than 1 Year 8,656,093 3.88% Maturities 1 to 2 Years 2,726,189 4.57% Maturities Greater than 2 Years 6,356,935 2.99% Total Government Securities 17,739,217 3.67% Total Portfolio 35,595,612$ 4.14% Investment Portfolio - Purchase Price 36,579,367$ Investment Portfolio - Fair Value 03/31/24 35,595,612 Fair Value Adjustment - 06/30/23 (983,755) Fair Value Adjustment thru - 03/31/2024 378,285 Cummulative Change in Fair Value (605,470)$ March 31, 2024 $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 Liquidity 20% Minimum Maturity 1 - 2 years Maturity over 2 years 30% Maximum Portfolio Liquidity Policy Minimum/Maximum Actual Page 204 CITY OF KENAI Investments 03-31-24 COK CITY OF KENAI INVESTMENTS 3/31/2024 Current year cost or Unrealized Expected Call 06/30/23 03/31/24 Gain Accrued EFFECT. DATE DATE SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE PURCH. DUE FHLB 4.625 12/13/24 Bullet 3130ATUR6 2,542,786.81 2,477,825.00 2,490,225.00 12,400.00 34,687.50 4.625 1/26/2023 12/13/2024 FHLB 4.725 4/15/24 Bullet 3130AU6R0 1,001,925.00 992,630.00 999,760.00 7,130.00 21,787.50 4.725 12/27/2022 4/15/2024 FNMA 5.20 4/26/24 Quarterly W/10 Days 3135GAH87 1,000,000.00 995,320.00 999,960.00 4,640.00 22,388.89 5.200 4/26/2023 4/26/2024 FNA 2017-M1 A2 Bullet 3136AUG21 140,638.58 134,996.01 137,646.36 2,650.35 293.62 3.223 5/5/2022 10/25/2026 FHR 2011-3824 CL JY Mtge Bullet 3137A7SV3 156,895.42 144,242.08 149,214.62 4,972.54 503.00 3.045 4/27/2022 3/15/2026 FHMS K047 A1 Bullet 3137BKRH5 22,212.16 4,516.94 5,629.15 1,112.21 13.31 0.297 4/14/2021 12/25/2024 FHR 4543 VH Mtge Bullet 3137BMQ58 421,520.69 397,061.21 407,228.65 10,167.44 1,056.68 3.094 6/15/2022 6/15/2027 FHMS K053 A1 Bullet 3137BN6F6 176,054.45 139,982.35 144,812.53 4,830.18 312.89 0.383 11/27/2020 2/25/2025 FHMS K057 AM Bullet 3137BRQK4 1,201,808.86 1,153,749.35 1,173,842.80 20,093.45 2,700.53 3.357 8/16/2022 8/25/2026 FHMS K064 A2 Bullet 3137BXQY1 1,009,373.33 950,030.00 960,170.00 10,140.00 2,686.67 3.010 5/16/2022 3/25/2027 FHMS KMP1 A1 Bullet 3137FATD0 76,979.30 60,957.97 64,114.24 3,156.27 120.68 0.302 4/14/2021 8/25/2024 FHMS K732 A2 Bullet 3137FG7F6 2,494,031.91 2,476,846.04 2,506,158.55 29,312.51 7,858.56 4.719 11/29/2022 9/25/2025 FN Am47124 Bullet 3138L74J2 810,084.99 712,164.73 725,444.02 13,279.29 1,978.37 0.759 11/20/2020 12/1/2024 FN AM7514 Bullet 3138L8K45 970,170.56 962,010.00 979,220.00 17,210.00 2,643.61 4.529 1/3/2023 2/1/2025 FN AN4476 Bullet 3138LG6N1 2,365,268.34 2,176,967.01 2,204,674.51 27,707.50 6,346.55 3.193 2/28/2022 1/1/2027 FHR 2935 AC Mtge Bullet 31395MQ28 11,415.12 4,348.99 4,503.00 154.01 18.92 0.487 2/5/2021 2/15/2025 FN BL4497 Bullet 3140HV7K4 962,116.24 875,365.90 889,862.21 14,496.31 2,173.78 2.137 3/2/2022 11/1/2026 FN BL5704 Bullet 3140HXKS8 473,596.59 448,791.25 456,626.78 7,835.53 1,073.51 3.158 6/13/2022 2/1/2027 G2 5122 Mtge Bullet 36202FVP8 148,859.79 124,419.37 126,883.69 2,464.32 377.58 0.874 11/16/2021 7/20/2026 GNR 2010-114 CL KB Bullet 38377KBE9 79,334.83 68,650.05 70,815.94 2,165.89 238.84 2.327 4/29/2022 9/16/2025 T 2 1/4 3/31/24 Bullet 91282CEG2 745,378.28 732,450.00 750,000.00 17,550.00 8,437.50 3.160 8/12/2022 3/31/2024 T 2 1/2 4/30/24 Bullet 91282CEK3 747,063.91 732,097.50 748,267.50 16,170.00 7,881.18 3.160 8/12/2022 4/30/2024 T 3 7/31/24 Bullet 91282CFA4 748,311.20 730,987.50 744,157.50 13,170.00 3,770.60 3.170 8/12/2022 7/31/2024 TOTAL 18,305,826.36 17,496,409.25 17,739,217.05 242,807.80 129,350.27 2.736 3.882 4.57 2.99 FDIC Insured CD's CD - 12/31/10 3.4 GMATBK 8/4/25 57803 02007GXF5 245,114 235,312.70 239,872.15 4,559.45 1,300.85 3.400 8/9/2022 8/4/2025 1.75 SECSTB 12/18/24 8941 062163BN9 245,000 232,237.95 240,281.30 8,043.35 1,163.92 1.750 12/18/2019 12/18/2024 3.40 COF 8/10/27 33954 14042TJK4 245,000 227,862.25 234,413.55 6,551.30 1,026.99 3.400 8/10/2022 8/10/2027 1.75 CNBMIL 12/9/24 3814 17801GBW8 245,000 232,441.30 244,620.25 12,178.95 5,269.18 1.750 12/9/2019 12/9/2024 3.40 DFS 8/16/27 5649 254673Q41 245,000 227,805.90 238,982.80 11,176.90 164.45 3.400 8/16/2022 8/16/2027 1.85 LIVOAK 12/11/24 58665 538036HF4 245,000 232,737.75 239,169.00 6,431.25 270.17 1.850 12/11/2019 12/11/2024 2.80 SALLMA 4/17/24 58177 7954502H7 245,000 240,087.75 239,306.20 (781.55) 384.95 2.590 5/7/2019 4/17/2024 5.00 WAL 10/28/24 57512 95763PLV1 245,000 243,542.25 244,608.00 1,065.75 3,138.68 5.000 4/27/2023 10/28/2024 TOTAL FDIC Insured CD's 1,960,114.11 1,872,027.85 1,921,253.25 49,225.40 12,719.19 2.893 WELLS MONEY MKT 