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Home My WebLink About2025-02-05 Council PacketKenai City Council - Regular Meeting Page 1 of 3 February 05, 2025 Kenai City Council - Regular Meeting February 05, 2025 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. Annual Review of City of Kenai Permanent Funds, 2024 Financial Performance, Financial Projections and Recommended 2025 Asset Allocations for the City’s Permanent Funds, Brandy Niclai and Bill Lierman, from Alaska Permanent Capital Management. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) 1. Kenai Chamber of Commerce and Visitor Center Annual Report, Samantha Springer, Executive Director. D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. Ordinance No. 3448-2025 - Amending Kenai Municipal Code Section 14.22.010 - Land Use Table, to Allow Airports as a Principal Permitted Use in the Airport Light Industrial Zone. (Administration) 2. Resolution No. 2025-08 - Designating the Investment and Allocation Plan for the City’s Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2025. (Administration) 3. Resolution No. 2025-09 - Authorizing a Contract Award for the 2025 Parks and Recreation Master Plan. (Administration) 4. Resolution No. 2025-10 - Authorizing the Use of the Fleet Replacement Fund for the Purchase of One Ford F-150 Responder Vehicle Utilizing the State of Alaska Equipment Fleet Contract and Municipality of Anchorage Contract. (Administration) Page 1 Kenai City Council - Regular Meeting Page 2 of 3 February 05, 2025 5. Resolution No. 2025-11 - Authorizing the Use of the Water and Sewer Fund for the Purchase of Two Ford Trucks Utilizing the State of Alaska Equipment Fleet Contract. (Administration) 6. Resolution No. 2025-12 - Authorizing the Use of the Fleet Replacement Fund for the Purchase of Two Ford Transit Vans Utilizing the State of Alaska Equipment Fleet Contract. (Administration) 7. Resolution No. 2025-13 - Redirecting Public Safety Capital Project Funds to Complete the Emergency Services Facility Assessment. (Administration) 8. Resolution No. 2025-14 - Authorizing a Contract for the 2025 Emergency Services Facility Programming and Assessment. (Administration) F. MINUTES 1. *Regular Meeting of January 15, 2025. (City Clerk) G. UNFINISHED BUSINESS H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Non-Objection to Renewal of a Package Store Liquor License for Carr- Gottstein Foods Co. DBA Oaken Keg #1808 - License No. 3218. (City Clerk) 3. *Action/Approval - Non-Objection to Renewal of a Package Store Liquor License for Three Bears Alaska, Inc. DBA Three Bears - License No. 4118. (City Clerk) 4. *Ordinance No. 3449-2025 - Increasing Estimated Revenues and Appropriations in the General Fund – Police Department and Accepting Grants from the United States Department of Justice and Alaska Municipal League Joint Insurance Association for the Purchase of Ballistic Vests. (Administration) 5. *Ordinance No. 3450-2025 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.080 - Promotion, 23.30.030 - Probationary Period for Employees in the Classified Service, and 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, to Ensure a Consistent Approach to Pay Adjustments for City Employees. (Administration) 6. Action/Approval - Airport Commission 2025 Work Plan. (City Clerk) 7. Discussion - Scheduling a Joint Work Session with the Planning & Zoning Commission for the Presentation of the Draft SS4A Comprehensive Safety Action Plan. (Administration) 8. Discussion - City of Kenai Arbitration Panel - Membership Terms. (City Clerk) I. COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission  Airport Commission 2024 Annual Report 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Commission Page 2 Kenai City Council - Regular Meeting Page 3 of 3 February 05, 2025 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/Chz3Iw5ATqSCnihFBt0XAg Page 3 City of Kenai Permanent Funds As of December 31, 2024 Page 4 2 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS City of Kenai Permanent Funds As of December 31, 2024 Account Inception September 2008 Total Contributions $22,686,732 Withdrawals Does not include custodial or management fees $17,362,274 Current Market Value December 31, 2024 $36,185,702 Annualized Account Return* Inception –December 31, 2024 +7.45% Effective Annual Fee Rate December 31, 2024 0.16% Strategic Asset Allocation Risk Assets 54% Risk Control 29% Alternatives 17% *Performance is gross of management fees, net of internal fund fees, and annualized for periods greater than one year. Staying focused on your goals Page 5 3 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS The power of consistency in cumulative earnings Chart shows month-end portfolio market values market values and calendar year returns from inception to December 31, 2024. 15.6%13.1% -0.1% 12.0%13.5% 6.0% -0.1% 7.5%12.0% -4.5% 17.0% 10.8%11.9% -13.6% 12.8%9.3% -$5 $5 $15 $25 $35 $45 2008 2010 2012 2014 2016 2018 2020 2022 2024 Mi l l i o n s Net Earnings: $30.5MContributions: $22.0M Withdrawals: $16.3M Current Market Value: $36.2M Page 6 4 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Forward-looking return and risk characteristics * Range denotes the 95% confidence interval. Risk and return data from Windham Portfolio Advisor. Characteristics Current Allocation Expected Range* Annual Return (Gross)7.3%-11.7% to 29.2% Long-Term Return (Gross)6.8%6.5% to 7.1% Net Earnings Long-Term Return Less 2.5% Expected Inflation 4.3%4.0% to 4.6% Avg. Loss in Extreme Conditions (Gross) Within a 1-Year Horizon -25.7% 54% 17% 29% Current Allocation Risk Assets Alternatives Risk Control Assets The City of Kenai Permanent Funds’current asset allocation is expected to meet the goals of the portfolio over the long term.There are no recommended changes at this time. Current allocation is expected to meet goals Page 7 5 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Airport Land Sale Permanent FundInflation and goals Preservation of Capital Sustain a 3.8% to 4.2% withdrawal Inflation Protection 23.4 26.1 28.6 31.0 26.1 28.3 29.9 25.0 25.6 26.5 28.4 30.2 31.3 32.2 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 ($ ) M i l l i o n s Market Value Inflation Adjusted Principal Period Inflation Rate Annualized Pre Covid Inception –12/31/2020 1.49% Post Covid 12/31/2020 -12/31/2024 4.20% APCM’s Expectation 10 Year Projection 2.50% Page 8 6 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Airport Land Sale Permanent FundWealth Simulations 10-year horizon All simulations utilized a $29.9M starting market value for the ALSPF. No contributions were included. Withdrawals for the ALSPF conformed to City of Kenai Municipal Code 7.30.020(5)(i)using the actual change in CPI-U when available and APCM’s forward-looking CPI expectation of 2.5% for all future dates. Utilizing APCM’s records of historical market values and the spending policy per Kenai Municipal Code 7.30.020(5)(i), APCM’s calculation of the 2025 ALSPF distribution is $1.09M. Distributions 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 ALSPF* ($ millions)1.09 1.11 1.11 1.17 1.21 1.24 1.28 1.32 1.36 1.39 Risk and return data from Windham Portfolio Advisor. Withdrawals shown at the 50th percentile. Market values for each sub fund derived from the breakout provided by City of Kenai. All distributions simulated at the 50th percentile were at the 3.8% rate. $23.6 Expected (50%) $39.9 $66.5 $20 $30 $40 $50 $60 $70 Airport Land Sale Permanent Fund (ALSPF) Mi l l i o n s 50% of outcomes Projected Ending Wealth 95% CI 5% CI Expected Inflation Adjusted Principal Page 9 7 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS ALSPF withdrawal projections10-year horizon $1.09 $1.08 $1.04 $1.04 $1.01 $0.98 $0.96 $0.94 $0.93 $0.92 $1.09 $1.11 $1.11 $1.17 $1.21 $1.24 $1.28 $1.32 $1.36 $1.39 $1.09 $1.15 $1.21 $1.47 $1.61 $1.76 $1.90 $2.04 $2.18 $2.32 2025 2026 2027 2028 2029 2030 2031 2032 2033 2035 95th Percentile 75th Percentile 50th Percentile 25th Percentile 5th Percentile The probability that the ALSPF may withdraw at the 4.2% rate begins at 0% and increases to 36% over the simulation horizon. City of Kenai Municipal Code 7.30.020(5)(i) Appropriations from the ALSPF may be made as follows: In any fiscal year, the amount available for appropriation for airport operations and capital needs will be based upon the five (5) year average of the fund’s calendar year end market value. An amount not to exceed three and four-fifths percent (3.8%) of the five (5) year average market value may be distributed if the average market value is less than the fund’s inflation adjusted principal balance. An amount not the exceed four and one-fifth percent (4.2%) of the five (5) year average market value may be distributed if the average market value is greater than the fund’s inflation adjusted principal balance. Page 10 8 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS General Fund Land Sale Permanent FundInflation and goals Preservation of Capital Sustain a 4% withdrawal Inflation Protection 2.9 3.4 3.6 3.9 3.2 3.7 3.8 2.8 2.9 3.0 3.2 3.4 3.5 3.6 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 ($ ) M i l l i o n s Market Value Inflation Adjusted Principal Period Inflation Rate Annualized Pre Covid Inception –12/31/2020 1.49% Post Covid 12/31/2020 -12/31/2024 4.20% APCM’s Expectation 10 Year Projection 2.50% Page 11 9 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS General Fund Land Sale Permanent Fund Wealth Simulations 10-year horizon All simulations utilized a $3.8M for the GLSPF. No contributions were included. Withdrawals for the GLSPF conformed to City of Kenai Municipal Code 7.30.020(6)using the actual change in CPI-U when available and APCM’s forward-looking CPI expectation of 2.5% for all future dates. Per Kenai Municipal Code 7.30.020(6) distributions will be the lesser of the cumulative earnings at calendar year end for the fund or four percent (4%) of the fund’s fair market value, Utilizing APCM’s records of historical market values and the spending policy APCM’s calculation of the 2025 GLSPF distribution is $154K. In any given year within the simulation, the probability that a distribution can be made is 78%. Distributions 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 GLSPF ($ thousands)154 157 163 169 175 181 187 194 202 209 Risk and return data from Windham Portfolio Advisor. Withdrawals shown at the 50th percentile. Market values for each sub fund derived from the breakout provided by City of Kenai. All distributions simulated at the 50th percentile were at the 3.8% rate. $3.9 Expected (50%) $5.4 $8.3 $3 $4 $5 $6 $7 $8 $9 General Fund Land Sale Permanent Fund (GLSPF) Projected Ending Wealth Expected Inflation Adjusted Principal 50% of outcomes 95% CI 5% CI Page 12 10 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Source: Bloomberg US Economic Policy Uncertainty Index 0 50 100 150 200 250 300 350 400 Jan-2019 Jan-2020 Jan-2021 Jan-2022 Jan-2023 Jan-2024 Rising Policy Uncertainty Poses Market Risks 2.9% 2.8% 2.2% 0.4% 0.8% 1.2% 1.7% 1.8% 1.8% 5.2% 4.8% 4.5% 0%1%2%3%4%5%6% 2023 2024 2025 Positive Growth Projected Across Key Economies China Advanced Economies Euro Area U.S. Source: World Economic Outlook Earnings Growth Key to Sustaining Equity Gains Source: JP Morgan Key drivers of the 2025 outlook Elevated Valuations Signal Headwind for U.S. Equity Returns Current and 20-year average next 12 months price-to-earnings ratio Page 13 City of Kenai –Custody As of December 31, 2024 Page 14 12 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS City of Kenai –Custody (as of December 31, 2024) Portfolio Review Performance Gross Bench*GVIXX Month To Date 0.27%0.22%0.39% Since Inception (11/6/2024)0.33%0.28%0.70% Annual Yield Comparison Summary Statistics Kenai - Custody Bench*GVIXX Market Value $32,460,960 -- Annual Yield **4.55%4.27%4.36% Average Quality AA+AA AAA Average Maturity (Years)1.64 1.95 - What has happened: As securities mature and cash becomes available for reallocation, we have extended the portfolio's duration in US Treasuries and Callable Agencies The portfolio duration (sensitivity to interest rates) now stands at 1.54 years vs the bench at 1.78 years Going forward: We intend to slowly lengthen duration with maturing securities Annual coupon income over the next 12 months is expected to be $1,208,239 on the current portfolio Recommendation: Work with staff and possible a work session with council to explore options to align liquidity and risk *Bench: Bloomberg 1-3 Gov **YTM for port/bench, 7-day SEC Yield for GVIXX *Bench: Bloomberg 1-3 Yr Gov Performance annualized for periods greater than one year. 2% 3% 4% 5% 6% Bench*Allspring MMF Kenai - Custody *Bench: Bloomberg 1-3 Gov Page 15 13 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS City of Kenai –Custody (as of December 31, 2024) Time to Maturity Liquidity %Market Value 0-1 Years 22.0%$7,160,832 1-2 Years 50.4%$16,360,022 2-3 Years 16.8%$5,442,328 3-5 Years 10.8%$3,497,778 Total 100%$32,460,960 IPS Constraints and Characteristics of the Portfolio Investments shall have maturities less than 5 years At least 20% of the portfolio shall be held in maturities of 1-year or less No more than 30% of the portfolio may be invested in securities with maturities of longer than 2-years Authorized instruments shall be limited to the obligations of the US Government, its agencies, repurchase agreements, and government money market funds Portfolio Composition May not add to 100% due to rounding Interest Rate & Market Outlook The Federal Reserve decreased its benchmark rate to 4.25-4.50%. Fed Fund Futures markets currently price in one to two rate cuts by end of 2025. The FOMC terminal target rate decreases to 3.90% in 2025 and in 2026 decreases to 3.66%. Interest rates increased across the curve during the quarter. The 2yr increased by 60 basis points ending December at 4.24%. The 5yr increased 82 basis points ending December at 4.38%. 67% 29% 2%2% 0% 20% 40% 60% 80% 100% 12/31/2024 Treasuries MBS Cash CDs Page 16 14 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS We're Growing Together: APCM's Next Chapter Questions? Please reach out to your APCM contact. We are here to support you every step of the way. •Alaska Permanent Capital Management (APCM) is proud to announce its acquisition by Blue Umbrella, a private holding company based in Anchorage, Alaska. •Minority shareholders include prominent Alaskan leaders and investors, such as Jonathan Rubini, Mark Kroloff, Bob Kaufman, Avi Naider, Todd Dow, Jeff Ripley, and current APCM executives Evan Rose, Bill Lierman, and Brandy Niclai. Acquisition Overview •APCM will continue to operate as usual, with no changes to daily operations or the team you trust. •Our key leadership remains in place to guide APCM forward. Blue Umbrella and its partners bring resources, networks, and strategic tools to help APCM grow sustainably while maintaining its mission. What This Means for You •Blue Umbrella values APCM's legacy and reputation. With a track record of fostering growth, they focus on ensuring smooth transitions and aligning with client-first values. Why Blue Umbrella? •Your trust is our priority. This partnership strengthens APCM’s ability to deliver consistent, high-quality services while positioning the firm for future success.Commitment to Clients Page 17 15 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS About Blue Umbrella Who We Are: •A private holding company based in Anchorage, Alaska, specializing in acquiring and growing lower-middle-market businesses. •Founded by experienced professionals Jimmy Miner and Dan Perpich, with a proven track record of over $30 million in acquisitions in Alaska. Our Mission: •Focused on preserving the legacy and success of the businesses we acquire. •Providing resources, capital, and strategic tools to foster long-term growth. •Solving ownership succession challenges with structured transition plans. Key Strengths: •Strong emphasis on stability through transitions, ensuring operational continuity and alignment with key personnel. •Extensive networks in Alaska and beyond to support growth and expansion. •A patient, long-term approach to business development and investment. Page 18 Appendix •Current Asset Allocation •Performance •Market Outlook Page 19 17 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Asset Class Strategic Weight Overweight / Underweight Current Allocation Range Risk Control 29%2.0%31.0% Risk Control U.S. FIXED INCOME 26%-0.5%25.5%6 - 36% CASH 3%2.5%5.5%0 - 10% Risk Assets 54%-0.3%53.7% Risk Assets U.S. HIGH YIELD FIXED INCOME 4%-0.1%3.9%0 - 8% U.S. LARGE CAP EQUITY 22%0.3%22.3%12 - 32% U.S. MID CAP EQUITY 10%0.3%10.3%0 - 18% U.S. SMALL CAP EQUITY 5%0.1%5.1%0 - 10% DEVELOPED INTERNATIONAL EQUITY 8%-0.7%7.3%4 - 16% EMERGING MARKET EQUITY 5%-0.2%4.8%0 - 10% Alternatives 17%-1.7%15.3% Alternatives REITS 2%-0.2%1.8%0 - 4% INFRASTRUCTURE 5%-0.4%4.6%0 - 10% ALTERNATIVE BETA 10%-1.1%8.9%0 - 15% U.S. FIXED INCOME CASH U.S. HIGH YIELD FIXED INCOME U.S. LARGE CAP EQUITY U.S. MID CAP EQUITY U.S. SMALL CAP EQUITY DEVELOPED INTERNATIONAL EQUITY EMERGING MARKET EQUITY REITS INFRASTRUCTURE ALTERNATIVE BETA R i s k C o n t r o l Ri s k A s s e t s Al t e r n a t i v e s Tilt Weight Core Weight Aligning near-term tactical adjustments with your long-term strategy Page 20 18 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Evaluating returns against strategic goals Portfolio performance is gross of management fees and net of fund fees. 7.5% 5.9%5.7% 2.1% 9.3% 7.6% 6.1%5.9% 2.4% 9.6% -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% Since Inception 10 Year 5 Year 3 Year 1 Year Account Performance December 31, 2024 Permanent Fund Strategic Benchmark -40% -30% -20% -10% 0% 10% 20% 30% 40% Rolling 12 Month Total Return Since Inception Upper bound of expected range of returns within one year (29.2%) Lower bound of expected range of returns within one year (-11.7%) Avg. loss in extreme conditions within one year (-25.7%) Page 21 19 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS The macro backdrop at year-end 2024 Composite Indicator; Source: Alpine MacroSource: Bloomberg Investor Sentiment Peaks at Year-End 9.8% 18.3% 16.1% 26.3% 5.5% 7.4% 3.8% 8.7% 24.8% 1.2% 4.4% 5.0% 10.3% 14.2% 1.9% 0%5%10%15%20%25%30% Emerging Markets Developed Equity US Small Cap US Large Cap US Fixed Income Strong Performance Amid Positive Fundamentals Average Return Past 10y 2024 Return 2023 Return Recession Risks Stay Low Despite ExpectationsCentral Banks Ease as Inflation Moderates Source: JP Morgan Source: Oxford Economics -1% 0% 1% 2% 3% 4% 5% 6% '19 '20 '21 '22 '23 '24 '25 '26 Historical Policy Rates & Forward Curves FOMC (US)BOE (UK)ECB (Eurozone)BOJ (Japan) Page 22 20 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Source: Bloomberg US Economic Policy Uncertainty Index 0 50 100 150 200 250 300 350 400 Jan-2019 Jan-2020 Jan-2021 Jan-2022 Jan-2023 Jan-2024 Rising Policy Uncertainty Poses Market Risks 2.9% 2.8% 2.2% 0.4% 0.8% 1.2% 1.7% 1.8% 1.8% 5.2% 4.8% 4.5% 0%1%2%3%4%5%6% 2023 2024 2025 Positive Growth Projected Across Key Economies China Advanced Economies Euro Area U.S. Source: World Economic Outlook Earnings Growth Key to Sustaining Equity Gains Source: JP Morgan Key drivers of the 2025 outlook Elevated Valuations Signal Headwind for U.S. Equity Returns Current and 20-year average next 12 months price-to-earnings ratio Page 23 21 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Neutral stance on risk control assets with strong income cushion APCM is maintaining a strategic weight within Risk Control asset classes, including US bonds, international bonds, and cash. Our base case expects global growth to settle near trend, supported by resilient US economic activity, a strong labor market, and easing inflation toward 2%. This environment should allow central banks to continue lowering policy rates, though the pace may vary regionally. Maintaining duration exposure aligns with this outlook, offering potential for total return as yields decline. In a reflation scenario, where stimulative policies drive persistent inflation and delay Fed rate cuts, we believe bond coupon income (4.9%) can offset price declines from rising rates. Conversely, if supply-side constraints slow economic activity and reignite recession fears, fixed income holdings should provide stability, with longer-duration (6.0) bonds benefiting from potential interest rate declines. This balanced approach seeks to manage portfolio risks while capturing income and defensive qualities across various market environments. Source: Oxford Economics/Macrobond JP Morgan Markets Are Pricing Inflation Implications Roughly Consistent With Target Inflation ILB-implied average US inflation rates Fixed Income Returns in Different Interest Rate Scenarios Potential total return: assumes a parallel shift in the yield curve 21 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS -1.2% 4.4% -2.5% 4.9% 7.5% 3.7% 11.0%10.6%10.0% U.S. Aggregate U.S. HY Municipals 1% Increase No Change 1% Decrease Page 24 22 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Neutral risky assets with earnings expected to drive returns and select opportunities in Europe and small caps High-Yield Bonds APCM maintains a neutral weight in high-yield bonds relative to long-term targets. Tight spreads, supported by refinancing at historically low rates in 2020–2021, may widen as issuers face a maturity wall in 2025–2026. However, healthy corporate fundamentals and a supportive economic backdrop should limit default risks, balancing the outlook. US Equities APCM is neutral on equities across regions and market caps, with varied attractiveness. U.S. large-cap stocks remain expensive but are supported by strong fundamentals and growth opportunities, such as AI. Mid-and small-caps may benefit from domestic policy changes, though tariff uncertainty and softening small-cap corporate health pose risks. A small-cap quality fund has been added to balance exposures. International Equities While APCM is neutral overall, European financials present an opportunity,supported by strong earnings growth, profitability, and reasonable valuations. Broader international equities remain attractive relative to U.S. markets but lack clear catalysts to unlock value, such as European debt reform or China stimulus. Source: FactSet, MSCI, Standard & Poor's, as of December 31, 2024. 9.1 Average: 10.0 2010 2012 2014 2016 2018 2020 2022 2024 European Financials Valuations NTM P/E NTM P/E Mean Source: FactSet 22 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS U.S. Small Cap vs. U.S. Large Cap Valuations NTM P/E 0.7 Average: 1.1 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Page 25 23 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Selective positioning in alternatives with gold as a hedge and market neutral for stability Infrastructure & REITs APCM maintains a neutral stance on infrastructure and REITs, as these asset classes are fairly priced with stable income profiles. Their high domestic revenue exposure reduces risks from geopolitical events or tariffs. While they provide steady cash flows, interest rate volatility in the current market environment supports a neutral stance. Commodities (Gold) APCM has funded an overweight to gold, leveraging its role as a hedge against uncertainty and fiscal risks. A recent correction has improved its positioning for upside, supported by rising global demand from central banks and investors. Key drivers include concerns about sanctions, high U.S. debt levels, and potential shifts from Chinese investors. Gold offers a hedge to some key risks in 2025. Market Neutral Strategy To enhance portfolio resilience, APCM has added the Calamos Market Neutral Income Fund. This strategy aims to deliver consistent returns, manage equity risk, and diversify fixed-income exposures. By leveraging volatility, it complements broader alternative allocations and provides downside protection in uncertain markets. *Fund Inception is 5/10/2000; performance is as of 9/30/2024 Source: Calamos IAU iShares Gold Trust ETF Exposure to the day-to-day movement of the price of gold bullion. Convenient, cost-effective access to physical gold. Portfolio diversification and inflation protection. -20%-15%-10%-5%0%5%10%15% CY 2022 5-Year 10-Year Since Inception* Calamos Market Neutral Income Mutual Fund Return Comparison Calamos Market Neutral Income Fund MSCI ACWI Net TR USD Index Bloomberg U.S. Aggregate Index Page 26 24 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Disclosures Important Assumptions IMPORTANT:The projections or other information generated by Alaska Permanent Capital Management Company (APCM)regarding the likelihood of various outcomes are hypothetical in nature,do not reflect actual investment results,and are not guarantees of future results.There can be no assurance that the projected or simulated results will be achieved or sustained.The charts and data only present a range of possible outcomes.Actual results will vary over time,and such results may be better or worse than the simulated scenarios.Clients should be aware that the potential for loss (or gain)may be greater than that demonstrated in the simulations.Please note that the analysis does not take into consideration all asset classes,and other asset classes not considered may have characteristics similar or superior to those being analyzed. Important Legal Information These calculations are designed to be informational and educational only,and when used alone,do not constitute investment advice.APCM encourages investors to review their investment strategy periodically as financial circumstances do change. Model results are provided as a rough approximation of future financial performance.Actual results could produce different outcomes (either better or worse)than those illustrated by the model,since it is not possible to anticipate every possible combination of financial market returns.APCM is not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by the results of the model. Other Influences on Rates of Return Investment management fees:Returns are presented gross of management fees and include the reinvestment of all income.Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account.The collection of fees produces a compounding effect on the total rate of return net of management fees.As an example,the effect of investment management fees on the total value of a client’s portfolio assuming (a)quarterly fee assessment, (b)$1,000,000 investment,(c)portfolio return of 8%a year,and (d)1.00%annual investment advisory fee would be $10,416 in the first year,and cumulative effects of $59,816 over five years and $143,430 over ten years.Actual investment advisory fees incurred by clients may vary. Taxes:Unless noted otherwise,model results have not been adjusted for any state or federal taxes or penalties. Inflation:Unless noted otherwise,model results do not adjust any inputs or outcomes for inflation.Inflation is assumed to be constant over the investment horizon. Limitations Inherent in Model Results Limitations include but are not restricted to the following: Model results do not represent actual trading and may not reflect the impact that material economic and market factors might have had on APCM’s decision making if the actual client money were being managed. Extreme market movements may occur more frequently than represented in the model. Some asset classes have relatively limited histories.While future results for all asset classes in the model may materially differ from those assumed in APCM’s calculations, the future results for asset classes with limited histories may diverge to a greater extent than the future results of asset classes with longer track records. Market crises can cause asset classes to perform similarly over time;reducing the accuracy of the projected portfolio volatility and returns.The model is based on the long-term behavior of the asset classes and therefore is less reliable for short-term periods.This means that the model does not reflect the average periods of "bull"and "bear"markets,which can be longer than those modeled. The model represent APCM’s best view of the next 7-10 years,but is unlikely to reflect actual investment returns worldwide over this period. Page 27 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3448-2025 AN ORDINANCE AMENDING KENAI MUNICIPAL CODE SECTION 14.22.010 - LAND USE TABLE, TO ALLOW AIRPORTS AS A PRINCIPAL PERMITTED USE IN THE AIRPORT LIGHT INDUSTRIAL ZONE. WHEREAS, the Imagine Kenai 2030 Comprehensive Plan (“Comprehensive Plan”), identified a Land Use objective to review existing zoning and subdivision codes to determine if they address current and future land uses adequately; and, WHEREAS, the Kenai Municipal Airport and surrounding land was transferred to the City of Kenai by the federal government in 1963 and was a permitted use within the Conservation zone; and, WHEREAS, the City of Kenai enacted Kenai Municipal Code Section 14.20.065 - Airport Light Industrial (ALI) Zone in May 2016 with Ordinance 2884-2016; and, WHEREAS, the City of Kenai rezoned 51 parcels owned by the City, including the Kenai Municipal Airport, within the Airport Reserve Boundary to ALI in May 2016 with Ordinance 2885-2016; and, WHEREAS, Airports are currently considered a conditional use within the ALI zone; and, WHEREAS, Airports should be a principal permitted use within the ALI zone; and, WHEREAS, at its meeting on January 8, 2025, the Planning and Zoning Commission voted to recommend the City Council enact Ordinance 3448-2025; and, WHEREAS, at its meeting on January 9, 2025, the Airport Commission voted to recommend the City Council enact Ordinance 3448-2025; and, WHEREAS, it is in the best interests of the City to align the zoning code to current land uses around the Kenai Municipal Airport to clarify the type of development sought for future economic investments. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Amendment of Section of Kenai Municipal Code: That Kenai Municipal Code, Section 14.22.010 - Land Use Table, Industrial subsection, Airports is hereby amended as follows: KEY: P = Principal Permitted Use C = Conditional Use S = Secondary Use N = Not Permitted NOTE: Reference footnotes on following pages for additional restrictions ZONING DISTRICTS LAND USES ALI C RR RR-1 RS RS-1 RS-2 RU CC CG IL IH ED R TSH LC CMU WW INDUSTRIAL Airports P [C] P20 C N C N N C C C C C N C N N C C Page 28 Ordinance No. 3448-2025 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: January 15, 2025 Enacted: February 5, 2025 Effective: March 7, 2025 Page 29 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: January 15, 2025 SUBJECT: Ordinance 3348-2025 - Amending Kenai Municipal Code Section 14.22.010 - Land Use Table, to Allow Airports as a Principal Permitted Use in the Airport Light Industrial Zone. At their January 8, 2025 meeting, and in accordance with KMC 14.05.010 Duties and Powers, the Planning and Zoning Commission reviewed the proposed ordinance amending the KMC Section 14.22.010 - Land Use Table. Concurrently, at their January 9, 2025 meeting, and in accordance with KMC 1.95.010 Duties and Powers, the Airport Commission also reviewed the proposed ordinance amending the KMC Section 14.22.010 - Land Use Table. In May 2016, Kenai City Council enacted the Airport Light Industrial (ALI) zone and subsequently rezoned fifty-one (51) city owned parcels within the Airport Reserve Boundary to the new ALI zone. During this rezoning process, it was not noted that Airports were only considered a principal permitted use in the Conservation zone, which is what the Kenai Municipal Airport was zoned prior to 2016. This amendment to the KMC is generally administrative in nature and is necessary to align the zoning code to current land uses in and around the Airport to clarify the type of development sought for future economic investments. The commissions both recommended Council enact the ordinance. Page 30 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-08 A RESOLUTION DESIGNATING THE INVESTMENT AND ALLOCATION PLAN FOR THE CITY’S PERMANENT FUNDS AND ESTABLISHING APPROPRIATE BENCHMARKS TO MEASURE PERFORMANCE FOR CALENDAR YEAR 2025. WHEREAS, pursuant to KMC 7.30.020 (a) (2) the Council of the City of Kenai annually approves an Asset Allocation Plan for investment of the City’s Permanent Funds; and, WHEREAS, Kenai Municipal Code 7.30.020 (b) permits investment of the Permanent Funds in various asset classes and the Council believes that establishing asset allocation criteria for these various asset classes is in the best interest of the City of Kenai; and, WHEREAS, the annually approved Asset Allocation Plan provides benchmarks to measure investment performance. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1. That the Council adopts the Asset Allocation Plan for calendar year 2025 as follows: The Asset Allocation Plan and Target Weightings with range restrictions are: ASSET CLASS TARGET % WEIGHTING RANGE % Cash 3 0-10 Fixed Income: Investment Grade Domestic Bonds 26 16-36 High Yield Domestic Bonds 4 0-8 Domestic Equity: Large-Cap Domestic Equity 22 12-32 Mid-Cap Equities 10 0-18 Small-Cap Equities 5 0-10 International Emerging Markets 5 0-10 International Equity 8 4-16 Real-estate equities 2 0-4 Infrastructure equities 5 0-10 Alternative Beta 10 0-15 Section 2. The performance of the Fund and investment managers will be measured as follows: Performance measurement of the Cash allocation will be measured against the target weighting, using the Citi Group 90 Day T-Bill Index as the benchmark. Page 31 Resolution No. 2025-08 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] Performance measurement of the Investment Grade Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Aggregate Bond Index for the benchmark. Performance measurement of the High Yield Domestic Bond allocation will be measured against the Target weighting, using the Bloomberg Barclays U.S. Corporate High Yield Very Liquid Bond index for the benchmark. Performance measurement of the Large-Cap Domestic Equity allocation will be measured against the Target weighting, using the Standard & Poor’s 500 Index for the benchmark. Performance measurement of the Mid-Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor’s 400 Mid-Cap Index as the benchmark. Performance measurement of the Small-Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor’s 600 Small-Cap Index as the benchmark. Performance measurement of the International Emerging Markets allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Emerging Markets index as the benchmark. Performance measurement of the International Equity allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) index for the benchmark. Performance measurement of the Real-Estate Equities allocation will be measured against the target weighting, using the Standard & Poor’s US REIT Index as the benchmark. Performance measurement of the Infrastructure Equities allocation will be measured against the target weighting, using the STOXX Global Broad Infrastructure Index as the benchmark. Performance measurement of the Alternative Beta allocation will be measured against the target weighting, using the Wilshire Liquid Alternatives Index as the benchmark. Section 3. That this Resolution takes effect on immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________ Page 32 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: January 29, 2025 SUBJECT: Resolution No. 2025-08 – Designating the Investment Allocations of and Establishing Appropriate Benchmarks to Measure Performance of the City’s Permanent Funds for Calendar Year 2025. Pursuant to KMC 7.30.020 the Council annually designates by resolution, the authorized investments and allocation plan for the City’s Permanent Funds. Resolution No. 2025-08 establishes the allocation plan and evaluation benchmarks to be used for calendar year 2025. There is no recommended change to the asset allocation from 2024. The portfolio is projected to yield 6.79% on average, a 0.51% increase from last year. The portfolio is projected to have an annual risk of 10.45% compared to last year’s risk of 10.45%. This represents no change in portfolio risk or overall risk. Annual risk is the variation in the expected return of the portfolio at one standard deviation, approximately 68% of all occurrences. The risk of the portfolio is doubled at two standard deviation, 95% of all occurrences. For the proposed portfolio which has an expected annual return of 7.30% and a ten-year expected return of 6.79%, 68% of the time the portfolio should annually return between (3.04)% and 17.63% and 95% of the time the portfolio should return annually between (11.72)% and 29.19% In addition to no change in the portfolio’s asset allocation, there is also no change in the portfolio’s benchmarks. Benchmarks are used to evaluate the portfolio’s return as compared to the return of the market. The following is the recommended 2025 asset allocation for your review. Page 33 Page 2 of 2 2025 Asset Allocation Cash 3% Fixed Income Domestic Investment Grade Bonds 26% High Yield Domestic Bonds 4% Total Cash and Fixed Income 30% Domestic Equities US Large Cap 22% US Mid Cap 10% US Small Cap 5% International Equities 8% Emerging Market Equities 5% Total Equities 50% Alternative Investments Real Estate 2% Infrastructure 5% Alternative Beta 10% Total Alternative Investments 17% Total Portfolio 100% Expected Average Annual Return 7.30% Expected Risk (one Standard Deviation) 10.45% Return Range (11.72)% to 29.19% Long-term Expected Return 6.79% Your support for adoption of Resolution 2025-08 is respectfully requested. Page 34 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-09 A RESOLUTION AUTHORIZING A CONTRACT AWARD FOR THE 2025 PARKS AND RECREATION MASTER PLAN. WHEREAS, a Request for Proposals was released on December 19, 2024 with proposals due on January 22, 2025 for the 2025 Parks and Recreation Master Plan; and, WHEREAS, one proposal was received by Corvus Design, Inc.; and, WHEREAS, the cost for the scope of work is $69,866.75; and, WHEREAS, the proposal was determined to be responsive and responsible; and, WHEREAS, it is in the best interest of the City to award the contract to Corvus Design, Inc. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute a contract with Corvus Design, Inc. in the amount of $69,866.75 for the 2025 Parks and Recreation Master Plan. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 35 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Tyler Best, Parks and Recreation Director FROM: Lee Frey, Public Works Director DATE: January 28, 2025 SUBJECT: Resolution No. 2025-09 - Authorizing a Contract Award for the 2025 Parks and Recreation Master Plan This memo requests Council’s approval to award a contract to complete a Parks and Recreation Master Plan to Corvus Design, Inc. A Request for Proposal was released for the project and one proposal was received on the due date of January 22, 2025. Corvus Design, Inc. was the only proposer with a cost of $69,866.75. The proposal was reviewed and determined to be responsive and responsible. The Parks and Recreation Master Plan is expected to guide the Department’s infrastructure and programming for the next 20 years. Award of this agreement is in the best interest of the City. Council’s approval is respectfully requested. Page 36 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-10 A RESOLUTION AUTHORIZING THE USE OF THE FLEET REPLACEMENT FUND FOR THE PURCHASE OF ONE FORD F-150 RESPONDER VEHICLE UTILIZING THE STATE OF ALASKA EQUIPMENT FLEET CONTRACT AND MUNICIPALITY OF ANCHORAGE CONTRACT. WHEREAS, the City evaluated its utility vehicles within its fleet to determine the efficiency of current vehicles and replacement needs; and, WHEREAS, the City fleet replacement plan calls for the replacement of one fire department utility vehicle in FY25, which is now available under a State of Alaska Equipment Fleet Contract pricing; and, WHEREAS, the upfitting of the vehicle is available through a Municipality of Anchorage Contract through Alaska Safety, Inc.; and, WHEREAS, the Fire Department requests to purchase one Ford F-150 Responder with upfitting from Kendall Ford for a total estimated cost of $71,910; and, WHEREAS, funds for this purchase are available in the Fleet Replacement Fund; and, WHEREAS, KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without competition if the equipment is purchasable under the contract of another governmental agency in which contract the City is authorized to participate; and, WHEREAS, in past years the City of Kenai has purchased utility vehicles through the State of Alaska Equipment Fleet Contract and this purchase 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 use the Fleet Replacement Fund for the purchase of one fire department vehicle at an estimated cost of $71,910. Section 2. That the City Manager is authorized to use State of Alaska Equipment Fleet Contract and the Municipality of Anchorage Contract for the purchase of one Ford F-150 with upfitting from Kendall Ford for an estimated cost of $71,910, in accordance with KMC 7.15.070(b)(4). Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Finance ______________________ Page 37 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Jay Teague, Fire Chief THROUGH: Lee Frey, Public Works Director FROM: Eric Jean, Public Works Assistant Director DATE: January 28, 2025 SUBJECT: Resolution No. 2025-10 - Authorizing the Use of the Fleet Replacement Fund for the Purchase of One Ford F-150 Responder Vehicle Utilizing the State of Alaska Equipment Fleet Contract and Municipality of Anchorage Contract. This Resolution authorizes the purchase of a Ford F-150 Responder for use as fire utility/command vehicle. It authorizes using the City’s Fleet Replacement Fund for this purchase. The total cost of the vehicle is $71,910, with base cost of $51,155 for the F-150 and $20,755 for the upfitting. In accordance with the City’s fleet replacement plan, the fire department was scheduled to replace one utility vehicle in FY25. The Ford F-150 Responder is available from Kendall Ford under the State of Alaska Equipment Fleet Contract CA2217-20 pricing and the upfitting is completed Alaska Safety, Inc. through Kendall Ford, through Municipality of Anchorage Contract 4400001388 for Police Vehicle Accessories. KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without giving an opportunity for competitive bidding if the equipment is purchasable under the contract of another government agency in which contract the City is authorized to participate. Thank you for your consideration. Page 38 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-11 A RESOLUTION AUTHORIZING THE USE OF THE WATER AND SEWER FUND FOR THE PURCHASE OF TWO FORD TRUCKS UTILIZING THE STATE OF ALASKA EQUIPMENT FLEET CONTRACT. WHEREAS, the City evaluated its utility vehicles within its fleet to determine the efficiency of current vehicles and replacement needs; and, WHEREAS, the City concluded there is a need to purchase two Water and Sewer vehicles in FY25, which are now available under State of Alaska Equipment Fleet Contract pricing; and, WHEREAS, the Water and Sewer Department requests to purchase two Ford Trucks for a total estimated cost of $107,335 from Kendall Ford; and, WHEREAS, funds for this purchase are available in the Water and Sewer Fund; and, WHEREAS, KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without competition if the equipment is purchasable under the contract of another governmental agency in which contract the City is authorized to participate; and, WHEREAS, in past years the City of Kenai has purchased vehicles through the State of Alaska Equipment Fleet Contract and this purchase 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 use the Water and Sewer Fund for the purchase of two Ford trucks at an estimated cost of $107,335. Section 2. That the City Manager is authorized to use State of Alaska Equipment Fleet Contract for the purchase of two Ford Trucks from Kendall Ford for an estimated cost of $107,335, in accordance with KMC 7.15.070(b)(4). Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Finance ______________________ Page 39 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Lee Frey, Public Works Director FROM: Eric Jean, Public Works Assistant Director DATE: January 28, 2025 SUBJECT: Resolution No. 2025-11 - Authorizing the Use of the Water and Sewer Fund for the Purchase of Two Ford Trucks Utilizing the State of Alaska Equipment Fleet Contract. This Resolution authorizes the purchase of two Ford Trucks for use in the Utilities Department. This purchase was budgeted for in the Water and Sewer Fund FY25 operating budget and this authorizes using those funds for this purchase. The cost of the F-150 is $50,800 and the cost of the F-350 is $56,535 for a total price of $107,335. The vehicles are available from Kendall Ford under State of Alaska Equipment Fleet Contract CA2217-20 pricing. KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without giving an opportunity for competitive bidding if the equipment is purchasable under the contract of another government agency in which contract the City is authorized to participate. Thank you for your consideration. Page 40 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-12 A RESOLUTION AUTHORIZING THE USE OF THE FLEET REPLACEMENT FUND FOR THE PURCHASE OF TWO FORD TRANSIT VANS UTILIZING THE STATE OF ALASKA EQUIPMENT FLEET CONTRACT. WHEREAS, the City evaluated its utility vehicles within its fleet to determine the efficiency of current vehicles and replacement needs; and, WHEREAS, the City fleet replacement plan calls for the replacement of two Senior Center transport vehicles in FY25, which are available under a State of Alaska Equipment Fleet Contract pricing; and, WHEREAS, the Senior Center requests to purchase two Ford Transit Vans for a total cost of $135,700 from Kendall Ford; and, WHEREAS, funds for this purchase are available in the Fleet Replacement Fund; and, WHEREAS, KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without competition if the equipment is purchasable under the contract of another governmental agency in which contract the City is authorized to participate; and, WHEREAS, in past years the City of Kenai has purchased vehicles through the State of Alaska Equipment Fleet Contract and this purchase 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 use the Fleet Replacement Fund for the purchase of two Ford Transit Vans at an estimated cost of $135,700. Section 2. That the City Manager is authorized to use State of Alaska Equipment Fleet Contract for the purchase of two Ford Transit Vans from Kendall Ford for an estimated cost of $135,700, in accordance with KMC 7.15.070(b)(4). Section 3. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Finance ______________________ Page 41 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Lee Frey, Public Works Director FROM: Eric Jean, Public Works Assistant Director DATE: January 28, 2025 SUBJECT: Resolution No. 2025-12 - Authorizing the Use of the Fleet Replacement Fund for the Purchase of Two Ford Transit Vans Utilizing the State of Alaska Equipment Fleet Contract. This Resolution authorizes the purchase of two Ford Transit Vans for use as transport vehicles for the Senior Center through Kendall Ford. It authorizes using the City’s Fleet Replacement Fund for this purchase. The cost of the Transit Vans is $135,700 total, $67,850 each. In accordance with the City’s fleet replacement plan, the Senior Center was scheduled to replace one utility vehicle in FY21 and the other in FY23. The Ford Transit Vans are available from Kendall Ford under the State of Alaska Equipment Fleet Contract CA2217-20 pricing. KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without giving an opportunity for competitive bidding if the equipment is purchasable under the contract of another government agency in which contract the City is authorized to participate. Thank you for your consideration. Page 42 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-13 A RESOLUTION REDIRECTING PUBLIC SAFETY CAPITAL PROJECT FUNDS TO COMPLETE THE EMERGENCY SERVICES FACILITY ASSESSMENT. WHEREAS, the City appropriated $100,000 through the FY24 budget and Ordinance 3422-2024 for the Fire Department Flooring Replacement project; and, WHEREAS, the flooring replacement project is on hold to complete the Emergency Services Facility Assessment project; and, WHEREAS, the original appropriation of $150,000 to complete the Emergency Services Facility Programming and Assessment project has been determined to be insufficient; and, WHEREAS, redirecting $60,000 is recommended to supplement the Emergency Services Facility Programming and Assessment project for consulting services and City project management; and, WHEREAS, redirecting previously appropriated funds from the Fire Department Flooring Replacement to the Emergency Services Facility Assessment is in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the following budget transfer be authorized; Public Safety Capital Project Fund: Decrease Expenditures: Fire Department Flooring Replacement $60,000 Increase Expenditures: Emergency Services Facility Assessment $60,000 Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 43 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: Dave Swarner, Finance Director FROM: Lee Frey, Public Works Director DATE: January 28, 2025 SUBJECT: Resolution No. 2025-13 - Redirecting Public Safety Capital Project Funds to Complete the Emergency Services Facility Assessment. Through the FY24 budget and Ordinance 3422-2024, $100,000 was appropriated for the Fire Department Flooring Replacement project. This project is currently on hold to complete the Emergency Services Facility Programming and Assessment project. The Emergency Services Facility Programming and Assessment proposals have been reviewed and the project was determined to be underfunded with the existing capital appropriation of $150,000. The Public Works Department recommends redirecting $60,000 from the Fire Department Flooring Replacement project to the Emergency Services Facility Assessment project. The additional funding will cover the shortage in funding for consulting services and fund project management time allocated to the project. Your support is respectfully requested. Page 44 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI RESOLUTION NO. 2025-14 A RESOLUTION AUTHORIZING A CONTRACT FOR THE 2025 EMERGENCY SERVICES FACILITY PROGRAMMING AND ASSESSMENT. WHEREAS, a Request for Proposals was released on December 3, 2024 with proposals due on January 14, 2025 for the 2025 Emergency Services Facility Programming and Assessment; and, WHEREAS, six proposals were received; and, WHEREAS, K+A designstudios was determined to be the highest ranking proposer; and, WHEREAS, the proposal was determined to be responsive and responsible; and, WHEREAS, the cost for the proposed scope of work is not intended to exceed $172,300; and, WHEREAS, schematic design services may be added to the contract at a later date depending on the results of the assessment and the best interests of the City; and, WHEREAS, it is in the best interest of the City to award the contract to K+A designstudios. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute a contract with K+A designstudios in an amount not to exceed $172,300. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 5TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Page 45 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: David Ross, Police Chief THROUGH: Jay Teague, Fire Chief FROM: Lee Frey, Public Works Director DATE: January 28, 2025 SUBJECT: Resolution No. 2025-14 - Authorizing a Contract for the 2025 Emergency Services Facility Programming and Assessment. This memo requests Council’s approval to award a contract for the 2025 Emergency Services Facility Programming and Assessment to K+A designstudios. A Request for Proposal was released for the project and six proposals were received on the due date of January 14, 2025. The proposals were ranked as follows: Proposer Score K+A designstudios 343.96 Burkhart Croft Associates 335 Stantec 273.22 KPB Architects 265.82 MCG Explore Design 261.7 Facility Engineering Associates 163.48 K+A designstudios was the highest ranked proposer with a cost of $172,300. The proposal was reviewed and determined to be responsive and responsible. The cost is over available budget and Resolution 2025-13 must be approved to redirect funding to this project for completion. Actual cost may be negotiated lower than the proposed amount and schematic design services may be added to the contract at a later date depending on results of the assessment and the best interests of the City. The Emergency Services Facility Programming and Assessment will review the condition of our emergency facilities and assess our operational needs to develop a plan for the future of the fire, police and dispatch services. Award of this agreement is in the best interest of the City. Council’s approval is respectfully requested. Page 46 KENAI CITY COUNCIL – REGULAR MEETING JANUARY 15, 2025 – 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 January 15, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on January 15, 2025, 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 (remote participation) Victoria Askin Sovala Kisena A quorum was present. Also in attendance were: **Xiling Tanner, Student Representative Terry Eubank, City Manager Scott Bloom, City Attorney David Swarner, Finance Director Kevin Buettner, Planning Director (remote participation) Stephanie Randall, Human Resource Director Tyler Best, Parks and Recreation Director Lee Frey, Public Works Director Kathy Romain, Senior Services Director Derek Ables, Airport Manager Dave Ross, Police Chief Shellie Saner, City Clerk 3. Agenda and Consent Agenda Approval Mayor Gabriel noted the following additions to the Packet: Add to item E.6. Public Hearing - Resolution No. 2025-04 • Public Comment Add to item K.1. City Managers Report • Finance Midmonth Report Attachment MOTION: Vice Mayor Knackstedt MOVED to approve the agenda and consent agenda with the requested revisions. Council Member Askin SECONDED the motion. The items on the Consent Agenda were read into the record. Page 47 City of Kenai Council Meeting Page 2 of 10 January 15, 2025 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: There being no objection; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED ADMINISTRATIVE REPORTS 1. Kenai Tourism and Marketing Report, Inger Deede and John Papendieck, Agnew::Beck Consulting. Deede Inger and John Papendieck provided an update on the City's tourism and marketing efforts. The primary objectives are to promote Kenai as a year-round destination, increase tourism, engage residents, and support workforce recruitment and economic development. These efforts include rebranding to better reflect the community’s authentic experiences and appeal to locals, regional visitors, and national tourists. The rebranding emphasizes Kenai’s natural beauty, cultural heritage, small-town charm, and recreational opportunities, and includes replacing the "I Love Kenai" brand. The long-term communication plan involves utilizing social media, city and chamber calendars, and collaboration with regional partners to position Kenai as both a desirable place to live and an attractive destination to visit. There was also discussion about Alaska’s diverse regions, the implementation of measures to track marketing success, and appreciation for the rebranding initiative. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. PUBLIC HEARINGS 1. Ordinance No. 3446-2024 - Accepting and Appropriating a Grant from the Alaska Food Coalition to the Kenai Senior Center. (Administration) MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3446-2024. 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. VOTE: YEA: Askin, Knackstedt, Daniel, Sounart, Gabriel, Kisena, Douthit NAY: None **Student Representative Tanner: Yea MOTION PASSED. 2. Ordinance No. 3447-2025 - Accepting and Appropriating a Grant from the State of Alaska, Division of Senior and Disabilities Services to the Kenai Senior Center for Disaster Emergency Planning and Preparation. (Administration) [KMC 1.15.070(d)] Page 48 City of Kenai Council Meeting Page 3 of 10 January 15, 2025 1. Motion for Introduction 2. Motion for Second Reading (Requires a Unanimous Vote) 3. Motion for Enactment (Requires Five Affirmative Votes) MOTION: Vice Mayor Knackstedt MOVED to introduce Ordinance No. 3447-2025. Council Member Askin SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to introduce. VOTE: There being no objection; SO ORDERED. MOTION: Vice Mayor Knackstedt MOVED to conduct the second reading on Ordinance No. 3447-2025. Council Member Sounart SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to conduct the second reading. VOTE: There being no objection; SO ORDERED. MOTION: Vice Mayor Knackstedt MOVED to enact Ordinance No. 3447-2025. 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 application and award was a team effort from City staff, Senior Center Administrative Assistant Pierce applied for the grant with the help from Fire Chief Teague and Finance Controller Anderson. The grant will be utilized for purchasing emergency food for seniors, supplies for AEDs and development of a site-specific emergency plan for the Senior Center. Appreciation was stated for the City staff and their teamwork. VOTE: YEA: Knackstedt, Daniel, Sounart, Gabriel, Kisena, Douthit, Askin NAY: None **Student Representative Tanner: Yea MOTION PASSED. 3. Resolution No. 2025-01 - Authorizing the City Manager to Enter into a Restaurant Concession Agreement for the Kenai Municipal Airport. (Administration) MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-01. 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. There was discussion regarding separate utility meters for the restaurant space. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 4. Resolution No. 2025-02 - Authorizing a Budget Transfer in the Municipal Roadway Improvements Capital Project Fund of Remaining Balances from Completed Projects to a New Project for City Dock Float Replacement and Concrete Ramp Repairs. (Administration) MOTION: Page 49 City of Kenai Council Meeting Page 4 of 10 January 15, 2025 Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-02. 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 the plan was to address the floats first with bids going out within the month; concrete work would take place in the fall after the dipnet season or possibly next spring. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 5. Resolution No. 2025-03 - Amending the Authorized Staffing Table by Adding a Part-Time Administrative Assistant I Position to the Police Department. (Administration) MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-03. 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. There was discussion regarding the responsibilities and tasks of the new position. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 6. Resolution No. 2025-04 - Adopting Goals to Guide the Preparation of the Fiscal Year 2026 Annual Budget. (Administration) MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-04. 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. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 7. Resolution No. 2025-05 - Authorizing a Contract Award to Supply Microsoft Enterprise Agreements. (Administration) MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-05. 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. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 8. Resolution No. 2025-06 - Adopting the City’s Capital Improvement Plan for Fiscal Years 2026-2030. (Administration) MOTION: Page 50 City of Kenai Council Meeting Page 5 of 10 January 15, 2025 Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-06. 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. There was discussion regarding the Council on Aging Commission request that Council look into senior housing; the cost associated with a senior housing feasibility study; the possibility of adding it to the Capital Improvement Plan or starting smaller with a market analysis to determining specific needs and type for senior housing. MOTION TO AMEND: Vice Mayor Knackstedt MOVED to amend the City’s Capital Improvement Plan for Fiscal Years 2026- 2030 as follows: “Include a General Fund Project for a Feasibility Study on Senior Housing in the Amount of $300,000 for Fiscal Year 2029 to be filled with $200,000 in Grant Funds and $100,000 in General Funds.” Council Member Askin SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: There being no objection; SO ORDERED. UNANIMOUS CONSENT was requested on the main motion as amended. VOTE: There being no objection; SO ORDERED. MOTION TO RECONSIDER: Vice Mayor Knackstedt MOVED to reconsider previously voted on Resolution No. 2025-05. Council Member Askin SECONDED the motion. It was reported that motion to reconsider was brought forward to address a needed amendment to the Resolution. UNANIMOUS CONSENT was requested on the motion to reconsider. VOTE: There being no objection; SO ORDERED, and Resolution No. 2025-05 was back before the Council. 7. Resolution No. 2025-05 - Authorizing a Contract Award to Supply Microsoft Enterprise Agreements. (Administration) MOTION: Vice Mayor Knackstedt MOVED to amend Resolution No. 2025-05 as follows: Second Whereas Clause to read, “two bids were received Vendor Bid Price Zones, LLC $[33,375.92] 36,375.92 Insight Public Sector, Inc. $36438.23; and,” Third Whereas Clause to read, “Zones, LLC was the lowest bid at $[33,375.92] 36,375.92 annual cost; and,” 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. Page 51 City of Kenai Council Meeting Page 6 of 10 January 15, 2025 UNANIMOUS CONSENT was requested on the motion to amend. VOTE: There being no objection; SO ORDERED. UNANIMOUS CONSENT was requested on the reconsidered main motion as amended. VOTE: There being no objection; SO ORDERED. 