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HomeMy WebLinkAbout2008-12-03 Council PacketaESTYn~ox~ siGx-tN sxEEr rJ TE5TIMONY SIGN-IN SHEET ~, t.~`~~t C~tei~i~ j't =~ v 2J--' TESTIM®NY SIGN-IN SKEET 0 d a ti O C7 Z_ W W J U Z O U w a ~ Z ~ ~ W W O ~' Z = (n c/~ O O J J O W J ~- O W f- ~ O J J a ~ ~ 0 O _~ ~ ~ O JI 0 ~ ` ~ ~ ~ O W W J W ~ W' C~ p t ,. ' O :Z. S, U1 (~ O J J O J ~- O I- ~' O J Q ~ ~ O Q''. O ~ ~ ~ ~] d ln ~ J Wi~ '~ Z Cn Or W W ~ J W ~ W ~ Z. = v~ O J J O J >- O F- ~ O J Q ~ O O o O ~ ~ ~ m d (Q ~ J W `, ~>t: ~ W C~ O W WJW ~ (nJJI-J~ ~ u~J}.~QOo OOOO~OJ ~~mdCn~ W O D K`, ~ Cn }O W W ~ J W ~ W ^ Z 0 J 0 J 0 1- 0 -~ ~ O ~,,.. p J 0 mss' a ~ ' ~ O w r W w ~ w ~ o O O O O O ~ O J -~ ~ ~ m w cn ~ w >I. ~ ~ ~ ~ u: O C9 z w W J U Z O U w z } ~ pwW~wo ~ J ~ ~ Q 0 ~ 00000~0~ ~ : (n O w w ~ ~ w ~ w p ~ z O cn O J .~ O J ~- O F- rL O J Q ~ O O ~ o J ~ ~ ~ m O.. CA ~ W v~ ' O w w ~ ~ w ~ w ~ Z p J 0 J 0 H 0 J ~ 0 ~ ~ AGENDA KENAI CYTY COUNCIL -REGULAR MEETING DECEMBER 3, 2008 7:00 P.M. KENAI CYTY COUNCIL CHAMBERS http: / /wcuw.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1 John Bost, Mikunda Cottrell Ss Company -Presentation of the FY2008 Comprehensive Annual Financial Report (20 minutes) ................. . 2. Jim McConnell, Ken Duffy -- Frontier Community Services Update...... . 3. Robert Ruffner, Executive Director, Kenai Watershed Forum -- Convening of the Kenai Peninsula Fish Habitat Partnership .............. 1 4. Emily DeForest, Sal Mattero/Friends of the Library -- Presentation/ Library Expansion Project ...................................... . ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCYLS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) I. Ordinance No. 2360-2008 -- Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund for Police Drug Abuse Resistance Education (DARE) Expenditures .:......................... 3 2. Ordinance No. 2361-2008 -- Amending the Official Kenai Zoning Map by Rezoning Kenai Peninsula Borough Parcel Number 04701009, the Kenai National Guard Armory (TSNRIIW SEC 6 Seward Meridian KN Commencing at the N1/4 Corner Run S 0 Deg 13 Min E 77.88 Ft Th S 86 Deg OS Min E 35.09 Ft Along the Southerly ROW of the North Kenai Rd to the POB Th S 0 Deg 13 Min E 683.85 Ft Th N 89 Deg 47 Min E 330 Ft Th NO 0 Deg 1) From Conservation (C) to General Commercial (CG) .......................... 5 3. Ordinance No. 2362-2008 -- Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa Joe's Subdivision, Chumley Replat From Rural Residential 1 (RR1) to Limited Commercial (LC) ........................ 9 4. Resolution No. 2008-68 -Approving the Financial Disclosure Statement Form for City of Kenai Municipal Officers and Candidates Pursuant to KMC 1.85 ........................... .............................. 40 5. Resolution No. 2008-69 - Approving a Contract to Blazy Construction for the Project Entitled Kenai Visitors Center Heating System Upgrade - 2009 for the Total Amount of $$462,551.00 ..................................... 52 ITEM F: MINUTES 1. *Regular Meeting of November 19, 2008 ....................................................... 54 2. *Work Session Notes from November 19, 2008 ......................... 68 ITEM G: UNFINISHED BUSINESS ITEM H: NEW BUSYNESS 1. Bills to be Ratified ......................................................................................... 70 2. Approval of Purchase Orders Exceeding $15,000 ............................................. 71 YTEM I: COMMISSYON/COMMITTEE REPORTS Airport Commission ...........................................72 ITEM J: REPORT OF THE MAYOR YTEM K: ADMINISTRATION REPORTS 1. City Manager ................................................................................................ 2. City Attorney ................................................................................................ 74 3. City Clerk ..................................................................................................... ITEM L: DISCUSS%ON 1. Citizens (five minutes) 2. Council ITEM M: PENDYNG LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) -- None Scheduled ITEM N: DECEMBER 3, 2008 REGULAR COUNCIL MEETING REQUESTED ADDITIONS/CHANGES TO THE PACKET ITEM REQUESTED BY: ADD TO: E-3, Ordinance No. 2362 -- Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa Joe's Subdivision, Chumley Replat from Rural Residential 1 (RRi) to Limited Commercial (LC): s 12/ 1 /08 F. Braun note requesting retraction of his 11 / 25 / 08 letter. • 11/27/08 R. Espy email opposing the rezoning of the property. • 11/30/08 D. Wright email opposing the rezoning of the property. • 12/ 1/08 K. Carson letter supporting the rezone. • 12/2/08 P. Falkenberg email requesting postponement of action. • 12/3/08 R. Molloy email forwarding Ordinance No. 2145-2006 and its Attachments A and B. • 12/3/08 J. Twait (Chair, Kenai Planning 8v Zoning Commission) letter of support of the rezone. CONSENT AGENDA No changes. FRONTIERCOMMUNITY SERVICES -PROGRAM SERVICES FACILIY PRO:TECTUPDATE TO CITY OF KENAI ®RGANIZATIOIN ~,~- ,~ - ~ FCS is'a non-profit organization; providing quality„individualized; support services for people of all ages, who great risk of or experience a disabling condition. Since its conception in 1981, FCS has grown from a small vocational program to a full spectrum service agency: The FCS. Board. of Directors is a governance board consisting of professionals, consumers and consumer family members_ The mission of FCS is to provide quality, individualized home and community based services for people of all ages who are aYrsk of, or experiencing a disabling condition, in order to minimize the need for institutional care: FCS will continue to develop as a sound .quality human service organization by; providing services that are needed to support individuals and families to live safely in the least restrictive setting of their choice; increasing :affordable, accessible, residential, community housing. options; expanding service options in order to support individuals through. all stages of life and promoting community awareness and understanding FCS has 3 administrative departments; Finance, Human Resources and Administration and Development;. The agency also has 2 main program departments; Senior. and Disability Services and Family Services. Senior and Disabilities Services Department: Senior and Disabilities Services (SDS) serves individuals who experience developmental disabilities, children with complex medical conditions, individuals who are considered older Alaskans, and adults with physical disabilities. This program provides an array of services designed to improve quality of life; cover all aspects of life,, reach all .ages, provide safety, increase independence and minimize institutionalization...SDS provides care coordination, residential. habilitation services, supported employment services, day habilitation services and personal care .assistance: The SDS department oversees 15 assisted living homes in the Kenai/Soldotna/Valdez areas: SDS also oversees FCS's Consumer Directed Personal Care Assistance.(PCA) program as well as the Agency Based Personal Care Assistance (ABPCA) program. The SDS department provides behavioral health programming in the form of independent case management and supported employment. These services aie provided in the Centra] Kenai Peninsula, but when requested also serve Seward to Homer and points in between. SDS .currently provides services to approximately 154 individuals. Family Services Department: The Family Services Department is a diverse department and oversees the Early Intervention/ Infant Learning (EI/ILP) Program and the Fetal Alcohol Spectrum Disorder (FASD) program and the Short Term Assistance and Referral (STAR) program: The EI/ILP program provides services to families with infants and toddlers from birth to three years of age, who experience developmental disabilities/delays, or who are at risk 1 Prepared by F. James McConnell The Paladin Group FRONTICR COMMUNI"fY SI~RVICLS-PROGRAM SI~RVICES FACILIY PROJECT UPDATE TO CITY OF KENAI for such delays. Services include screening of~ infants and toddlers ,for early detection of developmental delays, educational" activities ,for families and professionals and contractual services/teaming with- physical, occupational and speech therapists. >Jarly Intervention provides ongoing services to an average of 40 to 60 children, typically has a waitlist of 10 to 15 children and screens an average of 125 to 150 childrenper year. The FASD program provides diagnostic clinics, education, resource referral, and follow- up supports to .individuals of all ages hat are neuro-developmentally affected due to prenatal alcohol exposure. Prevention education is targeted. at" individuals of pre and current reproductive ages. The FASD program diagnoses an average of 55 individuals annually and provides on going follow-up to affected individuals as needed or requested. Countless others are served though prevention and intervention educational outreach done throughout the year in various locations on the Kenai Peninsula. FCS is the administrator of the STAR and Mini-Grants program for the Kenai Peninsula. The FCS STAR program assists people with developmental disabilities and their families on a short-term basis to ameliorate crises before they occur, distribute awards to individuals for health. and safety needs not-covered by grants or other funds, assists recipients in attaining and maintaining healthy and. productive lifestyles and assists. recipients and families,to ensure. appropriate linkage to"services, The area covered by this program includes the entire Kenai. Peninsula, Valdez and Cordova.. This program provides short term relief services and /or referral to approximately 200 individuals annually. Area Population: The target population that FCS provides services for are those individuals of all ages who .experience disabilities. According to the last area census (2D00) the population for the Kenai Peninsula Borough. was roughly 49;691. The same 2000 census shows that approximately 5685 individuals betweem the ages of 5-64 experience a disability that impacts their life in someway. The peninsula also has a growing senior (age 65 and older) population. The 2000 census. shows the senior population fora our area at 3649. The census numbers show that, there is a substantial. and growing population of individuals than will need.to use agencies such as FCS to provide services in order for -them to continue to live in the home and community of their choice. DESCRIPTION OF PROJECT The provision of quality services is impossible without administrative and program staff supporting the. care provided to our consumers by the direct care staff.. Under our current physical situation, furictional .accommodations for FCS's program and administrative staff are lacking. FCS leases. office space at a local strip mall called the Red Diamond Center. Currently FCS leases 1 entire building and 4 additional suites in 2 separate buildings of the Red Diamond Center, totaling 15,000 square feet. Presently FCS's day habilitation program building is located off site of the Red Diamond Center. With this 2 Prepared by F. James McConnell The Paladin Group FRONTIER COMMUNITY SERVICES -PROGRAM SERVICES FACILIY PROJECT UPDATE TO CITY OF KI'sNA1 arrangement our program and administrative offices are located in 6 locations in 4 separate buildings. Above and beyond the inconvenieiace and operating inefficiencies of having offices spread over fqur buildings, the space itself cannob be .configured appropriatelyto functionally: meet our needs. To streamline our operations and have the capacity to add additional. programs, our goal is the. construction of a program/administration building, totaling 53,748 square feet which will be designed to efficiently meet our specific needs: The Red Diamond facility was built in the early 19$0's as a commercial retail complex, and while affordable; it has: become a cumbersome complex that cannot adequately house all of FCS?s current and proposed programs. Additionally we are spending funds on the facility to "make it work". It would b'e more effective to move to a new facility that can handle our programs and their.administration, While the footprint of the new facility is somewhat smaller than our current space it will not have the myriad of uuusable hallways ...that we are presently encumbered with. Additionally, the current spaces do not afford the . level of consumer confidentiality required under federal regulations. Several programs use FCS facilities to run various clinics, educational programs, vocational and social activities for our consumers and .the community on a daily basis. ` As these programs grow we find ourselves struggling to find adequate space-to fill their program needs:. Unfortunately at times we have found ouurselves having to scale back some program activities due to the inadequacy of space. We started our building project in early 2006 and to date we have completed the following steps; 1. Secured a commitment for 12 acres of property from the City of Kenai to build a new complex. The acquisition involves a combination cash payment and City donation and is to be consummated subject to funding approval of the project. The: property will be subdivided into three parcels once acquired to allow for future'expansion projects. 2. Completed an Environmental Assessment of the property with the assistance of .the USDA Rural Development Offices in Kenai and Palmer. No findings of significant impact were found and the site is approved for construction. 3. Secured a $125,000 development grant from. the Alaska Mental Health Trust Authority.. 4. Completed the architectural design and civil engineering of the project under USDA development criteria. Final plans were completed at the-.end of January 2008. 5: .Have completed an independent third pang cost estimate. 6. Completed the submission for long term funding .through .USDA Rural Development and Wells Fargo Bank for approximately $2;7 million, $2,200;000 and $500,000 respectively. , A funding commitment from USDA was received 3 by F: James McConnell The Paladin Group ` P'F20NTIER CnMMUNITY SERVICES-PROGRAM SERVICES FACILIY PROJECT UPDATE TOCITYOF,KI:NAI September 2008' and a conditional commitment from Wells Fargo was provided in August 2008. 7. Have submitted a a500~000 grant request"to the Murdock Foundation. We are in the process of responding o questions. and anticipate a decision in early March 2009. 8. Have submitted a $:1,000,000 grant request to the Rasmuson Foundation. That package is complete and they are waiting for the. project to secure :more "gap" funds before they proyide'their commitment, anticipated in June 2009. 9. Have organized a local fund raising event for early 2009, to help offset additional equipment needs and contingencies once construction starts. PROJECT COST ESTIMATE The Itemized Project Budget. reflects xotal estimated costs at"$"5,379,760. This' includes allocation for land, design & development, facility construction; construction financing, project coordination;. furniture, fixtures; equipmenYand a construction contingency of 5%. The costs are based on 95%-drawings by Kluge & Associates, a third party estimate by Estimations, the architectural contract, a cost quote on the equipment and a financing cost estimate provided by James McConnell. A implfied breakdown of the costs i as follows: Auri12008 October2008 Hard Costs (per Estimations) $4;237,933 $4,411,648 Estimating Contingency 127;138 234,431 Escalation for Inflation 86,445 404,350. Architectural & Construction Administration 360025 360,025 FF&E 141,855 276,975 Construction Financing 200;000 200,000 Project Coordination 133;545 160,000 Land and Surveying. 92,8.18 98,818 TOTAL PROJECTED COSTS. $5,379,759. $6,146,247 Funding for the project will be provided by a combination of term. loans, cash injections and approved grants.. The Current Contributors/Funders include the following entities: Land Commitment from the Cityof Kenai $94;760 (Includes $28;290 to be paidby PCS) 4 Prepared by F. James McConnell The Paladin Group FRONTIER COMMUNI7 Y SERVICES -PROGRAM SERVICES FACILIY .PROJECT UPDATE TO CITY OF KENAI Alaska Mental. Health Trust Grant for Design $125;000 Wells Fargo Term Loan Commitment $500,000 USDA Term Loan Application $ 2,200,000 Tf3TAL FUNDS SFCiTREI3 ®R PENDING FINAL C®MMI'I'MENT $2,919,760 The securedand/or committed~fundsrepresent 54°/v of the }projected projectcostson the February .2008 estimate and 47°/a of the updated October 2008 estimate. The AMHTA funds were originally provided as a loan though now has been converted to a grant. Wells Fargo has. provided a Letter oflnterest with temrs for both a $500,000 term loan, under the USDA Guaranty Participation Program, and a constructionloan.. Conversion from a Letter of Interest to a formal commitment will. take place once a commercial appraisal is provided. Since .the. valuation must be no older than 6 months from the. projected date of funding it was recommended we use the funding criteria provided in the. 'interest letter fore our .package submissions and complete the valuation when the remaining commitments are in hand. USDA's local offices have worked. closely with us on a term loan package of $2.2 million for 40 years and final approval was received in September. We would also note that while it appears that FCS is only putting in $28,290 towards the capital costs the fact of it is that FCS will be using on hand cash for equipment not related to FF&E, moving. costs, and potential shortfalls on budget items: We anticipate that. FCS's cash injection during the course of the project wilt beat least $100,000. FCS is also preparing a spring fund raising event to bolster is cash contribution. Target funds from this are $50,000 - $100;000: The remaining development funds are being requested from the followinE sources: Alaska State Legislative Grant - Co-sponsored by the City of Kenai $3,226;487 Contingent Grant Applications in Process Include: Rasmuson Foundation $1,000,000 Murdock Foundation $500 000 TOTAL PENDING COMMITMENTS $1,500,000 The legislative grant request of $3,226,487 represents the remaining funds needed to complete the project, based on the most recent third party cost estimates.. FCS has submitted grant packages to the Rasmuson Foundation ($1;000,000), and Murdock Foundations ($500;000) though both of those agencies: feel the project needs more funding before they step in with:" a commitment. To secure. their eornmitment the. minimum legislative grant would need to be, for the difference between the $3.2 million and the FGS requests of $1.5 million, i.e. $1;726;487: 5 9 by F. James McConnell The Paladin Group FRQN'I'IER CQMMUNITY SERVICES-PROGRAM SFRVICES FACiLIY PROJECT UPDATE TO CITY OF KENAI We discussedthe legislative request with RepresentativeChehnault and Senator Wagoner and they suggested we request what we feel is needed to complete the project, the full $3,250,000. Should-a legislative shortfall develop we can address that shortfall with the Rasmuson and Murdock grants. To do otherwise could force the project into a third year. of searching for grant funds. Based on that recommendation FCS is requesting the City of Kenai co-sponsor a request of $3,250;000 for this project. PROJECT MANGEMENT FGS understands that the success. of any endeavor is not dependant upon a single individual` but rather aaeam of individuals committed to the achievement of a goal The. following are key team members of the Future Frontier project. FCS's Director of Administration and Development, Ann Shimberg is the point person for this project. Ann acts as the liaison between FCS and other parties involved with the Future. Frontier project. Ann makes sure all project deadlines are met and that all parties receive. the information they need to complete their tasks in a timely manner. She works in conjunction with FCS's Executive Director, Ken Duff and Chief Finance tJfficer, Will Raemaeker inroverseeing the development of this project: Ken Duff has over 28 years administrative experience and 22 years of budget development/management of federal, state and private funding. With his. diverse qualifications, he is well suited'to oversee this project for FCS... Will Raemaeker has over 16 years experience in finance administration. He has been FCS's chief finance officer since 2003 and has been instrumental in the creation of our finance department. Another project team member is the Paladin Group. FCS contracted with the Paladin Group to provide services in the areas. of market study, feasibility analysis and long term financing and project development. The owner/operator of the Paladin Group, Jim. McConnell, has worked in the area of financial services for over 30 years, 20 years' with the National Bank of Alaska and 12 years as an independent contractor providing project coordination to tribal entities and rnid size companies. The projects that he has. been involved with have ranged from $500;000 to $15,000,000, His services on this project have included working with the City for transfer: of the property, submission of the USDA and Wells Fargo term, and construction, loan packages and coordination with USDA and the architect on project development criteria, environmental compliance and. assistance in budget presentation for each grant/loan application. The remainder of the development team at this point is the architectural firm of Kluge and Associates: Bill" Kluge developed the. conceptual drawings. and his company. is contracted to carry the project through final design and construction administration. His work has been reviewed by USDA design engineer, Tim Krug; and all drawings have been approved per USDA standards. -Bill is working closely with USDA on the design 6 Prepared by F. James McConnell The Paladin Group FRONTIER COMMUNITY SERVICES -PROGRAM SERVICES FACILIY PROJECT' UPDATE TO CI'I~Y OF ICENAI criteria and will continue to do so through construction. Once sufficient funds. are committed to complete the project, .within current estimations, Kluge's office will advertise for a contractor and secure a fixed price: Selection of the .contractor will be based on recommendations by the architect, acceptance by t3SDA and Wells Fargo and final approval by FCS's Board. TIMELINE.. It is our goal to be .able to break ground in the summer of 2009 and move into the new facilities inthe early part of 20] 1. Construction time is estimated at 14 months. Frontier Community Services Ti-neline Conceptual Drawings Dec OS Completed Site Control May 06 Completed Environmental Assessment May 07 Completed Architectural Design & Cost Estimate Feb 08 Completed Grants/Loan/Donation/Cash Injection FCS Cash Injection Dec OS Secured Alaska Mental Health Trust Jan 07 Secured Wells Fargo Loan Approval Aug 08' Secured USDA Loan Approval Sept 08 Secured Murdock Foundation Apr 09 Pending. Rasmuson Foundation June 09 Pending Property Transfer Construction Start-Up Construction Completion/Punch List Close=Out & Occupancy Prepared by F. James McConnell July 2009 Aug 2009 Jan 2011. 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N W Carol Freas From: Robert Ruffner [robert~kenaiwatershed.org] Sent: Friday, November 07, 200$ 3:03 PM To: Carol Freas Subject: Fwd: Kenai Peninsula Fish Habitat Partnership Attachments: Borough_Invite_~efter_final.pdf; ATT1311$2.htm Begin forwarded message: From: Robert Ruffner <robert kenaiwatershed org> Date: November 7, 208 2:51:26 PM AKST To: Mayor Pat Porter <justgat44(a~hotmait.com>, Mayor Peter Micciche <ma or cisoldotna.akus> Subject: Kenai Peninsula Fish iiabltat Partnership Mayors Porter and Micciche, This email is in advance to a presentation I hope to give to the cowicils in the upcoming month(s). Please find an attached letter from Kenai Borough Mayor Dave Carey. The letter references the new Kenai Peninsula Fish Habitat Pamzership that is in the process of formation. The partnership is meant to be broad and. inclusive, local governments have an important role in this work. While acting as the-paint of contact, the emphasis an this effort is partnering. Please distribute among officials as appropriate. We have scheduled an informational meeting at the Cook Inlet Aquaculture Building in Soldotna on Dec. 11th, 10am to 4pm. It is the hope of the organizing committee that we can emerge from this meeting with an exchange of ideas and the first elements of a strategic plan (vision statement). Mare details on this meeting will be forthcoming. Thank you, Robert I'S - I'll be out of town far a couple of weeks, so I hope to visit with the councils in Late Nov or Eariy Dec? ~ ~ KE/V~ti A1V61VSUl.e4 RUGI~ A4ayor's Office e 144 N. Binkley •Soldotna, Alaska 99669 Toll-free within the Borough: 1-BDO-478-4441 ~'` PHONE: (907) 714-2150 + FAX: (907) 714-2377 .....,,,,. www.borough.kenai.ak.us October 24, 2008 RE: Kenai Peninsula Fish Habitat Partnership Dear Potential Partners: We would like to inform your organization about an exciting partnership developing on the Kenai Peninsula. An organizing committee is working to establish the Kenai Peninsula Fish Habitat Partnership (KPFHPt). This partnership is to work with the National Fish Habitat Action Plan (NFHAP) whose mission is: to protect, restate, and enhance the nation's fish and aquatic communities through partnerships that foster fish habitat conservation acrd improve the quality of life for the American people. Locally organized and driven, the Partnerships are the core work units ofNFHAP. You can Team more about the program at their website httu:!/fishhabitat.org/. In 2007, a letter of interest for a Kenai Peninsula Partnership was submitted and accepted by the national board. The board approved our candidate applica8on and we have been invited to seek full partnership. If you review the website above, you will notice that we are the senior candidate partner! To seek further recognition we need to ensure the full range of organizations comprising the "community of interest" around which this partnership is formed includes non-traditional conservation partners, businesses, landowners, and local government. Additionally, we seek your input in developing a strategic plan to guide the efforts of the partnership. We are contacting your organization to invite your participation. Given the importanc® of fish to the Kenai Peninsula, we hope that yon wztl provide us with a point of contact and help us in our effort to develop a Peninsula wide plan. In the following months, we will be giving brief talks across the Kenai Peninsula providing information abourthis opportunity. If your designated point of contact would like us to schedule an informational visit, please let us know and we will try to accommodate as many requests as possible. It is our desire to have a draft of a strategic plan in place by the summer of 2009, which will allow us to apply to the Nationat Fish Habitat Board for full candidate status by the winter of 2009-2010. To provide us with a point of contact or to request a presentation or any questions, please contact: Robert Ruffner (email robert@kenaiwatershed.org} Kenai Watershed Forum P.O. Box 2937 Soldotna, AK 99669 Direct Line (907} 260-5479 Sincerely, ~ ~ ~ David R. Cazey, Mayor ' Ad hoc Orgenizmg Committee composed of representatives from the Kenai Watershed Forum, Alaska bepertment of Fish and Game, Kenai River SportSshing Association, Kenai Area Fisherman's Coalition, U. S. Fish and Wildlife ServicF Cook In{etkeeper, U.S. Forest Service, National Oceanic and Atmospheric Administration, Kenai Peninsula Horough, end The Nature Conservancy of Alaska z';'~ Suggested by: Administration = __. ~~~~~'°f CITY ®F' KENAY KENA~ SKA ®EiDINANCE N~. 2360-2®08 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $2,500 IN THE GENERAL FUND FOR POLICE DRUG ABUSE RESISTANCE EDUCATION (DARE) EXPENDITURES. WHEREAS, Kenai Police Officers have taught the DARE program in our Iocal schools to hundreds of students since the early 1990'x, and, WHEREAS, Conoco Phillips is the sole financial contributor to the Kenai Police Department DARE Program, providing the City of Kenai with a check for $2;500 for the 2008/2009 school year to allow DARE officers to purchase learning incentives and graduation t-shirts that will be distributed to DARE students in Kenai Schools; and, WHEREAS, DARE is a positive program, directing young people to resist drugs and other negative behaviors that may negatively impact their health and well being. NOW, THEREFGRE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Miscellaneoixs Revenue $2,500 Increase Appropriations Police -Operating Supplies $2,500 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASIti9, this third day of December, 2008. PAT PORTER, MAYOR ATTEST; Carol L. Freas, City Clerk Approved by Finance: Introduced: November 19, 2008 Adopted: December 3, 2008 Effective: December 3. 2008 New Text Underlined; [DELETED TEXT F3RACKF.TED] 3 ~~,\ _ - j~~_ Ehe uiH o1~ // Suggested by: Planning & Zoning GITY OF KEIVAT ORDIIUAIQCE IdO. 2861-2fD08 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KEATAI, ALASKA, AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING KENAI PENINSULA BOROUGH PARCEL NUMBER 04701009, THE KENAI NATIONAL GUARD ARMORY (T5NR11W SEC 6 SEWARD MERIDIAN KN COMMENCING AT THE N1/4 CORNER RUNS 0 DEG 13 MINE 77.88 FT TH S 86 DEG OS MiN E 35.09 FT ALONG fiHE SOUTHERLY ROW OF THE NORTH KENAI RD TO THE POB TH S 0 DEG 13 MINE 683.85 FT TH N 89 DEG 47 MINE 330 FT TH NO 0 DEG 1) FROM CONSERVATION (C) TO GENERAL COMMERCIAL (CG}. WHEREAS, the owner of this property initiated a request to rezone the property; and, WHEREAS, this property is owned by the State of Alaska, Department of Military & Veterans Affairs and is the location of the Kenai National Guard Armory; az1d, WHEREAS, the property is currently zoned Conservation (C); and, WHEREAS, government buildings require a conditional use permit in the Conservation zone; and, WHEREAS, the Department of Military & Veterans Affairs plans an addition to the Kenai National Guard Armory; and, WHEREAS, rezoning the property to General Commercial (CG) zone would provide for an addition to the Kenai National Guard Armory u2thout a conditional use permit; and, WHEREAS, rezoning the property expands an adjacent General Commercial zone boundary and contains approximately 5.09 acres meeting the requirements for an amendment to the official zoning map as prescribed in KMC 14.20.270; and, WHEREAS, the Comprehensive Plan recognizes that the exact definition of Iand uses by parcel is to be determined by revisions to the zoning map; and, WHEREAS, on November 12, 2008, the Kenai Planning and Zoning Commission voted unanimously to rezone the parcel. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that the official Kenai Zoning Map is amended by rezoning Kenai Peninsula Borough Parcel Number 04701009, The Kenai Armory (TSNRI IW SEC 6 SEWARD MERIDIAN KN COMMENCING AT THE Ail/4 CORNER RUNS 0 DEG 13 MINE 77.88 FT TH S 86 DEG 05 MINE 35.09 FT ALONG THE SOUTHERLY ROW OF THE NORTH New Text Undezlined; (DELETED TEXT BP~ACKETED) 5 Ordinance No. 2361-2008 Page 2 of 2 KENAI RD TO THE POB TH S 0 DEG I3 MINE 683.85 FT TH N 89 DEG 47 MINE 330 F"I' TH NO 0 DEG 1) From Conservation (C) To General Commercial (CGjas shown on Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASK.S, this third day of December, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: November 19, 2008 Adopted: December 3, 2008 Effective: January 3, 2009 New Text Underlined; (DELETED TEXT $RACKETED] 6 .y\ „_, :~. ": rf, ~,ryo~~ C$'f'T' tpkr Y~N~I[ Pf Pali~l`d~iNC A?'dD Z~T~IF~'s1~ C6}ll~~'ifgSSE~1V &~Zf2R!~ ~AI.gBt~'9]rT A R ESCLUTION O,P THE PLANNLN~G ,4ND ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDIlV"G APPROVAL TO TH:E KENAI CITY COITNCIL C1F TPIE REQUESTED FEZON`1NG SUBIvIITTEI~ BY NAI\QE: Thomas H. Katlcus Bri¢adier General. State of Alaska De aztment of Militaz & Veterans .4ffaixs ADDRESS: 105 South Forest Drive LEGAL:TSNRI l W SEC 6 SEWARD MERIDIgN KN COMivTENCING AT THE Nl/4 CORNER RUN S D DEG 13 MINE 77 88 FT TII S 86 DEG OS Nliht E 35 09 FT ALONG THE SOUTHERLY I20W OI~ THE NORTH KENAI RD 'p0 THE PC}B TH S 0 DEG 13 M1N P 683 85 FT TH N 89 Dl,G 47 MINE 330 FT'I'H NO 0 DEG I PARCEL #: 04701009 WI-II3REAS, tike Commission f nds the following: 1. The subject property is currently zoned Conservation 2. Tare present land use plan. designation is Conservation/OUen Space 3. The proJ~®seell zoannzug dastsact is CG -General Corrunercial 4. An appropriate public hearing as required was conducted .November 32, 2008 >. That the following addirional facts have been found. to exist: a. This is 11ie site of the I{enai National Guard Armory. b. Government buildings require Conditional tJse Perznits in the Conservzrtion zone. c. T1:e rezone will provide zor;ing consistent'with present and future use of the parcel. 6. Applicant must comply with all Federal, State, and local regulations. NOW, 'I'HEREPORE BJ; IT RESOLVED, by the Planning and Zoning Conunission of the City of Kenai that the petitioned 1~~~®~T$I+I~ of TSNRt 1 W SEC 6 SEWARD MEItTDIAI~T IAN COMMENCING AT' THE NI/4 CORNER RL'N S 0 DEG I3 MIN B 77 88 PT TH S 86 DEG OS MINE 35 09 FT ALONG THE SOUTHERLY ROB' OF'IT3E NORTH KE'vAI RD TQ TTIE POB TH S 0 DEG 13 MINE 683.85 FT TH N 89 DEG 47 MINE 330 FT TH NO 0 DEG 1 is hereby recommended to the Ttenai City Council. ggll~~A~ppS'~'¢g;f~ Byy~'pp'T'Yqpt~; PT~LAgP~dI'~~l\'fp gA~l~'I5 ~(t[Pylg~ll':RTE~ CG~1~31~VI3~g®N ~~}F+'?f'HE CI7CY GJN Hw n~.yyABy A.@.,tB~A`1tL71V®9' ~rd 9,~+ EPO®. /jJj ~ t ~ ~~ Cff3AgRP1ERSC~I~: ~ ~ ~ / ,3 7 ~.e~ @ Yt C~ Conservation ~ GeneraLCommercia( Rura{ Residential ~ Suburban Residential 2 Limited Commercial [.igh# industrial ~ Rural Residential 1 Urban Residential Central Mixed Use Heavy Industrial Suburban Residential ~ Historic Townsite Central Commercial Recreation Suburban Residential 1 ~~< Education Ordinance No. 2361-20D& Attachment A R 1 aav '' ~~-~\ ~L'"F _ „~ tlre`aty o~ SENA~ SKA Suggested by: Planning & Zoning CITY pF KEftAI i7RDIN~NCE NO. 23fa2-2U08 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING TRACT A, PAPA JOE'S SUBDIVISION, CHUMLEY REPEAT FROM RURAL RESIDENTIAL 1 (RRl) TO LIMITED COMMERCIAL (LC). WHEREAS, the owner of this property initiated a request to rezone the property; and, WHEREAS, the property contains approximately 2.97 acres and meets the requirements for an amendment to the official zoning map as prescribed in KMC 14.26.270; and, WHEREAS, the property is currently zoned Rural Residential 1 (RRl); and, WHEREAS, the owner of the property would Like to build a professional office on the property; and, WHEREAS, the Rural Residential 1 (RRl) zone requires a conditional use permit for professional offices; and, WHEREAS, the Comprehensive Plan recommends zoning suitable for all land uses and to prepare criteria and standards under which compatible mixed uses are allowed to ensure that the uses are compatible with surrounding uses; and, WHEREAS, rezoning this parcel to Limited Commercial (LC) is consistent with tkse Comprehensive Plan; and, WHEREAS, the Limited Commercial (LC} zone was developed to provide a transition axea between commercial and residential districts and to allow a mix of low-volume businesses as well as residential use; and, WHEREAS, the parcel meets the intent of the Limited Commercial zone in KMC 14.20.115(a); and, WHEREAS, the Limited Commercial Zone (LC) allows compatible mixed uses with specific development criteria. for separate uses; aud, WHEREAS, rezoning the property to Limited Commercial (LC) zone would provide for development of professional offices; and, WHEREAS, the Limited Commercial zone landscaping requires buffers between residential and commercial uses; and, New Tea~L Underlined; (DELETED TEXT BRACKETED"i Ordina~ice No. 2362-2008 Page 2 of 2 WHEREAS, on November l2, 2008, the Kenai Planning and Zoning Commission voted 2 to 4 against rezoning the parcels, with Commission members noting that Council will make the fmal determination. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that the official Kenai Zoning Map is amended by rezoning Tract A, Papa Joe's Subdivision, Chumley Addition from Rural Residential 1 (RRl) to Limited Commercial {LC) as shown an Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this third day of December, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: November 19, 2008 Adopted: December 3, 2008 Effective: January 3, 2009 New Text Underlined; [DELETED TERT 10 Ordinance No. 2362-2008 - Attachment A Pr®p~sed ~e~®rF~ i:~r~l i2esiderttial '! fic~ i_irtlified Cornr~r~rci~i Legend [ ,e...._. ~ M...~.~,.~. ~ ~....,.., ~ ...,.....,.~. ~~ ~.N . ~ .~, ~ ~ M~~~ U z ~: '. o~ 0 0 N N m N O z U r a .y Sa O ~ ~ ~ ~ ® ~ p1 ~ ~t M ~~Wq 6~/.@qq ~ IXJ ~FJ ~ ry~ V ~. ~ a -,;p `a i~)7 . i= ti ~,~~,~ , ~\ -. EHecityaf KENA~ SKA "Vil~aye wit~r a Past City wit>Ci a Futuv'e" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 1 { Telephone: 907-283-7535 /FAX: 907-283-3014 1(~~{.l 7991 MEMO: TO: City Council ~~ FROM: Rick Koch DATE: November 25, 20D8 SUBJECT: Ordinance No. 2362-2008 -Rezone Tract A, Papa Joe's Subdivision, Chumley Replat The administration recommends the proposed rezone of the above property be approved by the City Council. Attached please find. a metnorandmn from iVlarilyn.Kebschull to me providing supporting infornlafion. If you have any questions, please contact me at your convenience. 13 ~~ .~- -_- ~/ `~\ tl~ecityof // MEMO: "Vi((a~e with a bast City r.~it~r a F~tr~~e" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone; 907-283-7535 /FAX: 907-283-3014 '`III°~ 7992 TO: Rick Koch, City Manager FROM: Marilyn Kebschull, AICP, Planning Ad DATE: November 19, 2008 SUBJECT: ORDINANCE NO. 2362-2008 -Rezone -Tract A, Papa Joe's Subdivision - Chumley Replat A public hearing is scheduled before Counci! on December 3, 2008, to consider an amendment to the official zoning map to rezone the above-referenced property from Rural Residential 1 (RR1) to Limited Commercial (LC). This is at the request of the owner. The rezone meets the criteria listed in KMC 14.20.270 for an amendment to the official zoning map. When processing the request to rezone the property, the Comprehensive P{an and the Zoning Code was reviewed. During development of the 2003 Comprehensive Plan, development concerns aiohg the Kenai Spur Highway corridor were discussed extensively. The Plan provides guidelines to address concerns for development along the Kenai Spur Highway corridor. Including zoning suitable for all land uses and preparing criteria and standards under which compatible mixed uses are allowed to ensure that uses are compatible with surrounding uses. The Council recognized the need to attain these goals and the Limited Commercial zone was developed and the landscaping ordinance updated. The proposed rezone to the Limited Commercial zone provides far low to medium volume business that would be compatible with adjacent residential uses (KMC 14.20.115}. The Limited Commercial zone is a mixed use zone providing for both residential and commercial uses. The zone restricts building size, requires setbacks the same as the Rural Residential zones, and requires landscaping as outlined in KMC 14.25, The applicant, Dr. Wortham, proposes to build and relocate his dentistry practice (professional office) to this site. Along-term plan would be to allow other professionals to build at this site. Dr. Wortham provided a conceptual drawing fo show the possible development of the site, The hope was that the concept would show how professional offices could be built and located so as to complement and be compatible with the adjoining residential neighborhood. 14 Under the present zoning, the site could be developed to house six tri-piexes without any zoning permits or landscaping requirements. If the property were rezoned to Limited Commercial, similar development would require meeting the landscaping requirements in KMC 14.25. Development requirements in the Limited Commercial zone provides for less obtrusive and more compatible development than currently required. The Planning and Zoning Commission held a public hearing on the rezoning application on September 24r'. At that time, the Commission postponed action to allow the applicant time to prepare the conceptual plan for the site. At their meeting on the November 12t~, the Commission received the development concept and additional public comment was received. The Commission voted 2 to 4 against the rezone noting that the request would be forwarded to City Council who would make the final decision. Based on my review, the rezone meets the intent of the Comprehensive Plan and the zoning ordinance. I recommend Council approve the request to rezone this property. 15 f "~°~'fa~e t~i~ a Past, Gi u>it ~ ~~ta~e" „ ~~,~ , 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ~„~„~, Telephone: 907-283-7535 (FAX: 907-283-3014 ,~~~~~ - 1997 l/~ecl~af' KEMA[,ALS ~% MEMO: TO: Planning & Zoning Commission FRONT: Marilyn I<ebschull, Planning Administration ®A7E: October 27, 2008 561P,JECT: PZ08-52 -Tract A, Papa Joe's Subdivision - Chumley Replat-Rezone Application This item was postponed on October 8 and October 22, 2008 at the request of the applicant to allow time to prepare a conceptuat development plan for the property, Attached is a copy of the conceptual plan prepared by Klauder & Company Architects. A color copy will be available at the meeting. Also attached is an excerpt of the minutes from the October 8`h public hearing. Attachments fYIU 4 ' ,• t 1 ~.. 17 i f 3 C_ _~~ b °' ,~,i ~~ ai 18 1-¢~. *Exenss~st ~asess~~s Commissioner Twait Commissioner Romain Commissioner Wells Approved by consent agenda. "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 Comrission Member so requests, in which ease the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General t3rders. ;i7CEls/J< 2; *L~P)12®~TE9L ®~° RRfil~iT3`E~ -- September 10, 2608 Approved by consent agenda. f~'E1~ ~: aCS~ES3'i7LE%3 1'~T~LfC 0~16~PoNT -- None ~~~P~ 4: Ct9NBTI)E~`d~N ®k° PLl~'I`S -- None ~a-a. ~Z~B-~& - An application for an Encroachment Permit for a side yard setback for the property known as Lot 19, Block 1, VSP Park Estates Subdivision (2765 4~atergate Wayj, Kenai, Alaska. Application submitted by Demiis A. Swarner, P.O. Box 1669, Kenai, Alaska.. Planning Administrative Assistant Carver reviewed the staff report included in the packet. Bryson read the Hales far public hearing and opened the floor to public hearing. There being no comments, the public hearing was closed. 1YF~'~'I®N: Commissioner Brookman 1B~E~B3 to approve PZOS-51 with staff recommendations and Comnssioner Koester ~~C~N~flll~ the motion. There were no ot~jeetions. s0 ®Z~EY2~~. ~-9~> E~ZO~-~2 - An application to rezone the property known as Tract A, Papa Joe's Subdivision Chumley Replat (9520 Kenai Spur Highway} from Rural Residential 1(RRl) to Limited Commercial (LC). Application submitted by I7anklin. T. and Kristie L. Wortham, River City Dental, P.O. Box 1284, Kenai, Alaska. PLANNING ~ ZONING COMMISSI®N MEETING SEPTEMBER 24, 2008 PAGE 2 19 Carver reviewed the staff report included in the packet and Bryson opened the floor to pubIie hearing. ~aac ~issef, ~®9 C~s~t1~ C~essf, L~~anaa -- Spoke in opposition to the rezone, noting he did not want too much activity in a residential area. abaaaine Esgsgr, ~0<3 IelieC®lluzca B}siwe, &aemmas -- Spoke in opposition t.o the rezone and suggested a permanent variance be approved instead; she did not want multi-family dwellings; suggested a playground as a buffer; wanted to see the landscape plan; and, inquired about the future plans for the site. Bryson noted the corner was needing a conditional use permit rather than a variance. Il3®sI* lEsp~, 993 Magac Aarenue, ff~~nas -- Spoke u7 opposition the rezone, in favor of the conditional use permit, and requested to see the comprehensive plan for the site. ~~cky Essay, ~®3 li/ia~xo l£v~rsaa~, ~e~nas -- Spoke in opposition to the rezone, noting she did not want retail businesses in the area. IlDe6slsi~ ~uxn9s~r~, 4Il® Giuaal~s~Ilfla, fi~effasl -- Spoke in opposition to the rezone, stating it would open up too many options for the property. E8®tsnaa ws~a~flat, ~Cl~ MoC®9flaaaz~x, Y~~xnan -- Spoke in opposition to the rezone, stating she did not want a strip mall ar mini marC on the property and her concerns regarding landscaping. S~Y~sasfla I±eekeaa, E~Max ~£ t2i~ II~'~rsirasanFa, Il9B?'