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2010-09-01 Council Packet
Attorney City Manager Finance Mayor /Council Clerk Police Department Senior Center Library (2) Fire Department Projects Manager Airport Parks Recreation Student Rep. Hall Binder i� Feltman /Floyd Kebschull /Carver Ogle Christine Clarion Mellish Schmidt (r/27 ott- k. AGENDA DISTRIBUTION MAKE 28 PACKETS COUNCIL PACKET DISTRIBUTION Sewer Treatment Plant Shop Building Maintenance Water /Sewer Streets Dock Animal Control Counter DELIVER Council and Student Representative Packets to Police Department Dispatch desk. The Clarion, Mellish Schmidt's Office will pick their packet up in my office. The portion of the agenda published by the Clarion should be emailed as soon as possible on packet day. The camera -ready agenda c: /myfiles /documents /minutes /agenda form for paper) is emailed to Denise at Peninsula Clarion (at email folder Work Session /Special Meetings, or Composition in Contacts or lbell@acsalaska.net). Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emailed to me and I hold them in my HTML file. Place information (meeting e- packet and agenda, resolutions and ordinances for public hearing, etc. on the city's webpage as soon as possible before leaving the office for the weekend. 4 N\ m 2 m u 0 0 0 0 0 0 7 a 0 0 0 k m ƒ 0 0 0 0 0 0 a m 0 0 0 0 2 0 0 0 0 m <ttuj /j/ 01 0 2 0 0 22 co 2W 00 m 0 0 0 0 j 0 0 j 0 c I II MI AIL I s 1 111111 s 11 II 1 IAN 1 2 SMALLEY 2100W 3eaRIaia MARQUIS 1 MOLLOY BOYLE AN R I 1 SMALLEY 1 3}100W 1 1 ELDRIDGE 1 SlfltHWW 1 1 MOLLOY BOYLE N I II MI AIL I s 1 111111 s 1 IAN 1 2 SMALLEY 2100W 3eaRIaia MARQUIS 1 MOLLOY BOYLE AN N31bOd 1 SMALLEY 1MOORE 1 ELDRIDGE 1 MARQUIS 1 MOLLOY BOYLE I II MI AIL I s 1 111111 1 IAN 1 PORTER 1 SMALLEY 2100W 3eaRIaia MARQUIS 1 MOLLOY BOYLE 0 w 1- O w J J Q co w cC 0 0 0 Q O J -J 0 w J O w J Q 2 0) w 0 0 2 w -J O CO z 2 w d' 0 d. w J J Q 2 w 0 0 r O O w J 3- O m COUNCIL MEETING OF ELDRIDGE ELDRIDGE ELDRIDGE E W W x CD a z c, in E1 z W 2 2 O 0 o z M W 2 d z 0 0 0 0 a 0 F cn w A A w 2 7 TESTIMONY SIGN -IN SHEET 1_; CZ LA-n 4 ea aC C, TESTIMONY SIGN -IN SHEET 1_; CZ LA-n ITEM A: CALL TO ORDER AGENDA KENAI CITY COUNCIL REGULAR MEETING SEPTEMBER 1, 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: SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. Richard Gentges, Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Storage Facility Project ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker) ITEM D: 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.) Ordinance No. 2497 -2010 Amending KMC Chapter 1.10 Entitled "The Council," in Its Entirety and Specifically Addressing the Procedures for Special meetings of the City Council and Making Technical Corrections 1 (At its July 21, 2010 meeting, the City Council substituted Ordinance No. 2497- 2010 and subsequently postponed it to the September 1, 2010 Council Meeting. There is a motion to adopt active and on the floor.) 2. Ordinance No. 2509 -2010 Amending the Official Kenai Zoning Map by Rezoning Southeast 1 /4 Southeast 1 /4 Section 4, Township 5 North, Range 11 West, Seward Meridian (SE 1 /4 SE 1 /4 Sec. 4, T5N, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (IH) 9 3. Ordinance No. 2510 -2010 Increasing Estimated Revenues and Appropriations in the Airport Improvement Capital Project Fund for Phase 1 of the Float Plane Basin Development 4. Ordinance No. 2511 -2010 Increasing Estimated Revenues and Appropriations in the Congregate Housing Improvements Capital Project Fund for Replacement of the Facility's Siding. 5. Resolution No. 2010 -50 Approving a Contract to Hattenburg Dilley 8v Linnell, LLC (HDL, LLC) for Kenai Water Treatment Plant Design Services for the Total Amount of 5452,660 6. Resolution No. 2010 -51 Approving a Contract to Wince Corthell -Bryson Consulting Engineers for Phase One Kenai Float Plane Basin Development Project for the Total Amount of $146,000.00 7. Resolution No. 2010 -52 Naming a Portion of Lot A, 1 -A Barron Park Subdivision Fire Addition, Daubenspeck Family Park 45 ITEM E: MINUTES 1. *Regular Meeting of August 18, 2010 ITEM F: ITEM G: UNFINISHED BUSINESS NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding 15,000 3. *Ordinance No. 2512 -2010 Increasing Estimated Revenues and Appropriations by $182,406.00 and Authorizing the Hiring of Three Additional Fire Fighters 4. Action /Approval Kenai City