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I COUNCIL MEETING DATE: CLUA -c- 0 1p 1 X1
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D
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eltman /Floyd
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A
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soon as possible before leaving the office for the weekend.
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COUNCIL MEETING OF:
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TESTIMONY SIGN-IN SHEET
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JUNE 16, 2010
REGULAR COUNCIL MEETING
REQUESTED ADDITIONS /CHANGES TO THE PACKET
SUBSTITUTE
WITH: ITEM H -2, Purchase Orders Exceeding $15,000
Addition of purchase order to INX, Inc. and memorandum
of explanation.
None.
CONSENT AGENDA
REQUESTED BY:
Finance Director
ITEM A: CALL TO ORDER
AGENDA
KENAI CITY COUNCIL REGULAR MEETING
JUNE 16, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: /www.ci.kenai.ak.us
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes per speaker. Persons may
give their time over to another speaker present, however no single speaker present may
speak for more than 30 minutes combined on their own and on others' behalf.)
*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:
ITEM D:
SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10)
minutes per speaker)
1. Janice Chumley, Invasive Plant Coordinator Alaska Invasive Weed
Awareness Week and the City of Kenai Opportunity for Invasive Plant Controls..
2. Olivia Pfeifer Bird Hazing Program Update
ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three
(3) minutes per speaker)
PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker.
Persons may give their time over to another speaker present, however no single
speaker present may speak for more than 30 minutes combined on their own and
on others' behalf.)
1. Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform
Plumbing Code, to Delete the Local Requirement That Underground Water
Service Pipe Less Than Two Inches in Diameter Must be in Copper
2. Ordinance No. 2490 -2010 Increasing Estimated Revenues and
Appropriations by $4,255 in the Airport Fund for a Donation Received From the
Kenai Watershed Forum for the City's Summer Bird Hazing Program at the
Kenai Airport
3. Ordinance No. 2491 -2010 Increasing Estimated Revenues and
Appropriations by $1,500,000 in the Library Improvements Capital Project
Fund
1
6
8
4. Ordinance No. 2492 -2010 Reducing Estimated Revenues and
Appropriations by $1,500,000 in the General Fund and Library Improvements
Capital Project Fund 12
5. Resolution No. 2010 -34- Adopting the City of Kenai Updated Annex to the
Kenai Peninsula Borough All- Hazard Mitigation Plan as an Official Plan 14
6. Resolution No. 2010 -35 Awarding a Contract to Kachemak Electric Co., Inc.
for the Project Entitled Kenai Multipurpose Facility Lighting Upgrade -2010 for
the Total Amount of $58,587.00 63
7. Resolution No. 2010 -36 Authorizing Sharing Cost Savings From the
Calendar Year 2009 Health Insurance Plan with Employees 65
8. Resolution No. 2010 -37 Authorizing the City of Kenai to Issue Revenue
Bonds, 2010 (Double Glacier Builders, LLC Project) in the Principal Amount of
Not to Exceed $1,700,000; the Execution and Delivery of a Loan Agreement to
Secure the Bonds; Fixing Certain Details of Such Bonds and Authorizing Their
Sale 68
9. Resolution No. 2010 -38 Rejecting All Bids for the Project Entitled, "Elevated
Light Penetrating Walkway Ramps Kenai Dunes 2010" 116
10. Resolution No. 2010 -39 Awarding a Contract to Harbor Enterprises, Inc ,
d /b /a Alaska Oil Sales, for Furnishing and Delivering of Diesel Fuel 118
ITEM E: MINUTES
1. *Regular Meeting of June 2, 2010 121
2. *Special Meeting of June 7, 2010 144
ITEM F: UNFINISHED BUSINESS
ITEM G: NEW BUSINESS
1. Bills to be Ratified 148
2. Approval of Purchase Orders Exceeding $15,000 149
3. *Ordinance No. 2494 -2010 Amending the Kenai Municipal Code, Chapter
23.55 Entitled "Personnel," Including 23.55.030 Entitled "Qualification Pay
23.50.010 Entitled, "Employee Classification and, 23.55 Fiscal Year 2010
Operating Budget Salary Schedule
4. *Ordinance No. 2495 -2010 Increasing Estimated Revenues and
Appropriations by $50,000 in the Water, Sewer and Streets Capital Project
Fund for Public Road, Water, and Sewer Improvements
150
155
5. Action Item Amendments to Kenai City Council Policy for Commission,
Committee, Board and Council on Aging Meetings and Work Sessions 157
6. Discussion Amendments to Kenai Municipal Code 1.10.060 Entitled,
"Calling Special Meetings" 161
7. Discussion City of Kenai 401(A) Plan/Amendment 163
ITEM H: COMMISSION /COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission 165
3. Harbor Commission 170
4. Library Commission 173
5. Parks Recreation Commission 176
6. Planning Zoning Commission 177
7. Miscellaneous Commissions and Committees
a. Beautification Committee
b. Alaska Municpal League Report
c. Mini -Grant Steering Committee
d. Kenai Convention Visitors Bureau
e. Reports of KPB Assembly, Legislators and Councils
ITEM I: REPORT OF THE MAYOR
ITEM J: ADMINISTRATION REPORTS
1. City Manager 186
2. City Attorney
3. City Clerk
ITEM K:
ADDITIONAL PUBLIC COMMENTS (Public comment limited to five (5)
minutes per speaker)
1. Citizens
2. Council
EXECUTIVE SESSION None Scheduled.
ITEM L:
PENDING LEGISLATION (Items listed below are legislation which
will be addressed at a later date as noted and are not action items
for this meeting.)
Resolution No. 2009 -68 Supporting Actions Building and Maintaining a Sustainable
community Within the City of Kenai, and Supporting Networking with Local Governments
on the Kenai Peninsula. (Clerk's Note: At the May 19, 2010 meeting, Resolution No. 2009-
68 was substituted and then postponed to July 7, 2010 for consideration and an additional
public hearing.)
Resolution No. 2010 -23 Opposing An Initiative Creating an Alaska Anti Corruption
Act" Which Will be on the 2010 Alaska Primary Election Ballot. (Clerk's Note: At its April 7;
2010 meeting, Council postponed Resolution No. 2010 -23 to its July 7, 2010 meeting. The
motion to adopt is active.)
Ordinance No. 2493 -2010 Amending KMC 13.40.040 to Provide for a Speed Limit of
Fifteen (15) Miles Per Hour While Driving Motorized Vehicles on a Portion of the North
Shore Public Beach Within the City of Kenai and Making Technical Corrections. (At its
June 2, 2010 meeting, Council introduced Ordinance No. 2493 -2010 and subsequently
postponed the public hearing to the first meeting in August, 2010 (August 4, 2010).)
ITEM M: ADJOURNMENT
INFORMATION ITEMS
KENAI CITY COUNCIL MEETING
JUNE 16, 2010
Page
No.
1. 6/16/2010 Purchase Orders Between $2,500 and $15,000 for Council
Review 201
2. Budget Transfer in Capital Projects in Excess of 5,000
3. Kenai Visitors Cultural Center Quarterly Report 202
4. 6/4/2010 D. Bannock, Kenai Peninsula Borough, letter related to removal of
dead and dying spruce trees in the City of Kenai 213
5. 6/7/2010 A. McNeal email transmission related to Kenai Fire Department
response to a home fire off Candlelight Drive, Kenai 215
JUNE 16, 2010
REGULAR COUNCIL MEETING
REQUESTED ADDITIONS /CHANGES TO THE PACKET
SUBSTITUTE
WITH: ITEMrs -2, Purchase Orders Exceeding $15,000
Addition of purchase order to INX, Inc. and memorandum
of explanation.
None.
CONSENT AGENDA
REQUESTED BY:
Finance Director
the"(
KENAI. ALASKA
Sponsored by: Administration and Building Official
CITY OF KENAI
ORDINANCE NO. 2489 -2010
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING
KMC CHAPTER 4.15.015, LOCAL AMENDMENTS TO THE 2006 UNIFORM PLUMBING
CODE, TO DELETE THE LOCAL REQUIREMENT THAT UNDERGROUND WATER
SERVICE PIPE LESS THAN TWO INCHES IN DIAMETER MUST BE IN COPPER.
WHEREAS, the City has adopted the Uniform Plumbing Code, 2006 Edition, of the
International Association of Plumbing and Mechanical Officials, including the
appendices; and,
WHEREAS, as part of the process of adopting the 2006 Uniform Plumbing Code, the
City made certain additions, deletions, and amendments to better suit the needs of the
City and the unique building and construction circumstances present in a subarctic
building and maintenance environment; and,
WHEREAS, upon further review, the City's Building Official recommends that the local
requirement imposed by the City to requiring that underground water service piping of
less than two inches be copper is not a necessary standard in Kenai and that retention
of that local amendment could unnecessarily increase building costs in the City while
providing no discernable benefit or protection of the public better than the standards
already included in the 2006 Uniform Plumbing Code as drafted.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form. This is a Code ordinance
Section 2. Amendment of Section 4.25.015 of the Kenai Municipal Code: The Kenai
Municipal Code, Section 4.25.015, Local amendments to the 2006 Uniform Plumbing
Code, is hereby amended as follows:
4.25.015 Local amendments to the 2006 Uniform Plumbing Code.
413.1 Fixture Count.
Revise by deleting "Table 4 -1" and inserting 2006 International Building Code,
Chapter 29 and Table 2902.1.
508.5 Relief Valve Discharge.
Delete Section 508.5.
603.4.8 Water Cooled Compressors, Degreasers.
New Text Underlined rDELETED TEXT BRACKETED]
Ordinance No. 2489 -2010
Page 2 of 2
Amend section by adding a second paragraph to read as follows:
Installation, operation or use of air conditioning or cooling units employing
water or other fluid as a cooling agent without a recovery and recirculation unit
is prohibited.
[604.0 MATERIALS.
ADD THE FOLLOWING TO SECTION 604.1: "UNDERGROUND WATER
SERVICE PIPING LESS THAN 2" IN SIZE MUST BE COPPER. "1
604.2 Materials Copper Tube.
Delete the words "or underground outside of structures" in the Exception.
608.7 Vacuum relief valves.
Add the following after "elevation "more than one story."
701.1.2 Sanitary drainage.
Delete the words "Chapter 15, Firestop Protection" and replace
"the building code as adopted by KMC."
704.3 Fixture connections (drainage).
Delete the second and third sentences.
801.3 Bar and Fountain Sink Traps.
Delete the words "5 feet" from the last sentence and substitute the words "15
feet."
811.9 Chemical Wastes Dental Vacuum Systems.
Add a new section as follows:
811.9 Vacuum dental systems may be installed with Schedule 40 PVC pipe and
fittings, above and below grade. Piping and fittings installed in plenums or
penetrating fire rated assemblies shall have a flame spread index of not more
than 25 and a smoke developed rating of not more than 50 when tested in
accordance with the test for Surface Burning Characteristics of Building
Materials, or to be protected by an approved fire and smoke rated material.
903.1.2 Vents; materials.
h the words
Delete reference to "Chapter 15 Firestop Protection" and replace with "the
Building Code as adopted by KMC."
New Text Underlined' DELETED TEXT BRACKETED]
Ordinance No. 2489 -2010
Page 2 of 2
TABLE 10 -1 Horizontal Distance of Trap Arms.
Add and after Horizontal Distance of Trap Arms and add the following
below Table 10 -1.
Trap arms for residential floor drains may be extended beyond the limits
of Table 10 -1 to where they pass under the nearest wall before installing the
required vent.
A maximum of two (2) unvented floor drains may be installed in
residential garages, Each drain. shall have a two -inch (2 minimum trap and
trap arm and two -inch (2 floor drain. The tail piece need not be vented. Both
traps must tie into the main building drain separately.
1007.0 Trap Seal Protection.
Amend section by adding the following exception:
Exception: R -3 occupancies (one- and two- family dwelling units).
1101.5 Subsoil Drains.
Amend Section 1101.5.1 by adding to the beginning of the paragraph:
When required by the administrative authority...
1101.9 Filling Stations and Motor Vehicle Washing Establishments.
Amend Section 1101.9 by adding to the beginning of the paragraph:
When required by the administrative authority...
1101.11.1 Primary Roof Drainage.
Delete the first sentence and replace with the following, to read as follows:
Roof areas of a building shall be drained by roof drains, gutters, scuppers, or
sheet flow off the edge of the roof.
CHAPTER 12 Fuel Piping.
Chapter 12 has not been adopted. Refer to the International Fuel Gas Code. The
sizing methods in Section 1217 shall be considered acceptable methods of
sizing gas piping.
1316.0 Materials Medical Gas Systems.
Amend Section 1316.4 by adding a second paragraph as follows:
Vacuum dental systems may be installed with Schedule 40 PVC pipe and
fittings, above and below grade. Piping and fittings installed in plenums or
penetrating fire rated assemblies shall have a' flame spread index of not more
New Text Underlined {DELETED TEXT BRACKETED]
-3-
Ordinance No. 2489 -2010
Page 2 of 2
ATTEST:
than 25 and a smoke developed rating of not more than 50 when tested in
accordance with the test for Surface Burning Characteristics of Building
Materials, or to be protected by an approved fire and smoke rated material.
Section 3. Severability: If any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby
declares that it would have enacted the remainder of this ordinance even without such
part, provision, or application.
Section 4. Effective Date: Pursuant to KMC 1.15.070(f), this ordinance shall take
effect one month after adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010.
Carol L. Freas, City Clerk
PAT PORTER, MAYOR
New Text Underlined; [DELETED TEXT BRACKETED
-4-
Introduced: June 2, 2010
Adopted: June16, 2010
Effective: July 16, 2010
MEMO:
TO: City Council
FROM: Rick Koch
)fik DATE: May 27, 2010
SUBJECT: Ordinance 2489 -2010
The purpose of this correspondence is to request your approval of the above referenced
Ordinance.
The effect of your approval will be to delete a local amendment to the Uniform Plumbing Code
which requires all water service piping under 2" in size to be copper, There are a number of
alternative materials that are allowed under the Uniform Plumbing Code, HDPE (high density
polyethylene) piping is one that is commonly used.
Thank you for your attention in this matter.
'Village with a Past, a with a Futare"
210 Fidaigo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 FAX: 907 283 -3014
the e.*. of
KE �GSKA
Airport Fund Airport Airfield
Increase Estimated Revenues:
Miscellaneous Donations
Increase Appropriations:
Rentals
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
CITY OF KENAI
ORDINANCE NO. 2490 -2010
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $4,255 IN THE AIRPORT FUND
FOR A DONATION RECEIVED FROM THE KENAI WATERSHED FORUM FOR THE
CITY'S SUMMER BIRD HAZING PROGRAM AT THE KENAI AIRPORT.
WHEREAS, the City has received a donation from the Kenai Watershed Forum in the
amount of $4,255 for expenditures of the City related to its summer bird hazing
program; and,
WHEREAS, the 2009 Caring for the Kenai Program winner developed a bird hazing
program utilizing a trained dog to discourage birds from landing at the airport; and,
WHEREAS, the City plans to implement the winner's plan this summer utilizing a dog
leased from a kennel specializing in this type of training and has received support
from the Kenai Watershed Forum for the project.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010.
New Text Underlined; [DELETED TEXT BRACKETED]
-6-
Suggested by: Administration
PAT PORTER, MAYOR
$4,255
4,255
Introduced: June 2, 2010
Adopted: June 16, 2010
Effective: June 16, 2010
ena i
Memo
To: Rick R. Koch City Manager
From: Mary Bondurant Airport Manager
Date: May 28, 2010
Subject: Airport Bird Control Dog Project
"Serving -t e/Gveazar Kenai Penincular
305 It WILLOW SC. SURE 200 KENAI, ALASKA 99611
TELEPHONE 90728:67961
Municipal Airport FAX 9872833737
This memo is notification that the City has received a check from the Kenai Watershed
Forum in the amount of $4,255. This is the total amount Ms. Olivia Pfeiffer has received
through her fundraising efforts. The funds will be applied to the above mentioned project at
the Kenai Airport.
The airport bird control dog will arrive in Kenai on Monday, June 7`" with training to start on
Tuesday, June 8
Please contact me if you have any questions or need any additional information.
www.ci.kenai.ak.us.
_7_
�ti�� yor
KENAI. ALASKA
CITY OF KENAI
ORDINANCE NO. 2491 -2010
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $1,500,000 IN THE LIBRARY
IMPROVEMENTS CAPITAL PROJECT FUND.
WHEREAS, SB230 granted the City $1,500,000 for the expansion of the Kenai
Community Library; and,
WHEREAS, SB230 was signed by Governor Parnell on and will
become effective July 1, 2010; and,
WHEREAS, receipt of the grant will facilitate the repayment of City General Fund,
Fund Balance in the amount of $1,103,605 previously appropriated to the project;
and,
WHEREAS, Ordinance 2492 -2010 reduces the amount previously appropriated
utilizing a transfer from the City's General Fund by $1,103,605; and,
WHEREAS, the remaining $396,395 will allow for replacement of the aging roof on the
existing library building and construction of a new circulation desk for the expanded
facility; and,
WHEREAS, the new project budget for the Library Expansion project will be
$5,711,911.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
Library Improvements Capital Project Fund
Increase Estimated Revenues:
State Grants
Increase Appropriations:
Construction $1,500,000
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010,
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
PAT PORTER, MAYOR
$1,500,000
Introduced: June 2, 2010
Adopted: June 16, 2010
Effective: June 16, 2010
KENAL,ALASKA
MEMO:
Village with a Past, City with a Future
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 12
Telephone: 907 283 -7535 FAX: 907- 283 -3014 ll t'
1991
TO: City Council
FROM: Rick Koch
DATE: May 27, 2010
SUBJECT: Ordinance 2491 -2010 Ordinance 2492 -2010
The purpose of this correspondence is to recommend approval of the above referenced
ordinances.
The effect of your approvals is to appropriate a State Grant in the amount of $1,500,000 to the
Kenai Community Library Improvements Capital Fund and to re- appropriate $1,103,605 from
the Kenai Community Library Expansion Project to the General Fund.
If Ordinances 2491 -2010 and 2492 -2010 are approved the effect to the Kenai Community
Library Improvements Project Budget and to the Projected FY2010 General Fund Budget are as
follows:
Library
The Library Expansion Budget would simultaneously be increased by 51,500,000 and
reduced by 51,103,605. This results in a net increase of $396,395 which will provide
additional funding for the complete replacement of the roof on the existing Library and
the construction of a new circulation desk.
General Fund
The latest year -end projection for FY 2010 General Fund financial performance did not
include a re- appropriation (re- payment) to the General Fund. As a result of
appropriations during FY2010 to the Library project, the projected General Fund
performance is a deficit of $1,050,304. The re- appropriation of $1,103,605 to the
General fund will result in a projected year -end surplus of $53,301.
Governor Parnell will have signed SB 230, the State Capital Budget, prior to the scheduled
public hearing (June 16` for these two ordinances. In the event the Governor vetoes the
$1,500,000 appropriation for the Kenai Community Library Expansion Project, Administration
will request the Ordinances be pulled or voted down.
-10-
the u
kEH N./ SKA
Rick Koch, City Manager
-7/. From: Terry Bubonic, Finance Director
Date: June 10, 2010
Re: Amendment information for Ordinance 2491 -2010.
1 V'/laye with a Past, Gc y with a Fate/ve
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
Ordinance 2491 -2010 was introduced omitting the date on which the Governor signed into law
S8230 as the signing had not take place at the June 2, 2010 introduction date. This memo
provides the needed amendment to complete the Ordinance prior to enacmient.
Second WHEREAS.
June 3, 2010 should be inserted into the blank indicating the date Governor Parnell signed 58230
into law.
Suggested Amendment:
I move to amend Ordinance No. 2491 -2010 by inserting June 3, 2010 in the blank of the Second
Whereas.
hea y of
KENAI, ALASKA
U
CITY OF KENAI
ORDINANCE NO. 2492 -2010
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REDUCING
ESTIMATED REVENUES AND APPROPRIATIONS BY $1,500,000 IN THE GENERAL
FUND AND LIBRARY IMPROVEMENTS CAPITAL PROJECT FUND.
WHEREAS, SB230 granted the City $1,500,000 for the expansion of the Kenai
Community Library; and,
WHEREAS, SB230 was signed by Governor Parnell on and will
become effective July 1, 2010; and,
WHEREAS, receipt of the grant will allow for the reduction of 51,103,605 in transfers
previously appropriated from the General Fund in fiscal year 2010 for the construction
project.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
Library Improvements Capital Project Fund
Decrease Estimated Revenues:
Transfer from General Fund
Decrease Appropriations:
Construction
General Fund
Decrease Estimated Revenues:
Appropriation of Fund Balance
Decrease Appropriations:
Transfer to Library Construction Capital
Project Fund
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010.
ATTEST:
PAT PORTER, MAYOR
Carol L. Freas, City Clerk
Introduced: June 2, 2010
Approved by Finance: o^-' Adopted: June 16, 2010
Effective: June 16, 2010
New Text Underlined DELETED TEXT BRACKETED)
-12-
Suggested by: Administration
$1,103,605
$1,103,605
$1,103,605
$1,103,605
the ci o f
KENAI, ALASKA
To: Rick Koch, City Manager
7 From: Terry Eubank, Finance Director
Date: June 10, 2010
Re: Amendment information for Ordinance 2492 -2010.
"Village with a Past, C# with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907- 283 -3014
Ordinance 2492 -2010 was introduced omitting the date on which the Governor signed into law
SB230 as the signing had not take place at the June 2, 2010 introduction date. This memo
provides the needed amendment to complete the Ordinance prior to enactment.
Second WHEREAS.
June 3, 2010 should be inserted into the blank indicating the date Governor Parnell signed SB230
into law.
Suggested Amendment:
I move to amend Ordinance No. 2492 -2010 by inserting June 3, 2010 in the blank of the Second
Whereas.
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1/
the ai
KEKAIALASKA
CITY OF KENAI
RESOLUTION NO. 2010 -34
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING THE
CITY OF KENAI UPDATED ANNEX TO THE KENAI PENINSULA BOROUGH ALL
HAZARD MITIGATION PLAN AS AN OFFICIAL PLAN
WHEREAS, the City of Kenai recognizes the threat that all hazards pose to people and
property; and,
WHEREAS, undertaking hazard mitigation actions before disasters occur will reduce
the potential for harm to people and property and save taxpayer dollars; and,
WHEREAS, the City of Kenai Planning Zoning Commission, at their regular meeting
of April 28, 2010, unanimously passed their Resolution No. PZ10 -06 recommending
Kenai City Council approval of the Annex Plan; and,
WHEREAS, the State of Alaska Division of Homeland Security and Emergency
Management (DHS &EM) and the Federal Emergency Management Agency (FEMA)
require that a local hazard mitigation plan be adopted by resolution as a prerequisite
of future mitigation funding; and,
WHEREAS, the City Annex has been submitted to the DHS &EM and FEMA officials for
final review and approval along with the Kenai Peninsula Borough All Hazard
Mitigation Plan.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the City of Kenai Annex to the Kenai Peninsula Borough All Hazard
Mitigation Plan is hereby adopted. The City Manager is authorized to make
administrative changes and updates and advise the City Council.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010.
ATTEST:
Carol L. Freas, City Clerk
-14-
PAT PORTER, MAYOR
the city o f
KENl1� SKA
MEMO:
"Village with a Past, (iy with a Fistrare
Kenai Police Department tzetzl
107 S. Willow St., Kenai, Alaska 99611 1'I�II
Telephone: 907- 283 -7879 FAX: 907- 283 -2267
TO: Rick Koch City Manager
FROM: Gus Sandahl Police Chief
DATE: 619/10
SUBJECT: Requesting Resolution Approving Updated All-Hazard Mitigation
Plan
In January, 2010 the Borough Office of Emergency Management notified the City
of Kenai that the All-Hazard Mitigation Plan was due for a 5 -year update. Five
years ago the City of Kenai (along with other cities in the KPB) drafted a plan
which was annexed into the Kenai Peninsula Borough All- Hazard Mitigation Plan.
From February to April, 2010, the plan was updated by the City administration
(with input from Police, Fire, Public Works, Planning, Capital Projects). The plan
was submitted to the Planning and Zoning Commission at their April 14 and
April 28 meetings. At the April 28 meeting, P &Z passed Resolution PZ 10 -06,
recommending that Council adopt the City of Kenai annex to the Borough All-
Hazard Mitigation Plan.
I have been in contact with Borough and State Homeland Security officials, who
said the next step after P&Z approval is to send the plan to State Homeland
Security for approval. We have not yet received the plan back from State
Homeland Security and have been told that they are reviewing it with FEMA.
There are time constraints associated with the City of Kenai's approval of the
Annex to the Kenai Peninsula Borough Plan. Therefore, the city administration
suggests approval of the "City of Kenai Annex to the Kenai Peninsula Borough
Local All Hazard Mitigation Plan" in its present form. The plan will then be
submitted to the Kenai Peninsula Borough for annex into their plan. Other
municipalities in the Borough may be following similar procedures. When
FEMA and State Homeland Security complete their review of the City's plan it
may require modification and, if those modifications are substantive, additional
action of Council.
-15-
1992
MEMO:
TO: Planning and Zoning Commission
FROM: Gus Sandahl Police Chief
DATE: April 21, 2010
SUBJECT: All Hazard Mitigation Plan
Commissioners,
"Villaye with a Past, Cc with a Future
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 M
Telephone: 907 283 -7535 FAX: 907- 283 -3014 t �Irl l
At your April 14, 2010 P &Z Commission meeting I discussed with you the
process involved with updating the All- Hazard Mitigation Plan. Since that
meeting, City of Kenai administrators from Police, Fire, Public Works,
Planning, and Capital Projects reviewed the plan further and amended it to
the draft form that is presented to you for the April 28, 2010 P &Z meeting.
The City Administration appreciates your involvement with this process,
and welcomes any suggestions you have for improving the plan. If you
approve of the plan, then we will take the next step of submitting the plan
to State Homeland Security for further review. Thank you for your review,
and for any suggestions that you might have.
-16-
1992
City of Kenai
ANNEX to the
Kenai Peninsula Borough
Local All Hazard
Mitigation Plan
(References to "the Plan" in this Annex refer to the
Kenai Peninsula Borough All Ilazard Mitigation Plan)
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 1
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Table of Contents
Introduction 3
A. Purpose of the Plan
B. Methodology
C. City of Kenai History and Background
R. Adoption Process and Documentation 6
III. Planning Process 8
A. How was it Done
B. Who were the Contributors
C. Public Opportunity for Involvement
IV. Hazard Identification Risk Assessment 8
A. Hazard Identification
B. Profile of Hazard Events
C. Vulnerability Assessments
D Analysis of Development Trends
V. Mitigation Goals, Objectives, and Strategies
A. Erosion
B. Wildland Fires
C. Floods
D. Volcanoes
E. Earthquakes
F. Tsunami
Vi. implementation and Maintenance Procedures 24
A. hnplementation
B. Maintenance
Appendices
A. Glossary of Terms 25
B. Acronyms 44
City of Kenai ALI Hazard Mitigation Plan Final April, 2010
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Page 2
'>2
Chapter I Introduction
A. Purpose of the Plan:
The purpose of the All- Hazard Mitigation Plan is to fulfill the FEMA requirement under the Robert
T. Stafford Disaster Relief and. Emergency Assistance Act (the Act), Section 322, Mitigation
Planning enacted by Section 104 of the Disaster Mitigation Act of 2000 (DMA) (Pt. 106 -390). This
initiative provides new and revitalized approaches to mitigation planning. Section 322 emphasizes
the need for State, local and tribal entities to closely coordinate mitigation planning and
implementation efforts. As part of the process of implementing the DMA, FEMA prepared an
Interim Final Rule (the Rule) to clearly establish the mitigation planning criteria for State, local and
tribal governments. This Rule was published in the Federal Register on February 26, 2002, at 44 CFR
Part 201. This plan will identify hazards, establish community goals and objectives, and develop
mitigation strategies and activities that are appropriate for the City of Kenai.
The Disaster Mitigation Act of 2000 (DMA 2000), Section 322 (a -d), as implemented through 44
CFR Part 201.6 requires that local governments, as a condition of receiving federal disaster
mitigation funds, have a mitigation plan that describes the process for identifying hazards, risks and
vulnerabilities, identifying and prioritizing mitigation actions, encouraging development of local
mitigation and providing technical support for those efforts.
The purpose of this plan is to produce a program of activities through actions and projects that will
best deal with the City of Kenai's hazard problems, while meeting other community needs. This plan
will accomplish the following objectives consistent with FEMA planning process guidelines:
Describe the planning process to include public involvement and conduct an
assessment of the risks
Determine what facilities, or portions of infrastructure, are vulnerable to a disaster
Develop a mitigation strategy to reduce potential losses and target resources
Describe how each entity will periodically evaluate, monitor maintain and update the
plan
Describe the process for implementing the plan after adoption by the local governing
body of the community and receiving FEMA approval
B. Methodology
The approach used for the development and updating of the City of Kenai Annex to the Kenai
Peninsula Borough AII Hazard Mitigation Plan consisted of the following tasks:
1. Coordinate with other agencies and organizations
2. Solicit public involvement
3. Conduct hazard area inventory
4. Review and analysis of possible mitigation activities
5. Describe the update and review process and schedule for plan maintenance
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 3
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6. Coordinating the Plan with the State Hazard Mitigation Plan
7. Submitting to the State Hazard Mitigation Officer for Review
8. Submitting to FEMA Region 10 for Review and Approval
9. Adoption of the Plan following a public hearing
This All Hazard. Local Mitigation Plan contains a list of potential projects and a brief rationale or
explanation of how each project or group of projects contributes to the overall mitigation strategy
outlined in the plan.
This plan summarizes the activities outlined above to assess the effects of hazards in the City of
Kenai such as: flooding, earthquake, wildfire, volcanic eruption and fallout and bluff erosion etc. and
recommends mitigation strategies and activities. The City of Kenai annexes to the plan describe
specific hazards experienced by the City: erosion, wild -land fires, floods, tsunami, earthquakes and
volcanoes.
The mitigation plan will be evaluated and updated every five- years. In addition, the plan will be
updated, as appropriate when a disaster occurs that significantly affects the City of Kenai, whether or
not it receives a Presidential Declaration. The update will be completed as soon as possible, but no
later than 12 months following the date the disaster occurs.
Routine maintenance of the plan will include updating historical hazard information, completing
hazard analysis and adding projects. as new funding sources become available or taking projects off
the List when they are accomplished.
C. City of Kenai Background
Location
Kenai is located on the western coast of the Kenai Peninsula, fronting Cook Inlet. It lies on the
western boundary of the Kenai National Wildlife Refuge, on the Kenai Spur Highway. It is
approximately 65 air miles and 155 highway miles southwest of Anchorage via the Sterling
Highway. It lies at approximately 60.55444° North Latitude and 151.25833° West Longitude. (Sec.
05, TOO5N, R011 W, Seward Meridian.)
Kenai is located in the Kenai Recording District. The area encompasses 29.9 square miles of land
and 5.6 square miles of water.
Climate
Winter temperatures range from 4 to 22; summer temperatures vary from 46 to 65. Average annual
precipitation is 20 inches.
History
Prior to Russian settlement, Kenai was a Dena'ina Athabascan Indian village. Russian fur traders first
arrived in 1741. At that time, about 1,000 Dena'ina lived in the village of Shk'ituk't, near the River.
The traders called the people "Kenaitze," or "Kenai people." In 1791, a fortified Russian trading post,
Fort St. Nicholas, was constructed for fur and fish trading. It was the second permanent Russian
settlement in Alaska. In 1849, the Holy Assumption Russian Orthodox Church was established by
Egumen Nicholai. In 1869, the U.S. military established a post for the Dena'ina Indians in the area,
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Page 4
called Fort Kenay, which was abandoned in 1870 after Alaska was purchased by the U.S. A post
office was established in 1899. Through the 1920s, commercial fishing was the primary activity. In
1940, homesteading enabled the area to develop.
The first dirt road from Anchorage was constructed in 1951. In 1957, oil was discovered at Swanson
River, 20 miles northeast of Kenai the first major Alaska oil strike.
The City was incorporated in 1960. In 1965, offshore oil discoveries in Cook Inlet fueled a period of
rapid growth. Kenai has been a growing center for oil exploration, production and services since that
time.
Culture
The Kenai River is a major sport fishing location for Anchorage residents and tourists. The river is
world renown for trophy king and silver salmon. The Kenaitze (Tanaina Athabascans) live borough
wide and utilize the rich resources of Cook Inlet.
Population and Economy
In January of 2010 The Department of Community and Economic Development certified Kenai's
population at 7,115 people. Kenai is incorporated as a home rule city.
The City is the center of the oil and gas industry, providing services and supplies for Cook Inlet`s oil
and natural gas drilling and exploration. Tesoro Alaska's oil refining operation is located in North
Kenai. Both instate and out -of -state visitors provide a significant industry on the Peninsula.
Other important economic sectors include sport, subsistence and commercial fishing, fish
processing, timber and lumber, agriculture, transportation services, construction and retail trade.
The largest employers are the Borough School District, State of Alaska, ASRC, CPH, and Peak
Oilfields.
The Challenger Learning Center of Alaska was completed in spring 2000. Logging of spruce bark
beetle killed timber also occurs in the area.
Facilities
Water is supplied by three deep wells and is piped to 75% of households. A fourth well is planned.
Sewage is piped and receives secondary treatment. The remaining 25% of households use individual
water wells and septic systems. Natural gas from Enstar is primarily used for home heating purposes.
Homer Electric Assoc. operates the Bradley Lake Hydroelectric Project and is part owner of the
Alaska Electric Generation Transmission Cooperative. It also purchases electricity from Chugach
Electric. A Borough refuse transfer station is located on Redoubt Ave. The Borough landfill is
located in nearby Soldotna, at mile 110.4 Sterling Hwy.
Transportation
Kenai is accessible by the Sterling Highway to Anchorage, Fairbanks, Canada and the lower 48
states. The City -owned Kenai Municipal Airport provides a 7,575 -foot asphalt runway, a 2,000 -foot
gravel strip, a float plane strip, and helicopter service. A fully staffed Flight Service Station is also
located in the City. Float plane facilities are also available at Island Lake and Arness Lake. There are
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Page 5
five additional privately -owned airstrips in the vicinity. The Kenai City Dock and boat ramp are
located near the mouth of the Kenai River. There are also a number of private commercial fish
processing docks. Moorage is by buoys anchored in the Kenai River.
Chapter II Adoption Process and Documentation
The City of Kenai Annex to the Kenai Peninsula Borough All- Hazards Mitigation Plan was
developed as part of a multi- jurisdictional plan; therefore, to meet the requirements of Section 322
the plan was adopted by the City as well as the Borough.
The Local process included discussion and public comment periods during the development phase.
The Planning Zoning Commission advertised, and then heard presentations on the Annex draft on
April 28, 2004. A public comment period was advertised beginning May 4, 2004, and a public
hearing for public comment on the Annex draft was opened at the May 12, 2004 meeting. At that
meeting, the Commission passed a resolution supporting the Annex and the Plan, and recommended
adoption to the Kenai City Council. Simultaneously, the Kenai Peninsula Borough publicly
advertised that comments were being sought on the Plan, and listed contacts for each community
developing a Plan Annex. The Borough also expanded their website to include Plan and Annex
information, with the City of Kenai linking to the site. The adoption process included notices of
consideration for, and adoption of the Annex and Plan, for the City Council meeting of June 2, 2004.
In April 2010, the City of Kenai administration made revisions to the plan and submitted the updated
version for review to the Planning Zoning Commission who; advertised, and discussed updates to
the plan. The plan had further adjustments made to it, in preparation for review by State Homeland
Security and FEMA. Once approved by FEMA, the City of Kenai intends to pass the plan by City
Council Resolution, and subsequently present the updated plan to the Kenai Peninsula Borough for
incorporated annex. Related resolutions are available for review in the office of the Kenai City Clerk
at 210 Fidalgo Street, Kenai, Alaska 9961 I
City of Kenai All Hazard Mitigation Plan Final April, 20 1.0 Page 6
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Sample All Hazard Mitigation Plan Adoption Resolution
Resolution
Adopting the City of Kenai All Hazards Mitigation Plan
Whereas, the City of Kenai recognizes the threat that all hazards pose to people and property;
and
Whereas, undertaking hazard mitigation actions before disasters occur will reduce the potential
for harm to people and property and save taxpayer dollars; and
Whereas, an adopted all hazards mitigation plan is required as a condition of future grant
funding for mitigation projects; and
Whereas, the City of Kenai participated jointly in the planning process with the other local units
of government with the Borough to prepare an updated All Hazards Mitigation Plan.;
Now, therefore, be it resolved, that the City of Kenai City Council, hereby adopts the updated.
City of Kenai All Hazards Mitigation Plan as an official plan; and
Be it further resolved, that the Kenai Peninsula Borough will submit on behalf of the
participating municipalities the adopted All Hazards Mitigation Plan to the Alaska Division of
Emergency Services and the Federal Emergency Management Agency officials for final review
and approval.
Passed:
Certifying Official
SAMPLE
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 7
_23_
Flood
Wildland Fire
Earthquake
Volcano
Snow Avalanche
Tsunami
Seiche
Y/H
Y/H
Y/H
Y/M
N
Y/L
Weather
Landslides
Erosion
Drought
Technological
Economic
Y/H
N/L
Y/H
U/L
U/L
U/L
A. Hazard Identification
*Hazard Matrix CITY OF KENAI
Chapter III Planning Process
A. How was it Done
The planning department, using staff assets, developed the City of Kenai All Hazard Mitigation Plan.
The planning department coordinated with agencies to include; the Alaska Division of Emergency
Services and the Kenai Peninsula Borough. These agencies provided information from existing plans
including; Alaska State All Hazard Mitigation Plan, City of Kenai Emergency and Comprehensive
Plans, the Kenai Peninsula Borough mitigation and Zone Plans. The Planning Department compiled
all pertinent data and completed a draft plan with subsequent review and input by all listed parties.
Then the City Administration, Public Works Department and Public Safety reviewed the submission,
gathered additional data which included public comment as obtained cooperatively with the Kenai
Peninsula Borough, and an initial draft was completed.
B. Who were the Contributors
The City of Kenai Public Works and Planning Department, Planning and Zoning Commission U.S.
Military, Public, private sector, City of Kenai Public Safety departments, and the Kenai Peninsula
Borough OEM,
C. Public Opportunity for Involvement
Public meetings, websites, newspaper articles, flyers and advertisements were used to announce the
meetings in this section. See Borough documentation.
Chapter IV- Hazard Identification Risk Assessment
Hazard identification:
Y: Hazard is present in jurisdiction but probability unknown
N: Hazard is not present
U: Unknown if the hazard occurs in the jurisdiction
Risk:
L: Hazard is present with a low probability of occurrence
M: Hazard is present with a moderate probability of occurrence
H: Hazard is present with a high probability of occurrence
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 8
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Hazard Profile (NOTE: References to "the Plan" refer to the KPB
*All Hazard Mitigation Plan
Flood
Please reference the Plan for detailed flood events affecting the City of Kenai and Kenai Peninsula.
Kenai is at the mouth of the Kenai River, on the shores of Cook Inlet. The summary of historical
flood events shows clearly that the City is adversely affected by nearly all significant events.
For example, in 1995, as referenced in the Plan, flood events resulted in tremendous debris flowing
downstream into the City limits. City service including police, fire, public works and the
administration were mobilized using City boats, vehicles, and safety equipment to intercept and
extract huge quantities of debris such as docks, sheds, large LPG tanks, fuels storage tanks and
damaged boats from the Kenai River before this debris caused further property damage and before it
could flow into Cook Inlet shipping lanes.
Collected debris was extracted using City Dock: resources and cranes, then stockpiled on
approximately two (2) acres of Dock property for safe keeping, identification, pollution prevention,
retrieval by owners and eventual disposal.
City personnel patrolling the Kenai River for debris also assisted many private and commercial
property owners in securing loose docks, boats and other debris before it could be swept downstream,
and before this debris caused additional property and ecological damage.
This process within City limits was conducted entirely with City incident management teams.
Coordinated records, reports and financial records were physically delivered to the Borough offices
by a runner on a daily basis.
The City public safety building served. as the incident command site for the duration of this event,
coordinating efforts with the Boroughs temporary command site in Soldotna by phone and periodic
face -to face meetings.
City staff remained on -duty for several days, incurring tens of thousands of dollars in personnel
costs. Resources such as cars, trucks, loaders, fire engines, ambulances, survival equipment and
ropes, buildings and fuel were committed to this event. Damage to equipment was experienced and
was later reimbursed through FEMA.
Wildland Fires
Dead and dying spruce trees pose the greatest risk of wild fire on the entire Kenai Peninsula. Within
the City, trees infested by the spruce bark beetle became a mitigation priority in the late 1990's, with
firefighters conducting door -to -door educational campaigns in high -risk neighborhoods delivering
information packets to homeowners on how to develop a defensible space around their properties.
City of Kenai All Hazard
gation Plan Final April, 2010 Page 9
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the City has enabled State Forestry resources to free themselves to patrol other nearby communities,
and has reduced wildfire activity within the City. Damage from fallen trees during heavy wind
storms has dropped drastically within the City. Homer Electric Association has attributed this
reduction directly to the City's pro fire wise actions.
The City continues to promote the Fire wise Project, and promotes the use of a "slash drop point" on
a large parcel of Borough property off of Redoubt Avenue in the City of Kenai.
This drop point, along with the original drop point at Mile 13 of the Kenai Spur Highway, has been
heavily used since being established in the year 2000. The Kenai Peninsula Borough Spruce Baric
Beetle Mitigation Office has worked closely with the City in funding a contracted, clean burning
incinerator to clear slash from the drop point. The present drop point was established nearby on
Redoubt Avenue in 2008.
This partnership has resulted in the Borough exploring the possibility of expanding the drop point
method to other parts of the Peninsula.
Historically significant fires within the City included the 1969 Swanson River Fire, as noted in the
Borough HazMit Plan, and the Swires Road fire in the mid-1 980's.
The City does experience small wildland fires throughout the summer months, with the most recent
being a 10 acre fire durine the summer of 2009 which the City of Kenai Fire Department and State
Forestry responded to cooperatively.
The City continues to educate the public on the dangers of wildfire in the City, and efforts to identify
and remove wildland fire hazards continue as well.
Erosion
The Kenai River meanders through the City of Kenai. There is about a mile of 55 to 70 foot high
eroding river bluff in the downtown center of the City. A comparison of aerial photos over 50 years
reveals approximately 150 feet of horizontal distance of erosion. This equals an average of three feet
of erosion per year. There is a similar erosion problem along the Cook Inlet where the bluff even gets
higher.
Major erosion occurs when there is a high tide and large storm waves that carry away the base
material of the bluff making the slopes steeper. These steeper slopes are more susceptible to erosion
by wind and surface or ground water.
The City of Kenai has lost land and structures due to the erosion. Roads have been abandoned and
sewer mains relocated. The recent sewer line relocation and roadwork due to the erosion on Mission
Street was in excess of $300,000.
After years of studies, the City of Kenai is planning a Bluff Stabilization Project that will stop the
erosion process along the Kenai River in the Downtown Area. The US Army Corps of Engineers is
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 10
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completing a two million dollar study and the engineering for this project. The next step is
construction to complete this very badly needed project.
Coastal Storms
From the fall through the spring, low pressure cyclones either develop in the Bering Sea or Gulf of
Alaska or are brought to the region by wind systems in the upper atmosphere that tend to steer storms
in the north Pacific Ocean toward Alaska. When these storms impact the shoreline, they often bring
wide swathes of high winds and occasionally cause coastal flooding and erosion.
The intensity, location and the land's topography influence the storm's
impact. Another factor that influences the damage done to the
shoreline by coastal storms is whether or not the shore ice is solid
enough to protect against erosion and physical damage to community
infrastructure.
Fierce storm conditions do not have to he present to cause damage.
The City of Kenai community suffers from "Silent Storms" where high -water storm surges erode and
undercut the hanks melting the permafrost.
Erosion is a process that involves the wearing away, transportation, and movement of land. Erosion
rates can vary significantly as erosion can occur quite quickly as the result of a flash flood, coastal
stone or other event. It can also occur slowly as the result of long-term environmental changes.
Erosion is a natural process but its effects can be exacerbated by human activity.
Erosion rarely causes death or injury. However, erosion causes the destruction of property,
development or infrastructure. In Alaska, coastal erosion is the most destructive. Riverine erosion is a
close second and wind erosion is a distant third.
Classifying erosion can be confusing, as there are multiple terms to refer to the same type of erosion.
For example, riverine erosion may be called stream erosion, stream bank erosion, or riverbank
erosion, among other terms. Coastal erosion is sometimes referred to as tidal land forming gullies. It
is also caused by erosion. For heavy snow or rainfall,
this annex, coastal erosion encompasses bluff and beach
erosion while riverine erosion will be considered
synonymous for stream erosion, stream hank erosion and
riverbank erosion.
Coastal Erosion
Coastal erosion is the wearing a way of land resulting in
loss of beach, shoreline, or dune material from natural
activity or human influences. Coastal erosion occurs over the area roughly from the top of the bluff
out into the near -shore region to about the 30 foot water depth. It is measured as the rate of change
in the position or horizontal displacement of a shoreline over a. period of time. Bluff recession is the
most visible aspect of coastal erosion because of the dramatic change it causes in the landscape. As a
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Page 11
result, this aspect of coastal erosion usually receives the most attention. On the coast, the forces of
erosion are embodied. in waves, currents, and wind. Surface and ground water flow, and freeze -thaw
cycles may also play a role, Not all of these forces may
be present any particular location. Definitions:
Groin A narrow, elongated coastal
engineering structure built on the beach
perpendicular to the trend of the peach. Its
purpose is to trap long shore drift to build up a
section of beach
Coastal erosion can occur from rapid, short -term daily,
seasonal, or annual natural events such as waves, storm
surge, wind, coastal storms, and flooding or from human
activities including boat wakes and dredging. The most
dramatic erosion often occurs during storms, particularly
because the highest energy waves are generated under
storm conditions.