10,308,856.98 10,308,856.98 10,308,856.98 44,987.28 5.360 AML POOL - City ACCT Agreed to Amlip 4,009,588.21 4,009,588.21 4,009,588.21 16,038.16 5.360 Agreed to GL 34,584,385.66 33,686,882.29 33,978,915.49 292,033.20 203,094.90 WF Cash Agreed to WF 1,616,696.99 1,616,696.99 1,616,696.99 - - 0.010 TOTAL 36,201,082.65 35,303,579.28 35,595,612.48 292,033.20 203,094.90 MONTHS (605,470.17) TOTAL CURRENT YIELD 4.1408% Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 10,678,683.74 3.0214% 6,830,331 3,848,352.39 OK 6000000 Liquidity 20% Minimum 7,119,122.50 4.3992% 25,799,220 (18,680,097.38) OK Maturity 1 - 2 years 4.4710% 2,966,061 4.1408% 35,595,612 - Page 205 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY March 31, 2024 Current or Current Average Portfolio Target Portfolio 31-Mar-23 30-Jun-23 30-Sep-23 31-Dec-23 31-Mar-24 Yield Weight Weight Maximum Cash Cash & Cash Equivalents 793,407 913,140 948,884 1,308,042 1,128,803 5.31% 3.83% 3.00% 10.00% Fixed Income Investment Grade Government & Corporate Securities Government Securities 6,340,844 6,612,561 6,319,451 6,940,375 7,328,908 4.73% 20.33% Corporate Securities Investment Grade 1,934,718 1,976,261 1,769,098 1,885,811 2,087,936 5.39%5.52% Total Investment Grade Government & Corporate Securities 8,275,562 8,588,822 8,088,549 8,826,186 9,416,844 4.89% 25.85% 26.00% 36.00% Domestic Fixed Income Exchange Traded Funds - Vanguard Short-term TIPS 326,850 464,858 - - - 0.00% High Yield Domestic - SPDR Portfolio High Yield Bonds 27,323 27,157 - - - 0.00% Vanguard Hi Yield Corporate Fund Admiral Shares 1,253,182 1,235,782 1,250,762 1,321,228 1,364,730 3.87% Total High Yield Domestic 1,280,505 1,262,939 1,250,762 1,321,228 1,364,730 3.87%4.00%8.00% Total Fixed Income 9,882,917 10,316,619 9,339,311 10,147,414 10,781,574 4.89% 29.72% 30.00% 44.00% Equities: Domestic Equities: Large-Cap Index 7,135,090 7,270,411 6,921,490 7,359,149 8,042,786 21.56% 22.00% 32.00% Small-Cap Index 1,509,958 1,552,414 1,595,049 1,826,236 1,744,116 5.35% 5.00% 10.00% Mid-Cap Index 3,046,448 3,151,357 3,179,061 3,514,258 3,786,897 10.29%10.00%18.00% Total Domestic Equities 11,691,496 11,974,182 11,695,600 12,699,643 13,573,799 37.20% 37.00% 60.00% International Equities: International Equity 2,566,238 2,564,393 2,506,111 2,739,781 2,890,317 8.03% 8.00% 16.00% Emerging Markets 1,543,374 1,543,073 1,569,042 1,667,623 1,756,309 4.88%5.00%10.00% Total International Equities 4,109,612 4,107,466 4,075,153 4,407,404 4,646,626 12.91%13.00% 26.00% Real Estate: JP Morgan Beta Builders MSCI Reit 591,337 581,769 626,986 729,274 658,865 2.14% Total Real Estate 591,337 581,769 626,986 729,274 658,865 2.14% 2.00% 4.00% Infrastructure - Flexshares Stoxx Global Broad Infrastucture 1,577,254 1,573,411 1,546,153 1,707,934 1,734,647 5.00%5.00%10.00% Total Equities 17,969,699 18,236,828 17,943,892 19,544,255 20,613,937 57.25%57.00%100.00% Alternative Beta: Blackrock Systematic Multi-Strategy 1,535,944 1,249,468 1,556,892 1,558,476 756,883 4.56% IQ Hedge Multi-Strategy Tracker 479,219 577,240 781,321 815,055 945,975 2.39% JPMORGAN:HEDGED EQ I - - - - 941,799 0.00% Core Alternative ETF 1,159,701 1,040,448 770,206 767,136 371,390 2.25% Total Alternative Beta 3,174,864 2,867,156 3,108,419 3,140,667 3,016,047 9.20%10.00%15.00% Total Portfolio 31,820,887 32,333,743 31,340,506 34,140,378 35,540,361 4.90%100.00%100.00%169.00% Total ALSPF Balance 29,477,710 26,818,093 25,994,288 28,316,544 29,477,710 Total GLSPF Balance 3,804,353 3,461,107 3,354,787 3,654,494 3,804,352 Total Kenai Community Foundation 202,211 183,967 178,316 194,246 202,211 Total Kenai Senior Connection 1,254,845 1,141,627 1,106,558 1,205,415 1,254,845 Total Cone Memorial Trust Permanent Fund - 728,949 706,557 769,679 801,241 Fair Market Value 0.00% 25.00% 50.00% Cash Fixed Income Large-Cap Index Small-Cap Index Mid-Cap Index International Equity Emerging Markets Real Estate: Infrastructure - Alternative Beta: Portfolio Composition Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight Portfolio 102,202.28 35,540,359.44 100.00% Benchmark (0.15) (0.10) (0.05) - 0.05 0.10 Portfolio Performance Page 206 $15,000,000 $17,000,000 $19,000,000 $21,000,000 $23,000,000 $25,000,000 $27,000,000 $29,000,000 $31,000,000 $33,000,000 Total ALSPF Balance Transfer of $1,210,348 to Airport Operations. Transfer of $1,028,478 to Airport Operations. $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Total GLSPF Balance $- $50,000 $100,000 $150,000 $200,000 $250,000 Total Kenai Community Foundation Balance Transfer of $1,203,690 to Airport Operations. Transfer of $161,561 to General Fund Operations. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Total Kenai Senior Connection Balance Initial investment. Transfer of $137,239 to General Fund Operations. Transfer of $928,251 to Airport Operations. Transfer of $148,315 to General Fund Operations. Transfer of $1,012,722 to Airport Operations. Transfer of $157,043 to General Fund Operations. Transfer of $1,025,736 to Airport Operations. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 Total Cone Memorial Trust Permanent Fund Initial investment. Page 207 March 2024 CITY OF KENAI PERMANENT FUNDS Investment Report Page 208 BEGINNING VALUE + ACCRUED $34,720,279 TRANSFERS IN/ OUT -$506 REALIZED GAINS/ LOSSES -$83,190 CHANGE IN MARKET VALUE $820,176 INTEREST INCOME $40,704 DIVIDEND INCOME $49,919 ENDING VALUE + ACCRUED $35,547,381 Investment Performance Portfolio Composition Performance is annualized for periods greater than one year. Inception to date performance begins October 01, 2008Past performance is not indicative of future results. Portfolio Overview 2 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | MARCH 2024 Page 209 3 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | MARCH 2024 Portfolio Summary and Target MARKET VALUE ($)ASSETS (%)TARGET (%)RANGE RISK CONTROL U.S. Fixed Income 9,410,465 26.5%26%6% to 36% Cash 1,167,957 3.3%3%0% to 10% Risk Control Total 10,578,422 29.8% RISK ASSET U.S. High Yield Fixed Income 1,357,870 3.8%4%0% to 8% U.S. Large Cap Equity 8,026,605 22.6%22%12% to 32% U.S. Mid Cap Equity 3,790,053 10.7%10%0% to 18% U.S. Small Cap Equity 1,745,210 4.9%5%0% to 10% Developed International Equity 2,883,859 8.1%8%4% to 16% Emerging Market Equity 1,758,861 4.9%5%0% to 10% Risk Asset Total 19,562,458 55.0% ALTERNATIVES REITs 658,040 1.9%2%0% to 4% Alternative Beta 3,015,925 8.5%10%0% to 15% Infrastructure 1,732,537 4.9%5%0% to 10% Alternatives Total 5,406,502 15.2% TOTAL PORTFOLIO 35,547,381 100.0% We urge you compare the account statement we provide with the account statement you receive from your custodian. We cannot guarantee the accuracy of this information for tax purposes. Please verify all information from trade confirmations. Past performance is not indicative of future results. Page 210 4 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | MARCH 2024 S&P 500 Total Return Index The S&P 500® Index is the Standard & Poor’s Composite Index and is widely regarded as a single gauge of large cap U.S. equities. It is market cap weighted and includes 500 leading companies, capturing approximately 80% coverage of available market capitalization. S&P MidCap 400 Total Return Index The S&P MidCap 400 Index, more commonly known as the S&P 400, is a stock market index from S&P Dow Jones Indices. The index serves as a barometer for the U.S. mid-cap equities sector and is the most widely followed mid-cap index. S&P Small Cap 600 Total Return Index The S&P SmallCap 600® seeks to measure the small-cap segment of the U.S. equity market. The index is designed to track companies that meet specific inclusion criteria to ensure that they are liquid and financially viable. MSCI EAFE Net Total Return USD Index The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Index consists of the following 21 developed market countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. MSCI Emerging Net Total Return USD Index The MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 26 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. STOXX Global Broad Infrastructure Index Net Return USD The STOXX Global Broad Infrastructure Index is derived from the STOXX. Developed and Emerging Markets Total Market Index (TMI) and offers a diversified representation of companies that generate more than 50% of their revenue from selected infrastructure sectors. STOXX partnered with Revere Data, which defines 17 subsectors for the infrastructure industry. These 17 subsectors are rolled into five supersectors - Communications, Energy, Government Outsourcing/Social, Transportation and Utilities. S&P USA REIT USD Total Return Index The S&P United States REIT Index defines and measures the investable universe of publicly traded real estate investment trusts domiciled in the United States. Disclosures Bloomberg Commodity Index Total Return The Bloomberg Commodity Index provides broad-based exposure to commodities, and no single commodity or