Council Student Representative Policy/ Suggested Amendments 74 5. Action /Approval October 5, 2010 City of Kenai General Election /Election Boards for Precincts 1, 2, and 3 76 6. Discussion Kenai Municipal Airport /Dock Fuel Supplier Jackson Enterprises, Inc 77 ITEM H: COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 15 18 22 43 48 69 70 71 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 I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 105 2. City Attorney 3. City Clerk 113 ITEM K: ADDITIONAL PUBLIC COMMENTS 1. Citizen Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments EXECUTIVE SESSION 1) A matter, the immediate knowledge of which would clearly have an adverse effect upon the finances of the City of Kenai /Jackson Enterprises Fuel Supply Contract. 2) A matter, the immediate knowledge of which would clearly have an adverse effect upon the finances of the City of Kenai /Cook Inlet Natural Gas Storage (CINGS) Project. ITEM L: ITEM M: ADJOURNMENT 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.) INFORMATION ITEMS KENAI CITY COUNCIL MEETING SEPTEMBER 1, 2010 Page No. 1. 9/1/2010 Purchase Orders Between 52,500 and $15,000 for Council Review 121 2. Budget Transfer in Capital Projects in Excess of 5,000 100 ADD TO: ADD AS: None. SEPTEMBER 1, 2010 REGULAR COUNCIL MEETING REQUESTED ADDITIONS /CHANGES TO THE PACKET CONSENT AGENDA REQUESTED BY: SUBSTITUTE: ITEM G -2, Purchase Orders Exceeding $15,000 Revised List adding an increase of existing purchase order /Blazy Construction related to Library Expansion Project. CITY MANAGER ITEM G -4, Student Representative Policy Amendments Comments from Council Member Marquis. CITY CLERK Information Item No. 3 Cook Inlet Ferry Demand Analysis CITY CLERK the do c NENAL ALASKA CITY OF KENAI ORDINANCE NO. 2497 -2010 Section 1. Form. This is a Code ordinance. Sections: 1.10.101 Makeup of the Council. Chapter 1.10 THE COUNCIL New Text Underlined [DELETED TEXT BRACKETED] Sponsored by: City Clerk AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC CHAPTER 1.10 ENTITLED "THE COUNCIL," IN ITS ENTIRETY AND SPECIFICALLY ADDRESSING THE PROCEDURES FOR SPECIAL MEETINGS OF THE CITY COUNCIL AND MAKING TECHNICAL CORRECTIONS. WHEREAS, City ordinances currently provide only for personal, written service of the a notice of a special meeting on City Council Members; and, WHEREAS, when special meetings are called, there is typically a demand upon the Council to act quickly and permitting service of notice of the special meeting only by delivery of a written notice to a Council Member in person or at their home can be slow and time- consuming; and, WHEREAS, alternative means to communicate the notice of a special meeting exist and those methods are predicted to provide actual notice to each Council Member of a special meeting, including verbal notification to the Council Member in person or by telephone as well as notification by electronic communication such as electronic mail; and, WHEREAS, it is in the best interests of the City to update the procedures for providing notice of special meetings to City Council Members to allow notice through different forms of electronic and verbal communication as well as written notice; and, WHEREAS, Chapter 1.10 of the Kenai Municipal Code contains antiquated terminology and conforming amendments are desirable to provide consistency between this chapter of the City Code and other provisions of City Code. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 2. Amendment of Chapter 1.10 of the Kenai Municipal Code: The Kenai Municipal Code, Chapter 1,10, The Council, is hereby amended in its entirety as follows: Ordinance No. 2497 -2010 Page 2 of 4 1.10.020 Powers. 1.10.030 Organization meeting. 1.10.040 Time of regular meeting. 1.10.050 Place of meeting. 1.10.060 Calling special meetings. 1.10.070 Council chambers and conference rooms. 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 Council[MEN] Members, as provided by the City Charter, Section 2 -1. When the [WORD] telly. "Councilman" or "Councilmen" or Council Member(s)" is used in the ordinances, in the Charter, and elsewhere, it shall be deemed to include the Mayor, as well as other Council[MEN] Members, unless otherwise clearly indicated by the context. 1.10.020 Powers. The Council shall have and may exercise all legislative powers not prohibited by law or by the City Charter. It shall have all powers delegated to it by the City Charter and by law[, SECTION 2 -4, AND OTHER SECTIONS THEREOF]. 