~ ff~~naE ~gsaaa IlPa~Ila~raq, E~araa -- Spoke in favor of the rezone, noting the City code provided for a buffer strip in the Landscape plan. E`+saaakAaxa W®at;taarue, ~75$~ faraxat A~~aaax~, Kesn~i -- Applieaaat, stated he had met "vTitli. an architect; wanted. a buffer w7.i=['i piaygti>Y:cnd equipment in the back of the tot; wanted to meet with neighbors regarding a comprehensive plan fox the lat; and, wanted to bufld three to foua- professional affices, each less than 3,000 square feet. ~glsgaaae ~elaaIIaiaft, 5Il3 ~asla ~av~raan~, ~eaa$f -- Spoke in opposition to the rezone, noting it was an example of spot zoning, thought it set a bad precedent, and suggested a conditional use permit rather than the rezone. She also noted the sign for the applii:ation posted on the property was too small to see easily. C31~f®a°d ~~aanfHa, ~Il~ ~~~~ss ~®ael, ~~anag -- Stated he believed highway frontage was designed for businesses, thought the cleared lot was an eyesore, and wanted a more attractive use for the property. F°atgfleaa yaBSerala~s~, 399 MaG~Illlaaas E9riv~, E~nai -- Spoke in opposition to the rezone, stating the highway was already busy, noise was an issue, and wanted the area beautified. PLANNING & ZONING COMMISSION MEETING SEPTEMBEi2 24, 2008 PAGE 3 20 Thea~e being no further comments, the public hearing was closed. 1~®TE8)1la: Commissioner Koester 2!>i~VEI3 to continue PZO$-52 at the October $, 2008 Plaau~ing & Zoning Commission meeting. Commissioner Brookman SE8;81%v'~;EII the motion. V OB'~: Roanain EXCUSED Wells EXCUSED Twait EXCUSED Bryson YES Rogers YES ~ Broolanan ~ YES ~ Koester ~ YES ~ -- ~ I ~OTI®Ii~ I'A~~EII YTI~A~TIII~I:B13~I,~'. i~C'd`.4.ifEl~: $:813 p.aaa. 19~l~.CI~ TCS ®Ii~~~: 3:~~ ~.aaa. Y'I'EI9R ~a B~fl,I- ~IJ~II~ sS -- None I~Eli/L 7: iVE~T ~iJSI1VESS -- None I~'EIB~F $: ~EIVIBfiI~Cs I'~El~s5 $-a. P2817-~5 - Reeommendirig Council enact KMC 9.10.015 to require duanpsters be screened on at least three sides. I'I"EI~ ~: 1ia~~TS D-a. 8;atg~ C®aausofil -- Council Member Ross reviewed the action agenda items of the Council meetings of September 3 and 17, 2008 (copies included in the packet). ~-lu. >~as®eagh ~I~aalmm~ -- Bryson reviewed the agenda and actions taken at the September 22, 200$ Borough Planning Commission meeting. ~-a. A,tlraaiaaas~rata®xn -- None I°lCEl~fi Il81: Pa~R~ED1~~ ~~IEPB~` IV~~ ~SC)EIIEb1iI~EI1 -- None I~'EI@3_g~_ fii~'Cl 1'fl®I~ I~`Ei~d~ fl fl-~. Kenai River Center Permit Application - Mielaael Blair 11-9s. Zoning Permit (9/10/0$} Il 1-~. Notice of Absence - Commissioner Twait E Il-~. Notce of Absence -Commissioner Romain Il Il-~. Notice of Absence - Carnrnissioner Wells PLANNING & ZONING COMMISSION MEE'T'ING SEPTEMBER 24, 2008 PAGE 4 21 u'f.4FF ~~P~9~1" TO: P.eanning ~ z09'liEBg ~..0%f'9(nisSiOn gate: gr~ora~ Rey: Pzas-;zz ~~~~ L ~NF~~A~II®A9 Applicant: Franklin T. & Kristie L. Wortham 283-1420 River City Dental P.O. Box 1284 Kenai, AK 99611 Resiuested Act6on: Rezone - RR1-Rural Residential to LC -Limited Commercial Legal Description: Tract A, Papa Joe's Subdivision - Chumley Replat Street A,dda•ess: 9520 Kenai Spur highway ~CPD Paroei No.: 04506025 Sxisting Zoning: RR1 -Rural Residential 1 Caarsent Land 47se: Vacant Land Llee Pisan: Neighborhood Residential ~~9AL~~~ General information: This is an application to rezone Tract A, Papa Joe's Subdivision -Chumley Replat, from Rural Residential 1 to Limited Commercial. KMC 14.20.270 describes amendment procedures. .Section 2 states, "Amendments to the Official Zoning Map shall be considered only if the area to be rezoned contains a minimum of one (1) acre (excluding street or alley rights-of-way) unless the amendment enlarges an adjacent district boundary." This subdivision contains 2.87 acres and meets the requirement for an amendment. The applicants would like to build a professional office for Dr. Wortham's dental practice. The long-term plan would be to have. other professional offices developed on the site. The Rurat Residential 1 zone requires a Conditional Use Permit for professional offices. The City of Kenai Comprehensive Plan (Page 37) recognizes the issue of neighborhood concern relating to commercial development near residential areas as conditional uses or through rezones, particularly along the Kenai Spur 22 OSS2 Coxmnent.doc Highway. The Plan continues, "One of the goals of zoning is to achieve stable, livable residential neighborhoods by separating them from incompatible uses. This is best achieved by zoning sufficient suitably located land for all expected uses, then adhering to the zoning plan." The City of Kenai's Planning & Zoning Commission and Gity Council recognized fhe issue of development along the Kenai Spur Highway and developed the Limited Commercia! zone to provide a transition area between commercial and residential districts and allow a mix of low volume businesses as well as residential use. KMC 14.20.115 -Limited Commercial Zone (LC Zone) - "Intent: The LC Zone is established to provide transition areas between commercial and residential districts by allowing low to medium volume business, mixed residential and other compatible uses which complement and do not materially detract from the uses allowed with adjacent districts." The Limited Commercial Zone requires .that developments meet the requirements in KMC 14.25, Landscaping/Site Plan Regulations. Included in those reguiatians is the requirement for a buffer separating commercial uses from adjacent residential properties. Building Official: Rezone would cause no building safety violations or concerns. ~EG~~~~~~T9~~~ This is an application to rezone approximately 2.97 acres from Rural Residential 1 to Limited Commercial. The applicant plans build a professional dental office. in the tong-term, the hope would be that other professional offices would be built bn the site. This property abuts the Kenai Spur Highway and Cinderella Avenue. The property is across the street from Kenai Central High School. The previous owners attempted to develop this property by applying for Conditional Use Permits for a retail office and then a professional office. The application for a retail office was denied. The application fora professional office was approved and fhen appealed. Prior to the Board of Adjustment meeting on the appeal, the owner withdrew the application. Since that time, the property has been cleared. The most recent attempt to develop the property was by the Kenai Church of God. They received a height variance for the structure. For unknown reasons, the church was never built. Since the original developer attempted to develop this property, the City completed the 2003 Comprehensive Plan and the Zoning Code was amended to include the Limited Commercial Zone. The Landscaping ordinance has been updated to include. specific landscaping and buffer requirements between residential and commercial uses. Page 2 23 OS52 Casnment,doc Pagc 3 The proposed rezone appears to conform to the Comprehensive Plan and the Zoning Code.. The proposed development will improve the property providing for limited commercial development. The landscaping requirements will insure commercial use is separated from the adjacent residential properties. Recommend approval. A"fTACBih~~N7'S: 1. Resolution fVo. PZOS-52 2. Application 3. Drawings 24 ~~~` ~. ;~. CIl'Y OF KENAI PLANNING AND ZONING CO1rRNIISSION RESOLUTION NO. PZ68-52 REZONE PERIlIIT A RESOLUTION Oi TI-ZE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDING APPROVAL TO THE KENAI CITY COUNCIL OF THE REQUESTED REZONING SUBMITTED BY NAME: I+rank6in T. & ICristie L. Worthatn ADDRESS: P.O. Box 1284 Kenai. AI{ 94611 LEGAL: Tract A. Papa Jae's Subdivision Chumley Reolat PARCEL #: 04506025 WHEREAS, the Commission finds the following: i. The subject property is currently coned RRl-Rural Residential 1 2. The present land use plan designation is Nei~hbarhood Residential 3. T'he pragsosed zoning distract is LC -Limited Commercial 4. Au appropriate public hearing as required was conducted _ September 24. 2008 5. TTiat the following additional facts have been found to exist: 6. Applicant must comply with afl Federal, State, and local regulations. NOW, TI-iEREFORE BE IT RESOLVED, by the Planning and Zoning Comrnission of the Citq of Kenai that the petitioned REZONING of Tract A, Paaa Joe's 5aahdivdsion, CEannalev Rew7at is hereby recommended to the I{enai City Council, PA55EI1$Y TI3E PLANNING APv~D ZONING CONIlVII55ION OE TIME CITY OP KENAI, ALASKA, Novennber I2, 260$. CIIAIRPER50N: ~.TTEST: Public Hearing/Postponed: September 24, 2008 Postponed: October 8, 200$ 25 r~~~~~d Raz~n~ Rural Rasideratlal 1 t~ L.Imlt~d ~~a~rr~~r~lal ~egev~d 26 .~~ a..,•V ~ ~ ~ °M.,. w z 3 ~ v ~ ~ u. p~~p u~ mp q`aqtl M OId C~C~ ~ ~~/~qY ~ bd O ~y~ nr` \`\`~ ~~S \~2g2q~~ L/ U~"~ ~P~~l~~~ge ~~~~~ ~ a~~, G~ ~i~h ~ ~a~t~~°e ~r 2 0 Fidalgo Avenue, Kenai, Alaska 99611-7794 1 ~~ «~ Yc'~J ~~. Telephone: 9q7-283-7535 !FAX: 907-283-3 ~ ~. - ~~ t^,~ q{~~tl ~Jf~.` 1992 theufvof `~~A`c s~ ~' ~~,_ e Date ~ ~ ~ ~ _ ____ I . !Jame of Applicant 4-ty'Cza.-~e ~ 6.1 ~ ~e&°''s ~ E , 2 i "~,fk~ ~ ~ ~< ?. Business Name /I i 1f +?-b ~ ~ 3. Mailing Address ~ P~ ~ ' .~-@:, ~ Ate„ 4. Telephone ~ •--`~"~:} EmailAddress ~a' ~-C;g ~e~,!-~~~,~~t~~ e~.yrv,~ „fit h at 5. Legal Description- ~ ~F ~P-xms °-~'~~=s'~+~~P,r , ~s; arm j C1n~r {~~ t- - ~-s° KPB Parcel No. 4 y ~L.~ ~~ 6, Property Address ( BY -+'~bY1r„iY, 7. ~ City of Kenai Zoning ~r d-d~ a~ 99 ~.i~<~ ~ ~a~, i~.. a ~~r" ~ dt~ -~ ~__~ 8. Application applying for (mark permit being applied far): Q Bed & Breakfast Q Conditional Use ^ CUY -Transfer Q Encroachment i {~ Gravel Extraction O Igome Occupation ktezone D I'ownsite Historic Development Q .Variance The £ollowina inforarzation anaast be provided before vour application will be considered for pracessi~. Do not submit vour application unfit it caratains all required information (Check each box that applies and attached the necessary inforination to process this application.} °~t I am the legat owner of the property. ^ I am not tlae legal owner of the property; however, I have attached verification by the owner oFthe property that T have permission to apply for the permit. I have paid the requireH fee ($1 E30 plus sales tax}, A¢4ac-a a detailed! r-esca--~pdi®re tafl the p r®p®s~~l anso. ;[$eview the app6a~aPo9e sectaoaa ®9`~-na l~enaa temanxaaeupai Coc&e a~ad iaaciaacle a-8saaff®mnnatioffi roa-asir~sP dsy scrc$a d'®a->t6no Qype of a-np-a~atsoaa. 3ncaaanpleCe agnp-icakioav ~a-- ~®t 9se ace¢p~atea-, 6igaaat¢are a'ecgunrerH o~ lsae-c --> 28 PROCEL3UTtES PO22 PERIViITS RE~URIN~ PUI3Z,FC HEARINGS AND N(3'Y'IPICATIONfi T(ie permit you have applied for may require Public Hearing alzd Notification undex KMC 1 ~d,20,280. The Plam~ing and toning Commission meets the 2i° and 4a' Wednesday of each month. 'I'o meet notice requirements, the Planning Department must receive yaur completed application 2I ales, a7Lr8oz• to the meeting when fhe Public Hearing is scheduled. ® Applicationsrequiring Public Bearings musk be filed rro later than noon on the date of the deadline. ® Home Occupations and. I.atsdscapel5ite Plans do nat require a Public Hearing. m Allow up to 4 weeks for the permitting process. m If required: a The Frre Inspection Report must be received riot to processing the application. a The Affidavit of Posting must be received 2 weeks arior to the hearing date in order to schedule a public hearing. a Resolutions cannot be issued until expiration of the l5-day appeal. period. o Resolutions cannot be issued until documentation is received that the certificate of compliance is met, the infatio~~ provided is accurate to the best of my knavvledge. Applicant Bate ~'7FZ~1V ~ fDgJ 1<IA"6~Il<; ~ C'®~F.I~Ir.IE'JC"~1<D AI'P~,IC'~,7fgtDl~, CAICJi, ~g3-g2~7 '1['~ S~Cll~II9FIi1E A1~' APPC~>f~d'I'~E~TT WI'E'~ T]Hiff+' I'~,AYe'?~TliI4T~ ~~kT~1(8'-'1~I~+~T7["Il'f1 ~II1W 7ClE~ AP'?Pg.HCAT7[6-iV. ~/~$/ZOG~ 29 V. ._ ~ I f ~ 3. * t .tea ~`~m [ ~rt~ ~5~~~~~ ~f~'t~~~~~~E ~~~ UP.ar ;roembe,K c; Che Planrring anti Zaning and CiCy Cnunril, Z am E.dnsing t17is IeL+er as a supplement: ane a brief ln~oeuctien Co 7y propased protect, Fts rr:an/ of you know; I yretnr sp kn i4enai. S !nave been nnarrieci for 22 ye2~°s to my wonderful wlfe ICrisde and w,e have 4 renarka6ie d'dldren Kefsey, Lade, Tanner and Whl'sley. My wipe and ; both attended coifeae at 5oise State Unlveislt`rr and graduated in 199c. Z attended school at Che Unlveisty~ of Sawa College of Dentistry and yraduated in 2000. I returnee to ¢he Kenai area in July of 20UO at which time r opened m•{ office, RN:r City Dental. I couldn't Chl_nk oP any other pace to Iive, work and rase a fai,nify. F,ft,r R year, of prat-ice, T am entei9ng a - new p4nase of proF~essional yron2h. I !lave dedd~d :ro undertake iha'iask of buildag my ovrT; offic'~e here In Che Ci ~ al' Renal. i recenCly purchased 3 acres of land In the City of Kenal. Curren:;f;5 Gne (and irn+oh~ed is znnQd residential. I ain applying ~;cr a Limited dJse CGrnn;e,-<ial (LCj zoning deslynatloi;. h]aiow is a brie`' ouiiiine oP my inte;Ydons and gm-;. in develauing This land. phase 7 of L:0 derrelopmerS rvouly caL' for Che rLrrv'cruciion of nrr dartal afisca ttne Spring cf 2000. Y am ccrren2iy wcrlting ,n+iFh sevc-ra. canCractars in %he area. in designs and Isld. I hale endnswt ~uitil the ap{aiic.aL~lon boor plan Shat would r,^". my. an2r?t s¢e ariG patient base. T'te anent pier czlis for a huLding appro?efrraTely 3804 saeare fast Carent scL7uladon resGicC foul p;$!. (:0 3000 square feet, sa nsy plan «lay need tc rnodifed or a varizsice obCained. I currently Piave 5 treaY.merit; rooms n my eastfix attic," and ~wouid like fi malnt3in or pcssibb/add cne Ea t\NU ;tore chairs tLat would r^.cilitaYe a fuvure associate. RasiricCing Pnc- size of the hui!ding Ca 3000 squa;'~',`aet cr less resO~icCS Jlis to a cer~in ex':ert. l nz conctruc6on design c~4L^, ¢or a wand fame bu!Iding, gable roof, and r,>IVCi<fvt?ndaYfon. TI?e Passttrilii:/ c`a dayiigi^t basement has beer,-:onsldered to allow for easy hrph:~netlc of plumbing for dente; applications, n,li dz,igps av{I,( f-oiialy c;!rrent ctp cedes and rzgulations. Lardscapirg zo he a prioiitg frlr asCnF~kics and beautiflcaCion of U;e urrouadine area `F ~ ~ C~4_,~ ~(t~~w'~ c Phase L would call tot d¢veloprnent o` e,;.irrounring lapd trot lii<,e min:.'ac bust,>>es~es. My goat would ie ro ha~x+ several dente! spe:iailsts in tine develapn~srt. I would farasee deve{opment to enrympasa ehlrepractic, finanda! planning, medical offices, eta, Gertalniy ffiis is a ten, vim develo,~rnent plat,. Py, ou a r goat s t-n d vela <, p;n,e, seen i ~n gy acva, nn i ru tpl d sdis:i~,es t wart to } ~ dia_ in a° acsdseuca{i - a ing Grid ~ gc }oroicailr+ api~eaiii g area; o it -. ar ilwgi a. 7 i to sul c~n ti i y .,red sd amts the .mFa.._ to exist ny r@sidb'^ia uc~lures. Thank vn!m i^vf Val CotlS+!tic'"r'~;iol'`t19~%1i51'ni3itt?r, Gr. P Toed WnrCllam ~\ ~ ~./ ~~.~ i , ,... .~ r i ri ~ r I ~ ., r ~ ;..... I li f 1~,, -- I I i ~:'.~ ~_, 30 ~_ ~ ~ o! r j ti- O ' ~' I~~- % L- °'c~ m o ~ ~ I I~ I ~ ~`~ ~~' "o~ ~ o J- I ~~_- - ~ ~~I ~ ~ r~------! -- ~ ~ _~ ~- _ i s ~ l ~ ~~ {~ ~i i_ ,.' ''t -1 1 \ ~ ~ // o ~r-~~ ~~_ ~ ~CC~ ~, ~~~_II IE ~.-o ,a E~~ u y~ ~ 1 ~ ;^ ~~~ ,.~ ' ~ ~ 1 ,?' ~ ( 'ems v\-~` J r ~-- ~: o ~~ -~ I----- I z r -, -- -- ~ ~ - - __~ Q Z w s1 ~' ~~ Donald Wright 604 McCollum Dr, Apt A Kenai, Alaska. 99611 Ph 283-4071 Residence 1984 - present T would like my opinion read at the Planning and Zoning meeting, I appose the ordinance change before the board, The Rural Residence is all that keeps this area attractive to the residence, T would tike to strongly urge the boar°d to re}ect the application and send a message to all that this area would like to retain .Rural Residence designation. The Chumley°s Application for Ordinance Change was denied by the board a few years back, several long time residence of the as^ea had put a lot of effort over the years keeping this area a green belt and a place for families to live. A few have passed away or moved on, I feel alt the board members should know of these people°s wishes and respect their hard work over the years. A couple years ago Chumtey's cleared Hearty call the trees, tFse property was made it Loak as if a Church was going to be built, I didn°t much like the way it was cleared but realized their rights. In 2007 I purchased Z 1/2 acres lot,a corner lot at Cinderella and Magic, directly east, behind. My wife and S have been butldtng a new home at Cinderella for the past 18 months. We never thought that this area would be allowed to be commercialized, I have not heard from anyone in our area vVho wants a change in the ordinance. Send a clear message to all Rural Residence Onty. Don Niright ,~ ~~1 ~~~ d~ea~6ve€d`° ._, ~ ~ ~ ~~~~ 32 Hnona: Robin Wright [alaskarobih@hotmaii.com] Sont: Tuesday, September 23, 2008 6:28 PM 'Uoi Marilyn Kebschutl Subpect: Rezoning of Tract A, Papa Joe's Subdivision I am opposed to the rezoning of Tract A from rural residential to limited commercial. My husband and I have made a substantial investment in 2 1/2 acres across from this property and are currently building a custom home designed by local architects. We had concerns about building across from a lot that had been stripped, but were assured a church was going to built there, and if it didn't happen as planned, we would not be at risk facing a strip mall as the property is zoned rural residential. I also had faith in the understanding that the city has landscaping guidelines and a plan must be submitted for approval. An earlier attempt at rezoning this property failed due to opposition from Kenai High School and local residents, due in part io the increase in traffic it would cause across from two schools and on residential roads. As time progresses, history shows, zoning regulations increase in well planned cities. We need to learn from the sprawling disorder of similar-sized towns. Let's keep our zoning laws and residential cover~ants in place, and take the opportunity to in-fill the many vacant properties in areas already established as commercial by city planners, as well as several existing commei^cia7. buildings standing vacant. Sincerely, Robin Wright ;:Stay up to date on your PC, the Web, and your mobile phone with Windows live. http; Jcllya'tdmt.tom/MRT/go~msnnkwxp1020093185mrt directJ01/ 33 kenat Fen€rrsrxla Asscciatitn of 6?EAi'F~~S's E~ea€ ICanal Ckty Graunc€! fv$~rnkrer= I ant venting to ask; yru t2a Support the rexcrrtzng of parcel #tbe5C3EiG!'LS, rezanirr~ fream 1tc~raC fie€idenEsat' 1 to krmite'd Cc~~rtrnerr<:¢arE i~?ne~ ThCs ~~rrC~igassu~wott ~ame'C4 a vote [ri tl~e City Ctrrrnc't4on Clecerrttier the ord. " Tha Kcnal City C~auerc(i p€srposeei Phis new zcne: 74s~: Cm4tcd .oss~trnerciak Zone is established try p€'1au€de trrrrsibi:~n areas... ksetvier~ti cr~mr~rerczaf arEd restde.ntsat d`astic6s tsy allovu3irg icw to medturrr va9urne krusinass, mixed residenEiai and nih¢r c~rnpatiiste usr:s watch campldir~~ni anat ckn not maieriafly detrae# fram the uses ~liriwdd with arS~acent dis€nicts; tca enhance t?te areas Eieween r°4tdECeti~r( and cc,enmereial yet ~.eep'cttg titie daradscap€ng aiipeaCirg .a fne l~Ertai. `lh4s kv;~ttfd enhance the aria a„ecss €r€37ir Kdriak. C;enfei~{, ana ;,nt datrace {rrrm iC artd-cash€e the Caunr;fl tca ensure t17a leneisc~rpe at the pPC1peF`Ey: Think you t'rxr vaur support. =rlcerctS'; a ~1';r ~ w,..~ t r 34 Carol Freas From: Kenai Peninsula Association of REALTORS [kpar@alaska.netj Sertt: Tuesday, November 25, 2008 1:25 PM To: Carol Freas; c.freas@ci.kenai.ak.us Subject: Rezone Kenai Peninsula Association of REALTORS® November 25, 2008 Dear Kenai City Council Members: I am writing to ask you to support the rezoning of parcel #04546025; rezoning from Rural Residential 1 to Limited Gommerciai Zone.. This zoning issue will come to a vote in the City Counci! on December the 3rd. The Kenai City Council purposed this new zone: The limited Commercial Zone is established to provide transition areas between commercial and residential districts by allowing low to medium volume business, mixed residential and other compatible uses which complement and do not materially detract from the uses allowed with adjacent districts, to enhance the areas between residential and commercial yet keeping the landscaping appealing to the Kenai. This would enhance the area across from Kenai Central, and not detract from it and enable the Council to ensure the landscape of the property. Thank you for your support. Sincerely, isari Butler Executive Officer Kenai Peninsula Association of REALTORS® 36294 Kenai Spur Hwy., Suite B Soldotna,AK 99669 907-262-1851 phone 907-262-1$21 fax kpar alaska.net www.kena ipeninsularealtors.ors i 35 November 25, 2008 Dear Kenai City Council Members: Please support the rezoning of parcel #04506025, fi•oan Rural Residential I to Limited Commercial. The City of Soldotna has effectively used Limited Commercial zones for many years on their smaller collective roads. You have low impact businesses nexf to residential homes. People do not want to build residentia[ .homes next to busy stxeefs and limited cammercia.l zoning is a great way to provide transition froul highway fiontage to residential area. I am a local Realtor and currently President of the Board of Realtors and I am familiar with zoning districts. I am also familiar with this property and it really should be zoned Conunercial, but Limited Commmercial is a good compromise. Many of cormnercial businesses have tried to locate in Kenai along the Spur Hwy and found the Rural Residential l zoning to be a problem and They have located elsewhere including Saldotna and I~-Beach. Please consider supporting this rezoning renuest. ~~ ~ ~~~ Dale Bagley Redoubt Realty 43335 I>-Beach #t32B Soldotna, AK 99659 36 11/'t"a/2008 14:58 FAX Kenai Peninsula A350LIation of REALTORS° November 25, 3008 Dear Kenai City Council Members: I am wrlNng to ask you to support the rezoning of parcel ft045tl60T5, rezoning from Rural Residential 1 to Limned Commercial Zone, Thls zoning Issue will tome to a vote in the City Council on December the 3rd. The Kenai Cley Council purposed this new zone: The Limited Commercial Zone is established to provide transition areas between commercial and residenfial districts by aApwing law to medium volume bus{ness, mitred residential and other compatible uses which complement and do not materially detrac4 from the uses allowed with adjacent dfstric45, to enhance the areas heeween residential and cammardal yet keeping the landscaping appealing to the Kenai. This would enhance the area across from Kenai Central, and not detract from It and enable the Council to ensure the landscape of the praparty, Thank you for your support. Sincerely, ~~''~--- ~O'J"~~ Ip 061 37 Nov 25 08 03:04p Debra Oskolkoff 907-567-3366 p.2 II Kenai Peninsula Association of REALTORSOO November 25, 2008 Dear Kenai City Council Members: I am writing to ask you to support the rezoning of parcel #04506025, rezoning from Rural Residential jl to Limited Commercial Zone. This zoning issue will come to a vote in the City Council on December the 3rd. The Kenai City Council purposed this new zone: The Limited Commerciale Zone is established to provide transition areas between commercial and residential districts by allowing low to medium volume business, mixed residential and other compatible uses which complement and do not materially detract from the uses allowed with adjacent districts, to enhance the areas between residential and commercial yet keeping the landscaping appealing to the Kenai. This would enhance the area across. from Kenai Central, and not detract from it and enable the Council to ensure the landscape of the prdperty, Thank you for your support. Sincerely, 38 NOV-25-2008 TUE 04:25 PM Freedom Realtq Kenai FAH N4, 190~2831n95 P. Dl Kenai Peninsula Association of REALTQRSO November 25, 2008 Dear Kenai City Council Members: i am writing to ask you to support the rezoning of parcel #44546425, rezoning from Rural Residential 1 to Limited Commercial Zone. This zoning issue wil( come to a vote in the C'rfy Council on December the 3rd. The Kenai City Council purposed this new zone: The Limited Commercial Zone is established to provide transition areas between commercial and residential districfs by allowing low to medium valurne business, mixed residential and other compatible uses which campfernent and do not materially detract from the uses allowed with ad]acent districts, io enhance the areas between residential and commercial yet keeping the landscaping appealing to the Kenai. This would enhance the area across from Kenai Cenfrai, and not detract from it and enable the Council to ensure the landscape of the property. Thank you for your supporf. Sincerely, 39 Carol Freas To: Bob Molloy Subject: RE: Ordinance No 2362-2008, Application to rezone to limited commercial. From: Bob Molloy [mailto:bob@molloyforcouncil.com~ Sent: Sunday, November 30, 2008 10:06 AM To: Carol Freas; Corene Hall Cc: Patricia Porter; Rick Koch; Donald Wright Subject: Re: Ordinance No 2362-2008, Application to rezone to limited commercial. Comment reed for 12-03-08 Council meeting, Item E-3 - Bob Molloy On Nov 30, 2008, at 9:51 AM, Donald Wright wrote: Kenai Council Members, November 30, 2008 I am going to be working on the slope when the rezoning of Papa Joe's subdivision comes before the council, and I would like it know that I am very much opposed. I am not happy after seeing plans that have been presented for the property, as it doesn't resemble what Mr. Wortham was expounding to the zoning commitee. He stated he was in contact with the neighborhood and intended to work closely with them, paying attention to their concerns such as traffic and aethetics. Residents requested that if bringing a commercial park into our neighborhood, a green area with a small playground could be used as a buffer. I believe Mr. UVortham said he had already been considering that and was going to be looking into playground equipment. It sounded good at the time, but it's obvious Mr. Wortham has his own agenda which is ruled not by social consciousness but by the almighty dollar. There is land. as well as, empty buildings in areas zoned commercial that could be in-filled. I have lived at 604 McCollum Dr. for 24 years and my wife and I purchased 2 1/2 acres on the corner of Cinderella and Magic, directly across from this property. We are in the process of building a custom home there. This neighborhood has fought long and hard to protect the integrity of this area. It's my hope that Kenai holds steadfast in their commitment to good planning for the future of our town. I would like to see it as a model for other small towns that don't want commercial sprawl taking over their residential communities. I hope we make decisions with care to the long-term impact it will have for future generations who choose to make their home here. We need to keep our green areas and residential buffers in tact. I would hate to see the exercise path, that is used by so many people of all ages in our community, dissected by commercial driveways. I would like to see it as a model for other small towns that don't want commercial sprawl taking over their residential communities. The ideal would be to see the city take over this property t that has been a worry for so Tong, and turn it into a park with a playground and community garden. It could be a gathering place for families and Saturday market could be held there in the future, when as it grows too large for the parking lot at the. Visitor's Center. Quality of life in our town is more important than one person making a financial killing. Sincerely, Don and Robin Wright 406 Cinderella 283-4071 2 Carob Freas Frown: Roy Espy [rh_espy@yahoo.comj Sent: Thursday, November 27, 2008 10:25 AM To: bob@mollyforcouncil.com; hvsmalley@yahoo.com; kenaimayorl0@msn.com; cpajoe@altrogco.com; rossrck@hotmail.com; mboyle@alaska.com; barry_eldridge@yahoo.com; Carol Freas Subject: Papa Joe's not anything goes City Council. I will be out of town when the city council meets on December 3, 2008 and would like my comments included on the matter of the following proposed rezoning. The only opposition from the neighborhood facing Dr. ~~%ortharn breaking ground next spring for a proposed new office is his request to .rezone Tract A, Papa Joe's Subdivision, Chumley Replat firom Rural Residential l (RR1) to Limited Commercial (LC). I have spoken'fo Dr. Wortham twice and have expressed my support for his additionof an office to the area, but not for the rezoning. Rezoning is unnecessary fr» -die achievement of his stated goals of a professional building. Most of the neighbors, but not all, are supportive and cooperative for a Conditional [Ise Permit but all stand waited against Limited Commercial (LC). At the meeting on November ] $`~ between ~e neighbors and Dr. Wortharn, he expressed two issues that have me concerned. One was that he was surprised of the high cost of General Contractors and what he had paid for the property. He paid something higher than that of Rural Residential, but still lower than the $450,000 that was asked fi-om the seller. The natw-e of my concern is the pressure to liquidate after a rezoning. Whatever he paid for the property, that is Dr. Wortham's business and I don't care. What does concern me is that far-tunes can change with this current economic climate; we the neighbors whose homes are located here have no assurances of 1Jr. Wortham's !ong-term goals. Granting a rezoning to Lnnited Co^nrercial (LC) would offer I}r. Wortham over night, a tempting carrot in the Form of a windfall profit. 1°he true test of Dr. Wortham's comminnent to this neighborhood is being happy with a Conditional Use Permit. Zoning is a matter of public trust, not of public debate. Zoning is there not only for the developer and businessperson, but more so for the individuals whose hopes and aspirations are in seeking a peacefullrome. for their family. Rural Residential 1 is a contract with the City of Kenai and the homeowners, and many of The homeowners in this area are the co-authors of Rural Residential I zonhrg, tlvs contract should not be tampered with. Under no condition should the City of Kenai grant a rezoning of Papa. Toe's Subdivision to Limited Commercial (LC). I request that the City Council postpone their vote and not take action at the L)ecernber 3 meeting so that all property owners can be properly notified of the situation and further dialog can take place between Dr. Wortham and. the neighborhood. Roy H. Espy 403 McCollum Drive. wuv-zu-zuud Wt U4~Zb PC( Preedam Keally Kenai rAX N0, 19072831695 P, Di Kenai Peninsula Association of REALTORSCN November 25, 2008 Dear Kenai City Council Members: I am writing to ask you to support the rezoning of parcel #04506025, rezoning from Rural Residential 1 to Limited Commercial Zane. This zoning issue will. come to a vote in the City Council on December the 3rd. The Kenai City Council purposed this new zone: The Limited Commercial Zone is established to provide transition areas between commercial and residential districts lay allowing low to medium volume business, mixed residential and other camps#ibie uses which complement and do not materially detract from the uses allowed with adjacent districts, to enhance the areas between residential qnd commercial yef keeping the Landscaping appealing to the Kenai. This would enhance the area across tram Kenai Central, and not detract from 'rf and enable the Council to ensure the landscape of the property. Thank you for your support '` Sinc~ere~l yy, is/~/~~' ~~ c~ ~ ~r- ~~C~V oEC -12ooe x~~~~ ~s ~tc 9 ~/J\~ =c~'rvJ~ ~~ ~ ~ ~~ ~~~ ~ ~ ~ --~,,,~_ 39 12/01/2006 12:00 9072626883 CIIIIAI.L' 1~1.'~AL 1 X 35477 Kenai Spur Highway, Suite 201 Soldotna, AK 99669 907-262-3958 www,choicercalt aiaska.cotn December 1, 2008 Marilyn Kebschull Planning Administrator City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 Re: PZ08-52 Rezone-RRl to 7,C Trace A, Papa Joe's Subdivision - Chumlcy Repeat Dear Marilyn: ~~~~~~ ~ DEC - ~ 200 K~A.~ CIg~ C The Kenai Association of Realtors asked each of us to support this application. to rezone the lot across the Kenai 5put Highway from Kenai Central High School I have reviewed Dr. Wortham's plans for the p•^-`pert` snd I agroe with. your September i 0, 2008 Staff Report supporting his request. His plan conforms with the City of Kenai Comprehensive Plan and the Zoning Code. The City's current landscaping requirements will provide adequate separation from adjacent ~csidentiai properties. I support your recommendation for approval. Sin rely, i Kazen Carson Associate Broker PAGE 02/02 Carol Freas From: P. Falkenberg [pet_rainbow@yahoo.coml Sent:. Tuesday, December 02, 2008 11:44 AM To: Bob Malloy; Hal Smalley; Pat Porter; Joe Moore; Rick Ross; Mike Boyle; Barry Eldridge; Carol Freas Subject: Re: Papa Joe's Re-Zone Madam Mayor and City Council.: I will be at the city council meeting on December 3, 2008, but I would like my concerns noted on the matter of the following proposed rezoning. I would like to speak personally with each of you, but my schedule and time may not permit it. I am currently surveying the neighborhood and collecting signatures on a petition denying Dr. Worthams request to rezone Ti°act A, Papa Joe's Subdivision, Chumley Replat fiom Rural Residential I (RRI) to Limited Commercial (LC). Most of the neighbors, I have spoken with are in opposition to a change in zoning. Neighbors have met with Dr. Wortham and I have expressed my support for his office, but not for there zone. That would be unnecessary for the achievement of his goal for one professional. building. The property directly across fiom this tract on Cinderella has been owned for thirty plus years by my family.. (EZ Management) We own the white duplex(303-305) ,orange duplex (307-309 } and small white rental house on the corner (403) A small village of professional buildings would certainly have a t~°affic impact on these rentals, our existing roads and the rest of the neighborhood. We have left the timber on om- property and i°efi•ained from. further development for the very reason of privacy. (fur rentals are never empty because of the area and proximity of the Middle and High Schools. The butcher of all the timber on that property left our rentals ~~~ide open and created a dust bowl. Mr. Chumley was responsible for that mess and he doesn't live in our area. Mr°. Chumley Iras held this community hostage for many years by trying to sett this tract as commercial property. I know for a fact that other neighbors and my father, Red McCollum offered to buy it, The asking price was way out of line. Whatever Dr. Wortham paid for the property should not be considered against the millions of dollars that this neighborhood has invested u1 developing property, putting in water, sewer, etc with the assurance of RRI zoning. I trust that you will consider voting not to change the special zoning requested by this community for our protection. Dr. Wortham can prove his comrnitmcnt to this neighborhood by accepting a Conditional Use Permit. We seek to maintain our peaceful homes for our many generations of families. This RR1 Zoning is a matter of trust with the city of Kenai a.nd our contract with you should not be broken. My request is that you will postpone your vote at the December 3, 2008 meeting. Marry property owners are away for the holiday season and. could not be notified. The neighbors would also like further dialog with Dr. Wortham. r Jeffrey M. Twait 1808 Julie Anna Drive Kenai, Ak. 99611 December 3, 2008 Marilyn, I wanted to write a brief letter in light of the rumblings I've heard over the past week regarding the rezone of Tract A, Papa Joe's Subdivision Chumley Replat from RRl to LC. As you are aware, I was out of town for both of the meetings in which testimony was given regarding this. I have read the minutes from the first meeting in September and have sifted through the Comprehensive Plan and the Zoning Code. Having spent a great deal of time with fellow commissioners and yourself in developing a Limited Commercial Zone it is my opinion that this is the best zone for the above mentioned property. I know that neighbors in the area are reluctant for change and it is our job as a Planning and Zoning Commission to weigh all the factors and allow responsible development and growth in our community as long as it is in harmony with the guidelines that we must use to make such decisions. I feel that Dr. Wortham has taken the proper steps and hired the proper professionals to assure the community that his investment in this property will not only improve the aesthetics as we all drive by but also be an asset to the entire area. That being said, had I been available at the last meeting it would have been my vote to vote in favor of the rezone. Please forward this on to the proper body for consideration if you feel it appropriate. Sincerely t, ~pFK ~, U~`'" F Planning and Zoning Chair G~~Received "~ 6EC '~ 20U8 ', Item E-3, Ordinance No. 2362-2008 -Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa doe's Subdivision, Chumley Replat from Rural Residential 1 (RRl} to Limited Commercial (LC) Submitted by Council Member Molloy for 12-03-08 Council Meeting The following documents are relevant to the discussion on Item E-3 and are submitted: City ofKenai Ordinance No. 2145-2006, including Attachments A and B. r r SUBSTITUTE Suggested by: Planning && Zonizxg Commission CITY GF SdAI IF,N~E Id®, 2145-~®®6 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI; ALASKA; AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING 53.85 ACRES. LOCATED ALONG THE KENAI SPUR HIGHWAY AT ABOUT MILE 6 FROM RURAL RESIDENTIAL (RR) AND GENERAL COMMERCIAL (CG) TO LIMITED COMMERCIAL (L'C). WHEREAS, on July 27, 2905 the Planning and Zoning Commission held a public hearing on a request from a property owner to rezone propertglocated along the Kenai Spur Highway from Rural Residential (RR) to General Commercial (CG) to allow commercial development of the property; and, WHEREAS, the rezone was denied by the Planning and Zoning Commission and appeaked to the Board of Adjustment; .and, WHEREAS, the Board of'Adjustment held a hearing on the appeal and on October 7, 2005 remanded the decision to the Planning and Zoning Commission to consider reviewing the area slang the Kenai Spur Highway for possible rezoning to the Limited Commercial Zone (LC); and, WHEREAS, the Planning and Zoning Commission held public hearings on the Limited Commercial Zone proposal on January 31 and January 25, 2446 and received public testimony; and, WHEREAS, the area to be rezoned is 53.$5 aares and meets the size requirements of KMC I4.26.274; and, WHEREAS, the area to be rezoned includes parcels zoned both Rural Residential (RR) and General Commercial (CG); and, WHEREAS, the Limited Commercial Zone (LC) provides a transition area between commercial and residential districts, allowing law to medium volume business, mixed residential and other compatible uses; and, WHEREAS, increased traffic along the Kenai Spur Highway has limited the residential development in the area to be rezoned; and, r WHEREAS, limiting development along the highway to solely residential may result in vacant and run-down homes slang the highway; and, WHEREAS, the Comprehensive Plan recommends zoning suitable for all land uses and to prepare criteria and standards under which compatible mixed uses are allowed to ensure that the uses are oompatible with surrounding uses; and, Ordinance No. 21<FS-2006 Page 2 of 2 WHEREAS, the Limited Commercial Zone {LC} 211aws compatible mixed uses with specific development criteria. for separate uses; and, WHEREAS, the proposed rezone will provide for tow-impact commercial development along the highway while not restricting residential uses; and, WHEREAS, on January 26, 2005 the Commission recommended that the Council rezone the properties shown. on Attachment "A" from Rural Residential (RR) and General Commercial (CG) Zone to the Limited Commercial (LC) 7,one. NC~W, THEREFORE, BE IT ORDAINED BY TI-IE COUNCIL OF THE CITY OF 1[ENAI, ALASZ{A, that the official KenaiLontng map is amended by rezoning the properties shown on Attachment "A" from. Rural Residential (RR) and General Commercial (CGJ to Limited Commercial (LC). PASSED BY THE COUNCIL OF TT-IE CITY OF KENAI, ALASKA, this 15~!~ day of February, 2006 _~~ PAT PORTER, MAYOR ATTES'T': ~ ,per ~~~'~ =~'t ` t Carol L. Freas, City Clerk Introduced: February 1, 2006 Adopted: February 15, 2006 P;ffeetive: March 15, 1006 ~~~~-~ "! L~~i~~d ~r~rr~~r~~~ ~~~~~ February 9, 2008 Attachrnartt A d E V ~~ Ua ~K ~K ~U UU UU UU U U UU U UU U LSC C~ KU (OJ U COJ UCJ K M U ~ U m m M N ~ ^ N o Y O m O O g O p O ^ Y 0 ~~ YY 3o h- ~o m a m ~ °~ ~ mm ~~ cDY ~o YY oo '9 ~ aa Y a m NM m MY J f • h O O 4- m W m J m } - m N Up J Y Q UZ O~ N 00 JJ ' U 0 bJ IQ! 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'~ Q T t N= ~ W W N S N 3 N ~ N +.y N ~ `a Y Y . N N a~ M ,E, ~m V ~ w~ m'E 'E '_ r ~ ~ N N ~ ' E N Q Q I~ F ~ M' _ 0 o tY a and c 'v1UM . 'n N ~S OD I- e F^ ~ I- .SE hF- E E M1= x z ~ xx z x ~ . :~ p 53 . c~ ~ ~ x °a ~a ~N W YA VJ . yy NN , Vi . N U3 GJ Np N R C~ ~ N C C ~ {{Q~ ~ C C N a ~ ~ 'N C •N •IE F C ••~ •~ ~ YS' ym c W XY ~ .~Y 'p3 o er Y Y '" mt w ~ Y r` . XY °mm~ o Y us ~ t O Y Nl7 ~ ! ~Yl p ~1n Y i p y ln- yb~ y Y~J tt'~ N1~ ~J t 1~~ ~uON ' N p O~ m 0 NC 00 OtO p N o o pC V spy, Cpl V N t p ~p ~ ~ (rnsf ~g pp pp~~p~ p ~ p N ~ pp ° 0 tl' C V ti~ `f d' C C o w OI aY? i OI K K m c v E ~S 9 .~.dr~;yy%o~ On November 12, 2t}0 the Tract A, Papa .Tae's Satbdivision - Chumley repEat request for rezone came before the Oily oi• Kenai .Planning 8cLoasitag Commission of which l am a member, foa• a second ticrte. When this issue first came up,1 wanted to hear bothsides of the argunaetat before coining to any conclusion. Initially, the adjacent neighbors testi . wea°e not really opposed ~ Zlr°. ~'o 's off ce proposal but to the re-zone; however by I+iaveanber, those same individuals opposed the building plan andrezone- lifter much thought, l had planned to vote for tlae rezone, beat iaa the end, what swayed me to vote against it at the last minute was when a neighbor stated. that they didn't care if 5 tri pleases, without any landscaping plans or city oversite were lzult on that lot. 1 voted against the aezone more fo-say amine; ifthaf's what you really want"', but also because 1 knew it would go before the s;auncil far a final. determination, so it was a way for e to weenie out in the face of their opposition. That was not the correct way for me to cast a vats, That being said,l realty do applaud & :understand the adjacentneighbors concerns and protectiveness regarding possible impacts to their neighborhood, however, t must say I don't agree with their analysis, I3r, ~,'oithams prs~perty is currently a treeless, hi-way frontage eye- sore and he has aso plans to build his home there. Even if he weaeaa't the o~arner, l dan't believe this lot is conducive to any owner building a residence there. There are a few residential hoanes that front the Spur Iiiwy, but l'm not aware of any NEB hams constnactian along this corridor. Options for I3r ~Tdor°t6znp don't include leaviaxg it alit is, as he obviously ~;varats to recoup his investment. A eaaaditional use permit simply doesn't provide Dr. ~r'oatham any long term assurances and puts him in an awk~Aard and unreasonable position as it relates tm his investment plans for this lot. 13r. ortham's request to .rezone to Limited Commercial would :allow the city to have some control and. ovea~ite regarding his plans. ~"is proposed, his plan is viable; realistic; la~aa impact and it takes into consideration a "residential" look to his proposed buildings~ Should the rezone fail, in my opinion, the type of construction mast conducive to this cleared ?