9. Resolution No. 2025-07 - Requesting the Governor of the State of Alaska Designate by Proclamation the Area of the Upper Cook Inlet East Side Set Net Fishery as an Area Impacted by an Economic Disaster in 2024 and Supporting a Recovery Plan. (Askin) [Clerk’s Note: Mayor Gabriel passed the gavel to Vice Mayor Knackstedt and declared a possible conflict with Resolution No. 2025-07 as he is an Upper Cook Inlet East Side Fisherman; Vice Mayor Knackstedt ruled a conflict did exist and Mayor Gabriel abstained from discussion and voting on Resolution No. 2025-07.] MOTION: Vice Mayor Knackstedt MOVED to adopt Resolution No. 2025-07. Council Member Sounart SECONDED the motion. Mayor Gabriel opened the floor for public comment. Andy Hall, President of the Kenai Peninsula Fisherman’s Association addressed the Council in support of Resolution No. 2025-07; thanked the Council for their previous support on past disaster declarations; and noted fund ware critical to keeping our fishermen active. Eric Nyce addressed the Council in support of Resolution No. 2025-07; thanked the Council for their support in the past and continued support. There being no one else wishing to be heard, the public comment period was closed. UNANIMOUS CONSENT was requested. VOTE: Motion APPROVED, without objections. F. MINUTES 1. *Regular Meeting of December 18, 2024. (City Clerk) G. UNFINISHED BUSINESS 1. Ordinance No. 3445-2024 - Increasing Estimated Revenues and Appropriation in the Kenai City Municipal Roadway Improvement Capital Project Funds to Transfer Residual Balance from Completed Projects Back to Their Original Funding Sources, and Increasing Estimated Revenues and Appropriation in the Kenai City Water & Sewer, Public Safety, and Airport Improvements Capital Project Funds to Fully Fund Projects Approved in the FY2025 Budget. (Administration) [On 12/18/24 this item was postponed to 01/15/25] [Clerk’s Note: The motion to enact Ordinance No. 3445-2024 was on the floor from the December 18, 2024 regular City Council meeting.] 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 administration was requesting an amendment and the memo was included in the packet. MOTION TO AMEND: Vice Mayor Knackstedt MOVED to amend the Ordinance No. 3445-2024 as follows: Section 2, to read, “That the estimated revenues and appropriations be increased as follows: Page 52 City of Kenai Council Meeting Page 7 of 10 January 15, 2025 Water & Sewer Fund: Increase Estimated Revenues – Appropriation of Fund Balance $[9,610.95] 29,999.35 Increase Appropriations – Transfer to Water & Sewer Capital Project Fund $[9,610.95] 29,999.35 Water & Sewer Capital Project Fund: Increase Estimated Revenues – Transfer from Water & Sewer Fund $[9,610.95] 29,999.35 Increase Appropriations – Broad Street Lift Station Capital Project $[9,610.95] 29,999.35” Council Member Daniel SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to amend. VOTE: There being no objection; SO ORDERED. VOTE ON MAIN MOTION AS AMENDED: YEA: Daniel, Sounart, Gabriel, Kisena, Douthit, Askin, Knackstedt NAY: None **Student Representative Tanner: Yea MAIN MOTION AS AMENDED PASSED. H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) Approved by the consent agenda. 2. *Action/Approval - Non-Objection to Renewal of a Club Liquor License for Kenai Elks Lodge #2425 DBA Kenai Elks Lodge #2425 - License No. 5644. (City Clerk) Approved by the consent agenda. 3. *Action/Approval - Non-Objection to Renewal of a Restaurant/Eating Place Liquor License Jersey Subs AK LLC DBA Jersey Subs - License No. 5900. (City Clerk) Approved by the consent agenda. 4. *Action/Approval - Council Confirmation of Mayoral Nomination of Dominick Sarte to the Harbor Commission. (Gabriel) Approved by the consent agenda. 5. *Action/Approval - Council Confirmation of Mayoral Nominations of Marti Pepper and Bridget Grieme to the Parks and Recreation Commission. (Gabriel) Approved by the consent agenda. 6. *Ordinance No. 3448-2025 3448-2025 - Amending Kenai Municipal Code Section 14.22.010 - Land Use Table, to Allow Airports as a Principal Permitted Use in the Airport Light Industrial Zone. (Administration) Introduced by the consent agenda and Public Hearing set for February 5, 2025. Page 53 City of Kenai Council Meeting Page 8 of 10 January 15, 2025 7. Discussion/Action - Scheduling a Board of Adjustment Meeting for the Purpose of Approving Hearing Minutes. (City Clerk) A Board of Adjustment meeting was scheduled for February 5, 2025 at 5:30 p.m. in the Kenai City Hall Council Chambers. I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging Commission Vice Mayor Knackstedt reported on the January 9, 2025 meeting, next meeting February 13, 2025. 2. Airport Commission Council Member Knackstedt reported on the January 9, 2025 meeting, next meeting February 13, 2025. 3. Harbor Commission No report, next meeting February 10, 2025. 4. Parks and Recreation Commission No report, next meeting February 6, 2025. 5. Planning and Zoning Commission Council Member Askin reported on the January 8, 2025 meeting, next meeting January 22, 2025. 6. Beautification Commission No report, next meeting February 11, 2025. J. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Attending the Joint Chamber event for Kristen Faulkner who won two gold medals in the women’s individual road race and women’s track cycling team during the 2024 Olympics. • Attending the new exhibit opening at the Kenai Visitor Center. • He reminded everyone with the low snow amount, it was a good time to clear trees for wildfire prevention. K. ADMINISTRATION REPORTS 1. City Manager - City Manager Eubank reported on the following: • National legislation recently approved that removed the Windfall Elimination Provisions and Government Pension Offset of Social Security. • State of Alaska PERS reporting portal has been down since November due to suspicious activity; they are migrating to a cloud-based system; and the City has a substantial balance of employee contributions awaiting transmission. • Firefighter Mike Oden has resigned for a promotional opportunity. • New Police Officer Lucas Michael has started and will attend the Public Safety Academy. • Working with Kenaitze Indian Tribe on grant application to address fish passages and culverts. • The Kenai Visitor Center and Cultural Center grand reopening and their monthly rotating exhibits to display artifacts and revitalize the cultural side. • Markings on the recently updated pickleball court were incorrect, the contractor will sand and redo the floors at not cost to the City, there will be related gym closures while this is corrected. Page 54 City of Kenai Council Meeting Page 9 of 10 January 15, 2025 • Provided a status report on the Spruce Bark Beetle tree mitigation, noting that mitigation would continue until the funding is exhausted. 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) Marion Nelson, Kenai Fine Art Center Board Member addressed the Council regarding upcoming shows; and facility issues with the building. 2. Council Comments Council Member Douthit stated he hoped to attend the Joint Work Session with the Kenaitze in person. Student Representative Tanner reported on the upcoming Connections Spelling Bee and provided an overview of upcoming Kenai Central High School sporting events. Council Member Sounart thanked Red Piersee and staff for securing the grant for the Senior Center and reminded everyone to be careful on the ice. Council Member Askin thanked Red Piersee and staff for securing the grant for the Senior Center; reported attending the ribbon cutting at the Visitor Center and complimented the exhibits. Council Member Daniel said it was nice to be back and that he was looking forward to the Joint Work Session with the Kenaitze Indian Tribe. Council Member Kisena noted he was participating in a lot of hockey, stating it was nice to see Mayor Gabriel participating and reminded everyone about the upcoming KPH Youth Tournament. Vice Mayor Knackstedt thanked the contractor who would be correcting the Pickleball court; reported attending the ribbon cutting at the Visitor Center; and said he was looking forward to the Joint Work Session with the Kenaitze Indian Tribe. M. EXECUTIVE SESSION 1. City Clerk Contract Renewal Discussion and Negotiation. [AS 44.62.310 (c)(1)(2) May be a subject that tends to prejudice the reputation and character of the City Clerk and is a matter of which the immediate knowledge may have an adverse effect upon the Finance of the City.] MOTION: Vice Mayor Knackstedt MOVED to enter into executive session for contract renewal discussion and negotiation for the City Clerk. Pursuant to AS 44.62.310(c)(1)(2) may be may be a subject that tends to prejudice the reputation and character of the City Clerk and is a matter of which the immediate knowledge may have an adverse effect upon the finances of the City. The executive session will include Mayor Gabriel, City Council Members, and City Clerk Michelle Saner. Council Member Askin SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to enter into executive session. VOTE: There being no objection; SO ORDERED. MOTION: Page 55 City of Kenai Council Meeting Page 10 of 10 January 15, 2025 Vice Mayor Knackstedt MOVED to reconvene into regular session. Council Member Daniel SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to reconvene into regular session. VOTE: There being no objection; SO ORDERED. [Clerk’s Note: City Council entered into executive session at 8:22 p.m. and reconvened into regular session at 8:35 p.m.] a. Action/Approval - Council Action Related to the City Clerk Contract Renewal. MOTION: Vice Mayor Knackstedt MOVED to approve the employment agreement between the City of Kenai and City Clerk, Michelle Saner. Council Member Kisena SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. N. PENDING ITEMS - None. O. ADJOURNMENT P. INFORMATIONAL ITEMS - None. There being no further business before the Council, the meeting was adjourned at 8:35 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of January 15, 2025. ___________________________________ 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 will not affect the outcome of the official council vote. Advisory votes will be recorded in the minutes. A student representative may not move or second items during a council meeting. Page 56 PAYMENTS OVER $35,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: FEBRUARY 5, 2025 VENDOR DESCRIPTION PERS PERS ENSTAR NATURAL GAS GAS USAGE INVESTMENTS VENDOR DESCRIPTION DEPARTMENT VARIOUS VARIOUS MATURITY DATE ACCOUNT LIABILITY UTILITIES AMOUNT AMOUNT 111,411.15 49,042.16 Effect. Int. Page 57 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Shellie Saner, City Clerk DATE: January 14, 2025 SUBJECT: Action/Approval – Oaken Keg #1808 Liquor License Renewal The following establishment has submitted an application to the Alcohol and Marijuana Control Office (AMCO) for a renewal of license: Applicant: Carr-Gottstein Foods Co. D/B/A: Oaken Keg #1808 License Type: Package Store Liquor License License No.: 3218 Pursuant to KMC 2.40, a review of City accounts has been completed on the applicants and they have satisf ied all obligations to the City. With the approval of Council, a letter of non-objection to the liquor license renewal will be forwarded to the ABC Board and the applicants. Your consideration is appreciated. Page 58 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 January 7, 2025 From: Alcohol.licensing@alaska.gov ; amco.localgovernmentonly@alaska.gov Licensee: Carr-Gottstein Foods Co. DBA: Oaken Keg #1808 VIA email: legal.licensing.team@albertsons.com CC: None Local Government 1: City of Kenai Local Government 2: Kenai Peninsula Borough Via Email: cityclerk@kenai.city; micheleturner@kpb.us; sessert@kpb.us; mjenkins@kpb.us; nscarlett@kpb.us; mboehmler@kpb.us; rraidmae@kpb.us; slopez@kpb.us; bcarter@kpb.us; jrasor@kpb.us Re: Package Store #3218 Combined 2025-2026 Renewal Notice License Number: #3218 License Type: Package Store Licensee: Carr-Gottstein Foods Co. Doing Business As: Oaken Keg #1808 Physical Address: 10576 Kenai Spur Hwy Kenai, AK 99611 Designated Licensee: Carr-Gottstein Foods Co. Phone Number: 623-869-3573; 208-395-3856; 623-869-4376 Email Address: legal.licensing.team@albertsons.com ☒ License Renewal Application ☐ Endorsement Renewal Application Dear Licensee: Our staff has reviewed your application after receiving your application and required fees. Your renewal documents appear to be in order, and I have determined that your application is complete for purposes of AS 04.11.510, and AS 04.11.520. Your application is now considered complete and will be sent electronically to the local governing body(ies), your community council if your proposed premises is in Anchorage or certain locations in the Matanuska- Susitna Borough, and to any non-profit agencies who have requested notification of applications. The local governing body(ies) will have 60 days to protest the renewal of your license. Page 59 Your application will be scheduled for the February 4th, 2025 board meeting for Alcoholic Beverage Control Board consideration. The address and call-in number for the meeting will be posted on our home page. The board will not grant or deny your application at the meeting unless your local government waives its right to protest per AS 04.11.480(a). Please feel free to contact us through the Alcohol.licensing@alaska.gov email address if you have any questions. Dear Local Government: We have received completed renewal applications for the above listed licenses within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the issuance, renewal, relocation, or transfer to another person of a license with one or more endorsement, or issuance of an endorsement by sending the director and the applicant a protest and the reasons for the protest in a clear and concise statement within 60 days of the date of the notice of filing of the application. A protest received after the 60-day period may not be accepted by the board, and no event may a protest cause the board to reconsider an approved renewal, relocation, or transfer. To protest any application(s) referenced above, please submit your written protest for each within 60 days to AMCO and provide proof of service upon the applicant and proof that the applicant has had reasonable opportunity to defend the application before the meeting of the local governing body. If you have any questions, please email amco.localgovernmentonly@alaska.gov. Dear Community Council (Municipality of Anchorage and Mat-Su Borough only) We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This letter serves to provide written notice to the above referenced entities regarding the above application, as required under AS 04.11.310(b) and AS 04.11.525. Please contact the local governing body with jurisdiction over the proposed premises for information regarding review of this application. Comments or objections you may have about the application should first be presented to the local governing body. If you have any questions, please email Alcohol.licensing@alaska.gov Sincerely, Kyle Helie, Licensing Examiner II For Lizzie Kubitz, Acting Director Page 60 Action History (UTC-08:00) Submit by Meghan Thibodeau 1/7/2025 1:28:59 PM (Form Submission) Approve by David Ross 1/7/2025 2:07:37 PM (Police Department Review) The task was assigned to David Ross. The due date is: January 16, 2025 5:00 PM 1/7/2025 1:29:00 PM Approve by Jeremy Hamilton 1/7/2025 2:17:19 PM (Fire Marshall Review) The task was assigned to Jeremy Hamilton. The due date is: January 16, 2025 5:00 PM 1/7/2025 1:29:00 PM Approve by Brandon McElrea 1/7/2025 3:37:24 PM (Lands Review) No Code violations. The task was assigned to Brandon McElrea. The due date is: January 16, 2025 5:00 PM 1/7/2025 1:29:01 PM Approve by Joe Fisher 1/7/2025 3:42:24 PM (Building Official Review) The task was assigned to Joe Fisher. The due date is: January 16, 2025 5:00 PM 1/7/2025 1:29:00 PM Approve by Tina Williamson 1/8/2025 2:52:11 PM (Finance Asst Review) The task was assigned to Tina Williamson. The due date is: January 16, 2025 5:00 PM 1/7/2025 1:29:01 PM Approve by Cindy Herr 1/14/2025 10:13:31 AM (Legal Asst Review) There are no monies owed in traffic fines or restitution. The task was assigned to Cindy Herr. The due date is: January 16, 2025 5:00 PM 1/7/2025 1:29:01 PM Approve by Kevin Buettner 1/14/2025 10:15:33 AM (P&Z Department Review) The task was assigned to Planning_Director. The due date is: January 23, 2025 5:00 PM 1/14/2025 10:13:34 AM Kevin Buettner assigned the task to Kevin Buettner 1/14/2025 10:14:32 AM Approve by Scott Bloom 1/14/2025 10:21:58 AM (Legal Review) The task was assigned to City_Attorney. The due date is: January 23, 2025 5:00 PM 1/14/2025 10:13:33 AM Scott Bloom assigned the task to Scott Bloom 1/14/2025 10:21:54 AM Approve by David Swarner 1/14/2025 2:24:21 PM (Finance Review) The task was assigned to David Swarner. The due date is: January 23, 2025 5:00 PM 1/14/2025 10:13:33 AM Page 61 AMCO License Application Date License Type Licensee Doing Business As Premises Address City, State Contact Licensee Contact Phone No.Contact Email Name Phone No.Email File Upload 1/7/2025 Establishment Information Package Store Carr-Gottstein Foods Co. Oaken Keg #1808 10576 Kenai Spur Hwy Kenai, AK Contact Information Carr-Gottstein Foods Co. 623-869-3573 legal.licensing.team@albertsons.com Additional Contact Information Documents 2025-2026 #3218 Complete Renewal Application.pdf 170.43KB 2025-2026 #3218 Oaken Keg #1808 Renewal Notice.pdf 291.41KB Page 62 Document reference ID : 3916 Licensing Application Summary Application ID:3916 Applicant Name:Carr-Gottstein Foods Co. License Type applied for: Package Store License(PSL) (AS 04.09.230) Application Status:In Review Application Submitted On:11/04/2024 08:52 AM Entity Information Business Structure:Corporation Alaska Entity Number (CBPL):10023528 Entity Contact Information Entity Address:PO Box 29096 MS 6531, Phoenix, AZ, 85038, USA Ownership / Principal Party Details Principal Parent Entity Principal Party Role %Ownership Carr-Gottstein Foods Co.Inc. Ssi-Ak Holdings Stockholder/Shareholder 100 Premises Address Address:10576 Kenai Spur Hwy, Kenai, AK, USA Does the proposed site include a valid street address? Yes Page 63 Basic Business information Business/Trade Name:Oaken Keg #1808 Local Government and Community Council Details City/Municipality Kenai (City of) Borough Kenai Peninsula Borough Public Notice Posting Attestation and Publishers Affidavit Attestations I certify that all proposed licensees (as defined in AS 04.11.260) and affiliates have been listed on this application. I certify that I understand that providing a false statement on this form or any other form provided by AMCO is grounds for rejection or denial of this application or revocation of any license issued. I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check the identification of a patron will complete an approved alcohol server education course, if required by AS 04.21.025, and, while selling or serving alcoholic beverages, will carry or have available to show a current course card or a photocopy of the card certifying completion of approved alcohol server education course, if required by 3 AAC 305.700. I agree to provide all information required by the Alcoholic Beverage Control Board in support of this application. I hereby certify that I am the person herein named and subscribing to this application and that I have read the complete application, and I know the full content thereof. I declare that all of the information contained herein, and evidence or other documents submitted are true and correct. I understand that any falsification or misrepresentation of any item or response in this application, or any attachment, or documents to support this application, is sufficient grounds for denying or revoking a license/permit. I further understand that it is a Class A misdemeanor under Alaska Statute 11.56.210 to falsify an application and commit the crime of unsworn falsification. I certify that all proposed licensees have been listed with Division of Corporation, Business, and Professional Licensing. I certify that I and any individual identified in the business entity ownership section of this application, has or will read AS 04 and its implementing regulations. Page 64 Signature This application was digitally signed by : Cody Perdue on 11/3/2024 3:00:00 PM Payment Info Payment Type : CC Payment Id: c4710dc4-f9d4-4a2a-b332-278af7508cc3 Receipt Number: 100949155 Payment Date: 11/4/2024 9:42:22 AM Page 65 Document reference ID : 3916 Renewal Application Summary Application ID:3916 License No:3218 License Type applied for Renewal: Package Store License(PSL) Licensee Name:Carr-Gottstein Foods Co. Application Status:In Review Application Submited On:11/04/2024 08:52 AM Entity Information Business Structure:Corporation FEIN/SSN Number: Alaska Entity number (CBPL):10023528 Alaska Entity Formed Date: Home State: Entity Contact Information Entity Address:PO Box 29096 MS 6516, Phoenix, AZ, 85038 Page 66 Renewal Information Are there any changes to your ownership structure that have not been reported to AMCO prior to this application?: No Do you intend to sell alcoholic beverages and ship them to another location in response to written solicitation in the next two years?: No As set forth in AS 04.11.330, how many hours did you operate during the first calendar year for this renewal period?: The license was regularly operated continuously throughout the first calendar year for this renewal period. As set forth in AS 04.11.330, how many hours did you operate during the second calendar year for this renewal period?: The license was regularly operated continuously throughout the second calendar year for this renewal period. Please select the seasonality: Year-round Has any person or entity in this application been convicted or disciplined for a violation of Title 04, 3 AAC 304 or 305, or a local ordinance adopted under AS 04.21.010 in the preceding two calendar years?: No Have any notices of violation or citations been issued for this license during the preceding two years?: No Attestations Page 67 As an applicant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC 305, and that this application, including all accompanying schedules and statements, are true, correct, and complete. I agree to provide all information required by the Alcoholic Beverage Control Board or requested by AMCO staff in support of this application and understand that failure to do so by any deadline given to me by AMCO staff will result in this application being returned and the license being potentially expired if I do not comply with statutory or regulatory requirements. I certify that in accordance with AS 04.11.450, no one other than the licensee(s), as defined in AS 04.11.260, has a direct or indirect financial interest in the licensed business. I certify that this entity is in good standing with Corporations, Business and Professional Licensing (CBPL) and that all entity officials and stakeholders are current and I have provided AMCO with all required changes of the ownership structure of the business license and have provided all required documents for any new or changes of officers. I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check identification of patrons have completed an alcohol server education course approved by the ABC Board and keep current, valid copies of their course completion cards on the licensed premises during all working hours, if applicable for this license type as set forth in AS 04.21.025 and 3 AAC 305.700. I hereby certify that I am the person herein named and subscribing to this application and that I have read the complete application, and I know the full content thereof. I declare that all of the information contained herein, and evidence or other documents submitted are true and correct. I understand that any falsification or misrepresentation of any item or response in this application, or any attachment, or documents to support this application, is sufficient grounds for denying or revoking a license/permit. I further understand that it is a Class A misdemeanor under Alaska Statute 11.56.210 to falsify an application and commit the crime of unsworn falsification. Signature This application was digitally signed by : Cody Perdue on 11/03/2024 03:00 PM Payment Info Payment Type : CC Payment Id: c4710dc4-f9d4-4a2a-b332-278af7508cc3 Receipt Number: 100949155 Page 68 Payment Date: 11/4/2024 9:42:22 AM Page 69 144 North Binkley Street, Soldotna, AK 99669 | (P) 907-714-2160 | (F) 907-714-2388 | www.kpb.us Office of the Borough Clerk Wednesday, January 15, 2025 Sent via email: cityclerk@kenai.city Shellie Saner, City Clerk City of Kenai RE: Non-Objection of Application Dear Ms. Saner, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Michele Turner, CMC Borough Clerk cc: legal.licensing.team@albertsons.com; mailto:amco.localgovernmentonly@alaska.gov Licensee/Applicant : Carr-Gottstein Foods Co. Business Name : Safeway - Oaken Keg #1808 License Type : Package Store License Location : 10576 Kenai Spur Highway, Kenai, AK 99611, City of Kenai License No. : 3218 Application Type : License Renewal Page 70 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Shellie Saner, City Clerk DATE: January 20, 2025 SUBJECT: Action/Approval – Three Bears Liquor License Renewal The following establishment has submitted an application to the Alcohol and Marijuana Control Office (AMCO) for a renewal of license: Applicant: Three Bears Alaska, Inc. D/B/A: Three Bears License Type: Package Store Liquor License License No.: 4118 Pursuant to KMC 2.40, a review of City accounts has been completed on the applicants and they have satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the liquor license renewal will be forwarded to the ABC Board and the applicants. Your consideration is appreciated. Page 71 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 January 10, 2025 From: Alcohol.licensing@alaska.gov ; amco.localgovernmentonly@alaska.gov Licensee: Three Bears Alaska, Inc. DBA: Three Bears VIA email: joan@threebears.store CC: None Local Government 1: City of Kenai Local Government 2: Kenai Peninsula Borough Via Email: cityclerk@kenai.city; micheleturner@kpb.us; sessert@kpb.us; mjenkins@kpb.us; nscarlett@kpb.us; mboehmler@kpb.us; rraidmae@kpb.us; slopez@kpb.us; bcarter@kpb.us; jrasor@kpb.us Re: Package Store License #4118 Combined Renewal Notice License Number: #4118 License Type: Package Store License Licensee: Three Bears Alaska, Inc. Doing Business As: Three Bears Physical Address: 10575 Kenai Spur Hwy Kenai, AK 99611 Endorsement Type(s): Package Store Repackaging Endorsement #15552 Designated Licensee: Three Bears Alaska, Inc. Phone Number: 907-357-4311; 907-257-7839 Email Address: joan@threebears.store ☒ License Renewal Application ☒ Endorsement Renewal Application Dear Licensee: Our staff has reviewed your application after receiving your application and the required fees. Your renewal documents appear to be in order, and I have determined that your application is complete for purposes of AS 04.11.510, and AS 04.11.520. Your application is now considered complete and will be sent electronically to the local governing body(ies), your community council if your proposed premises are in Anchorage or certain locations in the Matanuska-Susitna Borough, and to any non-profit agencies who have requested notification of applications. The local governing body(ies) will have 60 days to protest the renewal of your license. Page 72 Your application will be scheduled for the February 4th, 2025 board meeting for Alcoholic Beverage Control Board consideration. The address and call-in number for the meeting will be posted on our home page. The board will not grant or deny your application at the meeting unless your local government waives its right to protest per AS 04.11.480(a). Please feel free to contact us through the Alcohol.licensing@alaska.gov email address if you have any questions. Dear Local Government: We have received completed renewal applications for the above-listed licenses within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the issuance, renewal, relocation, or transfer to another person of a license with one or more endorsements, or issuance of an endorsement by sending the director and the applicant a protest and the reasons for the protest in a clear and concise statement within 60 days of the date of the notice of filing of the application. A protest received after the 60-day period may not be accepted by the board, and no event may a protest cause the board to reconsider an approved renewal, relocation, or transfer. To protest any application(s) referenced above, please submit your written protest for each within 60 days to AMCO and provide proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before the meeting of the local governing body. If you have any questions, please email amco.localgovernmentonly@alaska.gov. Dear Community Council (Municipality of Anchorage and Mat-Su Borough only) We have received a completed renewal application for the above-listed license (see attached application documents) within your jurisdiction. This letter serves to provide written notice to the above-referenced entities regarding the above application, as required under AS 04.11.310(b) and AS 04.11.525. Please contact the local governing body with jurisdiction over the proposed premises for information regarding the review of this application. Comments or objections you may have about the application should first be presented to the local governing body. If you have any questions, please email Alcohol.licensing@alaska.gov Sincerely, Kyle Helie, Licensing Examiner II For Lizzie Kubitz, Acting Director Page 73 Action History (UTC-08:00) Submit by Meghan Thibodeau 1/13/2025 10:12:28 AM (Form Submission) Approve by Tina Williamson 1/13/2025 10:19:55 AM (Finance Asst Review) The task was assigned to Tina Williamson. The due date is: January 22, 2025 5:00 PM 1/13/2025 10:12:32 AM Approve by Brandon McElrea 1/13/2025 10:24:16 AM (Lands Review) No Code violations. The task was assigned to Brandon McElrea. The due date is: January 22, 2025 5:00 PM 1/13/2025 10:12:33 AM Approve by David Ross 1/13/2025 3:16:08 PM (Police Department Review) The task was assigned to David Ross. The due date is: January 22, 2025 5:00 PM 1/13/2025 10:12:32 AM Approve by Cindy Herr 1/14/2025 4:03:44 PM (Legal Asst Review) There are no monies owed in fines or restitution. The task was assigned to Cindy Herr. The due date is: January 22, 2025 5:00 PM 1/13/2025 10:12:33 AM Approve by Scott Bloom 1/14/2025 4:04:46 PM (Legal Review) The task was assigned to City_Attorney. The due date is: January 23, 2025 5:00 PM 1/14/2025 4:03:46 PM Scott Bloom assigned the task to Scott Bloom 1/14/2025 4:04:40 PM Approve by Kevin Buettner 1/14/2025 4:23:42 PM (P&Z Department Review) The task was assigned to Planning_Director. The due date is: January 23, 2025 5:00 PM 1/14/2025 4:03:46 PM Kevin Buettner assigned the task to Kevin Buettner 1/14/2025 4:23:27 PM Approve by David Swarner 1/14/2025 4:45:02 PM (Finance Review) The task was assigned to David Swarner. The due date is: January 23, 2025 5:00 PM 1/14/2025 4:03:46 PM Approve by Jeremy Hamilton 1/15/2025 11:36:20 AM (Fire Marshall Review) The task was assigned to Jeremy Hamilton. The due date is: January 22, 2025 5:00 PM 1/13/2025 10:12:31 AM Approve by Joe Fisher 1/20/2025 10:02:11 AM (Building Official Review) The task was assigned to Joe Fisher. The due date is: January 22, 2025 5:00 PM 1/13/2025 10:12:32 AM Page 74 AMCO License Application Date License Type Licensee Doing Business As Premises Address City, State Contact Licensee Contact Phone No.Contact Email Name Phone No.Email File Upload 1/13/2025 Establishment Information Package Store License Three Bears Alaska, Inc. Three Bears 10575 Kenai Spur Hwy Kenai, AK Contact Information Joan Travostino 907-242-4322 joan@threebears.store Additional Contact