1.10.030 Organization meeting. The terms of newly_elected Council[MEN] Members shall begin at the time prescribed for the second regular Council [M]meeting after their election, as provided by the City Charter, Section 10 -2. At said meeting, the Council[MEN] Member -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. 1.10.04.0 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. 1.10.050 Place of meeting. Meetings of the City Council, regular or special, [WILL] shall be held in the Council [C]chambers in the City Hall unless otherwise designated by the Mayor. This provision shall not apply to executive sessions of the Council. New Text Underlined; [DELETED TEXT BRACKETED' 2 Ordinance No. 2497 -2010 Page 3 of 4 1.10.060 Calling special meetings. (al The Mayor or any four Council[MEN1 Members may calla special meeting[S] of the Council upon not less than 48- hours' written or oral notice communicated to each Council Member and the Mayor [THE CITY CLERK SHALL GIVE THE NOTICE OF SUCH MEETINGS TO EACH COUNCILMAN OR CAUSE IT TO BE LEFT AT A CONSPICUOUS PLACE AT HIS ABODE OR TO BE GIVEN TO A MEMBER OF HIS FAMILY AT LEAST FIFTEEN (15) YEARS OLD AT HIS PLACE OF ABODE, AT LEAST FORTY -EIGHT (48) HOURS BEFORE THE TIME OF HOLDING SUCH SPECIAL MEETING.] A special meeting called on shorter notice [THEN] than forty -eight (48) hours shall be a valid meeting if the Council, by unanimous vote of all Councii[MEN] Members present at the meeting, adopts a motion or resolution finding that an emergency justifying such meeting exists and that the public interest requires the Council to meet on shorter notice. (b) The City Clerk shall give oral or written notice of a special meeting to each Council Member at least fortv -eight (48) hours before the time of holding such special meeting; however, no service of notice of the special meeting need be made upon the person(s) who issued the call of the special meeting or where the call of the meeting was made at a regular meeting of the Council. Written notice shall be considered sufficient if delivered by electronic means or if delivered to the usual place of residence or business of any Council Member, or to any person residing or working therein who is over the age of fourteen years. The City Clerk shall provide Council Members with the agenda of the special meeting at least twenty -four (24) hours in advance of the meeting, where practicable. For the purpose of giving notice of a special meetings, reasonable public notice is given if a statement containing the date, time, and place of the meeting, along with the expected subiect(s) of discussion, is published not less than twenty -four (24) hours before the time of the meeting by posting the statement in a minimum of three public places within the City, one of which shall be the official bulletin board of the City at City Hall. A copy of the notice of the special meeting shall also be delivered to a newspaper of general circulation in the City; but, this requirement shall not be jurisdictional to the holding of any such meeting. (d) The City Clerk shall include in the journal of the special meeting an affidavit (or affidavits) documenting service of the notice of the special meeting on the Council Members as well as the publication of the notice and agenda of the special meeting. (e) No business may be transacted at any special meeting except as stated in the notice of the meeting. 1.10.070. Council chambers and conference rooms. Scheduling the use of the Council chambers and the Clerk /Council conference room in the City Clerk's office shall be under the direction of the City Clerk. The rooms shall be used solely for the transaction of the business of the City except that the Clerk may permit groups working with City staff on a City related issue, groups of whom the City is a member, and other local, state, and /or federal agencies to use the rooms for public purposes, and at no cost, after request by the entity and approval by the City Clerk. New Text Underlined' )DELETED TEXT BRACKETED) -3- Ordinance No. 2497 -2010 Page 4 of 4 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 first day of September, 2010. ATTEST: Carol L. Freas, City Clerk New Text Underlined' [DELETED TEXT BRACKETED] 4- PAT PORTER, MAYOR Introduced: July 7, 2010 Second Reading