Coastal erosion also may be from multi -year impacts and
long -term climatic change such as sea -level rise, lack of
sediment supply, subsidence or long -term human factors
such as the construction of shore protection structures
and dams or aquifer depletion. Studies are underway to
determine the effects generated from global warning.
Ironically, attempts to control erosion through shoreline
protective measures such as groins, jetties, seawalls, or
revetments, can actually lead to increased erosion
activity.
This is because shoreline structures eliminate the natural
wave run -up and sand deposition processes and can
increase reflected wave action and currents at the
waterline. The increased wave action can cause localized
Factors Influencing the Erosion Process
-28-
Jetty A narrow, elongated coastal
engineering structure built perpendicular to the
shoreline at inlets to stabilize the position of a
navigation channel, to shield vessels from
wave forces, and to control the movement of
sand along adjacent beaches to minimize the
movement of sand into a channel.
Seawall A vertical, wall -like coastal
engineering structure built parallel to the beach
or dune line and usually located at the back of
the beach or the seaward edge of the dune.
They are designed to halt shoreline erosion by
absorbing the impact of waves.
Revetment An apron -like, sloped, coastal
engineering structure built on a dune face or
fronting a seawall. Designed to dissipate the
force of stonn waves and prevent undermining
of a seawall, dune or placed fill.
scour both in front of and behind structures and prevent the settlement of suspended sediment.
Fortunately in Alaska, erosion is hindered by bottomfast ice, which is present on much of the Arctic
coastline during the winter. These areas are fairly vulnerable while the ice is forming. The winds
from a fall storm can push sea ice into the shorefast ice, driving it onto the beach. The ice will then
gouge the beach and cause other damage.
In 2009, the City of Kenai added permanent fencing to the north beach dunes to help ensure this
natural barrier will adequately prevent bluff erosion. The fencing will help ensure that man -made
destruction of vegetation does not compromise the integrity of the dunes. A similar fencing project is
planned for 2010 on the south beach. The dunes were at risk of destruction from the annual personal
use dipnet fishery if the fencing was not installed.
There are a variety of natural and human- induced factors that influence the erosion process. For
example, shoreline orientation and exposure to prevailing winds, open ocean swells, and waves all
influence erosion rates. Beach composition influences erosion rates as well. For example, a beach
composed of sand and silt, such as those near Shishmaref, are easily eroded whereas beaches
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 12
primarily consisting of boulders or large rocks are more resistant to erosion. Other factors may
include:
Shoreline type
Geomorphology of the coast
Structure types along the shoreline
Density of development
Amount of encroachment into the high hazard zone
Proximity to erosion inducing coastal structures
Nature of the coastal topography
Elevation of coastal dunes and bluffs
Shoreline exposure to wind and waves
Coastal Erosion in Alaska
Coastal erosion is a problem in all 30 coastal states,
including Alaska. A 1971 USACE study showed that just
less than 11% of Alaska's coastline was undergoing
"significant" erosion. This may not sound like much but it
means that approximately 5,100 miles of Alaska's coast is
experiencing "significant" erosion. That's more than most
states have in coastline.
When undeveloped coastlines undergo erosion, it does not
present a problem because there is nothing to be damaged.
However, in developed areas, primarily along the western
and northern coasts of Alaska and the Cook Inlet, erosion is
a significant threat. In extreme cases, an entire community
can be threatened in these areas such as the City of Kenai,
Shishmare_f and Point Hope. Usually, only part of a
community is at risk. For example, most of Kenai is
unaffected by erosion however, large sections of the City's
coast, including the Historic District, and residential areas
are.
Riverine Erosion
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Erosional and depositional processes:
Degradation: Lowering of the channel bed on a
substantial reach length occurring over a
relatively long period of' time in response to
disturbances that affect general watershed
conditions, such as sediment supply, runoff
volume, and artificial channel controls.
Aggradation: Rising of the channel bed as a
result of disturbances in watershed conditions
that produce the opposite effect to those leading
to degradation.
General Scour: Lowering of the streambed in a
general area as consequences of a short duration
event such as the passage of a flood. Examples
are the erosion zones near bridge abutments and
those in the vicinity of gravel pits.
Local Scour: Lowering of the bed due to
localized phenomena such as vortex formation
around bridge piers.
Deposition: Rising of the streambed due to
specific episode. An example is the formation
of a sand bar after a flood event. Deposition is
used in this document as the counterpart of
general scour.
Lateral Migration: Shifting of the stream bank
alignment due to a combination of the above
vertical erosional and depositional processes.
The most common exampie is meander
migration in the floodplain. Bank retreat due to
mass failure is another example.
Rivers constantly alter their course, changing shape and depth, trying to find a balance between the
sediment transport capacity of the water and the sediment supply. This process, called riverine
erosion, is usually seen as the wearing a way of riverbanks and riverbeds over a long period of time.
Riverine erosion is often initiated by failure of a riverbank causing high sediment loads or heavy
rainfall. This generates high volume and velocity run -off which will concentrate in the lower
drainages within the river's catchment area. When the stress applied by these river flows exceeds the
resistance of the riverbank material, erosion will occur. As the sediment load increases, fast- flowing
rivers will erode their banks downstream. Eventually, the river becomes overloaded or Velocity is
Page 13
reduced, leading to the deposition of sediment fitrther downstream or in dams and reservoirs. The
deposition may eventually lead to the river developing a new channel. While all rivers change in the
long-term, short-term rates of change vary significantly. In less stable braided channel reaches,
erosion and deposition of material are a constant issue. In more stable meandering channels,
episodes of erosion may only occur occasionally. The erosion rate depends on the sediment supply
and amount of run -off reaching the river. These variables are affected by many things including
earthquakes, floods, climatic changes, loss of bank vegetation, urbanization, and the construction of
civil works in the waterway. Riverine erosion has many consequences including the loss of land and
any development on that land. It can cause increased sedimentation of harbors and river deltas. It
can hinder channel navigation affect marine transportation source.
Other problems include reduction in water quality due to high sediment loads, loss of native aquatic
habitats, damage to public utilities (roads, bridges, and dams) and maintenance costs associated with
trying to prevent or control erosion sites.
Riverine Erosion in Alaska
Examples of riverine erosion are found throughout Alaska that threatens both public and private
property. Riverine erosion on the meandering Matanuska River, near Palmer, has already destroyed
several homes and is threatening more, Attempts to control erosion have met with very limited
success. For example, armored dikes helped control erosion for a while but eventually failed.
Riverine erosion problems also exist on other rivers including the Kuskokwim, Yukon, and Kenai
Rivers. Erosion on the Kenai is of great concern to resource management agencies because the
increased sedimentation and loss of streamside cover associated with accelerated erosion rates may
threaten salmon returns to the river. Salmon fishing on the Kenai can generate as much as $78
million annually in direct benefits.
Wind Erosion
Wind erosion is when wind is responsible for the removal, movement and redeposition of land. It
occurs when soils are exposed to high velocity wind, The wind will pick up the soil and carry it
away. The wind moves soil particles 0.1 -0.5 mm in size in a hopping or bouncing fashion (known
as saltation) and those greater than 0.5 mm by rolling (known as soil creep). The finest particles (less
than 0.1 mm) are carried in suspension.. Wind erosion can increase during periods of drought.
Wind erosion can cause a loss of topsoil, which can hinder agricultural production. The dust can
reduce visibility causing automobile accidents, hinder machinery, and have a negative effect on air
and water quality creating animal and human health concerns. Wind erosion also causes damage to
public utilities and infrastructure.
Volcanoes
Historic Volcanic Activity
The largest volcanic eruption of the 20th century occurred at Novarupta Volcano in June 1912. It
started by generating an ash cloud that grew to thousands of miles wide during the three -day event.
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Page 14
Within four hours of the eruption, ash started falling on Kodiak, darkening the city. It became hard
to breathe because of the ash and sulfur dioxide gas. The water became undrinkable and unable to
support aquatic life, Roofs collapsed under the weight of the ash. Some buildings were destroyed by
ash avalanches, while others burned after being struck by lightning from the ash cloud. Similar
conditions could be found all over the area. Some villages ended up being abandoned, including
Katmai and Savonoski villages. The ash and acid
rain also negatively affected animal and plant life.
Large animals were blinded and many starved
because their food was eliminated.
The ash fall from this eruption was significantly
greater than the recent eruptions of Redoubt, Spurr
and Augustine Volcanoes. Fourteen earthquakes of
magnitude 6 to 7 were associated with this event.
At least 10 Alaskan volcanoes are capable of this
type of event.
A more recent eruption occurred on Augustine Volcano in 1986. An ash plume disrupted air traffic
and deposited ash in Anchorage, A dome formed in the crater, and caused some to fear it would
subsequently collapse and trigger a tsunami along the east shore of Cook Inlet, as happened in 1883.
Redoubt Volcano erupted in 1989 -1990 and debris flows caused temporary closing of the Drift River
Oil Terminal. A similar eruption event occurred again in 2009 effecting the offloading of 3.7 million
gallons of crude oil from the oil terminal. Media reports, the OEM website, and Kenai
communications center adequately informed citizens of volcano precautions. The City government
took steps to minimize damage to vehicles, buildings, and computer equipment. During the 1990
event, a KLM 747 jet aircraft, flight 867, temporarily lost power in all four engines when h entered
the volcanic ash plume. It would have crashed into the mountains had they not be able to restart their
engines about 4,000 feet (1,219 meters) above ground.
Earthquake
Approximately 11% of the world's earthquakes occur in Alaska, making it one of the most
seismically active regions in the world. Three of the ten largest quakes in the world since 1.990 have
occurred here.
Earthquakes of magnitude 7 or greater occur in Alaska on average of about once a year; magnitude 8
earthquakes average about 14 years between events.
Hazard Analysis /Characterization
Most large earthquakes are caused by a sudden release of accumulated stresses between crustal plates
that move against each other on the earth's surface. Some earthquakes occur along faults that lie
within these plates. The dangers associated with earthquakes include ground shaking, surface
faulting, ground failures, snow avalanches, seiches and tsunamis. The extent of damage is dependent
on the magnitude of the quake, the geology of the area, distance from the epicenter and structure
design and construction. A main goal of an earthquake hazard reduction program is to preserve lives
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Page 15
through economical rehabilitation of existing structures and construction of safe new structures.
Ground shaking is due to the three main classes of seismic waves generated by an earthquake. P
(primary) waves are the first ones felt, often as a sharp jolt. S (shear or secondary) waves are slower
and usually have a side to side movement. They can be very damaging because structures are more
vulnerable to horizontal than vertical motion. Surface waves are the slowest, although they can carry
the bulk of the energy in a large earthquake. The damage to buildings depends on how the specific
characteristics of each incoming wave interact with the buildings' height, shape, and construction
materials.
Earthquakes are usually measured in terms of their magnitude and intensity. Magnitude is related to
the amount of energy released during an event while intensity refers to the effects on people and
structures at a particular place. Earthquake magnitude is usually reported according to the standard.
Richter scale for small to moderate earthquakes. Large earthquakes, like those that commonly occur
in Alaska are reported according to the moment magnitude scale because the standard. Richter scale
does not adequately represent the energy released by these large events.
Intensity is usually reported using the Modified Mercalli Intensity Scale. This scale has 12
categories ranging from not felt to total destruction. Different values can be recorded at different
locations for the same event depending on local circumstances such as distance from the epicenter or
building construction practices. Soil conditions are a major factor in determining an earthquake's
intensity, as unconsolidated fill areas will have more damage than an area with shallow bedrock.
Surface faulting is the differential movement of the two sides of a fault. There are three general
types of faulting. Strike -slip faults are where each side of the fault moves horizontally. Normal
faults have one side dropping down relative to the other side. Thrust (reverse) faults have one side
moving up and over the fault relative to the other side.
Earthquake- induced ground failure is often the result of liquefaction, which occurs when soil (usually
sand and course silt with high water content) loses strength as a result of the shaking and acts like a
viscous fluid. Liquefaction causes three types of ground failures: lateral spreads, flow failures, and
loss of bearing strength. In the 1964 earthquake, over 200 bridges were destroyed or damaged due to
lateral spreads. Flow failures damaged the port facilities of Seward, Valdez, and Whittier. Similar
ground failures can result from loss of strength in saturated clay soils, as occurred in several major
landslides that were responsible for most of the earthquake damage in Anchorage in 1964. Other
types of earthquake- induced ground failure include slumps and debris slides on steep slopes.
City of Kenai All Hazar
Tsunamis and Seiches
As defined by the Kenai Peninsula Borough, areas or concern for tsunami impacts within the
Borough are divided into geographical zones. Due to resource limitations, smaller KPB coastal
communities are currently not scheduled for tsunami mapping. Without inundation maps,
communities must rely on historical or estimated information for land use and evacuation route
planning
gation Plan Final April, 2010 Page 16
-32-
Coastal areas with potential tsunami risk in the North Zone begin at the north side of the mouth of the
Kenai River and continue north up the coast, including the west side of Cook Inlet, Due to the
relatively shallow depth of upper Cook Inlet and the substantial distance from areas to the south with
significantly higher risk, the upper Inlet is believed to have low tsunami risk
Central Zone
The areas of concern in the Central Zone begin at the south side of the mouth of the Kenai River and
continue south to Clam Gulch. Due to the relatively shallow depth of upper Cook Inlet and the
substantial distance from the lower end of Cook Inlet, the Central Zone is believed to have a low
tsunami risk.
Earthquakes are a natural occurance that can occur anywhere in Alaska and are a common cause of
tsunamis, The City of Kenai is located adjacent to Cook Inlet between the North and Central zones.
It is unknown if a tsunami has ever had a significant destructive effect on the and mass where the
coastal city of Kenai lies. Given the high coastal bluffs protecting much of Kenai, and a lack of'
historical documentation of a destructive tsunami in Kenai, the City administration feels tsunami's
pose a low threat to the City's people and property.
Hazard Analysis /Characterization
Economic
Economic disasters can result from uncontrollable natural events that have large negative effects on a
region's economic base. Unfortunately, economic disasters also result from poor business practices
and public policies that inhibit competition. An economic disaster declaration does not trigger the
availability of disaster assistance in the manner of a natural or technological disaster, but it can
provide the basis for seeking and receiving financial assistance. For example, the declaration of an
economic disaster for fisheries led to the availability of assistance through provisions of the
Magnusen- Stevens Fisheries Conservation and Management Act and the Interjurisdictional Fisheries
Act in 1998, 1999 and 2000. In other instances, a disaster declaration has been unnecessary to secure
assistance. For example, when Southeast pulp mills closed, extensive worker assistance was
provided through the Job Training Partnership Act and the Trade Adjustment Act; funds were made
available for projects through the Economic Development Administration, the US Forest Service and
USDA Rural Development.
Economic disaster mitigation is not usually done by emergency management agencies, as these
agencies are oriented to natural and technological disasters. Instead, it is essentially performed by
economic development agencies. These agencies or any segment of Government cannot create
private economies even though they have an historic and legitimate role in fostering opportunities for
economic development. Government's role cannot be to create or replace the marketplace, but to
recognize and understand it, and help its citizens capitalize on the opportunities. Economic
development agencies have programs designed to build, broaden and diversify the economic base by
fostering economic development, and /or creating an environment in which economic development
can flourish.
City of Kenai All Hazard Mitigation Plan Final April, 2010
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Page
7
PubIie infrastructure, sensible regulations, public-private partnerships, efficient and coordinated
service delivery, industry advocacy, marketing, economic analysis, and the dissemination of timely
information all represent legitimate venues for government to promote economic development.
Approaches to Economic Development
Economic development can be promoted in a variety of ways, using a variety of approaches.
These approaches can overlap with one another and are not meant to represent distinctly separate
strategies, but to be illustrative, These approaches are also dynamic, state strategies evolve
accordingly. Economic development approaches include:
Industrial recruitment competing for the siting of large industrial or manufacturing
companies by promoting advantages such as tax abatement, transportation access or
developed industrial locations.
Targeted incentives analysis using regional economic and workforce to match the mo
suitable type of industry for particular areas.
Quality of life promoting recreation and leisure opportunities, quality schools, cultural
entities, low crime rates, a skilled workforce and clean air and water, to attract new
business.
Tax abatement offering property tax abatement and other forms of tax relief as a
development incentive.
Workforce development training the resident workforce for existing and anticipated
jobs created through policy -based development initiatives, evolving technology, etc. For
example, showcasing well educated workforces, where higher than average percentages
of workers have high school degrees or college diplomas.
Resource endowments promoting the existence of natural resource endowments to
attract extractive industries. Alaska, particularly, is known as the nation's resource
treasure chest with its huge oil and mineral reserves
The new economy promoting an adaptable, consumer- friendly, technology savvy,
innovative, performance driven and accountable environment to attract technology -based
and knowledge -based industries.
Web -based economic information systems developing web sites, often using boroughs
or sub -state regions as portals, to display and link to comprehensive economic
information providing users with easy access.
Regional partnerships promoting regional organizations to implement community and
regional economic development priorities. These organizations are like a, two -way door,
with local and regional issues, problems and priorities passing upward to the agencies,
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 18
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and agency programs, funding and technical assistance passing downward to the
benefiting populations.
Assessing Risk
The first step to long -term mitigation, is understanding which economies are at risk and which
economies have the best chance to reduce rislcs through public and private investments. Ways to
quantify economic risks include:
identifying comparative advantages in order to produce goods or services better than a
competitor
Monitoring long -term supply and demand trends
Measuring the diversity of end product markets
Measuring the size and diversity of base industries
Measuring the growth rates in employment, income and gross sales
Monitoring the relative dependence on imparts
Assessing the skill levels in the workforce
Assessing the infrastructure needs to reduce transportation and energy costs
Risk can then be used to evaluate and rank economies on their potential resilience during an
economic downturn. Perhaps more importantly, when risks are regularly monitored, economic
information is more freely shared, creating fewer uncertainties.
C. Vulnerability Assessments
The table describes the critical facilities for the City of Kenai. Without these facilities loss of life
and human suffering is certain. All City facilities are vulnerable to volcanic ash fallout, and to a
lesser extent, damage due to a severe event. Protective measures are in place to minimize such
damage such as housing emergency generators inside and meeting construction standards for the
seismic zone. The Senior Center, Congregate Housing (Vintage Pointe Manor) and Wastewater
Treatment Plant are more vulnerable to erosion damage than the remainder of City facilities.
The City has taken steps to preserve the integrity of protective dunes by installing permanent
fencing. City Dock facilities are somewhat vulnerable to flood conditions, but were constructed
with those events in mind, and generally remain usable in a flood event. The City maintains a
defensible space around all City facilities as a preventative measure for wildland fires. An
emergency plan is in place for critical infrastructure, evacuation districts, emergency notification
and housing. The Kenai Police and Fire Departments work closely with local school
administrators in planning to be self sufficient during disasters which may isolate schools for
three or more days.
City o Kenai All Hazard Mitigation Plan Final April, 2010 Page 19
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-36-
0
Kenai All Hazard Mitigation Plan Fina
X
Iesidolouipai
X
X I
J
x
X
x
x L
mdnap
Erosion
X
X
X
x
Landslides
1_ x _J
x
Jay3eeM
x
x
>c>cl
X
X
X
X
X
X
X
X
X
x
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X
X
X X
I x
x
ayn{aS
eueunsl
X
x
ayoueleny
ems
L
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x
X
X
X X
X
x
x
L—x
x
I x
X
H
x
X
x
X X
x
x
x
X
x
alien h4uea
x
X
x
x x
x
x
I x
x
x
x
x I
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;zard Matrix for
CITY OF KENAI
Tioddiv
and .10
a allod 'ZO
03. Hospital
Ioogo5 '90
n!WP dwarf 'b0
06. Tank (Fuel)Farm
911 101
auoydalal '801
ailaleS'60 1
10. Washeteria
1 /Vo0 /roq)eH 'TT
12. Landfill /Incinerator
13. Museum
peoy 'ST
peia Azlunwwoj 'gT
'tied 'LT]
18. Civic Center
Aralawap 5T
saayio '02 1
Alauuel _TZi
22. WWTP
srauenD siayoeal iEZ
410 15_/2
25. Service /Maintenance
aa0101sed 'LZ
41118 '9Z
28. Radio Transmitter
29. Reservoir /Supply (water)
L 30. Senior Center
L yam47 'lE
iazaw;i A ;lunwwo3 'ZE
To ;eraua9 'E£
34. Guard
35. Community Storage Shed
31emilie0g gE
16440 '66
-36-
0
Kenai All Hazard Mitigation Plan Fina
D. Development Trends
The City has been a deferred code enforcement entity since the late 1970's enforcing local building,
fire and life safety codes in plan reviews for new construction. This provides local access and
oversight in new construction without requiring plans being sent through the State Fire Marshal's
office in Anchorage.
Zoning changes are needed to comply with Comprehensive Plan and to prevent infrastructure loss
near eroding bluff Public Works has been addressing this for several years, and the City has
restricted new construction near hazard areas and infrastructure has been relocated to prevent
added loss or damage. (Water and sewer lines, utilities, etc.)
Commercial, industrial and residential development is continuing at slow but steady pace, as is the
population. The population is aging and the need for senior housing and assisted living is increasing.
This has been addressed in the Comprehensive Plan. Health care facilities, physicians, dentists and
family care offices are increasing within the City, and government offices are beginning an
entralizing trend in Kenai.
Use of the beach for recreation and personal use fisheries increases each year. Increased use of City
services is taxing resources in public works, public safety and the sewer treatment plant (STP). The
STP will require expansion in the near future so evaluation and planning for the facility is ongoing.
The Municipal water system is being enhanced and expanded annually, with a risk analysis plan
already in place,
In 2007. the City of Kenai completed a comprehensive Emergency Operations Plan (EOP). The plan
describes the system that will be used to manage the mitigation of, preparation for, response to, and
recovery from natural and man- caused disaster emergencies. It is an all hazard, all -risk plan based
on the National Incident Management System (NIMS) for comprehensive management of disaster
emergency relief forces and disaster emergency operations. The EOP consists of fourteen sections,
each considering a different element of emergency response.
This EOP is intended to meet disaster emergency planning requirements of all federal, state, borough,
and city agencies and departments having jurisdiction over such matters. It is further intended that
this document be used as a reference and training aid for municipal, regional, industry, and other
emergency response personnel to ensure efficient and effective response to and management of
disaster emergencies. This EOP will be activated whenever there is a disaster emergency that could
significantly threaten human health, property or the environment. Upon declaration of a disaster
emergency, the designated person responsible for disaster emergency management is authorized to
commit the resources necessary to carry out the provisions of the Emergency Operations Plan.
Section 2 of the City of Kenai Emergency Operations Plan references the Kenai Peninsula Borough
All Hazard Mitigation Plan, and states that the City of Kenai All- Hazard Mitigation Plan is Annex C
of the KPB plan.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 21
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A: Erosion:
B: Wildland Fires:
C. Floods:
Chapter V- Mitigation Goals, Objectives, Strategies
Goal: Reduce or eliminate loss of bluff and potential damages due to such erosion by shoring
the bluff, and zoning changes.
Objective: Construct coastal trail walk with bluff protection, ensure zoning prohibits
construction within reasonable distance from bluff, and protect city infrastructure in area.
Action Item: Continue seeking funding for completion of coastal trail for bluff protection,
establish zoning restrictions for that area, and develop a plan to move infrastructure hack
from bluff to protect from catastrophic failure and potential pollution of inlet.
Goal: Reduce or eliminate loss of homes and property due to wildland fires by removing
fuels, creating defensible spaces and public education.
Objective: Develop "Fire Wise" neighborhoods to remove fuels; increase awareness of
wildland /urban fire hazards in the community.
Action Item: Continue promoting "Fire Wise" programs to include public education
programs in schools and neighborhoods. Develop and demonstrate defensible space and
landscaping techniques to encourage community and home construction contractor
participation. Reduce fuels in hazard areas and emergency egress routes in cooperation with
the Kenai Peninsula Spruce Bark Beetle Mitigation Office, State Forestry and and owners.
Goal: Reduce or eliminate property damage and influx of debris into waterways due to
floods by raising public awareness, and through zoning changes
Objective: Raise public awareness of probable magnitude of flood damage and debris based
on historical events using on site visits and meetings during permit issuance. Encourage
securing of docks, vehicles, trash and utilities (LPG tanks, fuel tanks, etc) to reduce loss of
same to owners, and reduce influx of debris into waterways during floods.
Action Item: Continue cooperative efforts of the Kenai Peninsula Borough, City of Kenai
Planning Zoning Commission, City Council and land owners /developers to enact and
enforce a 50 -foot setback of items on property adjacent to waterways.
City of Kenai All Hazard Mitigation Nan Final April, 2010 Page 22
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0. Volcanoes:
Goal: Prepare citizens to adequately protect themselves and property from hazards of
volcanic ash.
Action Item: Continue cooperative advisements to public via Borough OEM, local media,
and. City of Kenai websites during periods of increased volcano seismic activity.
E. Earthquakes:
Goal: Prepare our citizens and the built environment to better survive the hazards associated
with earthquakes.
F: Tsunami:
Objective: Public awareness of harmful effects of volcanic ash fallout to life and property.
Advise of measures to prevent illness and damage to air intake of homes, vehicles and
businesses.
Objective: Raise public awareness of potential threats and necessary preparations to increase
survivability of citizens and structures.
Action: In an effort to reduce property damage, the City of Kenai will continue to adopt and
enforce current building codes and construction standards that address the seismic concerns
for our area. Prepare our citizens and the built environment to better survive the hazards
associated with earthquakes through the promotion of public education, promote the practice
of sheltering in place, and encourage the preparation of our citizens for self sufficiency on a
post earthquake scenario.
Goal: Lessen loss of life through adequate notification and evacuation of identified high
hazard areas.
Objective: Public awareness of publically recognized hazard zones needing evacuation in the
event of a tsunami.
Action item: Continue cooperative advisements to public via Borough OEM, local media,
and local emergency responders to collectively evacuate the public.
City of Kenai All Hazard Mitigation Plan Fina
April, 2010 Page 23
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Chapter VI Implementation Maintenance Procedures
A. Implementation
The City of Kenai will implement this plan by using mitigation actions within our Community
Comprehensive Plan, the Capital Improvement Plan, the City of Kenai Emergency Operations Plan,
and other plans to pursue our mitigation goals. Our various community plans will consider the hest
mitigation practices to maximize the benefit to the community. We will consider projects that show
they are cost effective by ensuring that for every dollar spent we will get a minimum of' one dollar
savings from eliminating or reducing future disaster losses.
We will use the following criteria to prioritize all community projects and the Planning Commission
will analyze and prioritize projects based on:
Life saving or personal safety issues
2. Projects will be coordinated with all community plans. For example: the Community
Comprehensive Plan, the Community Capital Improvement Plan, the All- Hazard
Mitigation Plan, etc.
3. Protection of infrastructure (water, sewer, utility systems)
4. Protection of private property
5. Protection and preservation of historical areas
6. Protection and preservation of the bluff and river
B. Maintenance
The All Hazard Mitigation Plan will be reviewed annually and will be updated at a minimum of
every five years or 90 days after a presidentially declared disaster. The Director of Planning will be
responsible for ensuring that reviews are completed, the planning commission and the general public
will be notified of opportunities to review the plan by written invitation, use of newspaper, radio,
television, brochures or flyers to advertise this opportunity and solicit involvement. Public
involvement is essential to ensure that the mitigation goals, objectives and action items are
addressing the community's needs.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 24
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A -Zones
Appendix A
Glossary of Terms
A -Zones are found on all Flood Hazard Boundary
Maps (FHBMs), Flood Insurance Rate Maps (FIRMs),
and Flood Boundary and. Floodway Maps (FBFMs).
An A -Zone is an area that would be flooded by the
Base ,Flood, and is the same as a Special Flood Hazard
Area (SFHA) or a 100 -year floodplain. These areas
may be unnumbered as AE, AH, or AO Zones.
Numbered A -Zones indicates an area' s risk to
flooding.
Acquisition Local govemments can acquire lands in high hazard
areas through conservation easements, purchase of
development rights, or outright purchase of property.
Alluvial Fan Area of deposition where steep mountain drainages
empty into valley floors. Flooding in these areas often
have characteristics that differ from those in riverine or
coastal areas. (See Alluvial Fan Flooding)
Alluvial Fan Flooding Hooding that occurs on the surface of an alluvial fan
(or Similar landform) that originates at the apex of the
fan and is characterized by high velocity flows; active
processes of erosion, sediment transport, and
deposition; and unpredictable flow paths.
Anabatic Wind Any wind blowing up an incline; the opposite to
katabatic wind.
Asset Any manmade or natural feature that has value,
including, but not limited to people; buildings;
infrastructure like bridges, roads, and sewer and water
systems; lifelines like electricity and communication
resources; or environmental, cultural, or recreational
features like parks, dunes, wetlands, or landmarks.
Aufeis
Avalanche
When new ice continues to form on top of older ice.
Ice forming situations occur wherever there are
continuous sources of water and freezing temperatures.
Mass of snow and ice falling suddenly down a
mountain slope and often taking with it earth, rocks,
trees, and rubble of every description.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 25
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Base Flood
Base Flood Elevation (BFE)
Base Floodplain
Borough
The bask unit of local eovernment in Alaska.
Building Any structure used or intended for supporting or
sheltering any use or occupancy.
Building Code The regulations adopted by a local governing body
principally setting forth standards for the construction,
addition, modification, and repair of buildings and
other structures for the purpose of protecting the health,
safety, and general welfare of the public.
Caldera
Chinook A warm down -slope wind.
Community
City of Kenai All Hazard Mitigation Plan Final April, 2010
A term used in the National Flood Insurance Program
to indicate the minimum size of a flood. This
information is used by a community as a basis for its
floodplain management regulations. It is the level of a
flood which has a one percent chance of occurring in
any given year. Also known as a 100 -year flood
elevation or one- percent chance flood.
The elevation for which there is a one percent chance
in any given year that flood water levels will equal or
exceed it. The BFE is determined by statistical
analysis for each local area and designated on the
Flood Insurance Rate Maps. It is also known as
100year flood elevation.
The area that has a one percent chance of flooding
(being inundated by flood waters) in any given year.
A caldera is a large, usually circular depression at the
summit of a volcano formed when magma is summit of
a volcano formed when magma is withdrawn or
erupted from a shallow underground magma reservoir.
Any state, area or political subdivision thereof, or any
Indian tribe or tribal entity that has the authority to
adopt and enforce statutes for areas within its
jurisdiction.
Community Rating System (CRS) The Community Rating System is a voluntary program
that each municipality or county government can
choose to participate in. The activities that are
undertaken through CRS are awarded points. A
community's points can earn people in their
community a discount on their flood insurance
premiums.
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Page 26
Critical Facility
Dam A structure built across a waterway to impound water.
Designated Floodway
Development
Digitize
Disaster Mitigation Act
Earthquake
Earthquake Swarm
Elevation
Emergency Operations Plan
City of Kenai All Hazard Mitigation Plan Final April, 2010
Facilities that are critical to the health and welfare of
the population and that are especially important during
and after a hazard event. Critical facilities include, but
are not limited to, shelters, hospitals, and fire stations.
The channel of a stream and that portion of the
adjoining floodplain designated by a regulatory
agency to be kept free of further development to
provide for unobstructed passage of flood tows.
Any man -made change to improved or unimproved
real estate, including but not limited to buildings other
structures, mining, dredging, filling, grading, paving,
excavation or drilling operations or of equipment
or materials.
To convert electronically points, lines, and area
boundaries shown on maps into x, y coordinates (e.g.,
latitude and longitude, universal transverse Mercator
(UTM), or table coordinates) for use in computer
applications.
DMA 2000 (public Law 106 -390) is the latest
legislation of 2000 (DMA 2000) to improve the
planning process. It was signed into law on October 10,
2000. This new legislation reinforces the importance of
mitigation planning and emphasizes planning for
disasters before they occur.
A sudden motion or trembling that is caused by a
release of strain accumulated within or along the edge
of the earth's tectonic plates.
A collection of earthquakes that is frequent in time
here is no identifiable main shock.
The raising of a structure to place it above flood waters
on an extended support structure.
A document that: describes how people and property
will be protected in disaster and disaster threat
situations; details who is responsible for carrying out
specific actions; identifies the personnel, equipment,
facilities, supplies, and other resources available for
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Page 27
Erosion The wearing away of the land surface by running
water, wind, ice, or other geological agents.
Federal Disaster Declaration
Flash Flood
Flood Control
Flood Disaster Assistance
Flood Elevation
City of Kenai All Hazard Mitigation Plan Final April, 2010
use in the disaster. and outlines how all actions will be
coordinated.
The formal action by the President to make a State
eligible for major disaster or emergency assistance
under the Robert T. Stafford Relief and Emergency
Assistance Act, Public Law 93 -288, as amended. Same
meaning as a Presidential Disaster Declaration
Federal Emergency Management A. federal agency created in 1979 to provide a single
Agency (FEMA) point of accountability for all federal activities related
to hazard mitigation preparedness response and to
hazard mitigation, preparedness, response, and
recovery.
A flood event occurring with little or no warning
where water levels rise at an extremely fast rate. It is
often the result of heavy rainfall in a localized area.
Flood A general and temporary condition of partial or
complete inundation of water over normally dry land
areas from (1) the overflow of inland or tidal waters,
(2) the unusual and rapid accumulation or runoff of
surface waters from any source, or (3) mudflows or the
sudden collapse of shoreline land.
Keeping flood waters away from specific developed or
populated areas by the construction of flood storage
reservoirs, channel alterations, dikes and levees, bypass
channels, or other engineered structures
Flood disaster assistance includes development of
comprehensive preparedness and recovery plans,
program capabilities, and organization of Federal
agencies and of State and local governments to
mitigate the adverse effects of disastrous floods. It may
include maximum hazard reduction, avoidance, and
mitigation measures, as well policies, procedures, and
eligibility criteria for Federal grant or loan assistance to
State and local governments, private organizations, or
individuals as the result of the major disaster.
Elevation of the water surface above an establish
datum (reference mark), e.g. National Geodetic
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Page 28
Flood Frequencies
Flood Fringe
Flood Hazard
Flood Hazard Boundary Map
Flood Insurance Rate Map
Flood Insurance Study
Frequencies are determined by plotting a graph of the
size of all known floods for an area and determining
how often floods of a particular size occur. The
frequency is the chance of a flood occurring during a
given tim.eframe. It is the percentage of the probability
of flooding each year. For example, thel00 -year flood
has a 1% chance and the 10 -year flood has a 10%
chance of occurring in any given year.
That portion of the floodplain that lies beyond the
floodway and serves as a temporary storage area for
floodwaters during a flood. This section receives
waters that are shallower and of lower velocities than
those of the floodway.
Flood Hazard is the potential for inundation and
involves the risk of life, health, property, and natural
value. Two reference base are commonly used: (1) For
most situations, the Base Flood is that flood which has
a one percent chance of being exceeded in any given
year (also known as the 100 -year flood); (2) for critical
actions, an activity for which a one- percent chance of
flooding would be too great, at a minimum the base
flood is that flood which has a 0.2 percent chance of
being exceeded in any given year (also known as the
500 -year flood).
Flood Hazard Boundary Map (FHBM) means an
Official (FHBM) map of a community, issued by the
Administrator, where the boundaries of the flood,
mudslides (i.e., mudflow) related erosion areas having
special hazards have been designated as Zones A, M,
and /or E.
Flood Insurance Rate Map (FIRM) means an official
map of a community, on which the Administrator has
delineated both the special hazard areas and the risk
premium zones applicable to the community.
Flood Insurance Study or Flood Elevation Study means
an examination, evaluation and determination of flood
hazards and. if appropriate, corresponding water
surface elevations, or an examination, evaluations and
determination of mudslide (i.e., mudflow) and /or flood
related erosion hazards
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 29
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Floodplain A "Floodplain" is the lowland adjacent to a river, lake
or ocean. Floodplains are designated by the frequency
of the flood that is large enough to cover them. For
example, the 10 -year floodplain will be covered by the
10 -year flood. The 100 -year floodplain by the 100
year flood.
Floodplain Management Thee operation of an overall program of corrective and
preventive measures for reducing flood damage,
including but not limited to emergency preparedness
plans, flood control works and floodplain management
regulations.
Floodplain Management Floodplain Management Regulations means
Regulations zoning ordinances, subdivision regulations, building
codes, health regulations, special purpose ordinances
(such as floodplain ordinance, grading ordinance and
erosion control ordinance) and other applications of
police power. The term describes such state or local
regulations, in any combination thereof, which provide
standards for the purpose of flood damage prevention
and reduction.
Flood Proofing
Floodway
Flood Zones
Flood Zone Symbol
Any combination of structural and nonstructural
additions, changes, or adjustments to structures which
reduce or eliminate flood damage to real estate or
improved property, water and sanitary facilities,
structures and their contents
Floodway means the channel of a river or other
watercourse and the adjacent land areas that must be
reserved in order to discharge the base flood without
cumulatively increasing the water surface elevation
more than a designated height.
Zones on the Flood Insurance Rate Map (FIRM) in
which a Flood Insurance Study has established the risk
premium insurance rates.
An area of special flood hazard without water
surface elevations determined.
A1-30, AE Area of special flood hazard with water
30 surface elevations determined.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 30
-46-
Freeboard
Fumaroie
Geographic Information System
Governing Body
Hazard
of Kenai All Hazard
AO Area of special flood hazard having shallow
water depths and /or unpredictable flow paths between
one and three feet.
A -99 Area of special flood hazard where enough
progress has been made on a protective system, such as
dikes, dams, and levees, to consider it complete for
insurance rating purposes.
AH Area of special flood hazard having shallow
water depths and /or unpredictable flow paths between
one and three feet and with water surface elevations
determ ined.
13, X Area of moderate flood hazard.
C, X Area of minimal hazard..
D Area of undetermined but possible flood
hazard.
Freeboard means a factor of safety usually expressed in
feet above a flood level for purposes of floodplain
management. Freeboard tends to compensate for many
unknown factors that could contribute to flood heights
greater than the height calculated for a selected size
flood and floodway conditions, such as wave action,
bridge openings, and the hydrological effect of
urbanization of the watershed.
Fumaroles are vents from which volcanic gas escapes
into the atmosphere. Fumaroles may occur along tiny
cracks or long fissures, in chaotic clusters or fields, and
on the surfaces of lava flows and thick deposits of
pyroclastic flows. They may persist for decades or
centuries if they are above a persistent heat source or
disappear within weeks to months if they occur atop a
fresh volcanic deposit that quickly cools.
A computer software application that relates physical
features of the earth to a database that can be used for
mapping and analysis.
The legislative body of a municipality that is the
assembly of a borough or the council of a city.
A source of potential danger or adverse condition,
Hazards in the context of this plan will include
tigation Plan Final April, 2010
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Page 31
Hazard Event
Hazard Identification
Hazard Mitigation
Hazard Mitigation Grant
Program
Hazard Profile
Hazard and Vulnerability Analysis
Hydrology
Infrastructure
Intensity
ometer
City of Kenai All Hazard Mitigation Plan Final April, 2010
naturally occurring events such as floods, earthquakes,
tsunami, coastal storms, landslides, and wildfires that
strike populated areas. A natural event is a hazard
when it has the potential to harm people or property.
A specific occurrence of' a particular type of hazard.
The process of identifying hazards that threaten an
area.
Any action taken to reduce or eliminate the long -term
risk to human life and property from natural hazards
(44 CFR Subpart M 206.401)
The program authorized under section 404 of the
Stafford Act, which may provide funding for
mitigation measures identified through the evaluation
of natural hazards conducted under §322 of the
Disaster Mitigation Act 2000.
A description of the physical characteristics of hazards
and a determination of various descriptors including
magnitude, duration, frequency, probability, and
extent. In most cases, a community can most easily use
these descriptors when they are recorded and displayed
as maps,
The identification and evaluation of all the hazards that
potentially threaten a jurisdiction and analyzing them
in the context of the jurisdiction to determine the
degree of threat that is posed by each.
The science of the behavior of water in the atmosphere,
on the earth's surface, and underground.
The public services of a community that have a direct
impact to the quality of life. Infrastructure refers to
communication technology such as phone lines or
Internet access, vital services such as public water
supply and sewer treatment facilities, and includes an
area' s transportation system, regional dams or
bridges, etc.
A measure of the effects of a hazard event at a
particular place.
A method employing the interference of
electromagnetic radiation to make highly precise
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Page 32
Inundation
Jiikulhlaup
Katahatic wind
Knot
Lahar
Landslide
Lava dome
Liquefaction
Local Emergency Planning
Committee (LEPC)
measurements of the angle between the two rays of
light.
The maximum horizontal distance covered by
flood water, a seiche or a tsunami.
A sudden flood -like release of water from a glacier.
(Glacier outburst flooding)
Any wind blowing down an incline; the opposite to
anabatic wind.
A unit of measurement equaling 1 nautical mile per
hour. This is roughly 1.15 statute miles per hour or
1.852 kilometers per hour.
Lahar is an Indonesian word for a rapidly flowing
mixture of rock debris and water that originates on the
slopes of a volcano. Lahars are also referred to as
volcanic mudflows or debris flows. They form in a
variety of ways, chiefly by the rapid melting of' snow
and ice by pyroclastic flows, intense rainfall on loose
volcanic rock deposits, breakout of a lake dammed by
volcanic deposits, and as a consequence of debris
avalanches.
Downward movement of a slope, soil, and other
materials or debris under the force of gravity.
Lava domes are rounded, steep -sided mounds built by
very viscous magma. Such magmas are typically too
viscous (resistant to flow) to move far from the vent
before cooling and crystallizing. Domes may consist of
one or more individual lava flows.
The phenomenon that occurs when ground shaking
cause's loose soils to lose strength and act like a thick
or viscous fluid. Liquefaction causes two types of
ground failure: lateral spread and loss of bearing
strength.
Littoral Of or pertaining to the shore, especially of the sea.
LEPCs consist of community representatives and are
appointed by the State Emergency Response
Commissions (SERCs), as required by Superfund
Amendments and Reauthorization Act (SARA), Title
ereinammaimettremersessagaitmensposS
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 33
-49-
Local Government
Magnitude
Mitigation Plan
Municipality
National Flood Insurance
Ci
[11. They develop an emergency plan to prepare for and
respond to a chemical emergency. They are also
responsible for coordinating with local facilities to find
out what they are doing to reduce hazards, prepare for
accidents, and reduce hazardous inventories and.
releases. The LEPC serves as a. focal point in the
community for information and discussion about
hazardous substances, emergency planning, and health
and environmental risks
Any county, borough, municipality, city, township,
public authority, school district, intrastate district,
council of governments (regardless of whether the
council of governments is incorporated as a nonprofit
corporation under State law), regional or interstate
government entity, or agency, or instrumentality of a
local government; any Indian tribe or authorized tribal
organization, or Alaska Native village or organization;
and any rural community, unincorporated town or
village, or other public entity, for which an application
for assistance is made by a State or political
subdivision of state.
Magma Molten rock originating from the Earth's interior.
A measure of the strength of a hazard event. The
magnitude (also referred to as severity) of a given
hazard event is usually determined using technical
measures specific to the hazard.
Mitigate To cause something to became less harsh or hostile, to
make less severe or painful
A systematic evaluation of the nature and extent of
vulnerability to the effects of natural hazards typically
present in the State and includes a description of
actions to minimize future vulnerability to hazards.
A political subdivision incorporated under the laws of
the State that is a home rule or general law city, a home
rule or general law borough, or a unified municipality.
The Federal program, created by an act of Congress in
Program (NFIP) 1968 that makes flood insurance
available in communities that enact satisfactory
floodplain management regulations.
of Kenai All Hazard Mitigation Plan Final April, 2010 Page 34
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National Weather Service
Natural Disaster
New Construction
Constructural Floodplain
One hundred (100) -Year
Orthophoto
Overlay Zone
Prepares and issues flood, severe weather, and coastal
(NWS) stone warnings and can provide technical
assistance to federal and State entities in preparing
weather and flood warning plans.
Any natural catastrophe, including any hurricane,
tornado, storm, high water, wind, driven water...
tsunami, earthquake, volcanic eruption, landslide,
snowstorm, fire, or drought. (44 CFR Subpart M
206.401)
New construction means structures for which the "start
of construction" on or after the effective date of a
floodplain management regulation adopted by a
community and includes any subsequent improvement
to such structures.
Those measures, such as flood proofing, employed to
Management Measures to modify the exposure of
buildings to floods and use planning, warning,
schemes, and insurance as opposed to structural
measures (such as dams, levees, and channel
modifications).
The flood elevation that has a one percent chance of
occurring in any given year. It is also known as the
Base Flood.
An aerial photo that has been corrected to eliminate the
effects of camera tilt and relief displacement. The
ground geometry is recreated as it would appear from
directly above each and every point.
Overlay zones (overlay districts) create a framework
for conservation or development of special
geographical areas. In a special resource overlay
district, overlay provisions typically impose greater
restrictions on the development of land, but only
regarding those parcels whose development, as
permitted under the zoning, may threaten the viability
of the natural resource. In a development area overlay
district, the provisions may impose restrictions as well,
but also may provide zoning incentives and waivers to
encourage certain types and styles of development.