°tatn t residential lot is pmbabl~° raaultple apartments ~v'uich v~iil not eaalaatac.e the city and think the neighbors would: evezatua ly deplore them,l3U'1; Dr. "t~artham could get lais money out of the property. tinder the Dural Residential mane, up to b iii plexes could be built on this lot and neither the neighbors nor the city would have a say as to their design, landscape or buffer. Lawe's and V~almart are here and with them, a need for more aparhnertts to aecommodato employee's respective wages, and with dais lot's close proximity to stores and. schools, apartments are a viable option far any owner to pursue without the hassl€; of a rezone. That scenario isn't .meant. as ascare-tactic, it's only reasonable to expect 1)r. Vb'ortham or anyone else to attempt to recover theirinvestment, and if 13r. ortha can't build his office ricers as proposed, them he or someone else must lock atthe location, current coaaditian, zoning ~ the current economic circaunstances to dictate what will provide financial recovery. lvlarilyaa 1£epsehulls report indicates that this proposed rezone falls within the comprehensive plan and code. This highway corridor is noted in the comprehensive plan aloaag with discussion of low 6pact transitions between residential and commercial.,. This proposed plan and rezone request appears to be a good example of why the city added Limited OommerciaT as a means of transitioning properties and exetnptifes what a Lianted Commercial bane should look tike. Z~r. 9a'ortareas pro overall plan is concep ; svtaile leis utitiai plums are aunp[y to Isuild his own single office building. ' e °enai is getting Loves ~ titv"atusart, there is an economic reality these days - ,. cat~it a r€:cession -and that tn~y sty cnie t2is cons~ptuat e~pansixsn plans for additional professional offices for years to came. 1 know and t do appr~eiate thatyou weigh s ' is coneeans eanaestly. t carzfulty considered the validity aa3d aesthetics of the proposed. pta~b as well as inn oftrsffic, nasez lighting; clientele, hours of operation-any conceivable negative :impact to the neighborhood thai [ could think of, buf 1 can't realty pied any. The adjacent neighbors seerr€ wilting to defeat an overseen, Isnowa', ,~i in my opinion, aesthetically pleasing plan, for ~, ver other const€trction possibilities. allowed .under Mural Residential zoning, wh°sch dan't believe is a gamble rte city should tells. The council is z;harged with compliance to the cede and comprehensive flan; tcs review tlae validity and impacts of proposals, but also to have the cities best interest to consider as a whole. It is my opinion that the cuarent proposed plan. Wrests the criteria to rezone and'that it will ultimately improve the lock of the citgz for alt residents and visitors alike that drive through town to strop e~ enjoy what the (:ity of l~enai tras to affer. chile 1 would like to support adjacent residents, I feel the aauneil mast consider passage of this rezone request as other options are simply not desirable for t?r ~T?ortham, for the City of Kenai and in my trutntsle opinion, the adjacentneighbors. /v - ~ i iy emrtil ~e~ember 3, 200 E~EA E , P EPA E ANP ES IiPTE 7'F/ UGM Tf~E ~ B2T/!/E EFL' RTC P N~ E ~ P~ ESIE9V7'S 17"1r F I~CEtm11 1JIVIlC~~L E (!C ) The Kenai Municipal Cade (KMC) provides land management regulation for the City of Kenai. It is a binding document that legislates how applications, such as the one presented by Franklin T. & Kristie L. Wortham (the applicant) are to be evaluated. Based on the KMC we take objection to the "Analysis" and "Recommendations" presented in the September 10, 2008, Staff Report, the erroneous "whereas" statements made as fact in the Ordinance No. 2362-2008 and the Planning Administrators Memo to the City Manager dated November 19, 2008, due to the following reasons. 1. These staff-generated documents failed to consider alt applicable codes in drawing their conclusion. The report focused fully on the Limited Commercial Zone language of the code to justify the recommendation and did not include undeniably pertinent and non-supportive language from the Rural Residential Zone language of the code wlvch is the exisring, prevailing zone for this parcel. 2. The Liueited i',ommercial Zane (LC Zone) language of the code does not, in fact, provide the support for this application that is acclaimed in both the staff report and the ordinance. a. KMC 14.20.115 hC Zone states "Intent: The LC Zone is established to provide trausiti®u ax°eas between commercial and residential districts by allowing low to medium volume business, mixed residential and other compatible uses which complement and do not materially detract form the uses allowed with adjacent districts." The parcel in question is bordered on three sides by Rural Residential 1 (I2R1) developed properties and on one side by Education Zone. There are no nearby commercial properties to which it is transitioning. Therefore, it is capricious and misleading to claim it as a "transition" area. b.'I'he staff report states that "The proposed development will improve the property providing for limited commercial development. The landscaping requirements will [e]nsure commercial use is separated from the adjacent residential properties." Staff hereby suggests that KMC 14.25 "I,andsca inir/Site Plau Regulations" in some mamler solves the incompatibility of spot zoning a commercial parcel in the middle of an education and residential. parcels by offering a buffer of trees or shrubs. Verbal testimony implied this would be an additional level of protection afforded the neighbors should the parcel be rezoned. i. First, this statement is meaningless. Any degree of development technically "improves" a property, including single- and multifamily homes and churches. However, if one was to interpret improvement qualitatively, this statement is inherently bias hi that it claims the property will "improve" by placing an incompatible and non-harmonious commercial. structure or structures smack-dab in the center of a residential and eduoatimial zone. ii. Second, according to the KMC many types of development with the exception of single family, duplexes and churches would be required to submit for approval a landseapelsite plan, anyway. (KMC 14.25.020; 14.20.020; 14.20.320} The implication, that by rezonhxg this property, the neighborhood would enjoy an extra level of controIIed development otherwise unrealized is inaccurate for many of the potential uses other than LC Zone. iii. Third, the landscanin~ Bode does not "insure" or "ensure" separation of comrriercial from adjacent residential properties. It only requires a plan that has very minimal. requirements in which `'`buffer" is not defined. The buffer therefore could conceivably be very narrow. There are iio visual requirements of the buffer that would keep neighbors from actually seeing the development. Typically, the types of "buffers" allowed by the City are just brass or rock stl'lp5 with a tree or two along the street. They are actually more ljke setback areas than a real buffer purposefully designed to impair line of site as trees or bushes. c. Unfortunately even if the incampatibility of commercial properties could be hidden by trees and foliage, there is still a huge issue of increased non-neighborhood trafthc such an enterprise would generate. i. The conceptual plan of the applicant conveys two additional avenues of ingress and egress tb Cinderella Street. The increase of commercial traffic on Cinderella Street would be atuantitatively increased and gnalitatively unknown. ii. The code itself acknowledges that traffic generated by clinics, such as the one being proposed in the application for a dental practice, requires 62.5% more parking spaces than a similar sized professional building would require. 1t seems logical to deduce based on this requirement that clinics ~encratc a much higher volume of traffic than professional offices - both of which are substantially higher than routine residential traffic. iii. This increased traffic flow and congestion is a particularly troublesome detail in light of the roximi of this parcel to tevo maior schools with combined student body populations of 916 students. These issues are not new to this Council relative to the foot traffic generated by these schoals. The timeline provided by the Council does not allow the neighborhood to fully develop its defense and conduct a traffic study as was done in the 1498 Appeal, but a review oPThe MAPS 1998 Appeal PZ98-12 document demonstrates the vulnerability of this pedestrian and traffic hub. Please see. Attaehntent - A. These pedestrians are particularly vulnerable dire to their young age and the hazardous five-lane street grossing corridors in which there are not enough crossings, Chet' are not within reasonable proxiinity of the students, the timing allowed for crossing is inadequate and the intense concentration of both pedestrian and vehicle traffic occurs at special events and at two peak times achy -the start and close of each school day. Although it may not be obvious to the Council, the exit to the high school is directly across from this parcel and the entrance a few seconds' drive away. Due to the youthful natw~e of drivers at the high school, a higher number of inexperienced drivers use this entrance and exit more than any other single driveway system in the City of Kenai and do so at a time when pedestrian traffic is at its highest. Undoubtedly the best interest of the entire community was being considered when this parcel was zoned the most restrictive available zone - RRl. The safety risk a commercial spot zone would afford is absolutely unconscionable. Qne more accident would he one too many. d. The first rezone to a LC Zone was fundamentally dissimilar than what is being proposed in the current rezone application. The first rezone along the Kenai Spur 1-Ighway started with over 50 acres ilrat was originally mixed zones of General Conunercial and Rural Residential. Several lots were involved and there was a lengthy public process with lots of public notice. Although the intent of tlae City Planner and Manager seem to be to apply this former rezone rationale to all the lots along the highway as conveyed in the staff report of 9/10/0$, only people within 300 feet were provided notice of this rezone application and, then. only for the Commission meeting, not the Council meeting. 2 Conversely this application it to rezone a single parcel from the most restrictive residential zoning to the far less restrictive I,C zone. Furthermore, the Rural Residential ~I21i~ language of the code does not provide the support for this application that is acclaimed in both the staff report and file ordinance. Rural. Residential 1 (RRl) is the current and appheable zone that applies to this property and the regulation found in this section of the code should be factored into any decision regarding this application. a. Tine unique history of this neighborhood is a mattea• of record. Its interaction with both the Kenai City Council and Planning & Zoning Commission demonstrates a highly collaborative effort of the majority of property owners to preserve and maintain the low density residential character of this neighborhood. See AttaiChrttent ~ ~ The R R l designation came at a cost to the residence based on their proactive stance trwenty-three veers ago -the "1985 Deal" behveen the neighbors of "MAPS" (McCollum, E41iak, Princess} and the City of Kenai. The~nro n~onents of the 195 good faith agreement with the City of Kenai made their intentions clear from the beginning.. "For the price of the assessment sye want to have a say in how it is developed in the fntnre. At the present time its RR ixi character has 2 potentials. l.f we do net rezone it then 1 see apatchwork type of development, almost a Spenard-like type of development with people who want nice residential lots being slowly squeezed out or chased away ...1 understand. the City Comprehensive Plan calls for such an area [low density residential] in the City. Qne with larger lots so that people can actually live close into town without having to live on smaller lots. (Board ofAdjustment Packet, BA-56, Rick Baldwin) "The 1985 Deal" as it has come to be called and our approximate $300,000 uflii6es assessment investment (not factored into real or current dollar values) was an agreement of good faith whereby the city agreed to consider the input of the current land owners when making decisions of impact and the owners agreed to pay to the city what was then a substantial assessment for improvements as well as makvng individual improvements and upgrades to their ovm proper±ies. b. The RR Zone is intended "to provide for low density residential development in outlying and rural areas in a form. which creates a stable and attractive residential environment." Spot zoning commercial parcels in the middle of residential neighborhoods does not stabilize the residential environment of the area and in fact would create au "endangered neighborhood." c. The RR Zane is "to prohibit uses which would: a) violate tine residential character of the environment; b) generate heavy traffic in predominately residential areas." Principal presented uses for this parcel according to the KMC Land Use Tables are: t) One Family Dwelling; 2)Two/Three family Dwelling; 3)Churches; ~}Essential Services; and 5) Off Street Parking. The common characteristics of these principal permitted uses include: principal activities oceruring at each of these uses is non-commercial, the vehicular and pedestrian traffic is often known or knowable to the principal occupants, generated traffic in and out of permitted use az•eas is generally low density with the exception of Churches at strategic non-imposing times of The week and day, ar~d the character of the neighborhood is enhanced by the familiarity factor as neighbors watch out for and help each other out. Commercial enterprises, such as professional offices, do not share any of these common characteristics. Their principal activity is commmercial, the vehicular and pedestrian traffic in and out of the businesses will be primarily unknown to the principal occupants, generated traffic in and out will likely be of a far higher density, and the character of the neighborhood will be eroded as an unfamiliar public files in and out of the area. Professional offices are not similar to those principal uses permitted in RRl zone. Therefore, a LC rezone would both violate the residential character of the environment and generate heavy traffic in predominately residential areas. d. The argument neighborhood residents have repeatedly heard from both staff and Council members that "nothing else can be done" with this particular parcel is absolutely false and fui~Yher indicates a preconceived bias on the part of these officials. Not surprisingly this is a bias that has been propagated by the former owner in his endeavor to convert a residential investment info a commercial windfall profit. Here is a list of hieltly viable alternative uses: i. Single-family dwellings. The Kenai Comprehensive Plan (KCP) explains tlae city's homebuyers prefer larger residential lofts. (KCP Page 34) To claim that no one would want to live along the Kenai Spur Idighway is ludicrous. One only has to drive from Prinoess to Swires to see this is not true. Furthermore, proximity to the schools makes this a very desirable location for families with children. At#aehgtaen# ~ C roughly illustrates a potential site plan and layouts for single family development. The original plat of the former owner was at one time platted for seven RRI lots. ii. Duplexes and/or triplexes. We are a neighborhood that values both our rental properties and our renters. The home owners and renters have successfully co-existed. in this neighborhood for several decades. This property is bordered by townhouses on one side, duplexes on another, a single family on the one side with a triplex one block away. iii. A church. We currently have two churches in our neighborhood and would welcome another. iv. Issential Services v: Sell a portion or all the land to the neighbors. "The neighbors don't need this additional land. The collective investment of the fast d2 awners tc sign the petition alone is akeady assessed at over 4.1 million dollars. However, residents are willing to make an investment to maintain the integrity of the residential character. vi. If the city is intent on providing the applicant's dental office a place to operate, they could do a land swap to one of their commercially zoned parcels. The debated property could then be sold at RRl market values, converted to a city park or perhaps explore assisted living home options. e. To fairly evaluate the requested rezone the entire code must be reviewed. In considering the entire code, the guideline provided in KMC 14.24.020 [e] states "Whenever there is a conflict between this chapter and other ordinances pertaining to the regulation of property within the City, the most restrictive regulation shall apply." In adherence to the code the most restrictive regulation must be a~pxrlied to the assessment of this rezone application leading to its rejection. This parcel is zoned the more restricted RRl, and as outlined in the KMC and the Kenai Comprehensive Plan. should remain such. iC~lm1~41 ~~IE~IV PEA (MC) Just as the KMC provides for the regulatory basis of land management, the Kenai Comprehensive Plan (KCP) provides for the policy basis of land management. Although not law per se, "Kenai`s land use plan and related development policies are adecision-making tool that provides a "blueprint" for growth and change in the eommunity...The comprehensive plan does provide the public policy basis for defining the zoning districts and related development standards that guide what happens on the land." (KCP, Page 26) The Alaska Statute (AS 29.40.030} and the Alaska Planning Commission Handbook further mandate and support this function of comprehensive plans. The handbook states "Plamxing can protect property and property values by separating a potentially harmful or dzs~a reeable land use from surrounding residential and commercial uses and by helping to protect stable neighborhoods." (Handbook, page 7) Based on the KCP we take objection to the staff prepared documents referenced above and included in the Comzcll's packet. 1. The Proposed Land Use Plan and subsequent Mans 10 and 11 complement the written policy and are to be used with the development policies to guide growth. The Maps were updated in June of 2008. As the maps illustrate Kenai Izas a well defined, long-term plan. for future growth. The terms used for the Land Use Map are different than the terms for the actual zones. Map 10 shows the areas where "Neighborhood Residential" and "Neighborhood Commercial" are planned. See ~6$$a~ht'tteett ~. The section of the arterial road system being reviewed for rezone is not planned "Neighborhood Commercial," nor should it be. The Maps illustrate that the applicant's parcel clearly is planned for "l'iTeiahborhood Residential" and not for "1`deighborhood Commercial," while in fact other areas of the arterial road system are planned for "Neighborhood Commercial." 2. "T"he broad purpose of the land use plan is to ensure an adequate supply of land that is: m suitable for development; • in appropriate ownership status; m appropriately zoned; with needed utilities and services; • for future private and public uses; and • at desirable locations." (rage 9) a. Aa;ording to the KCP "the gross supply of privately owned developable, appropriately zoned sites appears more than adequate for future development needs ...Comparison of estimated demand for residential, commercial, and industrial land uses to the existing zoning status of vacant land suggests that Kenai has an adequate supply of appropriately zoned parcels for future demands." (KCP Page 14 including Table 5) b. The plan establishes a standard of suitability for development. Rezoning a residential parcel to commercial when it is surrounded on three sides by residential development and on the fourth side by education i,n an arterial corridor that is designated the most restrictive zone defies the definition. of suitability. Bxpanding the scope of review to the entire highway frontage from the Walmart to Swires Road, on both sides of the highway, is some form of residential zone, except for one small conxxnercial lot (not near this proposal) and the twa educational parcels (KCHS, KMS). T`he proposed rezone is a commercial spot zane, plunked down into the noddle of a large residential zoning district. e. The appropriateness of the ownership status is demonstrated by the number of owners who have purchased mare than one parcel in this area. At least three current owners and one former have built and/or lived in two separate dwellings within this neighborhood. Private homeowners and landlords appear to be the predominant ownership group. d. The plan establishes appropriate zoning as a standard. Aec;ording to the KCP "the gross supply of privately owned developable, appropriately zoned sites appears snore than adequate for future developmert needs. (KCP Page 14) It further states that "One of the goals of coning is to achieve stable, livable residential neiehborhoods by separathlg them from incompatible uses." (Page 37) Rezoning this lot will cut into our neighborhood by 50% of the land mass from north to south. It will cut us in half east to west. That is a huge dent -- significant enough to have destabilizing impaet on the continuing life of the entire RRl zone, hence, the "endangered neighborhood." e. The plan establishes desirable locations as a standard for development. It is entirely desirable for residential development to be located in the vicinity of other residences and schools. It is entirely desirable for a dental clinic to be located in the city center near other health care providers. It is not desirable to open up a residential community to those potential uses this LC rezone would permit including restaurants, art studios, barbers and beauticians, dry cleaners, fitness centers, photographic studios, tanning salons, massage therapists, professional offices, to name a few. rtcsl i3 a "~aLlta~~ wlt,4t ~ ~®tst - ~ t~ttfa ~ ~ttcte `• 3. Section IV of the KCP defines the "Framework for the Future" of Kenai. The first planning topic revolves around the city center and millennium square. (Page 26) "Citizens generally agree that creating a strong, attractive, busy city center is a highly desirable planning goat " a. The city leadership serves as guardian of our community's best interest and caretaker of the greater public purpose and good. Policy decisions that influence market variables are a form of market intervention and government control It is cormnonly understood that supply and demand are the variables that dictate market direction. To increase the "supply" of commercial properties in the marketplace that already has an adequate supply of land to accommodate new commercial development is unwarranted ~oaernment intervention. Obviously, increasing the supply impacts the supply and demand relationship. In this instance approving a rezone will intervene with the marketplace to pull businesses away from the city center and result in "sprawl." Sprawl is not good for a vital city center. Such a move would be in direct opposition to the KCP. By not approving this rezone the city avoids tampering with these market variables and the natural course of supply arxd demand will concentrate commercial enterprises in the city center. We already see this occurring with our health care services accomplishing the goals of the plan. 6 " ~ ~ ® the 4 ® ~ iPt ~® it . (KCP page 25) b. Another impact of this rezone would be that one land owner would benefit at a cost to all other property owners who have previously invested to build. this community. No greater public interest would be sowed. by granting this rezone. The granting of the rezone would further influence the supply and. demand by providing a single property owner advantages that are not available to other existing owners. The KCP states, "This [to permit uses that otherwise might not fit within the intent of the underlying zoning] approach may address the immediate need of individual applicants. Ilowever, over time, it can compromise the basic purpose of zoning and. public confidence in zoning." (Page 15) c. The ~oa1 as described in the KCP is to revitalise city center by promoting residential and commercial development in this area, not by promoting commercial development in residential area outside of the city center. To rezone this parcel undermines both the goals of revitalizing the city center and the goals of protecting the harmony and character of residential environments in RRl, and promotes commercial sprawl. 4. Another planning tapic addressed in the "Framewark for the Future" of Kenai focuses on Residential hteigh&aorhood 13evelapment 1Policies (R). (Page 35) a. The KCP states the city is to "Promote the siting and design of land uses that are in harmony and scale with surrounding uses." Specifically to "Enforce existirt~ code requirements and address zoning violations." (Page 35) Again, the point is being made that the Council should not change the code in order to place commercial development in a residential area, but rather that you enforce the existing code. b. The KCP further states that the city is to "Enconra¢e a variety of neighborhoods within the city that offer a choice of urban, suburban, and semi-rural lifestyles." Specifically to "Establish standards in the land use regulation code for various housing types and honsin~ densities." (Page 35) From the zoning map it appears that there are only two RRl neighborhoods in Kenai. A rezone would essentially change the character of this residential neighborhood from the most reshictive zone to a more liberal zone and therehy endanger one of the only two RRI neighborhoods, thus diminishing the variety the city is committed to encourage. c. R ezonint this parcel would contradict the Residential Neighborhood Development Policies outlined in the KCP and would result in the following detriments to the community. i. If a single spot zone is approved, residential districts will never again be stable and safe from the impact of adjacent commercial or industrial uses. ii. The City would essentially be changing the policy direction of the KCP without adequate public notice and disregarding the 2003 KCP rewrite, annual reviews and the 2008 Maps I O and 11 updates. iii. Finally, establishing this dangerous precedent would create an unstoppable domino effect. 5. 'I"he "Framework fox the Future" of Kenai also addresses Commercial Land Use I3evelaprnent Policies (CM). (Page 3~ a. The KCP states, "Some residents complain about commercial "strip development" along the Kenai Spur I$ighway. ®n analysis, these concerns seem aimed mainly at the appearance .... And to a lesser extent, the dispersed character of development." (Page 36, 37} First, to address the issue of appearance, the staff recommends approving the application and implies that dressing up LC Zones through landscaping and building placement is the method that makes spot zoning acceptable. As a side bar, it should be noted that the applicant's conceptual plan, which consists of five buildings, each exceed the maximum footprint allowed for Limited Commercial zoning. b. The other issue of concern expressed in die KCP (Pages 37) is the "dispersed character of development" along the Kenai Spur Highway. This rezone plainly proliferates the problem instead of controlling and/or reducing die problem. a The platr suggests, in the very next sentence that "These deficiencies [appearance and dispersed character along the highway] can largely be addressed through development and design standards that reflect the community consensus, and by provision of adequate, suitably Located commercial sites." (Page 37) We proactively demonstrated eommtiulity consensus in 19$5. We overwhelmingly demonstrated. community consensus in 1998. Again, on the ten year anniversary of the Appeal of PZ98-12, we still have community consensus. As of December 3, 2008, at 3 p.m., 42 of the 43 residents surveyed oppose this ordinance to rezone. To ignore this history and clarity of consensus in combination with the fact that there is adequate and suitably zoned land for dse desired usage available through the year 2020, (Page 14) would be a capricious break from the KCP community consensus policy standard. d. The most conclusive paragraph in the plan that pertains to the consideration of this rezone states: "Another issue of neighborhood concern is commercial development near residential areas as conditional uses or through rezones, particularly along the Kenai Spur Highway. :3r~e of the goals of zoning is to achieve stable, livable, residential neighborhoods by separathrg them from incompatible uses. This is best achieved by zoning sufficient suitably located land for all expected uses, then adhering to the zoning plan." (Page 37) ~aeit~bl~ Leseatecl c®erzas~eteial 31t~.9 - 4t ~®e~ ~sai~t arac~ it e~ raot u.~ s This furdamental KCP policy is crucially and glaringly pertinent as it describes exactly the scenario being considered, The unreasonable choice of the staff to arbitrarily ignore this policy in their eagerness to lobby in favor of the rezone on the applicant's behalf demonstrates total disregard for a fair and unprejudiced due process. Furthermore, staff has assumed the burden of proof that is rightfully assigned to the applicant which places the neighbors in the undesirable position of bearing a burden of defense in an unreasonable time frame. The staff docwnents have not provided the Commissioners and Council members a comprehensive and objective, unbiased rendering of the issue at hand. to the l F T 1V I F1 The 1996 Supreme Court of Alaska case of Griswold v. City of Horner establish legal precedent for "spot zoning" and subsequenfly contain valuable criteria that Council members must consider to apply legally sound decision making. The citizen taxpayers of the City of Kenai have elected the Council to protect the best interest of our community. The legal implications of the application and the subsequent litigation that would result from a favorable vote, are substantive and judicious variables to factor into the Councils' consideration. The nature of the case, combined with the Councils' history of repeatedly attempting code contrary and plan prohibited usages along the arterial strip of the Kenai Spur Highway in multiple neighborhoods, truly constitute a "public interest" scenario in which it is highly likely that legal fees will be charged. to the City at the expense of all taxpayers and to the detriment of other valuable potential uses. The lessons learned from Griswold v. City of Homer teach us that a "SPOT" by any other came is still a "spot" and the following factors must be weighed with the utmost intention. 1. First, we would like to remind and ensure that the Council understands that the ~etion they take regarding this application is legislative, and the legal consequences of their decision constitutes a very real and potentially present danger to the citizens of Kenai. (Cabana v Kenai Peninsula Borough [4127/0 i ] "Because small-scale rezonings are treated as legislative decisions under Alaska law ...") 2. The second lesson extracted from the Griswold v. City of Homer case is that "Not all small-parcel zoning is illegal, but spot zoning is per se illegal; "spot zone" is zoning decision which affects small parcel of land and which is found to be arbitrary exercise of legislative power." (Page 5, Section [7]) Although the neighbors of this area are not lawyers, from a layperson's perspective an analysis of the criteria outlined in Griswold v. City of Homer makes it quite evident that approval of this application would comprise a classic spot zone scenario h further stands to reason that should this decision be deemed spot zoning by the superior court of Alaska, the Council would have made an illegal decision. 3. The third lesson extracted from tlrc Griswold v. City of Homer case is that the "Supreme Court invalidates zoning decisions which are result of ~sreludece, arlsitrarw decision making, or improper motives." (Page 4, Section [S]) The staff documentation surrounding this application clearly expresses a foundational prejudice and displays an arbitrary decision making process when measured by the City of Kenai regulatory document, the KMC and by the City of Kenai policy document, doe KCP. Although motives are more difficult to prove in a court of law, there appears to be reasonable evidence that the staff of Kenai has assumed both the burden of proof for the applicant, and a lobbying role in favor of the application for unknown reasons that appear to have a foundation in the misled notion of staff and Council alike that "there is nothing else that can be done with this property." The neighbors have successfully countered this fallacy elsewhere in this document. 4. The fourth lesson extracted from the Griswold v. City of Homer case is that "In detern2ining whether amendment to zoning ordinance constitutes spot zoning, court considers cansisteney off amendment with size of area rezoned: ' (Page 5, Section [8]) This document provides, at the very Least, a minimum gauge of reasonable doubt regarding consistency with all forrr of these criteria. 5. The fffth lesson extracted from the Griswold v. City of Homer case is that "C'onsisteney with comprehensive flan is one indication that zoning actipn challenges as "spot zoning" has rational basis 9 and is not arbitrary exercise of city's zoning power." (Page 6, Section [10]) The KCP is a critical tool to be fully utilized in the process of making this decision. In so doing this Council must conclude that sound policy dictates the rezone be rejected. 6. The sixth lesson extracted from the Griswold v. City of Homer case is that "Filling in vacant places, and increasing tax. base and employment of community are not automatically legitimate coning foals for the purposes of deciding whether particular zoiring actions constitutes improper spot zoning." (Page 7, Section (11]} The notion that "there is nothing else that can be done with this property" and that this parcel is now a "dust bowl" are irrelevant criteria on which to bast Council's deoision. It may be wise to take heed Co ttais Iega1 precedent that vacant land is a perfectly legitimate and sound alternative to Illegal "spot zoning." 7. The seventh lesson extracted from the Griswold v. City of Homer case is that "5rnatl-parcel zoning designed merely to benefit one owner constitutes unwarranted discriminatoon and arbitrary decision-making, wiles ordinance amendment is designed to achieve statutory objectives of city's own zoning scheme, even if purpose of change is to brn~g nonconforming use into conformance or allow it to expand." (Page 7, Section 12) The specialized consideration given to this particular owner (the applicant) through a favorable vote, and the outcome it would incite, are contrary to both the regulation of the KMC and the policy direction of the KCP to revitalize Kenai's city center, preserve and stabilize Kenai's residential sectors and promote commercial development in suitably zoned areas in adherence to the KCP. Arbitrarily rendering a favorable vote for this one particular applicant would he discriminatory and therefore illegal. 8. With intent to provide full disclosure to the Council the ei ht lesson extracted from the Griswold v. City of Homer case is that "Affected parcel cannot be too large per se to preclude f nding of spot zoning, nor can it be so small that it mandates finding of spat zoning." (Page 8, Section [l4]) The applicant's parcel is less than three acres. However, before one considers this a ray of light favoring the rezone, it is critical the Cowlcil review the discussion relative to t11is point. "We believe that the relationship between the size of reclassification and a finding of spot zoning is properly seen as symptomatic rather than casual and thus that the size of the area rezoned should net be considered more significant than other factors in determining whether spot zoning has occurred. A parcel cannot be too large per se to preclude a finding of spot zoning, nor can it be so small that it mandates a finding of spot zoning. Although Anderson notes that reclassifications of parcels under three acres are Hearty always ffonnd invalid, while reclassifications of parcels over thirteen acres are nearly always found valid. Id., as Zieler notes, the relative size of the parcel is invariably considered by courts ..: ' (Page 20, 3. Size of "rezoned" area [13] [l4}) tie urecL o L° , 116ett~q ®t®~arett wdtlz®tat slue ~toc~ m law:,,, „ ° /t tex eozt to t$e ®ea.2titutZ®n 9. The ninth lesson extracted from the Griswold v. City of Homer case is that "Similarly, a legislative body`s zoning decision violates substantive due process if it has no reasonable relationship to a legitimate govennnent pwpose" (Page 15, Section [5] [6]) Although the burden of demonstrating violated substantive due process is a heavy one, a decision to approve this rezone would seem quite arbitrary and capricious. It would require discounting the Planning Commission's advisory opposition vote, it would be 10 in transparent contradiction to the regulatory mandates of the K1VIC and the policy direction of the KCP and the one-sided documentation of the staff documents would' be a factor. Therefore, if the rezone would be approved there exists convincing argument regarding substantive due process. Frustrating procedural due process experiences the residents have had regarding this application include the denial for postponement to allow more time to prepare a response, the denial of city officials to allow inclusion of documentation from the neighbors in the Council meeting packet on a holiday week when conventional deadlines to submit documentation were skewed, the placement of this highly controversial issue on the consent agenda for its first reading. Additionally, it is the mrderstanding of the neighbors that an reasonable time frame and suitable format for a fair hearing or an opportunity to be heaid and defend against the proposed action will not occur- during the December 3, 2008, Kenai City Council meeting. See page 33 ofthe Alaska Planning Commission handbook for due process guidelines. 10. Although many more lessons can be extracted from this precedent-establishing case, the final lesson we bring to the attention of this Council is that the "i'arty cbailentin2 city ordinance hears burden of uroyine its invaladity." (Page 11, Section [24]) No property owner has a "right" to rezone; in fact, the opposite is true -the property owner has the burden of proving that the rezone meets the appropriate criteria. It is our fording that not only did the applicant not bear the burden of proof, the applicant appears to have been misinformed by city officials as to what could be anticipated in his pursuit of this rezone and the city assumed the burden of proof as demonstrated in the "Analysis" and "Recommendations" presented in the September T 0, 2008, Staff Report, the erroneously interpreted "whereas" statements made as fact in the Ordinance No. 2362-2009 and the memo dated November I9, 2008, from the Planning Administrator to the City Manager. 11 L I K~ Details have and are being discussed throughout this process as justification for this particular spot zone that are truly irrelevant to the decision and legitimately must be discounted from the decision making process. Please review At$aeh~rle~tt ~ ~. "It is role of elected representativesr~ther than courts to decide whether particular statute or ordinance is wise." (Cn-iswold Page 2, Section [2)) used on the lessons learned from Griswold v. City of Homer, we admonish the Council to wisely reject the application and aaoid an insidious precedent that would fundamentally undermine the regulatory and policy directives of the City. Zoning is a matter of pubic trust. It is intended to "create a stable, predictable setting for future investment." (KCP, Page 15). The Kenai Comprehensive Pla1z should provide reliable information about the City of Kenai and its development plans and policies that potential buyers will factor into their decisions regarding their Iand purchases. It can provide the assurance curent owners factor into their decisions regarding property improvements. The residents of this neighborhood have trusted and invested in the regulatory and paliey direction they collaboratively developed with the City of Kenai. Spot zoning this parts} would be an egregious breech of the public trust that each member of the Counci} is elected to uphold. 22 '~ ~" (Sourcee Appeal of ~~9~-12 - ~ornrr~iseion ~eeisiorr) ~ T~iFF@G Pfl~ffEii~5 7.1 Vatid Planning _issue ,.. , _ During the February 4, 7 998, Board of Adjustment Nearing the applicant's representative stated, '°... we feel a traffic problem, if it exists, is a traffic problem and not a properly development problem and we think we would like to respectfully suggest that traffic problems be addressed with traffic control items." (Board of Adjustment Nearing, Chumley/Chumley Appeal, February 4, 1998, Page 6} The residents of the neighboring lots respectfully disagree. The Planning Commissioner's Handbook (June 1993, State of Alaska} validates traffic as a sound pEanning and zoning concern in the following statement: The effects on traffic canges[ion are also mentioned some in the conditional use section of a zoning , ordinance. A permit granted or denied under this standard has a better chance of surviving judicial review if it is based on a credible traffic study which quantifies the effects of the proposed use. (68) 7.2 Traffic Study and Pertinent Statistical Data Residents of the neighborhood conducted counts of three main areas: (1) children in the neighborhood and at local schools (2) number of cars entering & exiting the Kenai Central High School from the Spur Highway, and (3) a count of clientele entering & exiting other professional offices to represent a possible traffic sampling for the proposed professional offices traffic These counts were conducted by neighborhood residents around such priorities as family, school, jobs, and neighborhood issues in an a(I too short allowable time frame. Although they may not be an official traffic study, they do show that there is a traffic impact on the neighborhood and surrounding area that roust be considered. 7.2.1 The number of children potentially affected by traffic concerns who live on the north side of the Spur Highway and who must cross a five lane highway to get to their respective schools is currently at 70 and will climb to 7? in approximately three months. The agesbf these children range and the number is relative to change. See attachment #f 7 far recorded tally of surrey. The number of children enrolled in the area school are: 475 at Kenai Central High School, 455 at Kenai Middle School and 409 at Mountain View Elementary. These statistics establish the fact that many children will feel the impact of the council's decision concerning this CUP now and for years to come. 7.2.2 The number of cars entering & exiting the Kenai Central High School from the Spur Highway were `tallied at three different courts. Number of vehicles going in to the high school: * first count 1:55 p. m. to 2:50 p. m. 66 * second countl Z:45 p. m. to 3:00 p. m. 83 * third count 7:07 a.m. to 7:45 a. m. 1 65 (as many as 47 Ina 15 minute period) (as many as 7 0 in a one minute period) * fourth count7:00 a.m. to 10:30 a. m. 1 91 Number of vehicles exiting the high school (offset exit from Cinderella St.) * first count 7:00 a.m. to 10:30 a.m. 90 * second count12:45 p.m. to 3:00 p. m. 78 * third count 7:07 a.m. to 7:45 a. m. 79 (as many as 18 in a 9 minute period) (as many as 12 in a one minute period) * fourth count7:00 a. m. to 10:30 a.m. 50 eases in traffic flows at peak hours due to the Kenai M9iddle 5chaol traffic f{ow have not been included in these counts. 7.2.3 Professional Offices clientele traffic (information obtained by phone caPls to the businesses): ......._.... _. (1) A Dental Clinic (2} A Medical Walk-in Facility (3) A Medical Specia;rst (4) Tanning Salon (5) A Hair Salon (6) A Chiropractic Clinic (7) An Insurance Agent 7.3 Conclusions 25+ vehicles per day plus 5-6 employees 2D on a slow day plus 3-4 employees 60 on a heavy day plus added employees 40 on office days (non-surgical days) 30 on oft-season days plus 2 employees 90 on in-season days 30 to s0 in the winter plus 4-5 employees (doubted in the summer) 50 per day plus 4 employees 50 per day plus 3 to 4 employees 7.3.7 Traffic ReEated Safety Issues Exists. The Chumleys' application is for two professional office buildings. The number of stories or businesses in each is still undisclosed or unknown. Assuming that each building held only one professional office, based on the above clientele counts for two professional offices, in and out traffic, the clientele numbers above would have to be quadrupled to account for the traffic. Each of the two offices would have in and out traffic for earh client served. ft is entirely feasible that each building, even if single story, could house two or more professional offices. Each building could be two stories high (or higher), and double the traffic possibilities. Considering the traffic from the high school, added to the traffic from a minimum of two professional offices, congestion could become unmanageable around the high school exit and Cinderella Street without further traffic assistance (such as a traffic Tight at an already unaligned intersection --just planning the traffic light might be a nightmare). Clue to the general. nature of the drivers at the high school, a higher number of inexperienced drivers use its entrance and exit than any other single driveway system in the City of Kenai. Not one map presented by the Chumleys has shown the location of the high school exit in relation to their proposed site plan. 7.3.2 One Accident is One Too Many. Unfortunately the peak traffic congestion times are also the timaschildren are watking to and from school !t is obvious from the data collected that safety risks, particularly to_ our citildren, will escalate if this CUP is approved. Tfris is of utmost concern to the neighbors and rightfully should carry tremendous weight in making the decision to approve or decline the CUP. T (~oa~ro~: pp~at of PZ9~-12 - Cornrr,ts~ton D~ctston) ~~~ ~ ~~5 flSSESSN~E7 ~D REZOIV~ ~~ l'he history of this neighborhood and its interaction with both the Kenai City Council and Commission demonstrates a highly collaborative effort of the majority of property owners to preserve and maintain the low density residential character of this neighborhood. 