July 21, 2010 Third Reading: September 1, 2010 Adopted: September 1, 2010 Effective: October 1, 2010 Cif Attachment TO: Mayor and Council Members FROM: Carol L. Freas, City Clerk (C• F DATE: July 1, 2010 RE: ((Village with a Past, Ci y with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -75351 FAX: (907) 283 -3014 www.ci.kenai.ak,us MEMO DUM ORDINANCE .NO. 2497 -2010, AMENDING KMC CHAPTER 1.10, ENTITLED "THE CO UNCIL," IN ITS ENTIRETY AND SPECIFICALLY ADDRESSING THE PROCEDURES FOR SPECL4L MEETINGS OF THE CITY COUNCIL AND MAKING TECHNICAL CORRECTIONS. Ordinance No. 2497 -2010 was developed in a collaborative effort between the City Attorney and City Clerk to address concerns with the procedures to call special meetings which have become fairly burdensome when considering the current availability of alternative means of communication. Please note the following: Suggested amendments to modernize te inology and provide consistency between this chapter and other provisions of the Code, i.e. the use of "Council Member." During Council discussion at the June 16, 2010 Council Meeting, it was suggested the number of Council Members required to call a special meeting be amended. In researching the issue, it was noted this number is set by the City Charter. The Charter cannot be changed without a vote of the people. The most significant changes are those in KMC 1.10.060 which offer additional means of notification of special meetings; identifies a 48 -hour notice of service of a special meeting; identifies at least a twenty -four (24) hour notice for the Clerk to provide Council Members with the agenda of the special meeting; identifies alternatives to publishing and posting of the agenda; provides for the Clerk to include an affidavit (or affidavits) as part of the meeting journal to document service; and, directs that no other business may be transacted at any special meeting except as stated in the notice of the meeting. I believe the suggested amendments offer a much more functional and practical process for when special meetings are called. If you have any questions, please contact me. KE SA KA v MEMO NDUM TO: Mayor and Council Members FROM: Carol L. Freas, Cjq�,Cle rk DATE: July 12, 2010 %G/ 'Village with a Past, City with a Ft-day-en 210 Fidaigo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 FAX: (907) 283 -3014 www.ci.kenai.ak.us RE: ORDINANCE NO. 2497.2010 Recommended Substitute to Correct Scribner .Error After the publication of the proposed Ordinance No. 2497 -2010, the City Attorney noticed she and I failed to notice a portion of the existing code within the proposed amended paragraph 1.10.060(a) was unintentionally omitted from the ordinance. The omitted porti.on of the paragraph is currently in the Code at the third sentence of KMC 1.10.060. It states, A special meeting called on shorter notice then forty -eight (48) hours shall be valid meeting if the Council, by unanimous vote of all Councilmen present at the meeting, adopts a motion or resolution finding that an emergency justifying such meeting exists and that the public interest requires the Council to meet on shorter notice. The sentence should be retained in the ordinance, although minor conforming amendments are suggested. I have consulted with the City Attorney and she has confu ued this change is not such a substantial change as would require a second public hearing. The proposed amendment reads as follows: A special meeting called on shorter notice [THEN] than forty -eight (48) hours shall be a valid meeting if the Council, by unanimous vote of all Council[MEN] Members present at the meeting, adopts a motion or resolution finding that an emergency justifying such meeting exists and that the public interest requires the Council to meet on shorter notice. The sentence with the proposed amendments has been incorporated into the attached Substitute Ordinance No. 2497 -2010. If you have any questions, please contact me. BOB MOLLOY (907) 283-7373 bob@molloyforcouncil.com TO: Mayor Porter Vice Mayor Smalley, Council Members Boyle, Eldridge, Marquis, Moore FROM: Bob Molloy, Council Member DATE: August 25, 2010 SUBJECT: Ordinance 2497 -2010, Amendment to KMC 1.10 Amending Procedures for Special Meetings This memo is to report on the status and to provide notice that at the 9/1/10 Council meeting, I plan to request Council support for a postponement of Ordinance 2497 -2010 to the September 15, 2010 Council meeting for an additional public hearing, at which time a substitute will be offered. Ordinance 2497 -2010 proposes amendments to KMC Chapter 1.10 to revise the procedures for calling special meetings. The ordinance was introduced on July 7 and at its second reading on July 21 the Council voted to postpone further consideration of the ordinance until the September lst meeting so that more work could be done on the ordinance to address questions and concerns that were expressed about the special meeting process. Since July 21, Ms. Fleas, Ms. Stearns, and I met to discuss a substitute ordinance to incorporate new ideas, including: Distinguishing between special meetings called for business purposes and for true emergencies; Adding a definition of "emergency" that fairly tracks the definition to justify an emergency ordinance in the City Charter at p. 2 -13; Strengthening the newspaper publication requirement, for notice to the public; Lengthening the required notice to Council Member period of calling a special meeting in order to allow newspaper publication, but allowing a special meeting to be called on shorter notice if the Council, by unanimous vote of council members present at the meeting, adopts a motion or resolution finding that an emergency justifying such meeting exists and that the public interest requires the Council to meet on shorter notice; Adding language that the City Clerk will provide Council Members with the agenda of the meeting at the same time as providing notice of the meeting. However, due to the challenges of coordinating multiple schedules and the press of business, I have not finalized my review of the first draft of a proposed substitute, and we have not yet had the opportunity to meet with Mr. Koch to review a first draft of the proposed substitute. After I complete my review of the first draft, I would like to meet with the City Clerk, City Attorney, and City Manager for discussion and potential revisions before finalizing a substitute. I would appreciate additional time to further consider modifications in consultation with the City Clerk, City Attorney, and City Manager, and I think that this can be accomplished by 9/9/10, the deadline for the packet for the 9/15/10 Council meeting. There could still be a second hearing at the 10/6/10 Council meeting, since the ordinance would not fall off the agenda until the second meeting of October, if not acted on before then. the c y o/ KE AI. ALASKA CITY OF KENAI ORDINANCE NO 2509 -2010 AN ORDINANCE OF' THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING SOUTHEAST 1/4 SOUTHEAST 1/4 SECTION 4, TOWNSHIP 5 NORTH, RANGE 11 WEST SEWARD MERIDIAN (SE 1/4 SE 1 Sec. 4, T5N, R11W S.M.) FROM RURAL RESIDENTIAL (RR) TO HEAVY INDUSTRIAL (IH). WHEREAS, the property is currently zoned Rural Residential (RR); and, WHEREAS, the 2003 Comprehensive Plan Land Use classifies the land as Conservation /Open Space; and, WHEREAS, Conservation /Open Space is defined as public lands in the Comprehensive Plan; and, WHEREAS, this property is privately owned and no longer meets the definition of Conservation /Open Space as defined in the Comprehensive Plan; and, WHEREAS, the owner of this property initiated a request to rezone the property; and, WHEREAS, the rezone meets the requirements of KMC 14.20.270; and, WHEREAS, the request is to rezone the property to Heavy Industrial (IH); and, WHEREAS, rezoning the property to Heavy Industrial (IH) will expand an adjacent boundary; and, WHEREAS, the property owner would like to develop this property in a manner consistent with the Heavy Industrial Zone which is consistent with adjacent developments; and, WHEREAS, rezoning the property to Heavy Industrial (IH) is consistent with the Comprehensive Plan. WHEREAS, on August 11, 2010, the Kenai Planning and Zoning Commission voted unanimously to rezone the parcel. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that the official Kenai Zoning Map is amended by rezoning the Southeast 1/4 Southeast 1/4 Section 4, Township 5 North, Range 11 West Seward Meridian (SE 1/4 SE 1/4 Sec, 4, TSN, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (IH) as shown on Attachment A. Sponsored by: Planning Zoning Ordinance No. 2509 -2010 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of September, 2010. ATTEST: Carol L. Freas, City Clerk PAT PORTER, MAYOR Introduced: August 18, 2010 Adopted: September 1, 2010 Effective: October 1, 2010 Conservation Limited Commercial Central Mixed Use Central Commercial Ordinance No. 2509 -2010 Proposed Rezone Rural Residential to Heavy Industrial General Commercial Light Industrial Heavy industrial Recreation Existing Zoning Rural Residential Rural Residential 1 Suburban Residential Suburban Residential 1 Suburban Residential 2 Urban Residential Historic Townsite Education MEMO: TO: Terry Eubank, Acting City Manager FROM: Marilyn Kebschull, Planning Administration DATE: August 12, 2010 SUBJECT: Ordinance No. 2509 -2010 Rezone "Kffaye with a Past, IGity with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 M Telephone: 907 283 -7535 FAX: 907 283 -3014 Ordinance No. 2509 2010 is an ordinance amending the official City of Kenai zoning map to rezone the parcel legally described as Southeast 1/4 Southeast Section 4, Township 5 North, Range 11 West Seward Meridian (SE SE 1 Sec. 4, T5N, R11 W S.M.) from Rural Residential to Heavy Industrial. KMC 14.20.270 provides procedures and criteria for an amendment. An application to rezone the property was submitted by Cook Inlet Natural Gas Storage, LLC (Enstar) who recently purchased the property from the University of Alaska. The property is located off Beaver Loop Road near the intersection of Bridge Access Road. According to the Kenai Peninsula Borough, this property is 40 acres in size. The property is vacant. This is the location of the proposed natural gas storage facility. The Rural Residential zone does not allow gas manufacturing or storage. Rezoning the property to Heavy Industrial would provide for the use through the conditional use process. I reviewed the application and found it met the requirements of KMC 14.20.270. The Comprehensive Plan classifies the property as conservationlopen space. Conservation lands designate public lands which are set aside for open space. With the sale of this property from the University to Enstar, the designation is no longer accurate. The rezone would update the Comprehensive Plan to bring the property into conformance with the plan. The rezone to Heavy Industrial will expand an adjacent boundary and is consistent with development in the area, Details of the review are outlined in the body of the ordinance. The Planning Zoning Commission held a public hearing on the application on August 11th and voted unanimously to recommend the rezone As prescribed in KMC 14.20.270, that recommendation is being forwarded to City Council for their consideration. -12- NAME: Cook Inlet Natural Gas Storage, LLC CITY OF KENAI PLANNING AN in ZONING COMMISSION RESOLUTION NO. PZ16 -26 REZONE PERMIT 3. The proposed zoning district is Heavy Industrial CHAIRPERSON. e with a Past, et with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 Fax: 907 -283 -3014 www.ci.kenai.ak.us 1 ATTES -13- A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDING APPROVAL TO THE KENAI CITY COUNCIL OF THE REQUESTED REZONING SUBMITTED BY ADDRESS: 3000 Spenard Road, Anchorage, AK 99503 LEGAL: SE 1 /4 SE'/ Sec. 4, T5N, R11 W S.M. (1377 Bridge Access Road PARCEL 04901311 WHEREAS, the Commission finds the following: 1. The subject property is currently zoned Rural Residential 2. The present land use plan designation is Conservation Open Space 4. An appropriate public hearing as required was conducted August 11, 2010 5. That the following additional facts have been found to exist: See Page 2. 6. Applicant must comply with all Federal, State, and local regulations. NOW, THEREFORE BE IT RESOLVED, by the Planning and Zoning Commission of the City of Kenai that the petitioned REZONING of the SE 14 E Sec, 4. TSN. R11W S.M. (1377 Bridge Access Road). Kenai Peninsula Borough Parcel #04901311 is hereby recommended to the Kenai City Council. PASSED BY THE PLANNING AND ZONING COMMISSION THE CITY OF KENAI, ALASKA, AUGUST 11, 2010. PZ10 -26 Resolution Additional Facts Page 2 1. The property is currently zoned Rural Residential. 2. The property is classified in the Comprehensive Plan as Conservation /Open Space. 3. Conservation /Open Space is defined as public lands in the Comprehensive Plan. 4. The property is privately owned and no longer meets the definition for Conservation /Open Space as defined in the Comprehensive Plan. 5. An application to rezone the property to Heavy Industrial has been received. 