commodity sector dominates the index. Rather than being driven by micro-economic events affecting one commodity market or sector, the diversified commodity exposure of the index potentially reduces volatility in comparison with non- diversified commodity investments. Wilshire Liquid Alternative Total Return Index The Wilshire Liquid Alternative Index℠ measures the collective performance of the five Wilshire Liquid Alternative strategies that make up the Wilshire Liquid Alternative Universe. Created in 2014, with a set of time series of data beginning on December 31, 1999, the Wilshire Liquid Alternative Index (WLIQA) is designed to provide a broad measure of the liquid alternative market by combining the performance of the Wilshire Liquid Alternative Equity Hedge Index (WLIQAEH), Wilshire Liquid Alternative Global Macro Index (WLIQAGM), Wilshire Liquid Alternative Relative Value Index (WLIQARV), Wilshire Liquid Alternative Multi- Strategy Index (WLIQAMS), and Wilshire Liquid Alternative Event Driven Index (WLIQAED). Bloomberg US Agg Total Return Value Unhedged USD The Bloomberg U.S. Aggregate Index measures the performance of investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government- related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS. It rolls up into other flagship indices, such as the multi-currency Global Aggregate Index and the U.S. Universal Index, which includes high yield and emerging markets debt. Bloomberg VLI: High Yield Total Return Index Value Unhedged USD The Bloomberg VLI: High Yield Total Return Index is a component of the US Corp High Yield Index that is designed to track a more liquid component of the USD-denominated, high yield, fixed-rate corporate bond market. Bloomberg GLA xUSD Float Adj RIC Capped Index TR Index Value Hedged USD The Bloomberg Barclays Global Aggregate ex-USD Float-Adjusted RIC Capped Index is a customized subset of the Global Aggregate Index that meets the same diversification guidelines that a fund must pass to qualify as a regulated investment company (RIC). This multi-currency benchmark includes fixed-rate treasury, government-related, corporate and securitized bonds from developed and emerging markets issuers while excluding USD denominated debt. The Global Aggregate ex-USD Float Adjusted RIC Capped Index is largely comprised of two major regional aggregate components: the Pan-European Aggregate and the Asian-Pacific Aggregate Index. FTSE 3 Month Treas Bill Local Currency The FTSE 3 Month US T Bill Index Series is intended to track the daily performance of 3 month US Treasury bills. The indices are designed to operate as a reference rate for a series of funds. Page 211 5 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | MARCH 2024 Disclosures Bloomberg Muni 1-15 Year Blend (1-17) Total Return Index Value The Bloomberg Municipal 1-15 Year Index measures the performance of USD-denominated long-term, tax-exempt bond market with maturities of 1-15 years, including state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Bloomberg Intermediate US Govt/Credit TR Index Value Unhedged The Bloomberg U.S. Government Intermediate Index measures the performance of the U.S. Treasury and U.S. agency debentures with maturities of 1-10 years. It is a component of the U.S. Government/Credit Index and the U.S. Aggregate Index. Bloomberg 1-5 Yr Gov/Credit Total Return Index Value Unhedge The Bloomberg US 1-5 year Government/Credit Float-Adjusted Bond Index is a float- adjusted version of the US 1-5 year Government/Credit Index, which tracks the market for investment grade, US dollar-denominated, fixed-rate treasuries, government-related and corporate securities. FTSE High Dividend Yield Total Return Index The FTSE High Dividend Yield Index is designed to represent the performance of companies with relatively high forecast dividend yields WisdomTree U.S. MidCap Dividend Index Total Return The WisdomTree U.S. MidCap Dividend Index is a fundamentally weighted index that measures the performance of the mid-capitalization segment of the US dividend-paying market. The Index is comprised of the companies that compose the top 75% of the market capitalization of the WisdomTree U.S. Dividend Index after the 300 largest companies have been removed. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. WisdomTree U.S. SmallCap Dividend Index Total Return The WisdomTree U.S. SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small-capitalization segment of the US dividend- paying market. The Index is comprised of the companies that compose the bottom 25% of the market capitalization of the WisdomTree U.S. Dividend Index after the 300 largest companies have been removed. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. Bloomberg U.S. Long Government/Credit Unhedged USD The Bloomberg U.S. Government Credit Long Index measures the performance of the non- securitized component of the U.S. Aggregate Index with maturities of 10 years and greater, including Treasuries, government-related issues, and corporates. It is a subset of the U.S. Aggregate Index. Bloomberg Intermediate US Govt/Credit TR Index Value Unhedged The Bloomberg U.S. Government Credit Intermediate Index measures the performance of the non-securitized component of the U.S. Aggregate Index with maturities of 1-10 years, including Treasuries, government-related issues, and corporates. It is a subset of the U.S. Aggregate Index. Bloomberg Municipal Bond 5 Year (4-6) Total Return Index Unhedged USD An index designed to measure the performance of tax-exempt U.S. investment grade municipal bonds with remaining maturities between four and six years. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees. MSCI ACWI IMI Net Total Return USD Index The MSCI ACWI Investable Market Index (IMI) captures large, mid and small cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. The MSCI AXWI IMI includes the following 23 developed market countries : Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom, and United States. The MSCI AXWI IMI includes the following 24 emerging market countries: : Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Bloomberg 1-3 Yr Gov Total Return Index Value Unhedged USD The Bloomberg U.S. Government/Credit 1-3 Year Index is an unmanaged index considered representative of performance of short-term U.S. corporate bonds and U.S. government bonds with maturities from one to three years. Bloomberg 1-5 Yr Gov TR Index Bloomberg Barclays Municipal 1-5 Yr TR USD includes all medium and larger issues of U.S. government, investment-grade corporate, and investment-grade international dollar- denominated bonds that have maturities of between 1 and 5 years and are publicly issued. ICE BofA US 3-Month Treasury Bill Index The ICE BofA 3 Month U.S. Treasury Index measures the performance of a single issue of outstanding treasury bill which matures closest to, but not beyond, three months from the rebalancing date. The issue is purchased at the beginning of the month and held for a full month; at the end of the month that issue is sold and rolled into a newly selected issue. Bloomberg US Treasury TIPS 0-5 Years Total Return Index Unhedged USD Bloomberg US Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index is a market value-weighted index that measures the performance of inflation-protected securities issued by the US Treasury that have a remaining average life between 0 and 5 years. Bloomberg U.S. Treasury Bellwethers: 1 Yr The Bloomberg U.S. Treasury Bellwethers 1 Yr. Index is an unmanaged index representing the on-the-run (most recently auctioned) U.S. Treasury bond with 1 years’ maturity. Page 212 Chartered Financial Analyst® (CFA®) are licensed by the CFA® Institute to use the CFA® mark. CFA® certification requirements: Hold a bachelor's degree from an accredited institution or have equivalent education or work experience, successful completion of all three exam levels of the CFA® Program, have 48 months of acceptable professional work experience in the investment decision-making process, fulfill society requirements, which vary by society. Unless you are upgrading from affiliate membership, all societies require two sponsor statements as part of each application; these are submitted online by your sponsors. Blake Phillips, CFA® blake@apcm.net Bill Lierman, CFA® Client Relationship Manager Portfolio Manager Page 213 JUNE 5, 2024 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET ACTION ITEM REQUESTED BY PAGE Add to Item E. 1. Ordinance No. 3418-2024 •Amendment Memo – Radio Advertising Douthit 2 Add to Item E. 5. Resolution No. 2024-20 •Attachment to Rec Center Fees Amendment Memo Askin 3 •Amendment Memo – Adopt-A-Bench Fees Askin 5 Add to Item E. 6. Resolution No. 2024-21 •Request to Postpone Indefinitely Administration 6 Add to Item G. 1. Resolution No. 2024-17 •Request to Postpone City Clerk 7 •Public Comment Administration 8 Add Item H.15. Discussion - Scheduling a Joint Work Session with