Information 907-357-4311 Documents 2025-2026 #4118 Complete Renewal Application.pdf 174.05KB 2025-2026 #4118 Three Bears Renewal Notice with Endorsement.pdf 289.88KB Page 75 Document reference ID : 4076 Licensing Application Summary Application ID:4076 Applicant Name:Three Bears Alaska, Inc. License Type applied for: Package Store License(PSL) (AS 04.09.230) Application Status:In Review Application Submitted On:11/06/2024 02:23 PM Entity Information Business Structure:Corporation FEIN/SSN Number:920081221 Alaska Entity Number (CBPL):24136D Entity Contact Information Name Phone Email Relation Joan Travostino 907-242-4322 joan@threebears.stor e Designated Licensee Entity Address:500 S Triple B Street, Wasilla, AK, 99623, USA Ownership / Principal Party Details Principal Parent Entity Principal Party Role %Ownershi p Three Bears Alaska, Inc. Three Bears Investment Group, Llc Stockholder/Sharehold er 100 Page 76 Three Bears Alaska, Inc. David A Weisz Sr.President Three Bears Alaska, Inc. Paul D Sonnenberg Vice President Three Bears Alaska, Inc. Stephen D Mierop Vice President Three Bears Alaska, Inc. Robert Andy Baldridge Secretary Three Bears Alaska, Inc. Joan Travostino Vice President Three Bears Alaska, Inc. Julie Morales Vice President Premises Address Address:10575 Kenai Spur Hwy, Kenai, AK, USA Does the proposed site include a valid street address? Yes Basic Business information Business/Trade Name:Three Bears Local Government and Community Council Details City/Municipality Kenai (City of) Borough Kenai Peninsula Borough Public Notice Posting Attestation and Publishers Affidavit Attestations Page 77 I certify that all proposed licensees (as defined in AS 04.11.260) and affiliates have been listed on this application. I certify that I understand that providing a false statement on this form or any other form provided by AMCO is grounds for rejection or denial of this application or revocation of any license issued. I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check the identification of a patron will complete an approved alcohol server education course, if required by AS 04.21.025, and, while selling or serving alcoholic beverages, will carry or have available to show a current course card or a photocopy of the card certifying completion of approved alcohol server education course, if required by 3 AAC 305.700. I agree to provide all information required by the Alcoholic Beverage Control Board in support of this application. I hereby certify that I am the person herein named and subscribing to this application and that I have read the complete application, and I know the full content thereof. I declare that all of the information contained herein, and evidence or other documents submitted are true and correct. I understand that any falsification or misrepresentation of any item or response in this application, or any attachment, or documents to support this application, is sufficient grounds for denying or revoking a license/permit. I further understand that it is a Class A misdemeanor under Alaska Statute 11.56.210 to falsify an application and commit the crime of unsworn falsification. I certify that all proposed licensees have been listed with Division of Corporation, Business, and Professional Licensing. I certify that I and any individual identified in the business entity ownership section of this application, has or will read AS 04 and its implementing regulations. Signature This application was digitally signed by : Joan Travostino on 11/5/2024 3:00:00 PM Payment Info Payment Type : CC Payment Id: f31a4526-7540-431d-86a6-d3bcd689eb84 Receipt Number: 100952013 Payment Date: 11/6/2024 2:24:46 PM Page 78 Document reference ID : 4076 Renewal Application Summary Application ID:4076 License No:4118 License Type applied for Renewal: Package Store License(PSL) Licensee Name:Three Bears Alaska, Inc. Application Status:In Review Application Submited On:11/06/2024 02:23 PM Entity Information Business Structure:Corporation FEIN/SSN Number: Alaska Entity number (CBPL):24136D Alaska Entity Formed Date: Home State: Entity Contact Information Entity Address:7362 W Parks Hwy, #814, Wasilla, AK, 99623 - Page 79 Renewal Information Are there any changes to your ownership structure that have not been reported to AMCO prior to this application?: No Do you intend to sell alcoholic beverages and ship them to another location in response to written solicitation in the next two years?: No As set forth in AS 04.11.330, how many hours did you operate during the first calendar year for this renewal period?: The license was regularly operated continuously throughout the first calendar year for this renewal period. As set forth in AS 04.11.330, how many hours did you operate during the second calendar year for this renewal period?: The license was regularly operated continuously throughout the second calendar year for this renewal period. Please select the seasonality: Year-round Has any person or entity in this application been convicted or disciplined for a violation of Title 04, 3 AAC 304 or 305, or a local ordinance adopted under AS 04.21.010 in the preceding two calendar years?: No Have any notices of violation or citations been issued for this license during the preceding two years?: No Endorsements License # License Type Trade Name License Status City Page 80 15552 Package Store Repackaging Endorsement (PSRE) Three Bears Active Attestations As an applicant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC 305, and that this application, including all accompanying schedules and statements, are true, correct, and complete. I agree to provide all information required by the Alcoholic Beverage Control Board or requested by AMCO staff in support of this application and understand that failure to do so by any deadline given to me by AMCO staff will result in this application being returned and the license being potentially expired if I do not comply with statutory or regulatory requirements. I certify that in accordance with AS 04.11.450, no one other than the licensee(s), as defined in AS 04.11.260, has a direct or indirect financial interest in the licensed business. I certify that this entity is in good standing with Corporations, Business and Professional Licensing (CBPL) and that all entity officials and stakeholders are current and I have provided AMCO with all required changes of the ownership structure of the business license and have provided all required documents for any new or changes of officers. I certify that all licensees, agents, and employees who sell or serve alcoholic beverages or check identification of patrons have completed an alcohol server education course approved by the ABC Board and keep current, valid copies of their course completion cards on the licensed premises during all working hours, if applicable for this license type as set forth in AS 04.21.025 and 3 AAC 305.700. I hereby certify that I am the person herein named and subscribing to this application and that I have read the complete application, and I know the full content thereof. I declare that all of the information contained herein, and evidence or other documents submitted are true and correct. I understand that any falsification or misrepresentation of any item or response in this application, or any attachment, or documents to support this application, is sufficient grounds for denying or revoking a license/permit. I further understand that it is a Class A misdemeanor under Alaska Statute 11.56.210 to falsify an application and commit the crime of unsworn falsification. Signature This application was digitally signed by : Joan Travostino on 11/05/2024 03:00 PM Page 81 Payment Info Payment Type : CC Payment Id: f31a4526-7540-431d-86a6-d3bcd689eb84 Receipt Number: 100952013 Payment Date: 11/6/2024 2:24:46 PM Page 82 144 North Binkley Street, Soldotna, AK 99669 | (P) 907-714-2160 | (F) 907-714-2388 | www.kpb.us Office of the Borough Clerk Friday, January 17, 2025 Sent via email: cityclerk@kenai.city Shellie Saner, City Clerk City of Kenai RE: Non-Objection of Application Dear Ms. Saner, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Michele Turner, CMC Borough Clerk cc: legal.notices@threebears.store; mailto:amco.localgovernmentonly@alaska.gov Licensee/Applicant : Three Bears Alaska, Inc. Business Name : Three Bears License Type : Package Store License Location : 10575 Kenai Spur Highway, Kenai, AK 99611, City of Kenai License No. : 4118 Application Type : License Renewal Page 83 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3449-2025 AN ORDINANCE INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND – POLICE DEPARTMENT AND ACCEPTING GRANTS FROM THE UNITED STATES DEPARTMENT OF JUSTICE AND ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION FOR THE PURCHASE OF BALLISTIC VESTS. WHEREAS, the Kenai Police Department participates in a Ballistic Vest Partnership grant program through the Department of Justice, which covers 50% of the cost of ballistic vests purchased for officers; and, WHEREAS, the City’s current insurance company, Alaska Municipal League Joint Insurance, also has a ballistic vest reimbursement program, which covers 50% of the cost of ballistic vests purchased for officers; and, WHEREAS, three ballistic vests were purchased this fiscal year for a total of $4,239 and the two programs together will cover 100% of the cost of those ballistic vests. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to accept and expend United States Department of Justice and AMLJIA grant funds in the amount of $4,239 for the purchase of three ballistic vests. Section 2. That estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues - Federal Grants – Police $ 2,119.50 Miscellaneous Grants 2,119.50 $4,239.00 Increase Expenditures – Police – Small Tools $4,239.00 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. Page 84 Ordinance No. 3449-2025 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Approved by Finance: _________________ Introduced: February 5, 2025 Enacted: February 19, 2025 Effective: February 19, 2025 Page 85 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: David Ross, Police Chief DATE: January 22, 2025 SUBJECT: Ordinance No. 3449-2025 - Increasing Estimated Revenues and Appropriations in the General Fund – Police Department and Accepting Grants from the United States Department of Justice and Alaska Municipal League Joint Insurance Association for the Purchase of Ballistic Vests. The Police Department participates in the United States Department of Justice’ Ballistic Vest Partnership, which provides grant funds for half the cost of officer ballistic vests. The City’s insurance carrier, AMLJIA, also has a grant program by which they cover half the cost of ballistic vests purchased for officers. So far this fiscal year the Police Department has purchased three ballistic vests for officers, at a total cost of $4,239 and anticipates that cost to be covered 100% by the two programs. I am respectfully requesting consideration of the ordinance accepting and appropriating the grant funds for the purpose they were intended. Page 86 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3450-2025 AN ORDINANCE AMENDING SECTIONS OF KENAI MUNICIPAL CODE TITLE 23 - PERSONNEL REGULATIONS, SECTIONS 23.05.070 - DEFINITIONS, 23.25.080 - PROMOTION, 23.30.030 - PROBATIONARY PERIOD FOR EMPLOYEES IN THE CLASSIFIED SERVICE, AND 23.55.020 - COMPENSATION STRUCTURE BY GRADE FOR EMPLOYEES IN THE CLASSIFIED SERVICE, TO ENSURE A CONSISTENT APPROACH TO PAY ADJUSTMENTS FOR CITY EMPLOYEES. WHEREAS, Ordinance 3418-2024 adopted the annual budget, salary schedule, employee classification plan and authorized staffing table for the fiscal year commencing July 1, 2024 and ending June 30, 2025; and, WHEREAS, Ordinance 3419-2024 amended sections of the personnel regulations related to the compensation structure by grade, creating two additional double-letter steps (DD-EE) in the Salary Schedule, increasing the value of the double-letter steps from 2.5% to 4.25% of base, and making amendments to the probationary period; and, 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, clearly defining an employee’s anniversary date based on the date of hire will simplify administrative processes and ensure a consistent approach for determining an employee’s years of service, eligibility for annual leave, and pay increases; and, WHEREAS, to ensure uniform compensation for promotions regardless of an employee’s current position in the step progression, it is necessary to amend the promotion policy to specify an increase of not less than four percent (4%) rather than a minimum of one pay step; and, WHEREAS, to ensure a consistent approach to compensation and streamline administrative practices, the one-step pay increase employees currently receive at the end of a probationary period will be removed, and employees will instead receive their step increase on their anniversary date; and, WHEREAS, these amendments to the probationary period and promotion policies are necessary to provide clarity, fairness, and consistency in pay adjustments for City employees and are in the best interests of the City. 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 the Kenai Municipal Code: That Kenai Municipal Code, Section 23.05.070 – Definitions, is hereby amended as follows: 23.05.070 Definitions. As used in this title, the following terms have the meanings set forth in this section: “Anniversary date” means the first of the month in which the employee was hired. Page 87 Ordinance No. 3450-2025 Page 2 of 4 New Text Underlined; [DELETED TEXT BRACKETED] “City Attorney” means an employee appointed by and directly responsible to the City Council who is the chief legal advisor to the Council and all other officers, departments, and agencies of the City government in matters relating to their official powers and duties. “City Clerk” means an officer and employee of the City appointed by and directly responsible to the City Council for an indefinite period of time who serves as clerical officer of the Council. “City Manager” means an officer and employee of the City directly responsible to the City Council who is authorized and directed to exercise the powers and fulfill the duties as specified in the Charter and Municipal Code of the City of Kenai. “Classified service” means all paid employees not in the unclassified or department head service. “Department” means the smallest functional budgetary unit of the City government established by the City Council. “Department Head Service” The department head service includes employees who are directly responsible to the City Manager for the administration of one (1) or more departments and who have been hired or completed a probationary period after June 1, 2018. Employees responsible to the City Manager for the administration of one (1) or more departments who have been hired and completed a probationary period before June 1, 2018, may enter the department head service by written request to the City Manager. “Full-Time” Employees regularly scheduled to work forty (40) hours per week (except certain Fire Department employees who work an average of fifty-six (56) hours per week) are considered “full time.” “Grievance” means an employee’s oral or written expression of dissatisfaction with some aspect of employment, a management decision affecting the employee, or an alleged violation of the employee’s rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction. “Part-time” means employees regularly scheduled to work less than forty (40) hours per week. “Probationary Period” An employee appointed to a position in the classified service must serve a probationary period, which is normally twelve (12) months. This period can be extended up to, but no longer than, eighteen (18) months. “Program or project employee” means an employee who is hired for a temporary period that may exceed six (6) months and with a prior written agreement that employment in that position will continue for at most the duration of a specified program or project that is not a regular and continuing function of a department or the City and that has an established probable date of termination. “Promotion” means an advancement of an employee from one (1) job classification to a higher job classification within the same department. “Public safety employee” means a person employed in the Police, Fire, or Communications Department. “Regular” means employees who have completed the probationary period. They may be assigned to work a full-time or part-time schedule. “Seasonal” means employees who perform seasonal work for a preestablished period of not more than six (6) months during a twelve (12) month period. Seasonal employees may be assigned a full- time or part-time schedule and are eligible for public employee retirement benefits but are ineligible for other benefits, including holiday pay. Seasonal employees who have completed the probationary period may return to the seasonal position each season subject to performance evaluations, general Page 88 Ordinance No. 3450-2025 Page 3 of 4 New Text Underlined; [DELETED TEXT BRACKETED] conduct and discipline, personnel rules and policies of the City, layoff, reorganization and other business needs of the City. “Supervisor” means an employee who is responsible to a higher divisional or department level of authority and who directs the work of others. “Temporary employee” means an employee who is hired for a preestablished period, usually during peak workloads or for vacation relief and for not more than six (6) months. The employee may be assigned to work a full-time or part-time schedule and is ineligible for benefits, including holiday pay. “Transfer” means the movement of an employee from one (1) department to another department, regardless of job classification. “Unclassified Service” The unclassified service includes all elected officials, City Manager, City Attorney, City Clerk, seasonal, temporary employees, and temporary program or project employees. Members of boards, committees, commissions, volunteers, contractors, and consultants are not employees. Section 2. Amendment of Section 23.25.080 of Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.080 – Promotion, is hereby amended as follows: 23.25.080 Promotion When an employee in the classified service is promoted from one class to another having a higher pay range, [HE OR SHE SHALL RECEIVE AN INCREASE OF NOT LESS THAN ONE (1) PAY STEP FROM HIS OR HER FORMER POSITION.] the employee will receive an increase of not less than four percent (4%) of their former position and will be placed at the appropriate step in the new pay range. 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 twelve (12) months. Promotional appointment probationary period shall, for all employees in the classified service, be not less than 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 eighteen (18) months. 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. Page 89 Ordinance No. 3450-2025 Page 4 of 4 New Text Underlined; [DELETED TEXT BRACKETED] (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 23.55.020 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 EMPLOYEE] Employees in the classified service shall be [ADVANCED ONE (1) STEP] eligible for a step increase on their first anniversary date. At succeeding anniversary dates, subject to an evaluation of “Meets Expectations” or better, the employee may be advanced a step increment subject to City Manager approval effective on the first day of the payroll period following the date the increase occurs. 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. Section 5. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 19TH DAY OF FEBRUARY, 2025. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: February 5, 2025 Enacted: February 19, 2025 Effective: March 21, 2025 Page 90 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Stephanie Randall, Human Resources Director DATE: January 23, 2025 SUBJECT: Ordinance No. 3450-2025 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.080 - Promotion, 23.30.030 - Probationary Period for Employees in the Classified Service, and 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, to Ensure a Consistent Approach to Pay Adjustments for City Employees. This memo is in support of the proposed ordinance amending sections of Kenai Municipal Code Title 23 – Personnel Regulations. This ordinance will streamline administrative processes and ensure a consistent and equitable approach to pay adjustments for City employees. The background for these proposed amendments is based on Ordinances 3418-2024 and 3419- 2024, which introduced changes to the pay schedule, including additional double-letter steps and a standard 12-month probationary period for all employees, up from six months for non-public safety employees. The updated pay schedule expanded from a 9-step to an 11-step model. Steps A-F remained annual steps increasing at 2.5% of base, while double-letter steps (AA-EE) remained biennial but increased from 2.5% to 4.25% of base. Due to the change in increases between steps, promotions for employees became disproportionate when employees later in their step progression promoted and received a greater increase in pay than those who promoted earlier in their step progression. The proposed amendments clarify how promotion and probation are handled to improve administrative efficiency and ensure fair and consistent practices for City employees who are promoted, regardless of where they are in their step progression. Below is a sectional analysis for the proposed code amendments included in the Ordinance. Section 1. This section amends KMC 23.05.070 to add a definition of “Anniversary Date,” as the first of the month in which the employee was hired, clearly defining an employee’s anniversary date as their date of hire to simplify calculations for years of service, annual leave eligibility, and pay increases. Page 91 Page 2 of 2 Section 2. This section amends KMC 23.25.080 to set a uniform amount of increase for employee pay following a promotion, ensuring uniformity across all step progressions. Section 3. This section amends KMC 23.30.030 (c) to eliminate the step increase granted upon completion of the probationary period, instead aligning pay increases with the employee anniversary date. Section 4. This section amends 23.55.020 (b) and will make employees eligible for their next step increase based on where they are in the steps (annually in single-letter steps or every other year in double letter steps). These amendments were developed in collaboration with Administration and the City Attorney to streamline administrative processes and support a consistent approach to pay adjustments. It is important to note that, if enacted, the amendments will not apply to employees currently serving a probationary period. The revised policies will only affect future hires and promotions. Thank you for your consideration. Page 92 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Derek Ables, Airport Manager DATE: January 27, 2025 SUBJECT: Workplan 2025 – Airport Commission The Airport Commission convened for regularly scheduled meetings on December 12, 2024, and January 9, 2025 to discuss their 2025 work plan goals. On January 9, 2025, 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 93 COMMISSION ANNUAL WORK PLAN Annual Commission Work Plan City of Kenai INTRODUCTION This area should include the advisory body’s missions’ statement and 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, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided should include plans on how to address those issues. This item 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 (objective number). 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.) AIRPORT The purpose of the Airport Commission is to advise the Council and Administration on issues involving the airport and lands held for the benefit of the airport. (KMC 1.95.010(a)) 1 Construction of Taxiway Sierra Unknown We (Airport Commission) strongly support, design and construction of Taxiway Sierra remain in the FY2027 Capital Improvement Budget or move to an earlier FY CIP Budget. One necessary aspect of this review is to determine what work has been accomplished to meet this goal in accordance with the Airport Master Plan. The Kenai Municipal Airport is a for profit entity, in the sense that the airport needs to generate income to maintain the airport facilities and surrounding grounds. The Airport Master Plan identifies the west side of the airport as a source of income for activities such as user fees, fuel sales and lease properties. The construction of Taxiway Sierra is essential to the access of the west side of the airport. Page 94 COMMISSION ANNUAL WORK PLAN Annual Commission Work Plan City of Kenai Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) AIRPORT Kenai Airport Manager, Kenai City Manager, Kenai City Attorney, Kenai City Council and the Kenai Airport Commission.The previous Kenai Airport Manager, Mary Bondurant, would be a great resource for a historical perspective on the matter. Funding source needs to be identified and budgeted for. Page 95 COMMISSION ANNUAL WORK PLAN Annual Commission Work Plan City of Kenai INTRODUCTION This area should include the advisory body’s missions’ statement and 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, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided should include plans on how to address those issues. This item 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 (objective number). 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.) AIRPORT The purpose of the Airport Commission is to advise the Council and Administration on issues involving the airport and lands held for the benefit of the airport. (KMC 1.95.010(a)) 2 West Side Hangar subdivision Unknown 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. The Kenai Municipal Airport Terminal seeks to be financially stable. This could generate additional revenue for the airport and allow for more use. Page 96 COMMISSION ANNUAL WORK PLAN Annual Commission Work Plan City of Kenai Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) AIRPORT Kenai Airport Manager, City Manager, City Attorney, City Council, and Airport Commission 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 97 COMMISSION ANNUAL WORK PLAN Annual Commission Work Plan City of Kenai INTRODUCTION This area should include the advisory body’s missions’ statement and 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, identify an issue or goals (objective) your commission would like to address in the upcoming year, the information provided should include plans on how to address those issues. This item 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 (objective number). 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.) AIRPORT The purpose of the Airport Commission is to advise the Council and Administration on issues involving the airport and lands held for the benefit of the airport. (KMC 1.95.010(a)) 3 Airport Master Plan- Update TBD The Airport Commission will assist HDL Engineering, providing input as they update the Kenai Airport Master Plan. Our guiding principal will be ensuring the Kenai Airport Master Plan reflects the needs of the community and compliments the vision the City of Kenai has for the airport. The Kenai Municipal Airport is the commercial aviation gateway to the City of Kenai and the Greater Kenai Peninsula. Moreover, the airport is a for profit entity, in the sense that it needs to generate income to maintain the airport facilities and surrounding grounds. As the Kenai Peninsula grows, the airport will have to grow along with it. The Airport Master Plan is a document that is a touchstone and a guide, linking the current and future needs of the flying public to the City of Kenai’s Imagine Kenai 2030 comprehensive plan and ensuring that it remains a financially viable entity. Page 98 COMMISSION ANNUAL WORK PLAN Annual Commission Work Plan City of Kenai Collaboration: (Who needs to be involved to obtain the objective?) Funding: (Are funds available, or is funding needed in a future budget?) AIRPORT HDL Engineering, Kenai Airport Manager, Kenai City Manager, Kenai City Attorney, Kenai City Council and the Kenai Airport Commission. FAA Grant money and City of Kenai. Page 99 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Kevin Buettner, Planning Director DATE: February 5, 2025 SUBJECT: Discussion - Scheduling a Joint Work Session with the Planning & Zoning Commission for the Presentation of the Draft SS4A Comprehensive Safety Action Plan The Administration has been contacted by R&M Consultants, who are contracted to complete a Safety Action Plan for the Kenai Peninsula Borough. They are requesting us to schedule a joint work session of the City Council and Planning & Zoning Commission for the presentation of the draft Safety Action Plan for USDOT’s Safe Streets and Roads for All grant funding initiative. We have proposed Wednesday, April 16 at 5:00 p.m. with April 23, at 5:00 p.m. as a secondary option. The purpose of this session is to allow the consultant team to present the draft plan and recommendations and for them to outline the overall schedule for public review and adoption. They are seeking input on the plan and its recommendations, as this will help enable the City of Kenai pursue USDOT grant funding for safety-related transportation network improvements throughout the City. This funding is not limited to state or borough owned roads. Funds would be allowed for use on any publicly maintained transportation network. This session is proposed to take place at the Kenai City Council Chambers on Wednesday, April 16 at 5:00 – 5:45 p.m. If the City Council is available, we will work with the consultant to finalize the agenda. Thank you for your consideration. Page 100 MEMORANDUM TO: Mayor Gabriel and City Council Members FROM: Shellie Saner, City Clerk DATE: January 27, 2025 SUBJECT: City of Kenai Arbitration Panel - Membership Terms Current Terms for the Arbitration Panel Terms for the Arbitration Panel are established in KMC 23.35.032(c) and are as follows: Members of the panel shall serve for indefinite terms until termination by the Council, resignation by the member, death, move from the City of Kenai, election or appointment as an officer or employee of the City of Kenai, or incapacity of the member. The Arbitration Panel meets only on an as-needed basis, and often more than ten years pass between meetings. The last appointment to the panel was in 2013. Serving on a group that meets infrequently and has indefinite terms creates challenges. Of the twelve members serving since 2013, three indicated they are willing to continue serving, four have indicated they are only interested in serving for one more year, three have moved out of the City, and two are deceased. There are currently five vacancies on the panel. To effectively manage the membership of the Arbitration Panel, I recommend amending the terms to staggered three-year terms, which is consistent with how membership terms are managed for City Commissions. If the Council is in support of this change, the Clerks Office will draft the necessary ordinance amending KMC 23.35.032(c), establishing three-year staggered terms. This would include assigning initial terms as follows: • Four members to three-year terms • Four members to two-year terms • Four members to one-year terms The proposed change would allow for annual recruitment for the Arbitration Panel alongside other Commission recruitment. It would also ensure that sitting members remain interested in serving and remind members of the need to resign if they relocate outside the City. Page 101 KENAI COUNCIL ON AGING – REGULAR MEETING JANUARY 9, 2025 – 3:00 P.M. KENAI SENIOR CENTER 361 SENIOR CT., KENAI, AK 99611 CHAIR RACHAEL CRAIG, PRESIDING Council on Aging Meeting Page 1 of 3 January 9, 2025 ACTION MINUTES A. CALL TO ORDER A Regular Meeting of the Council on Aging was held on January 9 2025, at the Kenai Senior Center, Kenai, AK. Vice Chair Rachael Craig called the meeting to order at approximately 3:00 p.m. 1. Pledge of Allegiance Vice Chair Craig led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Rachael Craig, Vice Chair William Sadler Jim Glendening Barbara Modigh Kit Hill A quorum was present. Absent: Velda Geller Frances Kilfoyle Also in attendance were: Kathy Romain, Senior Center Director Henry Knackstedt, City Council Liaison 3. Election of Chair and Vice Chair MOTION: Commissioner Hill MOVED to appoint Jim Glendening as Chair. MOTION: Commissioner Sadler MOVED to appoint Rachael Craig as Chair. A secret ballot vote took place; Director Romain counted the votes aloud. The results were 3 in favor of Rachael Craig, and 2 in favor of Jim Glendening; Rachael Craig was elected as Vice Chair. MOTION: Commissioner Hill MOVED to appoint Jim Glendening as Vice Chair. VOTE: There being no objection; SO ORDERED. 