6. The application meets the requirements for an amendment as defined under KMC 14.20. 270. 7. Rezoning the property to Heavy Industrial will expand an adjacent boundary. S. Rezoning to Heavy Industrial conforms to the Comprehensive Plan. -14- CITY OF KENAI ORDINANCE NO. 2510 -2010 Suggested by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND FOR PHASE 1 OF THE FLOAT PLANE BASIN DEVELOPMENT. WHEREAS, City of Kenai Ordinance 2431 -2009 appropriated $60,000 from the Airport Special Revenue Fund for completion of a supplemental environmental assessment at the Kenai Airport's Float Plane Basin; and, WHEREAS, the City has received a grant offer from the Federal Aviation Administration to fund the Supplemental Environmental Assessment and complete design on Phase 1 of the Basin's Development; and, WHEREAS, grant funds have been awarded. totaling $204,867 comprised of 95% FAA $199,614, 2.5% State of Alaska $5,253 and requiring a 2.5% local share of $5,253; and, WHEREAS, funds appropriated by Ordinance 2431 -2009 are allowable as project match with the excess $54,747 ($60,000 original appropriation less $5,253 required matching funds) available to be returned to the Airport Special Revenue Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Airport Improvements Capital Project Fund Increase Estimated Revenues: Federal Grant State Grant Increase Estimated Appropriations: Transfer to Airport Special Revenue Fund S 54,747 Administration 4,120 Engineering 146,000 $294,351 New Text Underlined• [DELETED TEXT BRACKETED -15- $199,614 5.253 $2C1 M2 Ordinance No. 2510 -2010 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of September, 2010. A I EST: Carol L. Freas, City Clerk Approved by Finance New Text Underlined• DELE TED TEXT BRACKETED -16- PAT PORTER, MAYOR Introduced: August 18, 2010 Adopted: September 1, 2010 Effective: September 1, 2010 enai NlconicEpa/ Airport Memo To: Rick R. Koch City Manager From: Mary Bondurant Airport Manag Date: August 11, 2010 Subject: FAA Grant Offer "Float Plane Basin Phase 1" In August of 2009, the City appropriated $60,000 to conduct a Supplemental Environmental Assessment to address the projects associated with the float plane basin development. The assessment is concluded and the FAA has been given approval to issue a grant. A federal grant application for $210,120 was submitted to the FAA on July 28, 2010 and the City has received the FAA's grant offer for $199,614 (95 The Airport and State of Alaska are each responsible for 2.5% of this project or $5,253. The grant reimburses the Airport's cost for the Supplemental Environmental Assessment and starts the design process,. Cc: Terry Eubank Finance Director "Servinwthe'Qreater Kenai: P evtinwl&' 305 N. WILLOW ST. SUITE 200 KBJAI, ALASKA 99611 TELEPHONE 907.283 -7951 FAX 907 2833737 www.ci.kenai.ak.us. -17- Me ,ry J KENAI. CITY OF KENAI ORDINANCE NO. 2511 -2010 Suggested by Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE CONGREGATE HOUSING IMPROVEMENTS CAPITAL PROJECT FUND FOR REPLACEMENT OF THE FACILITY'S SIDING. WHEREAS, during the preparation process for the FY 11 City Budget, a $250,000 siding replacement project was identified for the City's Vintage Pointe Congregate Housing Facility; and, WHEREAS, proposed funding for the project was from a $154,208 transfer from the Congregate Housing Enterprise Fund and the estimated $95,792 in residual funds from completion of the Center's Dry Sprinkler Replacement and Window Replacement projects; and, WHEREAS, actual residua] balance from the completed projects was $104,969.92; and, WHEREAS, total funds available for the project including the residual project balances and the FY11 transfer is S259,177.92. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Airport Improvements Capital Project Fund Increase Estimated Revenues: Appropriation of Fund Balance Transfer from Congregate Housing Enterprise Fund Increase Estimated Appropriations: Engineering Administration Charges to (from) Other Departments Construction New Text Underlined [DELETED TEXT BRACKETED] -18- $104,969.92 154,208.00 $259,177.92 52,450.00 2,000.00 10,000.00 194 727.92 $259 177.92 Ordinance No. 2511 -2010 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of September, 2010. ATTEST: Carol L. Freas, City Clerk Approved by Finance: -19- PAT PORTER, MAYOR New Text Underlined' [DELETED TEXT BRACKETED] Introduced: August 18, 2010 Adopted: September 1, 2010 