the Planning and Zoning Commission on the Comprehensive Safety Action Plan (CSAP) Administration 9 1 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Council Member Alex Douthit DATE: June 3, 2024 SUBJECT: Ordinance 3418-2024 Requested Amendment The memo requests an amendment to the FY25 Budget Document. Radio Advertising would be utilized for City business related items to include: Hydrant Flushing, Road Closures and Construction Updates, Park Closures, Seasonal Parking Restrictions, Election Dates and Locations, Council and Commission Meetings. I support amending the FY2025 budget in the amount of $13,752. The following changes to the budget document are needed to include this amendment. Motion Thank you for your consideration. Amend the Draft FY2025 Budget Document as follows: General Fund – Legislative, page 84 Account Number 001-411-4534, Advertising. Increase the proposed budget amount by an additional $7,920. General Fund – Non-Departmental, page 110 Account Number 001-418-4534, Advertising. Increase the proposed budget amount by an additional $5,832. 2 Attachment to Council Member Askin’s Memo proposing amendments to the Parks and Recreation Fee Schedule shown in legislative tracking. New Text Underlined; [DELETED TEXT SMALL CAPS AND BRACKETED] Parks and Recreation Fees Multipurpose Facility hourly rate (reservation) $165.00 Kenai Recreation Center Weights/Cardio/Sauna - includes weight/cardio room, shower, sauna and gym. (When using the weight room, must be 16 or older unless accompanied by guardian) Day Pass: Adults $5.00 Day Pass: College Students, Veterans & Seniors (55 and older) $2.50 High School Students and younger FREE [VETERANS AND SENIORS (55 AND OLDER) $2.50] [ADULT ]10 visit punch card: Adults $40.00 10 visit punch card: College Students, Veterans & Seniors (55 and older) $20.00 [ADULT ]Monthly Pass: Adults $50.00 Monthly Pass: College Student, Veterans & Senior [MONTHLY PASS] (55 and older) $25.00 [BASKETBALL/PICKLEBALL - INCLUDES BASKETBALL GYM AND SHOWERS ADULTS $3.00 COLLEGE STUDENTS $3.00 HIGH SCHOOL STUDENTS AND YOUNGER FREE ADULT & COLLEGE STUDENT MONTHLY PASS (ALL AGES) $25.00 GYM PUNCH CARD - 12 VISITS (ALL AGES) $25.00] City League Basketball (per team) $325.00 Racquetball & Wallyball Court Rentals - per hour and includes showers for participants. Adult Racquetball or Wallyball $[10.00] 15.00 Racquetball or Wallyball Punch Card (10 hours all ages) $[80.00] 120.00 [ADULT WALLYBALL $12.00 WALLYBALL PUNCH CARD (10 HOURS ALL AGES) $100.00] Facility Rental - per hour Gym $50.00 1/2 Gym $25.00 [NON-PROFIT YOUTH ATHLETIC PROGRAMS FREE] Parks/Gazebos/Gardens Picnic Shelter 8:00 am - 3:00 pm $20.00 4:00 [AM] pm - 11:00 pm $20.00 Gazebo 8:00 am - 3:00 pm $25.00 4:00 [AM] pm - 11:00 pm $25.00 Community Garden Plot (each) $20.00 Adopt-A-Bench (Includes bench, installation and maintenance. Freight charges additional at actual cost.) $595.00 3 Personal Use Fishery Personal Use Fishery Day Use Parking 5 am to Midnight (vehicle or up to two atv's) $22.05 Personal Use Fishery Overnight Parking Before noon of the first day to noon of the second day (vehicle or up to two atv's and one tent) $60.64 After noon of the first day to noon of the second day (vehicle or up to two atv's and one tent) $49.61 Personal Use Fishery Camping (one tent) $27.56 Personal Use Fishery Vehicle Drop Off (vehicle or up to two atv's per day) $11.03 4 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Council Member Askin DATE: June 4, 2024 SUBJECT: Resolution 2024-20 Fee Schedule - Adopt-A-Bench Fee Amendment This memo is requesting an amendment to the fee for Adopt-A-Bench. The current fee is $595.00 for the bench, installation and maintenance, with an additional actual cost for freight charges. The cost of benches and freight continue to increase and this amendment proposes to change the cost to “Actual Cost” for both the bench, installation and freight. Motion Thank you for your consideration. Amend the City of Kenai, Schedule of Rates, Charges and Fees, Parks and Recreation Fees - Parks/Gazebos/Gardens, to change the Adopt-A-Bench fee to Actual Costs as follows: “Adopt-A-Bench (Maintenance [I]included[S].) [B]Bench, freight, and installation [AND MAINTENANCE. FREIGHT CHARGES ADDITIONAL] at actual costs.