Overlay zone provisions are often complemented by
the adoption of other innovative zoning techniques,
such as floating zones, special permits, incentive
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 35
-51-
Period
Permeability
Planning
Preparedness
Probability
Pyroclastic
Pyroclastic Flow
Recovery
Regulatory Floodplain
Regulatory Floodway
The length of time between two successive peaks or
troughs of a wave. The Period may vary due to
complex interferences of waves. Tsunami wave periods
generally range from 5 to 60 minutes apart.
The property of soil or rock that allows water to pass
through it.
The act or process of making or carrying out plans; the
establishment of goals, policies, and procedures for a
social or economic unit.
The steps taken to decide what to do if essential
services break down, developing a plan for
contingencies, and practicing the plan. Preparedness
ensures that people are ready for a disaster and will
respond to it effectively. Actions that strengthen the
capabilities of government, citizens, and communities
to respond to disasters,
Presidential Disaster Declaration The formal action by the President to make a State
eligible for major disaster or emergency assistance
under the Robert T. Stafford Relief and Emergency
Assistance Act, Public Law 93 -288, as amended.
A statistical measure of the likelihood that a hazard
event will occur.
Pertaining to fragmented rock material formed by a
volcanic explosion or ejection from a volcanic vent.
Lateral flow of a turbulent mixture of hot gases and
unsorted pyroclastic material (volcanic fragments, ash,
etc.) that can move at high speeds.
The actions taken by an individual or community after
a catastrophic event to restore order and lifelines in a
community.
That portion of the floodplain subject to floodplain
regulations (usually the floodplain inundated by one
percent chance flood).
Regulatory Floodway means the channel of a river or
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 36
-52-
Regulatory Power
Relocation
Repetitive Loss Property
Risk
other watercourse and the adjacent land areas that must
he reserved in order to discharge the base flood without
cumulatively increasing the water surface elevation
more than a designated height.
Local jurisdictions have the authority to regulate
certain activities in their jurisdiction. With respect to
mitigation planning, the focus is on such things as
regulating land use, development, and construction
through zoning, subdivision regulations, design
standards, and floodplain regulations.
The moving of a structure from a flood area to a new
location, normally to one where there is no threat of
flooding.
A property that is currently insured for which two or
more National Flood Insurance Program losses
(occurring more than ten days apart) of at least $1000
each have been paid within any 10 -year period since
1978.
Response Those activities and programs designed to address the
immediate and short-term effects of the onset of an
emergency or disaster.
Retrofit The strengthening of structures to reduce or eliminate
(mitigate) future disaster risks.
Richter Scale A numerical scale of earthquake magnitude devised by
seismologist C.F. Richter in 1935.
Rift Zone A rift zone is an elongated system of crustal fractures
associated with an area that has undergone extension
(the ground has spread apart).
The estimated impact that a hazard would have on
people, services, facilities, and structures in a
community, the likelihood of a hazard event resulting
in an adverse condition that causes injury or damage.
Risk is often expressed in relative terns such as a high,
moderate, or low likelihood of sustaining damage
above a particular threshold due to a specific type of
hazard event. It can also be expressed in terms of
potential monetary losses associated with the intensity
of the hazard.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 37
-53-
Riverine Relating to, formed by, or resembling rivers (including
tributaries), streams, creeks, brooks, etc,
Riverine Flooding
Runoff
Run-up
Scale
Seiche
Seismicity
Special Flood Hazard
Special Hazard Area
Stafford Act
City of Kenai All Hazard Mitigation Plan Final April, 2010
Flooding related to or caused by a river, stream, or
tributary overflowing its banks due to excessive
rainfall. snowmelt or ice.
That portion of precipitation that is not intercepted by
vegetation, absorbed by land surface, or evaporated,
and thus flows overland into a depression, stream, lake,
or ocean (runoff, called immediate subsurface runoff,
also takes place in the upper layers of soil).
The maximum vertical height of a tsunami in relation
to sea level.
A proportion used in determining a dimensional
relationship; the ratio of the distance between two
points on a map and the actual distance between the
two points on the earth's surface.
An oscillating wave (also referred to as a seismic sea
wave) in a partially or fully enclosed body of water.
May be initiated by landslides, undersea landslides,
long period seismic waves, wind and water waves, or a
tsunami.
Describes the likelihood of an area being subject to
earthquakes.
An area within a floodplain having a 1 percent or
greater Area (SFHA) chance of flood occurrence in
greater Area (SFHA) chance of flood occurrence in any
given year (100 -year floodplain); represented on Flood
Insurance Rate Maps by darkly shaded areas with zone
designation that include the latter A or V.
Special Hazard Area means an area having special
flood, mudslide (i.e., mudflow) and /or flood- related
erosion hazards, as shown on a FHI3M or FIRM as
Zone A, AOA, A1-30, AE, A99, AH, VO, V1 -30, VE,
V, M., or E.
1) The Robert T. Stafford Disaster Relief and
Emergency Assistance Act, Public Law 93 -288, as
amended. 2) The Stafford Act provides an orderly and
continuing means of assistance by the Federal
Government to State, local and tribal governments in
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Page 38
Stakeholder
Standard Project Flood
State Coordinating Agency
State Disaster Declaration
State Hazard Mitigation Officer
(SHMO)
City of Kenai All Hazard Mitigation Plan Final April, 2010
carrying out their responsibilities to alleviate the
suffering and damage which result from disaster.
Individual or group that will be affected in any way by
an action or policy. They include businesses, private
organizations, and citizens
A term used by the U.S. Army Corps of Engineers to
designate a flood that may be expected from the most
severe combination of meteorological and hydrological
conditions that is considered reasonably characteristics
of the geographical area in which the drainage basin is
located, excluding extremely rare combinations. The
peak flow for a standard project flood is generally 40 to
60 percent of the probable maximum flood for the
same location.
State Coordinating Agency means the agency of the
State government, or other office designated by the
Governor of the State or by State Statute at the request
of the Administrator to assist in the implementation of
the National Flood Insurance Program in that State
A disaster emergency shall be declared by executive
order or proclamation of the Governor upon finding
that a disaster has occurred or that the occurrence or
the threat of a disaster is imminent. The state of
disaster emergency shall continue until the govemor
finds that the threat or danger has passed or that the
disaster has been dealt with to the extent that
emergency conditions no longer exist and terminates
the state of disaster emergency by executive order or
proclamation.
Along with other provisions, this declaration allows the
governor to utilize all available resources of the State
as reasonably necessary, direct and compel the
evacuation of all or part of the population from any
stricken or threatened area if necessary, prescribe
routes, modes of transportation and destinations in
connection with evacuation and control ingress and
egress to and from disaster areas. It is required before a
Presidential Disaster Declaration can be requested.
The SHMO is the representative of State government
who is the primary point of contact with FEMA, other
State and Federal agencies, and local units of
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Page 39
Stile A set of stairs to allow access over an obstruction, such
as a floodwall
Storm Surge
Stream
Structural Flood plain
Structural Mat Slab
Structure
Subdivision Regulations
Subsidence
Subsidized Rates
Substantial Damage
Substantial Improvement
City of Kenai A11 Hazard Mitigation Plan Final April, 2010
government in the planning and implementation of pre
and post disaster mitigation activities.
Rise in the water surface above normal water level on
open coast due to the action of wind stress and
atmospheric pressure on the water surface.
A body of water flowing in a natural surface channel.
Flow may be continuous or only during wet periods.
Streams that flow only during wet periods are termed
"intermittent streams."
Those physical or engineering measures employed to
modify the way floods behave; examples include dams,
dikes, levees, channel enlargements, and diversions.
The concrete slab of a building that includes structural
reinforcement to help support the building' s structure.
That which is constructed above or below ground in
some definite manner for any use or purpose.
Ordinances or regulations governing the subdivision of
land with respect to things such as adequacy and
suitability of building sites and utilities and public
facilities.
Sinking of the land surface usually due to withdrawai
of underground water, oil, or minerals.
Subsidized rates mean the rules established by the
Administrator involving in the aggregate subsidization
by the Federal Government.
Damage of any origin sustained by a structure in a
Special Flood Hazard Area whereby the cost of
restoring the structure to its before- damaged condition
would equal or exceeds 50 recent of the market value
of the structure before the damage.
Substantial improvement means any reconstruction,
rehabilitation, addition, or other improvement of a
structure, the cost of which equals or exceeds 50
percent of the market value of the structure before the
"start of construction" of the improvement. This term
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Page 40
Tectonic Plate
Tephra
Topography
Tribal Government
Tsunami
Variance
includes structures, which have incurred "substantial
damage," regardless of the actual repair work
performed. The term does not, however, include either:
(1) Any project for improvement of a structure to
correct existing violations of' state or local health,
sanitary, or safety code specifications which have been
identified by the local code enforcement official and
which are the minimum necessary to assure safe living
conditions or (2) Any alteration of a "historic
structure," provided that the alteration will not preclude
the structure's continued desienation as a "historic
structure
Torsionally rigid, thin segments of the earth's
lithosphere that may be assumed to move horizontally
and adjoin other plates. It is the friction between plate
boundaries that cause seismic activity.
Tephra is a general term for fragments of volcanic rock
and lava regardless of size that are blasted into the air
by explosions or carried upward by hot gases in
eruption columns or lava fountains. Tephra includes
large dense blocks and bombs, and small light rock
debris.
The contour of the land surface. The technique of
graphically representing the exact physical features of a
place or region on a map.
A Federally recognized governing body of an Indian or
Alaska Native Tribe, band, nation, pueblo, village or
community that the Secretary of the Interior
acknowledges to exist as an Indian tribe under the
Federally Recognized Tribe List Act of 1994, 25
U.S.C. 479a. This does not include Alaska Native
corporations, the ownership of which is vested in
private individuals.
A sea wave produced by submarine earth movement or
volcanic eruption with a sudden rise or fall of a section
of the earth's crust under or near the ocean. A seismic
disturbance or land slide can displace the water
column, creating a rise or fall in the level of the ocean
above. This rise or fall in sea level is the initial
formation of a tsunami wave.
Variance means a grant of relief by a community from
the terms of a fioodplain management regulation.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 41
-57-
Vent
Venting
Volcano
Vulnerability
Vulnerability Assessment
Watercourse
Vents are openings in the Earth's crust from which
molten rock and volcanic gases escape onto the ground
or into the atmosphere. Vents may consist of a single
circular shaped structure, a large elongated fissure and
fracture, or a tiny ground crack.
A system designed to allow floodwaters to enter an
enclosure, usually the interior of foundation walls, so
that the rising water does not create a dangerous
differential in hydrostatic pressure. This is usually
achieved through small openings in the wall, such as a
missing or rotated brick or concrete block or small
pipe.
A volcano is an opening, or rupture, in a planet's
surface or crust, which allows hot magma, ash and
gases to escape from below the surface. Volcanoes are
generally found where tectonic plates are diverging or
converging. A mid oceanic ridge, for example the Mid
Atlantic Ridge, has examples of volcanoes caused by
divergent tectonic plates pulling apart; the Pacific Ring
of Fire has examples of volcanoes caused by
convergent tectonic plates coming together.
Describes how exposed or susceptible to damage an
asset it. Vulnerability depends on an asset" s
construction, contents, and the economic value of its
functions. The vulnerability of one element of the
community is often related to the vulnerability of
another. For example, many businesses depend on
uninterrupted electrical power if an electrical
substation is flooded, it will affect not only the
substation itself, but a number of businesses as well.
Other, indirect effects can be much more widespread
and damaging than direct ones.
The extent of injury and damage that may result from
hazard event of a given intensity in a given area. The
vulnerability assessment should address impacts of
hazard events on the existing and future built
environment.
A natural or artificial channel in which a flow of water
occurs either continually or intermittently.
igation Plan Final April, 2010 Page 42
-58-
Watershed
Water Surface Elevation
An area that drains to a single point. In a natural basin,
this is the area contributing flow to a given place or
stream.
Water surface elevation means the height, in relation to
the National Geodetic Vertical Datum (NGVD) of
1929, (or other datum, where specified) of floods of
various magnitudes and frequencies in the floodplains
of coastal riverine areas.
Water Table The uppermost zone of water saturation in the ground.
Wetlands
Wildfire An uncontrolled fire spreading through vegetative
fuels, exposing and possibly consuming structures.
Zoning Ordinance
Areas that are inundated or saturated frequently and for
long enough to support vegetative or aquatic life
requiring saturated or seasonally saturated soil
conditions for growth and reproduction.
An ordinance under the State or local government's
police powers that divides an area into districts and,
within each district, regulates the use of land and
buildings, height, and bulk of buildings or other
structures, and the density of population.
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 43
-59-
ACMP Alaska Coastal Management Program
ADES Alaska Division of Emergency Services
ADF &G Department of Fish and Game (State of Alaska)
ADOI Alaska Division of Insurance
AEIC Alaska Earthquake Information Center
AEMS Alaska Emergency Management System
AFS Alaska Fire Service
AGDC Alaska Geospatial Data Committee
AHS Alaska Hydrologic Survey
AICRR Alaska Railroad
AL,COM Alaskan Command
ANILCA Alaska National interest Lands Conservation Act
AOR Area of Responsibility
AMSC Alaska Mountain Safety Center
ANSS Advanced National Seismic System
ARC American Red Cross
ARES Amateur Radio Emergency Services
ARNG Army National Guard
ARRL American Radio Relay League
AS Alaska Statute
AST Alaska State Troopers
ATV All Terrain Vehicle
AVO Alaska Volcano Observatory
AWCG Alaska. Wildfire Coordinating Group
BLM Bureau of Land Management
CAP Community Assistance Program
CAP Civil Air Patrol
CDBG Community Development Block Grant
CIAP Coastal Impact Assistance Program
CRS Community Rating System
CTOC Communications Technology, Operations Coordination
DART
DAS
DC
DCA
DCBD
DCED
DEC
DEED
DF &G
DGC
r�a:a tiny ins
City of Kenai All Hazard Mitigation Plan Final April, 2010
Deep -ocean Assessment and Reporting of Tsunamis
Department of Administration
Department of Corrections
Department of Community Advocacy
Division of Community Business Development (State of Alaska)
Department of Community Economic ,Development (State of Alaska_
Department of Environmental Conservation (State of Alaska)
Department of Education Early Development (State of Alaska)
Department of Fish Game
Division of Governmental Coordination (State of Alaska)
-60-
Page 44
DGGS Division of Geologic Geophysical Surveys (State of Alaska)
DHSS Department of Health Social Services
DLAW Deparunent of Law (State of Alaska)
DMVA Department of Military Veterans Affairs (State of Alaska)
DNR Department of Natural Resources (State of Alaska)
DOA Department of Agriculture (U.S.)
DOD Department of Defense (U.S.)
DOF Division of Forestry (State of Alaska)
DOl Department of the Interior (U.S.)
DOJ Department of Justice (U.S.)
DOT &PF Department of Transportation Public Facilities (State of Alaska)
DPC Governor's Disaster Policy Cabinet (State of Alaska)
DPS Department of Public Safety (State of Alaska)
EAS Emergency Alert System
EMPG Emergency Management Program Grant
EOC Emergency Operation Center
EOP Emergency Operations Plan
EPA Environmental Protection Agency
FAA Federal Aviation Administration
FCC Federal Communications Commission
FEMA Federal Emergency Management Agency
FGDC Federal Geospatial Data Clearinghouse
FMA Flood Mitigation Assistance Program
GIS Geographic Information System
GOES Geostationary Operational Environmental Satellite
HMGP Hazard Mitigation Grant Program
HUD US. Department of Housing and Urban Development
HVA Hazard and Vulnerability Analysis
IHCA Interagency Hydrology Committee for Alaska
KPB Kenai Peninsula Borough
LEPC Local Emergency Planning Committee
MSB Matanuska- Susitna Borough
NAWAS
NFIP
NMFS
NOAA
NOS
NPS
NWS
City of Kenai All Hazard Mitigation Plan Final April, 2010
System National Warning
National Flood Insurance Program
National Marine Fisheries Service
National Oceanic Atmospheric Administration
National Ocean Service
National Park Service
National Weather Service
-61-
Page 45
PMEL Pacific Marine Environmental Laboratory
SBA Small Business Administration
SEAAC South -east Alaska Avalanche Center
SECC State Emergency Coordination Center
SERC State Emergency Response Commission
SHINTO State Hazard Mitigation Officer
SRC Senate Concurrent Resolution
TIME Tsunami Inundation Mapping Effort
UAF University of Alaska Fairbanks
UAF /GI University of Alaska Fairbanks Geological Institute
USACE United States Army Corps of Engineer
USAF United States Air Force
USCG United States Coast Guard
USFA United States Fire Administration
USFS United States Forest Service
USFWS United States Fish Wildlife Service
USGS United States Geological Survey
WC &ATWC West Coast /Alaska Tsunami Warning Center
WMD Weapons of Mass Destruction
WP Warning Point
City of Kenai All Hazard Mitigation Plan Final April, 2010 Page 46
-62-
Bidder
Total Basic Bid
Kachemak Electric Co., Inc
58,587.00
Are Electrical Services
88,680.00
Quality Electric LLC
62,000.00
Udelhoven Oilfield System Services
99,500.00
Cook Inlet Sign Lighting
63,600.00
Glacier Electric Construction, Inc
63,000.00
J
the of
KENII .ALASKA
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
CONTRACT TO KACHEMAK ELECTRIC CO., INC. FOR THE PROJECT ENTITLED,
"KENAI MULTIPURPOSE FACILITY LIGHTING UPGRADE 2010," FOR THE TOTAL
AMOUNT OF $58,587.00.
WHEREAS, the following bids were received on June 9, 2010:
and,
CITY OF KENAI
RESOLUTION NO. 2010 -35
WHEREAS, sufficient monies are appropriated.
Suggested by: Administration
WHEREAS, Kachemak Electric Co., Inc.'s bid is the lowest responsible bid and award
to this bidder would be in the best interest of the City; and,
WHEREAS, the recommendation from City Administration is to award the contract to
Kachemak Electric Co., Inc. for the total cost of $58,587.00; and,
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the contract for the project entitled, "Kenai Multipurpose Facility Lighting
Upgrade- 2010," be awarded to Kachemak Electric Co., Inc. for the total amount of
$58,587.00.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of
June,2010.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: y
-63-
PAT PORTER, MAYOR
the a'yo(
KENAI, SKA
Rick,
"V'(laye with a Past Ga with a Future
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: (907) 283 -7535, Ext. 236 FAX: (907) 283 -3014 tlll�
1992
MEMO NOUN/
TO: Rick Koch, City Manager
FR Kevin Lyon, Capital Projects Manager
DATE: June 9, 2010
SUBJECT: AWARD OF CONTRACT; Kenai Multipurpose Facility Lighting
Upgrade 2010
The scope of the Multipurpose Facility Lighting Upgrade project is to replace the
existing Metal Halide Light fixtures with energy efficient florescent T5HO lighting.
The City issued a performance based design build specification to provide
lighting at the facility to meet the 75 foot candle average on the ice surface as
recommended by the Illuminating Engineering Society of North America.
The project was funded by Ordinance 2448 -2009 American Recovery and
Reinvestment Act (ARRA) and by Ordinance 2476 2010.
On June 9, 2010 bids for the project were opened and six bids were received.
These bids have been reviewed and it was determined that Kachemak Electric
Co., Inc. was the lowest responsive bidder. The bid documents were complete
and responsive and sufficient funds are available to complete the project.
The attached Resolution 2010 -35 recommending award of the contract to
Kachamak Electric Co., Inc for the total cost of $58,587.00,
-64-
tty
KENAI, ALASKA
CITY OF KENAI
RESOLUTION NO. 2010 -36
Suggested by: Administration
A RESOLUTION OF' THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
SHARING COST SAVINGS FROM THE CALENDAR YEAR 2009 HEALTH INSURANCE
PLAN WITH EMPLOYEES.
WHEREAS, the City maintains a health insurance plan that includes a $1,500
individual or $3,000 family deductible; and,
WHEREAS, the cost for this plan is significantly less than the premium for the $200
individual and $400 family deductible plan; and,
WHEREAS, the City self insures the $1,300 per individual and $2,600 difference in the
deductible; and,
WHEREAS, the maximum exposure for this self insurance was calculated to be
$230,500; and,
WHEREAS, the actual cost of the self insurance was $92,291 less than the maximum
exposure; and,
WHEREAS, as a motivation for the employees to reduce the City's self insured health
care costs, when the plan was implemented the administration told the employees that
it would seek to share Calendar Year cost savings with them; and,
WHEREAS, the administration recommends that half the savings be shared with
employees; and,
WHEREAS, sufficient funds are appropriated in the various departmental health
insurance accounts.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that in recognition of the fact that there was a savings of approximately
$1,000 per employee in the Calendar Year 2009 health insurance plan due to under
utilization of the self insurance cost calculated in the plan, the City Manager is
authorized to pay $500 to each current employee that was covered by health
insurance in 2009.
-65-
Resolution No. 2010 -36
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16TH day of June,
2010.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: 7 1C.GYM
PAT PORTER, MAYOR
-66-
�r.
thc etyof
KENAALASKA
Rick Koch City Manager
From: Terry Eubank, Finance Director
Date: .tune 9, 2010
Re: Resolution 2010 -36
with a Past, Gcy with a Fprture
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
In January 2007 the City implemented a new health insurance plan that increased the employee's
deductible substantially with the resulting insurance premium being significantly lower than the
prior low deductible plan. The City then self insured for the increased deductible by reimbursing
the employees through a healthcare reimbursement account for the increased deductible. During
the first two years of the plan, the City saw annual savings of more than $90,000 of which it
shared approximately half with the employees as recognition of the employee's efforts to reduce
the City's self insured health care costs.
Again in calendar year 2009 the City's expenditures for the self insured health care costs was
significantly under its maximum and budgeted amount. The City budgeted $230,500 for its
portion of self insured health care yet incurred only $138,209 in actual expenditures for a saving
of $92,291 or $1,025 per eligible employee. In recognition of their efforts and motivation for
employees to continue to reduce the City's self insured health care expenditures the
administration recommends that approximately half, $500.00 per eligible person, be shared with
the employees.
-67-
KE AI. ALA ALASKA
CITY OF KENAI
RESOLUTION NO. 2 010 -37
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI AUTHORIZING THE CITY
TO ISSUE REVENUE BONDS, 2010 (DOUBLE GLACIER BUILDERS LLC PROJECT)
IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,700,000; THE EXECUTION
AND DELIVERY OF A LOAN AGREEMENT TO SECURE THE BONDS; FIXING
CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE.
WHEREAS, the City of Kenai, Alaska (the "City is a home rule city and under Section
11 of Article X of the Alaska Constitution may exercise all legislative power not
prohibited by law or the charter of the City, and it has been determined that the
matters set forth in this resolution are not prohibited by law or the charter; and;
WHEREAS, Section 6 -5 of the Kenai City Charter authorizes the City to borrow money
and to issue bonds or other evidence of indebtedness for the purpose of promoting
economic development in and adjacent to the City, provided that such bonds shall not
be repayable from, taxes levied by the City nor be a charge against the general credit of
the City; and,
WHEREAS, Double Glacier Builders, LLC (the "Borrower an Alaska limited liability
company, has requested that the City assist it with providing financing for the
acquisition, construction and equipping of an approximately 2,500 square foot
commercial building located at Lot 3, Baron Park 2008 Replat, Kenai Alaska (the
"Project and,
WHEREAS, the City has determined that the Project serves a public purpose of the
City by promoting economic development in the City, and has determined this purpose
will be realized by the issuance of its Revenue Bonds, 2010 (Double Glacier Builders,
LLC Project) (the "Bonds in the aggregate principal amount not to exceed
$1,700,000, and lending the proceeds of the Bonds to the Borrower to provide all or
part of the funds required to accomplish the Project; and,
WHEREAS, under the Internal Revenue Code of 1986, as amended, the City may issue
bonds for costs of the Project other than the acquisition of land, as tax exempt
"Recovery Zone Facility Bonds and bonds to finance land acquisition as taxable
bonds; and,
WHEREAS, by Resolution No. 2010 -49 adopted June 8, 2010, the Kenai Peninsula
Borough allocated $2,000,000 of Recovery Zone Facility Bond volume cap to the City;
and,
WHEREAS, the Council finds that it is necessary and appropriate to delegate to each
of the City Manager and the City Finance Director authority to detennine the principal
amount of Bonds to be issued as tax- exempt Recovery Zone Facility Bonds and the
-68-
Resolution No. 2010 -37
Page 2 of 24
principal amount of Bonds to be issued as taxable bonds, with each type of Bonds
being issued in a separate series, to determine the maturity amounts, interest rates
and other details of each series of Bonds, and to determine other matters that are not
provided for in this resolution; and,
WHEREAS, in order to enable the financing contemplated herein, the City will enter
into a Loan Agreement, to be dated the date of issuance of the Bonds (the "Loan
Agreement') with the Borrower; and,
WHEREAS, the Loan Agreement will require the Borrower to make or cause to be
made payments in amounts and at times sufficient to pay the principal of and
premium, if any, and interest on the Bonds when due pursuant to their terms or upon
the redemption, purchase or acceleration thereof; and,
WHEREAS, the City will sell the Bonds to First National Bank Alaska (the "Bank
and,
WHEREAS, to secure the payment of all of the principal of and premium, if any, and
interest on the Bonds, the City will assign its rights, title and interest in the Loan
Agreement, without recourse, to the Bank, as the initial purchaser of the Bonds; and,
WHEREAS, there has been presented to this meeting the form of the Loan Agreement;
and,
-69-
WHEREAS, it appears that the document described above, which now is before this
meeting, is in appropriate form and is an appropriate instrument for the purposes
intended; and,
WHEREAS, to provide for the execution, issuance and delivery of the Bonds, to
establish and declare the terms and conditions upon which the Bonds are to be issued
and secured and to secure the payment of the principal thereof and premium, if any,
and interest thereon, the City has adopted this Resolution.
NOW, THEREFORE, BT IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that:
ARTICLE I
DEFINITIONS
1.1 Definitions. In addition to terms that are defined in the recitals above,
the following terms shall have the following meanings in this resolution:
"Bank" means First National Bank Alaska, in its capacity as the original Owner
of the Bonds, and its successors and assigns.
"Bond" or "Bonds" means any of the "Revenue Bonds, 2010 (Double Glacier
Builders, LLC Project)" of the City of Kenai issued in one or more series, the issuance
and sale of which are authorized herein.
Resolution No. 2010 -37
Page 3 of 24
"Bond Counsel" means a firm of nationally recognized bond counsel, duly
admitted to practice law before the highest court of any state and designated by the
City as its bond counsel for the Bonds.
"Bond Register" means the registration books maintained by the Registrar,
which include the names and addresses of the Registered Owners of the Bonds or
their nominees
"City" means the City of Kenai, a municipal corporation of the State of Alaska,
organized as a home rule city under Title 29 of the Alaska Statutes.
"Code" means the Internal Revenue Code of 1986, as amended from time to
time, together with all regulations applicable thereto.
"Council" means the Council, of the City of Kenai, as the general legislative
authority of the City of Kenai, as the same shall be duly and regularly constituted from
time to time.
"Condemnation Award" means the total condemnation proceeds actually paid
by the condemnor as a result of the condemnation of all or any part of the Project, less
the actual costs and expenses, including attorneys' fees, incurred by the Borrower or
the City in obtaining such award.
"Date of Issue" means the date the Bonds are issued and delivered to the initial
purchaser thereof.
"Declaration of Acceleration" means a declaration given in accordance with the
provisions of Section 6.2 that all principal of and interest on the Bonds are due and
payable immediately.
"Deed of Trust" means the Deed of Trust, Assignment of Rents and Leases and
Security Agreement dated the Date of Issue, under which the Borrower is grantor and
the Bank is beneficiary, conveying a lien on the real property and improvements
constituting the Project, as the same may be amended, restated, supplemented or
otherwise modified from time to time.
"Determination of Taxability" means, with respect to Recovery Zone Facility
Bonds, (i) the enactment of legislation or the adoption of final regulations or a final
decision, ruling or technical advice by any federal judicial or administrative authority
which has the effect of requiring interest on such Bonds to be included in the gross
income of the Owners for federal income tax purposes. or (ii) the receipt by the Bank of
a written opinion of Bond Counsel selected by the Bonower and approved by the Bank
to the effect that interest on such Bonds must be included in the gross income of the
Owners for federal income tax purposes; provided that no decision by any court or
decision, ruling or technical advice by any administrative authority shall be considered
final (a) unless the City or the Owner involved in the proceeding or action giving rise to
such decision, ruling or technical advice (1) gives the Borrower prompt notice of the
commencement thereof and. (2) offers the Borrower the opportunity to control the
contest thereof, provided the Borrower shall have agreed to bear all expenses in
connection therewith and to indemnify that Owner and the City against all liabilities in
connection therewith, and (b) until the expiration of all periods for judicial review or
appeal.
"Event of Default" means any of the events specified as such in Section 6.1.
"Government Obligations" means obligations that are either (i) direct obligations
of the United States of America or (ii) obligations of an agency or instrumentality of the
-70-
Resolution No. 2010 -37
Page 4 of 21
United States of America the timely payment of the principal of and interest on which
are unconditionally guaranteed by the United States of America.
"Insurance Proceeds" means the total proceeds of casualty insurance actually
paid or payable in respect of insurance on all or any part of the Project, less the actual
costs and expenses, including attorneys' fees, incurred by the Borrower or the City in
"Interest Payment Date" means the first day of each month.
"Loan" has the meaning set forth in the definition of "Loan Agreement."
"Loan Agreement" means the Loan Agreement dated the Date of Issue, by and
between the City and the Borrower, relating to the loan of Bond proceeds (the "Loan")
and repayment of the Loan by the Borrower, and includes any supplements or
amendments thereto made in conformity herewith.
"Loan. Payments" means the payments of principal of and interest on the Loan
made by the Borrower pursuant to the Loan Agreement.
"Outstanding," when used as of any particular time with reference to Bonds,
means all Bonds theretofore, or thereupon being, executed and delivered by the City
under this Resolution except (1) Bonds theretofore cancelled by the Registrar or
surrendered to the Registrar for cancellation; (2) Bonds with respect to which all
liability of the City shall have been discharged in accordance with Section 7.1 or as
described in Section 7.3, and (3) Bonds for the transfer or exchange of or in lieu of or
in substitution for which other Bonds shall have been executed and delivered by the
City pursuant to this Resolution. In determining whether the Owners of the requisite
principal amount of Outstanding Bonds have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Bonds owned by the
Borrower or an affiliate thereof shall be disregarded and deemed not to be
Outstanding. Notwithstanding the foregoing, if all Bonds are owned by the Borrower
or any affiliate thereof, all Bonds shall be considered Outstanding for the purpose of
such determination.
"Owner," whenever used herein with respect to a Bond, means the Person in
whose name such Bond is registered on the Bond Register.
"Person" means an individual, corporation, firm, association, partnership, trust,
or other legal entity or group of entities, including a governmental entity or any agency
or political subdivision thereof.
"Project" means, depending on the context, (1) the acquisition, construction and
equipping by the Borrower of a commercial building located at Lot 3, Baron Park 2008
Replat, and legally described in Exhibit A to the Deed of Trust and located in the City
of Kenai, Alaska and (2) that commercial building and appurtenances to such
commercial building.
"Record Date" means the 15th day of the month preceding each Interest
Payment Date.
"Recovery Zone Facility Bonds" means Bonds that are described in Section
1400U- 3(b)(1) of the Code.
"Registrar" means the City Finance Director, or any successor that the City may
appoint by resolution.
"Resolution" means Resolution Number 2010 -37 adopted by the City Council on
June 16, 2010, authorizing the issuance of the Bonds, as it may from time to time be
supplemented, modified or amended by any Supplemental Resolution.
-71-
Resolution No. 2010 -37
Page 5 of 24
"Supplemental Resolution" means any Resolution hereafter duly adopted, by the
City Council, supplementing, modifying or amending this Resolution; but only if and
to the extent that such Supplemental Resolution is specifically authorized hereunder.
"Taxable Bonds" means Bonds the interest on which is not excludable from
gross income under Section 103 of the Code.
ARTICLE II
THE BONDS
2.1 Authorization, Amount and Designation of Bonds. The Bonds are
authorized to be issued hereunder in the aggregate principal amount of not to exceed
$1,700,000 to obtain money to carry out the purposes of this Resolution. The Bonds
are designated "City of Kenai, Alaska Revenue Bonds, 2010 (Double Glacier Builders,
LLC Project)." No other bonds may be issued under this Resolution.
2.2 Nature of Security. The Bonds are secured solely by and payable solely
from the sources described herein and in the Loan Agreement. The Bonds are not a
debt or liability of the City, the State of Alaska or any political subdivision thereof and
do not create or constitute an indebtedness, liability, or obligation of the City, the
State of Alaska or any political subdivision thereof, nor do they constitute a pledge of
faith, credit, or taxing power of the City, the State of Alaska or any political
subdivision thereof. The City is not obligated to pay the principal of or premium, if
any, or interest on the Bonds except from the sources set forth herein and in the Loan
Agreement, and neither the faith and credit nor the taxing power of the City, the State
of Alaska or any political subdivision thereof is pledged to the payment of principal of
or premium, if any, or interest on the Bonds.
2.3 Terms of the Bonds, The Bonds shall be dated as of the Date of Issue.
The Bonds shall be fully registered as to principal and interest and shall be numbered
separately in the manner and with any additional designation as the Registrar deems
necessary for the purpose of identification. The Bonds shall be issued in one or more
series in one or more of the following categories: Recovery Zone Facility Bonds and
Taxable Bonds. The Bonds shall mature on one or more dates commencing no earlier
than 2011 and ending no later than 2031. The Bonds shall bear interest from their
date, or from the last Interest Payment Date to which interest has been paid. Interest
on the Bonds shall be computed upon the basis of a 360 -day year consisting of twelve
30 -day months. Subject to Section 2.1 and the remainder of this section, the dated
date, the principal and interest payment dates and the record dates for principal and
interest payments on each series of Bonds, the aggregate principal amount of Bonds
and of each series of Bonds, and the principal amount of each maturity and the
interest rates for each series of Bonds, shall be determined at the time of execution of
the Loan Agreement under Section 10.9.
2.4 Payment of Bonds. When the Bank is the Owner of the Bonds, payment
of principal and interest on the Bonds shall be made as provided in the Loan
Agreement. When the Bank is not the Owner of the Bonds, installments of principal
on any Bond shall be paid upon surrender of such Bond at the office of the Registrar,
and interest on any Bond on each Interest Payment Date in respect thereof shall be
payable by check mailed to the address of the person entitled thereto as such address
shall appear in the Bond Register; provided that at the written request of the owner of
_72_
Resolution No. 2010 -37
Page 6 of 24
at least $1,000,000 aggregate principal amount of Bonds received by the Registrar at
least one Business Day before the corresponding Record Date, interest accrued on. the
Bonds will be payable by wire transfer within the United States in immediately
available funds to the bank account number of such owner specified in such request;
and provided further that interest payable at maturity (or redemption) shall be paid
only upon presentation and surrender of such Bond. The Bonds shall be payable in
any coin or currency of the United States of America which, at the time of payment, is
legal tender for the payment of public and private debts, including funds evidenced by
wire transfer.
Subject to the foregoing provisions of this Section 2.4, each Bond delivered
under this Resolution upon registration of transfer of or exchange for or in lieu of any
other Bond shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Bond.
2.5 Form and Execution of Bonds. The Bonds shall be in substantially the
form attached hereto as Exhibit A. The Bonds shall be executed in the name of the
City by the manual or facsimile signature of the Mayor, and its corporate seal (or a
facsimile thereof) shall be impressed or otherwise reproduced thereon and attested by
the manual or facsimile signature of the City Clerk. The execution of a Bond on behalf
of the City by persons who at the time of the execution are duly authorized to hold the
proper offices shall be valid and sufficient for all purposes, although any such person
shall have ceased to hold office at the time of delivery of the Bond or shall not have
held office on the date of the Bond.
2.6 Ownership of Bonds. The City and the Registrar may deem and treat the
Person in whose name any Bond is then registered on the Bond Register or its
nominee, whether or not that Bond is overdue, as the Owner of that Bond for the
purpose of receiving payment of the principal of and premium, if any, and interest on
that Bond and for all other purposes whatsoever, and the City and the Registrar shall
not be affected by any notice to the contrary.
2.7 Transfer of Bonds.
(1) The City shall cause books for the registration and for the transfer
of the Bonds (the "Bond Register as provided in the Bonds and this Resolution to be
kept by the Registrar.
(2) Upon surrender for transfer of any Bond at the office of the
Registrar, the City shall execute and deliver in the name of the transferee or
transferees a new Bond or Bonds of the same interest rate, maturity and for the
aggregate principal amount the Owner is entitled to receive. No transfer of any Bond
shall be binding upon the City or the Registrar unless made at that office and shown
on the Bond. Register.
(3) Bonds to be exchanged shall be surrendered at an office of the
Registrar, and the City shall execute and deliver in exchange therefor the Bond or
Bonds that the Owner making the exchange shall be entitled to receive.
(4) Any Bond presented for transfer or payment (if so required by the
Registrar) shall be accompanied by a written instrument or instruments of transfer or
authorization for payment, in form and with guaranty of signature satisfactory to the
Registrar duly executed by the Owner thereof or by its attorney duly authorized in
writing.
-73-
Resolution No. 2010 -37
Page 7 of 24
(5) The costs of printing any new Bonds and any services rendered or
expenses incurred by the City or the Registrar in connection with any exchange or
transfer of Bonds (including the exchange or transfer of a Bond redeemed only in part)
shall be paid by the Borrower, except that as a condition to a transfer of a particular
Bond, the Registrar may require payment by the Owner of a sum sufficient to cover
any tax, fee or other governmental charge that the Registrar is required to pay in
relation thereto.
(6) Each Bond delivered upon transfer of or in lieu of any other Bond
shall be a valid obligation of the City evidencing the same debt as the Bond
surrendered, and except as otherwise provided herein shall be entitled to all of the
security and benefits hereof to the same extent as the Bond surrendered, shall carry
all the rights to interest accrued and unpaid, and to accrue, which were carried by
such other Bond, and shall be so dated that neither gain nor loss of interest shall
result from such transfer or exchange.
(7) The Registrar shall not be required to exchange or transfer any
Bond or portion thereof that has been selected for redemption and also shall not be
required to transfer or exchange any Bond or portion thereof during the period in
which the City is selecting Bonds for redemption or during the 15 days preceding any
principal payment or redemption date.
2.8 Mutilated, Lost. Stolen and Destroved Bonds. In case any Bond issued
hereunder shall become mutilated or be destroyed, stolen or lost, the City shall, if not
then prohibited by law, cause to be executed and delivered a new Bond of like amount,
interest rate, maturity date, and tenor in exchange and substitution for and upon
cancellation of that mutilated Bond, or in lieu of and in substitution for such
destroyed, stolen or lost Bond, upon payment by the Owner thereof of any applicable
tax or governmental charge and the reasonable expenses and charges of the City and
the Registrar in connection therewith, and in the case of a Bond destroyed, stolen or
lost, the filing with the Registrar of evidence satisfactory to it that that Bond was
destroyed, stolen or lost, and of the ownership thereof, and furnishing the City and the
Registrar with indemnity satisfactory to each of them. If the mutilated, destroyed,
stolen or lost Bond already has matured or been called for redemption in accordance
with its terms it shall not be necessary to issue a new Bond prior to payment.
2.9 Destruction of Bonds. Whenever any Bonds shall be delivered to the
Registrar for cancellation pursuant to this Resolution or if received by the Registrar
pursuant to Section 2.8, those Bonds shall be cancell.ed promptly and destroyed by
the Registrar after payment, if applicable, of the principal thereof and premium, if any,
and interest accrued thereon, in each case after a reasonable period of time, and
coun.terparts of a certificate of destruction evidencing such destruction shall be
furnished by the Registrar to the Borrower and the City.
ARTICLE III
REDEMPTION OF BONDS
3.1. Optional Redemption. The Bonds, if any, subject to optional redemption
by the City, the time or times when such Bonds are subject to optional redemption,
the terms upon which such Bonds may be redeemed, and the redemption price or
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redemption prices for such Bonds, shall be determined at the time of execution of the
Loan Agreement under Section 10.9.
For all purposes of this Resolution, unless the context otherwise requires, all
provisions relating to the redemption of Bonds shall relate, in the case of any Bond
redeemed or to be redeemed only in part, to the portion of the principal of that Bond
that has been or is to be redeemed.
3.2 Extraordinary Redemption. The Bonds are subject to extraordinary
redemption prior to maturity, as a whole or in part as described below, at a
redemption price equal to the principal amount thereof plus accrued interest to the
date fixed for redemption,
(1) as a whole or in part, on the first date for which timely notice of
redemption may be given, with Insurance Proceeds or a Condemnation Award (and, if
necessary, other money legally available therefor), if so required by Section 6.02 of the
Loan Agreement,
(2) as a whole, on the first Interest Payment Date for which timely
notice of redemption may be given, at the option of the City, upon an occurrence of an
event of default under the Loan Agreement, or
(3) only in the case of Bonds that are Recovery Zone Facility Bonds,
as a whole or in part, on the first date for which timely notice of redemption can be
given upon receipt by the Bank of an opinion of Bond Counsel to the effect that such
redemption is required to prevent a Determination of Taxability. as a whole or in part,
on the first date for which timely notice of redemption can be given upon receipt by the
Bank of an opinion of Bond Counsel to the effect that such redemption is required to
prevent a Determination of Taxability.
No Bonds shall be redeemed upon the occurrence of any of the events specified
above unless sufficient funds are deposited with the City to pay the principal of and
premium, if any, and interest on the Bonds to be redeemed. The City shall not be
required to obtain any opinion of Bond Counsel described in subsection (2), and the
expense of obtaining any such opinion shall be paid by the Borrower. Bonds shall be
selected for redemption such that the principal amount of Bonds of each maturity
after the extraordinary redemption shall be proportional to the principal amount of
Bonds of each maturity prior to the extraordinary redemption or in such other manner
as directed in writing by the Borrower to meet the requirements of Section 6.02 of the
Loan Agreement.
3.3 Notice and Effect of Call for Redemption. When the Bank is the
Owner of the Bonds, notice of any intended redemption of Bonds shall be given as
provided in the Loan Agreement. When the Bank is not the Owner of all Outstanding
Bonds, The City shall give notice of redemption by first class mail, postage prepaid,
mailed not less than 30 nor more than 60 days prior to the redemption date to each
Owner of Bonds to be redeemed at the address of such Owner appearing in the Bond
Register, and to such other Persons as the City shall deem appropriate, including all
Persons then required by law or regulation to receive notice of redemption of the
Bonds. The failure of the Registrar to mail notice of redemption to Persons other than
the Owners of Bonds to be redeemed shall not affect the sufficiency of the proceedings
for redemption.
All notices of redemption shall be dated and shall state: (1) the redemption date;
(2) the redemption price; (3) if fewer than all outstanding Bonds are to be redeemed,
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the identification (and, in the case of partial redemption, the respective principal
amounts) of the Bonds to be redeemed; (4) that on the redemption date the redemption
price will become due and payable upon each such Bond or portion thereof called for
redemption, and that interest thereon shall cease to accrue from and after said date;
and (5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the office of the Registrar.
Notwithstanding the foregoing, notice of the extraordinary redemption of Bonds
in accordance with Section 3.2(3) shall be given by the City within five Business Days
after receipt by the City of an opinion of Bond Counsel to the effect that such
redemption is required and of sufficient funds to pay the redemption price of the
Bonds to be redeemed, and the redemption date shall be not more than 10 days after
the notice of such redemption is mailed by the City.
Notice of redemption having been given as aforesaid, the principal of and
premium, if any, on the Bonds so to be redeemed shall become due and payable on
the date fixed for redemption, and on and after such date (unless the City shall default
in the payment of the redemption price) the principal amount of those Bonds shall
cease to bear interest. Upon surrender of any such Bond for redemption in
accordance with such notice, that Bond shall be paid at the redemption price thereof
to the extent that money is on deposit with the City for that purpose. Neither the
failure of an Owner to receive such notice nor any defect in any notice to any other
Owner shall affect the sufficiency of the proceedings for such redemption with respect
to that Owner.
If any Bond called for redemption shall not be so paid on the redemption date
upon proper surrender of the Bond for redemption, the redemption price and, to the
extent lawful, interest thereon shall, until paid, bear interest from the redemption date
at the rate borne by the Bond immediately before the redemption date.
Notwithstanding the foregoing, with respect to optional redemptions only, if the
City does not have funds in its possession on the redemption date sufficient to pay the
redemption price (including interest accruing to the date fixed for redemption) of all of
the Bonds to be optionally redeemed for any reason (including failure to issue any
refunding bonds intended for such purpose on or prior to the redemption date), then
the purported optional redemption and such notice of redemption shall be void. Such
event shall not constitute an Event of Default hereunder, and the City shall not be
subject to any Liability to the Owners or any other person as a result of such failure to
redeem Bonds.
If any Bond is to be redeemed only in part, it shall be surrendered to the
Registrar (with, if the Registrar so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Registrar duly executed by, the
Owner thereof or its attorney duly authorized in writing) and the appropriate officers of
the City shall execute and deliver to the Owner of that Bond, without service charge, a
new Bond or Bonds of the same maturity and interest rate, as requested by that
Owner, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Bond surrendered.
3.4 Cancellation. All Bonds that have been redeemed shall be cancelled by
the Registrar upon receipt and shall not be reissued.