4. Agenda Approval MOTION: Vice Chair Glendening MOVED to approve the agenda as presented. Commissioner Hill SECONDED the motion. VOTE: There being no objection; SO ORDERED. Page 102 Council on Aging Meeting Page 2 of 3 January 9, 2025 B. SCHEDULED PUBLIC COMMENTS - None. C. UNSCHEDULED PUBLIC COMMENTS - None. D. APPROVAL OF MINUTES 1. December 12, 2024 Regular Meeting Minutes MOTION: Commissioner Hill MOVED to approve the December 12, 2024 Council on Aging minutes, with the following revision to the motion made during item E.1, Discussion/Recommendation – Recommending Council Investigate the Need for Additional Senior Housing: “recommend that Council [ADMINISTRATION] investigate the need for additional senior housing.” Vice Chair Glendening SECONDED the motion. VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS – None. F. NEW BUSINESS – None. G. REPORTS 1. Senior Center Director – Director Romain reported on the following: • Volunteer Appreciation Dinner scheduled for January 31, 2025. • A memo regarding Senior Housing will be provided to Council in the January 15, 2025 City Council Meeting packet. • Administrative Assistant Red Piersee wrote a grant to create emergency site specific plan for seniors, which was approved for $44,921. 2. Commission Chair – Chair Craig thanked the Commission for appointing her as Chair. 3. City Council Liaison – Council Member Knackstedt reported on the recent actions of the City Council. H. ADDITIONAL PUBLIC COMMENTS – None. I. NEXT MEETING ATTENDANCE NOTIFICATION – February 13, 2025 Chair Craig noted she would be absent. A work session was scheduled instead of the regular meeting to review the draft work plan. J. COMMISSION QUESTIONS AND COMMENTS Vice Chair Glendening commented on the beautiful Christmas lights throughout the city; thanked the Commission for appointing him as Vice Chair; noted a possible work session with the City Council. Commissioner Hill encouraged new members to be on call. Commissioner Sadler congratulated Chair Craig and Vice Chair Glendening. K. ADJOURNMENT L. INFORMATIONAL ITEMS – None. Page 103 Council on Aging Meeting Page 3 of 3 January 9, 2025 There being no further business before the Council on Aging, the meeting was adjourned at 3:50 p.m. I certify the above represents accurate minutes of the Council on Aging meeting of January 9, 2025. ___________________________________ Meghan Thibodeau Deputy City Clerk Page 104 COMMISSION ANNUAL REPORT Annual Commission Report City of Kenai SUMMARY OF REPORT MISSION STATEMENT HIGHLIGHTS In general, multiple Special Use Permits, Airport Leases and Lease extensions were recommended for approval by the commission and forwarded to Council.The Airport Commission held firm in their support for the development and construction of Taxiway Sierra and establishing a subdivision on the west side of the airport. The purpose of the Airport Commission is to advise the Council and Administration on issues involving the Airport and lands held for the benefit of the Airport. Duties include reviewing and providing recommendations on the master plan for the airport development; acting in an advisory capacity to the Council and the Administration on matters affecting the airport; making recommendations to the City Manager on the airport budget; submitting annually a list of the recommended capital improvements; and providing information and recommendations as requested by the City Council and Administration. At the direction of City Council, the Airport Commission completed the 2024 Annual Work Plan Commissioner Dan Pitts left, Mr. Daniel Knesek took his place. Commissioner Joshua Daily, representing the FAA, resigned. Mr. Joshua Belter took his place for a short time period, then resigned, Mr. Cody Whicker is now the FAA representative. At the direction of Council, Student Representative Joshua Boling is attending the Airport Commission meetings. This was the first full year with Mr. Derek Ables as Airport Manager. Airport Terminal landscaping was completed. A preliminary work session for updating the Airport Master Plan was completed with HDL Engineering. Page 105 COMMISSION ANNUAL REPORT Annual Commission Report City of Kenai ACCOMPLISHMENTS EDUCATION AND OUTREACH Objectives 1 and 2: A solid commitment was made by Airport Management and City Council for funding the construction of Taxiway Sierra and establishing the west side hangar subdivision(s) in the FY2027 budget. These two objectives will remain on the Airport Commission Work Plan until completed. Objective 3: After years of planning and different iterations, the Terminal Landscaping project was completed. The only part of the project that is still pending is the funding of the bronze bear sculptures. The Kenai Peninsula Air Fair is an annual event that highlights the airport and aviation in general. This year’s event was successful and attendance was on a par with previous events. At the direction of Council, Student Representative Joshua Boling is attending the Airport Commission meetings. Mr. Boling has attended two meetings so far, and we as a commission are looking forward to future student involvement in this civic process. Page 106 KENAI AIRPORT COMMISSION – REGULAR MEETING JANUARY 9, 2025 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR GLENDA FEEKEN, PRESIDING Airport Commission Meeting Page 1 of 3 January 9, 2025 ACTION MINUTES A. CALL TO ORDER A Regular Meeting of the Airport Commission was held on January 9, 2025, in the Kenai City Council Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Glenda Feeken, Chair Paul Minelga, Vice Chair James Zirul Jacob Caldwell Cody Whicker A quorum was present. Absent: James Bielefeld Dan Knesek Also in attendance were: Derek Ables, Airport Manager Sarah Conley, Airport Administrative Assistant Henry Knackstedt, Vice Mayor Kevin Buettner, Planning Director **Joshua Bolling, Student Representative 3. Election of Chair and Vice Chair MOTION: Vice Chair Minelga MOVED to reappoint Glenda Feeken as Chair. Commissioner Zirul SECONDED the motion. UNANIMOUS CONSENT was requested. There being no objection; SO ORDERED. MOTION: Commissioner Zirul MOVED to reappoint Paul Minelga as Vice Chair. Commissioner Caldwell SECONDED the motion. UNANIMOUS CONSENT was requested. There being no objection; SO ORDERED. 4. Agenda Approval MOTION: Page 107 Airport Commission Meeting Page 2 of 3 January 9, 2025 Commissioner Caldwell MOVED to approve the agenda as presented. Vice Chair Minelga 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. December 12, 2024 Regular Meeting Minutes MOTION: Commissioner Caldwell MOVED to approve the December 12, 2024 Airport Commission minutes. Vice Chair Minelga SECONDED the motion. VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS – None. F. NEW BUSINESS 1. Discussion/Recommendation – Recommending Council Approve Airport Commission 2025 Annual Work Plan. MOTION: Commissioner Caldwell MOVED to recommend City Council approval of the Airport Commission 2025 Annual Work Plan. Commissioner Zirul SECONDED the motion. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 2. Discussion/Recommendation – Recommend Council approve an amendment to Kenai Municipal Code to allow Airports as a Principal Permitted Use in the Airport Light Industrial Zone. MOTION: Commissioner Caldwell MOVED to recommend City Council approval of an amendment to Kenai Municipal Code to allow Airports as a Principal Permitted Use in the Airport Light Industrial Zone. Commissioner Zirul SECONDED the motion. Planning Director Buettner gave a staff report from information provided in the packet. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 3. Review/Approve – Airport Commission 2024 Annual Report for Submission to City Council. MOTION: Commissioner Zirul MOVED to recommend City Council approval of the Airport Commission 2024 Annual Report for submission to City Council. Commissioner Caldwell SECONDED the motion. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. Page 108 Airport Commission Meeting Page 3 of 3 January 9, 2025 4. Discussion/Recommendation – Recommending Council Adoption of a Resolution Authorizing the City Manager to Enter into a Restaurant Concession Agreement for the Kenai Municipal Airport. MOTION: Commissioner Zirul MOVED to recommend City Council adoption of a Resolution authorizing the City Manager to enter into a Restaurant Concession Agreement for the Kenai Municipal Airport. Commissioner Caldwell SECONDED the motion. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. G. REPORTS 1. Airport Manager – Airport Manager Ables reported that there would be a public meeting for the Airport Master Plan on Tuesday, February 4, 2025 from 5:30-7:30 p.m. 2. Commission Chair – Chair Feeken requested that Council reconsider their direction to the Airport Commission to create annual goals. 3. City Council Liaison – Council Member Knackstedt reported on recent actions of the City Council. H. ADDITIONAL PUBLIC COMMENTS – None. I. NEXT MEETING ATTENDANCE NOTIFICATION – February 13, 2025 J. COMMISSION QUESTIONS AND COMMENTS Vice Chair Minelga noted that the Airport Master Plan meeting could be shared by the Peninsula Pilot Club on Facebook. Commissioner Zirul noted that he was in support of creating Commission annual goals, and thanked Vice Chair Minelga for his work on them. K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. Administrative Report There being no further business before the Airport Commission, the meeting was adjourned at 6:27 p.m. I certify the above represents accurate minutes of the Airport Commission meeting of January 9, 2025. ___________________________________ Meghan Thibodeau Deputy City Clerk ** The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast last in the roll call order and shall not affect the outcome of the official commission vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a commission meeting. Page 109 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING JANUARY 22, 2025 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR JOE HALSTEAD, PRESIDING Planning & Zoning Commission Meeting Page 1 of 4 January 22, 2025 MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai Planning & Zoning Commission was held on January 22, 2025, in City Hall Council Chambers, Kenai, AK. Chair Halstead called the meeting to order at approximately 7:00 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 Jeff Twait, Vice Chair Glenese Pettey Sonja Earsley Stacie Krause Diane Fikes A quorum was present. Absent: Gwen Woodard Also in attendance were: Kevin Buettner, Planning Director Deborah Sounart, City Council Liaison Meghan Thibodeau, Deputy City Clerk 3. Approval of Agenda and Consent Agenda MOTION: Vice Chair Twait MOVED to approve the agenda and consent agenda. Commissioner Fikes 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. AP PROVAL OF MINUTES 1. *Regular Meeting of January 8, 2025 Page 110 Planning & Zoning Commission Meeting Page 2 of 4 January 22, 2025 Approved by the consent agenda. C. SCHEDULED PUBLIC COMMENTS - None. D. UNSCHEDULED PUBLIC COMMENTS - None. E. CONSIDERATION OF PLATS 1. Resolution PZ2025-02 - Recommending Approval of Preliminary Plat – The Lake at Kenai 2025 Addition for a Replat of Tract A, The Lake at Kenai 2016 Addition – Phase 1 in the Rural Residential (RR) Zoning District. MOTION: Vice Chair Twait MOVED to approve Resolution PZ2025-02. Commissioner Fikes SECONDED the motion. Planning Director Buettner provided an overview of the staff report as included in the packet and attached to Resolution No. PZ2025-02, and explained the purpose of the plat was to create nine residential lots and dedicate the rights-of-way for 60-foot wide Peace of Mind Circle, and 102-foot wide Anglers Cove Court. It was noted that staff’s recommendation is approval subject to the conditions specified within the staff report as attached to Resolution No. PZ2025-02. VOTE: YEA: Fikes, Twait, Earsley, Pettey, Krause, Halstead NAY: None ABSENT: Woodard MOTION PASSED WITHOUT OBJECTION. 2. Resolution PZ025-03 - Recommending Approval of Preliminary Plat – Beaver Loop Acres No. 3 Subdivision for a Subdivision of SW1/4 Nw1/4 & SW1/4 & S1/2 SE1/4 &NE1/4 SE1/4, Section 3, Township 5 North, Range 11 West, Seward Meridian in the Rural Residential (RR) Zoning District. MOTION: Commissioner Earsley MOVED to approve Resolution PZ2025-03. Vice Chair Twait SECONDED the motion. Planning Director Buettner provided an overview of the staff report as included in the packet and attached to Resolution No. PZ2025-03, and explained the purpose of the plat was a subdivision that will create five parcels. It was noted that staff’s recommendation is approval subject to the conditions specified within the staff report as attached to Resolution No. PZ2025-03. MOTION: Vice Chair Twait MOVED to correct the title on the agenda to PZ2025-03. Commissioner Earsley SECONDED the motion. UNANIMOUS CONSENT was requested on the motion to correct the title. There being no objection; SO ORDERED. VOTE: YEA: Krause, Earsley, Pettey, Fikes, Halstead, Twait NAY: None ABSENT: Woodard MOTION PASSED WITHOUT OBJECTION. Page 111 Planning & Zoning Commission Meeting Page 3 of 4 January 22, 2025 F. PUBLIC HEARINGS – None. G. UNFINISHED BUSINESS – None. H. NEW BUSINESS 1. *Action/Approval – Requesting Excused Absences for the January 8, 2025 Regular Meeting – Halstead, Earsley, and Krause Approved by the consent agenda. 2. Action/Approval – Approving the Transfer of a Conditional Use Permit PZ2021-42 for the use of a Hotel (Short Term Recreational Rentals) on the property described as Lot 1, Block 2, Anglers Acres Sub Addn. No. 1, Part 2, located at 1230 Angler Drive within the Rural Residential Zoning District. MOTION: Vice Chair Twait MOVED to approve the Transfer of a Conditional Use Permit PZ2021-42. Commissioner Fikes SECONDED the motion. Planning Director Buettner provided an overview of the staff report as included in the packet, and explained that the use will remain the same and only the owner will change for the site. It was noted that staff’s recommendation is approval subject to the conditions set forth in the previously approved CUPs. Clarification was provided that no code violations or complaints had been reported on this property. VOTE: YEA: Earsley, Pettey, Krause, Halstead, Fikes, Twait NAY: None ABSENT: Woodard MOTION PASSED WITHOUT OBJECTION. 3. Action/Approval – Approving a time extension for the finalization of Windhaven Estates Phase 4 Preliminary Plat. MOTION: Vice Chair Twait MOVED to approve a time extension for the finalization of Windhaven Estates Phase 4 Preliminary Plat. Commissioner Fikes SECONDED the motion. Planning Director Buettner provided an overview of the staff report as included in the packet, and explained that the Kenai Peninsula Borough Platting Authority has asked for the Commission’s recommendation to approve the time extension for a second time. Discussion followed on status of road development and reasons for delay. VOTE: YEA: Twait, Earsley, Fikes, Halstead, Krause, Pettey NAY: None ABSENT: Woodard MOTION PASSED WITHOUT OBJECTION. I. REPORTS 1. Planning Director – Planning Director Buettner reported on the following: • Conditional Use Permits provided in the packet under Informational Items had been requested during the previous meeting. Page 112 Planning & Zoning Commission Meeting Page 4 of 4 January 22, 2025 • Planning and Zoning Department is reviewing Title 14 for administrative changes and sections in need of update; rewrites will be brought to the Commission for their recommendation. • Kenai Municipal Airport Master Plan update is ongoing. 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 Sounart reported on recent actions of the City Council. J. ADDITIONAL PUBLIC COMMENT – None. K. NEXT MEETING ATTENDANCE NOTIFICATION 1. Next Meeting: February 12, 2025 Vice Chair Twait noted he will be absent; Commissioner Krause will be attending remotely. L. COMMISSION COMMENTS AND QUESTIONS Commissioner Pettey thanked Administration for providing the Aspen Creek CUPs in the packet. Commissioner Fikes thanked Administration for providing the Aspen Creek CUPs, and inquired about the new restaurant that will be in the Airport. M. PENDING ITEMS – None. N. ADJOURNMENT O. INFORMATIONAL ITEMS 1. Conditional Use Permits - 701 N. Forest Drive, Aspen Creek 2. Airport Master Plan Public Meeting – February 4, 2025, 5:30 PM in Council Chambers at City Hall There being no further business before the Planning & Zoning Commission, the meeting was adjourned at 7:32 p.m. I certify the above represents accurate minutes of the Planning & Zoning Commission meeting of January 8, 2025. ___________________________________ Meghan Thibodeau Deputy City Clerk Page 113 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: David Swarner, Finance Director FROM: Jennifer Anderson, Controller DATE: January 28, 2025 SUBJECT: Quarterly Financial Report – September 30, 2024 Attached is the quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of September 30, 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 August. The third 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 October or early November. The State/Federal category is below budget for all funds due to PERS aid. The State does not provide direct funding but instead makes an ‘on-behalf’ payment to the pension system. As a result, we have not recorded these expenditures in the non-departmental budget. Revenue and expenses for these items will be reconciled at the fiscal year’s end. Page 114 Quarterly General Fund Expenditure Report For Quarter Ended September 30, 2024 7/1/2023 7/1/2024 7/1/2024 7/1/2024 6/30/2024 7/1/2024 9/30/2024 9/30/2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 855,826$ 955,072$ 892,997$ (62,075)$ 93.50% Taxes 14,415,221 14,550,814 14,550,814 3,443,223 (11,107,591) 23.66% Licenses/Permits and Ambulance 1,193,996 1,119,395 1,119,395 229,127 (890,268) 20.47% State/Federal 570,399 697,430 700,509 55,879 (644,630) 7.98% Dock/Multipurpose/Miscellaneous 251,531 208,600 208,600 41,339 (167,261) 19.82% Fines and Forfeitures 71,047 74,200 74,200 17,310 (56,890) 23.33% Interest and Miscellaneous 1,403,781 839,020 839,020 464,468 (374,552) 55.36% Transfers/Central Admin Fees 2,044,449 2,060,478 2,060,478 458,550 (1,601,928) 22.25% Total Revenues 19,950,424 20,405,763 20,508,088 5,602,893 (14,905,195) 27.32% EXPENDITURES & TRANSFERS General Government 01 City Clerk 343,325$ 395,086$ 395,086$ 82,562$ 312,524$ 79.10% 11 Legislative 154,621 193,758 193,758 35,564 158,194 81.65% 12 Legal 392,939 453,734 453,734 104,870 348,864 76.89% 13 City Manager 479,894 509,738 509,738 115,868 393,870 77.27% 14 Human Resources 207,654 215,294 215,294 60,018 155,276 72.12% 15 Finance 898,315 1,019,688 1,019,688 260,141 759,547 74.49% 16 Land Administration 14,357 93,400 135,650 2,888 132,762 97.87% 18 Non-Departmental 815,167 1,225,517 1,225,517 741,748 483,769 39.47% 19 Planning and Zoning 271,792 382,395 382,395 79,902 302,493 79.10% 20 Safety 1,635 3,500 3,500 465 3,035 86.71% Total General Government 3,579,699 4,492,110 4,534,360 1,484,026 3,050,334 67.27% Public Safety 21 Police 3,721,924 3,905,469 3,905,469 917,773 2,987,696 76.50% 22 Fire 3,690,044 3,947,290 3,947,290 919,701 3,027,589 76.70% 23 Communications 904,050 1,039,422 1,039,422 275,894 763,528 73.46% 29 Animal Control 471,494 499,669 499,669 141,169 358,500 71.75% Total Public Safety 8,787,512 9,391,850 9,391,850 2,254,537 7,137,313 75.99% Public Works 31 Public Works Administration 172,412 203,895 260,891 57,733 203,158 77.87% 32 Shop 651,121 779,642 779,642 164,652 614,990 78.88% 33 Streets 1,082,800 1,159,575 1,159,575 145,402 1,014,173 87.46% 34 Buildings 367,619 470,051 470,051 78,139 391,912 83.38% 35 Street Lighting 225,553 237,097 237,097 29,559 207,538 87.53% 60 Dock 40,589 63,689 63,689 5,644 58,045 91.14% Total Public Works 2,540,094 2,913,950 2,970,946 481,129 2,489,817 83.81% Parks and Recreation & Culture 03 Visitor Center 162,292 209,453 209,453 43,936 165,517 79.02% 40 Library 962,802 1,010,418 1,013,497 237,446 776,051 76.57% 45 Parks, Recreation & Beautification 1,260,366 1,293,847 1,293,847 301,534 992,313 76.69% Total Parks and Recreation & Culture 2,385,460 2,513,718 2,516,797 582,916 1,933,881 76.84% Total Operating Expenditures 17,292,765 19,311,627 19,413,952 4,802,607 14,611,344 75.26% Transfer to other funds Street Improvement Capital Project Fund 892,085 385,663 385,663 385,663.00 - 0.00% Kenai Recreation Center Capital Project Fund 75,000 - - - - - Public Safety Capital Project Fund 100,000 140,631 140,631 140,631.00 - 0.00% Municipal Facility Improvement Cap Proj Fund 94,847 - - - - Multipurpose Facility Capital Proj. Fund - - - - - - Visitor Center Improvement Capital Proj. Fund - - - - - - Information Technology Capital Proj. Fund - - - - - - City Hall Improvement Capital Proj. Fund 50,000 - - - - - 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 - 25,000 25,000 25,000 - 0.00% Kenai Senior Center Imp. Capital Project Fund - 50,000 50,000 50,000 - 0.00% Park Improvement Capital Project Fund 125,000 144,625 144,625 144,625 - 0.00% Senior Citizen Special Revenue Fund 199,476 217,467 217,467 54,367 163,100 75.00% Debt Service 130,625 130,750 130,750 - 130,750 100.00% Total Transfer to other funds 1,667,033 1,094,136 1,094,136 800,286 293,850 26.86% Total Expenditures & Transfers 18,959,798 20,405,763 20,508,088 5,602,893 14,905,194 72.68% Net Revenues over(under) Expenditures 990,626$ -$ -$ -$ (1)$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 115 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended September 30, 2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 49,397$ 49,397$ (49,397)$ 0.00% Beach Parking 157,839.00 164,980 164,980 173,592 8,612 105.22% Beach Camping 216,085.00 210,102 210,102 238,852 28,750 113.68% Dock Launch & Park 100,489.00 100,754 100,754 88,783 (11,971) 88.12% Dock Parking Only 12,460.00 12,495 12,495 11,483 (1,012) 91.90% Participant Drop-off Fee 6,275.00 4,707 4,707 4,110 (597) 87.32% Interest Earnings 19,502.00 5,000 5,000 - (5,000) 0.00% PERS Grant 249.00 1,861 1,861 - (1,861) 0.00% Credit Card Fees (11,202.00) (11,500) (11,500) (11,181) 319 97.23% Transfer from Other Funds - - - - - 0.00% Total Revenue 501,697 537,796 537,796 505,639 (32,157) 94.02% EXPENDITURES & TRANSFERS Public Safety 122,066$ 136,531$ 136,531$ 50,867$ 85,664$ 62.74% Streets 26,517 39,302 39,302 8,234 31,068 79.05% Boating Facility 41,120 42,815 42,815 27,818 14,997 35.03% Parks, Recreation & Beautification 206,597 244,148 244,148 150,590 93,558 38.32% Total Operating Expenditures 396,300 462,796 462,796 237,509 225,287 48.68% Transfers to Other Funds 75,000 75,000 75,000 - 75,000 0.00% Total Expenditures & Transfers 471,300 537,796 537,796 237,509 300,287 55.84% Net Revenues over Expenditures 30,397$ -$ -$ 268,130$ (268,130)$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 116 Quarterly Airport Fund Expenditure Report For Quarter Ended September 30, 2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 137,346 145,522 -$ (145,522)$ 0.00% State/Federal 185,760 37,700 37,700 - (37,700) 0.00% Interest , Leases & Fees 906,504 1,131,083 1,131,083 376,407 (754,676) 33.28% Terminal Revenues 1,250,769 934,842 934,842 306,277 (628,565) 32.76% Landing Fees 407,678 384,855 384,855 92,994 (291,861) 24.16% Transfers In 1,065,855 1,090,387 1,090,387 - (1,090,387) 0.00% Total Revenues 3,816,566 3,716,213 3,724,389 775,678 (2,948,711) 20.83% EXPENDITURES & TRANSFERS Terminal Area 561,253$ 693,273$ 693,273$ 124,187$ 569,086$ 82.09% Airfield 2,046,384 2,225,638 2,225,638 433,114 1,792,524 80.54% Administration 354,463 378,370 378,370 86,116 292,254 77.24% Other Buildings & Areas 175,856 224,878 224,878 50,772 174,106 77.42% Training Facility 159,337 168,237 168,237 17,256 150,981 89.74% Total Expenditures 3,297,293 3,690,396 3,690,396 711,446 2,978,951 80.72% Transfer to other funds Airport Improvement Capital Projects 796,875 25,817 33,993 33,993 - 0.00% Total Transfer to other funds 796,875 25,817 33,993 33,993 - 0.00% Total Expenditures & Transfers 4,094,168 3,716,213 3,724,389 745,440 2,978,951 79.98% Net Revenues over Expenditures (277,602)$ -$ -$ 30,238$ 30,240$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 117 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended September 30, 2024 Original * FY2023 FY2024 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 191,029 191,029 - (191,029)$ 0.00% State/Federal 20,117 35,719 35,719 - (35,719) 0.00% Water/Sewer Fees 3,229,357 3,416,136 3,416,136 947,767 (2,468,369) 27.74% Penalty and Interest 39,038 42,588 42,588 13,033 (29,555) 30.60% Interest and Miscellaneous 283,629 80,000 80,000 93,868 13,868 117.34% Transfers In 30,000 - - - - 0.00% Total Revenues 3,602,141 3,765,472 3,765,472 1,054,667 (2,710,804) 28.01% EXPENDITURES & TRANSFERS Water 883,063$ 1,144,481$ 1,144,481$ 256,887$ 887,594$ 77.55% Sewer 458,611 761,507 761,507 118,802 642,705 84.40% Wastewater Treatment Plant 1,113,532 1,237,094 1,237,094 229,628 1,007,466 81.44% Total Expenditures 2,455,206 3,143,082 3,143,082 605,317 2,537,765 80.74% Transfer to other funds - Water & Sewer Capital Projects 679,970 622,390 622,390 - 622,390 100.00% Total Transfer to other funds 679,970 622,390 622,390 - 622,390 100.00% Total Expenditures & Transfers 3,135,176 3,765,472 3,765,472 605,317 3,160,155 83.92% Net Revenues over Expenditures 466,965$ -$ -$ 449,350$ 449,351$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 118 Quarterly Senior Fund Expenditure Report For Quarter Ended September 30, 2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 45,021$ 45,021$ 45,021 -$ 100.00% State Grants 278,855 261,646 261,646$ 54,635 (207,011) 20.88% Federal Grants - - -$ - - 0.00% USDA Grant 25,005 22,000 22,000$ 2,349 (19,651) 10.68% Choice Waiver 103,427 80,000 80,000$ 24,653 (55,347) 30.82% KPB Grant 186,143 186,143 186,143$ - (186,143) 0.00% United Way - - -$ - - 0.00% Rents & Leases 12,479 10,000 10,000$ 1,477 (8,523) 14.77% Miscellaneous Donations 14,683 21,500 21,500$ 333 (21,167) 1.55% Donations - Senior Connection 102,850 120,000 120,000$ 327 (119,673) 0.27% Meal Donations 93,718 97,650 97,650$ 23,587 (74,063) 24.15% Ride Donations 6,037 6,000 6,000$ 1,242 (4,758) 20.70% Transfer from General Fund - Operations 199,476 217,467 217,467$ 54,367 (163,100) 25.00% Other 60 300 2,800$ 2,956 156 105.57% Total Revenues 1,022,733 1,067,727 1,070,227 210,947 (859,280) 19.71% EXPENDITURES & TRANSFERS Senior Citizen Access 224,366$ 233,071$ 232,891$ 53,696$ 179,195$ 76.94% Congregate Meals 140,210 184,526 184,567 43,413 141,154 76.48% Home Meals 484,983 433,927 436,427 94,310 342,117 78.39% Senior Transportation 113,640 130,479 130,479 30,150 100,329 76.89% Choice Waiver 67,902 85,724 85,724 13,127 72,597 84.69% Total Expenditures 1,031,101 1,067,727 1,070,088 234,696 835,392 78.07% Transfer to other funds - - - - - - 0.00% Total Transfer to other funds - - - - - 0.00% Total Expenditures & Transfers 1,031,101 1,067,727 1,070,088 234,696 835,392 78.07% Net Revenues over Expenditures (8,368)$ -$ 139$ (23,749)$ (23,888)$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 119 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Dave Swarner, Finance Director DATE: January 23, 2025 SUBJECT: September 2024 Quarterly Investment Report City of Kenai Investment Portfolio At September 30, 2024 the City had investments with a market value of $36,715,828. That is up from $34,589,701 at June 30, 2024. The City’s portfolio is yielding 4.59% that is up from 4.42% at June 30, 2024. The Federal Fund Rate did decrease during the quarter with the rate between at 5.50%-4.75%. Fair market value adjustments to the portfolio through September 30, 2024 are a negative $327,525. As of June 30, 2024, the portfolios fair market value adjustment was a negative $567,359. 