8.1 Historical Data In 7 985 the citizens of this neighborhood petitioned the City offering to pay 20% assessments for sewer and water improvements contingent upon the city rezoning the defined area from RR to RRt. We ultimately paid 25% assessment. City of Kenai Assessment Roll records show total amounts paid were $328,181 or $287,869 excluding government properties. Many residents paid these assessments over a ten year period at a 10% interest rate. The residents of this neighborhood confidently invested in the City of Kenai. We agreed to pay and we did! 8.2 Linkage of the 1985 Assessments Levied on Residents and the RR1 Rezone In return for the approximate $300,000 investment made, the residents received a rezone to RR-1 and at very least reinforced our right to "have a say in how the neighborhood is developed in the future" with particular upfront understanding that our intent was to avoid a "patch work type of development, alrnost a Spenard-like type of development..." (Board of Adjustment Packet, BA-S6) To breach this good faith agreement is a detriment to the overal{ community. It. erodes confidence in the city leadership's ability to plan and zone in a responsiblz, progressive and consistent fashion. (t deteriorates the motive for future investment in our city and ultimately deters future growth and economic vitality. These points are further supported in the Planning Commissioners Handbook. The determination as to the legally binding implication (i.e. assessment reimbursements} should not have to be established in a court of law. It is dear that the city understood the connection between the assessment and the rezone as indicated in a letter from former Finance Director, Charlie Brown. (Board of Adjustment Packet, BA-6b, page 4) Inherent in due process is the right of the residents to be heard Burden of proof for exceptional uses rests with the aoolicant and has not been met. Exceptional uses should be evaluated against rigorous and restrictive standards. The neighbors have supported their chosen direction for the city with well docurnented, rattona! "proof" that. is not even-their obligation to provide. There is no logical reason for allowing the "1985 Deal" issue to escalate beyond this level at potential expense and liability to aH taxpayers of this city. How ever the legal implications are interpreted by individual council members, what nccurred in 1 9£35 must be given due consideration in making the decision to accept or reject Chumleys CUP. 'l" 1' Pac-t~~t~ 1 its ~~t Lay ~t~ ~43~' G a ~~ r ~~ L a 2 ~~ (Y1 ~~~G ~~~ 1 ~~~ ew 'P ' r '~, x~' A' FK. 4~` ~ A ~: ~`^` T~ ; i ~r h~ .\{ t~' ~,~ t ~z ~i~' ~; ( ,~~ C:, }~..'~ ~ ~~x ... X~ ~~ ~) 7 } a y ,R ~k )~ y .~ x J }. ~.. ,~ ~, i! \\ fi.~ /P ~ ,. ~~ y ~, r~~~ =~. (~ 4'"7 'i !~ ,,~ _~ ,v 'f~`` /// ~ Yk ,~, r~.: y Z 4 ~, .' ~ ~~ l r 1 ~ ;:-~ ~ '-~------ / x U v 1 .__ ~. X, ~ ~, .. X. nI~ '1~ ,'~ ~~# ~ ti J '~ ~ ~ x;x x J r -~~GJ, ~ `~, ~ X ?~ ~ ~, SX'G~; ~~ ~ ~ ' u ~ '~ r-- _ ..-- ~~ ~ .c K r ,{{{ ,may./" ~,".. 1 ~- _.---" pit /~{~ ogg 3oE op -3 ;m R~ 3 I >< j i ~~ ~~I i » »mPB GOVT LOT4 ~ ~'8~-. 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N~~.. ~ '~ "~ 1 RELEV FIT E\fl L P" E~laFIT~ IFI~ IVi'TI FI 1. The orrice applicaat paid for the land is irrelevant. Whether applicant paid 10 percent of or 10 times more than market value is not only irrelevant, it pales by comparison when you look at the collective financial invesunent made by the many neighbors who have lived ni this neighborhood for the last several years to a few decades. Add to that the relational and quality of life investment these individuals have made. Multiple owners own or have owned more than one parcel and/or lived on more than. one lot. Two owners are currently constructing new homes on second lots in this same neighborhood. When we rrioved, we didn't go far. We have even seen our children grow to adulthood in this neighborhood, some have married each other and some second generation residence, as adults, are choosing to locate in this very same neighborhood. The relevancy of pricing becomes an issue when land management decisions arbitrarily made negatively impacts property values, particularly in cases where due process has been thwarted. Relative to this concept of "takings" the constitution is clear, "No person sha1l...be deprived of life, liberty or property without due process of taw...: '(Fifth Amendment to the U.S. Constitution}. 2. Thetree-less, "dust bowl" phenomenon perpetuated by the former owner. The trees are anon-issue in making this decision. Practically speaking the cleared trees would allow the new owner(s) to tastefully landscape their lot without the added step of removing unwantedand/or unsighfly treas. The picture in the meeting packet is based on an old satellite photo and inaccurately shows forestation that does not exist. Currently this parcel has only a sparse scattering of trees along its perimeter. 3. What the applicant knew or did not know prior to the purchase of this property is no one's responsibilit<~ other than the applicant's and is irrelevant to the decision of rezoning. Nor does the citq have responsibility to remedy any misunderstanding to which the applicant adheres by voting in favor of or "through this vote," The "Buyer Beware" principal applies to us all. 4. Tho applicant's concern for the future of his famIly should somethhig happen to him i~ an irrelevant criteria. With all due respect the applicant is rightfully concerned for his faanity's future. The applicant is not suggesting his family's benefit be given precedence over the neighbors in this area. It would be highly inappropriate for the best interest of the applicant's family to take precedent over the fixture well being of an entire welt established, well populated neighborhood. 5. The foraner owner's intent to utilize this property for purposes other residential is irrelevant to this decision. The fact that the former owner basically held this ,property hostage for about a decade requiring a commercial price for a residential parcel should not impact, nor does it provide justification to convert this parcel to commercial. The former owner had every right to get whatever price he could gat, and the current owner had every right to pay whatever he paid. Neither fact has any bearing on the decision this Council must make. This parcel was, is and should remain RRI. ~` . P~'I'I'I'Il~'I' ~'I`®P A Z~1~I1~G CFI GE T' ®IJI2 C®1VIIi~IiJI~IZ'3' Pr~xated IlTattse Mature PhysYCal Address Photte # Date seined -.. r # ..e. a ~'. t 9. ..x m h ~ ,a. vY9R '. +, '"e~ s' .:.fM ':,rv~ ~ da ~_.V' e.~,t T ;: ., '"i -^;.s.s t`~.._~~drr~P~,.{ ~, .,,~ i~ L .5 LF 5 ..I ~~ s €a ~~ ~_.,~ ~ f d°Gv /Z~~ ,~-r1 ,~1.1' j7 f~ !l ~7 L^ ,,... L~'~.,. I.,:f f ~f.. ~~~.~ '~,yg^' ^,P I.,,~ "",.J ~..f ID''b' , ~ + 7 Vy At /' "} '"~~~ ~~ fir`' q 'p g ?J 74 7.7I~ .y g"~ ..G. `L. f-~'f? ~~ °...' 6$..~LC.'. ~ ~"L. ~1.,L~ ` ` ~ !nu y~ ~ A'~E' 9 ~d.$' "f. ~~(+L 6 ~Cd ~~... +;~ ~i.~ ~~T ~ °-Q~,3 A ~~"- -~'-~~, ~. 4~1 J ~.~'~'~~'^0 ~~V'~V~c~~~~JCAd'~V~~~`y~~Wl~'ir~6 ~. ~~ 1 ~~4~"LV JVi~+~'A/ ~~~'4~~r~ f.~'"~~G--B ~~~~,`~ ~'4d~t.~.t ry~, @ t }} y Iµ . p / rr s q ''ry y' ~~ ry /j ~/ ,y/{~/~f')//)(jpp// ~~ .. ~ISf D~L91'L Y5/~ lh AYfL'// ~~l (/{$} /,~lln)(~ py'9/J/,}y{Only (`~(• 1 /'O/AVA W'l /~d N83JI R8~ °), eyry+ ~~"" ~C.10...~ ® (./erv} J({~ L~.~~a °"+.P ~~ PI'I'IN T'® STOP A Z1~tIl~tG CI3fiG~ T® ®iTi2 C'1VI1l~ITT1~I'I`Y ~~°iaeked Naerse ~iataaz°e Plaveac~l_ Ae~e~e°~cs ~hax~~ ## i~~~e ae~~eci _ r u ,~~ ~eb2CC~ ~s b~ aG,C ~ . 3`~5-~lOS ~ l2-Z~Zmc~ 1~ ~~ 1 °' 3'S~£~ / - ~~ a+ ~ =s !M~ ~ ~t, ;~83~SGzl ~2-L- ooh `'J `~ ~~ ~ 7a~ M~~~c ~v~ a~3-u~9 ra-a-aco ~i Wa)~- yVU~VYA ~,~~a~a~ 70~ ,M~~,~ ~}v~ a83~1~~r~ ia-~-aoa~ ~~~ ~SS`P~-' `.~orJ~3C>fCG ~~L~-~`7 ~ `~~G~ C~~oe~e~~+a ~ Z~3-S®B~ 12-2t dot mce.ntium ~3-~~~~ l ~-~-dg p, , ` ~ ~/~./'. i fi ~ .: ~k'~~62^-' ~7 ~It~...~~`. 7 ~' ~.7 k~ ~~r( ~'l~`"~' "~'l ._7 `/ ~. - t~~r(~.J J I (' ~ !~ 7 '' C~ ~~:) ,~ d L-C1 t ~ f ,~ --> t~~~ 9 PE'I'I~'I1~ T STEP A ~®~TING C GE 'I' ITI~ C1~I11~IiJ1mII'I'I' Printed Nate tc xeata~re P1~ysical Address # Date sf~ a~ed P itoasc ~° ( ® °~~ ~~~dfClpl 3~{94e11~ ~ /w` .~iT"` ® ~~5~~r!'if~fpdp'flfi S'¢, / l ® g ( /Q~/~fS°L`~fd(°~' l~` PE1'~'I'IN '1' S'I`1' A ZNIIi~G CIS GE 'I' ~T1~ C1l~IiTNITY c,;~ Prieated 1~ta~ne '~-~Ys ~i~natagre i~[¢ysicai Address Ph®ne # (Date signed Ordinance No. 2362-2008 - Attachment A P'ropas~d ~~®n~ Faurat F2~sidentiai 1 to ~trrsitad Corr~rnarcial ~ ~{ o~ ~a~ ~cr' F~6 ~ ~ ~ ~' ~ p Z_-(~ fV ~."" - Legend ~.r:a~~h / ~ Suggested by: Council _ . _> ~eGfY°P CITY ®R K~PIAI KEilA~ 516A RES()LUTI®N 1V®. 20Q8-fr8 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE FINANCIAL DISCLOSURE STATEMENT FORM FOR CITY OF KENAI MUNICIPAL OFFICERS AND CANDIDATES PURSUANT TO KMC L85. WHEREAS, on July 16, 2008 the Kenai City Council enacted Ordinance 2323-200$; and, WHEREAS, Ordinance 2323-2008 amended the financial disclosure requirement for municipal officers and candidates contained in KMC 1.85; and, WHEREAS, KMC 1.85.020Cc provided that the financial disclosure form must be approved by a resolution of the Kenai City Council; and, WHEREAS, on October 7th the voters of the City of Kenai approved Ballot Proposition A which exempted the City of Kenai municipal officers and candidates from the State of Alaska financial disclosure requirement and instead require them to file a City of Kenai. financial disclosure statement. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City of Kenai Public Official Financial Disclosure Statement shown in Attachment "A" is hereby approved. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of December, 2008. PAT PORTER, MAYOR ATTEST: Cvol L. Freas, City Clerk 40 ~J CITY F !(ENAI 2®~9 I~U~LIC +~BFFICIAL FINANCIAL L~ISCLC3SURE STATENtENT IsACic~~~uN®~NF~~~iATi~N This report is for City of Kenai Planning & Zoning Commission members; the City Manager, the City Clerk, the City Attorney, City of Kenai municipal candidates; and incumbent Mayor and Council Members. 2. This report is for the preceding calendar year, so include any information about financial interests held between 3anuary 1, 2008 and December 31, 2008. You must show your financial interests and those held by your spouse, domestic partner, non- dependent children residing with you, or dependent children during the preceding calendar year. 4. If you, your spouse, domestic partner, non-dependent child residing with you or dependent child ("covered individual"} is a sole proprietor, member of a partnership or limited liability company, shareholder in a corporation or a professional corporation in which the covered individual holds a controlling interest, or the owner of a controlling interest in another business entity, then the disclosures required under this form also apply to the covered individual's sole proprietorship, partnership, limited liability company, corporation professional corporation or the business entity. 5. Health care providers*, certified public accountants, stock brokers, or financial advisors, attorneys and their spouses or domestic partners are not required to disclose, as sources of income, the names of individual patients or clients who received professional services. This exemption shall not apply to the identify of any corporation or other business entity having a contract with the professional producing income of $5,000 or more for services to its members or a defined group, nor to the identity of clients receiving services that do not fall within the professional's field of expertise. 6. * "Heath Care Provider" means an acupuncturist licensed under AS 08.D6, an audiologist or speech language pathologist licensed under AS 08.11., a chiropractor licensed under AS 08.20, a dental hygienist licensed under AS 08.32, a dentist licensed under AS 08.36, a nurse licensed under AS 08.68, a dispensing optician licensed under AS 08.71, a naturopath licensed under AS 08.45, an optometrist licensed under AS 08J2, a pharmacist Incensed under AS 08.80, a physical therapist or occupational therapist licensed under AS 08.84, a physician or physician assistant licensed under AS 08.64 a podiatrist licensed under AS 08.64, a psychologist or psychologist associate licensed under AS 08.86. If you need help, call the Kenai City Clerk at (907) 283-7535, extension 231. 8. SIGN AND DATE TIiTS FBEPtJRT ON TiiE LAST PAGE. 41 If additional pages are needed to list information, include the schedule and your name at the top of each extra page. NAME; (Rhone) (pax number} 6000PAI'I~N: MAILING A®DRESS: (Current Street Address or Past Office Box} (E-Mail Address} {C6ty/Town and Zip Code} OFFICE HELD OR SOUGHT. OFFICE: TERM OF OFFICE: From TITLE: TYPE OF STATEMENT (CHECK ONE}: ^ CAND%DATE STATEMENT Must be filed with your declaration of candidacy ^ %N%TEAL STATEMENT For newly appointed municipal officers ^ ANNUAL STATEMENT Due by Aprit i5. SPOUSE: to DOMESTIC PARTNER: DEPENDENT CHILDREND NON-DEPENDENT CHILDREN RESIDING WITH YOU: 42 2009 City of Kenai Financial Disclosure Statement Page 2 If addifional pages are needed to list information, include the schedule artd your name at fhe top of each extra page. SCHEl3ULE A SOU63CES OF INC®ME QVEIt $Li900 Salaried Employment If N®NE reportable, check box ^ ReporC the name of each employer who paid you, your spouse, domestic partner, non-dependent children residing with you, or dependent children more than $1,000 during calendar year 2008. Name of filer, spouse, domestic partner or child: Employer's Name: Name of filer, spouse, domestic partner ar child: Employer's Name: Name of filer, spouse, domestic partner ar child: Employer's Name: Name of filer, spouse, domestic partner or child: Employer's Name: rvVrvt reporcap'e, enecK nox u List the name and address of each self-employment business that was a source of Income of more than $1,000 far you, your spouse, domestic partner, non-dependent children residing with you, or dependent child during calendar year 2008. Yf the business is non-retail, list the first and last name of each client ar customer who paid the business over $1,000, Self-employment includes: sole proprietor, partnership, limited liabi8ty company, shareholder in a professional corporation, or if you held (individually or with another family member) more than 50% of the stock in a rarnoration. Name of filer, spouse, domestic partner or Business Name; Retail ^ Non-Retail ^ (If you check non-retail, list clients/customers below.) Name of client/customer: Name of filer, spouse, domestic partner or child: Business Name: Retail ^ Non-Retail ^ {If you check non-retail, list clientsJcustomers below.) Name of dienticustomer: 2009 City of Kenai Financial Disclosure Statement Page 3 43 If additional pages are needed to list information, include the schedule and your name at the top of each extra page. Schedule k -continued SO[1RCE5 OF INCOME OVER $1 d®0 list the first and last name of each tenant from whom aver $1,000 was received during cafe»dar year rynnu Owner (flier, spouse, domestic partner or child) Tenant(s) Ceividends and Interest If NONE repartable, check box O Recipient (filer, spouse, domestic partner or child) Name of Source of Income List the source of gifts which have a value of or cumulative value of more than $250 extent gifts received from a spouse, domestic partner, parent, child, sibling, grandparent, aunt, uncle, niece or nephew. Some examples of gifts include: cash, a debt that is forgiven, scholarships, and discounts not extended to the general public, Recipient (filer, spouse, domestic partner or child) Name of Source 2049 City of Kenai Financial Disclosure Statement Page 4 44 If additional pages are needed to list information, include the schedule and gour name at the top of each extra page. SCHEC~ULE B Report all business interests even if they were not sources of income to you, your spouse, domestic partner, non-dependent child residing with you, or dependent child during calendar gear 2008. • List ownership interests of more than $1,000 as a shareholder in publicly traded stacks, that are not listed elsewhere on this form. (A list of the names of publicly traded stocks such as IMB or Intel may be listed by name only on a separate page.) • List ownership interests in non-publicly traded companies such as a sole proprietor, shareholder, owner, partner, officer, or director including ownership interests in Native corporations. • List interests in limited liability companies. • List director or officer position in profit and non-profit organizations. Describe the business activity with sufficient detail to tell a reader what the organization actually does. Flame of filer, spouse, domestic partner or child: Business Name: Business Address: Nature of Interest: Description of Business's Activity: Flame of filer, spouse, domestic partner or child: Business Name: Business Address: Nature of Interest: Description of Business's Activity: Name of filer, spouse, domestic partner or child: Business Name: Business Address: Nature of Interest: Description of Business`s Activity: Name of filer, spouse, domestic partner or child: Business Name: Business Address: Nature of Interest: Description of Business's Activity: 2009 City of Kenai Financial Disclosure Statement Page 5 45 If additional pages are needed to list information, include the schedule and your name at the top of each extra page. SCHEDULE C REAL PROPERTY fNTERESTS/RENT TO £AiW'N Report all property interests such as your home, real property leased or rented from others, rent-to-own home, rental properly, vacant, recreational, business property ar limited partnerships including real estate interests held in an LLC, or held through a trust or sold during calendar year 2088. Include a street address, city and state or complete legal description for each piece of property listed. ®o no use milepost markers or post office boxes. Use copies of this page if you need additional space to complete this section. Name of filer, spouse, domestic partner or Street Address or Legal Description: City or Borough and Nature of Interest: {Option to Buy, Ownership, Leasehold} Current Use (Optional) Name of filer, spouse, domestic partner or child: Street Address or Legal Description: City or Borough and State: Nature of Interest: {Option to Buy, Ownership, Leasehold) Current Use (Optional} Name of flier, spouse, domestic partner or child: Street Address or Legal Description: City or Borough and State: Nature of Interest: (Optian to Buy, Ownership, Leasehold) Current Use (Optional) Name of fifer, spouse, domestic partner or child: Street Address or Legal Description: City or Borough and State: Nature of Interest: (Dption to Buy, Ownership, Leasehold) Current Use (Optional) Name of fifer, spouse, domestic partner or child: Street Address or Legal Description: City or Borough and State: Nature of Interest: (Opton to Buy, Ownership, Leasehold) Currant Use (Optional} 2009 City of Kenai Financial Disclosure Statement Page 6 46 If addifional pages a.re needed to List information, include the schedule and your name aC the tap of each. extra page. SCHEDULE D BENEFICIAL INTEREST IN TRUSTS Rc ISETIRENIENT ACCOUNTS Exceeairsg $i,ooo Report each beneficial interest in a trust or retirement account held by you, your spouse, domestic partner, non-dependent children residing with you, or dependent children that exceeded $1,060 during calendar year 2008. Retirement aaounts include employee benefit accounts (pension and profit-sharing accounts, and retirement accounts (IRA, 401K, SEP or Keogh). Assets of a trust or retirement acrnunt include stocks, bonds, mutual funds, cash accounts, CD's, real property. • Name the trustor (the erson or employer who provided the funds or assets for the trust or retirement account). • If a trust or retirement account is self directed, also fist the assets by name such as IBM stock or Templeton Growth Fund. Name of filer, spouse, domestic partner or child: Extent of Interest (Percent) Name of the person, employer or entity who provided the funds or assets (Trustor), Name(s) of the stocks, bonds, mutual funds or other assets contained in the retirement account or trust. Name of filer, spouse, domestic partner or child: Extent of Interest (Percent) Name of the person, employer or entity who provided the funds ar assets (Trustor). Name(s) of the stocks, bonds, mutual funds or other assets contained in the retirement account or trust. Name of flier, spouse, domestic partner or child: Extent of Interest (Percent) Name of the person, employer or entity who provided the funds or assets (Trustor). Name(s) of the stocks, bonds, mutual funds or other assets contained in the retirement account or trust. Name of filer, spouse, domestic partner or child: Extent of Interest Name of the person, employer or entity who provided the funds or assets (Trustor}. Name(s) of the stocks, bonds, mutual funds or other assets contained in the retirement account or trust. 2009 City of Kenai Financial Disclosure Statement Page 7 47 If addifi~onat pages are needed to fist information, tinetude the schedule and goer name of the top of each extra page. SCHEDULE E LOANS, LOAN GUARANTEES. AND DEBTS OF 51.000 OR MORE NATURAL RESOURCE LEASES Repart the name of each creditor or lender to whom more than $1,000 was owed during calendar year 2008 by you, your spouse, domestic partner, non-dependent children residing with you, ar dependent children. List financial obligations including mortgages on property sold during calendar year 2008; Voans that have been guaranteed; mortgage, boat and auto loans; business and personal loans; escrows; student loans; signature loans; and promissory notes. Loans include secured, unsecured and contingent loans. Do not report credit card obligations or revolving charge accounts, delinquent taxes, alimony, child support payments or medical bibs. CircBe whether the entity is a tender, creditor or guarantor. Name of Debtor (filer, spouse, domestic partner or child) Name of Lender/CreditorjGuarantor Name of Debtor (fifer, spouse, domestic partner or child) Name of Lender/CreditorjGuarantor Name of Debtor (filer, spouse, domestic partner or child) Name of Lender/CreditorjGuarantor Name of Debtor (filer, spouse, domestic partner or child) Name of Lender/CreditorjGuarantor Name of Debtor (filer, spouse, domestic partner or child) Name of Lender/CreditorJGuarantor Name of Debtor (filer, spouse, domestic partner or child} Name of LenderjCredftor/Guarantor Leaseholder Nature of Lease Indicate: Bid, held, or offer made Identity of Lease and Description Leaseholder Nature of Lease Indicate: Bid, held, or offer made Identity of Lease and Description 2009 City of Kenai Financial Disclosure Statement Page 8 48 If additional pages are needed to lisl information, include the schedule andyour name at the top of each extra page. SCHEDULE F GOVERNMENT CONTRACTS ANt? LEASES List ail contracts and offers to contract with the state pr instrumentality of the state or a municipality during calendar year 2008 held, bid or offered. Report this information for yourself, your spouse, domestic partner, non-dependent children residing with you, or dependent children who was a sole proprietor, a partnership or professional corporation of which you are a member, or a corporation in which you or your family members listed above (or a combination of them) held a controlling interest. Name{s} of Contractor Indicate: Bid, held or offer made Name(s) of Convador Indicate: Bid, held or offer made Contracting AgencyJDepartment Contract number and description Contracting AgencyJDepartment Contract number and description SCHEDULE G CONTRACTS ANC3 OFFERS TO CONTRACT WITH THE CITY OF KENAI Contracts and Offers to Contract If NONE reportable, c9aeck box ^ List all contracts and offers to contract with the City of Kenai during calendar year 2008 held, b+d or offered. Report this information for yourself, your spouse, domestic partner, non-dependent children residing with you, or dependent children who was a sole proprietor, a partnership or professional corporation of which you are a member, or a corporation in which you or your family members listed above (or a combination of them} held a controlling interest. Name(s) of Contractor Indicate: Bid, held or offer made Name{s) of Contractor Indicate: Bid, held or offer made Name(s) of Contractor Indicate: Bid, held or offer made Name(s) of Contractor Indicate: Bid, held or offer made Contracting AgencyJDepartment Contract number and description Contracting AgencyJDepartment Contract number and description Contracting Agency/DepartmenC Contract number and description Contracting AgencyJDepartment Confi2ct number and description 2009 City of Kenai Financial Disclosure Statement Page 9 49 If additional pages are needed to list information, include the schedule and your name at the top of each extra page. SCHEDULE H BUSINESS OR FINANCIAL DEALING AVER $1,000 WITH ANY MUNICIPAL OFFICER £iF THE CITY OF ICENAI Business ar Financial Dealing If NONE repartabie, check. box ^ List all business or financial dealing over $1,000 with any municipal officer of the Clry of Kenai during calendar year 2aD8. Report this information For yourself, your spouse, domestic partner, non-dependent children residing with you, or dependent children who was a sole proprietor, a partnership or professional corparation of which you are a member; or a corporation in which you or your family members listed above (or a combination of them) held a Name of filer, spouse, domestic partner or chiid: Business Name: Business Address: Nature of Interest: Description of Business's Activity: Name of filer, spouse, domestic partner ar chiid: Business Name: Business Address: Nature of Interest: Description of Business's Activity: Name of flier, spouse, domestic partner ar chiid: Business Name: Business Address: Nature of Interest: Description of Business`s Activity: Name of filer, spouse, domestic partner or chiid: Business Name: Business Address: Nature of Interest: Description of Business's Activity: Name of filer, spouse, domestic partner or chiid: Business Name: Business Address: Nature of Interest: Description of Business`s Activity: 2009 City of Kenai Financial Disclosure Statement Page 10 50 If addifionat pages are needed to tilt information, include the schedule and your rmme at the top of each extra page. ~~~TIFZ~~~I®~ Where to die this Statement: NtUNTCIPAL ®FFICTALS AN® CAN®IDATES -- Fale Statements with the Kenai City Clerk 210 Fidaigca Avenue icenai, Aic 99611 Teiephone: (907} 283-7535, extension 231 Fax: (967}283-5068 2009 City of Kenai Financial Disclosure Statement Page 11 sr Suggested by: Administration CITY OF IfENAI I2ESCLdTTIdNS NCm. 2008-63 A RESOL UTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A CONTRACT TO BLAZY CONSTRUCTION, INC. FOR THE PROJECT ENTITLED KENAI VISITORS CENTER HEATING SYSTEM UPGRADE - 2009 FOR THE BASIC BID AMOUNT OF $462,552.00. WHEREAS, the following bid was received on November 26, 2008: B ADD2TIVE ALTERN. I IDDER BASIC BID Sidewalk Snowmelt TOTAL S stem BI Construction Inc. $462,552.00 $65,997.00 $528,548.00 En ' eer's Estimate $628,342.00 $53,862.00 _ $682,203.00 and, WHEREAS, Blazy Construction, Inc.'s bid was the only bid; and, WHEREAS, Blazy Construction, Ino,'s bid is the lowest responsible bid and award to this bidder would be in the best interest of the City; and, t~~IiEREAS, the recommendation from City Administration is to award the contract to Blazy Construction, Inc. for the total cost of $462,552.00; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE C2TY OF KENAI, ALASKA, that the contract for. the project entitled Kenai Visitors Center Heating System Upgrade - 2009 be awarded to Blazy Construction, Ina for the Basic Sid amount of $462,551.00. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this third day of December, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance; 52 AGENDA KENAI CITY COUNCIL -REGULAR MEETING NOVEMBER I9, BO®8 ?:Q~ P.M. KENAI CITY COUNGTL CHAMB http:) [www.ci.kenai.ak.us Work Session: Corps o€ Engineers/Bluff Erosion Project Update -- 5:30 p.m., City Council Chambers. ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*j 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 fl1e General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) Audrey and Syl®ria Solanson -- Assisted Luring Facility Tina Baldridge, B:enai Chamber of Cammeree -- Request for Support/Fireworks Display Tina Herford, B;enai Peninsula United Way -- DVD Presentation ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF I{PB ASSEMBLY LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.} 1. Ordinance No. 2367-2®OS -- Increasing Estimated Revenues and Appropriations by $48,044 in the Congregate Housing Enterprise Fund for Transfer to the General Fund Pursuant to KMC 7.32.030. 2. Ordinance No. 2358-2m08 -- Increasing Estimated Revenues and Appropriations by $4,796 in the General Fund for a Library Grant. 3. Ordinanoe Na. 2359-20108 -- (1) Increasing Estimated Revenues and Appropriations by $576,469.38 in the General Fund Non-Departmental for Transfer to the V"isitor Center Heating System Capital Projects F~xnd; 54 (2) Authorizing a Budget Transfer of $55,000.00 Previously Appropriated in the General Fund Buildings Department to Non-Departmental Transfer to the Visitor Center Heating System Capital Projects Fund; and, (3j Appropriating the Transferred Funds in the Visitor Center Heating System Capital Projects Fund for Replacement of the Center's Heating System. 4. Resolntion No. 2008-66 -- Setting the Time and Place for a Public Hearing on the Shamrock Circle Street Improvement Special Assessment District. 5. Resolntion No. 2005-6? -- Setting the Time and Place for a Public Hearing on the Thompson Park, Beaver Creek Alaska, Mack, Valhalla Heights, and Sunset Rim Subdivisions Street Improvement Special Assessment District. YTEM F": MINUTES 1. *Regular Meeting of November 5, 2008. ITEM Cr: UNF`INTSHELI BUSINESS ITEM H: 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *4Brdinance No. 2360-2008 -- Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund for Police Drug Abuse Resistance Education (DAREI Expenditures, 4. *®rdananee No. 2361-2005 -- Amending the Official Kenai Zoning Map by Rezoning Kenai Peninsula Borough Parcel Number 04701009, the Kenai National Guard Armory (TSNRl 1W SEC 6 Seward Meridian KN Commencing at the N 1 J4 Corner Run S 0 Deg 13 Min E 77.88 Ft Th S 86 Deg OS Min E 35.09 Ft Along the Southerly ROW of the North Kenai Rd to the POB Th S 0 Deg 13 Min E 683.85 Ft Th N 89 Deg 47 Min E 330 Ft Th NO 0 Deg lj From Conservation (C) to General Commercial (CG). 5. *Qrdinance No. 2362-2008 -- Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa Joe's Subdivision, Chumley Replat From Rural Residential 1 (RR1) to Limited Commercial (LC). Approval -- Council on Aging By-haw Amendments 7. Approval -- Amendments/Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. 55 8. Approval -- Council on Aging Letter to Legislators/Support AgeNet 2009 Priorities for Seniors in Alaska. 9. Discussion -- Scheduling Work Session/ECl/flyer Presentation -- Library Expansion Project. ITEM I: COMMISSIONICOMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5, Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report o, Mini-Grant Steering Committee d. Advisory Cemetery Committee ITEM 1: REPORT OF T&IE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council ITEM M: PENDING LEGISLATION (This item lists legislation which will be addressed at a later dafe as noted.) Ordinance No. 234?-2008 -- Repealing the Existing KMC 1.15.040 and KMC 1.15.050(e) Regarding Preparation, Distribution and Publication o£ the Agenda and Replacing Them with a New Section KMC 1.15.040 Entitled, Agenda and Packet - Develapment-Preparation-Distrsbution-Publication-Late Materials. Substitute Ordinance No. 2347-2008 -- Repealing the Existing KMC 1.15.040 and KMC 1.15.050(c) Regarding Preparation, Distribution and Publication of the Agenda and Replacing Them with a New Section KMC 1.15.040 Entitled., Agenda and Packet - Development-Preparation-Distribution-Publicatson-Late Materials. (Clerk's Note: Ordinance No. 2347-2008 and Substitute Ordinance Na. 2347-2008 are pending: The original Ordinance No. 2347-2008 was introduced at the September 3, 2008 meeting; a motion to move Substitute Ordinance No. 2347-2008 is on the table from the September 17, 2008 meeting; a motion to postpone (with no time certain} and 56 schedule a work session on the ordinances followed and was passed; and, a work session was scheduled for October I5, 2008 in the council chambers./ '[)'TINE SE&SION -- None Scheduled ITEM IS: AIiJOURIdMEIV'T 57 MINUTES ITEM A: CALL TO ORDER. Vice Mayor Ross called the meeting to order at approximately 7:40 p.m. A-l. PLEDGE OF ALLEGIANCE Vice Mayor Ross lead those assembled in the Pledge of Allegiance. ~.-2. ROLL CALL Beputy Clerk HaIl called the roll. Present were: Also present: Maya Johnson, Student Representative A-3. AGENDA. APFI2OV??• The following changes were noted: ADD TO: H-5. ORDINANCE NO. 2362-20138 Email from City Plattaaes Kebschull Email from Flanning & Zottittg Cammissiorcer Koestar Email from Roy Espy MOTION: Council Member Smalley MOVED for approval of the agenda with the addition of lay downs and Council Member Eldridge SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA There were no requested changes to the consent agenda. JS A quorum was present. KENAI CITY COUNCIL MEETING NOVEMBER 19, 2008 PAGE 2 MOTION: Council Member Smalley MOVED to approve the consent agenda as presented. Council Member Eldridge SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS B-1. Audrey and Sylvia .Tohnson -- Assisted Living Facility Audrey Johnson read an eviction notice from Rachael Craig, Senior Center Director, sent to her mother Sylvia Johnson, noting the reason for the eviction was due to her mother not being able to care far herself, and requested a portion of Vintage Pointe be converted to assisted living, B-2. Tina $aldridge, Kenai Claasnlaer of Conameree -- Request for Support f Fireworks Display Baldridge requested funding for half of the cost of the fireworks displayed at Christmas Comes to Kenai on November 28, 2008. City Manager Koch noted the money had not been budgeted, but could be appropriated from the frznd reserve. MOTION: Council Member Eldridge MOVED to support the Kenai Chamber of Commerce with Funding of $3,500.00 for fireworks. Council Member Boyle SECONDED the motion. VOTE: *Student Representative Johnson: YES Council requested Administration add the fireworks display as a budget item in the future. B-3. Tina Herford, Faenai Peninsula United ~1ay -- DVD Presentation Herford showed the DVD presentation that could not be shown at the November 5, 2008 meeting due to technical difficulties. 59 MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING NOVEMBER 19, 2008 PAGE 3 I'T'EM C: UNSCHEDULED PUBLIC COMMENTS -- Nane ITEM D: REPCIRTS CiF KPB ASSEMBLY LECrISLAT®RS AND COUNCILS Assembly Member Smalley reported on the Kenai Peninsula Assembly meeting of November 18, 2008, noting action agenda items that pertained to the City of Kenai. ITEM E: PUBLIC HEIsRINGS (Testimony limited to 3 minutes per speaker.) E-l. ®rdinanee No. 2357-2065 -- Increasing Estimated Revenues and Appropriations by $48,044 in the Congregate Housing Enterprise Find far Transfer to the General Fund Pursua~it to KMC 7.32.030. MOTION: Council Member Eldridge MOVED to adopt Ordinance No. 2357-2008 and Council Member Molloy SECONDED the motion. Ross opened the floor to public hearing. Audrey Johnson, Kenai -- Requested monies be used for general maintenance and snow removal at Vintage Pointe and the Senior Center. Lila Mae Schroeder, Kenai -- Requested monies be used for maintena~ace and upkeep o£ the Senior Center and Vintage Pointe. City Manager Koch reported. this year the City would be replacing all the windows, upgrading the fire alarms, repairing cabinetry and replacing refrigerators. Joanna HoUier, Kenai -- Spoke in support of a senior assisted living £acility. Bill Osborn, Kenai -- Noted the staff did not have the time to care for the residents and would like Vintage Fointe to stay as independent living. Margaret E'xoggia, Kenai -- Spoke in support of an assisted living facility. Danioa Dennis, Kenas -- Spoke in support of an assisted living facility. Steve Hfllfl~er, Care Taker, Vintage Pointe Manor -- Spoke in support of an assisted fiving facility and requested funding for maintenance. Vt%ith no one else wishing to speak, the public hearing was closed. VOTE: 60 KENAI CITY COUNCIL MEETING NOVEMBER 19, 2008 PAGE 4 *Student Representative Johnson: YES Eldrid e YES Ross YES Mollo YES Bo le YES Porter YES Smalle YES Moore ,YES I MOTION PASSED ETNANYMOUSLY. E-2. Ordinance No. 2368-2008 -- Increasing Estimated Revenues and Appropriations by $4,796 in the General Fund for a Library Grant. MOTION: Council Member Smalley MOVED to adopt Ordinance No. 2358-2008 and Council Member Eldridge SECONDED the motion. Ross opened the floor to public hearing. These being no one wishing to speak, the public hearing was closed. VOTE: *Student Representative Johnson: YES Eldrid e YES ,Ross YES Mollo ~ YES Bo le YES I Porter YES Smatle YES Moore YES MOTION P.~SSED [JNANIMOUSLY. E-3. Ordinance Na. 2359-2fD08 -- (1) Increasing Estimated Revenues and Appropriations by $576,469.38 in the General Fund Non-Departmental for Transfer to the Visitor Center Heating System Capital Projects Fund; (2) Authorizing a Budget Transfer of $55,000.00 Previously Appropriated in the General Fund Buildings Department to Non-Departmental Transfer to the Visitor Center Heating System Capital Projects Fund; and, (3) Appropriating the Transferred Funds in the Visitor Center Heating System Capital Projects Fund for Replacement of the Center's Heating System. MOTION: Council Member Eldridge MOVED to adopt Ordinance No. 2359-2008 and Council Member Smalley SECONDED the motion. Ross opened the floor to public hearing. 61 KENAT CITY COUNCIL MEETING NOVEMBER 19, 2068 PAGE S Fred Eraun, Vice I'resideat, Kenai Convention and Visitors Bureau -- Thanked the Council for aIl their support. VOTE; *Student Representative Johnson: YES Eldridge YES ,Ross YES j Mollov YE~S~~ Boyle YES Porter YES 1 Smallev YES I Moore YES ~ MOTION F"ASSED UNANIMOUSL'1'. E-4. Resolution No. 2008-66 -- Setting the Time and Place for a Public Hearing on the Shamrock Circle Street Improvement Special Assessment District. MOTION: Council Member Molloy MOVED to approve Resolution No. 2008-66. Council Member Smalley SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections, 50 AK_nEla~D, E-5. Resolution No. 2008-b7 -- Setting the Time and Place for a Public Hearing on the Thompson Park, Beaver Creek Alaska, Mack, Valhalla Heights, and Sunset Rim Subdivisions Street Improvement Special Assessment District. MOTION: Council Member Eldridge MOVED to approve Resolution No. 2008-67 and requested UNANIMOUS CONSENT. Council Member Malloy SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. SREAK TAFCEN: 5:19 P.M. 'SACK TO ORDER: $:29 ~'.M. 62 KENAI CITY COUNCIL MEETING NOVEMBER 19, 2408 PAGE 6 ITEM F: MINUTE5 F-1. Regular Meeting of November 5, 2008 -- Approved by consent agenda. ITEM G: UNEIIJISHED BUSINE6S -- None ITEM H: NEW BUSINESS H-I. Bills to be Ratified MOTION: Council Member SmaIley MOVED to ratify the bills and requested UNANIMOUS CONSENT. Council Member SECONDED the motion. There were no objections. SO ORDERED, H-2. Approval of I~urchase Orders Exoeediag $15,000 MOTION: Council Member Eldridge MOVED to approve the purchase orders exceeding $15,000 and requested UNANIMOUS CONSENT. Council Member SECONDED the motion. There were no objections. SO ORDERED. H-3. Ordinance No. 2360-2008 -- Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund for Police Drug Abuse Resistance Education (DARE) Expenditures. Introduced by approval of consent agenda. H-4. Ordsnanee No. 236 E-2008 -- Amending the Official Kenai Zoning Map by Rezoning Kenai Peninsula Borough Parcel Number 04701009, the Kenai National Guard Armory (T5NR11W SEG 6 Seward Meridian KN Commencing at the N1(4 Corner Run S 0 Deg 13 Min E 77.88 Ft Th S 86 Deg O5 Min E 35.09 Ft Along the Southerly ROW of the North Kenai Rd to the POB Th S 0 Deg 13 Min E 683.85 Ft Th N 89 Deg 47 Min E 330 Ft Th NO 0 Deg 1) From Conservation (C) to General Commercial (GG). Introduced by approval of consent agenda. H-5. Ordimmanee No. 2362-2008 -- Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa Joe's Subdivision, Chumley Replat From Rural Residential 1 {RRl) to Limited Commercial (ICJ. Introduced by approval of consent agenda. 63 KENAI CITY COUNCIL MEETING NOVEMBER 19, 2008 PAGE 7 H-6. Apgraval -- Council on Aging By-Law Amendments MOTION: Mayor Porter MOVED to approve the Council on Aging By-Law Amendments and requested UNAIdIMOU5 CONSENT. Council Member Molloy SECONDED the motion. There were no council comments. VOTE: There were no objections. SO ORDERED. H-7. Appraval -- Amendments/Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. MOTION: Mayor Porter MOVED to approve the Amendments/Kenai City Council Policy for Commission, Committee, Board and Councff on Aging Meetings and Work Sessions. Council Member Eldridge SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There were no objections. SO ORDERED, H-&. Alsgroval -- Council on Aging Letter to Legislators/Support AgeNet 2409 Priorities for Seniors in Alaska. MOTION: Mayor Porter MOVED to approve the Council on Aging Letter to Legislators and Council Member Molloy SECONDED the moton and requested UNANIMOUS CONSENT. Council Member Eldridge noted a typographical error to be corrected. VOTE: There were no other objections. SO ORDERED. H-9. Dlsoussian -- Scheduling Work SessionJECI/flyer Presentation -- Library Expansion Project. 64 KENAI CITY COUNCIL MEETING NOVEMBER 19, 2008 PAGE 8 Council scheduled a work session for 5:30 p.m. on December 3, 2008 to hear a conceptual presentation on the Library expansion by ECI/flyer. ITEM Lc COMMISSION/COMMITTEE REPORTS Y-I. Council on Aging -- Director Craig reported the December meeting had been cancelled azzd the nea7 meeting would be in January 2009. I-2. Airport Commission -- Council Member Molloy reported the November meeting had been cancelled. I-3. Harbor Commission -- Council Member Boyle reported the Dip Net Report was discussed at the November meeting. I-4. Library Commission -- Council Member Smalley reported the next meeting would be held on December 2, 2008. I-5. Parks & Recreation Commission -- Director Frates reported the next meeting would be in January 2009. I-6. Planning & Zoning Commission -- Vice Mayor Ross reviewed the agenda of the November 12, 2008 meeting included in the packet. I-7. Miscellaneous Commissions and Committees I-7-a. Beautification Committee -- No report. I-`7-ls. Alaska Munioipal League Report -- Council Member Smalley reported on the annual conference he attended recently in Ketchikan. I-7-c. Min's-Grant Steeaing Committee -- No report. I-7-d. Advisory Cemetery Committee -- Council Member Eldridge reported the next meeting would be held on November 20, 2008. ITEM ~T: REPORT OF TSE AdAYOR -- Vice Mayor Ross reported the following: • He attended the Veteran's Ceremony on November 11, 2008. • He attended the $oys c~ Girls Club fundraiser on November 15, 2008. ITEM X: ADMiNISTRATTON REPORTS K-I. City Manager -- Koch reported he met with the Lieutenant Governor Parnell to discuss Capital Improvement Projects, specifically bluff erosion; was asked to serve on the Executive Compensation Commission; and. confirmed with Council the Legislators would met with them in a work session on December 8, 2008 at 3:00 p.m. 65 KENAI CITY COUNCIL MEETING NOVEMBER 19, 2005 PAGE 9 K-~. Attorney -- Graves reported he would have an updated job description and a draft ad for the City Attorney position, as Council had requested an overlap of two months. K-3. City Clerk -- No report. ITEM L: DISCUSSION L-I. Citizens Fred Braun, Kenai -- Spoke in support of the bluff erosion project. L-2. Council Smalfley -- Reported Dorothy Lent2 was thanked for her 43 years as an election afficiai at the Kenai Borough Assembly meeting. Mooze -- No comments. Eldridge -- Reported he was glad to be back in Alaska. Johnson -- No comments. Molloy -- Reported he would be bringing back a new Substitute Ordinance No. 2347-2005 in January 2009. Boyle -- Requested the council meetings be videotaped as in the past. Porter -- Requested a picture be taken of the Council at the December meeting. Ross -- Reported he would not be attending the December 17, 2008 meeting. ITEM M: PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) Ordsnance No. 2847-2008 -- Repealing the Existing KMC 1.15.040 and KMC 1.15.050(cj Regarding Preparation, Distribution and Publication of the Agenda and Replacing Them with a New Section KMC 1.15.040 Entitled, Agenda and Packet - Development-Preparatson-Distributian-Publication-Late Materials. Substitute Ordanammce No. 2347-2008 -- Repealing the Existing KMC 1.15.040 and KMC 1.15.050(c} Regarding Preparation, Distribution and Publication of the Agenda and Replacing Them with a New Section KMC 1.15.040 Entitled, Agenda and Packet - Development-Preparation-Distribution-Publscation-Late Materials. 