3.5 Purchases for Cancellation. Notwithstanding anything in this Resolution
to the contrary, the City or the Borrower may at any time purchase Bonds for
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cancellation. Any Bonds purchased pursuant to this Section shall be immediately
delivered to the Registrar for cancellation.
5.1
represents:
ARTICLE IV
APPLICATION OF BOND PROCEEDS
4.1 Application of Bond Proceeds. All of the proceeds of the Bonds received
by the City from the purchaser thereof shall be paid to the Borrower at the time and in
the manner provided in the Loan Agreement. Upon receipt thereof, the Borrower shall
deposit and apply such amounts as provided in the Loan Agreement.
ARTICLE V
CITY COVENANTS
Performance of and Authority for Covenants, The City covenants and
(1) that it will faithfully perform at all times any and all covenants,
undertakings, stipulations and provisions contained in this Resolution, in any and
every Bond executed, authenticated and delivered hereunder and in all proceedings of
the City Council pertaining thereto;
(2) that it is duly authorized under the Constitution and laws of the
State, including the Act, to issue the Bonds and to pledge, grant and/or assign a
security interest in the Loan. Payments and Bond proceeds and its rights under the
Loan Agreement and its interest in the Property in the manner and to the extent set
forth herein;
(3) that all action on its part for the issuance of the Bonds and for the
execution and delivery thereof will be duly and effectively taken; and
(4) that the Bonds in the hands of the Owners thereof will be valid
and enforceable special obligations of the City according to the te,uis thereof.
(5) The City acknowledges and agrees that all covenants contained in
this Resolution are with and' for the benefit of all Owners and can be enforced by the
Owners as provided in accordance with the provisions of Article VI.
5.2 Extensions of Payment of Bonds. The City shall not directly or indirectly
extend or assent to the extension of the maturity of any of the Bonds or the time of
payment of the interest thereon without the consent of the Owners of all Outstanding
Bonds.
5.3 Concerning the Loan Agreement. The City shall execute the Loan
Agreement on the Date of Issue. The City shall do or cause to be done all things to be
performed on its part under the Loan Agreement so that the obligations of the
Borrower thereunder shall not be impaired or excused.
ARTICLE VI
EVENTS OF DEFAULT AND REMEDIES OF' OWNERS
6.1 Events of Default. The following events shall be Events of Default:
(1) default in the due and punctual payment of the principal of or
premium, if any, or interest on any Bond when and as the same shall become due and
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payable, whether at maturity as expressed therein, by proceedings for redemption
(except as otherwise provided in Section 3.5), by acceleration, or otherwise, and
(2) default by the City or Borrower in the observance of any of the
other covenants, agreements or conditions on its part contained in this Resolution, the
Loan Agreement or the Bonds, if such default shall have continued beyond any
applicable cure period and for a period of 30 days (or such longer period, if any, as is
specified herein for particular defaults) after written notice thereof, specifying such
default and requiring the same to be remedied, shall have been given to the City and
the Borrower by the Owners of not less than a majority in aggregate principal amount
of the Bonds then Outstanding (or, if cure cannot he completed within such 30 -day
period through the exercise of diligence and the City or the Borrower commences the
required cure within such 30 -day period and continues the cure with diligence and it
is reasonably anticipated that the default could be cured within 60 days, the City or
the Borrower shall have 60 days following receipt of such notice to effect the cure).
6.2 Acceleration of Maturity. Upon the occurrence of an Event of Default
described in paragraph (1) of Section 6.1, at the direction of the Bank the principal of
the Bonds shall be immediately due and payable, whereupon that portion of the
principal of the Bonds thereby coming due and the interest thereon accrued to the
date of payment shall, without further action, become and be immediately due and
payable, anything in this Resolution or in the Bonds to the contrary notwithstanding.
6.3 Remedies upon Default. Upon the occurrence and during the
continuance of an Event of Default, then and in every such case the Owners may
pursue any one or more of the following remedies to the extent permitted by applicable
law:
(1.) by mandamus, or other suit, action or proceeding at law or in
equity, enforce all rights of the Owners hereunder and require the City or the Borrower
to carry out any agreements with or for the benefit of the Owners and to perform its
duties under the Act, the Loan Agreement and this Resolution, provided that any such
remedy may be taken only to the extent permitted under the applicable provisions of
those agreements, the Act, the Loan Agreement or this Resolution, as the case may be;
(2) bring suit upon the Bonds;
(3) by action or suit in equity require the Borrower to account as if it
were the trustee of an express trust for the Owners; or
(4) by action or suit in equity enjoin any acts or things which may be
unlawful or in violation of the rights of the Owners hereunder.
6.4 Owners' Direction of Proceedings. No Owner shall have the right to
institute any proceeding, judicial or otherwise, for the enforcement of the covenants
contained herein, without the written concurrence of the Owners of not less than a
majority in aggregate principal amount of the Bonds then Outstanding; but the
Owners of this principal amount of Bonds may, either at law or in equity, by suit,
action, mandamus, application for appointment of a. receiver or other proceeding,
protect and enforce the rights of all Owners, and may enforce the performance of all
covenants and duties of the City and its officials as set forth in this Resolution,
including the collection and proper segregation and application of all Loan Payments.
Nothing herein shall be construed as limiting or otherwise modifying the rights of the
Owners under this Resolution, nor shall anything herein impair the absolute and
unconditional right of the Owner of each Bond to receive payment of the principal
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thereof and premium, if any, and interest thereon at the times provided in that Bond
and in this Resolution, and to institute suit for the enforcement of any such payment.
6.5 Absolute Obligation of City. Nothing in any other provision of this
Resolution, or in the Bonds, shall affect or impair the obligation of the City, which is
absolute and unconditional, to pay the principal of and premium, if any, and interest
on the Bonds to the respective Owners of the Bonds at the times stated therein, but
only out of the sources provided for the payment of the Bonds in this Resolution, or
affect or impair the rights of such Owners, which are also absolute and unconditional,
to enforce such payment by virtue of the contract embodied in. the Bonds.
6.6 Teiinination of Proceedings. In case any proceedings taken by any one or
more Owners on account of any Event of Default shall have been discontinued or
abandoned for any reason or shall have been determined adversely to the Owners,
then in every such case the City, the Borrower and the Owners, subject to any
determination in such proceedings, shall be restored to their former positions and
rights hereunder, severally and respectively, and all rights, remedies, powers and
duties of the City, the Borrower and the Owners shall continue as though no such
proceedings had been taken.
6.7 Remedies Not Exclusive. No remedy herein conferred upon or reserved to
the Owners of the Bonds is intended to be exclusive of any other remedy or remedies,
and each and every such remedy, to the extent permitted by law, shall be cumulative
and in addition to any other remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.
6.8 No Waiver of Default. No delay or omission of any Owner of the Bonds to
exercise any right or power arising upon the occurrence of any default shall impair
any such right or power or shall be construed to be a waiver of any such default or an
acquiescence therein, and every power and remedy given by this Resolution to the
Owners may be exercised from time to time and as often as may be deemed expedient.
ARTICLE VII
DISCHARGE OF OBLIGATIONS TO OWNERS
7.1 Defeasance of Bonds.
(1) In the event that, in accordance with a refunding or defeasance
plan, the City shall issue refunding bonds or have money available from any other
lawful source to pay the principal of and premium, if any, and interest on the Bonds
or such portion thereof included in the refunding or defeasance plan as the same
become due and payable and to refund or defease such then Outstanding Bonds and
to pay the costs of refunding or defeasance, and shall have set aside irrevocably in a
special fund for and pledged to such payment, refunding or defeasance, money and /or
Governmental Obligations that are not subject to redemption prior to maturity
sufficient in amount, together with known earned income from the investments thereof
but without regard to reinvestment thereof, to make such payments and to accomplish
the refunding or defeasance as scheduled (the "trust account and shall make
irrevocable provisions for redemption of such Bonds, if applicable, then in that case all
right and interest of the Owners of the Bonds to be so retired, refunded or defeased
(collectively, the "defeased Bonds in the covenants of this Resolution, in the Loan
Agreement, and in the funds and accounts obligated to the payment of such defeased
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payment of the pnnctpai or and premium, a any, anu uiierWSi un uie ucLea6eu Duiiu�
from the trust a.ccount, provided however, that such rights as exist with respect to
payment, exchange and transfer of such Bonds under the pertinent provisions of this
Resolution shall continue in full force and effect. The City shall include in the
refunding or defeasance plan such provisions as the City deems necessary for the
random selection of any defeased Bonds that constitute less than all of a particular
maturity of the Bonds, for notice of the defeasance to be given to the Owners of the
defeased Bonds and to such other Persons as the City shall determine, and for any
required replacement of Bond certificates for defeased Bonds. After the establishing
and full funding of the trust account, the defeased Bonds shall be deemed to be
discharged and the Borrower then may apply any money in any other fund or account
established for the payment or redemption of the defeased Bonds to such lawful
purposes as it shall determine, subject only to the rights of the Owners of any other
Bonds then Outstanding.
(2) In connection with such defeasance, the Borrower shall provide to the
Owners at the expense of the Borrower (a) an opinion of Bond Counsel stating that the
defeased Bonds are no longer deemed Outstanding under this Resolution and that the
defeasance and, if applicable, refunding will not adversely affect the exclusion from
gross income for federal income tax purposes of interest on the Bonds or, if applicable,
the refunding bonds; (b) verification by an Accountant of the conformity of the trust
account with the provisions of this Section; (c) an escrow agreement relating to the
trust account (the "Escrow Agreement (d) an opinion of counsel (i) regarding the
validity and enforceability of the Escrow Agreement; (ii) that the deposit under the
Escrow Agreement will not constitute a voidable preference or transfer under the federal
Bankruptcy Code or any other similar state or federal statute in the event the City or the
Borrower becomes a debtor within the meaning of the federal Banlcuptcy Code or comes
within the protection of such similar state or federal statute (each, an "Insolvency Event");
and (iii) in an Insolvency Event, the deposit under the Escrow Agreement will not be
treated as part of the estate of the City or the Borrower.
(3) The Escrow Agreement shall provide that; (a) any substitution of
securities shall require a verification by an Accountant; and (b) the City and the
Borrower will not exercise any optional redemption of Bonds secured by the Escrow
Agreement or any other redemption other than mandatory sinking fund redemptions
unless the right to make any such redemption has been expressly reserved in the
Escrow Agreement.
7.2 Discharge of Resolution. The obligations of the City hereunder shall
remain in effect with respect to all Bonds until the principal of and premium, if any,
and interest on all Bonds shall have been paid in full or discharged, notwithstanding
that the lien of this Resolution may have been discharged with respect to some of the
Bonds pursuant to Section 7.1.
7.3 Nonpresentment of Bonds. In the event any Bond shall not be presented
for payment when the principal thereof becomes due, either at maturity or at the date
fixed for redemption thereof or otherwise, if funds sufficient to pay the principal
thereof and premium, if any, and interest accrued thereon to such date shall have
been made available to the Registrar for the benefit of the Owner thereof, the Registrar
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Resolution No. 2010 -37
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shall hold such principal, premium and interest, without liability to the Owner for
further interest thereon, for the benefit of the Owner of such Bond, for a period of
three years from the date such Bond shall have become due, either at maturity or
upon earlier redemption or otherwise, and thereafter the Registrar shall remit such
funds to the City unless otherwise required by Chapter 34.45 of the Alaska Statutes.
In the event State law should require other action to be taken by the Registrar, then
the Registrar shall comply with that law and this Section shall be deemed amended.
After remittance as provided herein, the Registrar's liability for payment to the Owner
of such Bond shall forthwith cease, terminate and be completely discharged and
thereafter the Owner shall be restricted exclusively to his or her rights of recovery
provided under Chapter 34.45 of the Alaska Statutes.
Unclaimed money shall be invested only upon the direction of the City and only
in short -term Governmental Obligations. In the absence of written directions from the
City, the Registrar shall hold such unclaimed money uninvested.
ARTICLE VIII
AMENDMENT OF RESOLUTION
8.1 Amendments to Resolution.
(1) This Resolution shall not be supplemented or amended in any
respect subsequent to the initial issuance of the Bonds, except as provided in and in
accordance with and subject to the provisions of this Section.
(2) The City may from time to time and at any time, without the
consent of or notice to the Owners, except as set forth below in this subsection (2),
adopt Supplemental Resolutions for the following purposes:
(a) to cure any formal defect, omission, inconsistency or
ambiguity in this Resolution in a manner not adverse to the Owner of any Bond;
(h) to confer upon the Owners of the Bonds any additional
rights, remedies, powers, authority, security, liabilities or duties which may lawfully
be granted, conferred or imposed and which are not contrary to or inconsistent with
this Resolution as theretofore in effect;
(c) to add to the covenants and agreements of, and limitations
and restrictions upon, the City in this Resolution other covenants, agreements,
limitations and restrictions to be observed by the City which are not contrary to or
inconsistent with this Resolution as theretofore in effect;
(d) to confirm, as further assurance, any pledge under, and the
subjection to any claim, lien or pledge created or to be created by, this Resolution of
any other money, securities or funds;
(e) to comply with any future federal law, regulation or
interpretation to prevent the occurrence of an event that in the opinion of Bond
Counsel would lead to a Determination of Taxability;
(f) to make such changes as are elsewhere expressly permitted
by this Resolution; and
(g) to modify, alter, amend or supplement this Resolution in
any other respect which is not materially adverse to the Owners of the Bonds and
which does not involve a change described in subsection (3) of this Section.
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Before the City shall adopt any such Supplemental Resolution pursuan t to this
subsection or simultaneously with such adoption, there shall be or have been
delivered to the City an opinion of Bond Counsel, stating that such Supplemental
Resolution is authorized or permitted by this Resolution and will, upon the execution
and delivery thereof, be valid and binding upon the City in accordance with its terms
and will not cause the interest on the Recovery Zone Facility Bonds to be included in
gross income for federal income tax purposes.
Notwithstanding any provision in this subsection (2) of this Section to the
contrary, if one Owner holds all of the Bonds then Outstanding, the consent and
approval of such Owner must be obtained prior to the adoption of any Supplemental
Resolution pursuant to this subsection (2).
(3) (a) Except for any Supplemental Resolution entered into
pursuant to subsection (2) of this Section, subject to the terms and provisions
contained in this subsection and not otherwise, the Owners of not less than a. majority
in aggregate principal amount of Bonds then Outstanding shall have the right from
time to time to consent to and approve the adoption by the City of any Supplemental
Resolution deemed necessary or desirable by the City for the purpose of modifying,
altering, amending, supplementing or rescinding, in any particular, any of the terms
or provisions contained in this Resolution; and except that, unless approved in writing
by the Owners of all Bonds then Outstanding, nothing contained in this Section shall
permit, or be construed as permitting:
(i) a change in the times, amounts or currency of
payment of the principal of or premium, if any, or interest on any Outstanding Bond,
or a reduction in the principal am.ount or redemption price of any Outstanding Bond
or a change in the method of redemption or redemption price of any Outstanding
Bond, or
Bond, or
(ii) a preference or priority of any Bond over any other
(iii) a reduction in the aggregate principal amount of
Bonds, the consent of the Owners of which is required for any such Supplemental
Resolution, or
(iv) the modification of any of the provisions of this
Section.
(b) If at any time the City shall desire to adopt any Supplemental
Resolution for any of the purposes of this subsection, the City shall cause notice of the
proposed Supplemental Resolution to be given by first class mail, postage prepaid, to
all Owners of the then Outstanding Bonds. Such notice, which shall be prepared by
or on behalf of the City, shall briefly set forth the nature of the proposed. Supplemental
Resolution and shall state that a copy thereof is on file at the office of the Registrar for
inspection by all Owners of Outstanding Bonds.
(c) Within four weeks after the date of the mailing of such notice, the
City may adopt such Supplemental Resolution substantially in the form described in
such notice, but only if there shall have first been or is simultaneously delivered to the
City (i) the required consents, in writing, of the Owners of the Bonds, and (ii) an
opinion of Bond Counsel, stating that such Supplemental Resolution is authorized or
permitted by this Resolution and, upon the execution and delivery thereof, will be valid
and binding upon the City in accordance with its terms and will not cause interest on
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the Recovery Zone Facility Bonds to be includable in gross income for federal income
tax purposes.
(d) if the Owners of not less than the percentage of Bonds required by
this subsection shall have consented to and approved the execution and delivery
thereof as provided herein, no Owner of any Bond shall have any right to object to the
adoption of such Supplemental Resolution, or to object to any of the terms and
provisions contained therein or the operation thereof, or in any manner to question
the propriety of the execution thereof, or to enjoin or restrain the City from adopting
the same or from taking anv action pursuant to the provisions thereof. Any written
consent to a permitted amendment may be embodied in and evidenced by one or any
number of concurrent written instruments of substantially similar tenor signed by
Owners in person or by an agent duly appointed in writing, and such consent shall
become effective when such instrument or instruments are delivered to the City.
(4) Proof of the execution of any such consent or of a writing appointing any
such agent shall be sufficient for any purpose and shall be conclusive in favor of the
City if made in the following manner: the fact and date of the execution by any Person
of any such consent or appointment may be proved by the affidavit of any witness of
such execution or by the certificate of any notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the Person signing such consent
or appointment acknowledged to him the execution thereof. The fact and date of
execution of such consent or appointment may also be proved in any other manner
which the City may deem sufficient; but the City may nevertheless, in its discretion,
require further proof in cases where it deems further proof desirable. Any consent by
the Owner of any Bond shall bind any future Owner of the same Bond with respect to
any Supplemental Resolution executed by the City pursuant to such consent.
(5) Upon the execution and delivery of any Supplemental Resolution
pursuant to the provisions of this Section, this Resolution shall be, and be deemed to
be, modified and amended in accordance therewith, and the respective rights, duties
and obligations under this Resolution of the City and all Owners of Bonds then
Outstanding shall thereafter be determined, exercised and enforced under this
Resolution subject in all respects to such modifications and amendments.
8.2 Notice of Amendment. The City shall promptly notify the Owners of all
amendments made to this Resolution.
8.3 Notice to Borrower: Rights of Borrower Unaffected.
(1) The City shall cause notice of the proposed adoption of any
Supplemental Resolution, together with a copy of the proposed Supplemental
Resolution, to be mailed to the Borrower and the Bank at least 30 days prior to the
proposed date of execution and delivery of any such Supplemental Resolution;
provided, that the Borrower and the Bank may waive such notice in writing delivered
to the City.
(2) Anything herein to the contrary notwithstanding, so long as the
Borrower is not in default under any of its obligations hereunder or under the Loan
Agreement, a Supplemental Resolution under this Article which, in the opinion of
counsel to the Borrower, delivered to the City, adversely affects the rights of the
Borrower under the Loan Agreement or this Resolution, so long as the Loan Agreement
is in effect, shall not become effective unless and until the Borrower and the Bank
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shall have consented in writing to the execution and delivery of such Supplemental
Resolution.
ARTICLE IX
MODIFICATION OF LOAN AGREEMENT
9.1 Modification of Loan Agreement without Consent of Owners. After the
Date of Issue and subject to the conditions and restrictions of this Resolution, the City
and the Borrower may consent to and execute such supplements or amendments to
the Loan Agreement as may or shall by them be deemed necessary or desirable and as
they all shall approve, from time to time and at any time, without the consent of, but
with prior notice to, any Owner except as set forth below in this Section, for any one or
more of the following purposes;
(a) To add covenants and agreements to the Loan Agreement for the
protection of Owners; and /or
(b) To cure any ambiguity or correct any defect or inconsistent
provision in the Loan Agreement; and /or
(c) To make subject to the lien of the Bonds additional revenues,
properties or collateral; and /or
(d) To preserve the exclusion of the interest on the Bonds from gross
income for federal income tax purposes and preserve the right of the City to continue
to issue bonds, debts or other obligations of any nature the interest income on which
is likewise excluded from gross income for federal income tax purposes; and /or
(e) To make any other change which is not to the prejudice of the
Owners of Outstanding Bonds.
Notwithstanding any provision to this Section 9.1 to the contrary, if one Owner
holds all of the Bonds then Outstanding, the consent and approval of such Owner
must be obtained prior to the execution and delivery of any supplements or
amendment to the Loan Agreement.
9.2 Modification of Loan Agreement with Consent of Majority of Owners.
Except for the supplements and amendments necessary or desirable to accomplish the
purposes set forth in Section 9.1, neither the City nor the Borrower shall consent to
any other supplement or amendment to the Loan Agreement after the execution
thereof without the approval of both of them and the prior written consent of the
Owners of not less than a majority in aggregate principal amount of Bonds then
Outstanding: provided, that no such amendment, change or modification shall ever
affect the unconditional obligation of the Bon to make Loan Payments as they
become due and payable. If the Owners of not less than a majority in aggregate
principal amount of Bonds then Outstanding shall have consented to and approved
the execution thereof as provided herein, no Owner shall have any right to object to
any of the terms and provisions contained therein, or in the operation thereof, or in
any manner to question the propriety of the execution thereof, or to enjoin or restrain
the City or the Borrower from executing the same or from taking any action pursuant
to the provisions thereof.
9.3 Modification of Loan Agreement with Consent of All Owners. Without the
approval of the City and the Borrower and the prior written consent of the Owners of
all the Outstanding Bonds, no supplement or amendment to the Loan Agreement shall
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Resolution No. 2010 -37
Page 18 of 24
change the terms of redemption or maturity of the principal of any Bonds or of any
installment of interest on any Bonds; shall deprive any Owner of any Outstanding
Bond of the lien or right created by this Resolution or the Loan Agreement; shall give
priority to any Bond over any other Bond; shall reduce or extend the due date of any of
the Loan Payments; or shall amend this Section.
9.4 Opinion of Bond Counsel. No amendments shall be made to the Loan
Agreement unless the City and the Bank shall have received an opinion of Bond
Counsel to the effect that the amendment is authorized or permitted by this
Resolution and the Loan Agreement, and will not cause the interest on the Recovery
Zone Facility Bonds to be included in gross income for federal income tax purposes.
ARTICLE X
MISCELLANEOUS
10.1 Severability. If any provision of this Resolution shall be held or deemed
to be or shall, in fact, be inoperative or unenforceable as applied in any particular case
in any jurisdiction or jurisdictions or in all jurisdictions or in all cases because it
conflicts with any provisions of any constitution or statute or rule of public policy, or
for any other reason, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or circumstance,
or of rendering any other provision or provisions contained. herein invalid, inoperative
or unenforceable to any extent whatsoever. The invalidity of any one or more phrases,
sentences, clauses or paragraphs contained in the Resolution shall not affect the
remaining portions of the Resolution or any part thereof.
10.2 Payments Due on Saturdays, Sundays and Holidays. In any case where
the date of payment of principal of the Bonds, whether at the stated maturity thereof,
on a redemption date or otherwise, or payment of premium, if any, or interest thereon,
is not a Business Day, then such payment need not be made on such date but may be
made on the next succeeding Business Day with the same force and effect as if made
on the date of maturity or redemption or the date such interest was due, as the case
may be, and no interest shall accrue for the period from and after such date.
10.3 Successor Is Deemed Included in All References to Predecessor.
Whenever in this Resolution the City or the Borrower is named or referred to, such
reference shall be deemed to include the successors or assigns thereof, and all the
covenants and agreements contained in this Resolution by or on behalf of the City
shall bind and inure to the benefit of the respective successors and assigns thereof
whether so expressed or not.
10.4 Limitation of Rights. Nothing expressed or implied in this Resolution or
in the Bonds is intended or shall be construed to give to any Person other than the
City and the Owners any legal or equitable right, remedy or claim under or in respect
of this Resolution or any covenant, condition or provision contained herein or in the
Bonds, and all such covenants, conditions and provisions are and shall be held to be
for the sole and exclusive benefit of the City and the Owners.
10.5 Waiver of Notice. Except as otherwise provided herein, whenever in this
Resolution the giving of notice by mail or otherwise is required, the giving of such
notice may be waived in writing by the Person entitled to receive such notice and in
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Resolution No. 2010 -37
Page 19 of 24
any such case the giving or receipt of such notice shall not be a condition precedent to
the validity of any action taken in reliance upon such waiver.
10.6 Notices. All notices to Owners shall be given by first class mail. Any
notice to or demand upon the following parties shall be given by registered or certified
mail, return receipt requested, as follows, or to such other address as is specified by
the City or the Borrower to the other in writing:
If to the City, to: City of Kenai
210 Fidaigo Avenue
Kenai, Alaska 99611
Attn: City Manager
If to the Borrower, to: Double Glacier Builders, LLC
425 G Street, Suite 210
Anchorage, Alaska 99501
Attn: Manager
If to the Bank, to: First National Bank Alaska
P.O. Box 100720
Anchorage, Alaska 99510 -0720
Attn: Michael Martin
10.7 Waiver of Personal Liability. No council member, officer, agent or
employee of the City nor any person executing the Bonds shall be individually or
personally liable for the payment of the principal of or premium, if any, or interest on
the Bonds or be subject to any personal liability or accountability by reason of the
issuance thereof; but nothing contained herein shall relieve any such council member,
officer, agent, employee or other person from the performance of any official duty
provided by law or by this Resolution.
10.8 Applicable Provisions of Law This Resolution shall be governed by and
construed in accordance with the laws of the State of Alaska without regard to the
conflict or choice of laws provisions thereof.
10.9 Authorization of Bond Documents. The form and content of the Loan
Agreement hereby are in all respects authorized, approved and confirmed, and the City
Manager or her designee hereby is authorized, empowered and directed to execute and
deliver to the counterparties said documents on behalf of the City, in substantially the
form and content now before this meeting but with such changes, modifications,
additions and deletions therein as shall to him seem necessary, desirable or
appropriate, the execution thereof to constitute conclusive evidence of approval of any
and all changes, modifications, additions or deletions therein from the form and
content of said documents now before this meeting, and from and after the execution
and delivery of said documents, the City Manager and the Finance Director, and their
respective designees, each hereby is authorized, empowered and directed to do all acts
and things and to execute all documents as may be necessary to carry out and comply
with the provisions of said documents as executed.
1.0.10 Authority of Officers. The City Manager and the Finance Director, and
their respective designees, and any other officer of the City, each hereby is authorized
to execute and deliver for and on behalf of the City any and all additional certificates,
documents, opinions or other papers and perform all other acts as they may deem
necessary or appropriate in order to implement and carry out the intent and purposes
of this Resolution.
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rage 4U 01
10.11 Effective Date. This resolution shall become effective upon adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: 7
PAT PORTER, MAYOR
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R -.1
FORM OF BOND
CITY OF KENAI, ALASKA
REVENUE BONDS, 2010
(DOUBLE GLACIER BUILDERS, LLC PROJECT)
DATE:
REGISTERED OWNER: FIRST NATIONAL BANK ALASKA
PRINCIPAL AMOUNT:
The City of Kenai, Alaska (the "City a home rule city and municipality of the
State of Alaska (the "State for value received, promises to pay to the Registered Owner
named above, or registered assigns (the "Registered Owner but solely from the sources
and in the manner referred to herein, the principal amount determined as provided
herein, which shall not exceed the amount shown above, together with interest on said
principal sum from the date hereof to 1, 2011 at the rate of
percent and thereafter at a rate per annum determined as provided in the Loan
Agreement dated the date hereof (the "Loan Agreement between the City and Double
Glacier Builders, LLC (the "Borrower Interest only shall be payable on the first day of
each month commencing 1, 2010, until 1, 2011. Thereafter, this
Bond shall be payable in 240 equal installments of principal, plus accrued interest,
payable on the first day of each month until 1, 2031, when the remaining
principal of this Bond, plus accrued interest, shall be due and payable in full. Interest
shall be computed on the basis of a 360 -day year consisting of twelve 30 -day months.
Principal and interest shall be paid in any coin or currency o f th Unit Stat
of America which, at the time of payment, is legal tender for the payment of public and
private debts. The principal or redemption price of any Bond shall be payable (i) while
the provisions of the Loan Agreement so provide, directly to the Owner, and (ii) at all
other times, upon surrender of such Bond at the office of the City Finance Director
(the "Registrar in Kenai, Alaska. Interest on this Bond on each Interest Payment
Date in respect thereof shall be payable (i) while the provisions of the Loan Agreement
so provide, directly to the Owner, and (ii) at all other times, by check mailed to the
address of the person in whose name that Bond is registered at the close of business
on the Record Date for such interest as such address shall appear in the Bond
Register; provided that at the written request of the owner of at least $1,000,000
aggregate principal amount of Bonds received by the Registrar at least one Business
Day before the corresponding Record Date, interest accrued on the Bonds will be
payable by wire transfer within the United States in immediately available funds to the
bank account number of such owner specified in such request; and provided further
that interest payable at maturity (or redemption) shall be paid only upon presentation
and surrender of such Bond.
THE BONDS ARE SPECIAL LIMITED OBLIGATIONS OF THE CITY AND DO NOT
REPRESENT OR CONSTITUTE A DEBT OR PLEDGE OF THE FAITH AND CREDIT OF
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EXHIBIT A
FORM OF BOND
Page 2 of 4
THE CITY, THE STATE OF ALASKA, OR ANY POLITICAL SUBDIVISION THEREOF,
AND WILL NOT BE SECURED BY AN OBLIGATION OR PLEDGE OF ANY MONEYS
RAISED BY TAXATION AND THE BONDS DO NOT CONSTITUTE OR GIVE RISE TO A
PECUNIARY LIABILITY OF THE CITY OR A CHARGE AGAINST ITS GENERAL CREDIT
OR TAXING POWERS. THE BOND SERVICE CHARGES ON THE BONDS WILL BE
PAYABLE SOLELY FROM THE REVENUES PLEDGED AND ASSIGNED TO SECURE
PAYMENT THEREOF BY THE RESOLUTION
This Bond is one of a duly authorized series of bonds of the City of Kenai,
Alaska, designated "Revenue Bonds, 2010 (Double Glacier Builders, LLC Project)" (the
"Bonds issued under Resolution Number 2010 of the City, adopted on June 16,
2010 (the "Resolution aggregating in principal amount and issued for
the purpose of making a loan under a Loan Agreement to pay for the acquisition,
construction, and equipping of a commercial building located in Kenai, Alaska.
Reference is made to the Resolution for a more complete description of the rights,
duties and obligations of the City and the Owners, and the terms and conditions upon
which the Bonds are issued and secured. All terms used herein with initial
capitalization where the rules of grammar or context do not otherwise require shall
have the meanings as set forth in the Resolution. Each Owner assents, by its
acceptance hereof, to all of the provisions of the Resolution.
The Borrower is required by the Loan Agreement to make payments in the
amounts and at the times necessary to pay the principal of and interest and any
premium on the Bonds. To provide for such payments, the City has absolutely and
irrevocably assigned to the Bank all right, title and interest in and to the Loan
Agreement (with certain reservations and exceptions noted in Article X of the Loan
Agreement).
The Bonds are subject to redemption prior to maturity only as provided herein.
Redemption at Borrower's Option. The Bonds are subject to redemption
at the option and direction of the Borrower as provided in the Loan Agreement.
Extraordinary Redemption. The Bonds are subject to extraordinary
redemption prior to maturity, as a whole or in part as described below, at a
redemption price equal to the principal amount thereof plus accrued interest to the
date fixed for redemption,
(1) as a whole or in part, on the first date for which timely notice of
redemption may be given, with Insurance Proceeds or a Condemnation Award (and, if
necessary, other money legally available therefor), if so required by Section 6.02 of the
Loan Agreement,
(2) as a whole, on the first Interest Payment Date for which timely
notice of redemption may be given, at the option of the City, upon an occurrence of an
event of default under the Loan Agreement, or
(3) only in the case of Bonds that are Recovery Zone Facility Bonds,
as a whole or in part, on the first date for which timely notice of redemption can be
given upon receipt by the Bank of an opinion of Bond Counsel to the effect that such
redemption is required to prevent a Determination of Taxability.
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EXHIBIT A
FORM OF BOND
Page 3 of 4
The Bonds are issuable only as fully registered bonds. This Bond is
transferable by the registered owner hereof or his duly authorized attorney at the office
of the Registrar, upon surrender of this Bond, accompanied by a duly executed
instrument of transfer in form and with guaranty of signature satisfactory to the
Registrar, subject to such reasonable regulations as the Borrower, the City or the
Registrar may prescribe. Upon any such transfer, a new Bond or Bonds in the same
aggregate principal amount will be issued to the transferee. Except as set forth in this
Bond and as otherwise provided in the Resolution, the person in whose name this
Bond is registered shall be deemed the owner hereof for all purposes, and the City, the
Borrower and the Registrar shall not be affected by any notice to the contrary.
The Resolution permits certain amendments or supplements to the Agreement
and the Resolution not prejudicial to the Owners to be made without the consent of or
notice to the Owners, and other amendments or supplements thereto to be made with
the consent of the Owners of not less than a majority in aggregate principal amount of
the Bonds then outstanding.
The Owners have only those remedies provided in the Resolution.
The Bonds shall not constitute the personal obligation, either jointly or
severally, of the members of the city council of the City or of any other officer of the
City.
It is certified and recited that there have been performed and have happened in
regular and due form, as required by law, all acts and conditions necessary to be done
or performed by the City or to have happened preceden.t to and in the issuing of the
Bonds in order to make them legal, valid and binding obligations of the City, and that
the Bonds do not exceed or violate any constitutional or statutory limitation.
IN WITNESS WHEREOF, the City of Kenai, Alaska has caused this Bond to be
executed on its behalf by the manual or facsimile signature of its iviayor and its
corporate seal (or a facsimile thereof) to be impressed or otherwise reproduced hereon
and attested by the manual or facsimile signature of its Clerk, all as of the date shown
above.
ATTEST:
Clerk
[SEAL]
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Mayor
EXHIBIT A
FORM OF BOND
Page 4 of 4
ASSIGNMENT
For value received, the undersigned sells, assigns and transfers to (print or
typewrite name, address, zip code and Social Security number or other tax identification
number of Transferee)
this Bond and irrevocably constitutes and appoints
attorney to transfer this Bond on the Bond Register, with full power of substitution in the
premi.ses.
Dated:
Signature Guaranteed:
Notice: The assignor's signature to this assignment must correspond with the name as
it appears upon the face of this Bond.
-91-
Ehc ci l y of
KENAI
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: June 2, 2010
"Village with a Past, C# with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
Re: Resolution 2010 -37 Authorizing the Sale of Revenue Bonds to support economic
development within the City.
Resolution 2010 -37 is the final step in the process of assisting Double Glacier Builders, LLC
(formerly identified as Pfeffer Development Inc.) with a planned development in the City of
Kenai. As part of the American Recovery and Reinvestment Act (ARRA) the Recovery Zone
Facility Bond program was created allowing private entities to receive conduit funding through
sponsoring public entities at tax exempt financing rates. Private entities typically borrow at
taxable interest rates causing the cost of financing to typically be 1.5% higher.
As the conduit for this financing, the City of Kenai will immediately assign all interest in the
debt to First National Bank. The effect will be assuring the City of Kenai and its taxpayers in no
way are obligated for the debt once the process is complete.
Resolution 2010 -37 authorizes the City to issue revenue bonds for the project and authorizes the
City Manager and Finance Director to determine the appropriate terms of the financing.
—92—
F: \50530314 \00129946. DOC
LOAN AGREEMENT
Between
CITY OF KENAI, ALASKA
and
DOUBLE GLACIER BUILDERS, LLC
Dated as of July 2010
CITY OF KENAI, ALASKA
REVENUE BONDS. 2010
(DOUBLE GLACIER BUILDERS, LLC PROJECT)
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TFK DRAFT 06/09/10
F: \50530314 \00128946.DOC
TABLE OF CONTENTS
-i-
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Page
ARTICLE I DEFINITIONS AND INTERPRETATION
Section 1.01 Definitions 2
Section 1.02 Resolution of Conflicting Provisions 4
Section 1.03 Governing Law; Venue 4
ARTICLE II REPRESENTATIONS AND WARRANTIES 4
Section 2.01 Representations and Warranties of the City 4
Section 2.02 Representations and Warranties of the Borrower. 5
ARTICLE III ISSUANCE OF BONDS; LOAN TO THE BORROWER; LOAN
PAYMENTS; LIMITATION OF LIABILITY 6
Section 3.01 Authorization to Issue Bonds 6
Section 3.02 Loan to the Borrower; Payment of Project Costs 6
Section 3.03 Loan Payments 7
Section 3.04 Prepayment of Loan Payments at Borrower's Option. 7
Section 3.05 Payments Required Upon Acceleration, 7
Section 3.06 Computation and Payment of Rebate Amount. 7
Section 3.07 Payments to City 8
Section 3.08 Nature of Borrower's Obligations; Limitation of Liability. 8
ARTICLE IV SECURITY.. 9
Section 4.01 Security Interests 9
Section 4.02 Security Agreement. 9
ARTICLE V APPLICATION OF LOAN PROCEEDS 9
Section 5,01 Application of Proceeds 9
ARTICLE VI INSURANCE; DAMAGE, DESTRUCTION AND CONDEMNATION 9
Section 6.01 htsurance. 9
Section 6.02 Damage, Destruction, Condemnation or Insured Loss of Title. 10
Section 6.03 Title insurance. 11
ARTICLE VII OTHER COVENANTS OF THE BORROWER 11
Section 7.01 Maintenance of Existence. 11
Section 7.02 RESERVED 11
Section 7.03 Compliance with Laws. 1 I
Section 7.04 Taxes and Other Governmental Charges. 11
Section 7.05 Independent Audit 11
Section 7.06 Notice of Default 11
Section 7.07 Tax Exempt Status of Series ABonds 11
Section 7.08 indemnification. 12
Section 7.09 Borrower's Performance under Resolution. 13
TFK DRAFT 06/09/10
ARTICLE VIII EVENTS OF DEFAULT; REMEDIES 13
Section 8.01 Events of Default. 13
Section 8.02 Remedies on Default 13
Section 8.03 No Remedy Exclusive 14
Section 8,04 No Implied Waiver. 14
Section 8.05 Agreement to Pay Attorneys' Fees and Expenses. 14
ARTICLE IX MISCELLANEOUS 15
Section 9.01 Notices. 15
Section 9.02 Binding Effect 15
Section 9.03 Severability. 15
Section 9.04 Amendments, 15
Section 9.05 RESERVED. 15
Section 9.06 Limitation of City Liability 15
Section 9.07 Waiver of Breach. 15
Section 9.08 All Obligations Due on Business Days 16
Section 9,09 City Observance of Resolution Covenants and Terms. 16
Section 9.10 No Rights Created in Third Parties 16
Section 9,11 Time of Essence 16
Section 9.12 Benefit of Bank 16
Section 9.13 References to Bonds Ineffective After Payment 16
ARTICLE X ASSIGNMENT OF CITY'S RIGHTS 16
Exhibit A
Exhibit B
F: \505303 \41001 2 8 94 6. DOC
Authorized Investments
Form of Draw Request
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LOAN AGREEMENT
THIS LOAN AGREEMENT (this "Agreement is made as of the first day of June,
2010, by and between the CITY OF KENAI, ALASKA (the "City a home rule city and
municipality of the State of Alaska (the "State and DOUBLE GLACIER BUILDERS, LLC,
an Alaska limited liability company, and its permitted successors or assigns (the `Borrower
W[TNESSETH
WHEREAS, Section 6 -5 of the Kenai City Charter authorizes the City to borrow money
and to issue bonds or other evidence of indebtedness for the purpose of promoting economic
development in and adjacent to the City, provided that such bonds shall not be repayable from
taxes levied by the City nor be a charge against the general credit of the City; and
WHEREAS, the Borrower has requested that the City assist it with providing financing
for the acquisition, construction and equipping of an approximately 2,500 square foot
commercial building located at Lot 3, Baron Park 2008 Replat, Kenai Alaska (the "Project and
WHEREAS, the City has determined that the Project serves a public purpose of the City
by promoting economic development in the City, and has determined this purpose will be
realized by the issuance of its Revenue Bonds, 2010 (Double Glacier Builders, LLC Project) (the
"Bonds in the aggregate principal amount not to exceed 31,700,000, and lending the proceeds
of the .Bonds to the Borrower to provide all or part of the funds required to accomplish the
Project; and
WHEREAS, the Bonds will be secured in part by a lien against and security interest in
the Project; and
WHEREAS, this Agreement will require the Borrower to make or cause to be made
payments (the "Loan Payments in amounts and at times sufficient to pay the principal of and
interest on the Bonds when due pursuant to their terms or upon the redemption, purchase or
acceleration thereof; and
WHEREAS, the City and the Borrower intend to restrict the use of the Project as
provided herein to comply with State law and to preserve the exclusion from gross income for
federal income tax purposes of interest on the Bonds; and
WHEREAS, in order to secure the payment of all the principal of and interest on the
Bonds, the rights of the City arising under this Agreement (with certain exceptions and
reservations described in Article X) will he assigned to First National Bank Alaska (the "Bank
without recourse; and
WHEREAS, the execution and delivery of this Agreement and the assignment of this
Agreement to the Bank and the issuance of the Bonds have been in all respects duly and validly
authorized by the City pursuant to Resolution No. 2010- adopted on June 16, 2010 (the
"Resolution
F 950530314100128946. DOC
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TFK DRAFT 06/09/10
NOR/, THEREFORE, in consideration of the mutual covenants hereinafter contained, the
City and the Borrower covenant and agree as follows, and the Borrower does hereby impose
upon the Project the following covenants, restrictions, charges and easements, which shall run
with the land and shall be binding and a burden upon the Project and all portions thereof, and
upon any purchaser, grantee or lessee of any portion of the Property and any other person or
entity having any right, title or interest therein and upon the respective heirs, executors,
administrators, devisees, successors and assigns of any purchaser, grantee or lessee of any
portion of the Property and any other person or entity having any right, title or interest therein,
for the length of time that this Agreement shall be in full force and effect:
ARTICLE 1
DEFINITIONS AND INTERPRETATION
Section 1.01 Definitions. Unless otherwise expressly provided herein or unless the
context clearly requires otherwise, the terms defined above shall have the meanings set forth
above and the following terms shall have the respective meanings set forth below for the
purposes hereof. Capitalized terms not defined herein shall have the meanings given them in. the
Resolution.
"Accountant" means any firm of independent certified public accountants selected by the
Borrower and reasonably acceptable to the Bank.
"Authorized Investments" means the investments set forth in Exhi.bit B.
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"Bank" means First National Bank. Alaska, a national banking association, its successors
and assigns.
"Bond Year" means, as to the first Bond Year, the period from the Date of Issue to
and, thereafter, the annual period ending on each year.
"Borrower Documents" means this Agreement, the Deed of Trust and the Tax
Agreement.
"Computation Period" means each period for which the Rebate Amount is determined.
"Condemnation Award" means the total condemnation proceeds actually paid by the
condemnor as a result of the condemnation of all or any part of the Project, less the actual costs
and expenses, including attorneys' fees, incurred by the Borrower or the City in obtaining such
award.
"Deed of Trust" means the Deed of Trust, Assignment of Rents and Leases and Security
Agreement dated the Date of Issue, under which the Borrower is grantor and the Bank is
beneficiary, conveying a lien on the real property and improvements constituting the Project, as
the saute may be amended, restated, supplemented or otherwise modified from time to time.
"Governmental Obligations" means (a) direct obligations of the United States of
America. (b) obligations unconditionally guaranteed by the United States of America and (c)
F: \50530314100126946. DCC
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TFK DRAFT 06/09/10
securities or receipts evidencing ownership interests in obligations or specified portions (such as
principal or interest) of obligations described in (a) or (b).
"Insurance Proceeds" means the total proceeds of casualty insurance actually paid or
payable in respect of insurance on all or any part of the Project, less the actual costs and
expenses, including attorneys' fees, incurred by the Borrower or the City in collecting such
proceeds.
"Permitted Encumbrances" has the meaning assigned that term in Section 1.1 of the Deed
of Trust.
"Rebate Amount" means an amount equal to the sum of (1) the excess of (a) the
aggregate amount earned from the Date of Issue on all nonpurpose investments in which cross
proceeds of the Series A Bonds are invested (not including income attributable to the excess
amount described in this clause (1)) over (b) the amount that would have been earned if the yield
on such nonpurpose investments (not including income attributable to the excess amount
described in this clause (1)) had been equal to the yield on the Series A Bonds plus (2) all
income attributable to the excess amount described in clause (1) whether or not that income
exceeds the yield on the Series A Bonds (i.e., whether or not that income was earned at a yield
higher than the yield on the Series A Bonds), all as determined in accordance with Section 148 of
the Code.
"Rebate Analyst" means the Person responsible for calculating the Rebate Amount.
"Revenues" means all accounts, receipts, revenues, payments, income, rents and other
moneys received by or on behalf of the Borrower from any source, all rights to receive the same,
and all proceeds (as such term is defined in the UCC) of the same, whether in the form of
accounts, cash proceeds, chattel paper, commodity accounts, contract rights, deposit accounts,
general intangibles, instruments, investment property, letter -of- credit right, noncash proceeds,
payment intangibles, promissory notes, supporting_ obligations (as each such term, other than
"contract rights," is defined in the UCC) and all income derived therefrom and all proceeds
thereof, whether now existing or hereafter created or acquired, which are legally available to or
on behalf of the Borrower to make the Loan Payments and to pay the Borrower's other
obligations under the Loan Agreement.
"Series A Bonds" means the Bonds that the City designates as such, which shall be tax
exempt Recovery Zone Facility Bonds.
"Series B Bonds" means the Bonds that the City designates as such, which shall be
Taxable Bonds.
"Tax Agreement" means the agreement of that name
Issue relating to the Bonds.
"Treasury Regulations" means the regulations of the
the Code.