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 $12,397,225 AML Investment Pool 3,673,352 Wells Fargo Money Market 17,923,886 FDIC Insured Certificates of Deposit 1,705,274 Bank Balance 1,016,091 Total $ 36,715,828 Permanent Fund Investments At September 30, 2024, the portfolio value was $36,873,492. That is up from $34,659,153 at June 30,2024. It is comprised of $30,436,945, 82.54% Airport Land Sale Permanent Fund, $3,915,402, 10.62% General Land Sale Permanent Fund monies, $1,337,801, 3.63% Kenai Senior Connection monies, $910,621, 2.47% Kenai Senior Center Cone Memorial Trust monies, and $272,723, 0.74% Kenai Community Foundation holdings. Page 120 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY September 30, 2024 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 1,016,091$ 0.01% Wells Fargo Secured Money Market 17,923,886 5.36% FDIC Insured Certificates of Deposit 1,705,274 2.94% Alaska Municipal League Investment Pool 3,673,352 5.36% Total Cash & Cash Equivalents 24,318,603 4.97% Average Yield Government Securities Maturities Less than 1 Year 5,978,128 4.51% Maturities 1 to 2 Years 1,347,674 4.15% Maturities Greater than 2 Years 5,071,423 2.96% Total Government Securities 12,397,225 3.84% Total Portfolio 36,715,828$ 4.59% Investment Portfolio - Purchase Price 37,283,187$ Investment Portfolio - Fair Value 09/30/24 36,715,828 Fair Value Adjustment - 06/30/24 (567,359) Fair Value Adjustment thru - 09/30/2024 239,834 Cummulative Change in Fair Value (327,525)$ June 30, 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 121 CITY OF KENAI Investments 09-30-24 COK CITY OF KENAI INVESTMENTS 9/30/2024 Current year cost or Unrealized Total DAYS AT SHARE WEIGHTED Maturity Maturity Expected Call 07/01/24 09/30/24 Gain Accrued EFFECT.DATE DATE in FROM MATURITY OF AVERAGE from purch from today SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE PURCH.DUE months TODAY (PAR)Interest TOTAL RATE FHLB 4.625 12/13/24 Bullet 3130ATUR6 2,542,786.81 2,490,925.00 2,499,550.00 8,625.00 34,687.50 4.625 1/26/2023 12/13/2024 23 74 2,500,000.00 57,813.00 6.808%0.3149 FNA 2017-M1 A2 Bullet 3136AUG21 136,318.08 133,701.02 136,994.37 3,293.35 294.23 3.223 5/5/2022 10/25/2026 54 755 0.373%0.0120 FHR 2011-3824 CL JY Mtge Bullet 3137A7SV3 67,039.71 60,123.12 60,789.90 666.78 203.48 3.045 4/27/2022 3/15/2026 47 531 0.166%0.0050 FHR 4543 VH Mtge Bullet 3137BMQ58 357,451.70 344,654.06 351,493.02 6,838.96 896.51 3.094 6/15/2022 6/15/2027 60 988 0.957%0.0296 FHMS K053 A1 Bullet 3137BN6F6 106,433.03 76,200.10 77,127.36 927.26 165.06 0.383 11/27/2020 2/25/2025 51 148 0.210%0.0008 FHMS K057 AM Bullet 3137BRQK4 1,201,808.86 1,174,435.60 1,201,617.95 27,182.35 2,700.53 3.357 8/16/2022 8/25/2026 48 694 3.273%0.1099 FHMS K064 A2 Bullet 3137BXQY1 1,009,373.33 957,290.00 983,420.00 26,130.00 2,686.67 3.010 5/16/2022 3/25/2027 58 906 2.678%0.0806 FHMS K732 A2 Bullet 3137FG7F6 2,344,664.96 2,361,765.70 2,382,463.80 20,698.10 7,398.01 4.719 11/29/2022 9/25/2025 34 360 6.489%0.3062 FN Am47124 Bullet 3138L74J2 71,351.09 (10,030.68) - 10,030.68 - 0.759 11/20/2020 12/1/2024 48 62 0.000%- FN AM7514 Bullet 3138L8K45 970,170.56 982,830.00 991,230.00 8,400.00 2,558.33 4.529 1/3/2023 2/1/2025 25 124 2.700%0.1223 FN AN4476 Bullet 3138LG6N1 2,336,664.97 2,176,043.68 2,229,245.96 53,202.28 6,065.32 3.193 2/28/2022 1/1/2027 58 823 6.072%0.1939 FHR 2935 AC Mtge Bullet 31395MQ28 8,192.81 1,300.21 1,313.56 13.35 5.49 0.487 2/5/2021 2/15/2025 48 138 0.004%0.0000 FN BL4497 Bullet 3140HV7K4 954,234.23 883,350.91 905,503.13 22,152.22 2,085.99 2.137 3/2/2022 11/1/2026 56 762 2.466%0.0527 FN BL5704 Bullet 3140HXKS8 468,700.66 452,607.28 464,766.98 12,159.70 1,028.40 3.158 6/13/2022 2/1/2027 56 854 1.266%0.0400 G2 5122 Mtge Bullet 36202FVP8 105,432.99 84,107.28 85,265.69 1,158.41 250.92 0.874 11/16/2021 7/20/2026 56 658 0.232%0.0020 GNR 2010-114 CL KB Bullet 38377KBE9 34,285.16 26,135.67 26,443.10 307.43 88.67 2.327 4/29/2022 9/16/2025 41 351 0.072%0.0017 TOTAL 12,714,908.95 12,195,438.95 12,397,224.82 201,785.87 61,115.11 2.682 agreed tp wf trust 2,500,000.00 33.765% 4.505 4.15 2.96 FDIC Insured CD's CD - 12/31/10 - 0.000%- 3.4 GMATBK 8/4/25 57803 02007GXF5 245,114 240,362.15 243,414.85 3,052.70 1,323.67 3.400 8/9/2022 8/4/2025 36 308 245,000.00 4,165.00 0.663%0.0225 0.237797278 2.04194699 1.75 SECSTB 12/18/24 8941 062163BN9 245,000 240,891.35 243,429.55 2,538.20 152.71 1.750 12/18/2019 12/18/2024 60 79 245,000.00 2,144.00 0.663%0.0116 0.398241855 0.523777773 3.40 COF 8/10/27 33954 14042TJK4 245,000 238,301.70 245,661.50 7,359.80 1,186.74 3.400 8/10/2022 8/10/2027 60 1044 245,000.00 4,165.00 0.669%0.0227 0.401673269 6.985287334 1.75 CNBMIL 12/9/24 3814 17801GBW8 245,000 241,102.05 243,613.30 2,511.25 258.42 1.750 12/9/2019 12/9/2024 60 70 245,000.00 2,144.00 0.664%0.0116 0.398542463 0.464457213 3.40 DFS 8/16/27 5649 254673Q41 245,000 232,882.30 240,472.40 7,590.10 1,049.81 3.400 8/16/2022 8/16/2027 60 1050 245,000.00 4,165.00 0.655%0.0223 0.393188738 6.877034674 1.85 LIVOAK 12/11/24 58665 538036HF4 245,000 241,175.55 243,632.90 2,457.35 372.53 1.850 12/11/2019 12/11/2024 60 72 245,000.00 2,266.00 0.664%0.0123 0.398574528 0.477765855 5.00 WAL 10/28/24 57512 95763PLV1 245,000 244,669.25 245,049.00 379.75 5,269.18 5.000 4/27/2023 10/28/2024 18 28 245,000.00 6,125.00 0.667%0.0334 0.120684274 0.18687777 0.000% TOTAL FDIC Insured CD's 1,715,114.11 1,679,384.35 1,705,273.50 25,889.15 9,613.06 2.936 1,715,000.00 WELLS MONEY MKT 17,923,885.91 17,923,885.91 17,923,885.91 70,708.34 5.360 1 1 17,923,885.91 48.818%2.6166 AML POOL - City ACCT Agreed to Amlip 3,673,352.11 3,673,352.11 3,673,352.11 7,903.53 5.360 1 1 3,673,352.11 10.005%0.5363 0.10004819 0.10004819 Agreed to GL 36,027,261.08 35,472,061.32 35,699,736.34 227,675.02 149,340.04 WF Cash Agreed to WF 1,016,091.33 1,016,091.33 1,016,091.33 - - 0.010 1 1 1,016,091.33 2.767%0.0003 0.027674477 0.027674477 TOTAL 37,043,352.41 36,488,152.65 36,715,827.67 227,675.02 149,340.04 28,543,329.35 100.000%4.5612 MONTHS (327,524.74) 2.476425074 17.68487028 TOTAL CURRENT YIELD 4.5612%0.048451699 Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 11,014,748.30 2.9981%5,557,557 5,457,190.94 OK 6000000 8,562,998.81 Liquidity 20% Minimum 7,343,165.53 4.9148%29,810,597 (22,467,431.24) OK Maturity 1 - 2 years 3.1858%1,347,674 4.5612%36,715,828 Page 122 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY June 30, 2024 Current or Current Average Portfolio Target Portfolio 30-Sep-23 31-Dec-23 31-Mar-24 30-Jun-24 30-Sep-24 Yield Weight Weight Maximum Cash Cash & Cash Equivalents 948,884 1,308,042 1,128,803 1,307,136 1,579,660 5.31%3.83%3.00%10.00% Fixed Income Investment Grade Government & Corporate Securities Government Securities 6,319,451 6,940,375 7,328,908 7,305,846 7,459,932 4.32%20.33% Corporate Securities Investment Grade 1,769,098 1,885,811 2,087,936 2,167,855 2,246,755 5.38%5.52% Total Investment Grade Government & Corporate Securities 8,088,549 8,826,186 9,416,844 9,473,701 9,706,687 4.58%25.85%26.00%36.00% Domestic Fixed Income Exchange Traded Funds - Vanguard Short-term TIPS - - - - - 0.00% High Yield Domestic - SPDR Portfolio High Yield Bonds - - - - - 0.00% Vanguard Hi Yield Corporate Fund Admiral Shares 1,250,762 1,321,228 1,364,730 1,318,826 1,445,842 3.87% Total High Yield Domestic 1,250,762 1,321,228 1,364,730 1,318,826 1,445,842 3.87%4.00%8.00% Total Fixed Income 9,339,311 10,147,414 10,781,574 10,792,527 11,152,529 4.58%29.72%30.00%44.00% Equities: Domestic Equities: Large-Cap Index 6,921,490 7,359,149 8,042,786 7,773,957 8,197,973 21.56%22.00%32.00% Small-Cap Index 1,595,049 1,826,236 1,744,116 1,629,232 1,786,564 5.35%5.00%10.00% Mid-Cap Index 3,179,061 3,514,258 3,786,897 3,497,995 3,721,439 10.29%10.00%18.00% Total Domestic Equities 11,695,600 12,699,643 13,573,799 12,901,184 13,705,976 37.20%37.00%60.00% International Equities: International Equity 2,506,111 2,739,781 2,890,317 2,730,483 2,925,345 8.03%8.00%16.00% Emerging Markets 1,569,042 1,667,623 1,756,309 1,763,546 1,891,372 4.88%5.00%10.00% Total International Equities 4,075,153 4,407,404 4,646,626 4,494,029 4,816,717 12.91%13.00%26.00% Real Estate: JP Morgan Beta Builders MSCI Reit 626,986 729,274 658,865 625,038 718,459 2.14%2.00%4.00% Total Real Estate 626,986 729,274 658,865 625,038 718,459 2.14%2.00%4.00% Infrastructure - Flexshares Stoxx Global Broad Infrastucture 1,546,153 1,707,934 1,734,647 1,636,071 1,827,700 5.00%5.00%10.00% Total Equities 17,943,892 19,544,255 20,613,937 19,656,322 21,068,852 57.25%57.00%100.00% Alternative Beta: Blackrock Systematic Multi-Strategy 1,556,892 1,558,476 756,883 904,462 955,055 4.56% IQ Hedge Multi-Strategy Tracker 781,321 815,055 945,975 544,266 562,683 2.39% JPMORGAN:HEDGED EQ I - - 941,799 911,796 958,891 0.00% Core Alternative ETF 770,206 767,136 371,390 542,644 595,823 2.25% Total Alternative Beta 3,108,419 3,140,667 3,016,047 2,903,168 3,072,452 9.20%10.00%15.00% Total Portfolio 31,340,506 34,140,378 35,540,361 34,659,153 36,873,493 4.69%100.00%100.00%169.00% Total ALSPF Balance 25,994,288 28,316,544 29,477,710 28,609,136 30,436,945 Total GLSPF Balance 3,354,787 3,654,494 3,804,352 3,680,273 3,915,402 Total Kenai Community Foundation 178,316 194,246 202,211 256,345 272,723 Total Kenai Senior Connection 1,106,558 1,205,415 1,254,845 1,257,463 1,337,801 Total Cone Memorial Trust Permanent Fund 706,557 769,679 801,241 855,936 910,621 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 100.00% Benchmark ---0 0 -15.00% -10.00% -5.00% 0.00% 5.00% 10.00%Portfolio Performance Page 123 $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 $1,028,478 to Airport Operations. Transfer of $1,065,618 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 Transfer of $146,180 to General Fund Operations. $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Total Kenai Community Foundation Balance Transfer of $52,500 from cash treasury account. 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 $1,600,000 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. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 Total Cone Memorial Trust Permanent Fund Initial investment.Received $47,000 in trust proceeds Page 124 September 2024 CITY OF KENAI PERMANENT FUNDS Investment Report Page 125 BEGINNING VALUE + ACCRUED $36,280,305 TRANSFERS IN/ OUT -$583 REALIZED GAINS/ LOSSES $616 CHANGE IN MARKET VALUE $491,353 INTEREST INCOME $44,003 DIVIDEND INCOME $64,374 ENDING VALUE + ACCRUED $36,880,067 Investment Performance Portfolio Composition Performance is annualized for periods greater than one year. Inception to date performance begins October 01, 2008Past performance is not indicative of future results. Portfolio Overview 2 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | SEPTEMBER 2024 Page 126 3 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | SEPTEMBER 2024 Portfolio Summary and Target MARKET VALUE ($)ASSETS (%)TARGET (%)RANGE RISK CONTROL U.S. Fixed Income 9,703,318 26.3%26%6% to 36% Cash 1,611,737 4.4%3%0% to 10% Risk Control Total 11,315,055 30.7% RISK ASSET U.S. High Yield Fixed Income 1,438,429 3.9%4%0% to 8% U.S. Large Cap Equity 8,179,532 22.2%22%12% to 32% U.S. Mid Cap Equity 3,722,973 10.1%10%0% to 18% U.S. Small Cap Equity 1,786,854 4.8%5%0% to 10% Developed International Equity 2,923,876 7.9%8%4% to 16% Emerging Market Equity 1,896,160 5.1%5%0% to 10% Risk Asset Total 19,947,824 54.1% ALTERNATIVES REITs 716,735 1.9%2%0% to 4% Alternative Beta 3,073,368 8.3%10%0% to 15% Infrastructure 1,827,085 5.0%5%0% to 10% Alternatives Total 5,617,187 15.2% TOTAL PORTFOLIO 36,880,067 100.0% 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 127 4 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | SEPTEMBER 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 128 5 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | SEPTEMBER 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 129 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 130 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager THROUGH: David Swarner, Finance Director FROM: Jennifer Anderson, Controller DATE: January 28, 2025 SUBJECT: Quarterly Financial Report – December 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 December 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, the majority of the property tax is collected in September and November, thus tax revenues will level out over the remainder of the year. 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 131 Quarterly General Fund Expenditure Report For Quarter Ended December 31, 2024 7/1/2023 7/1/2024 7/1/2024 7/1/2024 6/30/2024 7/1/2024 6/30/2025 12/31/2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 855,826$ 1,004,909$ (1,004,909)$ 0.00% Taxes 14,415,221 14,550,814 14,550,814 8,320,712 (6,230,102) 57.18% Licenses/Permits and Ambulance 1,193,996 1,119,395 1,119,395 942,547 (176,848) 84.20% State/Federal 570,399 697,430 700,509 240,708 (459,801) 34.36% Dock/Multipurpose/Miscellaneous 251,531 208,600 208,600 132,655 (75,945) 63.59% Fines and Forfeitures 71,047 74,200 74,200 53,167 (21,033) 71.65% Interest and Miscellaneous 1,403,781 839,020 867,020 1,009,066 142,046 116.38% Transfers/Central Admin Fees 2,044,449 2,060,478 2,060,478 917,100 (1,143,378) 44.51% Total Revenues 19,950,424 20,405,763 20,585,925 11,615,956 (8,969,970) 56.43% EXPENDITURES & TRANSFERS General Government 01 City Clerk 343,325$ 395,086$ 395,086$ 163,924$ 231,162$ 58.51% 11 Legislative 154,621 193,758 193,758 76,285 117,473 60.63% 12 Legal 392,939 453,734 453,734 206,632 247,102 54.46% 13 City Manager 479,894 509,738 510,238 228,522 281,716 55.21% 14 Human Resources 207,654 215,294 215,294 102,754 112,540 52.27% 15 Finance 898,315 1,019,688 1,019,688 460,413 559,275 54.85% 16 Land Administration 14,357 93,400 135,650 30,433 105,217 77.57% 18 Non-Departmental 815,167 1,225,517 1,224,284 989,214 235,070 19.20% 19 Planning and Zoning 271,792 382,395 382,395 161,901 220,494 57.66% 20 Safety 1,635 3,500 3,500 465 3,035 86.71% Total General Government 3,579,699 4,492,110 4,533,627 2,420,543 2,113,084 46.61% Public Safety 21 Police 3,721,924 3,905,469 3,905,469 1,760,203 2,145,266 54.93% 22 Fire 3,690,044 3,947,290 3,947,290 1,753,985 2,193,305 55.56% 23 Communications 904,050 1,039,422 1,039,422 495,929 543,493 52.29% 29 Animal Control 471,494 499,669 499,669 239,341 260,328 52.10% Total Public Safety 8,787,512 9,391,850 9,391,850 4,249,458 5,142,392 54.75% Public Works 31 Public Works Administration 172,412 203,895 260,891 115,921 144,970 55.57% 32 Shop 651,121 779,642 779,642 313,091 466,551 59.84% 33 Streets 1,082,800 1,159,575 1,159,575 340,163 819,412 70.66% 34 Buildings 367,619 470,051 470,051 168,635 301,416 64.12% 35 Street Lighting 225,553 237,097 237,097 81,659 155,438 65.56% 60 Dock 40,589 63,689 63,689 10,222 53,467 83.95% Total Public Works 2,540,094 2,913,950 2,970,946 1,029,691 1,941,255 65.34% Parks and Recreation & Culture 03 Visitor Center 162,292 209,453 210,186 99,895 110,291 52.47% 40 Library 962,802 1,010,418 1,013,497 450,831 562,666 55.52% 45 Parks, Recreation & Beautification 1,260,366 1,293,847 1,321,847 587,843 734,004 55.53% Total Parks and Recreation & Culture 2,385,460 2,513,718 2,545,529 1,138,569 1,406,960 55.27% Total Operating Expenditures 17,292,765 19,311,627 19,441,952 8,838,260 10,603,691 54.54% Transfer to other funds Street Improvement Capital Project Fund 892,085 385,663 435,500.00 435,500.00 - 0.00% Kenai Recreation Center Capital Project Fund 75,000 - - - - - Public Safety Capital Project Fund 100,000 140,631 140,631.00 140,631.00 - 0.00% Municipal Facility Improvement Cap Proj Fund 94,847 - - - - Multipurpose Facility Capital Proj. Fund - - - - - - Visitor Center Improvement Capital Proj. Fund - - - - - - Information Technology Capital Proj. Fund - - - - - - City Hall Improvement Capital Proj. Fund 50,000 - - - - - 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 - 25,000 25,000.00 25,000 - 0.00% Kenai Senior Center Imp. Capital Project Fund - 50,000 50,000.00 50,000 - 0.00% Park Improvement Capital Project Fund 125,000 144,625 144,625.00 144,625 - 0.00% Senior Citizen Special Revenue Fund 199,476 217,467 217,467.00 108,734 108,733 50.00% Debt Service 130,625 130,750 130,750.00 116,625 14,125 10.80% Total Transfer to other funds 1,667,033 1,094,136 1,143,973 1,021,115 122,858 10.74% Total Expenditures & Transfers 18,959,798 20,405,763 20,585,925 9,859,375 10,726,549 52.11% Net Revenues over(under) Expenditures 990,626$ -$ -$ 1,756,581$ 1,756,579$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 132 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended December 31, 2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 49,397$ 49,397$ -$ (49,397)$ 0.00% Beach Parking 157,839.00 164,980 164,980 173,592 8,612 105.22% Beach Camping 216,085.00 210,102 210,102 238,852 28,750 113.68% Dock Launch & Park 100,489.00 100,754 100,754 88,743 (12,011) 88.08% Dock Parking Only 12,460.00 12,495 12,495 11,483 (1,012) 91.90% Participant Drop-off Fee 6,275.00 4,707 4,707 4,110 (597) 87.32% Interest Earnings 19,502.00 5,000 5,000 - (5,000) 0.00% PERS Grant 249.00 1,861 1,861 - (1,861) 0.00% Credit Card Fees (11,202.00) (11,500) (11,500) (10,876) 624 94.57% Transfer from Other Funds - - - - - 0.00% Total Revenue 501,697 537,796 537,796 505,904 (31,892) 94.07% EXPENDITURES & TRANSFERS Public Safety 122,066$ 136,531$ 136,531$ 71,192$ 65,339$ 47.86% Streets 26,517 39,302 39,302 9,991 29,311 74.58% Boating Facility 41,120 42,815 42,815 29,248 13,567 31.69% Parks, Recreation & Beautification 206,597 244,148 244,148 159,490 84,658 34.67% Total Operating Expenditures 396,300 462,796 462,796 269,921 192,875 41.68% Transfers to Other Funds 75,000 75,000 75,000 - 75,000 0.00% Total Expenditures & Transfers 471,300 537,796 537,796 269,921 267,875 49.81% Net Revenues over Expenditures 30,397$ -$ -$ 235,983$ (235,983)$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 133 Quarterly Airport Fund Expenditure Report For Quarter Ended December 31, 2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 137,346 145,522 284,039$ 138,517$ 195.19% State/Federal 185,760 37,700 37,700 - (37,700) 0.00% Interest , Leases & Fees 906,504 1,131,083 1,131,083 524,493 (606,590) 46.37% Terminal Revenues 1,250,769 934,842 934,842 490,480 (444,362) 52.47% Landing Fees 407,678 384,855 384,855 175,196 (209,659) 45.52% Transfers In 1,065,855 1,090,387 1,090,387 - (1,090,387) 0.00% Total Revenues 3,816,566 3,716,213 3,724,389 1,474,208 (2,250,181) 39.58% EXPENDITURES & TRANSFERS Terminal Area 561,253$ 693,273$ 693,273$ 255,655$ 437,618$ 63.12% Airfield 2,046,384 2,225,638 2,225,638 887,634 1,338,004 60.12% Administration 354,463 378,370 378,370 167,151 211,219 55.82% Other Buildings & Areas 175,856 224,878 224,878 81,839 143,039 63.61% Training Facility 159,337 168,237 168,237 47,937 120,300 71.51% Total Expenditures 3,297,293 3,690,396 3,690,396 1,440,216 2,250,180 60.97% Transfer to other funds Airport Improvement Capital Projects 796,875 25,817 33,993 33,993 - 0.00% Total Transfer to other funds 796,875 25,817 33,993 33,993 - 0.00% Total Expenditures & Transfers 4,094,168 3,716,213 3,724,389 1,474,208 2,250,180 60.42% Net Revenues over Expenditures (277,602)$ -$ -$ -$ (1)$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 134 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended December 31, 2024 Original * FY2023 FY2024 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 191,029 191,029 -$ (191,029)$ 0.00% State/Federal 20,117 35,719 35,719 - (35,719) 0.00% Water/Sewer Fees 3,229,357 3,416,136 3,416,136 1,751,296 (1,664,840) 51.27% Penalty and Interest 39,038 42,588 42,588 23,547 (19,041) 55.29% Interest and Miscellaneous 283,629 80,000 80,000 186,726 106,726 233.41% Transfers In 30,000 - - - - 0.00% Total Revenues 3,602,141 3,765,472 3,765,472 1,961,568 (1,803,903) 52.09% EXPENDITURES & TRANSFERS Water 883,063$ 1,144,481$ 1,144,481$ 482,826$ 661,655$ 57.81% Sewer 458,611 761,507 761,507 229,933 531,574 69.81% Wastewater Treatment Plant 1,113,532 1,237,094 1,237,094 462,880 774,214 62.58% Total Expenditures 2,455,206 3,143,082 3,143,082 1,175,639 1,967,443 62.60% Transfer to other funds - Water & Sewer Capital Projects 679,970 622,390 622,390 - 622,390 100.00% Total Transfer to other funds 679,970 622,390 622,390 - 622,390 100.00% Total Expenditures & Transfers 3,135,176 3,765,472 3,765,472 1,175,639 2,589,833 68.78% Net Revenues over Expenditures 466,965$ -$ -$ 785,929$ 785,930$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 135 Quarterly Senior Fund Expenditure Report For Quarter Ended December 31, 2024 Original * FY2024 FY2025 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 45,021$ 45,021$ 44,038$ (983)$ 97.82% State Grants 278,855 261,646 261,646$ 109,270 (152,376) 41.76% Federal Grants - - -$ - - 0.00% USDA Grant 25,005 22,000 22,000$ 8,175 (13,825) 37.16% Choice Waiver 103,427 80,000 80,000$ 41,566 (38,434) 51.96% KPB Grant 186,143 186,143 186,143$ 93,071 (93,072) 50.00% United Way - - -$ - - 0.00% Rents & Leases 12,479 10,000 10,000$ 3,812 (6,188) 38.12% Miscellaneous Donations 14,683 21,500 21,500$ 18,830 (2,670) 87.58% Donations - Senior Connection 102,850 120,000 120,000$ 15 (119,985) 0.01% Meal Donations 93,718 97,650 97,650$ 42,785 (54,865) 43.81% Ride Donations 6,037 6,000 6,000$ 2,252 (3,748) 37.53% Transfer from General Fund - Operations 199,476 217,467 217,467$ 108,734 (108,733) 50.00% Other 60 300 2,800$ 2,956 156 105.57% Total Revenues 1,022,733 1,067,727 1,070,227 475,503 (594,723) 44.43% EXPENDITURES & TRANSFERS Senior Citizen Access 224,366$ 233,071$ 232,891$ 103,983$ 128,908$ 55.35% Congregate Meals 140,210 184,526 184,567 85,677 98,890 53.58% Home Meals 484,983 433,927 436,427 198,361 238,066 54.55% Senior Transportation 113,640 130,479 130,479 60,489 69,990 53.64% Choice Waiver 67,902 85,724 85,724 26,993 58,731 68.51% Total Expenditures 1,031,101 1,067,727 1,070,088 475,503 594,585 55.56% Transfer to other funds - - - - - - 0.00% Total Transfer to other funds - - - - - 0.00% Total Expenditures & Transfers 1,031,101 1,067,727 1,070,088 475,503 594,585 55.56% Net Revenues over Expenditures (8,368)$ -$ 139$ -$ (138)$ *Note: The original budget includes outstanding encumbrances at 6/30/2024. Page 136 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Dave Swarner, Finance Director DATE: January 23, 2025 SUBJECT: December 2024 Quarterly Investment Report City of Kenai Investment Portfolio At December 31, 2024 the City had investments with a market value of $38,379,667. That is up from $36,715,828 at September 30, 2024. The City’s portfolio is yielding 3.95% that is down from 4.59% at September 30, 2024. The Federal Fund Rate did decrease during the quarter with the rate between at 4.75%-4.25%. Fair market value adjustments to the portfolio through December 31, 2024 are a negative $340,368. As of June 30, 2024, the portfolios fair market value adjustment was a negative $567,359. 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 $30,996,336 AML Investment Pool 5,581,568 Wells Fargo Money Market 502,868 FDIC Insured Certificates of Deposit 727,789 Bank Balance 571,076 Total $ 38,379,667 Permanent Fund Investments At December 31, 2024, the portfolio value was $36,183,194. That is down from $36,873,492 at September 30,2024. It is comprised of $29,867,144, 82.54% Airport Land Sale Permanent Fund, $3,842,103, 10.62% General Land Sale Permanent Fund monies, $1,312,757, 3.63% Kenai Senior Connection monies, $893,573, 2.47% Kenai Senior Center Cone Memorial Trust monies, and $267,617, 0.74% Kenai Community Foundation holdings. Page 137 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY December 31, 2024 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 571,076$ 0.01% Wells Fargo Secured Money Market 502,868 5.36% FDIC Insured Certificates of Deposit 727,790 3.40% Alaska Municipal League Investment Pool 5,581,568 5.36% Total Cash & Cash Equivalents 7,383,302 4.75% Average Yield Government Securities Maturities Less than 1 Year 6,372,876 3.86% Maturities 1 to 2 Years 16,211,484 4.14% Maturities Greater than 2 Years 8,412,005 2.96% Total Government Securities 30,996,365 3.76% Total Portfolio 38,379,667$ 3.95% Investment Portfolio - Purchase Price 38,947,026$ Investment Portfolio - Fair Value 12/31/24 38,379,667 Fair Value Adjustment - 06/30/24 (567,359) Fair Value Adjustment thru - 12/31/2024 226,991 Cummulative Change in Fair Value (340,368)$ December 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 138 CITY OF KENAI Investments 12-31-24 COK CITY OF KENAI INVESTMENTS 12/30/2024 Current year cost or Unrealized Total DAYS AT SHARE WEIGHTED Maturity Maturity Expected Call 07/01/24 12/30/24 Gain Accrued EFFECT.DATE DATE in FROM MATURITY OF AVERAGE from purch from today SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE PURCH.DUE months TODAY (PAR)Interest TOTAL RATE USTN 3.75 4/15/26 Bullet 91282CGV7 4,582,463.69 4,582,463.69 4,570,836.00 (11,627.69) 36,964.29 3.750 11/27/2024 4/15/2026 17 471 - 11.910%0.4466 USTN 4.25 1/31/26 Bullet 91282CJV4 4,148,979.96 4,148,979.96 4,100,082.00 (48,897.96) 72,919.84 4.250 11/27/2024 1/31/2026 14 397 - 10.683%0.4540 USTN 4.125 3/31/29 Bullet 91282CKG5 1,001,846.24 1,001,846.24 990,170.00 (11,676.24) 10,539.15 4.125 11/27/2024 3/31/2029 52 1552 - 2.580%0.1064 USTN 4.125 10/31/29 Bullet 91282CLR0 499,526.61 499,526.61 494,240.00 (5,286.61) 3,532.46 4.125 11/27/2024 10/31/2029 59 1766 - 1.288%0.0531 USTN 4.125 10/31/26 Bullet 91282CLS8 5,230,294.27 5,230,294.27 5,218,075.60 (12,218.67) 36,949.52 4.125 11/27/2024 10/31/2026 23 670 - 13.596%0.5608 USTN 4.125 11/15/27 Bullet 91282CLX7 998,008.02 998,008.02 995,590.00 (2,418.02) 5,355.66 4.125 11/27/2024 11/15/2027 36 1050 - 2.594%0.1070 USTN 4.25 10/15/25 Bullet 91282CFP1 2,719,122.56 2,719,122.29 2,700,675.00 (18,447.29) 24,589.29 4.250 12/17/2024 10/15/2025 10 289 - 7.037%0.2991 USTN 3.625 3/31/28 Bullet 91282CGT2 1,011,141.21 1,011,141.21 1,003,905.50 (7,235.71) 9,493.22 3.625 11/27/2024 3/31/2028 40 1187 - 2.616%0.0948 USTN 2.25 11/15/25 Bullet 912828M56 548,609.03 548,609.03 550,418.40 1,809.37 1,635.91 2.225 11/27/2024 11/15/2025 12 320 - 1.434%0.0319 USTN 3.125 11/15/28 Bullet 9128285M8 984,701.46 984,701.46 980,812.25 (3,889.21) 4,158.75 3.125 11/27/2024 11/15/2028 48 1416 - 2.556%0.0799 FNA 2017-M1 A2 Bullet 3136AUG21 134,363.71 131,746.65 134,293.94 2,547.29 290.17 3.223 5/5/2022 10/25/2026 54 664 0.350%0.0113 FHR 2011-3824 CL JY Mtge Bullet 3137A7SV3 32,533.17 25,616.58 26,463.08 846.50 88.46 3.045 4/27/2022 3/15/2026 47 440 0.069%0.0021 FHR 4543 VH Mtge Bullet 3137BMQ58 325,055.47 312,257.83 319,494.55 7,236.72 815.52 3.094 6/15/2022 6/15/2027 60 897 0.832%0.0258 FHMS K053 A1 Bullet 3137BN6F6 70,287.05 40,054.12 41,412.15 1,358.03 88.31 0.383 11/27/2020 2/25/2025 51 57 0.108%0.0004 FHMS K057 AM Bullet 3137BRQK4 1,201,808.86 1,174,435.60 1,196,443.30 22,007.70 2,700.53 3.357 8/16/2022 8/25/2026 48 603 3.117%0.1047 FHMS K064 A2 Bullet 3137BXQY1 1,009,373.33 957,290.00 972,680.00 15,390.00 2,686.67 3.010 5/16/2022 3/25/2027 58 815 2.534%0.0763 FHMS K732 A2 Bullet 3137FG7F6 2,030,165.48 2,047,266.22 2,074,431.50 27,165.28 6,428.31 4.719 11/29/2022 9/25/2025 34 269 5.405%0.2551 FN AM7514 Bullet 3138L8K45 970,170.56 982,830.00 995,820.00 12,990.00 2,643.61 4.529 1/3/2023 2/1/2025 25 33 2.595%0.1175 FN AN4476 Bullet 3138LG6N1 2,321,861.68 2,161,240.39 2,195,432.05 34,191.66 6,226.57 3.193 2/28/2022 1/1/2027 58 732 5.720%0.1826 FHR 2935 AC Mtge Bullet 31395MQ28 7,052.53 159.93 177.60 17.67 0.74 0.487 2/5/2021 2/15/2025 48 47 0.000%0.0000 FN BL4497 Bullet 3140HV7K4 950,071.48 879,188.16 895,801.45 16,613.29 2,145.88 2.137 3/2/2022 11/1/2026 56 671 2.334%0.0499 FN BL5704 Bullet 3140HXKS8 466,155.27 450,061.89 459,681.07 9,619.18 1,057.04 3.158 6/13/2022 2/1/2027 56 763 1.198%0.0378 G2 5122 Mtge Bullet 36202FVP8 68,142.18 68,142.18 69,488.76 1,346.58 204.36 0.874 11/16/2021 7/20/2026 56 567 0.181%0.0016 GNR 2010-114 CL KB Bullet 38377KBE9 17,675.43 9,525.94 9,941.46 415.52 33.31 2.327 4/29/2022 9/16/2025 41 260 0.026%0.0006 TOTAL 31,329,409.25 30,964,508.27 30,996,365.66 31,857.39 231,547.57 3.136 agreed tp wf trust - 80.762% 3.863 4.14 2.96 FDIC Insured CD's CD - 12/31/10 - 0.000%- 3.4 GMATBK 8/4/25 57803 02007GXF5 245,114 240,362.15 243,821.55 3,459.40 3,423.29 3.400 8/9/2022 8/4/2025 36 217 245,000.00 4,165.00 0.635%0.0216 0.227868351 1.378575678 3.40 COF 8/10/27 33954 14042TJK4 245,000 238,301.70 244,348.30 6,046.60 3,286.36 3.400 8/10/2022 8/10/2027 60 953 245,000.00 4,165.00 0.637%0.0216 0.382205795 6.067377448 3.40 DFS 8/16/27 5649 254673Q41 245,000 232,882.30 239,619.80 6,737.50 3,149.42 3.400 8/16/2022 8/16/2027 60 959 245,000.00 4,165.00 0.624%0.0212 0.374809549 5.987425174 0.000% TOTAL FDIC Insured CD's 735,114.11 711,546.15 727,789.65 16,243.50 9,859.07 3.400 735,000.00 WELLS MONEY MKT 502,868.24 502,868.24 502,868.24 2,832.66 5.360 1 1 502,868.24 1.310%0.0702 AML POOL - City ACCT Agreed to Amlip 5,581,568.28 5,581,568.28 5,581,568.28 11,098.17 5.360 1 1 5,581,568.28 14.543%0.7795 0.145430344 0.145430344 Agreed to GL 38,148,959.88 37,760,490.94 37,808,591.83 48,100.89 255,337.47 WF Cash Agreed to WF 571,075.81 571,075.81 571,075.81 - - 0.010 1 1 571,075.81 1.488%0.0001 0.014879644 0.014879644 TOTAL 38,720,035.69 38,331,566.75 38,379,667.64 48,100.89 255,337.47 8,125,512.33 100.000%4.0136 MONTHS (340,368.05) 1.145193684 13.59368829 TOTAL CURRENT YIELD 4.0136%0.037242982 Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 11,513,900.29 3.4799%8,895,974 2,617,926.77 OK 2,437,653.70 Liquidity 20% Minimum 7,675,933.53 4.5575%13,272,210 (5,596,276.46) OK Maturity 1 - 2 years 3.8612%16,211,484 4.0136%38,379,668 Page 139 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY June 30, 2024 Current or Current Average Portfolio Target Portfolio 31-Dec-23 31-Mar-24 30-Jun-24 30-Sep-24 31-Dec-24 Yield Weight Weight Maximum Cash Cash & Cash Equivalents 1,308,042 1,128,803 1,307,136 1,579,661 1,932,083 5.31%3.83%3.00%10.00% Fixed Income Investment Grade Government & Corporate Securities Government Securities 6,940,375 7,328,908 7,305,846 7,459,932 7,069,475 4.34%20.33% Corporate Securities Investment Grade 1,885,811 2,087,936 2,167,855 2,246,755 2,165,812 5.33%5.52% Total Investment Grade Government & Corporate Securities 8,826,186 9,416,844 9,473,701 9,706,687 9,235,287 4.59%25.85%26.00%36.00% Domestic Fixed Income Exchange Traded Funds - Vanguard Short-term TIPS - - - - - 0.00% High Yield Domestic - SPDR Portfolio High Yield Bonds - - - - - 0.00% Vanguard Hi Yield Corporate Fund Admiral Shares 1,321,228 1,364,730 1,318,826 1,445,842 1,419,728 3.87% Total High Yield Domestic 1,321,228 1,364,730 1,318,826 1,445,842 1,419,728 3.87%4.00%8.00% Total Fixed Income 10,147,414 10,781,574 10,792,527 11,152,529 10,655,015 4.59%29.72%30.00%44.00% Equities: Domestic Equities: Large-Cap Index 7,359,149 8,042,786 7,773,957 8,197,973 8,197,973 21.56%22.00%32.00% Small-Cap Index 1,826,236 1,744,116 1,629,232 1,786,564 1,786,564 5.35%5.00%10.00% Mid-Cap Index 3,514,258 3,786,897 3,497,995 3,721,439 3,721,439 10.29%10.00%18.00% Total Domestic Equities 12,699,643 13,573,799 12,901,184 13,705,976 13,705,976 37.20%37.00%60.00% International Equities: International Equity 2,739,781 2,890,317 2,730,483 2,925,345 2,925,345 8.03%8.00%16.00% Emerging Markets 1,667,623 1,756,309 1,763,546 1,891,372 1,891,372 4.88%5.00%10.00% Total International Equities 4,407,404 4,646,626 4,494,029 4,816,717 4,816,717 12.91%13.00%26.00% Real Estate: JP Morgan Beta Builders MSCI Reit 729,274 658,865 625,038 718,459 718,459 2.14%2.00%4.00% Total Real Estate 729,274 658,865 625,038 718,459 718,459 2.14%2.00%4.00% Infrastructure - Flexshares Stoxx Global Broad Infrastucture 1,707,934 1,734,647 1,636,071 1,827,700 1,827,700 5.00%5.00%10.00% Total Equities 19,544,255 20,613,937 19,656,322 21,068,852 21,068,852 57.25%57.00%100.00% Alternative Beta: Blackrock Systematic Multi-Strategy 1,558,476 756,883 904,462 955,055 955,055 4.56% IQ Hedge Multi-Strategy Tracker 815,055 945,975 544,266 562,683 562,683 2.39% JPMORGAN:HEDGED EQ I - 941,799 911,796 958,891 958,891 0.00% Core Alternative ETF 767,136 371,390 542,644 595,823 595,823 2.25% Total Alternative Beta 3,140,667 3,016,047 2,903,168 3,072,452 3,072,452 9.20%10.00%15.00% Total Portfolio 34,140,378 35,540,361 34,659,153 36,873,494 36,728,402 4.69%100.00%100.00%169.00% Total ALSPF Balance 28,316,544 29,477,710 28,609,136 30,436,945 29,867,144 Total GLSPF Balance 3,654,494 3,804,352 3,680,273 3,915,402 3,842,103 Total Kenai Community Foundation 194,246 202,211 256,345 272,723 267,617 Total Kenai Senior Connection 1,205,415 1,254,845 1,257,463 1,337,801 1,312,757 Total Cone Memorial Trust Permanent Fund 769,679 801,241 855,936 910,621 893,574 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 0 Portfolio 100.00% Benchmark ---0 0 (0.15) (0.10) (0.05) - 0.05 0.10 Portfolio Performance Page 140 $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 $1,028,478 to Airport Operations. Transfer of $1,065,618 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 Transfer of $146,180 to General Fund Operations. $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 Total Kenai Community Foundation Balance Transfer of $52,500 from cash treasury account. 