66 KENAI CITY COUNCIL MEETING NOVEMBER 19, 2008 PAGE 10 (Clerk`s Note: Ordinance No. 2347-2008 and Substitute Ordinance _No. 2347-2008 are pending: The original Ordinance No. 2347-2005 was introduced at the September 3, 2008 meeting; a motion to move Substitute Ordinance No. 2347-2008 is on the table from the September 17, 2008 meeting; a motion to postpone (with no time certain] and schedule a work session on the ordinances followed and was passed; and, a work session was scheduled for October 15, 2008 in the councit chambers.) EX~CtTTI'a7E SE.SSBON -- None Scheduled YTEM N: AD3®URNMENT There being no further business before the Council, the meeting adjourned at approximately 9:05 p.m. Minutes submitted by: Corene Hall, Acting City Clerk 'The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast prior to the official councit vote and shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. 67 I~ENAI CITpyY~/CpO~UgyNyaCq~ILyryW®9RKpSESSI®N NVYd'dlYBDy pL`gR dp'J{y G®VO 5iLlll P.3YS• g ypKaE~NpA(Iy CgIgTyY~CqOVi~>TNCppI~~L gqCHgpA~ryNTEaS~gEpRS p~ Y fVL' SI8[iYOJA 8'a1Vi0 R43~1J, A liL` c'R. dJJINiA NOTES Council present: R. Ross, H. Smalley, B. Eldridge, R. Molloy, J. Moore, and M. Boyle Staff present: C. Hall, C. Graves, R. Koch, T. Eubank, W. Ogle, M. Joiner, and R. Frates David Martinson, from the Corps of Engineers introduced his team; Michael Salyer, Andria Werning, Lorraine Cordova, Krey Price, and Chris Hoffman. A presentation was made related to the Kenai River Bluff Erosion Design Alternatives Report dated October 2008 which was included in the packet. Martinson presented a power point on what they had accomplished thus far and what they had left to do. Martinson reported the Carps of Engineers would provide the following, perhaps as early as March 2009: • An acceptable design • A final report with alternative designs • A preliminary economics report s A cost esfimate for the project • Environmental information (probably incomplete due to funding) The work session ended at approadmately 6:35 p.m. Notes prepared by: Corene Ha1L, Acting City Clerk 68 C~ Z d ~-) ON> ~ M OJ ~D ~ N N V' N F- Z O a 0 a N ri w OD W U W Q LL Z I ~ W ' W i 2~ r ~z O U ~ ~ J .r H Q Q N J J ~ ~_ Z a n c W m w O Z a st Q ~L U ~ ~ ~ ~ ~ ~ 7 w a. w m 4 ~ ~ > rn O ~ w d H z W F z w N W z Z 0 a U w 0 7~ 0 0 0 0 ai o n o v o CV N V N O O O O W O ~ o O O tl' 7 Z a a 4 U O U W ttl Z ~ ~ U i°o~ ri °o W O g 0 o ~ uS U ~ ~ ~ ~ W d tie N ~ u~i ~ ~ Z ~ W ® W W ~ Q J U z ~ O G. U h ~ tl! W U r j as ~ ~ w `n ~ z z ~ w O ~w ~ F z n. w z O ~ LC Q W U W C9 O ~ ~ W - ~ 1 ¢ o. w Z w ce o o ~ z xt o N ~ ~ a ~ ~ w w w ~ ~ z O ~ t= W 2 g a O U Z U W ~ r O Q t i w y d S a z N W O O Z ~ _ W U W I- I-- 2 w 0' U ~ Z ~ w ~ o > 71~ z CITY Off' I~El~IA1 "Village with apart -City with a• future. " 3 ~~~' BACI{QrROCINTY AN1D PERSONAL 17ATA - __ _- CANDIDATES FOIZ APPOYNTMENT COMMITTEES AIdD ~~E~E RETURN TO: KENAI CITY CLERK OCT ~`3 2008 2IO FmALGO AS7ENLTE KENAi, AK 99621 tn; ~y ~~~~ ~~"~ PHONE: 283-7835, EXT. 231 DATE: ~ ~ '- t l1 ' ~ ~J 1 \ ..^Y -~_~Y_ FAX: 283-5065 NAME: ~~`6' t ~, L ~ l ; nit " Resident of the City of Keaaf? 1l ~~ How tang? ~ L"~ ~.G ,/ 1t "~-(' ) (~~~.. G 6 L\ Residence Address ~ `r v ~ ~lzX ! 4 U C'. , L- __ ~ ~?,.b~cyt , Maifing Address ~4~~ ~nX ~V~' ~~~- l~~`-~^+%~~ i ~~i~ `"\~~~~, Home Telephone No, gl-°~'~~~`~`i1~~ Horne Fax No. Business Telephone Na ~ti 1 -,1 ~ ~Z `~'lti ~ Business Fax No. X30-? - ~R i -'-I `1(~ Email Address: ~. c,~ ri' i '~' May we include your contact information on our web page? ALL If not a11, what infor ation may we include? ~g EMPLOYER: -~ : =1 ~-t .r ~ ~'~ce.y5 1_r7C0.~ ~~~o=~ ~~ ` Job Titre ~~.J ~ 'x.2.5 5 ~~~r~~ `~ NAME a~ srovsE: P= l ~ ~ U b ~.~ ~, f~\~~~ S COMMITTEES (AR COMMISSIONS IN WHICH YOU ARE INTERESTED• _ ~e-~~~t . ~~ v~ oy`f' WHY DO YOU WANT TO BE INExO~yLVED WITH THIS COMMISBIO~ OR COMMITTEE? 4 h"n C~ L)~'. U ~~C'_ C c `lad" tkln~ ~ O ~~ c, --~-. ta„ E_ ~'C FilhLl ~ )0'~' S. A@+^~.~ WHAT BACKGROUND, E.RPERIENCE, OR CREDENTIALS DO YOU POSSESS TO BRING TO THE BOARD, 72 Past oxgaafzaticnal :ne Abe ob.'Ps: _ ~:.~ yaS ~'<c: ~I ' ~ h! ~`~ ~~ r,4Yc• T~ c ~~ Signature r 11.i. 1~ .LFI V ~ ~ lJ lrl CITY ~~ KEh1A1 21d Ftt7ALG0 AVG., KENAf, .4L.4SKA 99611-7794 'rE6f>I?HONE; 907-283-7535 PAX: 90?-283-3014 'I'O: Mayor Porter and the Kenai Ciiy ConnciI PROM: ('6(~ Cary R. Graves, City Attorney DATE: November 25, 2008 RD+ : City Attorney Hiring Process L I have gut together a preliminary schedule for your review regarding the timeline to lure the new City Attorney. Council has indicated they would Like atwo-month overlap between the start of the new attorney and. my retirement so that date drives the timeline. Since my retirement date is September 1, 2009, the new hire should start about July I, 2009. If the new attorney is from out of town or in private practice it may take up to 60 days far the person to start after being selected. "Chat means the decision should be made around May 1. 2. Here is a draft time tine for the selection process for your consideration. January l: Advertisement of job position begins. February 1: Resumes and waiting samples are due. _March 1: Supplemental information &'background waiver requests are due. April l: Council selects finalist candidates and conducts interviews. May 1: Council selecLS successful candidate and offers position. July 1: Successful candidate starts work. September 1: Cary retires. 75 3. Attached is a job description of the City Attontey's position far your information and review. 4. Also attached is aposition vacancy announcement for your review. The estimated costs for publication in the Clarion are:. $1,300 for six days or $2,000 for two weeks. The estimated cost for publication in the Anchorage Daily Yews is: $1,778 for one week or $2,fi80 for twa weeks. Does Council want to advertise in the two newspapers? I world also recommend posting'the announcement with the AML and including the FAX Alert For $150 per page. Please let me know if you have any questions or need any further information. 76 CITY OF KENAI Position Vacancy CITY ATTORNEY City Attorney -City of Kenai, Alaska. The City of Kenai, Alaska, a home rule city (population approximately 7,000) seeks a City Attorney. The City has approximately 100 employees, and atl operating budget of $18.3 million. The Legal Department consists of fhe City Attorney and a Legal Department Administrative Assistant. The City Attorney is hired and supervised by the Kenai City Council. The deadline for receipt of applicafrons is February 1, 2009. Send a detailed resume that includes a history of education and work experience and identifies at least three professional employment references. Candidates also must submit a comprehensive professional. writing sample and cover letter to Lee Salisbury, Legai Department Administs~ative Assistant, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska 996 1 1-7794. Resume and attached information will become public information. The starting salary will be dependent upon qualifications and includes an excellent benefits package. For. more information about this position, call (907) 283-8224. For more information about the City of Kenai, aisit our home page at http://www.ci.kenai.ak.us. 77 clTy aF I{E~vAi LEGAL DEPARTM "NT JOB DESCRIPTION - CITY ATTORISTEY' Position: City Attorney Service Type: Supervisory and Professional-Exempt Definition: This is professional legal and administrative work of a highly responsible nature in directing the legal activities of the City. The City Attorney is the principal executive officer of the Legal Department, serves as the chief legal advisor to the City, and is respansible for providurg legal services far the Council, City Manager, all departments and officials of the City. Responsibilities include pluming, staff"rug and supervising a department for meeting the Iega1 service needs of the City. Work is performed with technical independence subject to compliance with the law and review by the courts. Minimum Qualification: Admission to practice law in the State of Alaska. Desirable Qualifications: I. Considerable experience in the practice of law, including trial litigation and appellate experience in Alaska. 2. Several years of experience in the general pracfice of law in the State of Alaska with some experience in the fields of AIaslca municipal law and real estate law. 3. A thorough knowledge of methods of legal research and legal reference. 4. Knowledge of federal, state and municipal law, as well as civil and criminal law, including the constitutional and statute law pertaining to Alaska municipal governmeztt law. 5. ICnowIedge of legal requirements relating to the authority and functions of City departments. 6. Knawledge of judicial procedures, rules of evidence, and court practice in the state and federal courts in Alaska. 7. Knowledge and skill in Iega1 research, methodology and draftsmanship. 8. Knowledge of established precedents and sources of legal reference applicable to City Legal activities. JOB DESCRIPTION -CITY ATTORNEY Page 1 of 3 78 9. Ability to organize, interpret and apply legal prinoiplas and lmowIedge'Co camplex legal problems in drafting sound legal opinions and in preparation of a wide variety of legal docunents. 10. Ability to communicate clearly and concisely, orally and in writing. I 1. Ability to use computer proficiently and have knowledge of office procedures. 12. Ability to work independently, without close supervision. 13. The ability to establish and maintain effective working relationships with the City Council, Cify Manager, department heads and other public officials, and the general public. Slsseutiat Functions: Administers the Legal Department of the City, including prepuing the budget, monitoring expenditures and preparation of the City Code, and supervising the Legal Administrative Assistant. 2. Performs all legal services of the City, including Chase of legal advisor to d7e Council, City Manager ar~d other City officers. 3. Represents the City in matters, civil and criminal, coming befor© any court or administrative agency. 4. Drafts ordinances and. resolutions requested by the City Council or City Manager. 5. Drafts and approves the form and legal sufficiency of contracts and other similar documents to which the City is a party. 6. Furnishes necessary legal certificates required by state azzd federal agencies. 7. Supervises the work. of outside cotmsel or legal specialists retained by the City. 8. Advises the Council, City Manager and other City persom~el on legal issues. 9. Participates in a wide range of activities related to risk management of the City. 10. Administers collection efforts by the Legal Department. 11. Acts as City prosecutor. 12. Supervises processing of traffe citations by the Legal Department. JOB DESCRIPTION -CITY ATTORNEY Page 2 04'3 79 C)ther Fnnetians: Performs such other duties as may be required by the Council, City Manager and City departments. Physical Demands: While performing the duties of this jab, the employee is frequently required to conununicate orally and to use hands and fingers dexterously to operate ofFice equipment; regularly required to sit; and occasionally required co stand, walk, aiid reach with hands aid arms. Very occasionally required to transport up m 50 pounds. Specific vision abilities required include close vision and tSle ability to adjust focus. Reasonable accommodations n}ay be made to enable individuals with disabilities to perform the essenCial fimctions. Working En~~ironment: Most duties are performed in an office setting. Some duties are perfotlned in a courtroom or public meeting setting. BaEary: The City Attorney's salary is set by the Kenai City Council. Miscellaneous Information: Employment is based on qualifications free of personal and political considerations, with equal opportunity for .alt witlt no restrictions as to race, color, creed, religious affiliations, age ar sex. The City does not discriminate against the qualified disabled in employment. JOB DESCRIPTION -CITY ATTORN)/Y Page 3 of 3 80 INF I IV ITEM i ~ ~ N M ~ ~ i ~ F ~ LL6 I ~ :D 6 ~ 1 ~ i ~ W i 1 P I a W 0 O O N ti O tf1 O O W d N W ~ ~ N <1' n d' V' C'i p. W ~ J a a z O z o d ~ O Y U U C7 ~ ~ a Z z o 0 0 z W ~ z w ~ w ~ _ a ~ ~ ~ J ~ _ '~ U U U a a O ~_ W J O J O p } ~- us LL fL a a LL .~+ Q N W W J U (~ w ~ w O > UJ I- W N W ~ z ~ w O ' V a ~- W 4 ~ W K j W ~ O ~ O ~ Z ~ J ~ ~~QQZ JJ ~ O Z ~ v Z J ° O a ~ r W z~ O w o J ~ O (L ~ W lL X W ~ ~ ~ Q W X h V Y a ~ ~ ~ O ~ o ~' W z a q _U ~ s ~+/ W ~ N O W ~G Q Q 83 Kenai Nordic Ski Club P.O. Box 1821 Kenai, AK 9961.1,.._. _ _. City of Kenai City Council 210 Fidalgo Avenue Kenai, AK 99611 October 28, 2008 To Rick Koch/Kenai City Council: The Kenai Nordic Ski Club requests the privilege of continuing the beach cleaning job during the 2009 dip-netting season. Our club enjoyed the 2008 season, coming together as a group and serving the community. We wish to continue this activity for another year. Without your support we would not be able to build our ski/wax building. The cost for this building will be in excess of $30,000. In addition to other fundraisers our team participates in, the beach cleanup has become a major component in reaching our goal of making a "home" for the Kenai Central High School's Nordic Team. Thank you for your continued support. Sincerely, D'Anna Gibson Head Coach KCHS Nordic Team ACTION E1GEl~T1)~I KENAI CITY COUNCIL -REGULAR MEETING DECEMBER 3, 2008 7:00 P.M. KENAI CITY COUNCIL CHAMH I~ttr~: / 1 www.ci_kenai. ak. u s WORK SESSYON: LIBRARY EXPANSION PRESENTATION/ECI/flyer Archstects -- 5:30 p.m., Council Chambers ITEM A: CALL TO ORDER Pledge of Allegiance Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. John Bost, Mikunda Cottrell & Company -Presentation of the FY2008 Comprehensive Annual Financial Report (20 minutes) Jim McConnell, Ken Duffy -- Frontier Community Services Update. Robert Ruffner, Executive Director, Kenai Watershed Forum -- Convening of the Kenai Peninsula Fish Habitat Partnership. Emily DeForest, Sal Mattero/Friends of the Library -- Presentation/ Library Expansion Project. ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) 1. PASSED UNAMIt~OUSLY. Ordinance No. 2360-2008 -- Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund for Police Drug Abuse Resistance Education (DARE) Expenditures. 2. PASSED UNANIMOUSLY. Ordinance No. 2361-2008 -- Amending the Official Kenai Zoning Map by Rezoning Kenai Peninsula Borough Parcel Number 04701009, the Kenai National Guard Armory (TSNRIIW SEC 6 Seward Meridian KN Commencing at the N1/4 Corner Run S 0 Deg 13 Min E 77.88 Ft Th S 86 Deg OS Min E 35.09 Ft Along the Southerly ROW of the North Kenai Rd to the POB Th S 0 Deg 13 Min E 683.85 Ft Th N 89 Deg 47 Min E 330 Ft Th NO 0 Deg 1J From Conservation (C) to General Commercial (CG). TABLED. NO TIME CERTAIN. Ordinance No. 2362-2008 -- Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa Joe's Subdivision, Chumley Replat From Rural Residential 1 (RR1) to Limited Commercial (LC). 4. POSTPONED, NO TIME CERTAIN. Resolution No. 2008-68 - Approving the Financial Disclosure Statement Form for City of Kenai Municipal Officers and Candidates Pursuant to KMC 1.85. 5. PASSED UNANIMOUSLY. Resolution No. 2008-69 -Approving a Contract to Blazy Construction for the Project Entitled Kenai Visitors Center Heating System Upgrade - 2009 for the Total Amount of $462,551.00. ITEM F: MINUTES *Regular Meeting of November 19, 2008. *Work Session Notes of November 19, 2008. ITEM G: UNFINISHED BUSINESS ITEM Ii: N~tAi BUSINESS APPROVED. Bills to be Ratified APPROVED. Approval of Purchase Orders Exceeding $15,000 ITEM I: COMMISSYON/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks 8v Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini-Grant Steering Committee ITEM J: REPORT OF THE MAYOR ITEM I~: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council YTEM M: PENDYNG LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) Ordinance No. 2347-2008 -- Repealing the Existing KMC 1.15.040 and KMC . 1.15.050(c) Regarding Preparation, Distribution and Publication of the Agenda and Replacing Them with a New Section KMC 1.15.040 Entitled, Agenda and Packet - Development-Preparation-Distribution-Publication-Late Materials. Substitute Ordinance No. 2347-2008 -- Repealing the Existing KMC 1.15.040 and KMC 1.15.050(c) Regarding Preparation, Distribution and Publication of the Agenda and Replacing Them with a New Section KMC 1..15.040 Entitled, Agenda and Packet - Development-Preparation-Distribution-Publication-Late Materials. (Clerk's Note: Ordinance No. 2347-2008 and Substitute Ordinance No. 2347-2008 are pending: The original Ordinance No. 2347-2008 was introduced at tYce September 3, 2008 meeting; a motion to move Substitute Ordinance No. 2347-2008 is on the table from the September 17, 2008 meeting; a motion to postpone (with no time certain) and schedule a work session on the ordinances followed and was passed; and, a work session was scheduled for October I5, 2uv8 in the council chambers.) EXECUTIVE SESSION -- None Scheduled ITEM N: AD.IOURNMENT CITY OF KENAI NOTICE OF PUBLIC HEARING DECEMBER 3, 2008 NGTICE YS HEREBY GIVEN the City of Kenai will conduct a public hearing on the following Ordinance(s) and/or Resolution(sl at its regular meeting of Decemher 3, 2008. Ordinance No. 2360-2008 -- Increasing Estimated Revenues and Appropriations by $2,500 in the General Fund for Police Drug Abuse Resistance Education (DARE) Expenditures. Ordinance No. 2361-2008 -- Amending the Official Kenai Zoning Map by Rezoning Kenai Peninsula Borough Parcel Number 0470].009, the Kenai National Guard Armory (TSNRIIW SEC 6 Seward Meridian KN Commencing at the N 1 / 4 Corner Run S 0 Deg 13 Min E 77.88 Ft Th S 86 Deg OS Min E 35.09 Ft Along the Southerly ROW of the North Kenai Rd to the POB Th S 0 Deg 13 Min E 683.85 Ft Th N 89 Deg 47 Min E 330 Ft Th NO 0 Deg 1) From Conservation (C) to General Commercial (CG). 1. Ordinance No. 2362-2008 -- Amending the Official Kenai Zoning Map by Rezoning Tract A, Papa Joe's Subdivision, Chumley Replat From Rural Residential 1 (RRi} to Limited Commercial (LC). 2. Resolution No. 2008-68 -Approving the Financial Disclosure Statement Form for City of Kenai Municipal Officers and Candidates Pursuant to KMC 1.85. 3. Resolution No. 2008-69 - Approving a Contract to Blazy Construction for the Project Entitled Kenai Visitors Center Heating System Upgrade - 2009 for the Total Amount of $462,551.00. The public hearing will commence at 7:00 p.m., or as soon thereafter as business permits, in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611. All interested persons arc invited to atterxd the meeting and participate in the pubiic discussion. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. Copies of the ordinances are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances may be amended by the Council prior to adoption without further public notice. ~- ~/ue ~~ Carol L. Freas, Kenai City Clerk Posted: Deee'mber 2, 200.8 MAKE PACKETS ~7 COUNCIL PACKET DISTRIBUTION i COUNCIL MEETING DATE: i Ma or/Council ~, Attorney Ta for/5 rin er Clerk Cit Mana er Kebschull/Carver Police De artment Finnnce En ineer Senior Center Air ort v~ Kim Library /~~ Parks & Recreation Clarion Fire De artment Schmidt Mellish Student Re KSRM Y AGENDA DISTRIBUTION DELIVER Council and Student Representative Packets to Police Department Dispatch desk. The Clarion, KSRM, Mellish & Schmidt's Office will pick their pncket up in my office. The portion of the agenda published by the Clarion should be emniled ns soon as possible on pncket day. The camera-rendy agendn c:/myfiles/documents/minutes/agenda form for paper) is emniled to Denise at Peninsu/a C/arion (at email folder Work Session/Special Meetings, or Composition in Contncts or IbeIIC'~acsalaska.net}. Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emniled to me and I hold them in my HTML file. Place information (meeting e-pncket and agenda, resolutions and ordinances for public hearing, etc. on the city's webpage as soon as possible before lenving the office for the weekend. it i i nil vmr 4, 200 Nlikw~da Gotcrell & Co.,, Cn died YnFOc.4uvun~mnem Cmruuimnv A x.+P 11~Iikunda, GeruGed f'uhlie Rccount~ns&Gaiguliwue 1VIII{fll91CI$, COt~Y01I c4i CO. 3601 C Street, Suite 600 Anchorage, AIC 99503 Phone (907)278-8878 Fax (907) 278-5779 November 24, 2008 Honorable Mayor and City Council City of Kenai Kenai, Alaska Honorable Mayor and City Council We are pleased to present this report related to our audit of the financial statements of City of Kenai for the year ended June 30, 2008. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for City of Kenai's financial reporting process. This report is intended solely f.;r the information and use of the City Council and management and is not intended to be and should not be used by anyone other than these specified parties. It wilt be our pleasure to respond to any questions you have regarding this report. We appreciate the opportunity to continue to be of service to City of Kenai. Mikunda, Cottrell, & Co. Page 1 ®ntents Required Communications Summary of Accountsng Estimates Exhibit A -Certain Written Communications Between Management and Our Firm Representation Letter Page 2 Required Communications Statement on Auditing Standards No. 114 requires the auditor to communicate certain matters to keep those charged with governance adequately informed about matters related to the financial statement audit that are, in our professional judgment, significant and relevant to the responsibilities of those charged with governance in overseeing the financial reporting process. The following summarizes these communications. Area Auditor's Responsibility Under Professional Standards Accounting Practices Comments Our responsibility under auditing standards generally accepted in the United States of America has been described. to you in our arrangement letter dated August 5, 2008 Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the City. The City did not adopt any significant new accounting policies nor have there been any changes in existing significant accounting policies during the current period. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significanC accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Alternative Treatments Discussed with Management We did not discuss with management auy alternative treatments within generally accepted accounting principles for accounting policies and practices related to material items during the current audit period. Page 3 Area Management's Judgments and Accounting Estimates Financial Statement Disclosures Audit Adjustments Uncorrected Misstatements Disagreements with Management Consultations with Other Accountants Significant Issues Discussed with Management Difficulties Encountered in Performing the Audit Signif5cant DefDCiencies and Material Weaknesses Comments Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached "Summary of Accounting Estimates". To our knowledge, all necessary disclosures have been included in the footnotes to the financial statements. There were no audit adjustments made to the original trial balances presented to us to begin our audit. There are no uncorrected misstatements to our knowledge. We encountered no disagreements with management over the application of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the nnaneial statements. We are not aware of any consultations management had with other accountants about accounting or auditing matters. No significant issues arising from the audit were discussed or were the subject of correspondence with management. We did not encounter any difficulties in dealing with management during the audit. We did not identify any significant deficiencies or material weaknesses during the audit. Page 4 Area Comments Certain iTi'ritten Communications Copies of certain written communications Between Management and Our Firm between our firm and the management of the City are attached as Exhibit A. Page 5 City of Kenai Summary of Accounting Estimates Year Ended 3une 30, 2008 Accounting estimates are an integral part of the preparation of financial statements and are based upon management's current judgment. The process used by management encompasses their knowledge and experience about past and current events and certain assumptions about future events. You may wish to monitor throughout the year the process used to compute and record these accounting estimates. The following describes the significant accounting estimates reflected in the City's June 30, 2008 financial statements: Area Bad debt expense and allowance for doubtful. accounts Depreciable lives of capital assets Accounting Policy To estimate the amount of uncollectible accounts receivable at year end. To depreciate the cost of capital assets over their estimated useful lives. Estimation Process Based on historical records and actual review of individual accounts at year end. Based on management's estimates using their knowledge of the specific assets, usage, etc. Comments We concur with management's policy. We concur with management's policy. Page 6 Exhibit A -Certain Written Communications Eetween 1Vlanagement and Our Firm Page 7 ~. i K'~~~M -__ f••'#i+.iY.'.. 666"'= ~/ ttieaiyuf ,// EHiAI~ AKA November 24, 2008 Mikunda, Cothell & Co. 3601 "C" Street, Suite 600 Anchorage, AK 99503 rr~aB(Gl~e l~f/IL~VC A PaS~ Gl Gi/ltfz ~ 1ztGlY°P rr llllG FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 ext 221 /FAX: 997-283-3014 In connection with your audit of the basic financial statements of City of Kenai, Alaska as of and for the year ended Tune 30, 2008, we confirm that we are responsible for the fair presentation in the financial statements of financial position, changes in financial position, and cash #lows in conformity with accounting principles generally accepted in the United States of America. We confirm to the best of our knowledge and belief the following representations made to you during your audit. 1. The financiai statements referred to above are fairly presented in conformity with accounting principles generally accepted in the United States of America. 2. There are no organizations that are a part of this reporting entity or with which we have a relationship, as these organizations are defined in Section 2100 of the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards that are component units, 3. We have identified for you all of our funds, governmental functions, and identifiable business-type activities. 4. We have properly classified all funds and activities. S. We have properly determined and reported the major governmental and enterprise funds based on the required quantitative criteria. 6. We are responsible for compliance with ]aws and regulations appiicabde to City of Kenai, including adopting, approving, and amending budgets. Mikunda, Cottrell & Co. Anchorage, AK 99503 Page Two 7. We have identified and disclosed to you all laws and regulations that have a direct and material effect on the determination of financial statement amounts including legal and contractual provisions for reporting specific activities in separate funds. 8. We have identified in the schedules of expenditures of Federal awards and State financial assistance ail such assistance received, both directly and as a subrecipient, in the form of grants, contracts, loans, loan guarantees, property, cooperative agreements, interest subsidies, insurance, or direct appropriations by City of Kenai, Alaska. 9. We have: a. Identified to you all applicable generic compliance requirements. b. Identified to you all applicable agency program requirements. c. Complied with reporting requirements in connection with the expenditure of Federal and State awards identified in the schedules of expenditures of Federal awazds and State financial assistance. d. Determined amounts claimed or used to comply with matching requirements of Federal and State awards identified in the schedules of expenditures of Federal awards and State financial assistance in accordance with guidance provided by OMB Circular P>=8?, °Cost Principles for State and Lecal Governments," And the ®MB's Uniform Administrative Requirements for "Grants and Cooperative Agreements to State and Local Governments." e. With respect to monitoring subrecipients: 1) Identified Federal and State awards made by informing each subrecipient of CFDA title and number where applicable, award name and number, award year, if the award is R&D, and name of Federal agency. If some of this information was not available, we provided the best information available to describe the Federal or State award. 2) Advised subrecipients of requirements imposed on them by Federal and State laws, regulations, and the provisions of contracts or grant agreements as well as any supplemental requirements imposed by City of Kenai. Milcunda, Cottrell & Co. Anchorage, AK 99503 Page Three 3} Monitored the activities of subrecipients as necessary to ensure that Federal and State awards are used for authorized purposes in compliance with laws, regulations, and the provisions of contracts or grant agreements and that performance goals are achieved. 4} Ensured that subrecipients expending $500,000 or more in Federal or State awards during their fiscal year have met Single Audit and OMB Circular No. A-133 requirements for that fiscal year. f. Identified and disclosed to you all amounts that have been questioned, and all known instances of noncompliance with statutory, regulatory and conttactual requirements that could have a material effect on a major Federal or State financial assistance progaam. 10. Information presented in Federal and State financial reports and claims for advances and reimbursements is supported by the books and records from which the basic financial statements have been prepared. 11. We have made available to you: a. All financial records and related data of all funds and activities, including those of all special funds, programs, departments, projects, activities, etc., inexistence at any time during the period covered by your audit, b. All minutes of the meetings of the governing board and committees of board members or summaries of actions of recent meetings for which minutes have nat yet been prepared. c. All communications from grantors, lenders, other funding sources or regulatory agencies concerning noncompliance with: 1) Statutory, regulatory or• contractual provisions or requirements. 2) Financial reporting practices that could have a material effect on the financial statements. 12. We have no knowledge of fraud or suspected fraud affecting the entity involving: a. Management or employees who have significant roles in the internal control. b. Others where the fraud could have a material effect on the financial statements. 13. We acknowledge our responsibility for the design and implementation of programs and controls to provide reasonable assurance that fraud is prevented and detected. Mikunda, Cottrell & Co. Anchorage, AK 99503 Page Four 14. We have no knowledge of any allegations of fraud or suspected fraud affecting City of Kenai received in communications from employees, former employees, analysts, regulators, short sellers, or others. 15. We are aware of no significant deficiencies, including material weaknesses, in the design or operation of internal controls that could adversely affect the entity's ability to record, process, summarize, and report financial data. 16. There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 17. We know of no violations of state or Federal statutory or regulatory provisions, grant or other contractual provisions, or of provisions of local ordinances. 18. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. 19. The following have been properly recorded andlor disclosed in the financial statements: a• Related party transactions, including those with the component units for which City of Kenai is accountable as defined in Section 2100 of the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, and inter-fund transactions, including inter-fund accounts and advances receivable and payable, sale and purchase transactions, inter-fund transfers, long-term loans, leasing arrangements and guarantees, all of which have been recorded in accordance with the economic substance of the transaction and appropriately classified and reported. b. Guarantees, whether written or oral, under which the City is contingently liable. c. Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances. d. Line of credit or similar arrangements. e. Agreements to repurchase assets previously sold. f Security agreements in effect under the Uniform Commercial Code. g. Any other liens or encumbrances on assets or revenues or any assets or revenues which were pledged as collateral for any liability or which were subordinated in any way. h. The fair value of investments. Amounts of contractual obligations for construction and purchase of real property or equipment not included in the liabilities or encumbrances recorded on the books. Milcunda, Cottrell & Co. Anchorage, AK 99503 Page Five j. Any 1'aabilities which are subordinated in any way to any other actual or possible liabilities. k. Debt issue repurchase options or agreements, or sinking fund debt repurchase ordinance requirements. 1. Debt issue provisions. m. All leases and material amounts of rental obligations under long-term leases. n. All significant estimates and material concentrations known to management which are required to be disclosed in accordance with the AICPA's Statement of Position 94-6, Disclosure of Certain Significant Risks and Uncertainties. Significant estimates aa~e estimates at the balance sheet date which could change materially within the next year. Concenta•ations refer to volumes of business, revenues, available sources of supply, or markets for which events could occur which would significantly disrupt normal finances within the next year, o. Authorized but unissued bonds and/or notes. p. Risk financing activities. q. Deposits and investment securities category of custodial credit risk. 20. We are responsible for malting the accounting estimates included in the financial statements. Those estimates reflect our judgment based on our knowledge and experience about past and current events and our assumptions about conditions we expect to exist and courses of action we expect to take. In that regard, adequate provisions have been made. a. To reduce receivables to their estimated net collectable amounts. b. To reduce obsolete, damaged, or excess inventories to their estimated net realizable values. c. To reduce investments, intangibles, and other assets which have permanently declined in value to their realizable values. d. For risk retention, including uninsured losses or loss retentions (deductibles) ath•ibutable to events occurring tluough June 30, 2008 and/or for expected retroactive insurance premium adjustments applicable to periods tlu~ough June 30, 2008. e. For pension obligations, post-retirement benefits other than pensions and deferred compensation agreements attributable to employee services rendered through June 30, 2008. Mikunda, Cottrell & Co. Anchorage, AK 99503 Page Six f. For any material loss to be sustained in the fulfillment of, or from the inability to fulfill, any service commitments. g. For any material loss to be sustained as a result of purchase commitments. h. For environmental clean up obligations. 21. There are no: a. Material transactions that have not been properly recorded in the accounting records underlying the financial statements. b. Violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency. In that regard, we specifacaily aepresent that we have not been designated as, or alleged to be, a "potentially responsible party" by the Federal Environmental Protection Agency or any equivalent state agencies in connection with any environmental contamination. c. Other material liabilities or gain or loss contingencies that are required to be accrued or disclosed by Statement of Financial Accounting Standards No. 5 andlor GASB Statement No. 10. 22. Unless disclosed to you, there have been no complaints filed with or concerning our compliance with the provisions af: a. 1?avis--Bacon Act relative Lo payriieratvf prevail,ng wage rates. h. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1:970 relative to acquisition of real property and the relocation of accupants of acquired property. 23. There ace no unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Statement of Financial Accounting Standards No. 5 and/or GASB Statement No. 10. 24. We have satisfactory title to all owned assets. 25. We have complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 26. Net asset components (invested in capital assets, net of related debt; restricted; and unrestricted} and fund balance reserves and designations are properly classified and, if applicable, approved. Mikunda, CottrelL& Co. Anchorage, AK 99503 Page Seven 27. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis, 28. Revenues are appropriately classified in the statement of activities within program revenues and general revenues. 29. Capital assets, including infrastructure assets, are properly capitalized, reported, and depreciated. 30. Required supplementary information Is properly measured and presented. 31. We have reviewed, approved, and are responsible for overseeing the preparation and completion of the basic financial statements and related notes. We have reviewed, approved, and are responsible for the depreciation schedules. 32 We are not aware of any internal control weaknesses or significant deficiencies that should be reported. We are responsible for establishing and maintaining effective internal control over financial reporting. No events or transactions have occurred subsequent to "the balance sheet date that would require adjustment to, or disclosure in, the financial statements. During the course of your audit, you may have accumulated records containing data which should be reflected in our books and records. All such data have been so reflected. Accordingly, copies of such records in your possession are no longer needed by us. ~ . ~1 Name City Manager Finance Director/ CAA A ®P dB.Gl\tlay t1LAl7 dS[i Federal and State Single Audit Reports Year Ended June 30, 2008 CITY OF KENAI, ALASKA Federal and State Single Audit Reports Table of Contents Paee Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Othes• Matters Based on an Audit of Financial Statements Performed in Accordance with GovernnaentAuditing Standards I-2 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 3-5 Schedule of Expenditures of Federal Awards 5 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with the State of Alaska Audit Guide and Compliance Supplement for State Single Audits 7-9 Schedule of State Financial Assistance 10 Schedule of Findings and Questioned Costs 11-12 Corrective Action Plan 13 ikunjdaQQ,__ Cottrell C~ ~~., Inc. Certified Public Accountants & Consultants RSA ~lGCGladrey Ne~1~~~ Are intleG°-ntle~tty G~wned ttembe: CHices in Ancnorace Z i<.enai Independent Auditor's Report on Internal Control Over Financial Reporting, and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and Members of the City Council City of Kenai, Alaska We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai as of and for the year ended 3une 30, 2008, which collectively comprise the City of Kenai's basic financial statements and have issued our report thereon dated November 24, 2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Kenai's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statemenrs, h„r nor for the pu!-pose of expressing ar. epii:ion on the effectiveness of the City of Kenai's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Kenai's internal control over financial reporting. A control defieiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements Chat is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal eo~ntrol. 3601 "C" Street, Suite 600 ~ Anchorage, Alaska 99503 0(1907) 278-8878 ~ Fax (907) 278-5779 • www.mcc-cpa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Kenai's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the info~~nation and use of the City of Kenai's management, Honorable Mayor and City Council, others within the entity, federal and state awarding agencies, and, if applicable, pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska November 24, 2008 2 l(~~Iil~undaQ,_ ~1®ttrell 6A ~®., Inc. Certified Public Accountants & Consultants ~~, ~~,aa~ntlE,~, o~~,«~ ~,,,~e Offices in Rnchorage & Kenai Independent Auditor's Report on Compliance With Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 Honorable Mayor and Members of the City Council City of Kenai, Alaska Com lip ante We have audited the compliance of City of Kenai, Alaska with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2008. City of Kenai's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of City of Kenai's management. Our responsibility is to express an opinion on City of Kenai's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audi,+ to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Kenai's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Kenai's compliance with those requirements. In our opinion, City of Kenai complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2008. 3601 "C" Street, Suite 600 a Anchorage. Alaska 99503 ~ (907) 278-8878 ^ Fax (907) 278-5779 ~ www.mcc-epa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Internal Control Over Comnliance The management of City of Kenai is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered City of Kenai's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Kenai's internal control over compliance. A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A rruzterial weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood Chat material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described an [he first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over cempliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai as of and for the year ended June 30, 2008, and have issued our report thereon dated November 24, 2008. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purt~oses of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 4 Honorable Mayor and ME:mbers of the City Council City of Kenai, Alaska This report is intended solely for the information and use of Che City of Kenai's management, Honorable Mayor and City Council, others within the entity, federal awarding agencies, and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska November 24, 2008 CITY OF KENAI, ALASKA Schedule of Expenditures of Federal Awards Year Ended June 30, 2008 Federal Grant Title DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through the State of Alaska Department of Health and Social Services: Nutrition, Transportation, and Support Nutrition, Transportation, and Support Passed through the State of Alaska Department of Administration - NSIP-Kenai Senior Services Total Department of Health and Human Services DEPARTMENT OF HOMELAND SECURITY Assistance to Firefighters Passed through the State of Alaska Department of Military and Veteran Affairs: Law Enforcement Terrorism Prevention Program Emergency Operations Center Total Department of Homeland Security DEPARTMENT OF THE INTERIOR Passed through the State of Alaska Department of Natural Resources - Kenai Soccer Park DEPARTMENT OF LABOR Passed through the Stale of Alaska Department of Labor - MASST-Mature Alaskans Seeking Skills Training DEPARTMENT OF JUSTICE Passed through the State of Alaska Department of Public Safety - Asset Forfeiture Sharing DEPARTMENT OF TiiANSr'ORTATiOPd Airport [mprovement -Update Airport Master Plan Phase 2 Airport Improvement -Runway Safety Area Phase 2 Airport Improvement -Runway Safety Area Phase 3 Construct Urea Storage Building Passed through the State of Alaska Department of Transportation and Public Facilities: AK Highway Safety Grant-Training AK Highway Safety Grant-Seat Bel[ AK Highway Safety Grant- DUI AK Highway Safety Grant -Staying on the Road Total Department of Transportation INSTITUTE OF MUSEUM ANll LIBRARY SERVICES Passed through the Stale of Alaska Department of Education and Earty Development- Improving Service to Russian and Spanish Speaking Residents Total Federal Financial Assistance Catalog of Federal Domestic Total Grant Assistance Grat Number Number Award 607-08-111 93.044 $ 35,716 607-08-111 93.045 53,508 607-PA-108 93.053 EMW-2007-FO-10155 97.044 Federal Share of Expenditures 35,716 53,508 12,187 12,187 70],411 51,300 51,300 07LETPP-GR34238 97 .074 58,640 29,290 07SHSP-GR34054 97 .073 243,000 117,876 198,466 02-00383 15 .916 326,548 130,755 2007-420 17 .235 24,631 16,144 - 16. 