F: 1505303 \4100128946. D 0 C
3
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of the Borrower dated the Date of
Department of the Treasury under
F: 505303\4 DOC
ARTICLE 11
REPRESENTATIONS AND WARRANTIES
4
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TFK DRAFT 06/091i0
Section 1.02 Resolution of Conflicting Provisions. If any of the provisions of this
Agreement (including the definitions of terns herein.) conflict in any respect with those in the
Resolution or the Deed of Trust and cannot he reconciled, the provisions in the Resolution shall
control over provisions in this Agreement and the Deed of Trust, and the provisions of this
Agreement shall control over provisions in the Deed of Trust.
Section 1.03 Governing Law; Venue. This Agreement is governed by and shall be
construed in accordance with the laws of the State and shall. be liberally construed so as to carry
out the purposes hereof. Except as otherwise required by applicable law, any action under this
Agreement shall be brought in the Superior Court of the State of Alaska, Third Judicial District,
in Anchorage, Alaska, or in the United States District Court for the District of Alaska in
Anchorage, Alaska.
Section 2.01 Representations and Warranties of the City. As of the date hereof, the
City hereby represents and warrants as follows:
(a) The City is a home rule city and municipality of the State, duly organized
and validly existing under and pursuant to the constitution and laws of the State, and has full
power and authority under the Constitution and laws of the State to enter into the transactions
contemplated by this Agreement and the Resolution, and to carry out its obligations hereunder
and thereunder. By the Resolution, the City has duly authorized the execution and delivery of
this Agreement, the sale, issuance, execution and delivery of the Bonds, and the performance of
its obligations under this Agreement and the Bonds.
(b) Neither the City's execution and delivery of the Bonds or this Agreement,
the City's consummation of the transactions contemplated on its part hereby and thereby, nor the
City's fulfillment of or compliance with the terms and conditions or provisions of the Bonds, the
Resolution or this Agreement conflicts with or results in the breach of any of the terms,
conditions or provisions of any constitutional provision or statute of the State or of any
agreement, instrument, judgment, order or decree to which the City is now a party or by which it
is bound, or constitutes a default under any of the foregoing, or results in the creation or
imposition of any lien, charge or encumbrance of any nature upon any property or assets of the
City prohibited under the terms of any such instrument or agreement.
(c) There is no litigation pending or, to the best of the City's knowledge,
threatened against the City questioning the City's execution, sale, issuance, delivery or payment
of the Bonds, or the City's execution, delivery or performance of its obligations under this
Agreement, the Resolution or the Assignment, or the organization, powers or authority of the
City, or the right of the officers of the City to hold their respective offices.
(d) Simultaneously herewith, the City's rights, title and interests in and under
this Agreement will be assigned and conveyed to the Bank (with certain reservations and
exceptions described in Article X), without recourse, as security for payment of the principal of
and interest on the Bonds.
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Section 2.02 Representations and Warranties of the Borrower. As of the date hereof,
the Borrower hereby represents and warrants as follows:
(a) The Borrower (I) is an Alaska limited liability company qualified and
authorized to do business in the State; (2) has full power and authority to acquire, construct,
equip and own the Project, to carry on its business as now conducted and to enter into the
Borrower Documents; and (3) has duly authorized by proper corporate action the execution and
delivery of the Borrower Documents. The Borrower Documents constitute or will upon their
execution constitute valid and legally binding obligations of the Borrower, enforceable in
accordance with their respective terms, except as enforcement may be limited by laws relating to
bankruptcy, insolvency, reorganization or moratorium or other similar laws affecting creditors'
rights generally.
(b) Neither the Borrower's execution and delivery of the Borrower
Documents and the Borrower's consummation of the transactions contemplated by the Borrower
Documents, nor the Borrower's fulfillment of or compliance with the provisions of the Borrower
Documents conflicts with, violates or will result in a breach of any of the terms, conditions or
provisions of the Borrower's articles of organization or operating agreement or any agreement,
instrument, statute, governmental rule or regulation, court order, judgment or decree to which the
Borrower is now a party or by which it or any of its property is bound, or constitutes a material
default under any of the foregoing that has not been waived or consented to in writing by the
appropriate party or parties, or results in the creation or imposition of any lien, charge, security
interest or encumbrance of any nature whatsoever upon any of the property or assets of the
Borrower prohibited under the terms of the Borrower's articles of incorporation or bylaws or any
such agreement, instrument, statute, governmental rule or regulation, court order, judgment or
decree. The Borrower will not execute any other agreement with provisions contradictory to, or
in opposition to, the provisions of any of the Borrower Documents.
(c) The proceeds of the Bonds to be lent to the Borrower hereunder, together
with any other funds to be contributed by the Borrower in accordance with this Agreement and
by other parties, will, to the best of the Borrower's knowledge, after due inquiry, be sufficient
and will not exceed the amount necessary to pay the costs of the Project and of issuing the
Bonds.
(d) There is no litigation pending or, to the best of the Borrower's knowledge,
after due inquiry, threatened against the Borrower affecting its ability to accomplish the Project
or the performance of its obligations under the Borrower Documents.
(e) No consent, approval, authorization or order of any governmental body is
required to be obtained by the Borrower for the execution and delivery of the Borrower
Documents, the fulfillment of and compliance with the provisions of the Borrower Documents,
or the accomplishment of the Project, except such as have already been obtained and except such
as may be required under federal and state securities laws in connection with the purchase of the
Bonds by the initial purchaser thereof.
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(f) The Borrower has or will have fee simple title to the real property and
absolute ownership of the personal property comprising the Project, and there are no liens or
encumbrances against the Project other than the Permitted Encumbrances.
(g) The information and documents submitted to the City in connection with
the issuance of the Bonds and the execution of the Borrower Documents and any supplements
thereto were true and complete on the date of submission and will be true and complete in all
material respects on the Date of Issue.
(h) All tax returns (federal, state and local) required to be filed by or on behalf
oi'the Borrower have been filed, and all taxes shown thereon to be due, including interest and
penalties, except such, if any, as are being actively contested by the Borrower, have been paid or
adequate reserves have been made for the payment thereof
(1) The average maturity of the Series A Bonds does not exceed 120% of the
reasonably expected wei economic life of the portions of the Project financed with
proceeds of the Series A Bonds.
(j) The proceeds of the Bonds will be devoted to and used with due diligence
solely for the purpose of paying, or reimbursing the Borrower for, costs of acquiring,
constructing and equipping the Project and costs of issuing the Bonds.
(k) No proceeds of the Series A Bonds will be used to finance or refinance
any airplane, skybox or other private luxury box, health club facility, facility primarily used for
gambling or store, the principal business of which is the sale of alcoholic beverages for
consumption off premises.
(1) The Borrower agrees to all tetn7s and provisions of the Resolution and
accepts each of its obligations expressed therein.
ARTICLE III
ISSUANCE OF BONDS; LOAN TO THE BORROWER; LOAN PAYMENTS;
LIMITATION OF LIABILITY
Section 3.01 Authorization to Issue Bonds. The City agrees to sell, issue and cause the
Bonds to be delivered to the initial purchaser thereof for the purpose of providing all or part of
the funds required to accomplish the Project and pay the costs of issuing the Bonds. The
Borrower hereby approves the sale, issuance and delivery of the Bonds and all the terms and
provisions of the Resolution, this Agreement and the Assignment, including the assignment to
the Bank, without recourse, of the City's rights, title and interests in and under this Agreement
(with certain exceptions and reservations noted in Article X).
Section 3.02 Loan to the Borrower; Payment of Project Costs.
(a) The City agrees to lend to the Borrower the principal sum of up to
51,700,000 derived solely from proceeds of the Bonds (the "Loan and the Borrower agrees to
borrow that sum from the City pursuant to this Agreement for the purpose of providing all or part
of the permanent financing for the Project.
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(b) The Borrower shall pay costs of the Project from proceeds of the Loan.
The Borrower shall submit a request in the form of Exhibit B attached hereto (each a "Draw
Request each time it seeks a disbursement from Loan proceeds for payment of costs of the
Project. The Project Completion Date shall be the date indicated as such in a certificate of an
Authorized Representative of the Borrower to the effect that Project Completion has occurred or,
if earlier, 1, 2011, or, if later, the date described in Section 6.02. "Project Completion"
means that all costs of completing the Project have been paid in full and the Borrower has
assumed occupancy of and commenced substantial operations in the Project.
(c) If the Borrower receives proceeds of a Condemnation Award or Insurance
Proceeds pursuant to Section 6.02 and the Borrower determines not to restore the Project, then
upon notice of such determination or, if sooner, 60 days after the receipt by the Borrower of such
funds, the Borrower shall apply such funds to redeem the Bonds to the extent of any such funds
on the first Interest Payment Date for which notice of redemption can be given as provided in the
Resolution.
(d) The City has no obligation hereunder to apply any money to the costs of
completing the Project except the proceeds of the Loan.
Section 3.03 Loan Payments. The Borrower agrees to repay the Loan, together with
interest thereon, in Loan Payments that shall be sufficient to pay in full all of the principal of and
premium, if any, and interest on the Bonds when the same shall come due, whether at maturity,
earlier redemption or acceleration. Pursuant to Article X hereof, the Borrower shall rnake all
Loan Payments directly to the Bank.
Section 3.04 Prepayment of Loan Payments at Borrower's Option. [The Borrower, at
its option, may pay the remaining balance of the Loan or any part thereof in advance at the times
and prices and after notice to the Bank in the manner provided in the Resolution and the Bonds.]
,Section 3,0_) Payments Required Upon Acceleration. In the event of acceleration of
payment of the principal of and interest on the Bonds, the Borrower shall pay to the City an
amount sufficient, together with other money in the Project Fund, to pay the entire principal of
and accrued interest on the Bonds to the date of payment.
Section 3.06 Computation and Payment of Rebate Amount,
(a) The Borrower shall determine or cause the Rebate Amount to be
determined by an Accountant or other qualified Person selected by the Borrower, in accordance
with Section 148 of the Code and applicable Treasury Regulations promulgated under
Section 148(0 of the Code, for each Computation Period on such determination date or dates as
may be permitted by Section 148 of' the Code. The Borrower shall pay all costs of calculating
Rebate Amounts, including the fees of the Rebate Analyst, if any. The City and the Bank may
rely conclusively upon the opinions, calculations, determinations, directions and advice of such
Accountant or other Person, copies of all of which opinions, calculations, determinations,
directions and advice shall he given to the City and the Bank.
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(b) The Borrower shall make the following payments to the United States
Treasury when and as indicated below (or on such other payment date or dates as may be
permitted by Section 148 of the Code):
(1) not later than the 60th day following the end of each fifth Bond
Year, an amount equal to 90% of the Rebate Amount for the Computation Period ending
immediately prior to the date of payment; and
(2) not earlier than the date of payment of the last Outstanding Bond
nor later than the 60th day thereafter, the amount, if any, which, when added to amounts
previously paid to the United States as Rebate Amounts, will equal 100 percent of the Rebate
Amount with respect to the Bonds.
(c) The Borrower shall retain all records of the source of and determination of
the Rebate Amounts and of the amounts paid to the United States Treasury pursuant to Section
3.06(b) for six years after the retirement of the last Outstanding Series A Bond, or such shorter
period as may be permitted by Section 148 of the Code.
Section 3.07 Payments to City. It shall be a condition of making the Loan to the
Borrower that the Borrower pay, within 10 days of a request from the City therefor, all expenses
incurred by the City under the Resolution, and of enforcing the provisions of the Resolution, this
Agreement or the Assignment. The Borrower acknowledges that it has the sole obligation to pay
the fees and expenses of the City under the Resolution.
Section 3.08 Nature of Borrower's Obligations: Limitation of Liability.
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(a) The obligations of the Borrower to make the Loan Payments and to
perform and observe the other obligations on its part contained herein and in the other Borrower
Documents shall be absolute and unconditional, and shall not be subject to diminution by setoff,
counterclaim, abatement or otherwise. The Borrower's obligations to make payments and to
perform any other covenants or indemnities or meet any conditions hereunder and under the
Deed of Trust shall be secured by the property pledged hereunder and thereunder; however, no
recourse shall be had against any of the officers, directors, members or employees of the
Borrower in their capacities as such.
(b) The Borrower will not suspend or discontinue any payments provided for
in this Agreement; will perform and observe all of its other agreements contained in the
Borrower Documents, and will not suspend the performance of its obligations thereunder for any
cause, including any acts or circumstances that may constitute failure of consideration, eviction
or constructive eviction, commercial frustration of purpose, any change in the tax or other laws
or administrative rulings of or administrative actions by the United States of America or the State
or any political subdivision of any of them, or any failure of the City to perform and observe any
agreement, whether express or implied, or any duty, liability or obligation arising out of or
connected with the Borrower Documents or the Bonds, whether express or implied.
(c) The Borrower hereby waives, to the extent permitted by law, any and all
rights it may now have or which at any later time may be conferred upon it, by statute or
otherwise, to terminate or cancel., or to limit its liability under, the provisions of the Borrower
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Documents relating to the use of the Project by the Borrower or its successors or assigns, except
in accordance with the express terns hereof or thereof.
F 1.505303 \4 00128946.D C
ARTICLE IV
SECURITY
Section 4.01 Security Interests. To secure its obligation to make the Loan Payments
and its other obligations, agreements and covenants to he performed and observed hereunder, the
Borrower shall grant for the benefit of the Bank by way of the Deed of Trust, a lien against and
security interest in the Project, which grant shall be free and clear of all liens, encumbrances and
defects except Permitted Encumbrances.
Section 4.02 Security Agreement. This Loan Agreement is intended to be a security
agreement within the meaning of the UCC. The security interest in the Revenues is intended to
be and remain a first lien, subject only to Permitted Encumbrances. The Borrower shall execute
and cause to be filed contemporaneously with the execution of this Agreement, in accordance
with the requirements of the UCC, financing statements in form and substance satisfactory to the
City, and, from time to time thereafter, shall execute and deliver such other documents
(including continuation statements as required by the UCC) as may be necessary or reasonably
requested by the City in order to perfect or maintain perfected such security interests or give
public notice thereof,
ARTICLE V
APPLICATION OF LOAN PROCEEDS
Section 5.01 Application of Proceeds. The Borrower agrees to apply the proceeds of
the Bonds as described in the Resolution and in the Tax Agreement.
ARTICLE VI
IIY:SURANCE; DAMAGE, DESTRUCTION AND CONDEMNATION
Section 6.01 Insurance. The Borrower will maintain at its sole cost and expense
liability insurance, business interruption insurance and insurance against loss andor damage to
the Project (including earthquake) and all equipment therein in an amount not less than the
appreciated replacement value (and, unless insurance is not available in that amount, not less
than the Outstanding principal amount of the Bonds) under a policy or policies covering such
risks as are ordinarily insured against by like organizations engaged in like activities of
comparable size and liability exposure, as well as professional liability and directors and officers
omissions coverage. All insurance required by this Section shall be carried by insurers that are
financially responsible and capable of fulfilling the requirements of such policies. In addition,
the insurance against loss and /or damage to the Project shall be carried by either (i) an insurer
qualified to do business in the State or (ii) a legally qualified organization qualified to do
business in the State. All policies evidencing insurance shall be in the usual form and shall name
the Borrower as the insured party or loss payee and shall also name the City as an insured party
and loss payee. All such insurers must be rated at least "A" by Standard Poor's or "Excellent
(A or A by Best. The Borrower may self- insure (for liability only), subject to an annual review
by an independent actuarial consultant and maintenance of funding at levels recommended by
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that consultant. The Borrower shall provide to the City copies of certificates from an insurance
agent or consultant indicating that the insurance required by this Section has been obtained
within 30 days after the end of each calendar year after the Date of Issue, and shall provide
copies of the insurance policies providing such coverage to the City before the Date of Issue.
Prior to expiration of any such policy, the Borrower shall furnish to the City satisfactory
evidence that such policy has been renewed or replaced or is no longer required. All required
policies shall provide for prior written notice to the Borrower, and the City of any cancellation,
reduction 111 amount or material change in coverage. The City shall not he responsible for the
sufficiency or adequacy of any such insurance policies or for determining that such policies
comply with the requirements of this Section.
Section 6.02 Damage, Destruction, Condemnation or htsured Loss of Title.
(a) If Insurance Proceeds or a Condemnation Award is paid, the Borrower
shall forthwith notify the City and the Bank of such fact and of the amount of Insurance Proceeds
or Condemnation Award received by the Borrower, and shall deposit such Insurance Proceeds or
Condemnation Award with the Bank in a separate account. The City shall not be required to
hold or maintain insurance policies with respect to the Project.
(b) Money in the amount of such Condemnation Award or Insurance Proceeds
shall be held by the Borrower in trust for a period not exceeding 60 days for the purposes set
forth in subsection (c) or (d) of this Section.
(c) If the Borrower determines to restore the Project (such determination to be
rn in accordance with the standards set forth in subsection (d) of this Section within 60 days
after receipt of such Condemnation Award or Insurance Proceeds), such Condemnation Award
or Insurance Proceeds shall be used exclusively for such purpose, and the Borrower shall so
certify to the City and the Bank. The Borrower shall disburse such funds to pay the costs of the
reconstruction of the Project. In such event, the Project Completion Date shall be adjusted to
�'I completion t c. restoration, aC eterni nP bV
reflect a reasonable date for ccmp o such determined the Borrower, but
in no event later than three years from the date of receipt by the Borrower of the Condemnation
Award or Insurance Proceeds.
(d) If the Borrower (or the Bank, in accordance with the Deed of Trust, as
applicable) determines not to restore the Project either fully or partially (the Borrower shall make
such determination if, in the opinion of the Borrower, repair could not be completed within six
months or the restoration and repair of the Project would not be economically practical or
desirable), the Borrower shall so certify to the City and the Bank, and the Borrower shall apply
such Condemnation Award or Insurance Proceeds to the payment or extraordinary redemption of
the Bonds in accordance with the provisions of the Resolution.
(e) The Borrower shall be obligated to continue to make the Loan Payments
even if the Project or the property therein is destroyed or damaged (in whole or in part) by fire or
other casualty, or if title to, or the temporary use of, the Project or the property therein or any
part thereof shall be condemned by any governmental body or any person acting under
governmental authority, unless the Borrower shall have theretofore caused all of the principal of
TFK DRAFT 06/09/10
and premium, if any, and interest on the Bonds to have been paid or prepaid in full in accordance
wit their terms.
Section 6.03 Title Insurance, Prior to the Date of Issue, the Borrower shall obtain a
commitment for an ALTA extended coverage mortgagee's title insurance policy with respect to
the Project, naming the Bank as the insured. Such policy shall be issued in an aggregate amount
equal to the aggregate principal amount of the Bonds, insuring that title to the Project is vested in
the Borrower, subject only to Permitted Encumbrances, and that the lien of the Deed of Trust is a
valid first priority lien on the real property described in the Deed of Trust.
ARTICLE VII
OTHER COVENANTS OF THE BORROWER
Section 7.01 Maintenance of Existence. The Borrower covenants and agrees to
maintain its existence as a limited liability company qualified to conduct affairs in the State.
Section 7.02 Financial Covenant. RESERVED.
Section 7.03 Compliance with Laws. With respect to the Project and any additions,
alterations and improvements thereto, the Borrower covenants and agrees to comply at all times
with all applicable requirements of federal and State laws and with all applicable lawful
requirements of any agency, board, or commission created under the laws of the State or of any
other duly constituted public authority; provided, that the Borrower shall be deemed in
compliance with this Section so long as it is contesting in good faith any such requirement by
appropriate legal proceedings.
Section 7.04 Taxes and Other Governmental Charges. The Borrower covenants and
agrees to pay (or cause to be paid) all taxes and assessments or other municipal or governmental
charges, if any, lawfully levied or assessed upon or with respect to the Project, or upon any part
thereof or upon any revenues therefrom, provided that the Borrower shall be deemed in
compliance with this Section so long as it is contesting in good faith any such tax, assessment or
other governmental charge.
Section 7,05 Independent Audit. The Borrower shall deliver to the City within 180
days after the end of each Fiscal Year an independent audit of the financial statements of the
Borrower for that Fiscal Year, The City shall have no obligation to review such audit,
Section 7.06 Notice of Default, The Borrower covenants and agrees to notify the City
immediately upon the occurrence of (a) any event described in Section 8.01(a); and (b) any event
described in Section 8.01(b) or Section 8.01(c) without regard to any cure periods mentioned
therein which, with the giving of notice or the passage of time or both, night constitute an Event
of Default hereunder, and shall state in such notice the measures it intends to take with respect
thereto, if any.
Section 7.07 Tax Exempt Status of Series A Bonds. It is the parties' intention and
agreement that, pursuant to Section 103 of the Code, the interest paid on the Series A Bonds
shall be excluded from gross income of the recipients of such interest for federal income tax
purposes. In order to confirm and carry out such intention, the Borrower covenants and agrees
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(a) to provide such certificates, opinions of Bond Counsel and other evidence as may he
necessary or requested by the City to establish the exemption of the Series A Bonds under
Section 103 of the Code and the absence of arbitrage expectation under Section 148 and related
sections of the Code; (b) acting alone or with the City, to file such information and statements
with the Internal Revenue Service as may be required to establish or preserve such exemption or
as may be required by Section 103 or related sections of the Code; (c) to comply with arbitrage
rebate requirements imposed with respect to the Series A Bonds, including the requirement to
calculate and pay to the United States, at the sole expense of the Borrower, all arbitrage rebate
amounts in the manner and at the times required by Section 148 of the Code; and (d) if required
to prevent a loss of the exclusion from gross income for federal income tax purposes of interest
on the Series A Bonds because of any failure to meet applicable arbitrage rebate requirements
under Section 148 of the Code, to pay on behalf of the City the penalty and interest thereon as
provided in Subsection 148(f)(7)(c) of the Code. The Borrower further covenants and agrees
that it will not (i) take any action, (ii) fail to take any action or (iii) make any use of the Project
or the proceeds of the Series A Bonds, in each case that would cause the interest on the Series A
Bonds to be or become includable in the gross income of the recipients thereof (other than
substantial users of the Project) for federal income tax purposes. Without limiting the generality
of the foregoing, the Borrower further covenants and agrees that it will take such action or
actions, including consenting and agreeing to amendments to this Agreement or any of the other
Borrower Documents as may be necessary, in the opinion of Bond Counsel, so that the Borrower
and all subsequent owners of the Project comply fully and continuously with the Code, as
applicable to the Bonds from time to time, and all applicable rules, rulings, policies, procedures,
regulations or other official statements promulgated or proposed by the Department of the
Treasury or the Internal Revenue Service, including the Treasury Regulations.
Section 7.08 Indemnification.
(a) The Borrower covenants and agrees, at its expense to pay and to
indemnify and hold the City and its council members, officers, agents and employees harmless
of, from and against any and all claims, damages, demands, expenses, liabilities and taxes of any
character or nature whatsoever relating to the Loan, the Bonds or the Project, including claims
for loss or damage to any property or injury to or death of any person, asserted by or on behalf of
any person and arising out of, resulting from, or in any way connected with the Project, or the
condition, occupancy, use, possession, conduct or management of or any work done in or about
the Project or from the acquisition, construction, equipping or ownership of the Project, or any
part thereof; or any untrue statement or alleged untrue statement of any material fact or the
omission or alleged omission to state a material fact necessary to make the statements made in
any statement, information or material furnished by the Borrower to the City not misleading;
provided, that this covenant shall be subject to the provisions of subsection (c) of this Section.
(b) The Borrower further covenants and agrees, at its expense, to pay and to
indemnify and hold the City and its council members, officers, agents and employees harmless
of, from and against all costs, reasonable counsel fees, expenses and liabilities incurred in any
action or proceeding brought by reason of any claim or demand described in Section 7.08(a). In
the event that any action or proceeding is brought against the City or its council members,
officers, agents and employees by reason of any such claim or demand, the Borrower, upon
notice from the City, covenants and agrees to resist and defend such action or proceeding on
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behalf of the City or its council members, officers, agents and employees; provided, that this
covenant shall be subject to the provisions of Section 7.08(c).
(c) The Borrower shall not be obligated to indemnify the City or its council
members, officers, agents and employees in the circumstances described in Section 7.08(a) or
Section 7.08(b) against liability, for damages arising out of death or bodily injury to persons or
damage to property caused by its or their gross negligence or willful and malicious acts.
(d) The provisions of this Section are subject to the provisions of
Section 3.08(a) and shall, to the extent permitted by law, survive termination of this Agreement.
Section 7.09 Borrower's Performance under Resolution. The Borrower shall, for the
benefit of the Bank, do and perform all acts and things that are to be done or performed by it,
either directly on its own behalf or on behalf of the City, under the terms of the Resolution, all of
which terms are incorporated herein by this reference.
ARTICLE VIII
EVENTS OF DEFAULT; REMEDIES
Section 8.01 Events of Default. Any one or more of the following events shall
constitute an `Event of Default" hereunder:
(a) Failure of the Borrower to make any payment required to be made under
Section 3.03 when due, or to make any other payment required to he made under any other
provision of Article III or Section 7,08 within 30 days after written notice of such failure has
been delivered to the Borrower by the City;
(b) Except as otherwise provided herein, any other material failure on the part
of the Borrower to perform or observe any of the other duties, provisions or obligations required
of it pursuant to this Agreement, if such failure shall have continued for a period of 30 days after
written notice thereof has been delivered to the Borrower by the City, unless the City has
determined that the Borrower is then taking steps reasonably calculated to cure such failure and
the City and the Bank have received an opinion of Bond Counsel that such noncompliance will
not result in a Determination of Taxability (as such tern is defined in the Resolution); and/or
Section 8.02 Remedies on Default. Upon the occurrence of an. Event of Default any
one or more of the following steps may be taken:
(a) The City shall declare the principal of the Loan to be immediately due and
payable, whereupon that portion of the principal of the Loan thereby coming due and the interest
thereon accrued to the date of payment shall, without further action, become and be immediately
due and payable, anything in this Agreement to the contrary notwithstanding. Whereas an
acceleration of the Loan may but need not constitute an acceleration of the Bonds, an
acceleration of the Bonds shall constitute an acceleration of the Loan without further action by
the City;
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(c) The occurrence of any Event of Default under the Resolution.
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(b) The City may have access to and inspect, examine and make copies of the
books and records and any and all accounts, data and income tax and other tax returns of the
Borrower;
(c)
The City may appoint a manager for the Project;
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(d) The City may, without being required to give any notice except as
provided herein, pursue all remedies of a secured creditor under applicable laws of the State;
(e) The City may proceed to protect and enforce its rights in equity or at law,
either in mandamus or for the specific performance of any covenant or agreement contained
herein, or for the enforcement of any other appropriate legal or equitable remedy, as the City
may deem most effectual to protect and enforce any of its rights or interests hereunder;
(f) Subject to the provisions of the Deed of Trust, the City may seek the
appointment of a receiver of the rents, issues and profits arising from or related to the Project,
with such powers as the court making such appointment shall confer, including such powers as
may be necessary or usual in such cases for the protection, possession, control, management and
operation of the Project in accordance with the provisions of the Resolution and the Deed of
Trust;
(g) The City may institute and prosecute any proceeding at law or in equity to
abate, prevent or enjoin any violation or attempted violation of any of the provisions hereof, or to
recover monetary damages caused by such violation or attempted violation. The provisions
hereof are imposed upon and made applicable to the Project and shall run with the land and shall
be enforceable against the Borrower and each purchaser, grantee or lessee of the Project or any
portion thereof at any time and from time to time throughout the term hereof, and the respective
heirs, legal representatives, successors and assigns of the Borrower and each such purchaser,
grantee or lessee.
Section 8.03 No Remedy Exclusive. No remedy conferred upon or reserved to the City
by this Agreement is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute, and the
City shall be free to pursue, at the same time, each and every remedy, at law or in equity, which
it may have under this Agreement, or otherwise.
Section 8.04 No Implied Waiver. No delay or omission to exercise any right or power
accruing upon any Event of Default shall impair any such right or power or shall be construed to
be a waiver thereof, but any such right and power may be exercised from time to time and as
often as may be deemed expedient. For the City to exercise any remedy, it shall not he necessary
to give any notice, other than such notice as may be expressly required herein.
Section 8.05 Agreement to Pay Attorneys' Fees and Expenses. If an Event of Default
arises under any of the provisions of this Agreement and the City should employ attorneys or
incur other expenses for the collection of Loan Payments or other amounts due under this
Agreement or the enforcement of perfonnance or observance of any obligation or agreement on
the part of the Borrower contained in this Agreement or any other Borrower Document, on
F: \605303 \4 \00128946. DOC
14
-109-
ARTICLE IX
MISCELLANEOUS
TFK DRAFT 06/09(10
demand therefor, the Borrower shall pay or reimburse the City for the reasonable fees of such
attorneys and such other expenses so incurred.
Section 9.01 Notices. Except as otherwise provided herein, all notices, consents or
other communications required hereunder shall be in writing and shall be sufficiently given if
addressed and mailed by first-class, certified or registered mail, postage prepaid and return
receipt requested, to the addresses set forth in Section 10.6 of the Resolution, The City or the
Borrower may, by notice given hereunder, designate any further or different addresses to which
subsequent notices, certificates, requests or other communications shall be sent.
Section 9.02 Binding Effect, This Agreement shall inure to the benefit of and shall be
binding upon the City, the Borrower and their respective successors and assigns, and may be
enforced by the City and its successors and assigns during the term of this Agreement, whether
or not the Loan is paid in full and whether or not the Bonds are Outstanding. In determining
whether any default or lack of compliance by the Borrower exists under this Agreement, the City
shall not be required to conduct any investigation or review of operations by the Borrower and
may rely solely upon any notice delivered to it by the Borrower with respect to the occurrence or
absence of a default. The parties hereto agree they will execute and deliver any and all
documents and instruments necessary to effectuate the provisions of this Section.
Section 9.03 Severability. In the event any provision of this Agreement shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate
or render unenforceable any other provision hereof
Section 9.04 Amendments. The provisions hereof shall not be amended, revised or
terminated prior to the expiration of the stated term hereof except by an instrument in writing
duly executed by the. City and the Borrower (or its successors in title) in accordance with the
provisions of the Resolution, if the Bonds remain Outstanding. No modification of any of the
terms of this Agreement shall be effective until an opinion of Bond Counsel approving the
modification has been delivered to the City as provided herein and in the Resolution.
Section 9.05 RESERVED.
Section 9.06 Limitation of City Liability, No provision, covenant or agreement
contained in this Agreement, or any obligations herein imposed upon the City, or the breach
thereof, shall constitute a debt or liability of the City, the State of Alaska or any political
subdivision thereof or create or constitute an indebtedness, liability, or obligation of the City, the
State of Alaska or any political subdivision thereof, or a pledge of faith, credit, or taxing power
of the City, the State of Alaska or any political subdivision thereof. In making the agreements,
provisions and covenants set forth in this Agreement, the City has not obligated itself except for
the application of the revenues, income and all other properly from the Borrower as provided
herein.
Section 9.07 Waiver of Breach. No waiver of any breach of any covenant or agreement
contained herein shall operate as a waiver of any subsequent breach of the same covenant or
F:1505303\4\00128946. DOC
15
-110-
TFK DRAFT 06/09/10
agreement or as a waiver of any breach of any other covenant or agreement, and in case of a
breach by either party of any covenant, agreement or undertaking, the nondefaulting party may
nevertheless accept from the other any payment or payments or performance hereunder without
in any way waiving its right to exercise any of its rights and remedies provided for herein or
otherwise with respect to any such default or defaults that were in existence at the time such
payment or payments or performance were accepted by it.
Section 9.08 All Oblisations Due on Business Days. If the date for making any
payment or the last date for performance of any act or the exercising of any right, as provided in
this Agreement, shall be a day which is not a Business Day, such payment may be made or act
performed or right exercised on the next succeeding Business Day with the same force and effect
as if done on the nominal date provided in this Agreement.
Section 9.09 City Observance of Resolution Covenants and Terms. The City agrees
that it will observe and perform all obligations imposed upon it by the Resolution and the Bonds;
provided, that except as otherwise specifically provided in the Resolution, the City has no
obligation to use its own funds to perform or cause performance of any such obligations. The
City further agrees that it will not amend the Resolution or the Bonds in any respect except in
accordance with the Resolution.
Section 9.10 No Rights Created in Third Parties. The terms of this Agreement are not
intended to establish nor to create any rights in any persons other than the City, the Borrower, the
Bank and the respective successors and assigns of each.
Section 9.11 Time of Essence. Time and all terms and conditions hereof shall be of the
essence of this Agreement.
Section 9.12 Benefit of Bank. This Agreement is executed in part to induce the
purchase of the Bonds by the Bank, and accordingly all covenants and agreements on the part of
the B on owP1 an d th City as set forth in this Agreement are hereby declared to be for the benefit
of the Owners, from time to time, of the Bonds.
Section 9.13 References to Bonds Ineffective After Payment. Upon the indefeasible
payment in full of the principal of and premium, if any, and interest on the Bonds and the
payment of all fees and charges of the City, all references in this Agreement to the Bonds shall
be ineffective and neither the City nor the Owners shall thereafter have any rights hereunder,
saving and excepting those that shall have theretofore vested and except as otherwise provided
herein.
ARTICLE X
ASSIGNMENT OF CITY'S RIGHTS
To secure the payment of the Bonds in accordance with their terms the City assigns to the
Bank without recourse, all of its right, title and interest in this Agreement, except for its rights
and interests described in Sections 3.08 and 9.06, all of which rights and interests shall not be
assigned "City Reserved Rights The City's duties hereunder are not assigned or delegated.
By such assignment, the Bank shall succeed to all the rights and privileges of the City hereunder
to the extent of such assignment. All references to the City herein shall be treated as references
F: \50530314100128946, DOC
16
to the Bank, acting as assignee of the City, to the extent that the rights of the City have been
assigned to the Bank, except that those references contained in the City Reserved Rights sections
shall be treated as referring to the City only.
TFK DRAFT O6 /09 /IO
The Borrower hereby consents to the assignment of rights set forth in this Article X and
agrees to faithfully render the performance of all of its duties and obligations hereunder to the
Bank except for the City Reserved Rights, which shall be rendered only to or at the direction of
the City.
When all principal of and premium, if any, and interest due on the Bonds and all amounts
owed w the City under the Resolution are fully paid, the City shall release and assign to the
Borrower any remaining interest it has in the Deed of Trust and this Agreement.
IN WITNESS WHEREOF, the City and the Borrower have caused this Agreement to be
executed in their respective names all by their Authorized Representatives, and have caused this
Agreement to be dated as of the date set forth on the first page hereof.
F'`50530314 \00128946. DOC
CITY OF KENAI, ALASKA
By
City Manager
DOUBLE GLACIER BUILDERS. LLC, an Alaska
limited liability company
By
17
-112-
Fa5053031410012894 6.D0
EXFIIBIT A
AUTHORIZED INVESTMENTS
1. Governmental Obligations.
2. Obligations issued or guaranteed by any state or political subdivision thereof rated
A or higher by Moody's and by S &P.
3. Open market commercial or finance paper of any corporation having a net worth
in excess of $100,000,000 and which is rated either P 1 or A 1 or an equivalent by Moody's and
S &P.
A -1
-113-
TFK DRAFT 06/09/10
4. Bankers' acceptances drawn on and accepted by commercial hanks.
5. Investments due within 12 months in certificates of deposit issued by, or bankers'
acceptances of, banks or trust companies organized under the laws of the United States of
America or any state thereof, which must have a reported capital and surplus of at least
$25,000,000 in dollars of the United States of America.
6. Bank repurchase agreements fully secured by obligations of the type described in
(1) above.
7. Variable rate demand securities redeemable within 7 days or able to be tendered
for remarketing or purchase upon no more than 7 days' notice and secured by a credit facility
issued by a financial institution, which financial institution (or its corporate parent) maintains a
long term debt rating assigned by Moody's and S &P which is not lower than the third highest
long term debt category (without regard to numerical or other modifiers assigned within the
category) by either Rating Service, or by both Rating Services, if rated by both Rating Services,
8. Shares of any so called "money market mutual fund" which invests solely in
obligations described in items (1) through (7) above; and further provided that any such
investment or deposit is not prohibited by law.
EXHIBIT B
FORM OF DRAW REQUEST
TFK DRAFT 06/09/10
TO: First National Bank Alaska, as the Bank under the Loan Agreement dated as of
2010 (the "Loan Agreement by and between the City of Kenai,
Alaska (the "City and Double Glacier Builders, LLC (the "Borrower").
The undersigned,
Authorized Representative of the Borrower, delivers the following requisition for payment of
Loan proceeds by you as the Bank pursuant to the Loan Agreement, and directs you to disburse
from Loan proceeds the sum indicated below to be disbursed pursuant to this Draw Request in
accordance with Section 3.02 of the Loan Agreement, as follows:
Draw Request Number:
2. As evidenced by the summary of invoices and payment requests, attached hereto,
the Borrower has incurred payment Liabilities with respect to the Project in the aggregate amount
of S (the "Liability").
F: \505303 \4 \00128946. D OC
The Liability relates to the following costs of the Project:
4. Payment of the Liability should be made as follows:
AMOUNT TO BE PAID:
PAY TO:
ADDRESS:
5. The Liability has been properly incurred for payment of costs of the Project and is
a proper charge against Loan proceeds, None of the costs of the Project for which payment is
hereby requested to be made has formed the basis for any payment heretofore requested to be
made from Loan proceeds. The money received pursuant hereto shall be promptly applied to the
payment or reimbursement of payment of the Liability.
6. No default or Event of Default under the Loan Agreement, or under Resolution
No. 2010 of the City, or any condition, event or act that, with notice or lapse of time or both,
would constitute such a default or Event of Default, presently exists or will arise from payment
of the Liability.
7. To the hest of my knowledge, after due inquiry, there is no vendor's lien,
mechanic's lien or security interest that should be satisfied or discharged before the payment of
the Liability is made or that will not be discharged by such payment.
B-1
-114-
8, If this Draw Request is or will be for an item of equipment, upon payment of the
full cost of such equipment, the Borrower shall be the owner thereof and the first use thereof
shall be by the Borrower.
Capitalized terms used in this Requisition have the same meaning given such tents in the
Loan Agreement and Resolution Agreement, as applicable.
DATED ,20
F: \50530314',0C 128946.000
DOUBLE GLACIER BUILDERS, LLC
By
Authorized Representative
B -2
-115-
TFK DRAFT 06/09/10
the ctly of
MAL ALASKA
CITY OF KENAI
RESOLUTION NO. 2010-38
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REJECTING
ALL BIDS FOR THE PROJECT ENTITLED ELEVATED LIGHT PENETRATING
WALKWAY RAMPS KENAI DUNES -2010.
WHEREAS, the following bids were received on June 9, 2010:
Basic Bid
$65,120.00
BIDDER
ATEC
Suggested by: Administration
;and,
WHEREAS, the bid is significantly in excess of the funds available; and,
WHEREAS, the recommendation from the City Administration is to reject all bids.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that all bids for the project entitled Elevated Light Penetrating Walkway
Ramps Kenai Dunes be rejected.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June
2010.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: 7 C
PAT PORTER, MAYOR
-116-
Me 4, of
KENAI
TO: Rick Koch, City Manager
FROM: Wayne Ogle, Public Works Director
DATE: June 10, 2010
SUBJECT: ELEVATED LIGHT PENETRATING WALKWAY RAMPS KENAI
DUNES 2010
Rick,
VUfaye with a Past Gi with a Future
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535, Ext. 236 FAX: (907) 283 -3014 IV
MEMO 1\DUVI
The following sealed bids were received at City Hall at 2PM on June 10, 2010 for
the subject project:
ELEVATED LIGHT PENETRATING WALKWAY RAMPS KENAI DUNES 2010
Bidder
ATEC
Basic Bid
$65,120.00
The sole bid by ATEC is significantly in excess of the available funds of
$48,080.00.
I recommend City Council reject this bid.
-117-
1992
Furnish Delivering at various
City location
Current Supply
I Price
Contractor's
Mark up
Total Unit
Price City
Pays
Bidder
Jackson Enterprises, Inc
3.0969
.195
3.2919
Harbor Enterprises, Inc., d /b /a
Alaska Oil Sales
3.055
.06
3.115
tAc o el
KENAI.AALLASKA
and,
CITY OF KENAI
RESOLUTION NO. 2010 -39
WHEREAS, the following bids were received on June 10, 2010:
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
CONTRACT TO HARBOR ENTERPRISES, INC., D /B /A ALASKA OIL SALES, FOR
FURNISHING AND DELIVERING OF DIESEL FUEL.
WHEREAS, Harbor Enterprises, Inc., d /b /a Alaska Oil Sales' bid for diesel fuel is the
lowest responsible bid and award to this bidder would be in the best interest of the
City; and,
WHEREAS, the recommendation from the City Administration is to award a contract
to Harbor Enterprises, Inc., d /b /a Alaska Oil Sales for diesel fuel for prices quoted in
their bid; and,
WHEREAS, the City's price per gallon for diesel fuel will be the total unit price the City
pays for diesel fuel; and,
WHEREAS, the term of the contract will be from July 1, 2010 to June 30, 2011 and
may be extended upon mutual agreement for up to four additional one -year periods;
and,
WHEREAS, sufficient monies are appropriated.
-118-
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the contract is awarded to Harbor Enterprises, Inc., d /b /a Alaska Oil
Sales for furnishing and delivering diesel fuel to various locations in the City at the
maximum allowable mark up of $.06 per gallon over supply price.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of June,
2010.
Resolution No, 2010 -39
Page 2 of 2
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
-119-
PAT PORTER, MAYOR
te e of
KENA ALASKA
Rick,
Viffaye with a Past, City with a Future'
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
umx�mv
Telephone: (907) 283 -7535, Ext. 236 FAX: (907) 283 -3014 II I I I
EMO'''4hDUM
TO: Rick Koch, City Manager
FROM: Wayne Ogle, Public Works Director
DATE: June 10, 2010
SUBJECT: AWARD OF BID; FUEL BID 2010- FURNISH AND DELIVER
The following sealed bids were received at City Hall at 2PM on June 10, 2010 for
the subject project:
FURNISH. DELIVER KEEP TANKS FULL
The purpose of this bid is for the furnishing and delivering diesel to City
generators and Airport Operations Fuel Tank.
Harbor Enterprises, Inc., d /b /a Alaska Oil Sales is the lowest responsible
bidder. The teiiu of this contract will be from July 1, 2010 to June 30, 2011 and
may be extended upon mutual agreement for up to four additional one -year
periods.
I recommend City Council approve Resolution No. 2010 -39 to award this
contract to Harbor Enterprises, Inc., d /b /a Alaska Oil Sales.
—120—
1992
r Supply Price
Contractor's Mark
Up
Total Unit Price City Pays
Bidder
Jackson
Enterprises,
Inc
$10969
$0.195
$3.2919
Harbor
Enterprises,
Inc., d /b /a
Alaska Oil
Sales
$3.055
$0.06
$3.115
te e of
KENA ALASKA
Rick,
Viffaye with a Past, City with a Future'
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
umx�mv
Telephone: (907) 283 -7535, Ext. 236 FAX: (907) 283 -3014 II I I I
EMO'''4hDUM
TO: Rick Koch, City Manager
FROM: Wayne Ogle, Public Works Director
DATE: June 10, 2010
SUBJECT: AWARD OF BID; FUEL BID 2010- FURNISH AND DELIVER
The following sealed bids were received at City Hall at 2PM on June 10, 2010 for
the subject project:
FURNISH. DELIVER KEEP TANKS FULL
The purpose of this bid is for the furnishing and delivering diesel to City
generators and Airport Operations Fuel Tank.
Harbor Enterprises, Inc., d /b /a Alaska Oil Sales is the lowest responsible
bidder. The teiiu of this contract will be from July 1, 2010 to June 30, 2011 and
may be extended upon mutual agreement for up to four additional one -year
periods.
I recommend City Council approve Resolution No. 2010 -39 to award this
contract to Harbor Enterprises, Inc., d /b /a Alaska Oil Sales.
—120—
1992
ITEM A: CALL TO ORDER
AGENDA
KENAI CITY COUNCIL REGULAR MEETING
JUNE 2, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: www. ci. kenai. ak. u s
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to 3 minutes per speaker. Persons may give
their time over to another speaker present, however no single speaker present may speak
for more than 30 minutes combined on their own and on others' behalf)
*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 (Public comments limited to 10
minutes per speaker)
ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comme lim ited to 3
minutes per speaker)
ITEM D: PUBLIC HEARINGS 'Testimony limited to 3 minutes per speaker. Persons
may give their time over to another speaker present, however no single speaker
present may speak for more than 30 minutes combined on their own and on others'
behalf)
1. Ordinance No. 2484 -2010 Adopting the Annual Budget for the Fiscal
Year Commencing July 1, 2010 and Ending June 30, 2011.
2. Ordinance No. 2485 -2010 Increasing Estimated Revenues and
Appropriations by $591,268 in the Airport Land Saks Permanent Fund
and Both Increasing and Decreasing Estimated Revenues in the Airport
Fund for Funds Received from the Airport Land Sales Permanent Fund.
3. Ordinance No. 2486 -2010 Increasing Estimated Revenues and
Appropriations by $8,552.95 in the General Fund for State Bureau of
Highway Patrol Overtime Expenditures.
4. Ordinance No. 2487 -2010 Increasing Estimated Revenues and
Appropriations by $8,569.75 in the General Fund for State Traffic Grant
Overtime Expenditures.