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 $1,600,000 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. $- $200,000 $400,000 $600,000 $800,000 $1,000,000 Total Cone Memorial Trust Permanent Fund Initial investment. Received $47,000 in trust proceeds Page 141 December 2024 CITY OF KENAI PERMANENT FUNDS Investment Report Page 142 BEGINNING VALUE + ACCRUED $37,319,343 TRANSFERS IN/ OUT -$445 REALIZED GAINS/ LOSSES $139,665 CHANGE IN MARKET VALUE -$1,548,751 INTEREST INCOME $90,103 DIVIDEND INCOME $185,786 ENDING VALUE + ACCRUED $36,185,702 Investment Performance Portfolio Composition Performance is annualized for periods greater than one year. Inception to date performance begins October 01, 2008Past performance is not indicative of future results. Portfolio Overview 2 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | DECEMBER 2024 Page 143 3 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | DECEMBER 2024 Portfolio Summary and Target MARKET VALUE ($)ASSETS (%)TARGET (%)RANGE RISK CONTROL U.S. Fixed Income 9,235,168 25.5%26%6% to 36% Cash 1,978,798 5.5%3%0% to 10% Risk Control Total 11,213,966 31.0% RISK ASSET U.S. High Yield Fixed Income 1,412,371 3.9%4%0% to 8% U.S. Large Cap Equity 8,076,846 22.3%22%12% to 32% U.S. Mid Cap Equity 3,719,883 10.3%10%0% to 18% U.S. Small Cap Equity 1,837,878 5.1%5%0% to 10% Developed International Equity 2,646,672 7.3%8%4% to 16% Emerging Market Equity 1,726,484 4.8%5%0% to 10% Risk Asset Total 19,420,134 53.7% ALTERNATIVES REITs 657,306 1.8%2%0% to 4% Alternative Beta 3,225,313 8.9%10%0% to 15% Infrastructure 1,668,983 4.6%5%0% to 10% Alternatives Total 5,551,602 15.3% TOTAL PORTFOLIO 36,185,702 100.0% 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 144 4 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | DECEMBER 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 145 5 | TRUSTED ADVISORS · MORE EXPERTS · BETTER ACCESS CITY OF KENAI PERMANENT FUNDS | DECEMBER 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 146 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 147 MEMORANDUM TO: Mayor Gabriel and City Council Members FROM: Shellie Saner, City Clerk DATE: January 27, 2025 SUBJECT: Nomination by City Council Members for Appointments to the City of Kenai Arbitration Panel Purpose: The purpose of the Personnel Board - Arbitration Panel is to hear appeals from City employees in the classified service on disciplinary actions which resulted in suspension, demotion, or dismissal. (KMC 23.35.030(e)) Vacancies: There are currently five (5) vacancies on the Arbitration Panel. Vacancies on the Arbitration Panel are chosen by the City Council from nominees made by both City employees and members of the City Council. (KMC 23.35.032(a)) Qualifications: To be eligible to serve on the Arbitration Panel, members must be a resident of the City of Kenai and must not hold any other office or position in the government of the City. (KMC 23.35.032(c)) Terms: Members of the Arbitration Panel serve indefinite terms until termination by the Council, resignation by the member, death, move from the City of Kenai, election or appointment as an officer or employee of the City, or incapacity of the member. (KMC 23.35.032(c)). How to Nominate: If you wish to nominate an individual for consideration for appointment, please have your nominee complete the nomination form and submit it to the City Clerk’s Office at 210 Fidalgo Ave., Kenai, Alaska. Application Deadline: The deadline for nominees to turn in their application is February 26, 2025. Page 148 3HUVRQQHO$UELWUDWLRQ 3DQHO1RPLQDWLRQ)RUP ApplicationWREHFRPSOHWHGE\QRPLQHH First Name:*Last Name:* Residence Address: * If appointed, select items approved for publication on City Website: Mailing Address:* Mailing City:*Mailing State:* Primary Phone:*Home Phone: E-mail:* 0HPEHUVRIWKH$UELWUDWLRQPanelVKDOOEHFKRVHQE\WKH&LW\&RXQFLOIURP QRPLQHHVPDGHE\&LW\HPSOR\HHVDQGPHPEHUV RIWKH&LW\&RXQFLO 1DPHRI1RPLQDWRU:* Why do you want to be involved with thH3HUVRQQHO$UELWUDWLRQPanel? List Current Organization Memberships:List Past Organization Memberships: What background, experience or other credentials do you possess to bring to the 3HUVRQQHO$UELWUDWLRQPanel? Mailing Zip:* 3ULPDU\3KRQH +RPH3KRQH (PDLO 6XEPLWIRUPWRWKH.HQDL&LW\&OHUN V2IILFHDW)LGDOJR$YH.HQDLRUWRFLW\FOHUN#NHQDLFLW\'DWH6XEPLWWHG +RZORQJKDYH\RXEHHQDUHVLGHQWRIWKH&LW\RI.HQDL?* Name of Spouse: Name of Employer: 0HPEHUVPXVWEHDUHVLGHQWRIWKH&LW\RI.HQDLDQGPXVWQRWKROG DQRWKHURIILFHRUSRVLWLRQLQWKHJRYHUQPHQWRIWKH&LW\RI.HQDL Page 149 FEBRUARY 5, 2025 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET ACTION ITEM REQUESTED BY PAGE Add to Item C.1. Scheduled Public Comments - Kenai Chamber of Commerce and Visitor Center Annual Report • 2024 Annual Report City Clerk 2 Add to Item K.1. City Manager’s Report • Project Related Federal Funding Memo Administration 16 Year End Report 2024 Prepared by Samantha Springer Executive Director Kenai Visitor & Cultural Center Facility Management Services Submitted to City of Kenai 2 Table Of Contents YEAR IN REVIEW FACILITY USAGE & VISITORS STAFFING BOARD OF DIRECTORS HOURS OF OPERATION FEE SCHEDULE INVENTORY & EQUIPMENT UPCOMING 2024 SCHEDULE Kenai Visitor & Cultural Center Facility Management Services 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 3 2024 Year in Review Throughout the year, the Kenai Chamber of Commerce and Visitor Center has remained steadfast in its commitment to community engagement, collaboration, and fostering economic growth on the Kenai Peninsula. Successful Execution of Signature Events: Our commitment to the continuity of time-honored traditions was evident in the successful execution of signature events, notably the 4th of July celebration, Kenai Silver Salmon Derby, Kenai River Marathon, and Christmas Comes to Kenai. These events contribute significantly to the social and community focus we are always striving to achieve. Expansion of Community-Focused Programming: In response to evolving community interests, we expanded our programming to offer new and engaging experiences. The introduction of the Community Business Lecture Series provided valuable educational opportunities on topics such as public speaking, graphic design, conflict resolution, and more. Additionally, our Free Family Movie Nights, held from January to May and again in December, created a fun and accessible activity for local families to enjoy. Enhancing the Kenai Silver Salmon Derby: To make the Kenai Silver Salmon Derby more accessible, we implemented online ticket sales, resulting in increased participation. Furthering our efforts, we partnered with KRSA to sell tickets during the Women's Classic event, adding an additional 80+ participants. These strategic changes contributed to the derby’s overall success and engagement in an uncertain year in regards to the silver salmon run. Strengthening Cultural and Historical Initiatives: A significant milestone for the year was the addition of a Cultural Center Coordinator position. This role has been instrumental in developing a rotating exhibit schedule within the cultural center, marking an essential step toward obtaining museum accreditation. The expansion of exhibits ensures that our community has greater access to historical and cultural resources while fostering education and appreciation. Building and Strengthening Community Partnerships: Throughout 2024, we continued to strengthen relationships not only with the City of Kenai but also with other chambers on the Kenai Peninsula, KPEDD, and the Kenai Peninsula Borough. These partnerships have been instrumental in developing new ways to support local businesses, drive economic development, and enhance tourism opportunities. Looking Ahead: As we move into 2025, the Kenai Chamber of Commerce and Visitor Center is poised for even greater community impact. We are excited to introduce monthly cultural exhibits accompanied by a new lecture series, "Kenai Chronicles: Beyond the Exhibit," which will provide deeper insight into historical topics. Our commitment to supporting businesses remains strong as we continue to highlight training opportunities that address their evolving needs. With a fully scheduled luncheon calendar and ongoing efforts to expand our community staple events—including the 4th of July, the Haunted Chamber, and Christmas Comes to Kenai—we look forward to another year of growth and innovation. In conclusion, I extend my sincere gratitude to our members, partners, and the community at large for your support throughout 2024. Together, we have laid a strong foundation for the Kenai Chamber of Commerce and Visitor Center to continue serving as a vital resource on the Kenai Peninsula. Samantha Springer Executive Director Kenai Chamber of Commerce and Visitor Center 1.0 Kenai Visitor & Cultural Center Facility Management Services4 July 21.7% August 19.4% June 14.2% October 9.4% September 8.2% November 7.9% May 4.4% December 3.7%April 3.4% February 3.3% 2022 2023 2024 Exhibits Offered 4 4 9 Programs Offered 5 6 8 Facility Events Offered 8 10 14 Total Facility Rentals 14 32 31 Facility Usage 2.0 Kenai Visitor & Cultural Center Facility Management Services 2024 Visitors: 22,732 2023 Visitors 22,451 2022 Visitors 20,091 2024 Exhibits Nine (9) Local Artists Independent Shows 2024 Programs KCCVC Luncheons Community Business Lecture Series Gingerbread Contest Lemonade Day Scholarship Program Job Shadow Day Free Family Movie Night First Friday Artist Series 2024 Events Valentine’s Day Bazaar Mother's Day Bazaar Lemonade Day Workshop Salmon Cooking Class Summer Solstice Run 4th of July Festivities and Parade Kenai Silver Salmon Derby KRM Feed Kenai River Marathon Senate District D Debate Forum Haunted Chamber Annual Fundraiser Christmas Comes to Kenai Happy Holly Jolly Festival 2024 Rentals Scholarship Fair Alaska VA x3 Rasmuson Foundation The LeeShore Center x3 Defenders of Wildlife Liberty Action AK Caring for the Kenai AOGA Community Informational Meetings x3 Peninsula Building & Design Multifamily Mindset Triumvirate Theatre KSRM Weaver Brothers Celebration of Life Birthday Party x2 Independant Meetings x8 5 Position Quantity Hours Yearly or Seasonally KCCVC Manager (Executive Director)1 Salary Yearly Programs & Marketing Coordinator 1 Salary Yearly Finance & Operations Coordinator 1 Salary Yearly Cultural Center Coordinator 1 Part Time/24hrs Yearly Administrative Assistant 1 Part Time/30hrs Yearly Visitor Center Representative 1 Part Time/32hrs Yearly Visitor Center Representative 1 Part Time/32hrs Seasonally Staffing 3.0 Kenai Visitor & Cultural Center Facility Management Services Staffing notes: We have updated job descriptions to better fit the needs of the facility and are fully staffed. Currently working on applying for grants and additional funding to increase the Cultural Center Coordinator position to 40 hours per week. 6 Board of Directors 4.0 Kenai Visitor & Cultural Center Facility Management Services7 Winter Summer Hours of Operations 5.0 Kenai Visitor & Cultural Center Facility Management Services Closed Days Winter Hours (Labor Day to Memorial Day) Monday - Friday 9AM - 5PM Summer Hours (Memorial Day to Labor Day) Monday - Friday 9AM - 6PM Saturday 10AM - 5PM Sunday 12PM - 5PM New Years Day Presidents Day Memorial Day Independence Day (Floating Holiday) Labor Day Veterans Day Thanksgiving Day Day after Thanksgiving Day (Floating Holiday) Day before Christmas Christmas Day Extended Holiday 8 Fee Schedule 6.0 Kenai Visitor & Cultural Center Facility Management Services9 Item Owner Quantity Phones Front Reception Landline COK COK 1 Office #1 Wired Landline COK COK 1 Office #2 Wired Landline COK COK 2 Kenai Municipal Airport Mounted: 24 rack card brochure rack KCCVC KCCVC 1 Mounted: 9 magazine brochure rack KCCVC KCCVC 1 Foyer Office Desk KCCVC KCCVC 1 Metal Brochure Racks KCCVC KCCVC 5 Open sandwich board KCCVC KCCVC 1 Janitor Office Book shelf - 4 shelves KCCVC KCCVC 1 Book shelf - 3 shelf KCCVC KCCVC 1 Vacuum KCCVC KCCVC 1 Janitorial Supplies KCCVC KCCVC 1 Mop and bucket Integrity Janitorial KCCVC 1 Metal Shelf KCCVC KCCVC 1 Women's Restroom Trash bin KCCVC KCCVC 1 Men's Restroom Trash bin KCCVC KCCVC 1 Front Lobby KVCC art posters-framed KCCVC KCCVC 12 Electric open sign KCCVC KCCVC 1 Wood Counter COK COK 1 Customer Reception Desk COK COK 1 Computer Desk KCCVC KCCVC 1 White island table COK COK 1 Office Chairs KCCVC KCCVC 3 Square POS System KCCVC KCCVC 1 Retail island display rack KCCVC KCCVC 2 Postcard display rack KCCVC KCCVC 1 Notecard display rack KCCVC KCCVC 1 Whiteboards KCCVC KCCVC 1 Retail coat hooks KCCVC KCCVC 9 Retail display hooks KCCVC KCCVC 48 Metal hanging baskets KCCVC KCCVC 6 Acrylic long display rack KCCVC KCCVC 6 Retail 5 slot brochure display KCCVC KCCVC 1 Retail 5 slot brochure display KCCVC KCCVC 1 5 shelf bookcase KCCVC KCCVC 2 Acrylic 12 slot magazine rack KCCVC KCCVC 1 Acrylic 32 slot rack card brochure rack KCCVC KCCVC 2 Acrylic 12 slot rack card brochure rack KCCVC KCCVC 1 Acrylic 8 slot rack card magazine rack KCCVC KCCVC 1 Trash bin KCCVC KCCVC 3 4 shelf glass shelves COK COK 2 Boardroom 15 ft. table KCCVC KCCVC 1 Red seated chairs KCCVC KCCVC 15 Stage - 4 Piece Set KCCVC KCCVC 1 INVENTORY & EQUIPMENT 7.0.1 Kenai Visitor & Cultural Center Facility Management Services10 Copy Room Hangers KCCVC KCCVC 283 Office supplies KCCVC KCCVC 1 Xerox Printer Xerox 1 Radio System COK COK 1 Microphones COK COK 2 Paper cutter KCCVC KCCVC 2 File organizer-4 shelf KCCVC KCCVC 1 Copy Room Storage - Downstairs 12' x 12' Shelf COK COK 3 File Cabinet KCCVC KCCVC 4 Office # 1 Bluetooth keyboard KCCVC 1 Computer Chair KCCVC 1 3 shelf bookshelf KCCVC 2 Side table KCCVC 1 2 chairs with wooden arms KCCVC 1 Trash bin KCCVC 1 Small Electric Heater KCCVC 1 Computer Desk KCCVC 1 Computer Monitor KCCVC 3 Bluetooth Mouse KCCVC 1 Office # 2 File cabinet - 4 drawer KCCVC 1 File cabinet - 3 drawer KCCVC 1 Bluetooth Mouse KCCVC 2 Paper shredder KCCVC 1 Wall shelf KCCVC 4 Computer desk KCCVC 3 Computer chair KCCVC 2 Computer monitor KCCVC 4 Bluetooth keyboard KCCVC 2 Small Electric Heater KCCVC 2 Museum Storage 20' x 8' Cabinet - 12 cubbies COK 1 File cabinets COK 3 File Cabinets KCCVC 1 Computer Chair KCCVC 1 Storage # 1 Podium with KCCVC banner KCCVC 1 5' x 6' screen KCCVC 1 10' x 7.5' screen KCCVC 1 Laptop KCCVC 1 Projector and AV Cart KCCVC 1 Da-Lite Sound System COK 1 8' metal rack-5 shelf KCCVC 2 Swivel high chair KCCVC 1 VHS player KCCVC 1 File cabinet KCCVC 1 Wall Shelf COK 1 DVD player KCCVC 1 Overhead projector KCCVC 1 Tall stanchions KCCVC 25 Storage boxes and totes KCCVC 41 7.0.2 Kenai Visitor & Cultural Center Facility Management Services INVENTORY & EQUIPMENT Continued 11 Storage # 2 Banquet tables KCCVC 12 8' table KCCVC 11 6' table KCCVC 1 4' table KCCVC 5 Banquet chairs KCCVC 117 Lounge chairs KCCVC 12 Plotter printer KCCVC 1 Museum Room Floor Displays COK 4 Display cases COK 24 Collection Items COK 413 Bench Seats COK 2 LG TV COK 1 DVD Player and remote Kenaitze 1 DVD-R Movie - Denai'ina Way Kenaitze 1 Chain display COK 1 Storage # 4 Storage totes KCCVC 8 Banner display KCCVC 2 Kitchen Contents in all cabinets KCCVC 1 Coffee urns-Pumpable KCCVC 4 Coffee urns-electric KCCVC 4 Glass coffee pot KCCVC 2 Tea box KCCVC 2 Ceramic coffee supplies organizer KCCVC 1 Warming oven COK 1 Microwave COK 2 Fridge COK 1 Coca Cola Mini fridge KCCVC 1 Garbage Cans KCCVC 8 7' x 3' shelf KCCVC 1 Linens KCCVC 333 Linen Inventory Black Round KCCVC 55 Black Rectangle KCCVC 26 Black Tall Cover KCCVC 4 Cream Round KCCVC 43 Cream Rectangle KCCVC 39 Woven Cream Rectangle KCCVC 8 Woven White Rectangle KCCVC 8 White Round KCCVC 6 White Rectangle KCCVC 6 Bright White Round KCCVC 16 Beige Rectangle KCCVC 4 Quilted Gold Round KCCVC 1 Silver Square KCCVC 40 Green Rectangle KCCVC 2 Red Round KCCVC 15 Red Rectangle KCCVC 40 Orange Round KCCVC 8 Orange Rectangle KCCVC 12 INVENTORY & EQUIPMENT Continued 7.0.3 Kenai Visitor & Cultural Center Facility Management Services12 2025 Chamber Schedule (updated 2/4/2025) 8.0 Kenai Visitor & Cultural Center Facility Management Services January Grand Re-Opening of Cultural Center – January 15 Luncheon – January 15 – Cultural Center Information for 2025 Free Family Movie Night – Inside Out 2 – January 24 Kenai Chronicles Beyond the Exhibit: Early Kenai featuring Dr. Dunstan, Professor of Anthropology at KPC – January 29 February Joint Luncheon – February 5 – Kenai & Soldotna Fire Marshals – Business Fire Basics & Fire Extinguisher Training Last Chance Valentines Day Bazaar – February 8 & 9 Special Joint Luncheon – February 12 – Amazon Lunch & Learn – Free lunch sponsored by Amazon Community Business Lecture Series – February 13 – How to be an Effective and Influential Manager Job Shadow Day – February 19 Private Luncheon – Feb 19 – Job Shadow Day Lunch Kenai Chronicles Beyond the Exhibit: Russian Alaska – Dorothy Gray - February 21 @ 12pm Joint Luncheon (Soldotna) – February 26: DEED Commissioner on Education Reform Free Family Movie Night – IF – February 28 March First Friday Artist Series – March 7 – Jessie Gacal Luncheon – March 5: Bronze Bear Project at the Kenai Airport Update & Information Community Business Lecture Series – March 13 – QuickBooks for Beginners Joint Luncheon – March 19: Bureau of Ocean Energy Management Q&A Kenai Chronicles Beyond the Exhibit: Later Kenai – Dr. Jeff Meyers Jr., Professor of History at KPC - March 20th @12pm Free Family Movie Night – Ghostbusters Frozen Empire – March 28 April Luncheon - April 2 – City of Kenai – Annual State of the City First Friday Artist Series - April 4 – Theresa Ritter Joint Luncheon (Soldotna) - April 9: KPBSD Update Community Business Lecture Series – April 10 – Event Planning Mother’s Day Bazaar – April 12 & 13 Joint Luncheon - April 16: Kenai Peninsula Borough Update with Mayor Micciche City of Kenai Bluff Project Update – April 17, 6-8pm Free Family Movie Night – Despicable Me 4 – April 25 Kenai Chronicles Beyond the Exhibit: Education in the Kenai Peninsula featuring Dr. Cheryl Siemers - Director of KPC– April 30 May First Friday Artist Series – May 2 – Nicole McTrusty Joint Luncheon – May 7 - First National Bank – Yearly update with Tim Redder Community Business Lecture Series – May 8 – Kenai Clean Up Day – May 10 Kenai Chronicles Beyond the Exhibit: Oral Histories and Biographies of Kenai's People featuring Danielle Lopez Stamm – May 15 Luncheon - May 21 – Kenai Chamber Membership Appreciation and Awards Free Family Movie Night – Harold & the Purple Crayon – May 23 June Joint Chamber Luncheon – June 4 – Senator Jesse Bjorkman – Legislative Update Lemonade Day Workshop – June 5 First Friday Artist Series – June 6 – Christina Reed Lemonade Day – June 14 Community Business Lecture Series - June 12 Joint Luncheon – June 18 – Representative Bill Elam – Legislative Update Summer Solstice Fun Run – June 21 Kenai Chronicles Beyond the Exhibit: Fish, Water, and Maritime Legends and History of the Kenai Peninsula – Date TBD 13 2025 Chamber Schedule (updated 2/4/2025) July First Friday Artist Series – July 3 (THURSDAY) – Susan Watkins 4th of July Parade & Festivities (Vendor Event) Community Business Lecture Series – July 10 Kenai Chronicles Beyond the Exhibit: Businesses in Kenai: From Fur Trapping to Canneries and More August First Friday Artist Series – August 1 – Nicole Hall Joint Luncheon – August 6 – Representative Justin Ruffridge – Legislative Update Community Business Lecture Series – August 7 Joint Luncheon – August 20 – Alaska Oil and Gas Association - General Update Kenai Chronicles Beyond the Exhibit: Kenai's Natural History (volcanoes, glaciers, flora, fauna, etc.) - Date TBD September Joint Luncheon – September 3 – KPBSD Update with Superintendent Clayton Holland First Friday Artist Series -September 5 – Laura Dewey Community Business Lecture Series – September 11 – Kenai Silver Salmon Derby: September 9- 14th Joint Luncheon – September 17 – Alaska Airline – Business Travel Solutions and General Update – Speaker Emily Accipiter Stewart Silver Salmon Derby Awards at City Council Sept 17 KRM Speaker & Bib Pickup: September 27 Kenai River Marathon: September 28 Kenai Chronicles Beyond the Exhibit: Food and Subsistence Throughout Kenai's History – Date TBD October Annual Fundraiser: October 4 – Speakeasy Soiree Community Business Lecture Series – October 9 Haunted Chamber – October 18-31 Kenai Chronicles Beyond the Exhibit: Mushing Throughout Kenai's History - From Mail Runs to the Iditarod - Date TBD (in cultural center) November Luncheon – November 5 - Open Gingerbread Contest – November 1-18 drop-off, voting November 19 -December 21 Community Business Lecture Series – November 13 Luncheon – November 19 - Open Christmas Comes to Kenai – November 28 Kenai Chronicles Beyond the Exhibit: Military Presence and History in the Kenai Peninsula - Date TBD December Luncheon – December 3 - Open Holiday Bazaar – December 6 & 7 Community Business Lecture Series – December 11 Luncheon – December 17 - Open Free Family Movie Night – The Grinch – December 19 Kenai Chronicles Beyond the Exhibit: Oil and Gold in Kenai - Date TBD 14 Contact Us 907-283-1991 info@kenaichamber.org www.kenaichamber.org Kenai Visitor & Cultural Center Facility Management Services15 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Dave Swarner, Finance Director DATE: February 4, 2025 SUBJECT: Project Related Federal Funding On January 27th there was a directive from OMB, directing federal agencies to temporarily freeze most federal grants and loans. It was subsequently rescinded. The City has a number of projects and programs that rely on federal funding. We have been in contact with Senator Murkowski’s office and reached out to a number of government agencies to identify how this directive may have impacted our operations. Senator Murkowski’s office confirmed that Congressionally Directed Spending (CDS) projects (Digester Blower at the Wastewater Treatment Plant) were not affected. Our EPA contact stated that the EPA is moving forward with funding related to community grants. The Engineering Associate from the Alaska Department of Environmental Conservation (ADEC) stated that the State Revolving Fund (SRF) Program (Water Treatment Pumphouse project) was not affected by a potential federal funding freeze. The U.S. Army Corps of Engineers (Bluff Stabilization Project) confirmed that the “Awarded effort is full forward – No Freezes.” We have been in communication with our FAA Alaska Region Division Director, FAA Project Manager and the civil engineer with our contractor HDL regarding the numerous airport projects (Master Plan – Phase 1, Ecocart, Boiler replacement, Snow Removal Equipment – Loader and sander/plow truck, and airfield drainage improvements). The FAA Division Director stated that grant reimbursement and project close-outs were being processed, also that they are processing grant requests. We are continuing forward with our grant requests for an ARFF truck, Master Plan – Phase 2, Runway Rehabilitation and Apron crack seal and seal coating projects. The Meals for Wheels program was not aware of any interrupted services but concerned that a freeze, disruption or reduction would adversely impact the program. We are still checking on the Community Wildfire Protection funding at the Federal level and continuing to move forward with bid documents for that program. Moving forward we will continue monitoring for any changes that may impact operations or projects at the City of Kenai, keeping in communication with our partners at the federal agencies. 16 City of Kenai Permanent Funds As of December 31, 2024 2 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS City of Kenai Permanent Funds As of December 31, 2024 Account Inception September 2008 Total Contributions $22,686,732 Withdrawals Does not include custodial or management fees $17,362,274 Current Market Value December 31, 2024 $36,185,702 Annualized Account Return* Inception –December 31, 2024 +7.45% Effective Annual Fee Rate December 31, 2024 0.16% Strategic Asset Allocation Risk Assets 54% Risk Control 29% Alternatives 17% *Performance is gross of management fees, net of internal fund fees, and annualized for periods greater than one year. Staying focused on your goals 3 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS The power of consistency in cumulative earnings Chart shows month-end portfolio market values market values and calendar year returns from inception to December 31, 2024. 15.6%13.1% -0.1% 12.0%13.5% 6.0% -0.1% 7.5%12.0% -4.5% 17.0% 10.8%11.9% -13.6% 12.8%9.3% -$5 $5 $15 $25 $35 $45 2008 2010 2012 2014 2016 2018 2020 2022 2024 Mi l l i o n s Net Earnings: $30.5MContributions: $22.0M Withdrawals: $16.3M Current Market Value: $36.2M 4 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Forward-looking return and risk characteristics * Range denotes the 95% confidence interval. Risk and return data from Windham Portfolio Advisor. Characteristics Current Allocation Expected Range* Annual Return (Gross)7.3%-11.7% to 29.2% Long-Term Return (Gross)6.8%6.5% to 7.1% Net Earnings Long-Term Return Less 2.5% Expected Inflation 4.3%4.0% to 4.6% Avg. Loss in Extreme Conditions (Gross) Within a 1-Year Horizon -25.7% 54% 17% 29% Current Allocation Risk Assets Alternatives Risk Control Assets The City of Kenai Permanent Funds’current asset allocation is expected to meet the goals of the portfolio over the long term.There are no recommended changes at this time. Current allocation is expected to meet goals 5 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Airport Land Sale Permanent FundInflation and goals Preservation of Capital Sustain a 3.8% to 4.2% withdrawal Inflation Protection 23.4 26.1 28.6 31.0 26.1 28.3 29.9 25.0 25.6 26.5 28.4 30.2 31.3 32.2 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 ($ ) M i l l i o n s Market Value Inflation Adjusted Principal Period Inflation Rate Annualized Pre Covid Inception –12/31/2020 1.49% Post Covid 12/31/2020 -12/31/2024 4.20% APCM’s Expectation 10 Year Projection 2.50% 6 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Airport Land Sale Permanent FundWealth Simulations 10-year horizon All simulations utilized a $29.9M starting market value for the ALSPF. No contributions were included. Withdrawals for the ALSPF conformed to City of Kenai Municipal Code 7.30.020(5)(i)using the actual change in CPI-U when available and APCM’s forward-looking CPI expectation of 2.5% for all future dates. Utilizing APCM’s records of historical market values and the spending policy per Kenai Municipal Code 7.30.020(5)(i), APCM’s calculation of the 2025 ALSPF distribution is $1.09M. Distributions 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 ALSPF* ($ millions)1.09 1.11 1.11 1.17 1.21 1.24 1.28 1.32 1.36 1.39 Risk and return data from Windham Portfolio Advisor. Withdrawals shown at the 50th percentile. Market values for each sub fund derived from the breakout provided by City of Kenai. All distributions simulated at the 50th percentile were at the 3.8% rate. $23.6 Expected (50%) $39.9 $66.5 $20 $30 $40 $50 $60 $70 Airport Land Sale Permanent Fund (ALSPF) Mi l l i o n s 50% of outcomes Projected Ending Wealth 95% CI 5% CI Expected Inflation Adjusted Principal 7 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS ALSPF withdrawal projections10-year horizon $1.09 $1.08 $1.04 $1.04 $1.01 $0.98 $0.96 $0.94 $0.93 $0.92 $1.09 $1.11 $1.11 $1.17 $1.21 $1.24 $1.28 $1.32 $1.36 $1.39 $1.09 $1.15 $1.21 $1.47 $1.61 $1.76 $1.90 $2.04 $2.18 $2.32 2025 2026 2027 2028 2029 2030 2031 2032 2033 2035 95th Percentile 75th Percentile 50th Percentile 25th Percentile 5th Percentile The probability that the ALSPF may withdraw at the 4.2% rate begins at 0% and increases to 36% over the simulation horizon. City of Kenai Municipal Code 7.30.020(5)(i) Appropriations from the ALSPF may be made as follows: In any fiscal year, the amount available for appropriation for airport operations and capital needs will be based upon the five (5) year average of the fund’s calendar year end market value. An amount not to exceed three and four-fifths percent (3.8%) of the five (5) year average market value may be distributed if the average market value is less than the fund’s inflation adjusted principal balance. An amount not the exceed four and one-fifth percent (4.2%) of the five (5) year average market value may be distributed if the average market value is greater than the fund’s inflation adjusted principal balance. 8 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS General Fund Land Sale Permanent FundInflation and goals Preservation of Capital Sustain a 4% withdrawal Inflation Protection 2.9 3.4 3.6 3.9 3.2 3.7 3.8 2.8 2.9 3.0 3.2 3.4 3.5 3.6 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 ($ ) M i l l i o n s Market Value Inflation Adjusted Principal Period Inflation Rate Annualized Pre Covid Inception –12/31/2020 1.49% Post Covid 12/31/2020 -12/31/2024 4.20% APCM’s Expectation 10 Year Projection 2.50% 9 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS General Fund Land Sale Permanent Fund Wealth Simulations 10-year horizon All simulations utilized a $3.8M for the GLSPF. No contributions were included. Withdrawals for the GLSPF conformed to City of Kenai Municipal Code 7.30.020(6)using the actual change in CPI-U when available and APCM’s forward-looking CPI expectation of 2.5% for all future dates. Per Kenai Municipal Code 7.30.020(6) distributions will be the lesser of the cumulative earnings at calendar year end for the fund or four percent (4%) of the fund’s fair market value, Utilizing APCM’s records of historical market values and the spending policy APCM’s calculation of the 2025 GLSPF distribution is $154K. In any given year within the simulation, the probability that a distribution can be made is 78%. Distributions 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 GLSPF ($ thousands)154 157 163 169 175 181 187 194 202 209 Risk and return data from Windham Portfolio Advisor. Withdrawals shown at the 50th percentile. Market values for each sub fund derived from the breakout provided by City of Kenai. All distributions simulated at the 50th percentile were at the 3.8% rate. $3.9 Expected (50%) $5.4 $8.3 $3 $4 $5 $6 $7 $8 $9 General Fund Land Sale Permanent Fund (GLSPF) Projected Ending Wealth Expected Inflation Adjusted Principal 50% of outcomes 95% CI 5% CI 10 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Source: Bloomberg US Economic Policy Uncertainty Index 0 50 100 150 200 250 300 350 400 Jan-2019 Jan-2020 Jan-2021 Jan-2022 Jan-2023 Jan-2024 Rising Policy Uncertainty Poses Market Risks 2.9% 2.8% 2.2% 0.4% 0.8% 1.2% 1.7% 1.8% 1.8% 5.2% 4.8% 4.5% 0%1%2%3%4%5%6% 2023 2024 2025 Positive Growth Projected Across Key Economies China Advanced Economies Euro Area U.S. Source: World Economic Outlook Earnings Growth Key to Sustaining Equity Gains Source: JP Morgan Key drivers of the 2025 outlook Elevated Valuations Signal Headwind for U.S. Equity Returns Current and 20-year average next 12 months price-to-earnings ratio City of Kenai –Custody As of December 31, 2024 12 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS City of Kenai –Custody (as of December 31, 2024) Portfolio Review Performance Gross Bench*GVIXX Month To Date 0.27%0.22%0.39% Since Inception (11/6/2024)0.33%0.28%0.70% Annual Yield Comparison Summary Statistics Kenai - Custody Bench*GVIXX Market Value $32,460,960 -- Annual Yield **4.55%4.27%4.36% Average Quality AA+AA AAA Average Maturity (Years)1.64 1.95 - What has happened: As securities mature and cash becomes available for reallocation, we have extended the portfolio's duration in US Treasuries and Callable Agencies The portfolio duration (sensitivity to interest rates) now stands at 1.54 years vs the bench at 1.78 years Going forward: We intend to slowly lengthen duration with maturing securities Annual coupon income over the next 12 months is expected to be $1,208,239 on the current portfolio Recommendation: Work with staff and possible a work session with council to explore options to align liquidity and risk *Bench: Bloomberg 1-3 Gov **YTM for port/bench, 7-day SEC Yield for GVIXX *Bench: Bloomberg 1-3 Yr Gov Performance annualized for periods greater than one year. 2% 3% 4% 5% 6% Bench*Allspring MMF Kenai - Custody *Bench: Bloomberg 1-3 Gov 13 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS City of Kenai –Custody (as of December 31, 2024) Time to Maturity Liquidity %Market Value 0-1 Years 22.0%$7,160,832 1-2 Years 50.4%$16,360,022 2-3 Years 16.8%$5,442,328 3-5 Years 10.8%$3,497,778 Total 100%$32,460,960 IPS Constraints and Characteristics of the Portfolio Investments shall have maturities less than 5 years At least 20% of the portfolio shall be held in maturities of 1-year or less No more than 30% of the portfolio may be invested in securities with maturities of longer than 2-years Authorized instruments shall be limited to the obligations of the US Government, its agencies, repurchase agreements, and government money market funds Portfolio Composition May not add to 100% due to rounding Interest Rate & Market Outlook The Federal Reserve decreased its benchmark rate to 4.25-4.50%. Fed Fund Futures markets currently price in one to two rate cuts by end of 2025. The FOMC terminal target rate decreases to 3.90% in 2025 and in 2026 decreases to 3.66%. Interest rates increased across the curve during the quarter. The 2yr increased by 60 basis points ending December at 4.24%. The 5yr increased 82 basis points ending December at 4.38%. 