000 22,137 22,137 3-02-0142-032-2004 20. 106 3.50,498 11,943 3-02-0142-035-2006 20. 106 8,432,329 2,177,923 3-02-0142-037-2007 20. 106 4,539,497 3,939,922 3-02-0142-038-2008 20. 106 488,769 41,570 Dare Program 20. 600 2,000 2,000 4020P 08-04-03 20. 600 13,980 11,044 154AL 08-00-01 20. 600 4,660 2,404 154AL 08-00-13 20. 600 41,604 22,964 6,209,770 1LC-08-747-130 45.310 7,000 7,000 $ 6.685,683 Note 1: Basis of Presentation The Schedule of Expenditures of Federal Awards includes the Federal grant activity of the City of Kenai, Alaska and is presented on the modi€ied acc~tial basis of accounting. The information in the sdxedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Govenvnents, and Naxprofit Organizations. 6 ikunda, G®tlTell O., lnc. Certified Public Accountants & Consultants @4w°PC~~'. i4``LV~L!L!~l-~f 1~$4E V~V[~ Rn InA.GendznPly OwneC N,em6er Offices In Anchorage ~ Kenai Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with the State of Alaska Audit Guide mul Compliance Supplement for State Single Audits Honorable Mayor and Members of the City Council City of Kenai, Alaska Com Hance We have audited the compliance of City of Kenai, Alaska with the types of compliance requirements described in [he State of Alaska Audit Guide and Complimice Supplement for State Single Audits that are applicable to each of its major state programs for the year ended June 30, 2008. City of Kenai's major state programs are identified in the accompanying Schedule of State Financial Assistance. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major state programs is the responsibility of City of Kenai's management. Our responsibility is to express an opinion on City of Kenai's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; Che standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits require Chat we plan and perForm the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements refen-ed to above that could have a direct and material effect on a major state program occurred. An audit includes examining, on a test basis, evidence about City of Kenai's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Kenai's compliance with those requirements. In our opinion, City of Kenai complied, in all material respects, with the requirements referred to above that are applicable to each of its major state programs for the year ended June 30, 2008. 3501 "C" Street, Suite 600 • Anchorage, Alaska 99503 ~ (907) 278-8878 • Fax (907} 278-5779 ^ www.mcc-cpa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Internal Control Over Compliance The management of City of Kenai is responsible for establishing and maintaining effective intemal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to state programs. In planning and performing our audit, we considered City of Kenai's intemal control over compliance with the requirements that could have a direct and material effect on a major state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of intemal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Kenai's internal control over compliance. A control deficiency in an entity's Internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a state program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a state program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a state program thaC is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a state program will not be prevented or detected by the entity's internal control. Onr consideration of intemal conrrni nyer compliance was fnr the limited pt: Yose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of State Financial Assistance We have audited the financial statements of Che governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai as of and for the year ended June 30, 2008, and have issued our report thereon dated November 24, 2008. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise City of Kenai's basic financial statements. The accompanying Schedule of State Financial Assistance is presented for purposes of additional analysis as required by the State of Alaska Audit Guide and Compliance Supplemerxt for State Single Audits and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements Caken as a whole. 8 Honorable Mayor and Members of the City Council City of Kenai, Alaska This report is intended solely for the information and use of the City of Kenai's management, Honorable Mayor and City Council, and the State of Alaska, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska November 24, 2008 9 CITY OF KENAI, ALASKA Schedule of State Financial Assistance Yeaz Ended June 30, 2008 Total State Grant Share of State Grant Title Cirant Number Award E_px enditures DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT Street Improvement Program 03=MG-026 $ 142,569 6,609 Shop Site Remediation Project OS-RR-005 151,314 12,560 Kenai Public Improvements 06-DC-127 29Q000 293 *Kenai Road and Sewer Improvements ~ 06-DC-128 790,000 98,574 *Municipal Energy Assistance Program - 397,460 397,460 Kenai Water and Sewer System Improvement Projects 4/96-003 355,976 71,342 Kenai Senior Center Building OS-DC-092 50,000 49,996 *Mara[hon Drive Construction 08-RR-025 1,150,139 206,595 Municipal Roadway Paving O8-RR-024 888,562 36,861 Wildwood Drive Reconstruction O8-RR-026 529,541 38,887 Public Safety Garage 08-DC-299 150,000 14,557 Boa[ Launch Parking Area Paving OS-DC-462 70,000 23,055 Shared Fisheries Business Tax - 2,466 2,466 Shared Fisheries Landing Tax - 141 141 Water Quality and Quantity Development 98/587-4-001 147,180 10.769 Total Department of Commerce, Community and Economic Development 970,165 DEPARTMENT OF ADMINISTRATION *State PERS Relief - 783,721 783.721 DEPARTMENT OF ENVIRONMENTAL CONSER`IATiON Wellhouse4 47547 1,697,000 _ 38.792 DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT Public Library Assistance PLA-08-747-40 6,350 6,350 DEPARTMENT OF HEALTH AND SOCIAL SERVICES Nutrition, Transportation, and Support 607-08-t 11 15,745 15.745 DEPARTr~IENT OF TP.ANSPORTATION AND PUBLIC FACILITIES "Wildwood Correctional Center Waste System Upgrade 50783 480,000 403,543 Update Airport Master Plan -Phase 2 58353 9,224 314 *Runway Safety Area Phase 3 50947 119,461 103,683 Runway Safety Area Phase 2 53305 221,903 57,313 Urea Storage Building 12,863 1,094 Total Department of Transportation and Public Facilities 565,447 DEPARTMENT OF REVENUE Liquor Licenses - 26,675 26,675 Electric and Telephone Shared Revenues - 30,703 30,703 *Raw Fish Tax - 129,443 129,443 Aviation Fuel Tax - 19,179 19,179 Total Department of Revenue 206,000 Total Stale Financial Assistance $ 2,586,720 * Major program Note I: Basis of Presentation The Schedule of State Financial Assistance includes the State grant activity of the City of Kenai, Alaska and is presented on the modifie acemal basis of accounting. The information in the schedule is presented in accordance wiCn the requirement's of OMB Circular A-133, Audits of States, Locad Governments, and Nonprofit Organi2ations, and tfte State of Alaska Audit Guide and Compliance Suspptenaewt for State Single Audits. 10 CITY ®F KENAI, ALASKA Schedule of Findings and Questioned Costs Year Ended June 30, 2008 I. Summary of Auditor's Results Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes X none reported • Noncompliance material to financial statements noted? yes X no Federal Firaanciat Assistance Internal control over major programs: • Material weakness(es) identified? yes X no • Significant deficiency(ies) identified that are not considered to be material weakness(es)? yes X none reported Type of auditor's report issued on compliance for major programs? Unqualified Any audit findings disclosed that are required to be reported In arrnrrlapee with section S t (1(al of Circular A-133? ._ yes X no Identification of major programs: CFDA Agency Number Name of Federal Program or Cluster Department of Transportation 20.106 Airport Improvement Program Dollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? State Finaneial,9ssistance Internal control over major programs: • Material weakness(es) identified? • Significant deficiency(ies) identified that are not considered to be material weakness(es)? $300,000 X yes no _ yes X no yes X none reported 11 CITY OF KENAI, ALASKA Schedule of Findings and Questioned Costs, continued Summary of Auditor's Results, continued State Financial Assistance continued Type of auditor's report issued on compliance for major programs? Unqualified Dollar threshold used to distinguish a state major program? II. Financial Statement Findings None noted. IILFederal Award Findings and Questioned Costs None noted. I'L'. State Award Findings and Questioned Costs None noted. $75,000 12 CITY OF KENAI, ALASKA Corrective Action Plan Year Ended June 30, 2008 There are no current year findings; therefore, no corrective action plan is required. 13 City of Kenai, Alaska. Comprehensive Annual Financial Report F"r isc J PR HENSIiOE NNU ~ FINANCIAL REPORT F THE CITY F FCE9V1; LASK Year nde June 0, 200 Pat Porter Mayor Rick R. Koch City Manager Prepared by Finance Department Terry A. Eubank, CPA Finance Director CITY OF KENAI, ALASKA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2008 INTRODUCTION SECTION Paae Table of Contents i Letter of Transmittal 1 GFOA Certificate of Achievement 5 Organizational Chart 6 List of Principal Officials 7 FINANCIAL SECTION Auditor Report Report of Independent Accountants 9 Management's Discussion and Analysis 11 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets 19 Statement of Activities 20 Fund Financial Statements Balance Sheet, Governmental Funds 21 Statement of Revenues, Expenditures, and Changes in Fund Balance, Governmental Funds 22 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances 23 of Governmental Funds to the Statement of Activities General Fund -Statement of Revenues, Expenditures, and Changes in Fund Balance - 24 Budget and Actual Airport Land System Special Revenue Fund -Statement of Revenues, Expenditures, and 31 Changes in Fund Balance -Budget and Actual Statement of Net Assets -Proprietary Funds 33 Statement of Revenues, Expenses, and Changes in Fund Net Assets -Proprietary Funds 34 Statement of Cash Flows -Proprietary Funds 35 Footnotes 37 t Other Governmental Funds Paae Combining Balance Sheet -Nonmajor Governmental Funds 52 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance- 54 Nonmajor Governments! Funds PRISM Special Revenue Fund -Schedule of Revenues, Expenditures, and Changes in Fund 56 Balance -Budget and Actual Senior Citizens Special Revenue Fund -Schedule of Revenues, Expenditures, and Changes 57 in Fund Balance -Budget and Actual Council on Aging Special Revenue fund -Schedule of Revenues, Expenditures, and Changes 58 in Fund Balance - Budget and Actual Water and Sewer Special Revenue Fund -Schedule of Revenues, Expenditures, and Changes 59 in Fund Balance -Budget and Actual General Government Land sales -Schedule of Revenues, Expenditures, and Changes in Fund 61 Balance -Budget and Actual Airport Land Sales Permanent Fund- Schedule of Revenues, Expenditures, and Changes in 62 Fund Balance -Budget and Actual STATISTICAL SECTION Table I -Net Assets by Component 63 Table II -Change in Net Assets 64 Table III -Governmental Activities Tax Revenue by Source 66 Table IV -Fund Balances of Governmental Funds 67 i. Table V -Changes in Fund Balances of Governmental Funds $8 Table VI -General Governmental Tax Revenues by Source 69 ' - Table VII -Taxable Sales by Category 70 Table VIII -Sales Tax Rates -Direct and Overlapping Governments 71 Table IX -Ratio of Outstanding Debt by Type 72 ' '' Table X -Computation of Direct and Overlapping Debt 72 Table XI -Legal Debt Margin Information 73 Table XII -Demographic and Economic Statistics 74 Table XIII -Principal Employers 75 Table XIV -Full-time Equivalent City Government Employees by Function 76 Table XV -Operating Indicators by Function 77 Table XVI -Capital Asset Statistics by Function 7$ ii ~z ~~r', ~ti t , _ -~ ~. ttieuyof KENAI~ SKIT November 24, 2008 Honorable Mayor Pat Porter, City Council Members and Citizens of the City of Kenai, Alaska "Village witti a Past, Gity ivit~t a Fr~ture° 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 !FAX: 907-283-3014 www.ci.kenai.ak.us In accordance with Section 29.35,120 of the Alaska Statutes and the City Charter, we are pleased to submit the Comprehensive Annual Financial Report for the year ended June 30, 2008. The financial statements were prepared in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This report consists of management's representations concerning the finances of the City of Kenai. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Citys comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Mikunda, Cottrell & Co., a firm of independent certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2008 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended June 30, 2008, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of broader State and federally mandated "Single Audits" designed to meet the special needs of State and federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with certain IegaB requirements, with special emphasis on internal controls and legal requirements involving the administration of federal and state awards. These reports are available in the City's separately issued Single Audit Reports. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the City of Kenai The City was incorporated in 1960 as a home rule city and its charter was adopted May 20, 1963. The City occupies a geographic area of approximately 45 square miles located in the south central part of the state of Alaska. Major city services include police, fire, ambulance, airport, street maintenance, recreation, parks, building inspection, water and sewer, dock, cemetery and library. Funding for the City General Fund, by order of financial significance, is provided from sales tax, property tax, state revenue, interest earnings, federal revenue, and other sources. Other funds rely on service charges, interest, grants and other sources. The City operates under acouncil -manager form of government. Policy-making and legislative authority are vested in a governing council consisting of six members and the mayor. The city manager, attorney and clerk are appointed by the council. The council and mayor are elected on anon-partisan basis. Council members serve three-year staggered terms, with 2 members elected each year and are elected at large. The mayor is elected at large and serves athree-year term. The city manager is the City's chief executive officer and is responsible for carrying out the policies and ordinances of the City, for overseeing the day-to-day operations of the government and for hiring the heads of the various departments. Budgetary Control The annual budget serves as the foundation for the City's financial planning and control. All departments submit budgets to the city manager on or about 4he last Monday in February. The city manager uses these requests for developing a proposed budget. The city manager submits the proposed budget to the council at the first regular council meeting in April. The council is required to hold public hearings on the proposed budget and generally adopts the budget by ordinance at the first meeting in June. The city manager is authorized to make budget transfers within a fund for amounts less than $5,000. Council action is required for transfers between funds., for transfers exceeding $5,000 and for new appropriations. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an annual budget has been adopted. Factors Affecting Financial Condition Economy The primary private sector portions of Kenai's economy are oil and gas, commercial fishing, tourism and retail sales. The future holds challenges for oil and gas and commercial fishing in the Cook Inlet region. Gas supplies in quantities needed for liquefied natural gas (LNG) and fertilizer production are projected to run out in this decade if new supplies are not made available through discovery or pipelines from other production areas. Fertilizer production stopped with the closure of the plant in October 2007 due to limited availability of natural gas. The impact on the Kenai economy because of job loss is not yet known. Same of the displaced employees have stayed in the area finding work on the North Slope, which has mitigated the impact. A feasibility study was completed to assess the viability of coal gasification as an alternative to natural gas. Unfortunately the study determined that the project was not economically feasible at this time. A gas pipeline from the North Slope to Cook Inlet would greatly enhance the viability of the industrial complex. The State of Alaska is working with the gas producers and other interested entities to develop a gas pipeline, but when a gas line will be built is not known at this time. Chevron, Shell and Forest Oil are all making significant investments in this region. ', The proposed Pebble Mine, which is across Cook Inlet from Kenai, continues to be in the news for its world class prospects for copper, gold and molybdenum. Actual production will be years in the future, but Kenai's airport could be a much busier place if the project gets all of the permits required for operation. Commercial fishing has had some good years recently in terms of production. Prices however remain near historic lows. Fishing is expected to continue to be an important component of the Kenai economy. Tourism continues to be strong in the summer months. The unique dipnet fishery at the mouth of the Kenai River, where thousands of Alaskans catch a year's supply of sockeye salmon in July, makes Kenai a busy and very popular place. Accessible beaches, beautiful scenery, fishing and abundant historic sites all recommend Kenai as a great destination for tourists on the Kenai Peninsula. Sales tax is the largest revenue source for the City: Retail sales businesses generate the largest share of sales tax revenue. This sector is vibrant and growing in Kenai with construction of a new Lowe's home improvement center near completion and site work underway for a new Super Walmar4 with construction scheduled for the summer of 2009. Overall, the projection for the economy of Kenai is optimistic. Kenai is situated in a beautiful area with abundant land and natural resources, an accommodative business climate, and a stable population base. Long term financial planning General Fund fund balance increased over a million dollars in FY 2008 to $11 million which represents approximately one year of expenditures. This healthy fund balance provides options for the City and generates interest income that can be used for operations. One of the larger financial challenges facing the City is our contribution to the Public Employees Retirement System (PERS). Beginning in FY 2008, employers paid a maximum of 22% of payroll and the State is paying the difference to the actuarially required rate. Employer members of the PERS system worked with the State legislature for a long term solution to this problem. In April 2008 the Alaska Legislature passed Senate Bill 125 which converts the existing Public Employees Retirement System (PERS) from an agent-multiple employer plan to acost-sharing plan. Under the cost-sharing arrangement, the State of Alaska Division of Retirement and Benefits will no longer track individual employer assets and liabilities. Rather, all plan costs and past service liabilities will be shared among all participating employers. The cost-sharing plan will require a uniform employer contribution rate of 22% or less of active member wages, subject to a wage floor. In addition, the legislation provides for state contributions in the event that the annually calculated and board adopted rate, which includes a provision to pay down the past-service liability, exceeds 22%. Any such additional contributions would be recognized by each employer as an on-behalf payment. As a result of this change, the City will not be obligated to pay or to continue amortizing the currently recorded Net Pension/OPEB obligation. As such, these liabilities will be written off and the City will recognize an extraordinary gain on the legislation's effective date, July 1, 2008. The City is actively pursuing economic development opportunities. With the construction of Lowe's and Walmart, Kenai will see substantial increases in traffic and sales. The long-term financial outlook is positive. Cash management policies and practices The City utilizes a central treasury to aggregate cash from all funds for cash management and investment purposes. Interest income on investments is allocated to participating funds based on average equity balances. The City Code of Ordinances authorizes investment in obligations of the U. S. Treasury, its agencies and instrumentalities, repurchase agreements, fully collateralized certificates of deposit, money market mutual funds and the Alaska Municipal League Investment Pool, Inc. The City Code of Ordinances also places limitations on maturity of investments. Risk Management The City's risk management program is designed to protect against accidental losses that would significantly affect personnel, property, or City finances. The City purchases commercial general liability and property insurance through the Alaska Public Entities Insurance Pool. The City risk management plan includes employee 4raining to reduce employee injuries and claims. Pension and Other Postemployment Benefits The City provides pension benefits for all eligible employees through the State of Alaska Public Employees Retirement System (PERS). The City has no obligations in connection with employee benefits offered through this plan beyond its annual required payment to the pension plan. Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Kenai for its comprehensive annual financial report for the fiscal year ended June 30, 2007. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Acknowledgment The preparation of this Comprehensive Annual Financial Report in a timely manner was accomplished with the efficient and dedicated service of the entire staff of the Finance Department. Due credit should also be given to the City Council for their efforts in planning and conducting the financial operations of the City in a responsible manner Respectfully submitted, i~och Ci Mana er tY 9 ~~ ~e ~~~. Terry A. ubank, CPA Finance Director Certificate of Achievement for Excellence 111 Financial Reporting Presented to CIt~ Of K£Xl.al Alaska. For its Comprehensive Annual Financial Report for the Fiscal Year Ended Zune 34, 2447 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose wrnprehcrisive armuai imanciai reports (CAFRs) achieve the highest standards in government accounting. and financial reporting. ,ice ofs.~ l.„,..„~%~'~~. ~. ~ °o darts ~~a$ President . arrcM•a Executive Director 5 City of Kenai Organization Chart COMMISSIONS Airport Harbor Parks and Recreation Library Planning and Zoning I CITY CLERK I FINANCE PARKS & REC. PUBLIC WORKS CITIZENS CITY COUNCIL BOARDS COUNCILS AND COMMITTEES Council on Aging Beautification Comm. Personnel Arbitration Board I CITY ATTORNEY I CITY MANAGER FIRE POLICE LIBRARY SENIOR CENTER A{RPORT 6 CITY OF KENAI, ALASKA ORGANIZATION AND PRINCIPAL CITY OFFICIALS The City of Kenai was founded in 1791. It is located south of Anchorage on Cook Inlet in the Central Kenai Peninsula. The City is 161 highway miles from Anchorage. By air, Kenai is three hours from Seattle and thirty minutes from Anchorage. Kenai was the site of the first major oil strike in 1957 and has served as a center for exploration and production since that time. Commercial fishing and processing contribute to the economy. Kenai adopted the Council Manager form of government in 1963 and has been operating under this form since that time. The City Council, together with appointed City officials, meets the first and third Wednesday of each month in the City Administration Building for regular Council sessions. In addition, numerous special meetings and work sessions are scheduled throughout the year. The Council, which consists of the Mayor and six council members, is selected at large and on anon-partisan basis. Annual elections are held in October. The terms of office are three years but are overlapping so that the City is provided with a continuity of knowledge in City business and legislative matters. City Council Mayor Council Members Pat Porter Robert Molloy Rick Ross Linda Swarner Mike Boyle Hal Smalley Barry Eldridge City Administration City Manager Finance Director City Clerk City Attorney Police Chief Fire Chief Public Works Manager Librarian Parks & Recreation Director - Acting Airport Manager Senior Center Project Director Term Ends 2010 2009 2009 2008 2008 2010 2010 Rick R. Koch Terry A. Eubank Carol L. Freas Cary R. Graves Charles Kopp Mike Tilly Wayne Ogle Mary Jo Joiner Robert Frates Mary Bondurant Rachael Craig 7 AUDITOR REPORT adreyP~twak An Independently Owned Member Oticesin Fv~chorage 8 Kenai Independent Auditor's Report Honorable Mayor and City Council City of Kenai, Alaska We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Kenai, Alaska as of and for the year ended June 30, 2008 which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management Our responsibility is to express opinions on these fuiancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whethei the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activifies, each major fund, and the aggregate remaining fund information of the City of Kenai, Alaska, as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof and the respecfive budgetary comparison for the General Fund and Airport Special Revenue Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 24, 2008 on our consideration of City of Kenai's internal control over fuianeial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 3601 "C" Street, Suite 600 ~ Anchorage, Alaska 945Q3 * (907J 278-8878 * Fax (9tY7) 278-5779 ~ www.mcc-cpa.corn Honorable Mayor and City Council City of Kenai, Alaska The Managemont's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Kenai's basic fmancial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and ate not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been audited by us and accordingly, we express no opinion on them. Anchorage, Alaska November 24, 2008 10 IVitON,4GEMERIT'S DISCUSSIOhI P,ND ~4N~4LYSIS Management's Discussion and Analysis As management of the City of Kenai, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the City of Kenai for the fiscal year ended June 30, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our fetter of transmittal. Financial Hiahliahts • The assets of the City of Kenai exceeded its liabilities at June 30, 2008 by $158,025,638. Of this amount; unrestricted net assets of $19,370,402 may be used to meet the government's ongoing obligations to citizens and creditors. A significant portion of this legally unrestricted amount has been designated for specific purposes. The City's total net assets increased by $12,201,234. Governmental type activities increased by $12,270,023 and business type activities decreased by $68,789, • As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $39,931,913 an increase of $6,686,230 from the prior year. Approximately $5.4 million of this increase is the result of land sales to Walmart and Lowe's Corporations by the Airport Land Sales Permanent Fund. The fund balances of the two permanent funds, which cannot be spent, account for $19.9 million of total fund balance. About $5.8 millicn of the remaining fund balance is reserved or designated. The remaining $14.2 million is available for spending. • At the end of the current fiscal year, fund balance for the General Fund was $11,004,219. Of this amount $8,046,524 was unreserved, undesignated and available for spending. • The City has along-term liability for contaminated soils remediation of $1.4 million, compensated absences of $658,180 and a net pension obligation of $1,215,280. The net pension obligation is due to the fact that although the City paid the contribution rate required by the Public Employee's Retirement System, that rate was less than the rate that the PERS actuary recommended for the prior three years. In April 2008 the Alaska Legislature passed Senate Bill 125 which converts the existing Public Employees Retirement System (PERS) from an agent-multiple employer plan to acost-sharing plan. Under the cost- sharing arrangement, the State of Alaska Division of Retirement and Benefits will no longer track individual employer assets and liabilities. Rather, all plan costs and past service liabilities will be shared among all participating employers. The cost-sharing plan will require a uniform employer contribution rate of 22% or less of active member wages, subject to a wage floor. In addition, the legislation provides for state contributions in the event that the annually calculated and board adopted rate, which includes a provision to pay down the past-service liability, exceeds 22%. Any such additional contributions would be recognized by each employer as an on-behalf payment. As a result of this change, the City will not be obligated to pay or to continue amortizing the currently recorded Net Pension/OPEB obligation. As such, these liabilities will be written off and the City will recognize an extraordinary gain on the legislation's effective date, July 1, 2008. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Kenai's basic financial statements. The City of Kenai's basic financial statements are comprised of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The basic financial statements include two kinds of statements that present different views of the City's activities: Government-wide financial statements provide both short-term and long-term information about the City's overall financial condition in a summary format. • Fund financial statements focus on individual parts of the City, reporting the City's operations in more detail than the government-wide statements. The form of fund financial statements 11 presented herein is only slightly changed from the reporting model that we have used for many years. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of KenaPs finances in a manner similar to a business enterprise. The statement of net assets presents information on all of the City's assets and liabilities. Net assets -the difference between assets and liabilities - is one way to measure the City's financial position. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. There are other non-financial factors, such as the condition of facilities, roads and other infrastructure that should be considered in evaluation of overall financial condition. The statement of activities presents information showing how government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of Kenai include general government, public safety, public works, parks and recreation and culture, dock, airport, water and sewer and social services. The business-type activities of the City include the congregate housing facility. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Kenai can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near- term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between the two. Four of the City's governmental funds are considered major funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the major funds including: the General Fund; the Airport Special Revenue Fund; the Airport Land Sales Fund, which is a permanent fund; and the Airport Improvement Capital Project Fund. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. A budgetary comparison statement has been provided for the General Fund and the Airport Special Revenue Fund to demonstrate compliance with the Fiscal Year (FY) 2008 budget. 12 Proprietary funds. The City of Kenai maintains two different types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for the Congregate Housing Facility. Information for this fund is presented in the proprietary statement of net assets and the proprietary statement of revenues, expenses and changes in fund net assets. Internal service funds are used to accumulate and allocate costs internally among the City's various functions. The City of Kenai uses an internal service fund to account for the purchase of heavy equipment that is primarily used by the General Fund. Because these services predominantly benefit governmental rather than business type functions, they have been included within governmental activities in the government-wide financial statements but are presented separately in the proprietary fund financial statements. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain other supplementary information. The combining statements referred to earlier in connection with non-major funds are presented immediately after the basic financial statements. Also included are budget comparisons for governmental funds other than the General Fund. Government-wide Financial Analysis. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. At June 30, 2008, the City's assets exceeded liabilities by $158,025,638. By far the largest portion of the City's net assets reflects its investment in capital assets. The following table provides a summary of the City's net assets: iJet Assets (in thousands) Governmental Activities Business-T ype Activities Total 2008 2007 2008 2007 2008 2007 Current and other assets $ 43,280 $ 38,147 $ 624 $ 566 $ 43,904 $ 38,713 Capital assets 115 402 109.806 3.212 3,337 118 614 113 143 Total assets 158.682 147.953 3.836 3.903 162.518 151.856 Long-term liabilities outstanding 3,269 3,267 5 6 3,274 3,273 - Other liabilities 1,188 2.730 31 29 1.219 2.759 Total liabilities 4,457 5.997 36 35 4,493 6.032 Net assets Invested in capital assets 115,402 109,806 3,212 3,337 118,614 113,143 Restricted 20,041 14,478 - - 20,041 14,478 Unrestricted 18.782 17.671 588 532 19.370 18.204 Total net assets 5 225 141 955 8 0 8 9 025 145 824 minor arithmetic differences are du e to rounding 13 Governmental activities. Governmental activities increased the City's net assets by $12,270,023. Key elements of this increase are: ® Revenue was up substantially, $6.9 million, in FY 2008 primarily due to the sale of land to the Walmart and Lowe's Corporations ($5.6 million) and increased tax revenues ($0.7 million). Capital grant receipts remained comparable to last fiscal year and were $7.5 million. Expenses were also higher than last year by $0.6 million. ® The City does not budget to cover all expenses including depreciation. In order to replace significant capital assets in the future the City will likely rely on external financing sources, such as debt or grants. Business-type activities. Business-type activities reduced the net assets of the City by $68,789. Key elements of this decrease are the Congregate Housing Enterprise Fund had negative net income again this year. The Congregate Housing Facility rates are not set high enough to cover the cost of depreciation on the facility which was built primarily with grant funds. Changes in Net Assets. The City's total revenues and expenses for governmental and business-type activities are reflected in the following chart: Changes in Net Assets (in thousands) Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Safes taxes Sale of capital assets Other Total revenues Expenses: General government Public safety Public works Parks, recreation, and cultural Water and sewer services Airport Social welfare services Senior Housing Total expenses Governmental Activities Business-Type Activities Total 2008 2007 2008 2007 2008 2007 $ 4,599 $ 4,238 $ 300 $ 279 $ 4,899 $ 4,517 1,983 1,198 2 1 1,985 1,199 7,545 8,064 - - 7,545 8,064 2,347 2,156 - - 2,347 2,156 5,196 4,632 - - 5,196 4,632 5,474 105 - - 5,474 - 1.910 1,968 30 29 1,940 1.997 29,054 22.256 332 309 29 386 22,564 1,950 1,387 - - 1,950 1,387 4,803 4,539 - - 4,803 4,539 2,199 2,395 - - 2,199 2,395 1,573 1,577 - - 1,573 1,577 2,200 2,644 - - 2,200 2,644 3,492 3,416 - - 3,492 3,416 598 528 - - 598 528 370 364 370 364 16.815 16,486 370 860 17,185 16.850 14 Increase (decrease) in net assets before transfers Transfers Change in net assets due to conversion of enterprise fund to a special revenue fund Increase (decrease) in net assets Net assets beginning Net assets ending 12,239 5,770 (38) (55) 12,201 5,715 31 2,063 (31) (2,063) - - - 1.503 (1.503) 12,270 9,336 (69) (3,621) 12,201 5,715 141.955 132.619 3.869 7,490 145.824 140.109 154 225 141 955 ~ $ 3 869 15 ~14~ minor arithmetic differences are due to rounding Financial Analysis of the City's Funds The City of Kenai uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds. The purpose of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing 4he City's financing requirements. in particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The total fund balance of governmental funds is $39,931,913, which is up $6,686,230 from last year. About $14.2 million of fund balance is unreserved, undesignated fund balance, which is available for spending at the City Council's discretion. The remainder of fund balance, $25.7 million, is reserved or designated to indicate that it is not available for new spending. The largest portion of this, $19.9 million is in the two permanent funds, which do not allow spending of fund balance. The General Fund is the chief operating fund of the City of Kenai. At the end of the current fiscal year, unreserved, undesignated fund balance of the General Fund was $8,046,524, and total fund balance was $11,004,219. Fund balance increased $1,039,112 in the current year. As a measure of liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved, undesignated fund balance represents 71% of total expenditures and transfers, while total fund balance represents 98% of that same amount. The General Fund has a very healthy fund balance. General Fund expenditures are up $1,048,250 over last year. The City increased payroll expenditures primarily for a cost of living adjustment, increased health insurance costs and increased contributions to the retirement system. Total General Fund expenditures for personal services were $7.72 million in the current year, up from $6.95 million last year. The primary revenue sources of the General Fund include property tax of $2,331,712, sales tax of $5,196,046, interest of $689,485 and charges to other funds of $1,064,900. Sales tax is up $564,234 over last year due to general improvement in the economy, interest is up $10,114. Intergovernmental revenues increased $683,810 with most of that increase the result in additional State of Alaska funding to pay for the difference in the actuarial determined contribution rate into the State of Alaska Public Employees Retirement System and the city's required contribution rate of 22%. The increase over the prior year was $450,138. Total revenues were up $2,218,856 from last year. Tax revenues support General Fund operations exclusively and represent 25% of all governmental fund revenue. The mill rate for property tax was unchanged at 4.5 for FY 2008. Other funds rely heavily on charges for services and interest revenue. Interest revenue in the governmental funds is comparable to the prior year due to stable but higher interest rates. Capital projects funds and the senior services related funds are largely financed by grants from the federal, state and borough governments. The Airport Special Revenue Fund accounts for the operation of the airport. Fund balance decreased by $124,276. Absent the prior year transfer from the Terminal Fund to the Airport Fund, the prior year fund balance 15 decrease would have been $660,000: The $535,000 improvement is the result of increased revenues of $93,244, decreased expenditures of $241,891, and unspent capital project funds of completed capital projects being transferred back to Airport operations $152,536. Proprietary funds. The City of Kenai maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Congregate Housing Fund is the only enterprise fund. It is reported in the proprietary fund financial statements and as a business type activity in the government-wide financial statements. Internal service funds are used to accumulate and allocate costs among the City's various functions. The City of Kenai has one internal service fund the purpose of which is to account for the purchase of equipment costing more that $50,000. The Equipment Replacement Fund charges the primary user department in the General Fund such that the General Fund reimburses the Equipment Replacement Fund over the useful life of the asset. Because these services predominantly benefit governmental rather 4han business type functions, they have been included within governmental activities in the government-wide financial statements but are presented in a single column in the proprietary fund financial statements. At year-end Congregate Housing Fund unrestricted net assets were $588,044. Net assets decreased $68,789 for the year. Revenues are simply insufficient to cover expenses -especially considering depreciation. It is anticipated that net assets will continue to decline. General Fund Budgetary Highlights The General Fund appropriations budget was amended by the City Council during the year by $580,138. Appropriations associated with grants and donations totaled $20,498. Appropriations of fund balance were made for capital projects totaling $41,910; for the purchase of land $260,000; for repairs to the City's Training Facility $110,000 and for miscellaneous operating items of about $147,000. Actual revenues were $964,899 higher than the final budget, a variance of about 8.6%. Sales tax contributed $458,046 of the positive variance, interest was $129,485 over budget, special assessments were $141,454 over budget, building permits were $80,035 over budget, and other miscellaneous revenue was $155,879 over budget. The actual expenditures and transfers out were $1,087,958 less ±han budgeted. It should be noted that encumbrances at year-end totaled $200,645. The City typically does not spend the entire authorized appropriation, the variance this year was about 8.80% of final budget compared to 8.36% last year. Nearly half of the lapsed appropriation is from personal services. Major components of the variance within personal services include wages, $113,000 and PERS $70,000 -primarily due to open positions; and health insurance, $185,000 - the City continues to see benefit from switching to a high deductible plan. Capital Assets and Debt Administration Capital assets. A4 June 30, 2008 the City's capital assets had a total net book value of $118,614,337. Governmental activities Yotaled $115,402,136 and business-type activities totaled $3,212,201. Additional information on the City's capital assets can be found in the notes to the financial statements at'Section III. Detailed Notes on All Funds' C. Capital Assets. Debt administration. The City had no outstanding debt at year-end. There are long-term liabilities for contaminated soils remediation of $1,400,000, compensated absences of $658,180 and net pension obligation of $1,215,280. Additional information on the City's Tong-term debt can be found in the notes to the financial statements at 'Section III. Detailed Notes on All Funds' E. Changes in long-Term Obligations. 16 Requests for information. This financial report is designed to provide a general overview of the City of Kenai`s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska 99611. 