-121-
5. Ordinance No. 2488 -2010 Amending KMC Chapter 6.05, Voting
Qualifications and Procedures, to Change the Time for the Meeting of the
Canvassing Board, to Amend the Process for Absentee Voting by
Directing the Use of Pre -Paid Postage Return Envelopes and Reducing
the Number of Witnesses Required, to Expand Certain Records Retention
Requirements, and to Make Conforming Amendments.
6. Resolution No. 2010 -31 Requesting the Kenai Peninsula Borough to
Allocate $2,000,000 of its Volume Cap of Recovery Zone Facility Bonds to
the City of Kenai for the Issuance of Revenue Bonds to Fund the
Construction of a Commercial Building in the City.
7. Resolution No. 2010 -32 Awarding a Contract to Harbor Enterprises,
Inc., d /b /a Alaska Oil Sales, for Furnishing and Dispensing of Diesel and
Unleaded Fuel.
ITEM E: MINUTES
1. *Regular Meeting of May 19, 2010.
2. *May 24, 2010 Budget Work Session Notes.
ITEM F: UNFINISHED BUSINESS
ITEM G: NEW BUSINESS
1. Ratification of Bills
2. Approval of Purchase Orders Exceeding $15,000
3. *Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform
Plumbing Code, to Delete the Local Requirement That Underground
Water Service Pipe Less Than Two Inches in Diameter Must be in Copper.
4. *Ordinance No. 2490 -2010 Increasing Estimated Revenues and
Appropriations by $4,255 in the Airport Fund for a Donation Received
From the Kenai Watershed Forum for the City's Summer Bird Hazing
Program at the Kenai Airport.
*Ordinance No. 2491 -2010 Increasing Estimated Revenues and
Appropriations by $1,500,000 in the Library Improvements Capital
Project Fund.
6. *Ordinance No. 2492 -2010 Reducing Estimated Revenues and
Appropriations by $1,500,000 in. the General Fund and Library
Improvements Capital Project Fund.
7 *Ordinance No. 2493 -2010 Amending KMC 13.40.040 to Provide for a
Speed Limit of Fifteen (15) Miles Per Hour While Driving Motorized.
Vehicles on a Portion of the North Shore Public Beach Within the City of
Kenai and Making Technical Corrections,
-122-
8. Action Item Appointment to Kenai Peninsula Borough Planning
Commission.
9. Action Item Schedule Work Session /Town Hall Meeting
Collaborative Leadership Training Review.
ITEM H: COMMISSION /COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Library Commission
5. Parks Recreation Commission
6. Planning Zoning Commission
7. Miscellaneous Commissions and Committees
a. Beautification Committee
b. Alaska Municipal League Report
c. Mini -Grant Steering Committee
d. Kenai Convention Visitors Bureau
e. Reports of KPB Assembly, Legislators and Councils
ITEM 1: REPORT OF THE MAYOR
ITEM J: ADMINISTRATION REPORTS
1. City Manager
2. Attorney
3. City Clerk
ITEM K: DISCUSSION
1. Citizens (Public comment limited to 5 minutes per speaker
2. Council
EXECUTIVE SESSION Annual Evaluations of City Manager and City Clerk
ITEM L: PENDING LEGISLATION (This item lists legislation which will be
addressed at a later date as noted.)
Resolution No. 2009 -68 Supporting Actions Building and Maintaining a
Sustainable community Within the City of Kenai, and Supporting Networking with
Local Governments on the Kenai Peninsula. (Clerk's Note: At its May 19, 2010
meeting, Resolution No. 2009 -68 was substituted and then postponed to July 7, 2010
for consideration and an additional public hearing.)
Resolution No. 2010 -23 Opposing "An Initiative Creating an Alaska Anti
Corruption Act" Which Will be on the 2010 Alaska Primary Election Ballot. (Clerk's
Note: At its April 7, 2010 meeting, Council postponed Resolution No. 2010 -23 to its July
7, 2010 meeting. The motion to adopt is active.)
ITEM M: ADJOURNMENT
-123-
Mike Boyle
Pat Porter, Mayor
Hal Smalley, Vice Mayor
Joe Moore
Barry Eldridge
Ryan Marquis
Robert Molloy
ITEM A: CALL TO ORDER
Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council
Chambers in the Kenai City Hall Building.
A -1. PLEDGE OF ALLEGIANCE
Mayor Porter led those assembled in the Pledge of Allegiance.
A -2. ROLL CALL
The City Clerk took roll. Present were:
A quorum was present.
Student Representative Hannah Coffman: Absent
A -3. AGENDA APPROVAL
The following changes were requested:
ADD TO:
ADD TO:
MOTION:
KENAI CITY COUNCIL REGULAR MEETING
JUNE 2, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: /www.ci.kenai.ak.us
MAYOR PAT PORTER, PRESIDING
MINUTES
ITEM D -1, Ordinance No. 2484 -2010
6/2/2010 T. Eubank memorandum /FY11 Budgeted Revenues from
Property Taxes
6/1/2010 T. Anderson, Director of Assessing, Kenai Peninsula
Borough letter related to 2010 Certified Main Roll Values
ITEM D -2, Ordinance No. 2485 -2010 6/1/ T. Eubank
Memorandum identifying required amendments and suggested
amendment language.
Council Member Smalley MOVED for approval of the agenda as amended with the
listed items and requested UNANIMOUS CONSENT. Council Member Eldridge
SECONDED the motion.
-124-
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 2
VOTE:
There were no objections. SO ORDERED.
A -4. CONSENT AGENDA
MOTION:
Council Member Smalley MOVED to approve the Consent Agenda as submitted and
requested UNANIMOUS CONSENT, Council Member Eldridge SECONDED the
motion.
Council Member Moore requested Ordinance No. 2493 -2010 be removed from the
consent agenda and Council. Member Marquis requested to remove Minutes of the May
19, 2010 meeting from the consent agenda.
MOTION:
There were no objections. SO ORDERED.
ITEM B: SCHEDULED PUBLIC COMMENTS (Public commen limited to 10
minutes per speaker)
None.
ITEM C: UNSCHEDULED PUBLIC COMMENTS Public comment limited to 3
minutes per speaker)
None.
ITEM D: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker. Persons
may give their time over to another speaker presen.tt, however no single speaker
present may speak for more than 30 minutes combined on their own and ort others'
behalf)
D -1. Ordinance No. 2484 -2010 Adopting the Annual Budget for the Fiscal
Year Commencing July 1, 2010 and Ending June 30, 2011.
MOTION:
Council Member Eldridge MOVED to adopt Ordinance No. 2484 -2010 and Council
Member Moore SECONDED the motion.
The floor was opened to public hearing. There being no one wishing to speak, the
public hearing was closed.
MOTION TO AMEND:
-125-
Boyle
No
I Porter
I No
Smalley
No
Moore
Yes
I Eldridge
I Yes
Marquis
No
Molloy
No
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 3
Council Member Moore MOVED to amend Ordinance No. 2484 -2010 by reducing the
budget by approximately $220,000 or 2.35 mills. Council Member Eldridge
SECONDED the motion.
Council discussion followed with comments including:
It was Council's goal to have a balanced budget and with the lay -down
information provided, the projected surplus would be less.
Lowering the mill rate would send a message to the taxpayers and
businesses the City recognized the economic downturn affecting them.
Kenai would have the lowest mill rate in the Borough.
There was potential for a need to increase the mill rate next year due to
PERS costs and if the three firefighter positions would be filled.
Did not support lowering the mill rate this year only to come back next
year and increase it.
Correction stated by City Manager Koch the PERS increase he stated in
other discussions had not been accurate. The increase to the City's participation
would be .5 mills
With new homes predominantly being built outside the city limits due to
lower interest rates, belief anything that could be done to offer a lower mill rate could
encourage homes to be built inside the city limits
If the amendment passed, and with the new assessed value information
incorporated, there would be a $44,910 surplus.
If the mill rate was decreased and the firefighter positions were not grant
funded, there would be a $232,000 deficit.
Could not support the suggested reduction when knowing the grant
funding for the firefighter positions might not be received.
The firefighter positions were not included in the budget before Council,
The current budget surplus could be used for any purpose.
VOTE ON AMENDMENT:
*Student Representative Coffman. Absent
MOTION FAILED.
MOTION TO AMEND:
Council Member Smalley MOVED to amend Ordinance No. 2484 -2010 by deleting the
truck (33 -8064) at the cost of $41,741. Council Member Boyle SECONDED the
motion.
-126-
Boyle
Yes
Porter
No
Smalley
Yes
Moore
No
Eldridge
No
Marquis
No
Molloy
Yes
r Boyle
Yes
Porter i No
Smalley
Yes
Moore
No
Eldridge I No
Marquis
No
Molloy
Yes
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 4
Discussion followed with comments including•
Without a new truck, the City would be less able to respond to snowfall
and sanding needs.
The truck was used a portion of the winter and it was not known when
the frame on the truck was bent.
The current truck was not used with the knowledge it had a bent frame.
The current truck had not been taken to a frame straightening business;
and the shop foreman recommended it be replaced.
VOTE ON AMENDMENT:
*Student Representative Coffman: Absent
MOTION FAILED.
MOTION TO AMEND:
Council Member Smalley MOVED to delete 510,000 under Parks for planning design
of large playground. Council Member Boyle SECONDED the motion.
Council comments included:
Support as citizens would like to have the park developed.
The funds would be used for purchase of a large multi -age piece of
playground equipment.
There was no prior knowledge for the purchase; the equipment was not
discussed with the Parks Recreation Commission; and, belief more discussion was
needed.
Belief there was a better way to fund and have the Commission more
involved in the decision.
VOTE ON AMENDMENT:
*Student Representative Coffman: Absent
MOTION FAILED.
MOTION TO AMEND:
-127-
Boyle
Yes
No
Porter
Eldridge
No j Smalley
Yes 1 Marquis
Yes
Yes
Moore
Molloy
Yes
Marquis
1
Molloy
Boyle
Yes
Porter No
Smalley
Yes
Moore
No
Eldridge No
Marquis
No
Molloy
No
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 5
Council Member Smalley MOVED to delete the Ryan's Creek Fencing, an $11,000
item. Council Member Molloy SECONDED the motion.
Council comments included:
Felt it the cost of the project and responsibility was that of Safeway and
the property owner.
The funds would provide for a survey of the property boundary and
installation of a fence behind Safeway.
With a discussion with the property owner, felt more effort would be
taken by the owner to take care of the problem.
Most of the oil and salt runoff was caused by vehicles parked in the
parking lot. If less snow was pushed toward the Creek, there should be less
hydrocarbons, etc. going into the Creek.
It is City property, and the City needed to be good stewards of its land.
VOTE ON AMENDMENT:
`Student Representative Coffman Absent
MOTION FAILED.
MOTION TO AMEND:
Council Member Smalley MOVED to add to the Legislative budget, a donation to Kenai
Peninsula Food Bank of 55,000. Council Member Boyle SECONDED the motion.
Council comments included:
Because there were eliminations of donations to other non- profits, belief
it would not be fair to make this donation.
Other non- profits were supported; this donation would show support of
the Food Bank that benefits other organizations, as well as the Kenai Senior Center;
and, felt the donation would support the City being a good steward to the Food Bank.
Support of the amendment.
VOTE ON AMENDMENT:
*Student Representative Coffman. Absent
-128-
Boyle
Yes
Porter
No
I Smalley
i Marquis
Yes
Yes
Moore
No
Yes
Eldridge
No
Molloy
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 6
MOTION PASSED.
MOTION TO AMEND:
Council Member Smalley MOVED to amend the ordinance by placing $20,000 in the
Planning Zoning (4 31) Comprehensive Plan Development budget so an Old Town
Study becomes part of the Plan. Council Member Boyle SECONDED the motion.
Council comments included:
Support of the amendment.
Suggestion to do a development plan for Old Town after the
Comprehensive Plan is completed.
VOTE ON AMENDMENT:
*Student Representative Coffman: Absent
MOTION PASSED.
MOTION TO AMEND:
Council Member Smalley MOVED to take the Deputy Clerk position to full time at an
addition of $39,719. Council Member Boyle SECONDED the motion.
Council comments included:
Lack of support as felt the change was not justifiable.
Understood discussion of the position change would come after a new job
description was written and discuss again in September along with discussion of
firefighter positions.
Support for the change as the process should start now.
If amount was left at $39,719, it would leave the Finance position half
funded.
The Finance position would be half funded only if the position would be
left at full time.
There is need for both full -time positions; the positions should be funded
and not actually fill the positions until the second quarter of the fiscal year when
discussing the firefighter positions; a budget adjustment could be made at that time;
and, want to make the commitment at this time
Lack of support for adding clerical staff.
Felt the need for a full -time Deputy Clerk but could not support until
discuss the firefighter positions.
-129-
Boyle
Yes
Porter
No
Smalley 1 Yes
Moore
No
Eldridge
No
Marquis I Yes
Molloy
Yes
i
Boyle
Yes
Porter
Yes
Smalley
Marquis
Yes
Yes
Moore
Yes
Eldridge
Yes
Molloy
Yes
II Boyle
Yes
Porter No
Smalley
Yes
i Moore
No
Eldridge No
Marquis
No
Molloy
Yes
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 7
VOTE ON AMENDMENT:
*Student Representative Coffman: Absent
MOTION FAILED.
MOTION TO AMEND:
Council Member Marquis MOVED to amend by removing the IT Manager position and
deleting $101,217. Council Member Boyle SECONDED the motion.
Council comments included:
If the IT position would be eliminated, $60,000 was needed to be
included in the budget to cover costs for the contracted IT services.
Benefit of the position would be to have someone on staff instead of a
calling a consultant.
Belief the position was warranted.
VOTE ON AMENDMENT:
*Student Representative Coffman Absent
MOTION PASSED.
MOTION TO AMEND:
Council Member Marquis MOVED to include 560,000 back into the Finance
Department budget and Council Member Smalley SECONDED the motion.
There were no Council comments.
VOTE ON AMENDMENT:
`Student Representative Coffman: Absent
-130-
Boyle 1 Yes
Porter
No
Smalley
Yes
1 Moore No
Eldridge
No
Marquis
No
Molloy 1 No
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 8
MOTION PASSED UNANIMOUSLY.
MOTION TO AMEND:
Council Member Smalley MOVED to include in Legislative Miscellaneous (5041),
$10,000 for support for the Gag Law Legal Fund to fight the gag law. Council Member
Boyle SECONDED the motion.
Council comments included:
Intent would be to appropriate the funds to Alaska Municipal League
(AML) for their efforts to inform voters, etc,
AML was pooling funds from other Alaska communities in an effort to
gather $1 Million to fight the initiative.
Philosophical opposition to fund an effort that would be against the
citizens of the State.
VOTE ON AMENDMENT:
*Student Representative Coffman: Absent
MOTION FAILED.
MOTION TO AME
Council Member Boyle MOVED to amend by adding in the Capital Projects #2), Wind
Generator System, adding $90,000 for a wind generator. Council Member Smalley
SECONDED the motion.
BREAK TAKEN: 8:04 P.M.
BACK TO ORDER: 8:12 P.M.
Council comments included:
Lack of support. Understood the study would be completed and a
suitable location found before moving forwarding to install a wind generator.
Administration recommended including $20,000 for a study; find a
suitable location; specify hardware; have a cost estimate completed; and, look for
funding.
Funding was eliminated due to the insurance cost update; research
already done suggested a location by the airport; people of Kenai made a definite
statement in wanting to move forward with a wind project; there would be savings to
-131-
Boyle Yes
Porter
Yes
Smalley
Yes
Moore No
Eldridge
Yes
Marquis
Yes
Molloy Yes
Yes
Molloy
Yes
Boyle
Yes
Porter
No
Smalley
Yes
Moore
No
Eldridge
No
Marquis
Yes
Molloy
Yes
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 9
the City from the project; and, it made sense economically to move forward with a
wind generator project.
Previous information provided was not site specific; wanted the study to
move forward and include the $90,000 to move ahead as soon as possible after the
study completion.
The first step would be to do a study and when a site was chosen, would
support a wind generator.
Support for adding the funding and the study; belief the study needed to
take place first; would like to see results of the study; if a study could be completed in
30 -90 days, why not move forward with the project during the next fiscal year.
Supported the $20,000, but if the $90,000 was added, concern a
firefighter position would not be funded; and, adding the funds would not allow a
balanced budget.
If added, would prefer it come back as a capital project.
VOTE ON AMENDMENT:
*Student Representative Coffman Absent
MOTION PASSED.
VOTE ON MAIN AMENDED MOTION:
*Student Representative Coff ..an: Absent
MOTION PASSED.
D -2. Ordinance No. 2485 -2010 Increasing Estimated Revenues and
Appropriations by $591,268 in the Airport Land Sales Permanent Fund
and Both Increasing and Decreasing Estimated Revenues in the Airport
Fund for Funds Received from the Airport Land Sales Permanent Fund.
MOTION:
Council Member Moore MOVED for adoption of Ordinance No. 2485 -2010 and Council
Member Smalley SECONDED the motion.
-132-
Boyle
j Yes
Porter
Yes
Smalley
;Yes
Moore
C Yes
Eldridge
Yes
Marquis
Yes
Molloy
j Yes
Boyle
Yes
Porter Yes
Smalley
Yes
Moore
Yes
Eldridge 1 Yes
Marquis
Yes
ivioiloy
Yes
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 10
The floor was opened to public hearing. There being no one wishing to speak, the
public hearing was closed. There were no Council comments.
MOTION TO AMEND:
Council Member Moore MOVED to amend Ordinance No. 2485 -2010 as indicated in
the lay -down memorandum from Finance Director Eubank (insert $3,305,567 in the
first blank of the fourth Whereas; insert $3,022,522.92 in the second blank of the
fourth Whereas; and, in the fifth Whereas, replace $658,157 with $591,268). Council
Member Molloy SECONDED the motion.
VOTE ON AMENDMENT:
*Student Representative Coffman: Absent
MOTION PASSED UNANIMOUSLY.
VOTE ON MAIN AMENDED MOTION:
*Student Representative Coffman: Absent
MOTION PASSED UNANIMOUSLY.
D -3.
MOTION:
Ordinance No. 2486 -2010 Increasing Estimated Revenues and
Appropriations by $8,552.95 in the General Fund for State Bureau of
Highway Patrol Overtime Expenditures.
Council Member Smalley MOVED for adoption of Ordinance No. 2486 -2010 and
Council Member Marquis SECONDED the motion.
The floor was opened for public hearing. There being no one wishing to speak, the
public hearing was closed. There were no Council comments.
VOTE:
*Student Representative Coffman: Absent
-133-
Bo le i Yes
Porter
Yes
Smalle
Yes
I Moore 1 Yes
Eldrid;�e
Eldridge
Yes
Yes
Molloy Yes
Yes
I
Boyle
Yes
Porter
Yes
Smalley Yes
Moore
Yes
Eldridge
Yes
Marquis I Yes J
Molloy
Yes
I
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 11
MOTION PASSED UNANIMOUSLY.
D -4. Ordinance No. 2487 -2010 Increasing Estimated Revenues and
Appropriations by $8,569.75 in the General Fund for State Traffic Grant
Overtime Expenditures.
MOTION:
Council Member Marquis MOVED for adoption of Ordinance No. 2487 -2010 and
Council Member Eldridge SECONDED the motion.
The floor was opened for public hearing. There being no one wishing to speak, the
public hearing was closed. There were no Council comments.
VOTE:
*Student Representative Coffman: Absent
MOTION PASSED Ulv.rannvnJUSk x.
D -5. Ordinance No. 2488 -2010 Amending KMC Chapter 6.05, Voting
Qualifications and Procedures, to Change the Time for the Meeting of the
Canvassing Board, to Amend the Process for Absentee Voting by
Directing the Use of Pre -Paid Postage Return Envelopes and Reducing
the Number of Witnesses Required, to Expand Certain Records Retention
Requirements, and to Make Conforming Amendments.
MOTION:
Council Member Smalley MOVED for adoption of Ordinance No. 2488 -2010 and
Council Member Eldridge SECONDED the motion.
The floor was opened for public hearing. There being no one wishing to speak, the
public hearing was closed. There were no Council comments.
VOTE:
-134-
Boyle
Yes
Porter
Yes
Smalley
Yes
Moore
Yes
Eldridge
Yes
Marquis
Yes
1 Molloy
Yes
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 12
*Student Representative Coffman: Absent
MOTION PASSED UNANIMOUSLY.
D -6. Resolution No. 2010.31 Requesting the Kenai Peninsula Borough to
Allocate $2,000,000 of its Volume Cap of Recovery Zone Facility Bonds to
the City of Kenai for the Issuance of Revenue Bonds to Fund the
Construction of a Commercial Building in the City.
MOTION:
Council Member Eldridge MOVED for approval of Resolution No. 2010 -31 and
requested UNANIMOUS CONSENT. Council Member Smalley SECONDED the motion.
The floor was opened to public hearing. There being no one wishing to speak, the
public hearing was closed. It was explained what the additional steps would be prior
to issuance of the bonds. It was also noted, there would be no cost to the City or
creation of debt to the City with regard to the bonds.
VOTE:
There were no objections. SO ORDERED.
D -7. Resolution No. 2010_32 Awarding a Contract to Harbor Enterprises,
Inc., d /b /a Alaska Oil Sales, for Furnishing and Dispensing of Diesel and
Unleaded Fuel.
MOTION:
Council Member Smalley MOVED for adoption of Resolution No. 2010 -32. Council
Member Eldridge SECONDED the motion and requested UNANIMOUS CONSENT.
The floor was opened for public hearing. There being no one wishing to speak, the
public hearing was closed. It was explained which gas station would be used.
VOTE:
There were no objections. SO ORDERED.
ITEM E: MINUTES
E -1. Regular Meeting of May 19, 2010 Removed from Consent Agenda.
-135-
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 13
MOTION:
Council Member Marquis MOVED to correct the minutes at Item 3 -5a, correcting the
resolution number from 209 -68 to 2009 -68 and approve the minutes as corrected.
Council Member Eldridge SECONDED the motion and requested UNANIMOUS
CONSENT.
VOTE:
There were no objections. SO ORDERED.
E-2.
agenda.
May 24, 2010 Budget Work Session Notes Approved by consent
ITEM F: UNFINISHED BUSINESS None.
ITEM G: NEW BUSINESS
G -1. Ratification of Bills
MOTION:
Council Member Smalley MOVED to ratify the bills. Council Member Eldridge
SECONDED the motion and requested UNANIMOUS CONSENT.
There were no public or Council comments.
VOTE:
There were no objections. SO ORDERED.
G -2. Approval of Purchase Orders Exceeding $15,000
MOTION:
Council Member Smalley MOVED for approval of the purchase orders exceeding
15,000. Council Member Eldridge SECONDED the motion and requested
UNANIMOUS CONSENT.
There were no public or Council comments.
VOTE:
There were no objections. SO ORDERED.
-136-
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 14
G -3. Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform
Plumbing Code, to Delete the Local Requirement That Underground
Water Service Pipe Less Than Two Inches in Diameter Must be in Copper.
Introduced by approval of the Consent Agenda.
G -4. Ordinance No. 2490 -2010 Increasing Estimated Revenues and
Appropriations by $4,255 in the Airport Fund for a Donation Received
From the Kenai Watershed Forum for the City's Summer Bird Hazing
Program at the Kenai Airport.
Introduced by approval of the Consent Agenda.
G -5. Ordinance No. 2491 -2010 Increasing Estimated Revenues and
Appropriations by $1,500,000 in the Library Improvements Capital
Project Fund.
Introduced by approval of the Consent Agenda.
G -6. Ordinance No. 2492 -2010 Reducing Estimated Revenues and
Appropriations by $1,500,000 in the General Fund and Library
Improvements Capital Project Fund.
Introduced by approval of the Consent Agenda.
G -7. Ordinance No. 2493 -2010 Amending KMC 13.40.040 to Provide for a
Speed Lirnit of Fifteen (15) Miles Per Hour While Driving Motorized
Vehicles on a Portio o f the North Chore Public Beach Within the Ci y cf
Kenai and Making Technical Corrections.
Removed from the Consent Agenda.
MOTION TO INTRODUCE:
Council Member Boyle MOVED to introduce Ordinance No. 2493 -2010 and Council
Member Molloy SECONDED the motion.
The floor was opened to public hearing. There being no one wishing to be heard, the
public hearing was closed.
Council comments included:
Ordinance No. 2493 -2010 was a re- introduction of an ordinance
introduced during the last year, was postponed, and then removed from pending
legislation.
Residents of the beach area requested an ordinance be considered,
although no plan was submitted.
-137-
Boyle
Yes
Porter
No
No
Smaller
Marquis
Yes
Yes
Moore
No
iYes
Eldridge
I Molloy
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 15
The ordinance did not reflect comments made during the work session
with residents.
Better to wait until after the fishing season.
Suggestion the introduction be defeated and a new ordinance be
developed incorporating concerns from the work session and bring it back for
consideration next year.
An ordinance was drafted by Administration related to both speed limits
on the beach and off -road vehicle use on the beach as well as throughout the City.
Current code allows for ten mph in the proximity of people and 25 mph
away from people.
The reason a new ordinance was brought forward was because the
previous ordinance was tabled and then removed from pending legislation because no
substitute ordinance had been provided for consideration.
Main concern is the safety of people on the beach.
Administration could bring a substitute ordinance forward at the next
meeting as it was nearly finalized, though would be better to bring it forward after the
dip net season to see what kind of problems may take place that would need to be
addressed in the ordinance.
Suggestion to postpone or to introduce and then postpone and placed in
pending legislation as a reminder.
VOTE ON INTRODUCTION:
*Student Representative Coffman. Absent
MOTION PASSED.
MOTION TO POSTPONE:
Council Member Molloy MOVED to postpone Ordinance No. 2493 -2010 for public
hearing at the first meeting in August, 2010. Council Member Smalley SECONDED
the motion.
Council comments included:
Suggestion to postpone to September after the fishing season in order to
include the set netters in the conversation.
Intent was to allow Administration and Council Member Boyle to prepare
a substitute incorporating comments received during the work session. If additional
time was needed, the ordinance could be postponed to another date.
VOTE ON POSTPONEMENT:
-138-
Boyle
No
Porter Yes
Smalley
Yes
Moore
Yes
Eldridge Yes
Marquis
Yes
Molloy
Yes
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 16
*Student Representative Coffman: Absent
MOTION PASSED.
G -8. Action Item Appointment to Kenai Peninsula Borough Planning
Commission.
MOTION:
Council Member Smalley MOVED to recommend Philip W. Bryson be appointed to the
Kenai Peninsula Borough Planning Commission and requested UNANIMOUS
CONSENT. Council Member Eldridge SECONDED the motion.
There were no public or Council comments.
VOTE:
There were no objections. SO ORDERED.
G -9. Action Item Schedule Work Session /Town Hall Meeting
Collaborative Leadership Training Review.
Council requested the item be placed on the August 18, 2010 Council meeting agenda.
ITEM H: COMMISSION /COMMITTEE REPORTS
H -1. Council on Aging Council Member Boyle noted the May 13, 2010
meeting summary was included in the packet and noted the next meeting was
scheduled for June 10, 2010.
H -2. Airport Commission Council Member Moore reported the May 13,
2010 meeting had been cancelled and reminded all of the Air Fair event on June 5.
H -3. Harbor Commission Council Member Smalley reported the next
meeting was scheduled to be held on June 7, 2010,
H -4. Library Commission Council Member Marquis reported the June 1
meeting had been cancelled due to a lack of quorum and the next meeting was
scheduled for August 3, 2010.
-139-
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 17
H -5. Parks Recreation Commission Council Member Boyle reported the
Commission met in a work session with members of the public to discuss development
of a park on Marathon Road which was well attended.
H -6. Planning Zoning Commission Council Member Molloy reported on
actions taken at the May 26, 2010 meeting, noting the meeting minutes were included
in the packet. The next meeting would be held on June 9, 2010.
11 -7.
H -7a.
Miscellaneous Commissions and Committees
Beautification Committee No meeting.
II-7b. Alaska Municipal League Report Council Member Smalley reported
he would be attending a teleconferenced meeting on June 3 related to the gag law
initiative.
H -7c. Mini -Grant Steering Committee Council Member Moore reviewed the
May 21, 2010 meeting summary which was included in the packet.
H -7d. Kenai Convention Visitors Bureau No report.
H -7e. Reports of KPB Assembly, Legislators and Councils Assembly
Member Smalley reported the next meeting was scheduled for June 8, 2010.
ITEM I: REPORT OF THE MAYOR Mayor Porter noted the following:
The Spring /Summer newsletter was mailed and reviewed an adopt -a-
street program discussed in the document.
She attended the Little League opener, Soap Box Derby, and the
Alternative School graduation.
She attended the weekly Chamber of Commerce luncheon at which
Senator Murkowski was the speaker.
Noted there were dead trees needing to be removed at the multipurpose
facility. Comment was made there were other areas of the City needing trees removed
and encouraged Administration to seek funding for a removal project.
ITEM J: ADMINISTRATION REPORTS
J -1. City Manager City Manager Koch's report included the following:
Comments related to the work session held prior to the meeting on water
treatment options.
Administration was exploring a layout for additional Airport lease lots
which would not require a significant amount of capital from the Airport Fund.
Met with airport lessees regarding five -year re- evaluation of leases.
Expected to know by late on June 8 with regard to whether State funds
would be awarded to the City of Kenai.
Forwarded bluff stabilization project information to Senator Murkowski
for inclusion in the Water Resources Development Act bill.
-140-
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 18
Explained the City of Kenai was the only municipality in the Borough
requesting funding through a Recovery Zone bond.
Noted the Parks Recreation Commission work session related to the
development of a park on Marathon Road was very successful due to the efforts of
Parks Recreation Director Frates.
Referred to the article included in the packet entitled, "Top 200 Towns for
Outdoorsmen" where Kenai was listed as No. 32.
Reported he omitted the resolution setting the mill levy on the meeting's
agenda and requested a special Council meeting be held on Monday, June 7, 2010 for
that purpose.
Council scheduled a special Council meeting for Monday, June 7, 2010 to be held in
the Council Chambers and begin at 7:00 p.m.
J -2. Attorney No report.
J -3. City Clerk Clerk Freas noted the following information:
Referencing the Scheduling of a Work Session related to the Town Hall
meeting and Collaborative Leadership Training Review which was included on the
agenda, she noted it was requested by the Mayor to be included on the agenda during
the May 19, 2010 Council Meeting. The information was requested to be placed in the
packet when Resolution No. 2009 -68 would be before Council again.
Presented Council with a photo submitted by the 2010 Kenai Central
High School Girls Soccer Team to say thank you for the City's support.
Referred to her memorandum included in the packet which explained the
Board of Adjustment Hearing in the Goggia matter, was cancelled due to the
withdrawal of the appeal.
ITEM K:
K -1.
None.
K -2.
Citizens (Public comment Umited to 5 minutes per speaker)
Council
DISCUSSION
Smalley Commented on the budget process and noted he met with the City
Manager and Finance Director with budget related questions and stated his intentions
for possible amendments. Amendments to the budget must be made during a Council
meeting and may not be done during a work session. The Council appreciated the
taxpayers and the City employees and were thankful of the work done and the efforts
to make the City of Kenai the best place to work, live and recreate.
Moore No comments.
Eldridge Stated the budget hearing were the most grueling in which he had
been involved; it is important for all Council members to attend budget work sessions;
-141-
KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 19
the budget was balanced with a surplus and the mill rate would (if approved) would
match the mill rate of the Kalifornsky Beach Road area.
Molloy Thanked the Airport Manager for the Air Fair t- shirts.
Agreed with the commendation to the Finance Director for the
work on the recovery zone financing.
Appreciated the information related to the work session and water
treatment options.
The birding festival, which took place over the weekend, was well
attended and thanked the various organizations involved.
Boyle Thanked the Airport Manager for the Air Fair t- shirt.
Referring to the Outdoorsman article, noted the City of Kenai was
included in sub- categories as well.
BREAK TAKEN: 9:32 P.M.
BACK TO ORDER: 9:40 P.M.
EXECUTIVE SESSION Annual Evaluations of City Manager and City Clerk
MOTION:
Council Member Smalley MOVED to convene in an executive session of the Council of
the City of Kenai, pursuant to KMC 1.15.030, the City of Kenai Charter, and Alaska
Statutes 29.20.020 and 44.62.310, to conduct the annual evaluation of the City
Manager, b c h was a matter that could tend to prejudice the reputation and
character of another. The Council would convene first and then call in the City
Manager to attend. Council Member Eldridge SECONDED the motion and requested
UNANIMOUS CONSENT.
VOTE:
Marquis Commented on the budget process.
There were no objections.
EXECUTIVE SESSION:
BACK TO ORDER:
SO ORDERED.
9:45 P.M.
9:50 P.M.
Council Member Smalley reported that while in executive session, Council determined
they would like to complete the evaluation process of the City Manager and City Clerk
after the special meeting scheduled for Monday, June 7, 2010.
Mayor Porter noted Council also discussed and would prefer to schedule evaluations
separately from council meeting dates in the future.
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KENAI CITY COUNCIL MEETING
JUNE 2, 2010
PAGE 20
ITEM L: PENDING LEGISLATION (This item lists legislatio which will be
addressed at a later date as noted.)
Resolution No. 2009 -68 Supporting Actions Building and Maintaining a
Sustainable community Within the City of Kenai, and Supporting Networking with
Local Governments on the Kenai Peninsula. (Clerk's Note: At its May 19, 2010
meeting, Resolution No. 2009 -68 was substituted and then postponed to July 7, 2010
for consideration and an additional public hearing.)
Resolution No. 2010 -23 Opposing "An Initiative Creating an Alaska Ant-
Corruption Act" Which Will be on the 2010 Alaska Primary Election Ballot. (Clerk's
Note: At its April 7, 2010 meeting, Council postponed Resolution No. 2010 -23 to its July
7, 20I0 meeting. The motion to adopt is active.)
ITEM M: ADJOURNMENT
There being no further business to come before the Council, the meeting was
adjourned at approximately 9:54 p.m.
Minutes submitted by:
Carol L. Freas, 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 Council 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.
-143-
ITEM A: CALL TO ORDER
ITEM B:
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
AGENDA
KENAI CITY COUNCIL REGULAR MEETING
JUNE 7, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: /www.ci.kenai.ak.us
PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker. Persons
may give their time over to another speaker present, however no single speaker
present may speak for more than 30 minutes combined on their own and on others'
behalf)
1. Resolution No. 2010 -33 FiNang the Rate of Levy of Property Tax for
the Fiscal Year Commencing July 1, 2010 and Ending June 30, 2011.
EXECUTIVE SESSION Annual Evaluations of City Manager and City Clerk
ITEM D: ADJOURNMENT
-144-
Pat Porter, Mayor
Hai Smalley, Vice Mayor
Joe Moore
Ryan Marquis
Robert Molloy
Bar Eldridge
Mike Boyle
ITEM A: CALL TO ORDER
Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council
Chambers in the Kenai City Hall Building.
A -1. PLEDGE OF ALLEGIANCE
Mayor Porter led those assembled in the Pledge of Allegiance.
A -2.
ROLL CALL
The City Clerk took roll. Present were:
KENAI CITY COUNCIL REGULAR MEETING
JUNE 7, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http:l /www.ci.kenai.ak.us
MAYOR PAT PORTER, PRESIDING
A quorum was present.
Student Representative Hannah Coffman' Absent
A -3. AGENDA APPROVAL
MOTION:
Council Member Smalley MOVED for approval of the agenda as presented and
requested UNANIMOUS CONSENT. Council Member Eldridge SECONDED the
motion.
VOTE:
There were no objections. SO ORDERED.
ITEM B:
MINUTES
PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker. Persons
may give their time over to another speaker present, however no single speaker
present may speak for more than 30 minutes combined on their own and on others'
behalf.)
B -1. Resolution No. 2010 -33 Fixing the Rate of Levy of Property Tax for
the Fiscal Year Commencing July 1, 2010 and Ending June 30, 2011.
-145-
Porter
Yes
Smalley
Yes
Moore
Yes
Eldridge
Yes
Yes
Marquis
Yes
M olloy
Yes
Boyle
KENAI CITY COUNCIL SPECIAL MEETING
JUNE 7, 2010
PAGE 2
MOTION:
Council Member Molloy MOVED for adoption of Resolution No. 2010 -33 and Council
Member Marquis SECONDED the motion. Council Member Eldridge requested
UNANIMOUS CONSENT.
VOTE:
There were no objections. SO ORDERED.
EXECUTIVE SESSION Annual Evaluations of City Manager and City Clerk
MOTION:
Council Member Smalley MOVED to convene in an executive session of the council of
the City of Kenai pursuant to KMC 1.1.030, the City of Kenai Charter, and Alaska
Statutes 29.20.020 and 44.62.310, to conduct annual evaluations of the City Manager
and City Clerk, which are matters that could tend to prejudice the reputation and
character of another. Council. Member Eldridge SECONDED the motion.
Smalley explained, Council would discuss move into executive session, discuss the
evaluation between the members, and then have the City Manager join them to
discuss the evaluation. Upon completion of the City Manager's evaluation, the same
process would be taken with regard to the evaluation of the City Clerk.
VOTE:
MOTION PASSED UNANIMOUSLY.
TO EXECUTIVE SESSION:
BACK TO ORDER:
7:06 P.M.
11:03 P.M.
Council Member Smalley reported, during the executive session, Council discussed
the evaluation of the City Manager; brought the City Manager in and went through the
evaluation with him; it was a very favorable evaluation; there was discussion back and
forth; and, part of the conclusions agreed upon was a five percent (5%) pay increase
plus the 1.1% COLA, or a 6.1% increase.
Council also agreed to set July 12, 2010 to hold evaluations of the City Clerk and City
Attorney. City Clerk Freas requested clarification and it was stated, July 12, 2010
would be a Special Council Meeting to begin at 7:00 p.m.
-146-
KENAI CITY COUNCIL SPECIAL MEETING
JUNE 7, 2010
PAGE 3
ITEM D: ADJOURNMENT
There being no further business to come before the Council, the meeting was
adjourned at approximately 11:04 p.m.
Minutes submitted by:
Carol L. Freas, 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 Council vote and
shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes.
A student representative may not moue or second items during a council meeting.
-147-
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KENAA ALASKA
MEMO:
TO: Rick Koch
THRU: Terry Eubank, Finance Director
FROM: Kevin Lyon, Capital Projects Manager
DATE: 6114/2010
SUBJECT: PO over $15,000 not in packet
Rick
Village with a Past, et with a Future II
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 FAX: 907 283 -3014
An invitation to bid was issued on June 1, 2010 with and bids opened on June 9 Two
bids were received one for Tabulation A "CISCO Equipment" and one for Tabulation B
"Fiber Backbone
Purchase Orders were entered into the system the morning of June 10 for the projects.
The bid for tabulation A is over $15,000 and requires council approval.
In review of the packet page 148 the PO is not listed, nor is it listed on page 149 which
contain PO's for FY11. As this is a FY10 project, I understand that it should be
approved at the June 16 council meeting.
the of
KENAI, ALASKA
CITY OF KENAI
ORDINANCE NO. 2494 -2010
Suggested by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING
THE KENAI MUNICIPAL CODE, CHAPTER 23.55 ENTITLED "PERSONNEL"
INCLUDING, 23.55.030 ENTITLED, "QUALIFICATION PAY 23.50.010 ENTITLED,
"EMPLOYEE CLASSIFICATION AND, 23.55 FISCAL YEAR 2011 OPERATING
BUDGET SALARY SCHEDULE.
WHEREAS, designation of Certified Municipal Clerk, awarded by the International
Institute of Municipal Clerks, is offered to employees within the Office of the City Clerk
and by the approval of the FY2011 Annual Budget, employees possessing this
credential shall receive certification pay equal to 2.5% of the employee's base pay; and,
WHEREAS, with the approval of the FY2011 Annual Budget, the class titles and /or
ranges of Public Works Administrative Assistant, Parks and Recreation Administrative
Assistant, Senior Center Administrative Assistant, and Library and Senior Directors
were changed and the Fiscal Year 2011 Operating Budget Salary Schedule was
established.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, KIVIC Chapter 23.55 entitled, "Personnel" is amended as follows:
Section 1. Foust. This is a Code Ordinance.
Section 2, Amendment of Section 23.50.010(b) of the Kenai Municipal Code: The
Kenai Municipal Code, Section 23.50.010(b), Employee Classification, is hereby
amended as follows:
(b) ADMINISTRATIVE SUPPORT
CLASS CODE CLASS TITLE RANGE
201 Department Assistant I 3
202 Department Assistant II 7
203 Administrative Assistant I 8
204 Accounting Technician I 10
205 Accounting Technician II 11
206 Accountant 16
207 Legal Administrative Assistant I 9
208 Legal Administrative Assistant lI 11
209 Legal Assistant 15
210 Administrative Assistant II 9
211 Administrative Assistant III [12] 10
212 Department Aide 1
213 [PARKS AND RECREATION [10]
ADMINISTRATIVE ASSISTANT]
Assistant to the City Manager 12
New Text Underlined; [DELETED TEXT BRACKETED
-150-
Ordinance No. 2494 -2010
Page 2 of 4
214 Library Assistant II 6
[215] [SENIOR CENTER ADMINISTRATIVE 10)
ASSISTANT]
[216) 215 Parks and Recreation Supervisor 6
[217[ 216 Parks and Recreation Operator 9
[218) [PUBLIC WORKS ADMINISTRATIVE [10]
ASSISTANT]
Section 3. Amendment of Section 23.50.010(d) of the Kenai Municipal Code: The
Kenai Municipal Code, Section 23.50.010(d), Employee Classification, is hereby
amended as follows:
(d) PUBLIC WORKS
CLASS CODE CLASS TITLE RANGE
401 Building Official 15
402 Shop Foreman 16
403 Street Foreman 15
404 Sewer Treatment Plant Operator 13
405 Water and Sewer Operator 13
406 Mechanic 1 12
407 Equipment Operator I 1
408 Mechanic 1I 14
409 Street and Airport Lead Operator 12] 14
410 Water and Sewer Foreman 15
412 Building Maintenance Technician 11
413 Sewer Treatment Plant Lead Operator 14
414 Sewer Treatment Plant Foreman 15
416 Engineering; Safety Technician 12
417 Airport Operations Specialist 11
418 Airport Operations Supervisor 15
419 Building Maintenance Lead Technician 12
420 Water and Sewer Lead Operator 14
Section 4. Amendment of Section 23.50.010(e) of the Kenai Municipal Code: The
Kenai Municipal Code, Section 23.50.010(e), Employee Classification, is hereby
amended as follows:
(e) SOCIAL SERVICES
501 Library Director* [17] 18
502 Senior Citizen Program Director* [17] 18
503 Parks Recreation Director* 17
New Text Underlined DELETED TEXT ERACKETED1
-151-
Ordinance No. 2494 -2010
Page 3 of 4
Section 5. Amendment of Section 23.55 of the Kenai Municipal Code entitled Fiscal
Year 2011 Operating Budget Salary Schedule: The Kenai Municipal Code, Section
23.55 Fiscal Year 2011 Operating Budget Salary Schedule, is hereby amended as
follows:
FISCAL YEAR 2011 OPERATING BUDGET SALARY SCHEDULE
Range A B C D E F AA BB CC
Step
1 18,917 19,390 19,863 20,336 20,808 21,281 21,754 22,227 22,700
1.1 19,831 20,327 20,822 21,318 21,814 22,310 22,806 23,303 23,799
2 21,118 21,646 22,174 22,702 23,230 23,758 24,286 24,814 25,342
2.1 22,241 22,798 23,353 23,909 24,465 25,021 25,577 26,133 26,689
2.2 23,529 24,117 24,706 25,293 25,88I 26,468 27,056 27,644 28,231
2.3 24,706 25,323 25,941 26,559 27,177 27,795 28,413 29,032 29,650
2.4 28,870 29,592 30,314 31,035 31,756 32,477 33,199 33,920 34,641
2.5 32,677 33,494 34,311 35,128 35,945 36,761 37,578 38,395 39,211
3 32,896 33,717 34,539 35,361 36,183 37,004 37,826 38,648 39,469
4 34,540 35,404 36,268 37,132 37,996 38,860 39,724 40,587 41,451
5 36,269 37,177 38,084 38,991 39,899 40,806 41,713 42,621 43,528
6 38,085 39,037 39,990 40,942 41,894 42,846 43,798 44,750 45,702
7 39,997 40,997 41,996 42,996 43,995 44,995 45,994 46,994 47,993
8 42,014 43,064 44,115 45,166 46,217 47,268 48,319 49,370 50,420
9 44,097 45,199 46,301 47,404 48,506 49,608 50,710 51,812 52,915
10 46,289 47,447 48,605 49,762 50,920 52,077 53,235 54,392 55,550
11 48,599 49,815 51,030 52,246 53,461 54,677 55,892 57,108 58,323
12 51,051 52,327 53,603 54,879 56,155 57,432 58,708 59,984 61,260
13 53,569 54,908 56,248 57,587 58,926 60,265 61,605 62,944 64,283
14 56,283 57,691 59,099 60,506 61,914 63,322 64,730 66,137 67,545
15 59,099 60,576 62,054 63,531 65,009 66,486 67,964 69,441 70,919
16 62,025 63,575 65,125 66,675 68,225 69,775 71,325 72,875 74,424
17 65,137 66,766 68,394 70,023 71,652 73,281 74,910 76,539 78,I68
18 68,393 70,102 71,812 73,521 75,230 76,940 78,649 80,358 82,068
19 71,796 73,591 75,386 77,181 78,976 80,770 82,565 84,360 86,155
20 75,419 77,304 79,190 81,076 82,962 84,848 86,733 88,619 90,505
21 79,193 81,172 83,151 85,131 87,110 89,089 91,068 93,048 95,027
22 83,104 85,182 87,260 89,338 91,416 93,494 95,572 97,650 99,728
23 87,272 89,454 91,636 93,818 96,000 98,182 100,364 102,546 104,728
24 91,753 94,047 96,341 98,635 100,929 103,223 105,517 107,811 110,105
Section 6. Amendment of Section 23.55.030 of the Kenai Municipal Code: The Kenai
Municipal Code, Section 23.55.030, Qualification Pay, is hereby amended as follows:
23.55.030 Qualification Pay
(4) City Clerk's Office: Certification in accordance with International
Institute of Municipal Clerks.