67% 29% 2%2% 0% 20% 40% 60% 80% 100% 12/31/2024 Treasuries MBS Cash CDs 14 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS We're Growing Together: APCM's Next Chapter Questions? Please reach out to your APCM contact. We are here to support you every step of the way. •Alaska Permanent Capital Management (APCM) is proud to announce its acquisition by Blue Umbrella, a private holding company based in Anchorage, Alaska. •Minority shareholders include prominent Alaskan leaders and investors, such as Jonathan Rubini, Mark Kroloff, Bob Kaufman, Avi Naider, Todd Dow, Jeff Ripley, and current APCM executives Evan Rose, Bill Lierman, and Brandy Niclai. Acquisition Overview •APCM will continue to operate as usual, with no changes to daily operations or the team you trust. •Our key leadership remains in place to guide APCM forward. Blue Umbrella and its partners bring resources, networks, and strategic tools to help APCM grow sustainably while maintaining its mission. What This Means for You •Blue Umbrella values APCM's legacy and reputation. With a track record of fostering growth, they focus on ensuring smooth transitions and aligning with client-first values. Why Blue Umbrella? •Your trust is our priority. This partnership strengthens APCM’s ability to deliver consistent, high-quality services while positioning the firm for future success.Commitment to Clients 15 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS About Blue Umbrella Who We Are: •A private holding company based in Anchorage, Alaska, specializing in acquiring and growing lower-middle-market businesses. •Founded by experienced professionals Jimmy Miner and Dan Perpich, with a proven track record of over $30 million in acquisitions in Alaska. Our Mission: •Focused on preserving the legacy and success of the businesses we acquire. •Providing resources, capital, and strategic tools to foster long-term growth. •Solving ownership succession challenges with structured transition plans. Key Strengths: •Strong emphasis on stability through transitions, ensuring operational continuity and alignment with key personnel. •Extensive networks in Alaska and beyond to support growth and expansion. •A patient, long-term approach to business development and investment. Appendix •Current Asset Allocation •Performance •Market Outlook 17 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Asset Class Strategic Weight Overweight / Underweight Current Allocation Range Risk Control 29%2.0%31.0% Risk Control U.S. FIXED INCOME 26%-0.5%25.5%6 - 36% CASH 3%2.5%5.5%0 - 10% Risk Assets 54%-0.3%53.7% Risk Assets U.S. HIGH YIELD FIXED INCOME 4%-0.1%3.9%0 - 8% U.S. LARGE CAP EQUITY 22%0.3%22.3%12 - 32% U.S. MID CAP EQUITY 10%0.3%10.3%0 - 18% U.S. SMALL CAP EQUITY 5%0.1%5.1%0 - 10% DEVELOPED INTERNATIONAL EQUITY 8%-0.7%7.3%4 - 16% EMERGING MARKET EQUITY 5%-0.2%4.8%0 - 10% Alternatives 17%-1.7%15.3% Alternatives REITS 2%-0.2%1.8%0 - 4% INFRASTRUCTURE 5%-0.4%4.6%0 - 10% ALTERNATIVE BETA 10%-1.1%8.9%0 - 15% U.S. FIXED INCOME CASH U.S. HIGH YIELD FIXED INCOME U.S. LARGE CAP EQUITY U.S. MID CAP EQUITY U.S. SMALL CAP EQUITY DEVELOPED INTERNATIONAL EQUITY EMERGING MARKET EQUITY REITS INFRASTRUCTURE ALTERNATIVE BETA R i s k C o n t r o l Ri s k A s s e t s Al t e r n a t i v e s Tilt Weight Core Weight Aligning near-term tactical adjustments with your long-term strategy 18 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Evaluating returns against strategic goals Portfolio performance is gross of management fees and net of fund fees. 7.5% 5.9%5.7% 2.1% 9.3% 7.6% 6.1%5.9% 2.4% 9.6% -6.0% -3.0% 0.0% 3.0% 6.0% 9.0% 12.0% Since Inception 10 Year 5 Year 3 Year 1 Year Account Performance December 31, 2024 Permanent Fund Strategic Benchmark -40% -30% -20% -10% 0% 10% 20% 30% 40% Rolling 12 Month Total Return Since Inception Upper bound of expected range of returns within one year (29.2%) Lower bound of expected range of returns within one year (-11.7%) Avg. loss in extreme conditions within one year (-25.7%) 19 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS The macro backdrop at year-end 2024 Composite Indicator; Source: Alpine MacroSource: Bloomberg Investor Sentiment Peaks at Year-End 9.8% 18.3% 16.1% 26.3% 5.5% 7.4% 3.8% 8.7% 24.8% 1.2% 4.4% 5.0% 10.3% 14.2% 1.9% 0%5%10%15%20%25%30% Emerging Markets Developed Equity US Small Cap US Large Cap US Fixed Income Strong Performance Amid Positive Fundamentals Average Return Past 10y 2024 Return 2023 Return Recession Risks Stay Low Despite ExpectationsCentral Banks Ease as Inflation Moderates Source: JP Morgan Source: Oxford Economics -1% 0% 1% 2% 3% 4% 5% 6% '19 '20 '21 '22 '23 '24 '25 '26 Historical Policy Rates & Forward Curves FOMC (US)BOE (UK)ECB (Eurozone)BOJ (Japan) 20 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Source: Bloomberg US Economic Policy Uncertainty Index 0 50 100 150 200 250 300 350 400 Jan-2019 Jan-2020 Jan-2021 Jan-2022 Jan-2023 Jan-2024 Rising Policy Uncertainty Poses Market Risks 2.9% 2.8% 2.2% 0.4% 0.8% 1.2% 1.7% 1.8% 1.8% 5.2% 4.8% 4.5% 0%1%2%3%4%5%6% 2023 2024 2025 Positive Growth Projected Across Key Economies China Advanced Economies Euro Area U.S. Source: World Economic Outlook Earnings Growth Key to Sustaining Equity Gains Source: JP Morgan Key drivers of the 2025 outlook Elevated Valuations Signal Headwind for U.S. Equity Returns Current and 20-year average next 12 months price-to-earnings ratio 21 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Neutral stance on risk control assets with strong income cushion APCM is maintaining a strategic weight within Risk Control asset classes, including US bonds, international bonds, and cash. Our base case expects global growth to settle near trend, supported by resilient US economic activity, a strong labor market, and easing inflation toward 2%. This environment should allow central banks to continue lowering policy rates, though the pace may vary regionally. Maintaining duration exposure aligns with this outlook, offering potential for total return as yields decline. In a reflation scenario, where stimulative policies drive persistent inflation and delay Fed rate cuts, we believe bond coupon income (4.9%) can offset price declines from rising rates. Conversely, if supply-side constraints slow economic activity and reignite recession fears, fixed income holdings should provide stability, with longer-duration (6.0) bonds benefiting from potential interest rate declines. This balanced approach seeks to manage portfolio risks while capturing income and defensive qualities across various market environments. Source: Oxford Economics/Macrobond JP Morgan Markets Are Pricing Inflation Implications Roughly Consistent With Target Inflation ILB-implied average US inflation rates Fixed Income Returns in Different Interest Rate Scenarios Potential total return: assumes a parallel shift in the yield curve 21 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS -1.2% 4.4% -2.5% 4.9% 7.5% 3.7% 11.0%10.6%10.0% U.S. Aggregate U.S. HY Municipals 1% Increase No Change 1% Decrease 22 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Neutral risky assets with earnings expected to drive returns and select opportunities in Europe and small caps High-Yield Bonds APCM maintains a neutral weight in high-yield bonds relative to long-term targets. Tight spreads, supported by refinancing at historically low rates in 2020–2021, may widen as issuers face a maturity wall in 2025–2026. However, healthy corporate fundamentals and a supportive economic backdrop should limit default risks, balancing the outlook. US Equities APCM is neutral on equities across regions and market caps, with varied attractiveness. U.S. large-cap stocks remain expensive but are supported by strong fundamentals and growth opportunities, such as AI. Mid-and small-caps may benefit from domestic policy changes, though tariff uncertainty and softening small-cap corporate health pose risks. A small-cap quality fund has been added to balance exposures. International Equities While APCM is neutral overall, European financials present an opportunity,supported by strong earnings growth, profitability, and reasonable valuations. Broader international equities remain attractive relative to U.S. markets but lack clear catalysts to unlock value, such as European debt reform or China stimulus. Source: FactSet, MSCI, Standard & Poor's, as of December 31, 2024. 9.1 Average: 10.0 2010 2012 2014 2016 2018 2020 2022 2024 European Financials Valuations NTM P/E NTM P/E Mean Source: FactSet 22 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS U.S. Small Cap vs. U.S. Large Cap Valuations NTM P/E 0.7 Average: 1.1 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 23 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Selective positioning in alternatives with gold as a hedge and market neutral for stability Infrastructure & REITs APCM maintains a neutral stance on infrastructure and REITs, as these asset classes are fairly priced with stable income profiles. Their high domestic revenue exposure reduces risks from geopolitical events or tariffs. While they provide steady cash flows, interest rate volatility in the current market environment supports a neutral stance. Commodities (Gold) APCM has funded an overweight to gold, leveraging its role as a hedge against uncertainty and fiscal risks. A recent correction has improved its positioning for upside, supported by rising global demand from central banks and investors. Key drivers include concerns about sanctions, high U.S. debt levels, and potential shifts from Chinese investors. Gold offers a hedge to some key risks in 2025. Market Neutral Strategy To enhance portfolio resilience, APCM has added the Calamos Market Neutral Income Fund. This strategy aims to deliver consistent returns, manage equity risk, and diversify fixed-income exposures. By leveraging volatility, it complements broader alternative allocations and provides downside protection in uncertain markets. *Fund Inception is 5/10/2000; performance is as of 9/30/2024 Source: Calamos IAU iShares Gold Trust ETF Exposure to the day-to-day movement of the price of gold bullion. Convenient, cost-effective access to physical gold. Portfolio diversification and inflation protection. -20%-15%-10%-5%0%5%10%15% CY 2022 5-Year 10-Year Since Inception* Calamos Market Neutral Income Mutual Fund Return Comparison Calamos Market Neutral Income Fund MSCI ACWI Net TR USD Index Bloomberg U.S. Aggregate Index 24 |TRUSTED ADVISORS ·MORE EXPERTS ·BETTER ACCESS Disclosures Important Assumptions IMPORTANT:The projections or other information generated by Alaska Permanent Capital Management Company (APCM)regarding the likelihood of various outcomes are hypothetical in nature,do not reflect actual investment results,and are not guarantees of future results.There can be no assurance that the projected or simulated results will be achieved or sustained.The charts and data only present a range of possible outcomes.Actual results will vary over time,and such results may be better or worse than the simulated scenarios.Clients should be aware that the potential for loss (or gain)may be greater than that demonstrated in the simulations.Please note that the analysis does not take into consideration all asset classes,and other asset classes not considered may have characteristics similar or superior to those being analyzed. Important Legal Information These calculations are designed to be informational and educational only,and when used alone,do not constitute investment advice.APCM encourages investors to review their investment strategy periodically as financial circumstances do change. Model results are provided as a rough approximation of future financial performance.Actual results could produce different outcomes (either better or worse)than those illustrated by the model,since it is not possible to anticipate every possible combination of financial market returns.APCM is not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by the results of the model. Other Influences on Rates of Return Investment management fees:Returns are presented gross of management fees and include the reinvestment of all income.Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account.The collection of fees produces a compounding effect on the total rate of return net of management fees.As an example,the effect of investment management fees on the total value of a client’s portfolio assuming (a)quarterly fee assessment, (b)$1,000,000 investment,(c)portfolio return of 8%a year,and (d)1.00%annual investment advisory fee would be $10,416 in the first year,and cumulative effects of $59,816 over five years and $143,430 over ten years.Actual investment advisory fees incurred by clients may vary. Taxes:Unless noted otherwise,model results have not been adjusted for any state or federal taxes or penalties. Inflation:Unless noted otherwise,model results do not adjust any inputs or outcomes for inflation.Inflation is assumed to be constant over the investment horizon. Limitations Inherent in Model Results Limitations include but are not restricted to the following: Model results do not represent actual trading and may not reflect the impact that material economic and market factors might have had on APCM’s decision making if the actual client money were being managed. Extreme market movements may occur more frequently than represented in the model. Some asset classes have relatively limited histories.While future results for all asset classes in the model may materially differ from those assumed in APCM’s calculations, the future results for asset classes with limited histories may diverge to a greater extent than the future results of asset classes with longer track records. Market crises can cause asset classes to perform similarly over time;reducing the accuracy of the projected portfolio volatility and returns.The model is based on the long-term behavior of the asset classes and therefore is less reliable for short-term periods.This means that the model does not reflect the average periods of "bull"and "bear"markets,which can be longer than those modeled. The model represent APCM’s best view of the next 7-10 years,but is unlikely to reflect actual investment returns worldwide over this period. Year End Report 2024 Prepared by Samantha Springer Executive Director Kenai Visitor & Cultural Center Facility Management Services Submitted to City of Kenai 2024 Year in Review Throughout the year,the Kenai Chamber of Commerce and Visitor Center has remained steadfast in its commitment to community engagement,collaboration,and fostering economic growth on the Kenai Peninsula . Successful Execution of Signature Events :Our commitment to the continuity of tim e -honored trad itions was evident in the successful execution of signature events,notably the 4 th of July c e le b ra tion,Ke na i Silve r Salm on Derby,Ke n a i Rive r Marathon,and Christm as Comes to Ke n a i .These events contribute signific antly to the soc ial and community focus we are always striving to ac hie ve . Expansion of Community -Focused Programming :In response to e volving community interests,we expanded our programming to offer new and engaging experiences.The introd uc tion of the Community Business Le c t ure Series provided valuable educational op p ortunitie s on top ic s such as p ub lic sp e aking,gra p hic d e sign,c onflic t resolution,and more .Ad d itionally,our Free Fam ily Movie Nights,he ld from January to May and again in December,created a fun and ac c e ssib le ac tivity for loc al fam ilie s to enjoy. Enhancing the Kenai Silver Salmon Derby :To make the Ke na i Silve r Salm on Derby more accessible,we implemented online tic ke t sale s,re sulting in increased p artic ip ation . Furthering our efforts,we partnered with KRSA to se ll tickets d uring the Women's Classic event,adding an ad d itional 80 +p artic ip ants .These strate gic changes contributed to the derby’s ove rall success and engagement in an unc e rtain year in regards to the silve r salm on run . Strengthening Cultural and Historical Initiatives :A signific ant m ile stone for the year was the ad d ition of a Cultural Center Coordinator p osition .This role has been instrumental in developing a rotating e xhib it schedule within the cultural center,m arking an essential step toward ob taining museum accreditation.The expansion of e xhib its ensures that our community has greater access to historic al and cultural resources while fostering e d uc ation and ap p re c iation . Building and Strengthening Community Partnerships :Throughout 2024,we continued to strengthen re lationship s not only with the City of Ke na i but also with other chambers on the Ke na i Pe ninsula,KPEDD,and the Ke na i Pe ninsula Borough.These p artne rship s have been instrumental in developing new ways to support local businesses,d rive economic development,and enhance tourism opportunities. Looking Ahead :As we move into 2025,the Ke na i Chamber of Commerce and Visitor Center is p oise d for even greater community im p ac t .We are excited to introduce monthly cultural e xhib its accompanied by a new le c ture se rie s,"Ke na i Chronicles:Beyond the Exhib it,"whic h will p rovid e deeper insight into historical top ic s .Our commitment to supporting businesses re m ains strong as we continue to highlight training opportunities that address the ir e volving needs.With a fully scheduled luncheon c a le nd ar and ongoing efforts to expand our community stap le events —inc lud ing the 4 th of July,the Haunted Chamber,and Christm as Comes to Ke na i —we look forward to another year of growth and innovation. In conclusion,I extend my sincere gratitude to our members,partners,and the community at large for your support throughout 2024.Together,we have laid a strong foundation for the Ke na i Chamber of Commerce and Visitor Center to continue se rving as a vital resource on the Ke na i Pe ninsula . Samantha Springer Executive Director Kenai Chamber of Commerce and Visitor Center 2024 Visitors: 22,732 2023 Visitors 22,451 2022 Visitors 20,091 2022 2023 2024 Exhibits Offered 4 4 9 Programs Offered 5 6 8 Facility Events Offered 8 10 14 Total Facility Rentals 14 32 31 Facility Usage 2024 Exhibits Nine (9) Local Artists Independent Shows 2024 Programs •(13) KCCVC Luncheons •(7) Community Business Lecture Series •Gingerbread Contest •Lemonade Day •Scholarship Program •Job Shadow Day •(5) Free Family Movie Night •(9) First Friday Artist Series 2024 Events Valentine’s Day Bazaar Mother's Day Bazaar Lemonade Day Workshop Salmon Cooking Class Summer Solstice Run 4th of July Festivities and Parade Kenai Silver Salmon Derby KRM Feed Kenai River Marathon Senate District D Debate Forum Haunted Chamber Annual Fundraiser Christmas Comes to Kenai Happy Holly Jolly Festival 2024 Rentals Scholarship Fair Alaska VA x3 Rasmuson Foundation The LeeShore Center x3 Defenders of Wildlife Liberty Action AK Caring for the Kenai AOGA Community Informational Meetings x3 Peninsula Building & Design Multifamily Mindset Triumvirate Theatre KSRM Weaver Brothers Celebration of Life Birthday Party x2 Independant Meetings x8 Position Quantity Hours Yearly or Seasonally KCCVC Manager (Executive Director)1 Salary Yearly Programs & Marketing Coordinator 1 Salary Yearly Finance & Operations Coordinator 1 Salary Yearly Cultural Center Coordinator 1 Part Time/24hrs Yearly Administrative Assistant 1 Part Time/30hrs Yearly Visitor Center Representative 1 Part Time/32hrs Yearly Visitor Center Representative 1 Part Time/32hrs Seasonally Staffing Staffing notes: •We have updated job descriptions to better fit the needs of the facility and are fully staffed. •Currently working on applying for grants and additional funding to increase the Cultural Center Coordinator position to 40 hours per week. Winter Summer Hours of Operations Closed Days Winter Hours (Labor Day to Memorial Day) Monday -Friday 9AM -5PM Summer Hours (Memorial Day to Labor Day) Monday -Friday 9AM -6PM Saturday 10AM -5PM Sunday 12PM -5PM New Years Day Presidents Day Memorial Day Independence Day (Floating Holiday) Labor Day Veterans Day Thanksgiving Day Day after Thanksgiving Day (Floating Holiday) Day before Christmas Christmas Day Extended Holiday 2025 Chamber Schedule (updated 2/4/2025) January •Grand Re-Opening of Cultural Center –January 15 •Luncheon –January 15 –Cultural Center Information for 2025 •Free Family Movie Night –Inside Out 2 –January 24 •Kenai Chronicles Beyond the Exhibit: Early Kenai featuring Dr. Dunstan, Professor of Anthropology at KPC –January 29 February •Joint Luncheon –February 5 –Kenai & Soldotna Fire Marshals –Business Fire Basics & Fire Extinguisher Training •Last Chance Valentines Day Bazaar –February 8 & 9 •Special Joint Luncheon –February 12 –Amazon Lunch & Learn –Free lunch sponsored by Amazon •Community Business Lecture Series –February 13 –How to be an Effective and Influential Manager •Job Shadow Day –February 19 •Private Luncheon –Feb 19 –Job Shadow Day Lunch •Kenai Chronicles Beyond the Exhibit: Russian Alaska – Dorothy Gray -February 21 @ 12pm •Joint Luncheon (Soldotna) –February 26: DEED Commissioner on Education Reform •Free Family Movie Night –IF –February 28 March •First Friday Artist Series –March 7 –Jessie Gacal •Luncheon –March 5: Bronze Bear Project at the Kenai Airport Update & Information •Community Business Lecture Series –March 13 – QuickBooks for Beginners •Joint Luncheon –March 19: Bureau of Ocean Energy Management Q&A •Kenai Chronicles Beyond the Exhibit: Later Kenai –Dr. Jeff Meyers Jr., Professor of History at KPC -March 20th @12pm •Free Family Movie Night –Ghostbusters Frozen Empire – March 28 April •Luncheon -April 2 –City of Kenai –Annual State of the City •First Friday Artist Series -April 4 –Theresa Ritter •Joint Luncheon (Soldotna) -April 9: KPBSD Update •Community Business Lecture Series –April 10 –Event Planning •Mother’s Day Bazaar –April 12 & 13 •Joint Luncheon -April 16: Kenai Peninsula Borough Update with Mayor Micciche •City of Kenai Bluff Project Update –April 17, 6-8pm •Free Family Movie Night –Despicable Me 4 –April 25 •Kenai Chronicles Beyond the Exhibit: Education in the Kenai Peninsula featuring Dr. Cheryl Siemers -Director of KPC–April 30 May •First Friday Artist Series –May 2 –Nicole McTrusty •Joint Luncheon –May 7 -First National Bank –Yearly update with Tim Redder •Community Business Lecture Series –May 8 – •Kenai Clean Up Day –May 10 •Kenai Chronicles Beyond the Exhibit: Oral Histories and Biographies of Kenai's People featuring Danielle Lopez Stamm –May 15 •Luncheon -May 21 –Kenai Chamber Membership Appreciation and Awards •Free Family Movie Night –Harold & the Purple Crayon – May 23 June •Joint Chamber Luncheon –June 4 –Senator Jesse Bjorkman –Legislative Update •Lemonade Day Workshop –June 5 •First Friday Artist Series –June 6 –Christina Reed •Lemonade Day –June 14 •Community Business Lecture Series -June 12 •Joint Luncheon –June 18 –Representative Bill Elam – Legislative Update •Summer Solstice Fun Run –June 21 •Kenai Chronicles Beyond the Exhibit: Fish, Water, and Maritime Legends and History of the Kenai Peninsula – Date TBD July •First Friday Artist Series –July 3 (THURSDAY) –Susan Watkins •4th of July Parade & Festivities (Vendor Event) •Community Business Lecture Series –July 10 •Kenai Chronicles Beyond the Exhibit: Businesses in Kenai: From Fur Trapping to Canneries and More August •First Friday Artist Series –August 1 –Nicole Hall •Joint Luncheon –August 6 –Representative Justin Ruffridge –Legislative Update •Community Business Lecture Series –August 7 •Joint Luncheon –August 20 –Alaska Oil and Gas Association -General Update •Kenai Chronicles Beyond the Exhibit: Kenai's Natural History (volcanoes, glaciers, flora, fauna, etc.) -Date TBD September •Joint Luncheon –September 3 –KPBSD Update with Superintendent Clayton Holland •First Friday Artist Series -September 5 –Laura Dewey •Community Business Lecture Series –September 11 – •Kenai Silver Salmon Derby: September 9-14th •Joint Luncheon –September 17 –Alaska Airline – Business Travel Solutions and General Update –Speaker Emily Accipiter Stewart •Silver Salmon Derby Awards at City Council Sept 17 •KRM Speaker & Bib Pickup: September 27 •Kenai River Marathon: September 28 •Kenai Chronicles Beyond the Exhibit: Food and Subsistence Throughout Kenai's History –Date TBD October •Annual Fundraiser: October 4 –Speakeasy Soiree •Community Business Lecture Series –October 9 •Haunted Chamber –October 18-31 •Kenai Chronicles Beyond the Exhibit: Mushing Throughout Kenai's History -From Mail Runs to the Iditarod -Date TBD (in cultural center) November •Luncheon –November 5 -Open •Gingerbread Contest –November 1-18 drop-off, voting November 19 -December 21 •Community Business Lecture Series –November 13 •Luncheon –November 19 -Open •Christmas Comes to Kenai –November 28 •Kenai Chronicles Beyond the Exhibit: Military Presence and History in the Kenai Peninsula -Date TBD December •Luncheon –December 3 -Open •Holiday Bazaar –December 6 & 7 •Community Business Lecture Series –December 11 •Luncheon –December 17 -Open •Free Family Movie Night –The Grinch –December 19 •Kenai Chronicles Beyond the Exhibit: Oil and Gold in Kenai -Date TBD Contact Us 907-283-1991 info@kenaichamber.org www.kenaichamber.org Kenai City Council - Regular Meeting Page 1 of 3 February 05, 2025 Kenai City Council - Regular Meeting February 05, 2025 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. Annual Review of City of Kenai Permanent Funds, 2024 Financial Performance, Financial Projections and Recommended 2025 Asset Allocations for the City’s Permanent Funds, Brandy Niclai and Bill Lierman, from Alaska Permanent Capital Management. C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) 1. Kenai Chamber of Commerce and Visitor Center Annual Report, Samantha Springer, Executive Director. D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. ENACTED WITHOUT OBJECTION. Ordinance No. 3448-2025 - Amending Kenai Municipal Code Section 14.22.010 - Land Use Table, to Allow Airports as a Principal Permitted Use in the Airport Light Industrial Zone. (Administration) 2. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-08 - Designating the Investment and Allocation Plan for the City’s Permanent Funds and Establishing Appropriate Benchmarks to Measure Performance for Calendar Year 2025. (Administration) 3. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-09 - Authorizing a Contract Award for the 2025 Parks and Recreation Master Plan. (Administration) 4. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-10 - Authorizing the Use of the Fleet Replacement Fund for the Purchase of One Ford F-150 Responder Vehicle Utilizing the State of Alaska Equipment Fleet Contract and Municipality of Anchorage Contract. (Administration) Kenai City Council - Regular Meeting Page 2 of 3 February 05, 2025 5. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-11 - Authorizing the Use of the Water and Sewer Fund for the Purchase of Two Ford Trucks Utilizing the State of Alaska Equipment Fleet Contract. (Administration) 6. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-12 - Authorizing the Use of the Fleet Replacement Fund for the Purchase of Two Ford Transit Vans Utilizing the State of Alaska Equipment Fleet Contract. (Administration) 7. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-13 - Redirecting Public Safety Capital Project Funds to Complete the Emergency Services Facility Assessment. (Administration) 8. ADOPTED WITHOUT OBJECTION. Resolution No. 2025-14 - Authorizing a Contract for the 2025 Emergency Services Facility Programming and Assessment. (Administration) F. MINUTES 1. *Regular Meeting of January 15, 2025. (City Clerk) G. UNFINISHED BUSINESS H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Non-Objection to Renewal of a Package Store Liquor License for Carr- Gottstein Foods Co. DBA Oaken Keg #1808 - License No. 3218. (City Clerk) 3. *Action/Approval - Non-Objection to Renewal of a Package Store Liquor License for Three Bears Alaska, Inc. DBA Three Bears - License No. 4118. (City Clerk) 4. *Ordinance No. 3449-2025 - Increasing Estimated Revenues and Appropriations in the General Fund – Police Department and Accepting Grants from the United States Department of Justice and Alaska Municipal League Joint Insurance Association for the Purchase of Ballistic Vests. (Administration) 5. *Ordinance No. 3450-2025 - Amending Sections of Kenai Municipal Code Title 23 - Personnel Regulations, Sections 23.05.070 - Definitions, 23.25.080 - Promotion, 23.30.030 - Probationary Period for Employees in the Classified Service, and 23.55.020 - Compensation Structure by Grade for Employees in the Classified Service, to Ensure a Consistent Approach to Pay Adjustments for City Employees. (Administration) 6. APPROVED WITHOUT OBJECTION. Action/Approval - Airport Commission 2025 Work Plan. (City Clerk) 7. SCHEDULED FOR 4/16/2025 AT 5:00 P.M. Discussion - Scheduling a Joint Work Session with the Planning & Zoning Commission for the Presentation of the Draft SS4A Comprehensive Safety Action Plan. (Administration) 8. Discussion - City of Kenai Arbitration Panel - Membership Terms. (City Clerk) I. COMMISSION REPORTS 1. Council on Aging Commission 2. Airport Commission • Airport Commission 2024 Annual Report Kenai City Council - Regular Meeting Page 3 of 3 February 05, 2025 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Commission 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/Chz3Iw5ATqSCnihFBt0XAg