[)] $[595.00] Actual Costs” 5 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: June 3, 2024 SUBJECT: Resolution 2024-21 Requested to Postpone Indefinitely This memo requests postponement indefinitely to the budget transfer in the Airfield Fund, Airport Department for Amounts in Excess of Budget to postpone this Resolution indefinitely. A Resolution to conduct a budget transfer within a department of a fund is not necessary as per Ordinance No. 3307-2022 the City Manager has the authority to approve such a transaction. The following request to postpone indefinitely Resolution 2024-21 is respectfully requested. Thank you for your consideration. 6 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Shellie Saner, City Clerk DATE: June 4, 2024 SUBJECT: Resolution No. 2024-17 - Request to postpone until the June 19, 2024 regular meeting. Resolution No. 2024-17 was omitted from the Public Hearing Notice for the June 5, 2024 City Council Meeting. It is a customary practice to advertise the title of all Resolutions in the Notice of Public Hearing. The request for postponement is to ensure the all interested members of the public are well informed and have an opportunity to provide public comment on the Resolution. Your consideration is appreciated. 7 From:Davis, Katie A. To:Planning Department Subject:Rename Cook Inlet View Drive Date:Monday, June 3, 2024 1:28:28 PM CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. I would like to comment on the proposal to rename Cook Inlet View Drive to Cook Inlet Drive. Being a neighbor, I have watched the endless traffic that has used that street for Beach access and viewing. I believe renaming this street would cause less congestion and confusion to both our locals and visitors. The View in the name makes people think that they will have a view of the inlet. Since the city has put up signs of no trespassing, the traffic is worse, not only cars and motorhomes but also people who are on foot. Thank you for your consideration, Katie Davis This email has been scanned for email related threats and delivered safely by Mimecast. For more information please visit http://www.mimecast.com 8 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Linda Mitchell, Planning Director DATE: June 3, 2024 SUBJECT: Scheduling a Joint Work Session with the Planning and Zoning Commission on the Comprehensive Safety Action Plan (CSAP) The Administration met with R&M Consultants, Inc. (“R&M”) on May 9, 2024 to discuss the joint partnership with Kenai Peninsula Borough to create a Comprehensive Safety Action Plan (CSAP). R&M held several public workshops in May in addition to the survey that was closed on May 30, 2024. R&M will be conducting a work session at other participating cities and has requested to provide a work session with City Council on Wednesday, June 19th at 4:30 p.m. to 5:30 p.m. Staff is recommending a joint work session with the Planning and Zoning Commission to further promote awareness and collaboration on the CSAP. Thank you for your consideration. 9 Kenai City Council - Regular Meeting Page 1 of 4 June 05, 2024 Kenai City Council - Regular Meeting June 05, 2024 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS 1. Fiscal Year 2023 Audit Report, Joy Merriner, BDO USA, LLP. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. ENACTED AS AMENDED WITHOUT OBJECTION. Ordinance No. 3418-2024 - Adopting the Annual Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year Commencing July 1, 2024 and Ending June 30, 2025 and Committing $4,499,039 of General Fund, Fund Balance for Future Capital Improvements. (Administration) 2. ENACTED AS AMENDED WITHOUT OBJECTION. Ordinance No. 3419-2024 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.070 - Acting Positions, 23.30.030 - Probationary Period for Employees in the Classified Service, 23.30.110 – Travel Expense, 23.40.040 - Terminal Leave, 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, 23.55.030 - Qualification Pay, and 23.55.080 - Longevity Pay for Employees in the Classified Service, to Ensure Appropriate Compensation and Benefits to City Employees Comparable to Other Places of Public Employment Improving Recruitment and Retention of Qualified Employees. (Administration) 3. ENACTED WITHOUT OBJECTION. Ordinance No. 3420-2024 - Increasing Estimated Revenues and Appropriations in the General Fund and Municipal Roadway Improvements Capital Fund and Awarding a Construction Agreement and Corresponding Purchase Order for the 2024 Lilac Lane Roadway Improvement Project. (Administration) Kenai City Council - Regular Meeting Page 2 of 4 June 05, 2024 4. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-19 - Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2024 and Ending June 30, 2025. (Administration) 5. ADOPTED AS AMENDED WITHOUT OBJECTION. Resolution No. 2024-20 - Amending the Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes Included in the FY2025 Budget to Include Adjusting Airport Fees, Water Fees, Sewer Fees, and Adjusting the Monthly Rental Rates at Vintage Pointe. (Administration) 6. POSTPONED INDEFINITELY. Resolution No. 2024-21 - Authorizing a Budget Transfer in the Airfield Fund, Airport Department for Amounts in Excess of Budget. (Administration) 7. ADOPTED. Resolution No. 2024-22 - Authorizing a Budget Transfer in the Airport Terminal Improvements Capital Fund, and Awarding a Construction Contract and Corresponding Purchase Order for the Airport Landscaping Project. (Administration) 8. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-23 - Authorizing the City Manager to Execute a Lease of Airport Reserve Lands Between the City of Kenai and D & M Land Company, Limited Liability Corporation for Lot 9A, Block 5, General Aviation Apron Subdivision No. 5. (Administration) 9. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-24 - Authorizing the City Manager to Execute a Lease of Airport Reserve Lands Between the City of Kenai and Schilling Rentals, Limited Liability Corporation for Lot 5A, Block 1, FBO Subdivision 2018 Replat. (Administration) F. MINUTES 1. *Regular Meeting of May 15, 2024. (City Clerk) G. UNFINISHED BUSINESS 1. POSTPONED AS AMENDED TO 06/19/24. Resolution No. 2024-17 - Renaming Cook Inlet View Drive to Cook Inlet Drive. (Sounart) [On 05/15/24 this item was referred to the Planning and Zoning Commission for recommendation to Council and postponed to 06/05/24.] H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Special Use Permit to Crowley Fuels, LLC for Use of 35,000 Square Feet of Apron Space at the Kenai Municipal Airport for Aviation Fueling. (Administration) 3. *Action/Approval - Special Use Permit to Empire Airlines, Inc. for Use of 11,250 Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration) 4. *Action/Approval - Special Use Permit to Everts Air Fuel, Inc. for Use of 30,000 Square Feet of Apron Space at the Kenai Municipal Airport Aircraft Parking. (Administration) 5. *Action/Approval - Fourth Amendment to Agreement for Janitorial Services with Reborn Again Janitorial Service at the Kenai Municipal Airport. (Administration) 6. *Action/Approval - Special Use Permit to Kenai Aviation Operations, LLC. for Use of 2,714 Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration) 7. *Action/Approval - Special Use Permit to United Parcel Service Co., Inc. for Use of 4,000 Square Feet of Apron Space at the Kenai Municipal Airport for Aircraft Loading and Parking. (Administration) Kenai City Council - Regular Meeting Page 3 of 4 June 05, 2024 8. *Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of Joshua Belter to the Airport Commission. (Gabriel) 9. *Action/Approval - Confirmation of Mayoral Nomination for a Partial Term Appointment of Samantha Springer to the Beautification Committee. (Gabriel) 10. *Ordinance No. 3421-2024 - Increasing Estimated Revenues and Appropriation in the Kenai City Airport Snow Removal Equipment, Visitor Center, and Public Safety Capital Project Funds to Transfer Residual Balance from Completed Projects Back to their Original Funding Sources. (Administration) 11. *Ordinance No. 3422-2024 - Increasing Estimated Revenues and Appropriations in the General Fund and Public Safety Capital Project Fund for Cost in Excess of Projected Budgeted Amounts for Fire Department Flooring Replacement Phase 2. (Administration) 12. *Ordinance No. 3423-2024 - Increasing Estimated Revenues and Appropriations in the General Fund and Personal Use Fishery Fund for Annual Transfer from Personal Use Fishery Fund to the General Fund for Non-Departmental Expenses. (Administration) 13. APPROVED WITHOUT OBJECTION. Action/Approval - Airport Commission 2024 Work Plan. (City Clerk) 14. APPROVED WITHOUT OBJECTION. Action/Approval - Beautification Committee 2024 Work Plan. (City Clerk) I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION N. PENDING ITEMS O. ADJOURNMENT P. INFORMATION ITEMS Kenai City Council - Regular Meeting Page 4 of 4 June 05, 2024 The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. Registration is required to join the meeting remotely through Zoom. Please use the following link to register: https://us02web.zoom.us/meeting/register/tZMofuihqT0uHdQEPAQbyuLo65KcQNnOUgQZ