Certified Municipal Clerk 2.5% of the employee's base pay
New Text underlined' [DELETED TEXT BRACKETED]
-152-
Ordinance No. 2494 -2010
Page 4 of 4
Section 7. Severability: If any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby
declares that it would have enacted the remainder of this ordinance even without such
part, provision or application.
Section 8. Effective date: Pursuant to KMC 1.15,070(f), this ordinance shall take
effect one month after adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of
July, 201.0.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
PAT PORTER, MAYOR
New Text Underlined; (DELETED TEXT BRACKETED]
-153-
Introduced: June 16, 2010
Adopted: July 7, 2010
Effective: August 7, 2010
the c yof
KENAI, ALASKA
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: June 10, 2010
Re: Ordinance 2494 -20I0
laye with a Past, C' y with a Mare I/
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907 283 -3014
Ordinance 2494 -2010 codifies the changes to the personnel section of the Kenai Municipal Code
that were adopted with the passage of the FYI 1 City of Kenai Budget. Changes included:
1. Elimination of department specific administrative assistants (Public Works, Parks and
Recreation, and Senior Center) at a range 10 and classification of the employees in those
jobs as administrative assistant 1II range 10. There was no financial impact as a result of
this change.
2. Creation of the Assistant to the City Manager position at range 12. The City Manager's
Assistant was previously the only Administrative Assistant III range 12 employee of the
City. With the reclassification of the Administrative Assistant to range 10 the need
existed to create a ne w position for the City Manager's Assistant to maintain the positions
current pay range of 12. There was no financial impact as a result of this change.
3. Reclassify the Street and Airport Lead Operator position from range 12 to range 14. The
reclassification will align all lead positions at the City at a range 14 as all have similar job
requirements. FYI 1 estimated cost of the change is $1,759.
4. Reclassify the Library and Senior Citizen Program Directors from range 17 to range 18,
FYI1 estimated cost of the change is S2,609 and 52,150 respectively.
5. Adoption of the FYI1 Salary Schedule that incorporated a 1.1% Cost of Living
Allowance (COLA) increase. The COLA increase has an estimated FYI1 salary and
benefit cost to the City of 595,556 for all Funds.
6. Added qualification pay for employees earning the designation of Certified Municipal
Clerk from the International Institute of Municipal Clerks. The increase is 2.5% of the
employee's base salary. FY11 estimated cost of the change is 51,488.
-154-
eh«ry °f
KENAI. ALASKA
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $50,000 IN THE WATER, SEWER
AND STREETS CAPITAL PROJECT FUND FOR PUBLIC ROAD, WATER, AND SEWER
IMPROVEMENTS.
WHEREAS, the State of Alaska Department of Commerce, Community, and Economic
Development awarded a grant of $50,000 to the City of Kenai for water, sewer and
street improvements; and,
WHEREAS, it is in the best interest of the City of Kenai to utilize these grant funds for
these improvements.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that estimated revenues and appropriations be increased as follows:
Water Sewer and Street Improvements Capital Project Fund
Increase Estimated Revenues:
State Grant
Increase Appropriations:
Construction $50,000
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of
July, 2010.
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance:
CITY OF KENAI
ORDINANCE NO. 2495 -2010
PAT PORTER, MAYOR
-155-
Suggested by: Administration
$50,000
Introduced: June 16, 2010
Adopted: July 7, 2010
Effective: July 7, 2010
theub
K KAI, ALASKA
"I/i��aye with a Past, C# with a Future
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907 -283 -7535 ext 221 FAX: 907 283 -3014
Rick Koch, City Manager
i f From: Terry Eubank, Finance Director
Date: June 10, 2010
Re: Ordinance 2495 -2010, 4 Avenue water upgrade project funding.
As described in Public Works Director Wayne Ogle's memo, the City in conjunction with a
Kenai Watershed Forum project will be upgrading the water system in the area of 4 Avenue.
Total projected cost for the City is $50,000 with $6,448 in contingency. The project was
competitively bid by the Kenai Watershed Forum with Foster Construction, Inc. being the lowest
responsive bidder for construction and Nelson Engineering providing design and construction
inspection services.
Funding for the project will be from a State of Alaska. Department of Commerce, Community,
and Economic Development Grant for Water, Sewer, and Street Improvements. The grant was
awarded in FY08 and has not been appropriated to a project. Ordinance 2495 -2010 appropriates
the funds to this project.
-156-
If
Commission /Committee /Board
Meeting Schedule
Scheduled Meeting Days
Planning Zoning Commission
Twice monthly
January through December,
Second Fourth Wednesdays
Library Commission
Monthly
First Tuesday of the month.
Second Thursday of the month.
Council on Aging
Monthly
Beautification Committee
Meetings held [MARCH,
MAY, JULY
SEPTEMBER] January,
April, May, September
Second Tuesday of the month.
and October
Parks Recreation Commission
Meetings held
[JANUARY, APRIL,
JULY OCTOBER)
August, October,
First Thursday of the month.
December, February,
and April
Airport Commission
Monthly
Second Thursday of the month.
Harbor Commission
Monthly
First Monday after first council
meeting of the month.
Advisory Cemetery Committee
Monthly
Third Thursday of the month.
fSunsets on December 31,
2010.)
KENAI CITY COUNCIL POLICY FOR
COMMISSION, COMMITTEE, BOARD AND COUNCIL
MEETINGS AND WORK SESSIONS
Commission, Committee Board Reappointment:
If, after a term (or consecutive term) of appointment has been completed, a commission,
committee or board member would like to be reappointed for an additional term, an application
must be submitted to council for consideration and approval.
Formation of Subcommittees of Commissions, Committees or Boards:
A subcommittee of a commission, committee or board may be for used for a specific function if
upon review by administration, it is indicated the subcommittee would be a governmental body
and a subcommittee of a public entity and if the formation is approved by Council.
If a subcommittee is approved by Council, the meetings of the subcommittee must be open to
the public; meeting notices shall be posted on the Official City Bulletin Board in Kenai City Hall
and on the city website at least five (5) days prior to the meeting; and the meetings may be
electronically recorded and the recordings (the official record) stored in the City Clerk's Office.
Meetine Schedules:
Until further notice, the commission /committee meeting schedule is as follows;
1. Commission, committees and boards, including Library, Parks Recreation and
Airport Commissions and Beautification Committee, shall meet as listed above.
2. Council on Aging shall meet monthly at the Kenai Senior Center.
3. Planning Zoning Commission and the Personnel Arbitration Board is
exempted from this meeting directive.
-157-
KENAI CITY COUNCIL POLICY FOR
COMMISSION, COMMITTEE, BOARD AND COUNCIL ON AGING
MEETINGS AND WORK SESSIONS
PAGE 2
4. Commissions, committees, boards and the Council on Aging may, with the City
Clerk's approval and notification of Council and City Manager, hold special meetings (for a
specific purpose) on an as- needed basis.
5. Commission, committee and board meetings may be cancelled by the City Clerk,
with notification of Council and City Manager, if cancellation is warranted, i.e. lack of agenda
items, pre knowledge of lack of quorum, etc
6. All commission, committee and board meetings (except Council on Aging) will be
held at Kenai City Hall and begin at 7:00 p.m. Council on. Aging meetings will be held at the
Kenai Senior Center and begin at 4:30 p.m. [OCTOBER THROUGH APRIL, AND 7:00 P.M., MAY
THROUGH SEPTEMBER]. Exceptions for subcommittee meetings may be made with advance
notice to and approval by the City Clerk.
7. Any additional commissions, committees, or boards formed will be set and
incorporated into the following meeting schedule by the City Council,
Minutes /Meeting Recording:
8. Excepting the Planning Zoning Commission and Personnel Arbitration Board,
responsibility of taking notes and electronically recording the commission, committee, board
meetings, falls to the department liaison (staff member) to the specific meeting group.
9. Summary minutes will be produced by the City Clerk from the department
liaison notes and provided to the City Council as official records of the meetings.
10. Electronic recordings of the meeting group, except the Planning Zoning
Commission, shall be kept for two years.
11. Planning Zoning Commission meeting recordings shall continue to be kept for
six years.
Work Sessions:
12. Commission, committees and boards shall receive the City Clerk's approval to
hold work sessions to be held on a date other than that of a regularly scheduled meeting or at
a time immediately prior to a regularly scheduled meeting, i.e. a 6:00 p.m. work session before
a 7:00 p.m. meeting.
13, Work sessions may not be held without the approval of the City Clerk unless
they occur on the night of and at the time of a regularly- scheduled advertised meeting.
14. During work sessions, only items on the work session agenda may be discussed
and no formal actions may be taken.
15. All commission, committee and board meetings must be given appropriate
public notice.
Basic Meeting Information:
15. Rules of Order: Pursuant to KMC 1.15.120(bl and KMC 1.90.050(c), in all
matters of parliamentary procedure, Robert's Rules of Order. as revised shall be applicable and
govern all meetings, unless as specified in KMC 1.15.060 (motions), KMC 1.15.100 (speaking).
and KMC 1.15.110 (voting).
16, Ouorum: No meeting may proceed in the absence of a quorum, i.e. a quorum is
more than one -half of the board /commission (quorum of the whole).
17. Motion: Pursuant to KMC 1.15.0601k), all motions require a second. A majority
of votes is required to pass a motion (three, if a five member board; four, if a seven member
commission; five, votes if a nine member board).
18. Speaking: In a meeting, members should be recognized by the Chair before
speaking,
-158-
KENAI CITY COUNCIL POLICY FOR
COMMISSION, COMMITTEE, BOARD AND COUNCIL ON AGING
MEETINGS AND WORK SESSIONS
PAGE 3
19. When is it a Meeting?: If any public business is discussed collectively by our
or a majority of members of one commission. committee, board. or council.
EFFECTIVE:
This directive shall take effect [NOVEMBER 20, 2008] June 17, 2010 and remain in effect until
modified by the Kenai City Council.
Approved by the Kenai City Council on the 119TH DAY OF NOVEMBER, 2008] ].6th day of June,
2010.
ATTEST:
Carol L. Freas, City Clerk
clf
Revised [11/19/08] 6 16 2010
-159-
PAT PORTER, MAYOR
TO:
FROM: Carol L. Freas, City Clerk
DATE: June 11, 2010 et/. ay
RE:
KENAI, ALASKA
Mayor and Council Members
'Village with a Past, GLty with a Fcltttre"
210 FidalgoAvenue, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 FAX: (907) 283 -3014
www.ci.kenai.ak.us
MEMO NDUM
AMENDMENTS KENAI CITY COUNCIL POLICY FOR COMMISSION,
COMMITTEE, BOARD AND COUNCIL ON AGING MEETINGS AND WORK
SESSIONS
The following amendments are needed to the Kenai City Council Policy for Commission,
Committee, Board and Council on Aging Meetings and Work Sessions (Policy):
Changing meeting schedule for the Beautification Committee and Parks
Recreation Commission.
Identifying the Advisory Cemetery Committee, pursuant to KMC
24.30.010(c), sunsets on December 31, 2010.
Identifying a change in the meeting time for the Council on Aging and
making the meeting time 4:30 p.m, year around.
Adding a paragraph entitled "Basic Meeting Information."
Changing the effective and passage dates.
A copy of the Policy is attached with the proposed amendments noted.
Does Council approve the amended Kenai City Council Policy for Commission,
Committee, Board and Council on Aging Meetings and Work Sessions as
provided?
-160-
TO: Mayor and Council Members
FROM: Carol L. Freas, City Clerk
DATE: June 11, 2010 vL
clf
Attachment
"I/illaye with a Past, Ci with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 FAX: (907) 283 -3014
www.ci.kenai.ak.us
MEMORANDUM
RE: JUNE 16, 2010 COUNCIL MEETING DISCUSSION ITEM:
AMENDMENTS TO KENAI MUNICIPAL CODE 1.10.060 ENTITLED,
"CALLING SPECIAL MEETINGS."
This discussion item was requested by Mayor Porter. Attached is a copy of the current
KMC 1.10.060 entitled, "Calling Special Meetings."
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1.10.010
Sections:
1.10.010
1.10.020
1.10.030
1.10.040
1.1 0.050
1.10.060
Chapter 1.10
THE COUNCIL
Makeup of the Council.
Powers.
Organization meeting.
Time of regular meeting.
Place of meeting.
Calling special meetings.
1.10.010 Makeup of the Council.
There shall be a City Council of seven (7)
members, consisting of the Mayor and six (6) other
Councilmen, as provided by the City Charter,
Section 2 -1. When the word "Councilman" or
"Councilmen" is used in the ordinances, in the
Charter, and elsewhere, it shall be deemed to
include the Mayor, as well as other Councilmen,
unless otherwise clearly indicated by the context.
(KC 1 -2)
1.10.020 Powers.
The Council shall have and may exercise all
legislative powers not prohibited by law or by the
City Charter. 1t shall have all powers delegated to it
by the City Charter, Section 2 -4, and other sections
thereof. (KC 1 -3)
1.10.030 Organization meeting.
The terms of newly elected Councilmen shall
begin at the time prescribed for the second regular
Council Meeting after their election, as provided by
the City Charter, Section 10 -2. At said meeting, the
Councilmen -elect present shall take and subscribe
to the oath or affirmation of office, which shall be
administered by the City Clerk or other authorized
person. At this meeting, or as soon thereafter as
practicable, the Council shall elect a Vice-Mayor
and otherwise organize for the ensuing year as
needed and undertake its duties. (KC 14)
(Kenai Sapp. No, 87, 4.067 4
1.10.040 Time of regular meeting.
The regular meeting of the Council of the City
of Kenai, Alaska shall be at a time set by a
resolution of the Council on the first and third
Wednesdays of every month unless circumstances
warrant deviation of the regular meeting date when
the Council, by majority vote, may change the date
and give public notice of such change. (KC 1 -5;
Ords. 476, 2139 -2006)
1.10.050 Place of meeting.
Meetings of the City Council, regular or
special, will be held in the Council Chamber in the
City Hall unless otherwise designated by the
Mayor. This provision shall not apply to executive
sessions of Council. (KC 1 -6; Ords. 217, 255, 654)
1.1.0.060 Calling special meetings.
The Mayor or any four Councilmen may call
special meetings of the Council. The City Clerk
shall give the notice of such meetings to each
Councilman or cause it to he left at a conspicuous
place at his abode or to be given to a member of his
amity at least fifteen (15) years old at his place of
abode, at least forty -eight (48) hours before the
ime of holding such special meeting. A special
meeting called on shorter notice then forty -eight
(48) hours shall be valid meeting if the Council, by
animous vote of all Councilmen present at the
eeting, adopts a motion or resolution finding that
an emergency justifying such meeting exists and
at the public interest requires the Council to meet
on shorter notice. (KC 1 -7)
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KENAI, AL SKA
MEMO:
Telephone: 907 283 -7535 FAX: 907 283 -3014 I I IR
795E
TO: City Council
FROM: Rick Koch
DATE: June 10, 2010
SUBJECT: City of Kenai's 401(A) Plan Discussion Item
The purpose of this correspondence is to discuss an amendment to the City's 401(A) plan.
Barring direction to the contrary from the Council, it is Administration's intention to amend the
401(A) plan to allow employees to borrow from their account after one -year of employment
with the City.
Attached is a memorandum from Terry Eubank, the Finance Director, providing additional
detail.
the ufr of
KENA� SKA
To: Rick Koch, City Manager
7/ Front: Terry Eubank, Finance Director
Date: June 10, 2010
Re: Amendment to the City's 401 (A) plan.
"Village with a Past, CL y with a Mare"
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 ext 221 FAX: 907- 283 -3014
The City funds a 401 (A) retirement plan for its full time employees. The 401 (A) plan was
established to provide employees a supplemental retirement benefit as the City opted out of the
Social Security System. By opting out of Social Security employees will at a minimum receive
reduced benefits and potentially a loss of the ability to draw on Social Security during retirement.
The City currently funds 4% of an employee's base pay to a maximum of $1,500 per year.
Employees are 100% vested in what has been contributed by the City. An employee has
requested the ability to borrow funds against their 401 (A) balance.
Currently the City's plan does not allow employee's to borrow funds from their 401 (A) plan and
the plan documents will have to amended to allow employee borrowing. Borrowing from the
plan would allow employee's to borrow from their account and repay the funds with all loan
interest being deposited in the employee's account. Loan provisions are common in retirement
plans and is an available option in the employee's 457 retirement plan offered at the City. The
457 retirement plan contains only employee contributions and the 401 (A) plan contains only
City contributions.
The key difference in loan provisions on a 401 (A) plan and a 457 only applies if the employee
leaves the City prior to repayment of the loan. In both instances the employee must either repay
the loan within 90 day of termination or the outstanding balance will be treated as a distribution
from the plan. Distributions from a 457 plan can occur at any age without penalty. The
distribution is simply reported as taxable income to the employee. Distributions from a 401 (A)
plan are subject to a 10% penalty if the employee is under the age of 591/2 in addition to being
taxable income to the employee.
The employee's balance in their 401 (A) account is the property of the employee and it is
recommended to accommodate the employee's ability to borrow against these funds. The plan
administrator provides employees wishing to borrow detailed information about the impacts of
such a decision.
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KENAI AIRPORT COMMISSION
JUNE 10, 2010
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
a. Discussion 2011 Goals and Objectives
b. Discussion Airport Bird Dog Update
ITEM 6: NEW BUSINESS
PENDING APPROVAL
AGENDA
ITEM 1: CALL TO ORDER AND ROLL CALL
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY April 15, 2010
ITEM 4: PERSONS SCHEDULED TO BE HEARD
a. Rick Koch, City Manager Proposed Changes to Apron Development
South End
ITEM 5: OLD BUSINESS
a. Discussion Supplemental Environmental Assessment for Kenai
Municipal Airport Improvement Projects
ITEM 7: REPORT
a. Commission Chair
b. Airport Manager
c. City Council Liaison
ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION ITEMS
a. Kenai City Council Meeting Action Agendas for May 19 and June 2,
2010.
b. Airport Manager's Report April and May 2010
c. April 2010 Enplanement
d. "Welcome Home Banner Clarion Dispatch Article
e. Consent of Agreement Lot 1A, F30 Subdivision Dan 0. Pitts
f. March 2010 Report Airport Permanent Fund
g. Mutual Rescission of Lease, ENA, LLC Lots 5 846, Block 1, FB0
Subdivision
h. Ordinance No. 2485 -2010
Lease Application Kenai Nikiski Pipe Line, LLC
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Letter from City Manager Kenai AFSS, FAA Lease DTFAAL -08 -L -00001
ITEM 11: ADJOURNMENT
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ITEM 1: CALL TO ORDER AND ROLL CALL
Chair Knackstedt called the meeting to order at approximately p.m. Roll was
confirmed as follows:
Commissioners present:
Commissioners absent:
Staff /Council Liaison present:
A quorum was present.
ITEM 2: AGENDA APPROVAL
MOTION:
KENAI AIRPORT COMMISSION
JUNE 10, 2010
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
CHAIR HENRY KNACKSTEDT, PRESIDING
MEETING SUMMARY
J. Zirul, J. Bielefeld, H. Knackstedt, L. Porter, G.
Feeken, and R. Rogers
E. Mayer
Airport Manager M. Bondurant, Council Member J.
Moore
Commissioner Zirul MOVED to hear Item 5b prior to Persons Scheduled to be Heard
and approve the agenda as amended. Commissioner Porter SECONDED the motion.
There were no objections. SO ORDERED.
ITEM 3: APPROVAL OF MEETING SUMMARY Ap 15, 2010
MOTION:
Commissioner Rogers MOVED to approve the meeting summary of April 15, 2010 and
Commissioner Zirul SECONDED the motion. There were no objections. SO
ORDERED.
ITEM 5 -b. Discussion Airport Bird Dog Update
Item was moved to be heard prior to Persons Scheduled to be Heard.
Olivia Pfeifer and Jane Brogan (Dog Whistle Goose Control) introduced the Airport
Bird Control Dog, "Rose" to the Commission and demonstrated the dog's obedience
commands. Commission thanked them for the presentation and wished them luck.
ITEM 4: PERSONS SCHEDULED TO BE HEARD
4 -a. Rick Koch, City Manager Proposed Changes to Apron Development
South End
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City Manager Koch reviewed a proposed change to the current Apron project, noting
with very little investment by the City, high quality lease lots could be developed at the
south end of the Apron; utilities were close by; and, the change had been forwarded to
FAA for its review.
ITEM 5: OLD BUSINESS
5 -a. Discussion 2011 Goals and Objectives
The Comm ssion reviewed the draft 2011 Goals Objectives which were included in
the packet.
MOTION:
Commission Member Rogers MOVED to add "historic" after "terminal picture display of
airport development" and approve the 2011 goals and objectives with the change.
Commissioner Zirul SECONDED the motion. There were no objections. SO
ORDERED.
5 -b. Discussion Airport Bird Dog Update
Heard prior to Persons Scheduled to be Heard.
ITEM 6: NEW BUSINESS
6 -a. Discussion Supplemental Environmental Assessment for Kenai
Municipal Airport Improvement Projects
Airport Manager Bondurant updated the Commission on the environmental
assessment, noting the comment period had been extended to June 4; two letters had
been received; and, Aries would be drafting a response for City review and approval
which would then be included in the final submission to FAA.
ITEM 7: REPORT
7 -a. Commission Chair Thanked the Airport employees for their hard work
on the Air Fair and added, he had enjoyed himself both the Soldotna and Kenai
airports.
7 -b. Airport Manager Bondurant reported the following items:
Tenth Air Fair was very successful and thanked the Commission
members who volunteered with the event.
There had been a lot of media coverage related to the Airport Bird Control
dog.
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AIRPORT COMMISSION MEETING
JUNE 10, 2010
PAGE 2
7 -c. City Council Liaison Council Member Moore reviewed the action
agendas of the May 19 and June 2, 2010 Council meetings which were included in the
packet.
ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS
Bielefeld Noted the EAA breakfast was very successful; 105 breakfasts were
sold; there were 43 poker run participants; and, there was interest from an Anchorage
EAA Chapter to participate in the 2011 Air Fair.
Noted the construction project was trouble free and he appreciated the
airport's efforts for safety.
He had a great time at the Air Fair.
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD None.
ITEM 10: INFORMATION ITEMS
10 -a. Kenai City Council Meeting Action Agendas for May 19 and June 2,
2010.
10 -b. Airport Manager's Report April and May 2010
10 -c. April 2010 Enplanernent
10 -d. "Welcome Home Banner Clarion Dispatch Article
10 -e. Consent of Agreement Lot 1A, FBO Subdivision Dan O. Pitts
10 -f. March 2010 Report Airport Permanent Fund
10 -g. Mutual Rescission of Lease, ENA, LLC Lots 5 866, Block 1, FBO
Subdivision
10 -h. Ordinance No. 2485 -2010
10 -i. Lease Application Kenai Nikiski Pipe Line, LLC
10-j. Letter from City Manager Kenai AFSS, FAA Lease DTFAAL -08 -L -00001
ITEM 11: ADJOURNMENT
MOTION:
Commissioner Zirul MOVED to adjourn and Commissioner Porter SECONDED the
motion. There were no objections. SO ORDERED.
There being no further business before the Commission, the meeting was adjourned at
approximately 8:27 p.m.
Meeting summary prepared and submitted by:
Carol L. Freas, City Clerk
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AIRPORT COMMISSION MEETING
JUNE 10, 2010
PAGE 3
AGENDA
ITEM 1: CALL TO ORDER ROLL CALL
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY May 10, 2010
ITEM 4: PERSONS SCHEDULED TO BE HEARD
ITEM 5: OLD BUSINESS
a. Discussion 2010 Goals and Objectives
ITEM 6: NEW BUSINESS
a. Discussion On -site User Survey Forms
ITEM 7: REPORTS
ITEM 8:
TTP1vr o.
a. Director
b. City Council Liaison
KENAI HARBOR COMMISSION MEETING
JUNE 7, 2010
CITY COUNCIL CHAMBERS
7:00 P.M.
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PENDING APPROVAL
COMMISSIONER COMMENTS /QUESTIONS
PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION
a. Kenai City Council Action Agendas of May 5 and 19, 2010,
ITEM 11: ADJOURNMENT
MEETING SUMMARY
ITEM 1: CALL TO ORDER ROLL CALL
Due to the absence of the chair and vice chair, Chair Pro Tempore Morin called the
meeting to order at approximately 7:03 p.m. Roll was confirmed as follows:
Commissioners present:
Commissioners absent:
Staff /Council Liaison present:
KENAI HARBOR COMMISSION MEETING
JUNE 7, 2010
CITY COUNCIL CHAMBERS
7:00 P.M.
CHAIR PRO TEMPORE PHIL MORIN, PRESIDING
P. Morin, W. Nelson
B. Osborn, G. Foster, W. Niederhauser, R. Peters,
T. Thompson
Public Works Director W. Ogle, Parks and Recreation
Director B. Prates
No quorum was present.
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY May 10, 2010
ITEM 4: PERSONS SCHEDULED TO BE HEARD None
ITEM 5: OLD BUSINESS
5 -a. Discussion 2010 Goals and Objectives
ITEM 6: NEW BUSINESS
6 -a. Discussion On -site User Survey Fonuus
ITEM 7: REPORTS
7 -a. Director
7 -b. City Council Liaison
ITEM 8: COMMISSIONER COMMENTS /QUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION
10 -a. Kenai City Council Action Agendas of May 5 and 19, 2010.
ITEM 11: ADJOURNMENT
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Due to lack of quorum, the meeting was adjourned at approximately 7:05 p.m.
Meeting summary prepared and submitted by:
Corene Hall, CMC, Deputy City Clerk
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HARBOR COMMISSION MEETNG
JUNE 7, 2010
RAGE 2
KENAI LIBRARY COMMISSION
KENAI COUNCIL CHAMBERS
JUNE 1, 2010
7:00 P.M.
AGENDA
ITEM 1: CALL TO ORDER ROLL CALL
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY May 4, 2010
ITEM 4: PERSONS SCHEDULED TO BE HEARD
ITEM 5: OLD BUSINESS
a. Discussion Library Expansion Update
b. Discussion Draft Library Code of Conduct
ITEM 6: NEW BUSINESS
a. Discussion Making Motions
ITEM 7: REPORTS
a. Director
b. City Council Liaison
ITEM 8: COMMISSION COMMENTS /QUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION
ITEM 11: ADJOURNMENT
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PENDING APPROVAL
a. Kenai City Council Action Agenda Items from May 5 and 19, 2010,
b. Friends of the Kenai Community Library Board Meeting Minutes of
May 11,2010.
KENAI LIBRARY COMMISSION
KENAI COUNCIL CHAMBERS
JUNE 1, 2010
7:00 P.M.
CHAIR PRO TEMPORE CAROL BRENCKLE, PRESIDING
MEETING SUMMARY
Due to the absence of the chair and vice chair, Commissioner Brenckle called the
meeting to order.
ITEM 1: CALL TO ORDER ROLL CALL
Chair Pro Tempore Brenckle called the meeting to order at approximately 7:00 p.m.
Roll was confirmed as follows:
Commissioners present:
Commissioners absent:
Staff /Council Liaison present:
C. Brenckle
E. Bryson, K. Glidden, J. Bookey, R. Peters, S. Harris
Library Director M. Joiner
No quorum was present.
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY May 4, 2010
ITEM 4: PERSONS SCHEDULED TO BE HEARD None
ITEM 5: OLD BUSINESS
5 -a. Discussion Library Expansion Update
5 -b. Discussion Draft Library Code of Conduct
ITEM 6: NEW BUSINESS
6 -a. Discussion Making Motions
ITEM 7: REPORTS
7 -a. Director
7 -b. City Council Liaison
ITEM 8: COMMISSION COMMENTS /QUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION
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10 -a. Kenai City Council Action Agenda Items from May 5 and 19, 2010.
10 -b. Friends of the Kenai Community Library Board Meeting Minutes of
May 11,2010.
ITEM 11: ADJOURNMENT
Due to lack of quorum, the meeting was adjourned at approximately 7:01 p.m.
Meeting summary prepared and submitted by:
Corene Hall, CMC, Deputy City Clerk
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LIBRARY COMMISSION MEETING
JUNE 1, 2010
PAGE 2
DATE: ,l J I D
NAME:
rti uyof
KENAI.
Resident of the City of Kenai?
Residence Address
EMPLOYER: )-`k (y.
NAME OF SPOUSE: �f /J
Current membership in organizations.
71)
0
5
Signature
CITY OF KENAI
"Village with a past City with a future."
BACKGROUND AND PERSONAL DATA
CANDIDATES FOR APPOINTMENT COMMITTEES AND
COMMISSIONS
1(
NCti O n
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RECEIVED
JUN -1 2010
KENAI CITY CLERK PHONE: 283 -7535, EXT. 231
FAX: 283 -5068
How long?
b S u3 c 7 rc n k s 1.(e riA., f4 K g '14 I 1
Mailing Address 514, 4 m (-41 Home Telephone Not u` /'3, OSG 0
Home Fax No, Business Telephone No 3 ftr S
Business Fax No, Email Address: 5 bar h. k 1DQII v r6a Lin t+n40 f 64,-vi
May we include your contact information on our web page? ALL If not all, what information may we
include?
Job Title. _1-
Past organizational memberships: e<\er L
St -h (10
COMMITTEES OR COMMISSIONS IN WHICH YOU ARE INTERESTED:
Coe r A- gem bnoxl
WHY DO YOU WANT TO BE INVOLVED WITH THIS COMMISSION OR COMMITTEE?
ref 5ev n: i J yu H-pce 1 NPe. S
WHAT BACKGROUND, EXPERIENCE, OR CREDENTIALS DO YOU POSSESS TO BRING TO THE BOARD,
COMMISSION OR COMMITTEE MEMBERSHIP?
RETURN TO:
KENAI CITY CLERK
210 FIDALGO AVENUE
KENAI, AK 99611
-D,i }-y.
S 6.- f
d r3aurs
1. CALL TO ORDER:
a. Roll Call
b. Agenda Approval
c. Consent Agenda
d. *Excused Absences
Commissioner Roy Wells
Commissioner Phil Bryson
2. *APPROVAL OF MINUTES:
a. *May 26, 2010
CITY OF KENAI
PLANNING ZONING COMMISSION
AGENDA
CITY COUNCIL CHAMBERS
June 9, 2010 7:00 p.m.
PENDING APPROVAL
*Ali items listed with an asterisk are considered to be routine and non controversial by the
Commission and will be approved by one motion. There will be no separate discussion of these items
unless a Commission Member so requests, in which case the item will be removed from the Consent
Agenda and considered in its normal sequence on the agenda as part of the General Orders.
3. SCHEDULED PUBLIC COMMENT: (10 Minutes)
4. CONSIDERATION OF PLATS:
a. PZ10 -17 Wild Rose Subdivision, TAY Addition (A subdivision of Tract A Wild Rose
Subdivision, Kenai River Addition). Plat submitted by Integrity Surveys, 43335 K -Beach Road,
Suite 10, Soldotna, Alaska.
b. PZI 0 -18 Karen Subdivision Moore Addition No. 2 (A resubdivision of Lot 3A Karen
Subdivision Moore Addition). Plat submitted by Whitford Surveying, PO Box 4032, Soldotna,
Alaska.
5. PUBLIC HEARINGS:
a. PZ10 -13 A resolution of the Kenai Planning and Zoning Commission recommending Kenai
City Council adopt updated ownership, zoning, and land use maps for the Comprehensive Plan
for the City of Kenai
b.
PZI 0-15 An application for a 4.8 foot side -yard setback variance for the property known as Lot
12, Block B, Beaver Creek Alaska Subdivision (6384 Kenai Spur Highway). Application
submitted by Zach H. Johnston, Peninsula Powersports, 6384 Kenai Spur Highway (P.O. Box
2886), Kenai, Alaska.
6. UNFINISHED BUSINESS:
7. NEW BUSINESS:
a. "PZ10 -16 Application for a home occupation permit for a daycare for the property
known as Lot 2, FIB Subdivision (409 North Gill Street, Apt. A), Kenai, Alaska.
Application submitted by Tamara Medcoff, PO Box 1815, Kenai, Alaska.
b. PZ09 -30 Conditional Use Permit Lynford Disque dha Circle D Restoration and Racing
(Outside Storage Yard) —2021 Wyatt Way (KN EI /2 W1 /2 NW1 /4 NW1 /4).
Discussion /revocation hearing.
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8. PENDING ITEMS:
9. REPORTS:
a. City Council
h. Borough Hann
c. Administration
g
10. PERSONS PRESENT NOT SCFIEDULED: (3 Minutes)
1.1. INFORMATION ITEMS:
r Grant Lake/Falls Creek Hydroelectric Project Initiation of Consultation Kenai
Hydro, LLC
12. COMMISSION COMMENTS QUESTIONS:
1 ADJOURNMENT:
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ITEM 1:
CALL TO ORDER
Chair Twait called the meeting to order at approximately 7:00 p.m.
1 -a. Roll Call
Roll was confirmed as follows:
Commissioners present:
Commissioners absent:
Staff/Council Liaison present:
A quorum was present.
1 -b. Agenda Approval
MOTION:
Commissioner Romain MOVED to approve the agenda as presented and Commissioner
Brookman SECONDED the motion. There were no objections. SO ORDERED.
1 -c.
MOTION:
1 -d.
Consent Agenda
CITY OF KENAI
PLANNING ZONING COMMISSION
JUNE 9, 2010
7:00 P.M.
CITY COUNCIL CHAMBERS
CHAIR JEFF TWAIT, PRESIDING
MINUTES
*Excused Absences
Commissioner Roy Wells
Commissioner Phil Bryson
Approved by consent agenda.
S. Romain, J. Twait, K. Rogers, J. Brookman,
K. Koester
R. Wells, P. Bryson (both excused)
City Planner M. Kebschull, City Planner
Administrative Assistant N. Carver, Council Member
R. Molloy, Deputy City Clerk C Hall
Commissioner Romain MOVED to approve the consent agenda and Commissioner
Koester SECONDED the motion. There were no objections. SO ORDERED.
*All items listed with an asterisk are considered to be routine and non-
controversial by the Commission and will be approved by one motion. There will be
no separate discussion of these items unless a Commission Member so requests, in
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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 2: *APPROVAL OF MINUTES May 26, 2010
Approved by consent agenda.
ITEM 3:
ITEM 4:
4 -a.
MOTION:
SCHEDULED PUBLIC COMMENT None
CONSIDERATION OF PLATS
PZ10 -17 Wild Rose Subdivision, TAY Addition (A subdivision of Tract A
Wild Rose Subdivision, Kenai River Addition. Plat submitted by Integrity
Surveys, 43335 K -Beach Road, Suite 10, Soldotna, Alaska.
Commissioner Romain MOVED to approve PZ 10 -17 with staff recommendations and
Commissioner Rogers SECONDED the motion.
City Planner Kebschull reviewed the staff report included in the packet, noting the
following requirements:
1. Plat note two requires a 25 foot setback.
2. Plat note five should specify City of Kenai construction standards.
3. Include property owner's names on the plat.
4. The requested street name is Tay Court.
5. Prior to recording the fin& plat, an as -built survey must be provided to
verify the subdivision does not create encroachments for the existing
structures.
6
An i ag re eme nt m ust b for w ith the Cit o f KPn a i
addressing the minimum improvements listed above. However, the final
agreement may include additional requirements determined as the plan
is reviewed.
7. ADEC approval for on -site water and septic systems serving the
subdivision.
Twait read the rules for public hearing and opened the meeting to public hearing.
Victor Hett, 1507 Barabara Drive, Kenai
erosion of the riverbank.
Terri Elliott, 1500 Barabara Drive, Kenai
covenants require one acre Lots.
PLANNING ZONING COMMISSION MEETING
JUNE 9, 2010
PAGE 2
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Spoke in opposition to the plat, noting
Spoke in opposition to the plat, noting
Sharalyn Wright, 1412 Barabara Drive, Kenai Spoke in opposition to the plat,
noting water quality and traffic issues.
Henry Knackstedt, 1602 Barabara Drive, Kenai Spoke in opposition to high
density development and believed the size of the original septic system would not
handle two lots.
Scott Huff, Integrity Surveys Noted the developer planned on moving the
pedestrian easement between Lots A3 and A4 once the house was demolished or
moved.
Lanny Honaker, 1500 Barabara Drive, Kenai Spoke in opposition to the plat,
noting river access, minimized road width and added foot traffic on the riverbanks.
Tom Wright, 1412 Barabara Drive, Kenai Spoke in opposition to the plat, noting
concern regarding smaller lot sizes and potential health hazards.
Wendell Fowler, 1504 Barabara Drive, Kenai Spoke in opposition to the plat,
requesting the covenants be upheld.
David Goggia, 1529 Clipper Circle, Kenai Spoke in support of the plat, noting
Craig Young was the developer and would own one lot, selling the half -acre lots would
help pay for the development of the remaining lots, and he would live in the house
year round.
There being no one else wishing to speak, the public hearing was closed.
Commissioner comments included:
Homeowners must deal with covenants, as the City cannot enforce
covenants.
DEC would address concerns expressed by the public.
The lot sizes were approved in the code.
Thanked everyone for their testimony and noted hearing very valid
concerns.
The Kenai Peninsula Borough allowed 50 -foot street widths.
MOTION TO AMEND:
Commissioner Romain MOVED to amend PZ10 -17 by adding "Allow a 50 foot
minimum right of way" to the requirements of the plat. Commissioner Koester
SECONDED the motion.
VOTE ON AMENDMENT:
Romain
Bryson
YES
EXCUSED
Wells EXCUSED Twai
Rogers
PLANNING ZONING COMMISSION MEETING
JUNE 9, 2010
PAGE 3
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YES
YES I Brockman YES
Romain
YES
e
I EXCUSED
Twait
YES
Bryson
EXCUSED
Rogers
1 YES
Brookman
YES
Koester
YES
Romain
YES
Wells
EXCUSED
Twait
YES
Bryson
EXCUSED
1 Rogers
YES
Brookman
YES
Koester
YES
MOTION PASSED UNANIMOUSLY.
There was no further discussion on the motion.
VOTE ON MAIN MOTION AS AMENDED:
MOTION PASSED UNANIMOUSLY.
4 -b. PZ10 -18 Karen Subdivision Moore Addition No. 2 (A resubdivision of
Lot 3A Karen Subdivision Moore Addition). Plat submitted by Whitford
Surveying, PO Box 4032, Soldotna, Alaska.
MOTION:
Commissioner Remain MOVED to approve PZ10 -18 with staff recommendations and
Commissioner Brookman SECONDED the motion.
Kebschull reviewed the staff report included in the packet, recommending approval
with the following requirement:
1. Require a plat note identifying the non conforming status of the
structures on the plat as defined by Kenai Municipal Code 14.20.050.
Twait opened the meeting to public hearing. There being no one wishing to speak, the
public hearing was closed. There was no discussion.
VOTE:
MOTION PASSED UNANIMOUSLY.
ITEM 5:
PUBLIC HEARINGS
5 PZ10 -13 A resolution of the Kenai Planning and Zoning Commission
recommending Kenai City Council adopt updated ownership, zoning, and
land use maps for the Comprehensive Plan for the City of Kenai.
PLANNING ZONING COMMISSION MEETING
JUNE 9, 2010
PAGE 4
-182-
Romain
YES
Wells
EXCUSED I Twait
YES
Bryson
EXCUSED
Rogers
YES I Brookman
YES
Koester
YES
MOTION:
Commissioner Romain MOVED to approve PZ10 -13 and Commissioner Brookman
SECONDED the motion.
Kebschull reviewed the staff report included in the packet which reviewed an overview
of rezones occurring since 2008 and the status of the implementation measures from
the Comprehensive Plan
Twait opened the meeting to public hearing. There being no one wishing to speak, the
public hearing was closed. There were no Commissioner comments.
VOTE:
MOTION PASSED UNANIMOUSLY.
5 -b. PZ10 -15 An application for a 4.8 foot side -yard setback variance for the
property known as Lot 12, Block B, Beaver Creek Alaska Subdivision
(6384 Kenai Spur Highway). Application submitted by Zach H.
Johnston, Peninsula. Powersports, 6384 Kenai Spur Highway (P.O. Box
2886), Kenai, Alaska.
MOTION:
Commissioner Remain MOVED to approve PZ10 -15 with staff recommendations and
Commissioner Rogers SECONDED the motion.
Kebschull reviewed the staff report included in the packet and recommended approval
of the variance.
Twait opened the meeting to public hearing.
Zach Johnston, Owner Clarified the addition needed to be 20 feet wide to
accommodate a 14 foot garage door to allow access to larger boats.
There being no one wishing to speak, the public hearing was closed.
Commissioner comments included:
Thanked Mr. Johnston for clarification.
Appreciated the aesthetics of the building and believed the addition
would be well received.
PLANNING ZONING COMMISSION MEETING
JUNE 9, 2010
PAGE 5
-183-
Remain
YES
Wells
EXCUSED
Twait
YES
Bryson
EXCUSED
Rogers
YES
Brookman
YES
Koester
YES
VOTE:
MOTION PASSED UNANIMOUSLY.
Twait read the 15 -day appeal process procedure.
ITEM 6: UNFINISHED BUSINESS None
ITEM 7: NEW BUSINESS
7 *P210-16- Application for a home occupation pe„uit for a daycare for
the property known as Lot 2, FJB Subdivision (409 North Gill Street, Apt.
A), Kenai, Alaska. Application submitted by Tamara Medcoff, PO Box
1815, Kenai, Alaska.
Approved by consent agenda.
7 -b.
Discussion /Revocation Hearing PZ09 -30 Conditional Use Permit
Lynford Disque dba Circle D Restoration and Racing (Outside Storage
Yard) 2021 Wyatt Way (KN E1 /2 W1 /2 NW1 /4 NW1 /4).
Kebschull reviewed the staff report included in the packet and noted the Revocation
Hearing was scheduled for the June 23, 2010 meeting.
ITEM 8: PENDING ITEMS None
ITEM 9: REPORTS
9 -a. City Council Council Member Molloy reviewed the action agenda of
the June 2, 2010 City Council meeting and noted an appropriation of $2 million in
Recovery Zone Facility Bonds from the Kenai Peninsula Borough to fund construction
of a commercial building in Kenai would take place during the June 16, 2010 City
Council meeting.
9 -b. Borough Planning None
9 -c. Administration Kebschull reported there would be a work session
after the June 23, 2010 meeting regarding dog kennels and noted Administration
would be working with the owners of the retention basin near the Aspen Hotel on
options for landscaping.
ITEM 10: PERSONS PRESENT NOT SCHEDULED None
PLANNING ZONING COMMISSION MEETING
JUNE 9, 2010
PAGE 6
-184-
ITEM 11: INFORMATION ITEMS
11 -a. Grant Lake /Falls Creek Hydroelectric Project Initiation of Consultation
Kenai Hydro, LLC
ITEM 12:
ITEM 13:
MOTION:
COMMISSION COMMENTS QUESTIONS None
ADJOURNMENT
Commissioner Romain MOVED to adjourn and Commissioner Brookman SECONDED
the motion. There were no objections. SO ORDERED.
There being no further business before the Commission, the meeting was adjourned at
approximately 8:26 p.m.
Minutes prepared and submitted by:
Lorene Hall, CMC, Deputy City Clerk
PLANNING ZONING COMMISSION MEETING
JUNE 9, 2010
PAGE 7
-185-
REPORT
OF
CITY MANAGER
_1 RR-
KENAE� ALASKA
MEMO:
TO: Rick Koch
FROM: Fire Chief Michael Tilly
DATE: June 10, 2010
SUBJECT: Mid month report
"Village with a Past, City with a Future"
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 283 -7535 FAX: 907- 283 -3014
The department has been active with the summer weather. We have had 1 fire
response to the beach near the water treatment plant already and with t as dry a
summer as we have had, we are expecting to get busier. In May, two members
of the Fire Department attended a Scenario Bases Executive Level Training. This
training was geared towards promoting and developing leadership qualities. The
department has been doing some cross training with KPD in training Officers on
the operation. of the ambulances for use if needed on emergency scenes. The
department held an Officers meeting to work on summertime goals and
objectives. We are also planning to prepare for the arrival of the Insurance
Service August to re -rate the fire department and the associated I.S.Q. rating
Five members participated in a 3 day ammonia response class. Over the last
month, because of the ending of school, we have given multiple station tours
and held multiple car seat checks. All department members participated in their
live fire training for FAA requirements at the Beacon Training Center. The
Department is still staying involved with the paramedic ride along program
through KPC.
The department helped sponsor the City wide plant day by hosting a BBQ at
station 1. June 7, 8 and 9 were spent training on the new ARFF vehicle stations
at the airport. We hope to have it in service in a few weeks.
-187-
KENAI, ALASKA
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: June 10, 2010
Re: Monthly Report
FINANCE DEPARTMENT MID -MONTH REPORT
June 2010
The FY2011 Budget was adopted and the department is in the process of making
final changes and printing the document. A copy of the document will be placed
on the City's website in public document format (pdf) for download by the public.