17 BASIC FINANCIAL STATEMENTS CITY OF KENAI, ALASKA STATEMENT OF NET ASSETS JUNE 30, 2008 Governmental Business-type Activities Activities Total ASSETS Equity in central treasury (cash and cash equivalents) Receivables (net of allowances for uncollectibles) Inventory Land Property and equipment in service Accumulated depreciation Construction in progress Total assets $ 39,507,702 $ 623,433 $ 40,131,135 3,740,845 - 3,740,845 31,692 - 31,692 5,766,596 274,500 6,041,096 145,488,575 4,915,806 150,404,381 (52,876,324) (1,978,105) (54,854,429) 17,023,289 - 17,023,289 $ 158,682,375 $ 3,835,634 $ 162,518,009 LIABILITIES Accounts payable Unearned revenue Other liabilities Long-term liabilities: Due within one year Due in more than one year Total liabilities NET ASSETS Invested in capital assets Restricted for: Nonexpendable: Airport Land Sale Permanent Fund General Government Land Sale Permanent Fund Unrestricted Total net assets $ 929,069 $ 4,498 $ 933,567 114,544 2,880 117,424 144,842 23,078 167,920 185,D00 - 185,000 3,083,527 4,933 3,088,460 4,456,982 35,389 4,492,371 115,402,136 3,212,201 118,614,337 17,508,885 - 17,508,885 2,532,014 - 2,532,014 18,782,358 588,044 19,370,402 $ 154,225,393 $ 3,800,245 $ 158,025,638 See Accompanying Notes to Financial Statements 19 °o N W n `1 F S z 7 7 aQo W z O ~ Wy. 2 W ~ ~ W } ~ } U f = w r O LL 'O C N N d d ~ ~ d Q tC Z '/.-1 C d N VI N C ~ 6 C % N w~ U d z W M W i~ W 'Q M h O I~ M (D r ~- ? V OD M f~ N O to O~ M (~ rn O V I~ u1 M M O M V u) M rn In sT N u) O O O N V' V N V tD I~ vi W W '- Oi Oi of r ca t~ cD ri o IN ~ d' ui Po O W W rn h O N W t0 ~ d' Q~ i~ V N O N N N O N ~ ~ M (O f~ M ~ C rn rn N M O ~"' ....~..~..r. V N V N N N ~- V N y' u7 6? V! y O O O rn~ d' 'U p. (O cD !~ O N W M d' N N N '' ' M N .- t~ O N '~d r r d~ ~ OJ Oi O N w O O MM (~~ W ~a m H3 fR ro mwnmvM r r Mco 00 o Mo M R M I~ N O M O~ M M (O V f~ M O O N r rn C N V u) M 07 tf1 V N uJ u) 0 0 OJ O~ u) O M M v v ~ ui o3 co rn m o3 05 t~ ui ri o .= ro dui u~ E~~- N ONm~MN (MO (O M m V rnM W N W N ~ bi fA N M O M O r W rn C M N~ M O C O ' V~ 0 0' ~ R r N I~ V V h u) ~ ~+ ~ r M. r tN[1 M t~ ~ ~ ~ ca r r '. C (~ O U es F» N ~ W ~ V~ 6~i O V N 'O 0 h V' M N .- V' M M r c ._ ca r ~ r co ~i N ui F~ M O U) t0 V OJ M w~ ~~- v rn m G v ` ~ U 44 (A y Orl N [~O ~ tp V V ~ (MO N ~ N y co M rn<ornv~ r cn M 'E a m uinN doimh d rn d ~ ~? ~ V iN[J N MM1 M N ~ N W N N .- v v c ~ R d ~ ~ U NI es es w w ~ m ~ p~ d N Po C N~ OI ~ u) b N O M M N ~ u1 O ~ d A .- R C N G ~ m O~ m~ N R N 'Otl ~ ~ Y ~ 'd ~ G C 4 N d 6~iW rnLJrnV~W M W d~~U `Wm~N ~-- V N ~ N M fD I~ N O y _ d N N d "R- p L UNi Ni W G~ N R C C- U N l0 f9 (H d 0. (n N ~ N ~ ~ z z N ~ ~ - ~ W U U_ y (l N ~ Z ~ R N _ C ry N ~ C ~ ~:?E c~ m m '> s U E ~ ?i N E U OI G R Y> .Z' y N N N N N N E a~~ m 3 °' m 3 rn ~_ ~ E p c 0 U V N N 0 !° t6 ry O ~ d N~ ~ N Po~ pU O G~ c oC~aaa~"¢rn ~ ~cn o W ~ m ~ w C E v m m U C LL O N Z m c N E U Q 20 CITY OF KENAI, ALASKA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2008 Airport Airport Airport Total Special Land Sales Improvement Other Governmental General Revenue Permanent Capital Project Governmental Funds ASSETS Equity in central treasury (rash and cash equivalents) $ 9,240;877 $ 5;231,872 $ 17,401,038 $ 80,926 $ 6,205,721 $ 38,160,434 Receivables (net of allowancesfor uncollectiblesj 2,392,575 66,474 107,847 540;346 633;603 3,740,845 Due from other funds 231,735 - - - - 231,735 Inventory 31 692 31,692 Total assets $ 11,896,879 $ 5,298,346 $ 17,508,885 $ 621,272 $ 6.839,324 $ 42,164,706 LIABILITIESAND FUND BALANCES liabilities: Accounts payable $ 145,132 $ 49,397 $ - $ 536,587 $ 197,953 $ 929,069 Due to other funds - - - - 231,735 231.735 Deferred revenue 709,521 84,316 107;847 - 25,463 927.147 Other liabilities 38,007 12,700 94,135 144,842 Total liabilities 892,660 146,413 107,847 536,587 549,286 2,232,793 Fund balances Reserved for: Encumbrances 200,645 136,633 - - 13,371 350,649 Capital improvements 850,746 - - - - 850,746 Land sale permanent funds - - 17,401,038 - 2,508,551 19,909,589 Inventory 31,692 - - - - 31,692 Unreserved: Designated. General fund 1;874,612 - - - - 1,874,612 Special revenue funds - 730,226 - - 87,301 817,527 Capital projects funds - - - 84,685 1,770,907 1,855,592 Undesignated: General fund 8,046,524 - - - - 6,046,524 Special revenue funds 4,285,074 1,909,908 6,194,982 Total fund balances ii.004,2'i9 5.151,933 i7,40i,038 84,685 6.290,038 39,931,913 Total liabilities and fund balances $ 11.896,879 $ 5,298.346 $ 17,508,885 $ 621,272 $ 6.839,324 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and are not reported in the funds. 114,608,424 Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 812,603 Some liabilities, including soil remediation, net pension obligation and compensated absences are not payable in the current period so they are not reported in the funds. (3;268,527) Internal service funds are used by management to charge the cost of certain activities to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net assets. 2.140,980 Net assets of governmental activities $ 154,225,393 See Accompanying Notes to Financial Statements 21 CITY OF KENA1, ALASKA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 Airport Airport Airport Total Special Land Sales Improvement Other Governmental General Revenue Permanent Capital Project Governmental Funtls Revenues: Taxes $ 7,527,758 $ - $ - $ - $ - $ 7,527,758 Intergovernmental revenues 1,417,602 66,170 - 6,346,357 1,697,156 9,527,285 Charges for services 2,022,938 127,814 - - 1,957,342 4;108,094 Interest revenue 689,485 971,333 11,540 - 170,032 1,842,390 Miscellaneous revenues 580,258 838484 5,623,413 650 130,382 7,173,187 Total revenues 12,238.041 2.003,801 5,634.953 6,347,007 3,954,912 30,178,714 Expenditures: Current: General government 2,586,591 - - - - 2,586,591 Public safety 4;899,317 - - - - 4,899,317 Public works 2,106,810 - - - - 2,106,810 Parks, recreaYlon, and cultural 1,404,077 - - - - 1,404,077 Water and sewer services - - - - 1,539,907 1,539,907 Airport - 2,291,903 - - 235,196 2,527,099 Social welfare services - - - - 603,771 603,771 Capital outlay 6,509,376 1,347,036 7,856,412 Total expenditures 10,996,795 2,291,903 6.509,376 3,725,910 23.523,984 Excess of revenues over (under)expenditures 1,241,246 (288,102) 5,634,953 (162,369) 229,002 6,654,730 Other financing sources (uses): Transfers in 72,507 274,076 - 61,250 871,496 1,279,329 Transfers out (274641) (11.540) (152,536) (698.862) (1.247,829) Net other financing sources (uses) (202,134) 163.826 (11,540) (91,286) 172,634 31,500 Net changes in fund balances 1,039,112 (124,276) 5,623,413 (253,655) 401,636 6.686,230 Fund balances-July1 9,965,107 5,276,209 11.777.625 338,340 5,888,402 33.245,683 Fund balances-June 30 $ 11,004,219 $ 5,151,933 $ 17,401,038 $ 84,685 $ 6.290.038 $ 39,931,913 See Accompanying Notes to Financial Statements 22 CITY OF KENA1, ALASKA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2008 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances -total governmental funds $ 6,686,230 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation (net of asset deletions) in the current period. 5,387,445 Special assessment revenues, taxes, land sales and ambulance services reported in the governmental funds are not revenues of the current period usinc the flow of financial resources basis. 132,250 Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,594) Internal service funds are used by management to charge the cost of certain activities to individual funds. The net revenue of certain activities of the internal service fund is reported with governmental activities. 65,692 Change in net assets of governmental activities See Accompanying Notes to Financial Statements $ 12,270,023 23 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 Variance With Final Budget Original Final Positive Budget Budget Actual Ne ative Revenues: Taxes: General property $ 2,226,500 $ 2,226,500 $ 2,289,101 $ 62,601 General sales 4,738,000 4,738,000 5,196,046 458,046 Penalty and interest on taxes 23,500 23,500 42,611 19,111 Total taxes 6,988,000 6,988,000 7,527,758 539,758 Intergovernmentalrevenues: Federal grants - 109,940 80,590 (29,350) Kenai Peninsula Borough 48,000 48,000 48,480 480 State of Alaska shared revenues: Electric utility tax 30,000 30,000 30,703 703 Fish tax 100,000 100,000 132,050 32,050 Liquor licenses 20,000 20,000 26,675 6,675 Municipal assistance 397,460 397,460 397,460 - State of Alaska grants: Library grants - 14,350 13,350 (1,000) Other 691,825 744,563 688,294 (56,269) Total intergovernmental revenues 1,287,285 1,464,313 1,417,602 (46,711) Charges for services: Fees and charges: Ambulance fees 250,000 250,000 290,058 40,058 Multipurpose facility charges 75,000 86,457 90,606 4,149 Administrative and service fees 1,064,900 1,064,900 1,064,900 - Other 134,000 134,000 174,743 40,743 Total fees and charges 1,523,900 1,535,357 1,620,307 84,950 Licenses and permits: Building permits 150,000 150,000 230,035 80,035 Animal control licenses and fees 13,500 13,500 35,726 22,226 Other 5,000 5,000 5,029 29 Total licenses and permits 168,500 168,500 270,790 102,290 Fines and forfeits: Court fines 80,000 80,000 67,124 (12,876) Library fines 15,000 15,000 16,585 1,585 Other forfeitures 1,850 47,727 48,132 405 Total fines and forfeits 96,850 142,727 131,841 (10,886) Total charges for services 1,789,250 1,846,584 2,022,938 176,354 See Accompanying Notes to Financial Statements 24 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Revenues, continued: Interest revenue Miscellaneous revenues: Rents and leases Library donations Oil and gas royalties Special assessments Other Total miscellaneous revenues Total revenues Expenditures: General government: Legislative: Personal services Supplies '. Other services and charges Total legislative Cify clerk: Personal services Supplies Other services and charges Capital outlays Total city clerk City attorney: Personal services Supplies Other services and charges Total city attorney See Accompanying Notes to Financial Statements Variance With Final Budget Original Final Positive Bu of Budget Actual Ne ative $ 560,000 $ 560,000 $ 689,485 $ 129,485 40,900 40,900 47,724 6,824 2,000 2,000 1,513 (487) 100,000 100,000 95,925 (4,075) 16,000 16,000 157,454 141,454 233,285 255,345 277,642 22,297 392,185 414,245 580,258 166,013 11,016,720 11,273,142 12,238,041 964,899 42,922 42,922 42,883 39 3,693 6,173 4,585 1,588 92,434 91,076 83,164 7,912 139,049 140,171 130,632 9,539 135, 685 135, 685 131, 501 4,184 13,73D 14,330 8,201 6,129 43,540 42,940 31,352 11,588 22,000 22,000 21,293 707 214,955 214,955 192,347 22,608 218,044 218,044 206,480 11,564 1,800 1,800 950 850 17,995 17,995 14,882 3,113 237,839 237,839 222,312 15,527 25 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Variance With Final Budget Original Final Positive Bud et Budget Actual Ne ative Expenditures, continued: General government, continued: City manager: Personal services $ 185,653 $ 185,270 $ 190,499 $ (5,229] Supplies 2,600 2,443 1,921 522 Other services and charges 12,475 16,015 16,522 (507) Total city manager 200,728 203,728 208,942 (5,214) Finance: Personal services 362,423 361,520 348,715 12,805 Supplies 11,100 12,442 10,947 1,495 Other services and charges 18,190 17,751 17,179 572 Total finance 391,713 391,713 376,841 14,872 Non-departmental: Personal services 691,824 691,824 649,882 41,942 Supplies 16,700 18,700 10,241 8,459 Other services and charges 450,110 375,708 324,521 51,187 Capital outlays 16,000 16,000 - 16,000 Totalnon-departmental 1,174,634 1,100,232 984,644 115,588 Planning and zoning: Personal services 161,383 161,383 154,907 6,470 Supplies 8,613 8,014 6:520 1,494 Other services and charges 20,979 31,579 21,796 9,783 Total planning and zoning 190,975 200,976 183,223 17,753 Safety: Supplies 1,250 1,250 22 1,228 Other services and charges 8,510 8,510 2,678 5.832 Total safety 9,760 9,760 2,700 7,060 Land administration: Supplies 700 700 571 129 Other services and charges 16,912 30,112 17,879 12,233 Capital outlays - 266,500 266,50D - Total land administration 17,612 297,312 284,950 12,362 Total general government 2,577,265 2,796,686 2,586,591 210,095 See Accompanying Notes to Financial Statements ;.... 26 CITY OF KENA1, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Expenditures, continued: Public safety: Police: Personal services Supplies Other services and charges Capital outlays Total police Fire: Personal services Supplies Other services and charges Total f re Communications: Personal services Supplies Other services and charges Capital outlays Total communications Animal control: Personal services Supplies Other services and charges Capital outlays Total animal control Total public safety See Accompanying Notes to Financial Statements Variance With Final Budget Original Final Positive Budget Budget Actual Ne ative $ 1,904,267 $. 1,881,430 $ 1,805,824 $ 75,606 53,807 143,399 123,987 19,412 125, 581 139,140 122, 397 16, 743 62,500 61,000 60,820 180 2,146,155 2,224,969 2,113.028 111,941 1,708,939 1,705,883 1,609,845 96,038 62,125 138,609 138,364 245 136,739 126,399 116,403 9,996 1,907,803 1,970,891 1,864,612 106,279 634,682 632,682 564,811 67,871 7,137 10,787 10,716 71 33,625 31,975 24,737 7,238 - 58,640 29,290 29,350 675,444 734,084 629,554 104,530 191,175 191, 000 189,821 1,179 10, 730 12, 205 10, 547 1, 65 8 71,381 71,581 70,177 1,404 24,000 22,500 21,578 922 297,286 297,286 292,123 5,163 5,026,688 5,227,230 4,899,317 327,913 27 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES iN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Variance With Final Budget Original Final Positive Budget Budget Actual tNeaativel Expenditures, continued: Public works: Public works administration: Personal services $ 199,991 $ 204,991 $ 184,119 $ 2Q872 Supplies 6,200 6,920 5,207 1,713 Other services and charges 7.050 7,220 2,741 4,479 Total public works administration 213,241 219,131 192,067 27,064 Shop: Personal services 292,673 292,673 276,552 16,121 Supplies 257,600 286,602 268,069 18,533 Other services and charges 128,025 124,025 100,873 23,152 Total shop 678,298 703,300 645,494 57,806 Streets: Personal services 525,072 525,072 449,373 75.699 Supplies 73,800 73,800 50,058 23,742 Other services and charges 139,375 164,175 122,124 42,051 Total streets 738,247 763,047 621,555 141,492 Dock: Personal services 60,496 60,496 68,467 (7,971) Supplies ^' X10 81,51D 52,E'3 '8837 Other services and charges 23,900 23,900 21,942 1,958 Total dock 125,906 165,906 143,082 22,824 Buildings: Personal services 220,696 220,696 206,285 14,411 Supplies 27,120 30,120 22,455 7,665 Other services and charges 163,730 168,979 127,282 41,697 Capital outlays 41,740 41,740 23,832 17.908 Total buildings 453,286 461,535 379,854 81,681 Street lighting: Supplies 18,359 18,359 2,495 15,864 Other services and charges 160,837 160,836 122,263 38,573 Total street lighting 179,196 179,195 124,758 54,437 Total public works 2,388,174 2,492,114 2,106,810 385,304 See Accompanying Notes to Financial Statements !.. j 28 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Variance With Final Budget Original Final Positive Budaet Budaet Actual Ne ative Expenditures, continued: Parks, recreation, and cultural: Library: Personal services $ 423,765 $ 423,765 $ 399,688 $ 24,077 Supplies 22,210 46,270 17,698 28,572 Other services and charges 164,055 177,405 154,618 22,787 Total library 610,030 647,440 572,004 75,436 Visitors center. Supplies 1, 800 1, 800 1, 788 12 Other services and charges 120,600 120,600 110,538 10,062 Total visitors center 122,400 122,400 112,326 10,074 Recreation: Personal services 82,484 82,276 77,510 4,766 Supplies 4,110 5,335 4,980 355 Other services and charges 311,830 334,128 303,332 30,796 Capital outlays 12,668 6,651 6,488 163 Total recreation 411.092 428,390 392,310 36,080 Parks: Personal services 147,553 147,553 117,596 29,957 Supplies 23,740 39,804 46,049 (6,2451 Other services and charges 69,834 63,628 59,154 4,474 Capital outlays 25,000 27,250 10,920 16,33D Total parks 266,127 278,235 233,719 44,516 Beautifcation: Personal services 39,678 39,678 45,036 (5,358) Supplies 22,570 31,970 31,923 47 Otherservices and charges 14,310 8,513 5,662 2,851 Capital outlays 7,500 11,097 11,097 - Total beautification 84,058 91,258 93,718 (2,460) Total parks, recreation, and cultural 1,493,707 1,567,723 1,404,077 163,646 Total expenditures 11,485,834 12,083,753 10,996,795 1,086,958 See Accompanying Notes to Financial Statements 29 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Net other financing sources (uses) Net changes in fund balance Fund balance -July 1 Fund balance -June 30 See Accompanying Notes to Financial Statements Variance With 'Final Budget Original Final Positive Budget Budget Actual Ne ative $ (469,114) $ (810,611) $ 1,241,246 $ 2,051,857 45,157 45,157 72,507 27,350 (37,000) (275,641) (274,641) 1,000 8,157 (230,484) (202,134) 28,350 $ (460,957) $ (1,041,095) 1,039,112 $ 2,080,207 $ 9,965,107 $ 11,004,219 30 CITY OF KENAI, ALASKA ', AIRPORT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGETANDACTUAL YEAR ENDED JUNE 30, 2008 Revenues: Intergovernmentalrevenues: Federal grant State grant Total intergovernmental revenues Charge for services - Landingfees Interest revenue Miscellaneous revenues: Rents and leases, including penalty and interest Fish hauling rents Parking fees Car rental commissions Advertising commissions Other Total miscellaneous revenues Total revenues Expenditures: Maintenance and operation: Personal services Supplies Other services and charges Capital outlays Variance With Final Budget Original Final Positive Budget Budget Actual Ne ative $ 9,130 $ 9,130 $ - $ (9,130) 55,383 19,677 66,170 46,493 64,513 28,807 66,170 37,363 85,000 85,000 127,814 42,814 690,000 665,000 971,333 306,333 493,500 493,500 495,231 1,731 3,000 3,000 3,441 441 100,000 70,000 115,977 45,977 185,000 130,000 187,324 57:324 6,000 6,000 7,581 1,581 22,600 40,100 28,930 (11,170) 810,100 742,600 838,484 95,894 1,649,613 1,521,407 2,003,801 482,394 261,443 154,828 328,265 20, 000 261,368 254,478 6,890 159,902 145,079 14,823 343,266 291,510 51,756 Expenditures chargeable from other funds Total maintenance and operation Administration: '. Personal services Supplies Other services and charges Expenditures chargeable from other funds Total administration See Accompanying Notes to Financial Statements 764,536 764,536 691,067 73,469 757,800 757,800 757,800 1,522,336 1,522,336 1,448,867 73,469 183,840 155,998 146,185 9,813 5,620 5,620 4,014 1,606 48,608 48,608 24,773 23,835 238,068 210,226 174,972 35,254 39,200 39,200 39,200 277,268 249,426 214,172 35,254 31 CITY OF KENAI, ALASKA AIRPORT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 continued Expenditures, continued: Administration, continued: Land: Personal services Supplies Other services and charges Capital outlays Total land Training facility: Supplies Other services and charges Total training facility Terminal: Personal services Supplies Other services and charges Capital outlays ExpendRures chargeable from other funds Total terminal Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Net other financing sources (uses) Net changes in fund balance Fund balance - July 1 Fund balance - June 30 Variance With Final Budget Original Final Positive Budget Budget Actual Ne ative $ 47,093 ~ 74,910 $ 74,061 $ 849 16,500 16,186 20,480 (4,294) 65,853 60,953 6,289 54,664 32,125 32,464 24,142 8,322 161,571 184,513 124,972 59,541 - 4,900 1,305 3,595 - 133,000 23,742 109,258 137,900 25.047 112,853 90,601 90,601 85,570 5,031 16,100 19,100 17,640 1,460 342,728 339,728 321,935 17,793 20,000 zo,ooo zo,ooo 469,429 469,429 425,145 44,284 53,700 53,700 53,700 - 523,129 523,129 478,845 44,284 2,484,304 2,617,304 2,291,903 325,401 (834,691) (1,095,897) (288,102) 807,795 21,500 28,500 274,076 245,576 (52,000) (110,250) (110,250) - (30,500) (81,750) 163,826 245,576 $ (865,191) $ (1,177,647) (124,276) $ 1,053,371 5,276,209 $ 5,151,933 See Accompanying Notes to Financial Statements 32 CITY OF KENAI, ALASKA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2008 Governmental ASSETS Current assets: Equity in central treasury Noncurrent assets: Property and equipment in service, at cost: Land Buildings Equipment Total property and equipment in service Less accumulated depreciation Net property and equipment in service Total assets LIABILITIES Current liabilities: Accounts payable Other liabilities Unearned revenue Total current liabilities Noncurrent liabilities: Compensated absences Net pension obligation Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets Unrestricted Total net assets Business-type Activities- Activities- Internal Service Enterprise Fund Fund Congregate Equipment Housing Replacement $ 623,433 $ 1,347,268 274,500 - 4,915,806 - 1,166,802 5,190, 306 1,166,802 (1,978,105) (373,090) 3,212,201 793,712 $ 3,835,634 $ 2,140,980 $ 4,498 $ 23,078 2,880 _ 30,456 1,299 3,634 _ 4,933 35.389 3,212,201 793,712 588,044 1,347,268 $ 3,800,245 $ 2,140,980 See Accompanying Notes to Financial Statements 33 CITY OF KENAI, ALASKA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2008 Operating revenues: Rents and leases Other revenue Total operating revenues Operating expenses: Personal services Supplies Utilities Repair and maintenance Insurance Depreciation Manager's fee Miscellaneous Expenses chargeable from other funds Total operating expenses Operating loss Nonoperating revenues: Intergovernmental grants Interest revenue Total nonoperating revenues Income (loss) before contributions and transfers Transfer out Change in net assets Net assets -July 1 Net assets -June 30 Business-type Activities - Enterprise Fund Congregate Housing Governmental Activities - Intemal Service Fund Equipment Replacement $ 299,563 $ - - 54,727 299,563 54,727 25.144 - 8,082 - 63,606 - 82,358 - 12,800 - 125,299 56,725 22,950 - 2,426 - 2ssoo - 369,565 56,725 (70,002) (1,998) 2,342 - 30,371 67,690 32,713 67,690 (37,289) 65,692 (31,500) - (68,789) 65,692 3,869,034 2,075,288 $ 3,800,245 $ 2,140,980 See Accompanying Notes to Financial Statements 34 CITY OF KENAI, ALASKA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2008 Cash flows from operating activities Receipts from customers Payments to suppliers Payments to employees Payments for intertund Services Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Transfer out State grant Net cash provided (used) by noncapital financing activities Cash flows from investing activities Interest on investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending Reconciliation of operating Toss to net cash provided (used) by operating activities: Operating loss Adjustments to reconcile operating loss to net cash provide by (used in) operating activities: Depreciation Accounts receivable Accounts payable Compensated abscences Other liabilities antl deferred revenues Net cash provided by operating activities: Business-type Governmental Activities - Activities -Internal Enterprise Fund Service Fund Congregate Equipment Housing Replacement $ 299:563 $ - (190,322) (78,335) (26,100) - (26,900) 54,727 56,241 (23,608) (31,500) - 2, 342 (29,158) - 30,371 67.690 57,454 44,082 565.979 1.303.186 $ 623,433 $ 1,347,268 $ (70,002) $ (1,998) 125,299 58,725 1,450 - (956) - 450 $ 56,241 $ 54,727 See Accompanying Notes to Financial Statements 35 FOOTNOTES TO FINANCIAL STATEMENTS CITY OF KENAI NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 SUMMARY OF SIGNIFICANT ACCOUNTING POLBCIES A. Reporting Entity The City of Kenai (City) was formed by a Home Rule Charter on May 20, 1963 under the provisions of Alaska Statute, Title 29, as amended. The City operates under acouncil-manager form of government and provides the following services: public safety (police and fire), public improvements, airport, dock facility, water and sewer, library, senior citizen, recreation, parks, planning and general administrative services. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting principles of the government are described below. B. Government-wide and Fund Financial Statements The Government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues along with user fees, are reported separately from the business-type activities, which rely to a significant extent on fees and charges for support. The effect of any interfund activity, for the most part, has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who use, purchase, or directly benefit from the goods, services or privileges provided by a given segment or function and includes restricted grants and contributions that are restricted to meeting the operations or capital requirements of a particular funOtion ^r segment. Taxes and Oilier Gems nOt properly included in program ievenues are reported as general revenues. Major individual governmental and proprietary funds are reported as separate columns in the fund financial statements. C. Measurement focus and basis of accounting and financial statement presentation The Government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of cash flows. Grants and similar programs are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Net assets are reported as restricted when constraints placed on the net asset use are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislations. Governmental fund type financial statements are reported using the current financial resources measurements focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible in the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments and compensated absences, are recorded only when payment is due. 37 Taxes, charge for services, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessment receivables due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measured and avaliabie only when received by the government. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Airport Special Revenue Fund accounts for activities of the airport except for land sales. It relies on user fees and investment interest to finance operations. The Airport Land Sales Permanent Fund accounts for sales of airport land. All principal proceeds of any land sold are held in this fund and may not be spent. Interest earned on land sale contracts is transferred to the Airport Special Revenue Fund. Investment interest generated by the cash balance of this fund is recorded in the Airport Special Revenue Fund. The Airport Improvement Capital Project Fund accounts for capital projects that are airport related. Primary funding sources are federal arants and transfers from the Airport Specia! Revenue Fund. Additionally the City reports the following fund types: Proprietary Funds -the City uses one enterprise fund to account for activities that are intended to be supported by user fees. The Congregate Housing Enterprise Fund accounts for the activities of the senior housing project. Internal Service Fund -the Equipment Replacement Fund is an internal service fund. it accounts for the purchase of equipment costing more than $50,000 that will be used by General Fund departments on a cost-reimbursement basis. Private-sector standards of accounting and financial reporting issued prior tc December 1, 1383, generally are followed in both the Government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The City has the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the Government-wide financial statements. Exceptions to this general rule are charges between the City's enterprise functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise fund and of the City's internal service fund are charges to customers for sales and services. Operating expenses for enterprise funds and internal service fund include the cost of sales and services, 38 administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Use of accounting estimates: The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting period. Actual results could differ from those estimates. D. Assets, liabilities and net assets or equity 1. Cash and cash equivalents The City maintains a central treasury for most of its cash and cash equivalents, which is utilized by all funds. For the purposes of these financial statements, the City of Kenai considers highly liquid investments that are readily convertible to cash, with an original maturity of three months or less, to be cash equivalents. Investment income is recorded in the Genera! Fund, except that interest earned on cash held in the Water and Sewer Special Revenue Fund, the Airport Special Revenue Fund (including cash in the Airport Land Sales Permanent Fund and airport related capital project funds), the Congregate Housing Enterprise Fund and the Internal Service Fund is recorded in these funds. 2. Inventories Inventories are valued at cost, which approximates market, using the first-in/first-out method. The costs of inventories are recorded using the consumption method. 3. Receivables and payables Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred tc as either "due tG Other furidS" Or °due fY`Oin Other TUndS~ (f.e., 4he current portion of interfund loans). 4. Restricted assets Monies or other resources, the use of which is restricted by legal or contractual requirements are recorded as restricted assets. 5. Capital assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business type activities columns in the Government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000. All infrastructure assets, including those acquired prior to June 30, 1980, are reported. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. 39 Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, and equipment of the City, is depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings costing more than $50,000 50 Buildings costing Tess than $50,000 25 Building improvements 25 Water and sewer infrastructure 50 Street infrastructure 30 Heavy equipment 20 Other equipment 10 Office equipment 5 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation benefits. The City makes annual appropriations for the amount of leave expected to be used, which is available to employees at essentially their discretion. Each employee is allowed to accumulate up to 80 days of annual leave at the end of a calendar year, with any excess accumulation paid in cash in the following January. All vacation pay is accrued when incurred in the Government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee terminations or in situations where the leave is used but not yet paid. All funds, except the internal service and capital project funds, will be utilized to liquidate the liability for compensated absences. The most significant, due to the fact that it has the largest payroll, is the General Fund. 7. Long-term obligations In the Government-wide financial statements and proprietary fund type financial statements, long-term debt and other Tong-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. In the fund financial statements, governmental fund types recognize long-term debt obligations only when due. 8. Fund equity In the fund financial statements, governmental fund types report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental fund types, except the Capital Project Funds which adopt project-length budgets. All annual appropriations lapse at a fiscal year end. Budgets for the general fund, special revenue funds, debt service funds, permanent funds and enterprise funds are annual budgets. Capital project fund budgets are project-length budgets. The Equipment Replacement Fund, which is an internal service fund, is not required to have a budget. The City Council approves all asset acquisitions from this fund by resolution. 40 Annual budgets must be submitted to the City Council by the City Manager during or prior to the sixth week preceding the first day of each fiscal year. The City Council must adopt an annual budget and set the tax rates not later than the tenth day of June for the following year. Budgetary control (the level at which expenditures may not exceed budget) is maintained at the object class level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which would result in an overrun of object class balances are not released until additional appropriations are made available. Amendments to appropriations may be made by the city administration by transfers within a fund in amounts less than $5,000. Other amendments, including supplemental appropriations, may be made by the City Council. The City Council authorized supplemental appropriations during the year in capital projects funds, special revenue funds and the general fund. General fund supplemental appropriations were $580,138. The majority of this was to appropriate state and federal grants received during the year and for transfers to capital project funds. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at yearend are reported as reservations of fund balances and do not constitute expenditures or liabilities. These commitments will be reappropriated and honored during the subsequent year. III. DETAILED NOTES ON ALL FUNDS A. Deposits and investments The City maintains a central treasury that is available for use by all funds. Each fund type's portion of the central treasury is displayed on the balance sheet or statement of net assets as "Equity in Central Treasury'. At year-end, all of the City's bank deposits were either insured or collateralized with securities held by the City's agent in the City's name. The City's investment policy authorizes the City to invest in: (a) obligations of the United States or an agency or instrumentality of the United States; (b) certificates of deposit with banks and savings and loan aSSCCiahonS; (C) repurCtiaSe agreements; (d} imOney maiRet mUtUal funds COriSlSting primarily of obligations of the United States or an agency or instrumentality of the United States, or repurchase agreements collateralized with such obligations; and (e) the Alaska Municipal League Investment Pool (AMLIP). Generally, investment maturities cannot exceed five years from the date of purchase. Repurchase agreements must be collateralized with United States government obligations. Certificates of deposit must be insured or collateralized with obligations of the United States or its agencies or instrumentalities. Collateral must be held by a third party trustee. The City complied with its investment policy throughout the year. J The AMLIP is an external investment pool which is not SEC registered. Alaska Statute 37.23 establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized investments and reporting. On a monthly basis the investments in the pool are reviewed for fair value by an independent pricing service. The values of investments in the AML pool are approximately equal to fair value. The fair value of the City's investments at year-end are shown below. The AMLIP Pool is uncategorized. All of the City's remaining investments are in the category of least risk and include investments that are insured or registered in the City's name, or securities that are held by the City or its agent in the City's name. All of the United States treasury bills, treasury notes, and United States agency securities are held in a custodial account in the Wells Fargo Trust Department, and are recorded in its internal records in the City's name in accordance with a safekeeping agreement. Wells Fargo is not a counter party to security transactions. 41 The City maintains an interest bearing checking account, which had a bank balance of $1,020,120 and a carrying value of $619,212 at year-end. The City also holds a $20,000 certificate of deposit and a checking account with a balance of $773. These deposits are insured for the first $100,000 and the balance is collateralized by securities held by a third party custodian in the City's name. As of June 30, 2008, the Ci4y had the following investments and maturities. Investment U.S. Agencies AMLIP Total Fair Value Less than 1 year 1 to 2 years 2 to 5 years $38,762,616 $3,015,560 $23,647,406 $12,099,650 718.843 718,843 $39.481.459 $3 734 403 $23 647 406 12.099.650 Interest Rate Risk. The fair values of the City's fixed-maturity investments fluctuate in response to changes in market interest rates. Increases in prevailing interest rates generally translate into decreases in fair values of those instruments. Fair values of interest rate sensitive instruments may be affected by the creditworthiness of the issuer, prepayment options, relative values of alternative investments, the liquidity of the instrument, and other general market conditions. The City manages interest rate risk by requiring specific percentages of the portfolio to be invested within certain time periods and policy limits the longest maturity to five years. The policy requires 20% of the portfolio to be invested for Tess than one year and no more than 30% of the portfolio can be invested longer than two years. Option Risk. Option risk is the risk that an investment's counterparty may exercise a right embedded in the investment-an embedded option. The City invests in securities issued by U.S. Government Agencies that contain call options. About $20 million or 60% of the agency securities contain call options. The exercise of the call option by the counterparty occurs during times of declining interest rates; therefore the City is exposed to the risk of having to reinvest at a lower interest rate. In the table above, securities are placed in the time period according to the final maturity regardless of call option dates. If call options were exercised at the next possible call date; many of the callable securities would mature in less than one year. The agency securities maturity schedule restated to show maturities as of the earliest call dates is as follows: Less than 1 1 to 2 2 to 5 Investment Fair Value year years years U.S. Agencies $38,762,616 $33,675,426 $4;070,630 $1,016,560 Concentration Risk. The City's investment policy places no limit on the amount that can be invested in any one issuer. More than 5% of the total portfolio is invested in securities issued by the Federal Home Loan Mortgage Corporation - 38%, Federal Home Loan Bank - 33%, and Federal National Mortgage Association - 29%. Credit Risk. The City's investment policy specifies the types of investments that can be purchased. The intent of this is to limit the credit risk, or the risk that the issuer of the investment securities purchased will default at maturity of the investment. The City may invest only in obligations of the United States government, its instrumentalities and agencies; insured or collateralized certificates of deposit, savings accounts; collateralized repurchase agreements; money market funds and the State investment pool. Credit risk is effectively limited by limiting the eligible investment options. All of the U.S. Agency securities in the portfolio at year-end are rated Aaa by Moody's Investors Service and AAA by Standard and Poor's. 42 B. Receivables Receivables at June 30, 2008, for the City's individual major funds, the nonmajor and other governmental funds in the aggregate are as follows: Airport Airport Airport Special Land Sales Improvement Nonmajor and General Revenue Permanent Capital Project Other Funds Taxes $ 1,227,154 $ - $ - $ - $ - Intergovernmental - - - 540,346 360,553 Notes - - - - 23,463 Customer and other 294,879 66,474 107,847 - 259,587 Special assessments 350,372 - - - - Land contracts 192,273 - - - - Accrued interest 330.000 Total receivables 2,394,678 66,474 540,346 643,603 Less allowance for uncollectibles (2.103) - - 1( 0,000) Net receivables $ 2 39?_. 2.575 $ 66 474 $ 1.07.847 $ 540.346 $ 633 603 C. Capital Assets Capital asset activity for the year ended June 30, 2008 was as follows Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets not being depreciated: Land $ 5,579,398 $ 260,000 $ (72,802) $ 5,766,596 Construction in progress 13.483,812 7.856.412 (4.316,935) 17.023.289 Total capital assets not being depreciated 19.063.210 8,116,412 (4.389.737) 22.789,885 Capital assets being depreciated: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total capital assets being depreciated 46,320,324 - - 46,320,324 24,696,108 3,943,423 - 28,639,531 14,062,640 307,031 (41,686) 14,327,985 55.812,259 395.984 (7.5081 56.200 735 140.891.331 4.646,438 (49,194) 145.488.575 Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total accumulated depreciation (12,252,561) (768,925) - (13,021,489) (11,379,418) (559,252) - (11,938,670) (6,983,801) (620,975) 41,686 (7,563,090) (19.532.880) (824.853) 4.655 (20,353.078) (50.148.660) (2,774.005) 46.341 (52.876.324) Total capital assets being depreciated, net 90.742.671 1 872.431 2,853 92.612.251 Governmental activities capital assets, net $109 805 881 $9 988 845 $(4.392.5901 $115 402 136 43 The Internal Service Fund serves the governmental funds; therefore, its capital assets are included as part of the above totals for governmental activities. Beginning Ending Balance Increases Decreases Balance Business-type Activities: Capital assets not being depreciated - Land $ 274.500 ~ ~ $ 274.500 Capital assets being depreciated - Buildings 4,915,806 Less accumulated depreciation for - 4,915,806 Buildings (1.852.806) (125.299) - (1,978,105) Total capital assets being depreciated, net 3.063.000 (125,299) - 2,937.701 Business-type activities capital assets, net $ 3 337 500 $(125.299) ;~ $ 3 212 201 Depreciation expense charged to each governmental function is as follows: General government $ 57,296 Public safety 192,012 Public works 655,657 Park, recreation and cultural 196,781 Water and sewer services 654,455 Airport 970, 957 Social welfare services 46,847 $ 2 774 005 D. Pension Plans Defined Senef'st Pension Plan The following information conforms to the requirements of Governmental Accounting Standards Board (GASB) Statement 27, Accounting for Pensions by State and Local Governmental Employers. In addition, this note includes the information required by GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. The City participates in the Public Employees' Retirement System (PERS), an agent multiple employer plan which covers eligible State and local government employees. The plan was established and is administered by the State of Alaska to provide pension, postemployment healthcare, death, and disability benefits. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. as The plan is included in a comprehensive annual financial report that includes financial statements and other required supplemental information. The report is available at the following address: Department of Administration Division of Retirement and Benefits P.O. Box 110203 Juneau. Alaska 99811-0203 Funding Policv Employees are required to contribute 6.75% of their annual covered salary (1.86% for pension and 4.89% for healthcare). The funding policy provides for periodic employer contributions based on actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate sufficient assets to pay both pension and postemployment healthcare benefits when due. The City's contribution rates for the year ended June 30, 2008 were as follows: Adjusted Actuarial Actual Required Rate Rate Pension 6.05% 10.08% Postemployment healthcare 15.95% 26.59% Total contribution rate 22 00% 36.67% The employer contribution rate for the current year was actuarially calculated as a level percentage of payroll and was determined using the projected unit credit actuarial funding method. Unfunded accrued liabilities and future gains/losses are amortized over a fixed 25 year period as a level percentage of pay based on a 4.0% payroll growth assumption. The current year required contribution was determined as part of the June 30, 2005 actuarial valuation. Effectwe With the June 30, 2006 valuation (witicii esiabiisiies the 2009 rates), the actuarial funding method has been changed to the Entry Age Actuarial Cost Method. The projection of future benefits for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the City and the plan members at that point. Actuarial calculations reflect a long- term perspective and employ methods and assumptions that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial values of assets. Projected benefits for financial reporting purposes do not incorporate any potential effects of legal or contractual funding limitations. The significant actuarial assumptions used in the most recent valuation of the plan follow: Investment return of 8.25% per annum, compounded annually, net of expenses; 45 2. Projected salary increases of 5.5% for the first ten years and 4.0% thereafter (Police and Fire 6.0% for the first five years and 4.5% thereafter); 3. Medical cost inflation of 9.5% for 2006, trending downward 0.5% per year to 5.0% in FY15 and remaining at 5.0% thereafter; and prescription cost inflation of 14% for 2006, trending downward 1.0% per year to 5.0% in FY15 and remaining at 5.0% thereafter; 4. Total inflation, as measured by the Consumer Price Index for urban and clerical workers for Anchorage, is assumed to increase 3.5% annually; 5. Mortality based on 1994 Group Annuity Mortality Basic Table, 1994 Base Year with 85% occupational for Peace Officer/Firefighter and 35% occupational for others; 6. Retirement rate based on 1997-1999 actual experience. Deferred vested members are assumed to retire at their earliest retirement date; 7. Asset valuation -recognizes 20% of the investment gain or loss in each of the current and preceding four years. Assets are valued at market value and are accounted for on an accrual basis. Valuation assets are constrained to a range of 80% to 120% of market value of assets; and, 8. Valuation of Medical Benefit based on analysis of actual claims paid for July 2001 -June 2005, averaged and annualized and adjusted for other factors plus administrative costs. Annual Pension and Postemplovment Healthcare Cost Effective July 1, 2007, the State of Alaska adopted contribution rates for each employer at an amount no less than 14.48% and no more than 22%. The actual rate for City of Kenai is 22%. The Legislature then approved state funding (Senate Bill 53) in the form of an on-behalf payment for those amounts between the established employer rate and the actuarially determined rate. This on-behalf payment was transferred to the Alaska Division of Retirement and Benefits at July 1, but was allocated to the individual employer accounts on a prorata basis with each payroll reporting period. The City has recorded $783,721 in these financial statements as PERS relief or state grant revenue and related PERS expenditures/expenses. This amount is also included in employer contributions for the purpose of calculating the ending net pension/OPEB obligation as noted below. In addition, in fiscal year 2008, the State of Alaska passed legislation (Senate Bill 123) which requires that the employer contribution be calculated on all PERS eligible wages, including wages attributable to the defined contribution plan described later in these footnotes. For the year ended June 30, 2008, the City's annual pension and other post-employment benefit (OPEB) costs were as follows: Annual required contribution Interest on net pension obligation Adjustment to annual required contribution Annual pension cost Contributions made Decrease in net pension/OPEB obligation Net pension/OPEB obligation, beginning of year Net pension/OPEB obligation, end of year Pension OPEB Total $ 515,523 $ 1,359,106 $ 1,874,629 45, 578 120,159 165,737 (35,903) 9( 4.655) 13( 0,558) 525,198 1,384,610 1,909,808 525,198 1,432.084 1.957,282 - (47,474) (47,474) 1.215,280 793.658 2.008.938 $ 1.215 28Q $ _ $ 1 961 464 46 Three-year trend information for PERS follows Year Annual Percentage Net Ending Pension Actual ofAPC Pension June 30. Cost (APC) Contributions Contributed Obligation' Pension 2006 $848,435 $429,524 51% $ 837,866 2007 $ 951,945 $ 574,531 60% $1,215,280 2008 $ 525,198 $ 525,198 100% $1,215,280 Year Annual Percentage Net Ending OPEB Actual of OPEB OPEB June 30, Cost Contributions Contributed Obligation* Postemployment Healthcare 2006 $ 561,172 $ 287,065 51% $528,604 20D7 $ 670,283 $ 405,229 60% $793,658 2008 $1,384,610 $ 1,432,084 103% $746,184 "Generally accepted accoun ting principles (GAAP) currently dictate the recognition of a net pension obligation when actual contributions do not equal the actuarially required contribution for pensions. The City has recorded a net pensi on obligation, not including OPEB, in the amount of $1,215,280. A schedule of fu nding progress for the three most recent actuarial valuations, which is required supplementary information, follows (in thous ands): Actuarial Actuarial Actuarial Unfunded Valuation Value of Accrued U nfunded Funded Covered Liability as Percentage Date Assets Liabilit Liability Ratio Pavroll Of Covered Pavroll June 30, 2004: Pension $18,797 $25,579 $6,782 73% $4,485 151% Postemployment f7eaithcare 13,254 i8,03i 4,i83 73°i° 4,485 1()7% June 30, 2005: Pension 17,102 26,570 9,468 64% 4,912 193% Postemployment healthcare 13,457 20,907 7,450 64% 4,912 152 June 30, 2006: Pension 21,948 30,814 8,866 71% 5,358 165% Postemployment healthcare 9,394 21,917 12,523 43% 5,358 234% PERS Conversion to Cost Sharino In April 2008 the Alaska Legislature passed Senate Bill 125 which converts the existing Public Employees Retirement System (PERS) from an agent-multiple employer plan to acost-sharing plan. Under the cost- sharing arrangement, the State of Alaska Division of Retirement and Benefits will no longer track individual employer assets and liabilities. Rather, all plan costs and past service liabilities will be shared among all participating employers. The cost-sharing plan will require a uniform employer contribution rate of 22°!° or Tess of active member wages, subject to a wage floor. In addition, the legislation provides for state contributions in the event that the annually calculated and board adopted rate, which includes a 47 provision to pay down the past-service liability, exceeds 22%. Any such additional contributions would be recognized by each employer as an on-behalf payment. As a result of this change, the City will not be obligated to pay or to continue amortizing the currently recorded Net PensionlOPEB obligation. As such, these liabilities will be written off and the City will recognize an extraordinary gain on the legislation's effective date, July 1, 2008. Defined Contribution Pension Plan The State of Alaska Legislature approved Senate Bill 141 to create the Public Employees' Retirement System (PERS) Tier IV for employees hired after July 1, 2006 or for employees converting from the PERS Tier I, II or III defined benefit plans. The plan is administered by the State of Alaska, Department of Administration Commissioner, and benefit and contribution provisions are established by State law and may be amended only by the State Legislature. The Alaska Retirement Management Board may also amend contribution requirements. Included in the plan are individual pension accounts, retiree medical insurance plan and a separate Health Reimbursement Arrangement account that will help retired members pay medical premiums and other eligible medical expenses not covered by the medical plan. Employees are required to contribute 8.0% of their annual covered salary and the City is required to make the following contributions: Individual account 5.00% Health reimbursement arrangement (HRA) * 3.00 Retiree medical plan 0.99 Occupational death and disability benefits 0.58 ~~% *Health Reimbursement Arrangement - AS 39.30.370 requires that the employer contribute "an amount equal to three percent of the employer's average annual employee compensation." For actual remittance, this amount is calculated as a flat rate for each full time or part-time employee per pay period. The City and employee contributions to PERS, including the HRA contribution, for the year ended June 30, 2008 were $92,465 and $33,835, respectively. E. Changes in Long-Term Obligations The City has no outstanding general obligation debt. Activity in long-term liabilities in governmental activities is as follows: Due Balance Balance within July 1.2007 Additions Reductions June 30. 2008 one vear Loss contingency for contaminated soils $ 1,400,000 $ - $ - $ 1,400,000 $ - Compensated absences 655,286 188,843 187,248 656,881 185,000 Net pension obligation 1.211,646 - 1.211.646 - Total governmental- activities $~i 2~26~ 84 18 $3.268.527 185 000 Activity in long-term liabilities in business-type activities is as follows: Balance Balance Due July 1, June 30, within 2007 Additions Reductions 2008 one year Compensated absences $2,255 $ - $ 956 $1,299 $ - Net pension obligation 3.634 - 3.634 Total business-type activities 5 889 ~ $~.9 ~ 4 933 $ 48 F. Interfund receivables, payables and transfers Transfers between funds were as follows: Transfers Out Transfers in Major Nonmajor I Governmental Governmental General Fund Funds Funds Total Major Funds General Fund $ 274,641 $ - $ - $ - $ - Airport 110,250 - 274,076 - 274,076 Airport Land Sales 11,540 - - - - Airport Imp. Capital Project 152,536 - 61,250 - 61,250 Nonmajor Governmental Funds 698,862 41,007 - 871,496 912,503 Proprietary Funds 31,500 31,500 - - 31.500 Total $ 1 279 329 $ 72.507 X335 326 $871 496 $1 279 329 G. Risk management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; environmental contamination; and natural disasters. Risk financing activities are accounted for in various operating funds, with unallocated or Citywide activities being accounted for in the general fund. The City purchases commercial insurance to transfer a substantial portion of the above risks of loss. Property insurance is purchased to provide coverage for buildings and heavy equipment, generally with deductibles of $25,000. Various liability insurance policies are purchased to provide protection against torts, injuries, and. errors and omissions. Most liability policies are written with low or zero deductibles. In addition to the deductibles on insurance policies, the City retains risk of loss related to certain potential liabilities and property damages. These include environmental liabilities, employment discrimination, and vehicle property losses. Settled claims have not exceeded commercial coverage in ary of the pas± three fiscal years. The City analyzes potent I losses on a case-by-case basis to determine amounts that should be accrued or disclosed in the financial statements. At June 30, 2008, the City has recorded a liability in recognition of certain losses related to contaminated soil remediation. The City has retained the risk of Toss for such exposures. There has been no change in the balance of claims liabilities during the past year as indicated by the following table. Beginning of End of Fiscal Year Current Year Claim Fiscal Year Liability Claims Payments Liability FY2006 $1,400,000 - - $ 1,400,000 FY2007 $1,400,000 - - $ 1,400,000 FY2008 $1,400,000 - - $ 1,400,000 H. Contingencies The City is involved in several lawsuits arising in the ordinary course of operations, including actions commenced and claims asserted against it. Management of the City does not believe that the ultimate resolution of these lawsuits and claims will have any material effect upon its financial position or results of operations, and therefore, no provision has been made in the accompanying financial statements. a9 Other Governmental Funds This section includes the Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual, for the Airport Land Sales Permanent Fund, which is a major fund, as well as the Nonmajor Governmental Funds Combining Balance Sheet and Combining Statement of Revenues, Expenditures, and Changes in Fund Balance. It also includes a Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual for each nonmajor governmental fund that adopted an annual budget. Snecial Revenue Funds Special Revenue funds are used for specific revenues that are legally restricted to expenditures for a specific purpose Prism Fund -This fund accounts for revenues and expenditures made at the Alaska Regional Aircraft Firefighting Facility. The source of revenue is generated from training fees. Senior Citizens Fund -This fund accounts for revenues and expenditures related to the Senior Citizens Program. The primary source of revenue is a grant from the Kenai Peninsula Borough. Council On Aging Fund -This fund accounts for the activities of the Senior Citizen Title III Grant Program which is substantially financed 6y a grant from the State of Alaska (from federally financed sources). Activities include social services and a nutrition program. Water and Sewer Fund -This fund accounts for revenues and expenditures in the water and sewer fund. The primary source of revenue is from user fees. Capital Project Funds Capital Project Funds are established to account for the resources expended to acquire assets of a relatively permanent nature. These funds evolved from the need for special accounting for bond proceeds, grants and contributions for the acquisition of capital assets. Capital Project Funds provide a formal mechanism which enables administrators to ensure that revenues-dedicated to a certain purpose are used only for that purpose and further enables them to report to creditors and other grantors of capital projects fund revenue, that their requirements regarding the use of the revenue were fully satisfied. Parks and Recreation - to account for capital improvements to City parks and recreation facilities. Financing is primarily from general fund transfers and State grants. Streei improvement-io account for capital improvements to City streeis. Financing is primarily by State grants. Public Safety-to account for capital improvements to public safety facilities. Financing is primarily by State grants. Water and Sewer - to account for capital improvements to City water and sewer infrastructure and the sewer treatment facilities. Financing is from user fees via transfers from the Water and Sewer Special Revenue Fund, State and Federal grants and bonds. Miscellaneous - to account for capital projects which do not fit in one of the foregoing categories. These projects are generally smaller projects, which may be funded through transfers from other funds or by State or Federal grants. Permanent Funds Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used. General Government Land Sales - to account for the proceeds of general government land sales, including: principal and interest on long-term notes. 8y City Charter, the principal cannot be spent..lnterest revenue is transferred to the General Fund. Airport Land Sales - to account for the proceeds of airport land sales, including principal and interest on long-term notes. By ordinance, the principal cannot be spent. Interest revenue is recorded in the Airport Special Revenue Fund. Note that this is a major fund and is therefore not included ih the NonMajor Governmental Funds Combining Statements. CITY OF KENAI, ALASKA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2008 Special Revenue ASSETS Equity in central treasury Intergovernmental receivable Notes receivable Other accounts receivable, net Total assets Council Water Senior on and PRISM Citizens Aging Sewer $ 83,098 $ 64,678 $ - $ 1,835,870 - 67,750 7,085 174,752 $ 82,816 $ 5,737 $ 209 $ 30,909 - 10,500 - 61,770 - - 6,847 - - 311 - 21,554 - - 2,000 82,816 16,548 9,056 114,233 - - - 13,371 S 83,098 $ 132,428 $ 7,085 $ 2,010,622 36,381 LIABILITIES AND FUND BALANCES liabilities: Accounts payable Customer deposits Due to General Fund Sales tax payable Deferred revenue Total liabilities Fund balances: Reserve for encumbrances Reserve for investment Unreserved: Designated for subsequent year's expenditures Designated for compensated absences Undesignated Total fund balances Total liabilities and fund balances 52 - 16,301 - 34,619 282 63,198 1,971 1,848,399 282 115.880 1,971 1,896,389 $ 83,098 $ 132,428 $ 7,085 $ 2,010,622 Capital Project Permanent Total Water General Nonmajor Parks and Street Public and Government Governmental Recreation Improvemen4 Safety Sewer Miscellaneous Land Sales Funds $ 59,824 $ - $ - $ 1,643,700 $ 10,000 $ 2,508,551 $ 6,205,721 33,348 159,812 124,073 43,320 - - 360,553 - - - - - 23,463 23,463 - 249,587 $ 93,172 $ 159,812 $ 124,073 $ 1,687,020 $ 10,000 $ 2,532,014 $ 6,839,324 $ 23,239 $ 50,487 $ 440 $ 4,116 $ - 101,255 123,633 - 23,239 151,742 124,073 4,116 - $ - $ 197,953 - - 72,270 - - 231,735 - - 21,865 _ 23,463 25,463 23,463 549,286 - - 13,371 - 2,508,551 2,508,551 69,933 8,070 - 1,682,904 10,000 - 1,807,288 - - - - - - 50,920 '. - - - 1,909,908 69,933 8,070 1,682,904 10,000 2,508,551 6,290,038 $ 93,172 $ 159,812 $ 124,073 $ 1,687,020 $ 10,000 $ 2,532,014 $ 6,839,324 53 CITY OF KENAI, ALASKA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTALFUNDS YEAR ENDED JUNE Sp, 2pp$ Special Revenue Revenues: Intergovernmental revenues Charges for services Interest revenue Land sales Miscellaneous revenues Total revenues Expend'etures: Public safety Water and sewer services Social welfare services Parks and recreation Streets Airport Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Net other financing sources (uses) Net changes in fund balances Fund balances -July 1 Fund balances -June 30 Council Water Senior on and PRISM Citizens Aging Sewer $ - $ 312,218 $ 129,280 $ 57,546 159,606 - 1,787,329 - - - 167,344 - 67,718 60,028 2,636 159,606 379,936 189,308 2,014,855 - - - 1,539,907 - 381,637 222,134 - 235,196 - 235,196 381,637 222,134 1,539,907 (75,590) (1,701) (32,826) 474,948 49,000 36,000 30,855 - - 30,855 - (627,000) 49,000 5,145 30,855 (627,000) (28,590) 3,444 (1,971) (152,052) 26,872 112,436 2,048,441 $ 282 $ 115,880 $ (1'971) $ 1,896,389 54 Capital Project Permanent Total Water General Nonmajor Parks and Street Public and Government Governmental Recreation .Improvement Safety Sewer Miscellaneous Land Sales Funds $ 154,123 $ 387,526 $ 132,433 $ 524,030 $ - $ - $ 1,697,156 - - - - - - 1,946,935 - - - - - 2,688 170,032 - - - - - 10,407 10,407 - - - 130,382 154,123 387,526 132,433 524,030 13.095 3,954,912 - - 132,433 - - - 132,433 - - - 490,743 - - 2,030,650 - - - - - - 603,771 325,155 - - - 10,000 - 335,155 - 388,705 - - - - 388,705 - - - - 235,196 325,155 388,705 132,433 490,743 10,000 3,725 910 , (171,032) (1,179) - 33,287 (10,D00) 13,095 229,002 108,641 - - 627,000 20,000 - 871,496 - (38,319) (2,688) (698,862) 108,641 - - 588,681 20,000 (2,688) 172,634 (62,391) (1,179) - 621,968 10,000 10,407 401,636 132,324 9,249 1,060,936 2,498.144 5,888,402 $ 69,933 $ 8,070 $ $ 1,682,904 $ 10,000 8 2,508,551 $ 6,290,038 55 CITY OF KENAI, ALASKA PRISM SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 Revenues- Charges for services - Traihing services Expenditures -airport Other services and charges Excess of revenues over (under) expenditures Other financing sources - Transfers in Net changes in fund balance Fund balance -July 1 Fund balance -June 30 Final Budget Actual Variance With Final Budget Positive Ne ative $ 448,000 $ 159,606 $ (288,394) 500,000 235,196 264,804 (52,000) (75,59D) 52,OOD 49,000 $ - (26,590) 26,872 $ 282 56 (23,590) (3,000) CITY OF KENAI, ALASKA SENIOR CITIZENS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES; AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 Revenues; Intergovernmental revenues: Federal -Choice Waiver State grant State grant - MAAST Kenai Peninsula Borough grants Total intergovernmental revenues Miscellaneous revenues: United Way grants Rents and leases Donations Other Total miscellaneous revenues Total revenues Expenditures -social welfare services: Personal services Supplies Other services and charges Capital outlays Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Net other financing sources (uses) Net changes in fund balance Fund balance -July 1 Fund balance -June 30 Final Budget Actual $ 130,D00 $ 126,391 65,290 64,831 24, 631 16,144 104,852 104,852 324,773 312,218 35,000 35,000 15,000 18,064 15,000 14,537 1,400 117 66,400 67,718 391,173 379,936 251,819 232,904 62,997 51,029 69,155 47,708 50,000 49,996 433,971 381,637 42,798 (1,701) 36,000 36,000 (30,855) (30,855) 5,145 5,145 $ (37,653 3,444 112,436 $ 115,880 57 Variance With Final Budget POSitIVe Ne ative $ (3,609) (459) (8,487) 3, 064 (463) (1,283) 1,318 (11,237) 18,915 11,868 21,447 4 52,334 41,097 $ 41,097 CITY OF KENAI, ALASKA COUNCIL ON AGING SPECIAL REVENUE FUND SCHEDULE OF REVENUES; EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 Variance With Final BudgeB Final Positive Budget Actual (Neaativel Revenues: '. Intergovernmentalrevenues: State grants $ 117,438 $ 117,093 $ (345) Federal grants 12,000 12,187 187 Total intergovernmental revenues 129,438 129,280 (158) ! '. Miscellaneous revenues: " In-kind support 10,850 10,850 - Donations 54,626 49,178 (5,448) '.. Total miscellaneous revenues 65,476 60,028 (5,448) Total revenues 194,914 189,308 (5,606) Expenditures -social welfare services: Social services: Personal services 64,017 63,099 918 Other services and charges 5,425 5,588 (163) ' '.. Total social services 69,442 68,687 755 Congregate meals: Personal services 33,715 32,439 1,276 ', '. Supplies 27,500 27,500 - Other services and charges 5,425 5,425 Total congregate meals 66,640 65,364 1,276 Home delivered meals: Personal services 38,819 37,776 1,043 Supplies 33,406 32,635 771 Total home delivered meals 72,225 70,411 1,814 '.. Transportation: Personal services 6,437 6,646 (209} Supplies 11,025 11,D26 (1) Total transportation 17,462 17,672 (210) Total expenditures 225,769 222,134 3,635 Excess of revenues over (under) '. expenditures (30,855) (32,826) (1,971) Other financing sources - Transfers in 30,855 30,855 Net changes in fund balance $ - (1,971) $ (1,971 Fund balance -July 1 ''.. '. Deficit-June 30 $ 1,971 58 CITY OF KENAI, ALASKA WATER AND SEWER SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 Variance With Final Budget Final Positive Budget Actual Ne ative Revenues: Intergovernmental revenues - State grant $ 62,509 $ 57,546 $ (4,963) Charges For services: Residential water 317,800 316,100 (1,700) Commercial water 140,000 140,601 601 Residential sewer 920,600 914,876 (5,724) Commercial sewer 387,700 385,588 (2,112) Hook-up fees 5,000 4,000 (1,000) Other 18,000 26,164 8,164 Total chargestorservices 1,789,100 1,787,329 (1,771) Miscellaneous revenues: Interest 80,000 167,344 87,344 Other 14,558 2,636 (11,922) Total miscellaneous revenues 94,558 169,980 75,422 Total revenues 1,946,167 2,014,855 68,688 Expenditures -water and sewer services Water: Personal services 201,781 188,021 13,760 Supplies 54,698 51,073 3,625 Other services and charges 249,958 224,291 25,667 506,437 463,385 43,052 Expenditures chargeable from other funds 61,900 61,900 - Total water 568,337 525,285 43,052 Sewer: Personal services 201,782 184,660 17,122 Supplies 25,8D7 22,878 2,929 Other services and charges 72,506 44,242 28,264 300,095 251,780 48,315 59 CITY OF KENAI, ALASKA WATER AND SEWER SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGETANDACTUAL YEAR ENDED JUNE 30, 2008 continued Expenditures - waterand sewer services, continued: Expenditures chargeable from other funds Total sewer Sewer treatment plant: Personal services Supplies Other services and charges Expenditures chargeable from other funds Total sewer treatment plant Total expenditures Excess of revenues over expenditures Other financing uses - Transfers out Net changes in fund balance Fund balance -July 1 Fund balance -June 30 Final Budget 324,971 92,512 362,961 780,444 86,500 866,944 1,774,276 (627,000) $ (455,109) Variance With Final Budget Positive Actual Ne ative 60 $ 38,900 $ - 290,680 48,315 309,131 15, 840 73,722 18,790 254,589 108,372 637,442 143,002 86,500 - 723,942 143,002 1,539,907 234,369 (627,000) - (152,052) $ 303,057 $1,896,389 CITY OF KENA1, ALASKA GENERAL GOVERNMENT LAND SALES PERMANENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGETAND ACTUAL YEAR ENDED JUNE 30, 2008 Revenues: Interest revenue Land sales Total revenues Excess of revenues over expenditures Other financing uses - Transfers out Final Budget Actual Variance With Final Budget Positive Ne ative $ 8,000 $ 2,688 - 10,407 8,000 13,095 8,000 13,095 $ (5,312) 10,407 5,095 Net change in fund balance Fund balance -July 1 Fund balance -June 30 5,095 (8,000) (2,688) 5,312 $ - 10,407 $ 10,407 2,498,144 $ 2,508,551 61 CITY OF KENAI, ALASKA AIRPORT LAND SALES PERMANENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2008 Revenues: Interest revenue Land sales Total revenues Excess of revenues over expenditures Other financing uses - Transfers out Net change in fund balance Fund balance -July 1 Fund balance -June 30 Final BudgE4 $ 12,000 12,000 12,000 (25,000) $ (13,000) Actual $ 11,540 5,623,413 5,634,953 5;634,953 (11,540) 5,623,413 11,777,625 $ 17,401,038 Variance With Final Budget Positive Ne ative $ (460) 5,623,413 5,622,953 5,622,953 13,460 $ 5,636,413 62 City of Kenai, Alaska Statistical Section This part of the City of Kenai's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents: Financia(Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being 'nave changed over time. Page Table I Net Assets by Component 63 Table II Change in Net Assets 64 Table III Governmental Activities Tax Revenues by Source 66 Table IV Fund Balances of Governmental Funds 67 Table V Changes in Fund Balances of Governmental Funds 68 Table Vi General Governmental Tax Revenues by Source 69 Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the sales tax. Table VII Taxable Sales by Category Table VIII Sales Tax Rates -Direct and Overlapping Governments 70 71 Debt Capacity These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future. Table IX Ratio of Outstanding Debt by Type Table X CGiTiputatlen of Direct and Overlappin g Dcbt Table XI Legal Debt Margin Information 72 72 73 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Table XII Demographic andEconomic Statistics 74 Table XIII Principal Employers 76 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the government provides and the activities it performs. - Table XIV Full-time Equivalent City Government Employees by Function 76 Table XV Operating Indicators by Function 77 Table XVI Capital Asset Statistics by Function 78 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. O W N N T W O ~ W V V t~ N J V O I~ N N N W (D O M O O W r Q ~ c- ~ ~ ~ ~ N ~ ~ ~ N fA 4} EA fH O~ N M ~ O I~ M (O V N N V [0 D) M In W '- V N CO ~ r ~ M V W O O . - . - V ~ ~ O N 6? M H3 Kl W ~ N O r ~ ~ m O 0 ( 0 O i M t D ~ O V V (O (D Q) to V C' C' N ~ O ~ ~ N ~ N ~ ~ ~ - O ~ t ') O ~ O .- r N fA 64 fA EH N 0 0 N ~ ~ V M ~ O O M 0 1 ( O ~ O M ~ N ~ m O ~ O Z Q O ~- O . - ~ V F Z F (/~ N fR fA ~ fR y O ¢ O = J F > U Z ~ J Q O V t~ O M ~ O r~ N a W ~ O M M ~ ~ W W E M U LL V t [1 0 1 C O Z } N 0~ O r r ~ N ~ O ~~ Y LL' W ~ O ~ V y N t» tH ~' M m ~ N tq X ~ J W Y Vl h Q QNQ a fq Z Z U~ V OD O ~ N ~ N O W P M Q O M ~ M ~ N O ~ Q O N ~ . - fR ~ 69 Hi ~ di ` .~- M ~ ~ ~ N N Ol a a a a a a N y N N f6 G (0 y N N ~ N ~ N O ~ O ~ O ~ 01 G ~ OJ C G N N C N N y r~ y to ry N U1 d N N G ~ y ' N y j 4 i > C (/1 N - ~ 41 t6 ~ - N [0 N f6 N ~~ N ~ .. l0 G ~ m ~ ~ a y ~ N ~° a d m o .o w E v -o 0 m~ a 0 E o c.a d y c a ro m c a N ~? c ~ Ta m i d > a a1 v ~' ~ o m v '- ~ O ~ `- c ~ ~ m o m v N ~~ ~ > U N '~- y ~ 01 y ~L ` E C> N C O) N> N ~ Z, N N ? C ~ ~ N C G ~ J l6 C~ ~ ~, ~ ~ E - o ° ' ° ` ° c~ r m i - a t - d 0 z 63 CITY OF KENAI, ALASKA CHANGE IN NET ASSETS LAST SIX FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) TABLE II 2003 2004 2005 2006 2007 2008 Expenses Governmental activities: General government $ i,tt3,592 $ 962,874 $ 7,147,616 $ 1,239,137 $ 1.386,573 $ 1,949,905 Public safety 3,192,795 3,t 16,020 3,991,072 4,365,553 4,536,951 4,802,876 Public works 2,108,212 1,929,409 2290,114 2,717,511 2,394,624 2,198,822 Parks, recreation, and cultural 1.447,484 7,247,500 1,396,794 1,463,932 1,576,963 1,572,995 Water and SeweY Services 1,945,498 1,774,176 1,640,935 7,957,032 2,644,033 2,199,983 Airport 2,084,722 2,195,047 2,403,729 2,511,021 3,415,966 3,492,213 Interest on long-term debt 189,702 t 1,962 4,012 - - - ' Social welfare services 452,778 416,865 459,641 505,230 528,348 598,497 Total govenmental activities expenses 12,534,783 71,653,873 13,533,913 74,759,416 16,485,478 16,815,231 Business-type activities: ', Airport terminal 503,431 453,410 477,593 506,006 - - ' Senior housing 297,664 327,863 480,219 354,514 364,688 369,565 Total business-type activities 601,095 761,273 957,612 860.520 364,668 369,565 Total primary government expenses $ 13,335,878 $ 12,435,146 $ 14,491,725 $ 15,619,936 $ 16,850,166 $ 17,184,796 Program Revenues Governmental activities: ' Charges for services ' General government $ 182,699 $ 54,988 $ 153,378 $ 366,530 $ 283,372 $ 145,697 '. Public safety 265,210 345,632 338,961 315,570 396,147 417,326 Public works 418,776 242,056 312,140 592,461 290,535 522,968 Parks, recreation, antl cultural 208,771 120,408 193,296 193,186 216,473 206,615 ', ' Water and sewer services 1,294,836 1,433,681 1,621,038 1,626,621 1,789,881 1,789,965 Airport 431,159 478,927 504,503 463,795 7,136,245 1,388,440 Interest on long-term debt 80,028 - - - - - SocialweKareservices 791,828 187,614 110,251 174,607 123,644 127,746 Operating grants and contributions 792,646 602,467 794,847 1,035,382 7,798,362 1,982,816 '.. Capital grants and contributions 794,157 1,010,956 2,544,629 2,442,607 B,Ofi4,42fi 7,545,119 J Total governmental activities program revenues 4,660,110 4,616,729 6,573,063 7,350,753 13,501,085 14,126,694 Business-type activties: ', Charges for services. ' Airport terminal 285,018 275,973 294,251 367,911 - - Senionc~using 240,970 251,881 255,396 275,185 279,102 299,563 Operating grants and contributions - - - 800 774 2,342 '. Capital grants and contributions 30,720 2,737 ; Total business-type activities program revenues 525,988 556,514 549,647 646,633 279,816 301,905 - Total primary government program revenues $ 5,786,098 3 5,175,243 $ 7,122,710 $ 7.997,386 $ 13,780,901 $ 14,428,599 Net (expenses)Irevenue: !. _ Governmental activitiee $ (7,874,673) $ (7,037,144) $ (8,980,850) $ (7,408,663) $ (2,984,393) $ (2,888,537) Business-type actlurties (275,107) (222,759) (408,165) (213.887) (84,872) (67,660) Total primary government net expense $ (8.149,760) $ (7,259,903) $ (7,369,015) $ (7,622,550) $ (3,089,285) $ (2,756,197) 64 CITY OF KENAi, ALASKA TABLE II CHANGE IN NET ASSETS LAST SIX FISCAL YEARS - (ACCRUAL BASIS OF ACCOUNTING) continued General Revenues and O[her Changes in Net Assets Governmental activities: Taxes: Property taxes Sales taxes Sales of capital assets Investment earnings Transfers Fund conversion Total governmental activities Business-type activities: Investment earnings Transfers Funtl conversion Total business-type activities Total primary government Changes in Net Assets GovemmerRal activities Business-type activities Total primary government 2003 2004 2005 2006 2007 2008 $ 1,424,644 $ 2,026,789 $ 1,900,788 $ 2,024,502 $ 2,15Q373 $ 2,347,063 3,953,561 3,790,644 4,090,468 4,404,158 4,631,812 5,196,046 - 74,700 84,954 452,766 105,320 5,473,871 988,431 334,166 789,721 880,307 1,861,472 1,910,080 69,946 54,807 - - 2,062,870 31,500 1,502,513 6,436,582 6,261,100 6.865,937 7,761,733 12,320,360 14,958,560 04,766 25,899 62,765 68,411 (69,946) (54,601) - - 14,820 (28,902) 62,765 68,411 $ 6,451,402 $ 6,252,198 $ 6,928,696 $ 7,830,144 $ (600,562) $ (758,044) $ (84,919) $ 353,070 (207,939) (261,661) (345,400) (145,476) $ (808,501) $ (1007705) $ (440,319) $ 207,594 Note: Data for years prior to GASB 34 implementation is unavailable; therefore, only siz years of data is being presented. 29,312 30,371 (2,062,870) (31,500) (1,502,513) (3,536,071) (1.129) $ 8,784,289 $ 14,957,431 $ 9,335,967 $ 12,270,023 (3,620,943) (88,789) $ 5,715,024 $ 12,201234 65 CITY OF KENAI, ALASKA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST SIX FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Fiscal Year Property Tax Sales Tax Total 2003 $1,424,644 $3,953,561 $5,378,205 2004 2,026,789 3,790,644 5,817,433 20D5 1,900,788 4,090,468 5,991,256 2006 2,024,502 4,404,158 6,428,660 2007 2,156,373 4,631,812 6,788,185 2008 2,347,063 5,196,046 7,543,109 Note: Data for years prior to GASB 34 implementation is unavailable; therefore, only six years of data is being presented. Table III 66 > m<orn em m N d OJ M O W N O m O N O O~ N 9 lG3 B M M ~- V O W 1~ ) N O m ~~ ` O W rn m ' n w » N NI O rn ~ N~ 1 p b9 W M ~ (0 M N V N ~ C~ ~ M O~ O ~[i M O n I ~ ~ rn N W M W rn M Oi O T W N O V p O M ~(1 V m ~ rn [p VI ~ P (O O M r a{ N. M ~ O Z Z f9 M LL 2 n J ~ O M V N N 0 m p m m v, m_ v f yU o Iw m m Nnm ' ~ f o ~ O N m M (p 1 y O N - Q `2 W LL n m • f ~p Q K J y M M a ~ U y n o n m o v W U~ LL IO ~ V r N OW M CMJ J p W N ~ N` _ N ~ N (O M LL ~ O) V N 1 CI N, n p y f" ~ N ~- (O n ` n U N U w w U Q j J p W n N W W O VI N M n ~ N M m LL ( ~J t fl Y l N W N'1 1 p O ... Z O n M ~ O ~ N r ~ ~ N c cO W ` I~ N~ LL W M N O 10 O IO V (O h ~ ry ~~ N n 1 o ~ y l M W NI m m ` rn N M m m~I o m <o_r W ~ M1111 r O M m N N n ~ r w w N N a C ~ w .. 9 9 N y C q W G W v~ a~ N ~ 2 ~ r ~ o " E d v E v° > u °~ m 'a E t v ~ ~ . o > o n_ 2 n a ~ E a - m _ m w" m m A w m Z m `v rn Z 2 °' n a mn°'~ y~ v y m d y p U~ ~ d C O~ t N Oi C N ~Ct= ~ oKfLp ~ U' F Q F- O Z 67 a N (O X11 O r Q ~ h O h h Ol r' N Q O 0I Ol O O o N ~ Q m m m ~ m ~ ~ h 0 m h ~ M M N N O M O h O ~- ID n Pi ~ W <O m 10 V ai r t+i 10 e$ V m h r tD O h I M~~ W N ~ (J ~ W ~ 1 0 ~ ~ N M M O O t Q i ( 0 (D N ( p t p N N Yi m ~ ~- O N Q N ~ ~ N h N (D tp i[I ' eA M di h N M h m W h (O h N (O Q m N Vl M O O O M o M O O h O E M (O O N m a0 O ~ h m h t0 m h Q h Q N f0 O ' l ~ ~ N M ~ (9 N h V M t0 Q h r 0 m N N O d' ~ N d' m ~' ~ N ~ V' N ~ ~ N O] N N N N H1 M M M W M m W ~- ~- m M V Q (O h W M N Q V [O o V O I I Q M I O ~ N M M t 0 O O O N t0 N~ Q M [O p M ~ M M t0 m N h ~fI r M N O C' O N O O N (O N O O h e Q N Q N ~ O O N~ t[ 1 ~ Q N h N N (O C' ~~ M M N ~ ~- Q M V C _ ~ Q ~ ~ ~ ~ N V y ~ N [O Q OJ O (O Q O Yl m M ~ LL) ~ h N M a- N ^ o V p r Q` W (O M O Oo h O O] t0 M N 0 V ~ N N O (O t0 Z t0 O N (D M N d' N h M O t0 m t0 ~- M O m I m ~ m ~ p M O m M N (O ro m N Q ~ a0 Q O tO m N Q O r CI lL ) O Q T M N OJ O] h h ~- N h M l0 (O ' ' OJ ~ ' (O LO (O l0 ' J ~ N 6 h (G M N N M I Q O N M d ` ~ V M O ~ V ~ M ~ v1~_ ~t + N N ~N C ) ~ ~ Z P l M Vj M Z Z ' W ~ M M I~ O M M m m h M h h lO O N M h ~O m e ~ O O (O O O N O Q N N Q O N ~ N r h M r (O V h Q M Z (~ N ~lI W M N (O N t0 N M Yl O h M M M m N (O N ~ ~ V O M (p (p W O h M M OJ N O h O N (V al O ~ IfI W Q Q O O t0 m ~f1 O Q m 10 m tIl O Q M M N (t1 m ([J ~ (O m M Q h M N M Q 0 ~ O N V h O] N (O M N O m ~~ O N ~- M r C N ~- M ~ ~ '- ~- r N O fy J ~ V> 43 H1 Q N Q N O m~ Q (O M M E Vl M M (O m O> M h M M O h a h N m C' M M t0 m ~ 0I M p h t0 h N~ m m O N O N W O W LL V J N O ~ N h N N O V V m W O t0 N (O M '- m h~ M t0 h M h O M M V' M h O 0I O Q h ~ (O h o] ~ h ~ c0 N Z W j ~ °o N m m m N m h m h N o o M m m h m ~ a m ~ a ~ N M r (O M fp ~- Q Q ~ M N N 6J M h N N M Q m ~ ~ M ~ ~- ~- `- ~ Q i~ N V (~ (p P (V M ~ Q 1- U m vl m » vi ova m m m m ~n o m o m m m Q m M M m m ~n Q M o 0 ~ W h M N m h f N M N V m O m M O] V h m N M I _ Q m O N O itl M 0I m O ~ m N M m D m h h O 4 S? Z m W OJ M T m O~ O M O h~ t9 h N N O OJ N Oi Q OI I N ~ O r N O M O N M~ b t 0 N ~ _ O i ' ~ N M N7 M ~ ~ ~ N N r . p Z d I 3 fA di V r ~ ^ ~ O ~ N N O Q V ~ ~ Q O Q O N N I~ O h ICI ' ~ ~ M N ~ M N M ~ ~ ~ ~ M M ~I m moo.-<o ~n Q in mom OQ~om ~n o MM o o e o '. N ~ O T O N m) tvOJ ~ 1N m N~ N M M N ~ ~ ~ m m ~ ~ ~ N 5 .. N °' _ N ° m ~ o ~ N 8 m m m N a m ° d ~ c m v u o m m 8 0. X m N N N 2 O O _ N N ~~ N ~ C C N C N O O N . + - m N C D W C O N N C O O a . ~p ~ ~ O' ~ C C N ~~ Y d N R~ U_ ~ ~ N O. C C O ~p N N X N N> > _ G N O Z a ~~ R O i N N O i i w C N~ O N N N 01 N > O. N ~ Y W V V N O N N N L C ~ 2 N C ~ . d O r. ¢ C _ E N N C O O S >'O C N~~ N N O N N N ' y N O L p j0. (AS SO N ¢c~aaa3 ¢woo N ~~ LFF N O ~ C ~ d' H W H W O F- 2 D ' sa d F Y Q Q 2 Y LL O h U CITY OF KENAI, ALASKA GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING Fiscal Year Ended Total Property Sales June 30 Taxes Taxes Tax 1999 $ 4,765,818 $ 1,232,748 $ 3,533,070 2000 4,988,755 1,288,012 3,700,743 2001 5,128,318 1,319,079 3,809,239 2002 5,502,232 1,322,042 4,180,190 2003 5,363,764 1,410,203 3,953,561 2004 5,838,820 2,048,176 3,790,644 2005 6,002,844 1,912,376 4,090,468 2006 6,423,361 2,019,203 4,404,158 2007 6,792,499 2,160,687 4,631,812 2008 7,527,758 2,331,712 5,196,046 TABLE VI 69 CITY OF KENAI, ALASKA TAXABLE SALES BY CATEGORY CURRENT FISCAL YEAR Arts & Entertainment Agriculture, Forestry, Fishing & Hunting Administration, Waste Management Telecommunications -Cable Telecommunications Construction, Contracting Rental -Commercial Property Educational Services Finance and Insurance Public Administration Guiding Land Guiding Water Hotel/Motel/B&B Health Care & Social Assistance Information Manufacturing Mining/Quarrying Professional, Scientific and Technical Rental -Residential Property Restaurant/Bar Rental -Personal Property Retail Trade Service Timbering Transportation and Warehousing Utilities Wholesale Trade Total City direct sales tax rate Source: The Kenai Peninsula Borough Sales Tax Department. $ 481,433 342,804 954,007 4,707 218,663 1, 278, 028 144,856 431,834 198,213 2,369,014 12,681 487,871 15,669,983 180,325 10,140,732 1,117,784 179,938 2,828,938 8,002,488 2,674,698 247,668 80, 931,497 4,724,035 450 1,199, 505 8,363,654 27,687,270 $ 170,853,076 3.00% Table V01 7D CITY OF KENAI, ALASKA SALES TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 City of Kenai 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Overlapping Rates Kenai Peninsula Borough 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 Total 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 Note: The 1,00% increase in the Kenai Peninsula Borough's sales tax rate was effective January 1, 2008. Source: The Kenai Peninsula Borough Sales Tax Department. 71 TABLE VIII CITY OF KENAI, ALASKA TABLE IX RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities Estimated Percentage of Percentage of Estimated Actual General Obligation Personal Income Taxable Value of Debt Per Fiscal Year Bonds * Property Capita ** 1999 $ 970,000 0.54% 0.23% 140 2000 795,000 0.40% 0.19% 115 2001 625,000 0.31% 0.14% 88 2002 460,000 0.23% 0.10% 65 2003 300,DD0 0.15% 0.06% 44 2004 150,000 0.07% 0.03% 22 2005 - 0.00% 0.00% - 2006 - 0.00% 0.00% - 2007 - 0.00% 0.00% - 2008 - 0.00% 0.00% - Note: Details regarding the City's outstanding debt can be Found in the notes to the financial statements * Personal income is estimated by using Kenai Peninsula Borough income to calculate per capita income and total income for City of Kenai. *" Population data can be found on Table 12. CITY OF KENAI, ALASKA TABLE X COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2008 Percentage City of Applicable to this Kenai's Net Debt Governmental Share Name of Governmental Unit Outstanding Unit of Debt City of Kenai, Alaska $ - 100.00% $ - Kenai Peninsula Borough 22,519,000 9.20% 2,072,396 Central Peninsula Hospital 41,580,000 13.98% 5,811.498 Total Direct and Overlapping $ 64,099,000 S 7.883.894 Source: The Kenai Peninsula Borough. 72 X W J C f~ ~ ~ ~ ~ N ~ m Ni Nil O N O ICI O N N _ ~ _ O Ni N3 O r O r O N ~ ~ N ~ to Ni OJ ~ O~ ~ c m m <° of N r ~ Ni N3 Z D p N NN ZQ l N n ti ~ I` ~y~ Ni fA QN ~QS Y Z c0 W O V CO M J Q z J - cl ~ ~ tf) Z U W C N r ~ W ~ {y N Ni Ni Y ~z~ m .n N v Q mhX C) N ( O ~ h D N y N ~ ~ Q J Z N) I Ni Q O d J r ~ ~ N M Q CI ~- O O N ~ ~ N3 N3 CI ml ~ N O O N} Ni tCJ N to ~ O O O~iI pf N I~ O O Ni Ni C s ~ O O~ ~`p ~ _ N ~ c ~ a ~ !0 N O O. d ~ <a m D I- J Z a m W O ~ ~ o Q N W M J LL Z O Z ~ O ~ a 0 U N W 7 m Ni a m 0 m ~ N ~ n ~+ a ~ ~ N _ N ~ (0 ~ ~ ~ C N O ~ ~ o C f0 ~ ~ 0 _ ~ ~ ~ ~ N Q O ~ Q ~ ~ J 73 X W J m h N U i- 1- F U_ Z U w p Z Q U_ 2 d K 0 W p Y N J Q z W Y tL O h U W J U h LL Z W r F N J Y O 0 0 0 o a o 0 0 ~ 0 0 0 0 0 0 0 0 0 ov~rcovr ov eo m oio oi~ror a m E ~ m c ~ N ~ ~ N M V V' N W M M N M M m O m~ W OM ( ] r D i E mmmmo3 ommmo r U O ~ ~ C W s min co co <orrwornrn O1 ~ Q M M M M M M M V M M O C m O m m m N m ~ r C m C ~ O C °~ a m i- N r M W (D t0 M M , ~ ro ro~ M n ~ o o ° U C N m~ w v ~ m o f Y o ~ (~ ` O N W W W W O> O N M M s > O U N N N N N N M M M M rn ~ N ~ d ~ o a a w o ` o m o m ,~ • m s ~ U ~ ~ Mmrn~v.-rn r_oo 0 O 3 ~ t N 3 ~ ~ ~ O :6 y V (O t 0 N W r~ C' N N G m m m ~ ~ E m cMO~<d ai ui oivodd p m m E o~ m m c rn v o o rn rn r r , ~ ~ m ~~ N m~_~ M V 41 4J N N tp r r m N~ 0 0 a E $O ~.-.-.-.-~ ~~ ~ ~ ~ m a ~ ' o~£ Y m o~ . m E c er m H my ~ 3 n N ~ O O ' N n OJ C C ~ (p N m C o, m - N '. '.. mL G rn 0 V V d' O W O O Y ~' E O ~, ~ O N E d' V t0 tp r V r r ' y N O U G , +~ r t0 O OJ rn M In V M M ` ° - - m - C O~ -~ m'-y - aimooo~ ~ w n~ N Q ~ a~ w^o ~ vv~n~n~n~ ~ u i o ` - O m ' - 0 o m -o 0 . o ,m. C O m G t m E a ~ E. ~ N r ~ O rn N W U1 m r r N t1J tfJ r 07 to N M Vi ~' N p ~ O _ m o Emmmmwrco co cor 'm 'o a m . . N c.o m L- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ T N N ~ m y N N m 0 N ~ c > ~ ~ m m ~'o > O W Q m Q ` m N t U U) O U O m ~/+ U ~ , N N rn M rn rn W C' d' d' W T ~~ ~ E ~~ Q C rnwoN ° W~ W W W ~ . 4 o - Yom.. `?VJ d r (O (O r r t0 <O (O t0 t0 m O. O 9 "" ~ N O. N ~ >''6 m N C , a° ~ o U -o °-' -' m m m ° i E . ` s , ~ , 0 0 ' ~ `o o y .. ~ ~ E R rn O N M V t0 t0 r m U~ rn o 0 0 0 0 0 0 0 o N v - m m m m c ~ 0] C w m rn o 0 0 0 0 0 0 0 0 ~ 5i ^ m ~ p LL Y .- N N N N N N N N N C C p m ^ Q p h W 2 v 74 CITY OF KENAI, ALASKA KENAI AREA PRINCIPAL EMPLOYERS Rank Employer Annual Average Employment 2006 2007 2006 2007 1 1 State of Alaska -Excludes University 272 291 3 2 Kenai Peninsula Borough School District 235 236 2 3 Peak Oilfield Services 250 228 4 4 Federal Government 211 222 6 5 Tesoro Alaska Petroleum Company 171 181 5 6 Agrium 196 162 7 7 Union OiI of California - (Unocal) 158 134 8 8 Home Depot 117 122 9 9 City of Kenai 115 118 10 10 Safeway 111 110 Source: The Kenai Peninsula Borough. Note (1) Data unavailable at this time. Prior year information is being presented again. Note (2) These employers are not necessarily located in the City of Kenai, but are in close proximity to the City and are the employers that have the largest economic impact on the City. Note (3) Data for years prior to GASB 44 implementation is unavailable; therefore, data for ten years ago is not presented. TABLE XIII 75 y O O O~ N O O O O O V V ~ (D t0 W X O I N N O I~ O 0 0 (D 0 0 (O M~ V I~ .- V W I ~ ~ '- N M W (O c0 (V (V (V ~ tp (O N~ fp ~ W O W N J m Q h O O O N N O O O O O d' V ~ O~ (D W V' c I ~n o n v o o m o 0 co sn o ( r ~ v v ) ~ ~ ~ (V M W ID W N M N~ (O (O ~ (0 N~ ~ O N ~ D O O M to 0 0 0 0 t0 V l~ c O O W tD O N O !D d' 0 0 O O O (O N O ttl V I O l ~ « N d' W <O M N M N N (O ~ M (O N W O N r ~ r ~ O O O M O 0 0 O> O O O O I~ O 0 0 O G O H O lD V O O ~- 0 0 0 lD I~ O 0 0 O~ O I ~ .- N d' W (D W N t~] N lV (O ~ ~ (O ~ c0 O N ~ ~ O O O M of O O Q1 0 0 0 0 f~ r 0 0 0 (p I O H O (O M O O ~- O O O fD 1~ O O O f~ W 0 O a t .- N V~ (O W N M N N N ~A ~ (D ~ cp Z li N ~ = LL (/1 O O O O h 0 0 O~ O M O N M ~ O W N d' f7 `~ O O M O O O (0 O N I~ 0 0 O> O a A N N 1~ N W N M ~ N tp M ~ (O d' O O N Y Q N ~ ~ ~ ~ O ~ j d ~ Q W V N N O O M 0 0 0 0 M W N r W O O 0 M N ( O 6 i U JI tl W Z LL ~~ ~ ~ N to r GO of (V M ~ (O ` ~ t0 C (O O, gp Y W 2 N B J O ; h ~~ ' ~ (J Q ~ 0 0 0 0 I~ O O O O O O N V O ifJ O O M O O O M O M r N N I W O 7 rn O r V~ ~[1 O I v w J ~ r r N ifl (0 (p W N M ~- ~- to M I ~ ~ ~ ~l ~ NI ` O •- F J J O O O O h 0 0 0 0 0 (D N O to O O O> V O N O O M O O O M O (O I~ M W O N V' W LL C) ~ N to M O W N M< N~ ~ O V (~ M N O O O O O h 0 0 0 0 0 tp N OI N O O I fp~ O~ O O N 0 0 0 0 0 (O i~ M O O~~ O G O R N R N c ~ c o H o m a ¢ (6 -C m N ~ G N U Y U ~ U ~ u- d y O O C ~ LL m ' C °° m ~ m ~.3 d Q ~ m m ~ c'ci U~ m c ~ c 3 m~ m LL U~ ~ d m m ~ 'c ~ ~' an d y a «_ o 2' w m c _o ~ ' w ~ -~ m is a m p ot1 O U ~ m ~,~~~i~ai~ o¢a a~ ~a ~ a o C , , ~ Q C N C7 S Q G f6 Q N U C l6 C LL. Y O w U F- V 0 N 76 x W J m F Z q O % W N } Y a me Q ~.~ Q OZ r W w ~< X U W Z 2 ~ W U z y Q C ~ J W a O O) N m) N M (O ~ N O r W O n m r a M O M M O r .= M ~ ap ~- O ~ NI N o~ N r ~ MI N ~ ~ V ~ t0 ~- O ~ r v o ti r o M NI N OI N of N rnl r aol as zz N O W O N r a O O N N f0 r N N .- O t0 O O N N r to o m N (O rn m n N n N O M N N r O f~ O ~ W OJ N N N m O] ~- ~ h r (O N r r O N ~ O O N r N I~ N f~ V V W ~ OJ W (O m r> r W N r ~ ro r uMi v r N N M N I~ W ti~ 0 ~ N -p U N U ~ Z o u~i uj a ~ y U ~ tq /+ C N -O N h ~ N ~ d ~ m ~ ~ C O N ~` Z ' y~ C w~ ° ~p ~ ~ m c - w o U U m = m N~ ~ E N v a ry ~ E a m m E d o a U d Z= ~ I- Q ~ ~ a iL u. a M O O f~ O N M O I~ ~ N W O O M m O O N O O N O O O M O O N O O u1 ~w m mM O ~ O O O M M O N a0 O O tOp W N m ~n m N O N N N f~ ~ ~ ~ O to O N N W (~O fND N O W O (p ~ O ~ O N vii v m ~ ~ ~ o0 0 m u~i ~ o n ~ o ~ ~ O N m f~ V N 1~ 7 (O o T t0 T Q N N U C ~ O f~l o- m c Vi 01 N E O m N rn¢ ~ p~ c a w ~ ~ C A Q ~ W y O N ~ N ~ F- C Ip 3 O ~ ~ m ~ c a ~ a m P? .d. ~ ~ C y c d E N v O U O v 0 y 77 N O ~ N ~ a7 ~ N ~ N ~ .- X ~I ( D ( O W N J N F O N O W N ~ m~ O ~ N ~ ~ I ( D . - ( D O O ~ O~ N ~ O ~- N ~ ~ O ~ ) O N O ~ O~ N ~ OJ ~ O ~ N ~ .- O N O ~ O~ N ~ Q~ O ~ N ~ ~- ~ O N O O r r 0) O ~ N ~ ~ (O ~ ~ O O h U Z N ~ O~ r r m .- O ~ N ~ r = O) r L ~ L O N m 5 W 4 F ° ~ o~ rn~o~N~ ¢ o Q N U N Z F N W Q LL N O ` r O O ~ N ~ O LL N W O I ( p ~ ~ ~ ~ ~ O N ~ N y y U ~ J ~ c O~ .- r OS .- O .- N ~ O Q ~ 9 I- .- LL Q U y _~ N y LL. ro a ` . m t- ~ O Y ~ O O O ~ N LL ~ ~ ~y U ` -6 - ~ ~ C N _ o N N C~~ w O ~~ O ~' C O O O U .U ~ fl. _ LL p~ p U ~ E N ~ E 0 0 U~ N d 4 ~- (6 y d y~ 0 0 y y . ~ O O x u0i U U ~ p "' O O c N N N N a Z ~ Z U N a U E G LL m fn K I.L U ~ ~ ~ i~ d K Z N C N r d u U y O V O fq 78