The effort previously directed to the annual budget is now being shifted to fiscal
year end. Year -end procedure will continue for the next couple of months and
culminate with the annual audit that is scheduled for the week of September 27'".
The 2010 dipnet fishery is quickly approaching and we will be working with the
Park's Department to train our seasonal help to work in the dipnet shacks.
Finance is preparing for the implementation of credit card acceptance at City Hall
and other City Facilities. Implementation is expected in July.
Finance and the Fire Department have been working on implementation of the
ambulance billing service and this project should be complete for a July 1
implementation.
Municipal Airport
Airport Projects:
Airport Manager's Report
For
June 2010
Taxiway F, G, H Lighting, Grading, Drainage Improvement: Project is complete and
closeout documents are being prepared.
Apron Rehabilitation: Coordination meetings were held from March to May with the
contractor, City, ATCT, and based operators. Work began the week of May 18.
KMA Proposed Float Plane Basin Facility Improvement Project: The comment period for the
draft Supplemental Environmental Assessment was extended from May 21, to June 4,
2010. Comments may also be received at the June 16, Airport Commission meeting to be
held at 7pm in City Council chambers. Responses will be drafted to all parties who
submitted comments. Comments and the responses will be included in the final document
for review and approval by the FAA.
.0th Annual KPAF: With nice weather all around the peninsula, 43 participants had a great time
participating in the 10th poker run. Heidi Reuss of Anchorage held the winning hand and went home
with an outdoor barbeque donated by Home Depot. Thank you to Alaska Roadbuilders, Kens Alaskan
Tackle, Frames Things, Leadens Excavating, Peninsula Aero Teclmology, Alaska Aviation Heritage
Museum, Challenger Learning Center, Kenai Aviation, Era Alaska, and Grant Aviation for the poker run
prizes. Thank you to financial sponsors Crowley Fuel, GC, Beacon Occupational Health Safety,
Alaska Airmen's Association, and Aero Alaska. Thank you to master chefs Steve Horn, Mike Tarr, Rick
Koch, and Duane Bannock. Also many thanks to Carol Bannock, Glenda Feeken, Jack T ashot, Joe
Moore, Carol Freas, and Jim Zirul. A special thank you to Mayor Porter and Govemor Parnell for
sharing in the military appreciation event. Over 300 people enjoyed the barbeque along with great music
provided by the Dixie Express from the USAF Band of the Pacific This event would not be possible
without the many individuals who give their time and support.
Caring for the Kenai Airport Bird Dog: `Rose" arrived at the Kenai Airport on Monday, June 7t
accompanied by owner, Jane Brogan, of Dog Whistle Goose Control. Training will be held with Olivia
and Matt Landry (airport staff) for four days beginning Tuesday, June 8th. Rose will be on staff for
approximately three months.
Fish Haul Permits: Salamatof Seafood and Universal Air have been issued fish haul penuts for this
summer.
2010 -06
-189-
ERA GRANT Change KENAI Combined
MOOS AVIATION AVIATION Total 2009 from AVIATION Month Total
2009
January
4,466
1,797
6263
6224
-561
129
6292
February
4,171
1,805
5,976
5,971
5
110
6,057
I March
4,787
2,023
I 6,810
6,029
781
116
6,926
April
4,366
2,018
6,384
5,804
580
126
6,510
May
4,556
1,922
6,478
6,611
-133
198
6,676
June
6,857
July
9,612
August
9,153
September
7,379
October
6,919
November
6,714
December
6,260
Totals
22,346
9,565
31,911
84,133
672
679
32,561
FY09
FY10
May
$11.282
$13,035
22500
20000
17500
15000
12500
10000
7500
5000
2500
0
70.33%
Terminal Vehicle Parking Revenues
Vehicle Parking Revenues
y
Jui Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
-190-
May 2010
6,478
v FY09
C FY10
Month 2010
APRIL I 0
MAY 109
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
Month
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
FLOAT PLANE BASIN ACTIVITY
2006 -2010
Slips Rented
Private
Commerical
OPERATIONS
109
2010
$521
2009 2008 2007 2006
0 0 0 0
118 66 0 99
190 118 72 151
242 242 178 265
278 192 221 251
146 119 173 136
68 48 30 51
Closed Closed Closed Closed
,`3
FUEL SALES
7
0
-191-
not reported
2009 2008 2007 2006
$368 $561 $0 $0
$2,714 $3,443 $988 $909
$2,815 $3,252 $2,660 $3,138
$3,390 $3,506 $2,721 $2,023
$2,498 $1,735 $2,493 $2,051
$642 $100 $162 $297
Rev 612008
A
the
KENAI, ALASKA
To: Riclf Koch, City Manager
From: Rachael S. Craig, Senior Center Director
Date: June 8, 2010
Total May Meal Count 20] Served:
Total Congregate Meals Served: 1,515
Total Home Meals Served: 1,210
Total May Meal Count 2009 Served:
Total Congregate Meals Served: 1,341
Total Horne Meals Served: 1,875
We were rented twice this month.
We had 1,071 volunteer hours.
-192-
KENAI SENIOR CENTER
JUNE REPORT
On May 7, there was a Medicare 101 class. 22 area seniors attended the meeting. The state representative
was here to answer questions and give a short tall: concerning changes in Medicare.
Two new senior center directors were introduced; one from Sterling and one from Ninilchik. Grants,
Medicaid and cost of meals were discussed.. The area -wide picnic was scheduled to be held on June 25
beginning at 10:30a.m, at the Soldotna Park. The Kenai Senior Center Bell- Ringers, "Hope Notes," and
the "Forget -Me -Not" band will entertain for the event and at least 200 seniors are estimated to attend.
The Admin. Assistant and the activity /volunteer coordinator attended two days of Excel training.
We had a successful Mother's Day Celebration and a meaningful Memorial Day Remembrance program.
Senior Connection held a three day garage/bake sale. It was very successful. Senior Connection has
already started to collect items for their garage sale in August. Planning for the 4 of July float is
underway as well as baking pies for the 4 of July fundraiser booth,
On National Health and Fitness Day, 16 seniors walked from the Senior Center to Old Towne and back.
The Director presented programs and budget to United Way and the Kenai Peninsula Borough. As of this
writing, it is her understanding that the United Way Campaign funds are down and most likely the
borough funding will remain the same as last year.
E1c
KENAI. ALASKA
POLICE DEPARTMENT MID -MONTH REPORT
-193-
May 2010
TO: Rick Koch City Manager
FROM: David Ross Acting Police Chief
DATE: 6/8110
SUBJECT: Police Communications Department Activity May 2010
Police handled 670 calls for service, down 10.3 from May 2009. The Communications Center
received 240 emergency 9 -1 -1 calls (135 from cell phones). Approximately 3500 administrative
calls were processed by Communications personnel. Officers made 59 arrests and wrote 258
reports. Officers worked on many felony investigations including: sexual abuse, felony assaults,
felony theft, and burglary.
Traffic enforcement resulted in 110 warnings, 38 speeding tickets, 11 seatbelt tickets, 17
citations for equipment violations, and 21 citations for' other" traffic violations. There were 6
DUI arrests. Police investigated 8 vehicle crashes (1 injury crash). Two of the crashes were
DUI related. One crash involved a moose, another involved a caribou, and another involved an
eagle. There Were no bear incidents reported to the Kenai Police Department.
In the schools, SRO Langseth handled 11 police- related calls for service. Officer Langseth and
Officer Douthit concluded the 7 grade DARE program at KMS with four final presentations,
Officer Langseth presented bicycle safety to 16 classes from Mountain View and Kaleidoscope.
On May 4 Investigator Whannell attended a three day class in Anchorage on child forensic
interviewing. On May 17 Sgt. George and Sgt. Langham attended a three day course on
advanced Incident Command Structure (ICS -300) at the Soldotna Emergency Response
Center. On May 27"' the Kenai Police Department hosted a rifle class that was attended by
Officer Hamilton, Officer Prins, and Officer Douthit. On May 20 Dispatcher Linegar attended a
two day class on suicide intervention skills in Kenai. Dispatcher Beckman attended Crystal
Reports training in Anchorage on May 26'
Four seasonal enforcement officers were hired in May. Jordan Chilson and Trent Semmens
previously held the same positions and were rehired this year. Dominick Eubank and Daniel
Jones were hired to fill the other two positions this year.
the u' of
KEN ALASKA
ANIMAL CONTROL MID -MONTH REPORT
May 2010
2010 2009 2010 2009
STRAY 73 64 ADOPTED 41 44
Dogs 52 41 Dogs 25 27
Cats 20 22 Cats 15 17
Other Species 1 1 Other Species 1 0
RELEASED BY OWNER 27 34 CLAIMED 29 20
Dogs 17 24 Dogs 27 19
Cats 9 10 Cats 2 0
Other Species 1 0 Other Species 0 1
D.Q.A. 9 8 EUTIJANIZED 30 30
Dogs 6 6 Dogs 17 15
Cats 3 1 Cats 12 15
Other Species 0 1 Other Species 1 0
TOTAL ANIMALS 109 106 Other Disposition 0 4
Borough Animals 35 20 Field Investigations 145 82
Total Dogs 75 71 Volunteer hours 64 108
Total Cats 32 33 Total phone 602 655
Total Other Species 2 2 Kennel Permits 0 0
Community Involvement Projects: 5/7/2010 Tustemena Elementary field trip.
5/18/2020, Redoubt Elementary Kindergarten and first grade students raised hundreds of dollars and
bought animal care equipment to be donated at their field trip here.
5/19/2010, The Redoubt Reporter ran a front page article about the influx of underage puppies and the
need for foster care homes. We recruited 9 foster homes for 19 3 to 5 week old puppies.
-194-
the ay
KENAALASKA
The status of the projects is as follows:
Kenai Community Library Expansion Proiect Architecture by ECIJHyer, Inc. Construction contract was awarded
to Blazy Construction, Inc Notice to proceed was issued on April 19. Construction is progressing on schedule with
preparation for slab and footings under way including underground plumbing and electrical. The Iibrary is closed for
three weeks starting June 6 and reopening on June 28 During this shut down work is occurring in both the front
parking lot and Main Street for utility tie -in as well as in the core of the building providing for mechanical and
electrical services,
Bridge Access Road Water Sewer Main Extension Engineered by Wm. J. Nelson Associates. The Construction
Contract was awarded to North Star Paving and Construction Inc. The notice to proceed was signed on January 18,
2010. Construction is currently under way with the water project at 52% complete and the sewer project 56%
complete; project will be completed in September.
Lawton. Drive Water Extension Project Engineered by Wm. J. Nelson Associates. The Construction Contract was
awarded to North Star Paving and Construction Inc. The Notice to Proceed was issued on February 16, 2010. All
piping is installed and road reconstruction is complete, the area has been seeded and is awaiting spring growth.
Arsenic Ground Water Study- Engineered by HDL with Pilot studies by HDR. The Well 2 Aquifer Study is currently
under way with monitoring well drilling in progress.
South Beach Dunes Fencing This is an American Recovery and Reinvestment Act (ARRA) funded project
administered by U.S. Fish and Wildlife Service. Permit letters were received from both Donald E. Gilman River
Center and the U.S. Army Corps of Engineers. The project was advertised on April 30 and on May 12 three bids were
received. The low bid will install 3,300 lineal feet of dunes protection. The contract was awarded to Holden Company
on May 19 for 562,028,00. Waiting for materials to arrive for installation prior to the 2010 Dip Net Season
Multi Use Facility Lighting, Upgrade Registration with the Department of Energy's (DOE) PAGE system is
complete. Coordination with the DOE is under way for development of documents compliant with the ARRA funding.
The remaining funds necessary for completion were appropriated at the April 7 council meeting. Bid documents were
released and bids were opened on June 9, 2010 with 6 bids received. A resolution is before council to award the
contract to Kachemak Electric for $58,587.00 at the June 16 meeting.
Water and Sewer Rate Study Update -The Notice to Proceed was issued on March 15, 2010. Documents requested
have been provided to the consultant for analysis.
Toaiak to Beaver Loo, Water Extension Project Engineering by Wm. J. Nelson Associates. This is the continuing
extension of the Lawton Drive Project. Currently the NEPA process is underway; as required by the State and Tribal
Assistance Grant (STAG), with the design drawing necessary for the NEPA process completed and under review, once
the NEPA process is approved, the Work Plan will be submitted to the EPA Project Officer. Once the Work Plan is
approved the project will be put out to bid.
Personal Use Fisheries Capital Project Funded by approval of Ordinance 2481 -20I0 on May 5, 2010. The Youth
Restoration Corps started the Meeks Trail upgrade and is approximately 90% complete. The material for the
pedestrian barrier has been ordered and should arrive in time for installation prior to the 2010 Dip Net Season. The
additional restrooms and bridge upgrade will not be available for this Dip Net Season,
Vintage Pointe Water Damage Project Funded by approval of Ordinance 2483 -2010 on May 19, 2010. The design
contract was issued June 7 to Klauder Company Architects, Inc.
-195-
CAPITAL PROJECT MANAGER
MID -MONTH REPORT
June 2010
PUBLIC WORKS DEPARTMENT
JUNE 2010 REPORT
4, 1'
KENG ALASKA
TO: Rick Koch, City Manager
FROM: Wayne Ogle, Public Works Director
DATE: June 9, 2010
SUBJECT: Mid Month Report; Public Works Department
Public Works Operations:
The Streets Department completed the sweeping of sand from streets, sidewalks, curbs, bike paths
and grass. Streets also completed installation of floats at the boat ramps and mucking out of silt. The silt
was stored at the Dock overflow parking lot to decant and now is being hauled away for disposal
Capital Projects Manager is supervising drilling of water wells and testing of the aquifer in the vicinity
of Well House #2 with the assistance of the Water Sewer Department.
The 2009 Drinking Water Quality Report has been mailed to all City water system customers. This
annual report is required to be sent to all mailing addresses in the area served by the public water system
of Kenai by 1 July regarding the previous year. The report has been approved by the Department of
Environmental Conservation.
Status of Projects:
Kenai Municipal Airport Rehabilitate Apron 2009 -2010; Project is underway with Alaska Road
Builders as the general contractor. Wince Corthell is providing Construction Management services.
Kenai: Various Road Improvements 2009 (Baron Park Lane HEA Access). Project will be put out
to bid by the State at any time.
Historical Cabin Relocation Proiect. Historical Society volunteers have leveled the cabins,
constructed wooden walkways. Fencing will be provided and installed by a contractor. Streets
Department hauled 10 truckloads of dirt from a location in Sterling for site landscaping. Site will be
dedicated during the 4 of July celebration. The Historical Society is still looking for donations for items
which will be used to furnish the cabins.
Kenai Recreation Center Locker Room Upgrade 2010. Project is complete.
Kenai Recreation Center Gym Lighting Replacement. The project will remove all existing HID gym
lighting and install 24 more energy efficient fixtures in the existing ceiling openings. The project will also
include replacing the existing lights in the two racquetball courts nearest the lobby. The contract was
awarded to Kachemak Electric and will get underway at the end of June,
Fourth Avenue Culvert Replacement This project is funded by a grant to the Kenai Watershed
Forum will replace a failing culvert on Fourth Avenue. This failed culvert is inhibiting the passage of fish.
The design and construction management will be provided by Nelson Engineering. The City will fund
Additive Alternate One which will extend a 10" water main down Spruce Street and replace an existing 2
service line that services two apartment buildings.
Provide and Dispense Fuel for City Vehicles Council has approved award of this contract to Alaska
Oil Sales.
Furnish and Deliver Fuel for City Generators and Airport Equipment Bid opening 2PM June 10`
2010.
Used 8,000lb high reach Rough Terrain Telehandler Lift 2010 No proposals were received by the
City for purchase the of a used 'extend -a -boom' forklift during the specified period of time.
Small Projects:
Kenai Visitors Center: City is still considering a window treatment system that will help protect exhibits
from UV light and also window blinds in certain windows. Recreation Center: A contractor has been
retained to repair damage to gym walls, replaced worn out floor mats. Senior Center: A contractor will
repair leaking windows and replace windows that have lost their seals. Fine Arts Center: A contractor
has been retained to make roof repairs.
-196-
the cr of
KENAL ALASKA
PARKS RECREATION MID -MONTH REPORT
MONTH YEAR
First week of June mostly comprised of crew training and familiarization of operational
procedures for seasonal hires. Maintenance tasks included clearing lawns of debris,
trash removal and general cleanup of park areas, mowing /fertilizing, weeding /planting,
inspections, placement of trash receptacles and getting sports fields to acceptable
standards.
Community Gardens were prepped for local gardeners in time for the traditional Memorial
Day planting. We have a total of 14 gardeners this season.
Volunteer plant day was on June 5 Staff at the Fire Department provided a great BBQ
and we thank Chief Tilly for use of the facility. Connie's Flowers completed the circle
planters along the Kenai Spur Hwy. Flower boxes for the right -of -way areas are
scheduled to be placed Thursday, June 10
Staff installed several memorial plaques at Leif Hansen Park and leveled two plots at the
cemetery.
The Kenai Softball Association held their first softball Tournament June 5 6. A total of
13 teams participated in the tournament with all but two corning from outside
Kenai /Soldotna area.
The carnival is scheduled to be open June 11 13 located at the parkstrip.
The department has had a flurry of community service workers these past couple weeks.
We will have approximately 290 hours of service work provided by the second week of
July.
The department has contributed approximately 7 man- hours assisting with various needs
related to the old town cabins and another 4 man -hours assisting library staff with moving
some items.
Groundskeeper Hernandez has been off duty since late May due to an injury. Dock
attendant Andy Bralley has been providing assistance as needed.
the city of
KENAALASKA
May Circulation Figures
KENAI COMMUNITY LIBRARY
MID -MONTH REPORT
JUNE 2010
Adult Fiction 2,375 Internet Access 1,361
Adult Non Fiction 1,540 Music 1
Periodicals 102 Puzzles 0
Juvenile Fiction 816 Videos 270
Juvenile Non Fiction 207 DVDs 2,269
Easy Fiction 1,073 Audio books 169
Easy Non Fiction 242 Miscellaneous 60
Interlibrary Loan 33 Computer Programs 5
Total Print
6,388 Total Non -Print 4,259
Total Circulation 10,647 In -House circulation 238
Library Door Count 7,958 Downloadable 289
Audio e -books
The total circulation for May of 2010 was 11% higher than the circulation for May 2009. This
month 4 Key Bank volunteers spent half a day in the library helping out.
Mary White conducted tours for three groups of children from Mountain View Elementary and
one from the Aurora Borealis kindergarten this month. All of the construction activity was just
an added bonus.
This is a reminder that the library will be dosed due to construction for three weeks beginning
June 6. The staff will be working inside under less than ideal conditions, but we do have some
major projects that will occupy people. Everyone has been encouraged to take annual leave. We
may have some days without electricity, in which case we will not be in the building.
Both the staff and the public are adjusting to business during construction with very few
complaints. It is difficult to get to the book drop and will be impossible during the time that we
are closed. All items are due after we re -open and fines suspended during our closure. During the
closure, the construction crew will be working on the parking lot and it will not be available. The
staff will park and enter via the emergency door exit at the back of the building.
Don't forget the Friends of the Kenai Community Library annual book sale that will be held this
year at Allen and Petersen from Thursday evening, June 17 through Saturday afternoon, June 19.
-198-
INFORMATION ITEMS
INFORMATION ITEMS
KENAI CITY COUNCIL MEETING
JUNE 16, 2010
1.
6/16/2010 Purchase Orders Between $2,500 and $15,000 for council review.
2. Budget Transfer in Capital Projects in excess of 5,000.
3. Kenai Visitors Cultural Center Quarterly Report.
4. 6/4/2010 D. Bannock, Kenai Peninsula Borough, letter related to removal of
dead and dying spruce trees in the City of Kenai.
6/7/2010 A. McNeal email transmission related to Kenai Fire Department
response to a home fire off Candlelight Drive, Kenai.
-200-
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-201-
N Visitors
Cultural Center
First Quarter 2010
KENAI CONVENTION VISITORS BUREAU
W WW. V I.SITKENA_LCOM
11471 Kenai Spur Hwy, Kenai, Alaska 99611
Natasha Ala, Executive Director
Month
2007
2008
2009
2010
Jan.
closed
1261
Feb.
1428
2208
March
2308
2090
1433
Total
5272
4506
0
4902
Visitat
KCVB Quarterly Report
First Quarter 2010
The chart below shows the visitation numbers for the Kenai Visitors Cultural Center for the first quarter
of 2010, as compared to the previous three years. The Center was closed the first quarter of 2009 for
renovations; however visitation numbers for 2010 look on average with 2007 and 2008. The KCVB did
install a new people counter at the front door in April of 2009. It is uncertain if the new counter is more or
less accurate in counting bodies that pass through the front door. We have not noted any major
discrepancies in our visual head counting, compared to the new counter, so we believe it is close to being
accurate.
KVCC Visitation Numbers:
Website www.visitkenai.com
s On March 10, 2010, the KCVB launched the new and improved version of our website
The new website includes enhanced visitor navigational tools, improved ability to
track visitation statistics, enhanced back door features for members, customized leads features for members
and a fresh new contemporary look for the City of Kenai. The new website cost the KCVB $10,000 and
0
o took six month to complete.
c
Within the first twenty one days of being launched, the website received 1,785 unique hits. We have spent
t7 Y.
considerable time fine- tuning e fine- the site and updating information. The feedback we have received from our
279
15
124
0
0
418
223
33
437
308
49
1050
140
81
209
0
15
445
642
129
770
308
64
1913
membership regarding the new website has been predominantly positive. We have tightened the
parameters of information requests members will receive from visitors, so that our members are not
spammed with irrelevant leads; but rather the leads they are receiving are from serious and genuine visitors
who plan to travel to the Kenai area.
Leads January March
Within the visitor industry `leads' are referred to as the inquiries you receive from individuals requesting a
information about your destination. The KCVB receives the majority of our requests for information about m
Kenai through the leads we receive from the Kenai Peninsula Tourism Marketing Council (KPTMC), the i
Alaska Travel Industry Association (ATIA), various independent websites we advertise on, as well as from d
our website visitkenai.com. The table below indicates the number of leads we received from our different s
sources during the first quarter of 2010.
Leads January -March 2010:
of Leads KPTMC KCVB ATIA Frommers Other
Jam
Feb.
March MTD
Total
Total
o:
m
a)
Each of the 1,913 leads we received included names and addresses of potential visitors to the City of Kenai.
We sent each person a Kenai Visitor's Guide, as well as any other relevant information they requested.
Industry research has indicated that visitors are going to web sources to gather their information for
planning their trips. As recently as five years ago, the KCVB had been receiving a significant number of
leads from phone call inquiries and mail inquires. We currently receive such an insignificant number of
inquiries from phone calls and the mail that we have discontinued tracking those numbers. We estimate
that we received less than 100 phone calls and mail requests for information the first quarter of 207
Meetings
The following organizations held meetings at the Kenai Visitors Cultural Center the first quarter of 2010.
Meetings January -March 2010:
The Child Advocacy Center
KPTMC Regional Tourism Swnmit
Baker Petrolite
oundations Family Center
World Music for the Kenai
Alaska Oceans Film Festival
TransCanada
Kenai Watershed Forum
ch
nds of the Kenai Library
Renewable Resources Coalition
Denali Credit Union
Alaska Housing
Nunanta Aulukestai
Leeshore Center
A.dvertising Marketing
The 2010 Kenai Visitors Guide was printed in January and immediately delivered to many locations
throughout Alaska, Our 2010 cover art was designed by Local artist Thor Evenson, who grew up in Kenai,
and whose artwork and commercial illustrations are prominently known throughout the central region of
Alaska.
The KCVB has contracted with AK Distributors to dispense the 2010 Kenai Visitor's Guide at over fifty
Locations throughout the Anchorage bowl area including the Ted Stevens International Airport, the
Anchorage Saturday Market and at numerous hotels and restaurants. The 2010 Kenai Visitor's Guide is
also distributed at the Fairbanks Visitor's Center, the Tok Visitor's Center and numerous other locations
along the Alaska highway system.
2010 Summer Exhibit at the Center
Every summer, for the past ten years, the KCVB has produced a major exhibition relating to some element r3
or aspect of life in the Last frontier. The intent is that these exhibits will create incentive for visitors to
come to the Center, and in addition to viewing a top quality exhibition, they will also receive information vl
about other attractions and things to do in Kenai. This year's summer exhibit "Sacred Space' Sacred
Time" will be the eleventh summer exhibit produced by the KCVB. The KCVB's executive director,
Natasha Ala, was approached by Father Thomas in the summer of 2009 regarding the possibility of a>
exhibiting some of the icons from the Holy Assumption of the Virgin Mary Russian Orthodox church during
a
the summer of 2010 while the church was planning to undergo significant renovations. The KCVB felt this
would be a wonderful opportunity to share the history of the Russian Church in Old Town Kenai with our
visitors and locals alike.
c:
April 23rd thru September, 2010
Discover the rich and fascinating history of the
Russian Orthodox Church in Kenai th
tred:Space, Sacred Tim an exhibit at
nai Visitors and Cultural Center. Ico
paintings, historic images and objects tell
story in this once in a lifetime exhibit
display from April 23 thru September p4
Gala Opening Re cepti
Friday, April 23rd, 5:at —a:e
+.n C Or, fi .3117 a,.
ww. v {sif'rna{. www,artskenai,
2 -07
Programs Exhibits
January 15 Opening event for "The Art and Science of Climate Change in Alaska" an exhibit in
partnership with Kenai Peninsula College Service Learning Program. Exhibit open through February 26
January 22 —A community dialogue entitled "Climate Change on the Kenai: How can we build a resilient
community that can cope with changing climate, rising energy costs, and economic instability in
partnership with the Roundtable: Center for Mediation and Community Dialogue and the Kenai Peninsula
College Sustainability Club.
January 22 -24 -Kenai Peninsula College Digital Photography Class
February 20 Renewable Energy Conference in partnership with AK Wind Industries and IC-PARE.
Speakers included HEA, Ionia, USDA, Denali Commission and others.
March 4 —First Thursday opening for Ahna Iredale /Jim Evenson dual exhibit. Open through April
2010.
March 26"'— "'rriviapalooza" community fundraiser trivia night in partnership with Triumvirate Theatre.
Team "Redoubt Reporter: the Big Mouths of the Kenai takesfirst place at Kenai's first
"Triviapalooza "quiz bowl contest. Nine reams, totaling of aver one hundred people, turned out
TO compete for the title of Kenai's mast brainiackest f ilk.
"TRIVIAPALOOZA “2010
Opening reception for contemporary an show by local at
hna Iradale
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Visitors Comment
January 13, 2010 John Lowe; Hermiston, OR
January 28, 20I0
February 13, 2010
April 23, 2010
KCVB Rnard of Directors
Jacquie Steckel, President
Marion Nelson, Vice President
Jeff Warton, Treasurer
Teresa Moyer, Secretary
Shawn Maltby
Ron. Malston
Janet. Schmidt
Celia Anderson
Sharon Brower
Fred Braun
George Patera; Naperville, FL
Richard Hilleary; Nikiski, AK
Aaron Duplessis; New Orleans, LA
Staff
Natasha Ala, Executive Director
Lauren Brewer, Membership Retail Director
Laura Forbes, Programs Exhibits Director
Laurie Booysie, Administrative Specialist
Harold Piland, Saturday Market Coordinator
Rebecca Gilman, Visitor Services (summer season)
Taylor Matson, Visitors Services (summer season)
Lola Cress, Visitor Services (summer season)
"Hope to move here"
"Very Interesting History"
"Thank you for this Visitor Center"
"Alaska is nearest to Heaven"
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June 4, 2010
Honorable Mayor Patricia Porter
City of Kenai
210 Fidalgo Street
Kenai, AK 99611
Respectfully,
Duane A. Bannock
Acting Chief of Staff
Attachment
DAB /slw
cc: Mayor David R. Carey, Kenai Peninsula Borough
Kenai City Council Members
Carol Freas, Kenai City Clerk
Rick Koch, Kenai City Manager
Chief Mike Tilly, Kenai Fire Department
-213-
KENAI PENINSULA BOROUGH
144 North Binkley Street e Soldotna, Alaska 99669.7520
Toll -free within the Borough: 1 -600 -478 -4441
PHONE: (907) 262 -4441 a FAX: (907) 262 -1892
www.borough.kenaiak.us
DAVID R. CAREY
CC l CaA
BOROUGH MAYOR
RECEIVED
JUN 7 2010
KENAI arc CLERK
Dear Mayor Porter:
During the Kenai City Council meeting of June 2 2010, a question arose regarding the Kenai
Peninsula Borough's involvement in removal of dead and dying spruce trees. I have attached the
list of 2009 projects completed by the Kenai Peninsula Borough Spruce Bark Beetle Mitigation
Program within the City of Kenai for your information.
We are very pleased with the participation of private property owners that chose to be included
in the three different rights -of -way projects, as well the amount of public land selectively thinned
to reduce the fire risk from spruce bark beetle killed trees.
Special recognition and thanks should be given to the Kenai Public Works Department and City
Manager Koch. On two different occasions, the City of Kenai has responded to requests for help
and support at our "FireWise Slash Disposal Site" on Redoubt Avenue. Both times, we received
c Also, to the Fire Department and Chief e Till
prompt and professional assistance. �,so, e Kenai ..e De,,W d Mike y
for his help in identifying qualifying mitigation areas.
We value our efforts within the City of Kenai and are pleased with the outcome of last year's
individual projects.
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-214-
rom: Alyx McNeal [alyxmc @hotmail.com]
Sent: Monday, June 07, 2010 5:45 PM
To: kfdept @ci.kenai.ak.us; Christine Cunningham
Subject Fire in home off Candlelight
Today firefighters responded to a home fire near my house on Kiana Lane in Kenai. Having moved to
Alaska just one year ago from southern California (in part to get away from wildfires my husband and I
had evacuated our home twice in five years) 1 didn't expect to see any fires near my home (not with so
much rain!). I witnessed the team of firefighting professionals (and at least one police officer) move
quickly, efficiently, and effectively as they moved in to fight the fire. Memories of evacuations, helping
friends who had lost their homes to the southern California fires, and the general feelings of fear I
experienced during those situations rolled through my head and my heart as I watched. Suddenly I saw
one of the team carry a cat out of the house, and across the street to a neighbor's house. I'm a big cat
person and was so happy that the cat had been rescued and that the firefighter was treating it so
humanely, I watched for several more minutes and was just about to walk home when I saw another
firefighter come out of the house with a second cat. The cat was gray and limp. As a huge rush of
emotion overtook me and tears welled up in my eyes, I watched the firefighter gently lay the cat on the
ground and unwrap what looked like a small oxygen mask which he appeared to place over the mouth of
the cat. My last image of that scene was the firefighter on his knees bending over the cat. I just couldn't
watch anymore and cried as I walked the short distance back to my house, where I looked at my four cats
and felt incredible sadness.
Just a few minutes ago I wrote a note to the owners of the house, whom I do not know. I walked back
over toward the house to deliver the note, and firefighters were mopping up. A man who apparently was a
volunteer was taking off his vest and returning to his car. I complimented him on the response to the
all. He was humble and pleasant. I then asked him, "Did the second cat make it? The gray one He
replied, "Yes ma'am, it was resuscitated and has been taken to the vet; it appears to be fine."
After repeatedly hugging this poor man as I wept, I went to the house and hugged several more
firefighters, one of whom was the gentleman who actually resuscitated the cat. He said, "I worked on him
(the cat) for quite a while, and once he started corning around he was very active; I'm pretty sure he's
going to be ok." More weeping on my part. Evidently there were two cats, and three other pets in that
house when the fire broke out, and all survived.
The family that lives in that house have a long difficult road ahead, and thank God they were not hurt. I
can only imagine the fear and confusion they must be feeling right now. We as a community will, I'm
sure, do what we can to help them face the challenges they'll encounter in the days, weeks and months to
come.
In the meantime, kudos to the group of kind professionals who responded to that fire today. Whenever
I'm feeling frustrated or sad at the state of the world we live in, I'm going to recall the sight of that man
bending over that cat, saving its life, and restoring my faith in humanity.
Kenai firefighters and emergency response personnel, you ROCK!
Alyx McNeal
1
-215-
NOTICE OF PUBLIC HEARING
JUNE 16, 2010
CITY OF KENAI COUNCIL MEETING
NOTICE IS HEREBY GIVEN the City of Kenai will conduct a public hearing on
the following Ordinance(s) and /or Resolution(s) on the above -noted meeting date.
1. Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform
Plumbing Code, to Delete the Local Requirement That Underground
Water Service Pipe Less Than Two Inches in Diameter Must be in Copper.
2. Ordinance No. 2490 -2010 Increasing Estimated Revenues and
Appropriations by 54,255 in the Airport Fund for a Donation Received
From the Kenai Watershed Forum for the City's Summer Bird Hazing
Program at the Kenai Airport.
3. Ordinance No. 2491 -2010 Increasing Estimated Revenues and
Appropriations by $1,500,000 in the Library Improvements Capital
Project Fund.
4. Ordinance No. 2492 -2010 Reducing Estimated Revenues and
Appropriations by 51,500,000 in the General Fund and Library
Improvements Capital Project Fund.
Resolution No. 2010 -34- Adopting the City of Kenai Updated Annex to
the Kenai Peninsula Borough All- Hazard Mitigation Plan as an Official
Plan.
6. Resolution No. 2010 -35 Awarding a Contract to Kachemak Electric
Co., Inc. for the Project Entitled Kenai Multipurpose Facility Lighting
Upgrade -2010 for the Total Amount of 558,587.00.
7. Resolution No. 2010 -36 Authorizing Sharing Cost Savings From the
Calendar Year 2009 Health Insurance Plan with Employees.
8. Resolution No. 2010 -37 Authorizing the City of Kenai to Issue
Revenue Bonds, 2010 (Double Glacier Builders, LLC Project) in the
Principal Amount of Not to Exceed $1,700,000; the Execution and
Delivery of a Loan Agreement to Secure the Bonds; Fixing Certain Details
of Such Bonds and Authorizing Their Sale.
9. Resolution No. 2010 -38 Rejecting All Bids for the Project Entitled,
"Elevated Light Penetrating Walkway Ramps Kenai Dunes 2010."
10. Resolution No. 2010 -39 Awarding a Contract to Harbor Enterprises,
Inc., d /b /a Alaska Oil Sales, for Furnishing and Delivering of Diesel
Fuel.
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 are invited to attend the meeting and
participate in the public 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 and /or resolutions
may be amended by the Council prior to adoption without further public notice.
Carol L. Freas, City Clerk
Posted: June 11, 2010
AGENDA
KENAI CITY COUNCIL REGULAR MEETING
JUNE 16, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://www.ci.kenatak.us
ITEM B: SCHEDULED PUBLIC COMMENTS (Public comment
limited to 10 minutes per speaker)
1, Janice Chumley, Invasive Plant Coordinator Alaska Invasive Weed
Awareness Week and the City of Kenai Opportunity for Invasive Plant
Controls.
2. Olivia Pfeiffer Bird Hazing Program Update.
ITEM D: PUBLIC HEARINGS (Testimony limited to 3 minutes per
speaker. Persons may give their time over to another speaker present,
however no single speaker present may speak for more than 30 minutes
combined on their own and on others' behalf.)
1. Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform
Plumbing Code, to Delete the Local Requirement That Underground
Water Service Pipe Less Than Two Inches in Diameter Must be in
Copper.
2. Ordinance No. 2490 -2010 Increasing Estimated Revenues and
Appropriations by 64,255 in the Airport Fund for a Donation Received
From the Kenai Watershed Forum for the City's Summer Bird Hazing
Program at the Kenai Airport.
3. Ordinance No. 2491 -2010 Increasing Estimated Revenues and
Appropriations by $1,500,000 in the Library Improvements Capital
Project Fund.
4. Ordinance No. 2492 -2010 Reducing Estimated Revenues and
Appropriations by $1,500,000 in the General Fund and Library
Improvements Capital Project Fund.
5. Resolution No. 2010 -34- Adopting the City of Kenai Updated Annex to
the Kenai Peninsula Borough All- Hazard Mitigation Plan as an Official
Plan.
6. Resolution No. 2010 -35 Awarding a Contract to Kachemak Electric
Co., Inc. for the Project Entitled Kenai Multipurpose Facility Lighting
Upgrade -2010 for the Total Amount of $58,587.00.
7. Resolution No. 2010 -36 Authorizing Sharing Cost Savings From the
Calendar Year 2009 Health Insurance Plan with Employees.
8. Resolution No. 2010 -37 Authorizing the City of Kenai to Issue
Revenue Bonds, 2010 (Double Glacier Builders, LLC Project) in the
Principal Amount of Not to Exceed 51,700,000; the Execution and
Delivery of a Loan Agreement to Secure the Bonds; Fixing Certain
Details of Such Bonds and Authorizing Their Sale.
9. Resolution No. 2010 -38 Rejecting All Bids for the Project Entitled,
"Elevated Light Penetrating Walkway Ramps Kenai Dunes- 2010."
10. Resolution No. 2010 -39 Awarding a Contract to Harbor Enterprises,
Inc., d /b /a Alaska Oil Sales, for Furnishing and Delivering of Diesel
Fuel.
ITEM F: UNFINISHED BUSINESS
ITEM G: NEW BUSINESS
1. Ratification of Bills
2. Approval of Purchase Orders Exceeding $15,000.
3. *Ordinance No. 2494 -2010 Amending the Kenai Municipal Code,
Chapter 23.55 Entitled "Personnel," Including 23.55.030 Entitled
"Qualification Pay; 23.50.010 Entitled, "Employee Classification and,
23.55 Fiscal Year 2010 Operating Budget Salary Schedule.
4. *Ordinance No. 2495 -2010 Increasing Estimated Revenues and
Appropriations by $50,000 in the Water, Sewer and Streets Capital
Project Fund for Public Road, Water, and Sewer Improvements.
5. Action Item Amendments to Kenai City Council Policy for
Commission, Committee, Board and Council on Aging Meetings and
Work Sessions.
6. Discussion Amendments to Kenai Municipal Code 1.10.060
Entitled, "Calling Special Meetings."
7. Discussion City of Kenai 401(A) Plan /Amendment
EXECUTIVE SESSION None Scheduled.
ITEM M: ADJOURNMENT
The public is invited to attend and participate. Additional information is
available through the City Clerk's office at 210 Fidalgo Avenue, or visit our
website at http: /www.ci.kenai.ak.us.
Carol L. Freas, City Clerk D/211
UNITED STATES OF AMERICA,
STATE OF ALASKA
Denise Reece being first duly
sworn, on oath deposes and says:
That 1 an and was at all times here
in this affidavit mentions, Supervisor of
Legals of the Peninsula Clarion, a news-
paper of general circulation and published
at Kenai, Alaska, that the
Council Agenda
PO #90976
a printed copy of which is hereto annexe• was
published in said paper one each and
every day for one successive anti
consecutive day in the issues on the'
following dates:
June 14, 2010
X Le c'? xu, ,Cen ;.P
SUBSCRIBED AND SWORN to me before
Pt, BLISH AFFIDAVIT
NOTARY PUBLIC in favor for the
State of Alaska.
My Commission expires 26- Aug -12
S S:
AGENDA
KENAI CITY COUNCIL REGULAR MEETING
JUNE 16, 2010
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http: /www.ci.kenai.ak. us
ITEM B: SCHEDULED PUBLIC COMMENTS (Public comment
limited to 10 minutes per speaker)
1. Janice Chumley, Invasive Plant Coordinator Alaska Invasive Weed
Awareness Week and the City of Kenai Opportunity for Invasive Plant
Controls.
2. Olivia Pfeiffer Bird Hazing Program Update.
ITEM D: PUBLIC HEARINGS (Testimony limited to 3 minutes per
speaker Persons may give their time over to another speaker present,
however no single speaker present may speak for more than 30 minutes
combined on their own and on others' behalf.)
1. Ordinance No. 2489-2010 Local Amendments to the 2006 Uniform
Plumbing Code, to Delete the Local Requirement That Underground
Water Service Pipe Less Than Two Inches in Diameter Must be in
Copper.
2. Ordinance No. 2490 -2010 Increasing Estimated Revenues and
Appropriations by $4,255 in the Airport Fund for a Donation Received
From the Kenai Watershed Forum for the City's Summer Bird Hazing
Program at the Kenai Airport.
3. Ordinance No. 2491 -2010 increasing Estimated Revenues and
Appropriations by $1,500,000 in the Library Improvements Capital
Project Fund.
4. Ordinance No. 2492 -2010 Reducing Estimated Revenues and
Appropriations by $1,500,000 in the General Fund and library
Improvements Capital Project Fund.
5. Resolution No. 2010 -34- Adopting the City of Kenai Updated Annex to
the Kenai Peninsula Borough Ail- Hazard Mitigation Plan as an Official
Plan.
6, Resolution No. 2010-35 Awarding a Contract to Kachemak Electric
Co., Inc. for the Project Entitled Kenai Multipurpose Facility Lighting
Upgrade -2010 for the Total Amount of $58,587.00.
7. Resolution No. 2010-36 Authorizing Sharing Cost Savings From the
Calendar Year 2009 Health Insurance Plan with Employees.
8. Resolution No. 2010-37 Authorizing the City of Kenai to Issue
Revenue Bonds, 2010 (Double Glacier Builders, LLC Project) in the
Principal Amount of Not to Exceed $1,700,000; the Execution and
Delivery of a Loan Agreement to Secure the Bonds; Fixing Certain
Details of Such Bonds and Authorizing Their Sale.
9. Resolution No. 2010 -38 Rejecting All Bids for the Project Entitled,
"Elevated Light Penetrating Walkway Ramps Kenai Dunes 2010."
10. Resolution No. 2010 -39 Awarding a Contract to Harbor Enterprises,
Inc., d /b /a Alaska Oil Sales, for Furnishing and Delivering of Diesel
Fuel.
ITEM F: UNFINISHED BUSINESS
ITEM G: NEW BUSINESS
1. Ratification of Bills
2. Approval of Purchase Orders Exceeding 315,000.
3. *Ordinance No. 2494 -2010 Amending the Kenai Municipal Code,
Chapter 23.55 Entitled "Personnel," Including 23,55.030 Entitled
"Qualification Pay 23.50.010 Entitled, "Employee Classification and,
23.55 Fiscal Year 2010 Operating Budget Salary Schedule.
4 *Ordinance No. 2495 -2010 Increasing Estimated Revenues and
Appropriations by $50,000 in the Water, Sewer and Streets Capital
Project Fund for Public Road, Water, and Sewer Improvements.
5. Action Item Amendments to Kenai City Council Policy for
Commission, Committee, Board and Council on Aging Meetings and
Work Sessions.
6. Discussion Amendments to Kenai Municipal Code 1.10.060
Entitled, "Calling Special Meetings."
7. Discussion City of Kenai 401(A) Plan /Amendment
EXECUTIVE SESSION None Scheduled.
ITEM M: ADJOURNMENT
The public is invited to attend and participate. Additional information is
available through the City Clerk's office at 210 Fidaigo Avenue, or visit our
website at http: /www.ci.kenai.ak.us.
Carol L. Freas, City Clerk D285/211
CITY OF KENAI
NOTICE OF ORDINANCES AND RESOLUTIONS
ADOPTED AT THE
KENAI CITY COUNCIL MEETING
OF
JUNE 16, 2010
NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s)
and /or Resolution(s) at the above referenced meeting.
Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform Plumbing
Code, to Delete the Local Requirement That Underground Water Service Pipe
Less Than Two Inches in Diameter Must be in Copper.
2. Ordinance No. 2490 -2010 Increasing Estimated. Revenues and
Appropriations by $4,255 in the Airport Fund for a Donation Received From. the
Kenai Watershed Forum for the City's Summer Bird Hazing Program at the
Kenai Airport.
3. Ordinance No. 2491 -2010 Increasing Estimated Revenues and
Appropriations by 51,500,000 in the Library Improvements Capital Project
Fund.
4. Ordinance No. 2492 -2010 Reducing Estimated Revenues and Appropriations
by $1,500,000 in the General Fund and Library Improvements Capital Project
Fund.
5. Resolution No. 2010 -34- Adopting the City of Kenai Updated Annex to the
Kenai Peninsula Borough A11- Hazard Mitigation Plan as an Official Plan.
6. Resolution No. 2010 -35 Awarding a Contract to Kachemak Electric Co., Inc.
for the Project Entitled Kenai Multipurpose Facility Lighting Upgrade -2010 for
the Total Amount of S58,587.00.
7. Resolution No. 2010 -36 Authorizing Sharing Cost Savings From the
Calendar Year 2009 Health Insurance Plan with Employees.
8. Resolution No. 2010 -37 Authorizing the City of Kenai to Issue Revenue
Bonds, 2010 (Double Glacier Builders, LLC Project) in the Principal Amount of
Not to Exceed $1,700,000; the Execution and Delivery of a Loan Agreement to
Secure the Bonds; Fixing Certain Details of Such Bonds and Authorizing Their
Sale.
9. Resolution No. 2010 -38 Rejecting All Bids for the Project Entitled, "Elevated
Light Penetrating Walkway Ramps Kenai Dunes 2010."
10. Resolution No. 2010 -39 Awarding a Contract to Harbor Enterprises, Inc.,
d /b /a Alaska Oil Sales, for Furnishing and Delivering of Diesel Fuel.
Copies of the ordinances and /or resolutions are available in the Office of the Kenai City Clerk.
Please be advised, subject to legal limitations, ordinances and /or resolutions may have been
amended by the Council prior to ado,ptjp without further public notice.
Carol L. Freas, City Clerk
Posted: June 17, 2010
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