Effective: September 1, 2010 Ni hc KENAI, ALASKA To: Rick Koch, City Manager 2" From: Terry Eubank, Finance Director Date: August 12, 2010 Re: Ordinance 2511 -2010 Wage 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 2511 -2010 appropriates funds for design and installation of new siding at the City's Vintage Pointe Congregate Housing Facility. The project discussed during the FY11 budget process included design and installation of a vinyl siding product. The natural wood siding, while being aesthetically pleasing, requires significant maintenance over its life. Vinyl siding will provide a nearly maintenance free solution for the center, significantly reducing future maintenance costs. Funding for the project is proposed from three different sources. The first two sources are excess funds remaining after completion of the Dry Sprinkler Pipe Replacement Project, $76,171.46, and the Window Replacement Project, $28,798.46. Both projects were completed during FY10. The remaining source of funds is a $154,208 transfer from the Congregate Housing Enterprise Fund budgeted in FY11. Total funds available for and being appropriated by Ordinance 2511 -2010 to the project are $259,177.92. -20- KENAl, ALASKA MEMO: 'Village with a Past, Cc with a Future" TO: City Council V FROM: Rick Koch DATE: August 26, 2010 SUBJECT: Ordinance 2511 -2010 Congregate Housing Exterior Siding Project The purpose of this correspondence is to recommend approval of the above referenced ordinance. The existing siding at Vintage Pointe is comprised primarily of natural wood siding requiring significant maintenance to maintain its appearance and utility. The maintenance schedule is to re- stain /re -seal the south face of the building every three years and to re- stain /re -seal the remainder of the building every five years. The cost associated with this maintenance over a 25 year period (2010 dollars) is as follows: Cost to re- stain /re -seal south face of building $50,000' Cost to re- stain /re -seal remainder of building 575,000* South face 8 x $50,000 $400,000 Remainder 5 x 575,000= 375,000 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 atierxj 1 11 11 1992 Telephone: 907 -283 -7535 FAX: 907 283 -3014 Total Estimate for 25 Year Period $775,000 *cost estimates established through competitive bid /vendor discussions process The estimated cost for a high quality vinyl siding with a minimum 25 year warranty /life is $250,000. This was identified in the FY11 City Budget. Included in the design consultant agreement are meetings with the administration and residents to determine the specific product /color /pattern. If you have any questions, please contact me at your convenience. -21- the c,tv a( KENA ALASKA CITY OF KENAI RESOLUTION NO. 2010 -50 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A CONTRACT TO HATTENBURG DILLEY LINELL, LLC. (HDL, LLC.) FOR KENAI WATER TREATMENT PLANT DESIGN SERVICES FOR THE TOTAL AMOUNT OF $452,660. WHEREAS, this agreement will provide professional engineering and architectural services through construction document and bidding phase for the construction of the water treatment facility; and, WHEREAS, Hattenburg Dilley Linnell, LLC, (HDL, LLC), conducted the Arsenic Groundwater Study (AGS) for the City; and, WHEREAS, the AGS explored alternative water sources and water treatment methods for color removal from existing groundwater; and, WHEREAS a specific water treatment methodology was developed which results is the production of water with low color and with arsenic levels meeting the 2006 EPA water quality standards; and, WHEREAS, the City Council conducted a work session with HDL, LLC, and the city administration to discuss the proposed treatment methodology; and, WHEREAS, a proposal was received from HDL, LLC, on August 24, 2010 to provide design and bidding phase services for the construction of a 3,000 s.f. building, new wells, piping systems, 36,000 gallon storage reservoir, sewer main extension, insulation refurbish the existing 60,000 gallon water storage reservoir, stand -by power generation, water treatment system, and new and upgraded system controls; and, WHEREAS, the proposed fee is reasonable and within recognized design percentages of estimated project construction cost; and, WHEREAS, the recommendation from the City Administration is to award the contract to HDL, LLC. for the total cost of $452,660; and, WHEREAS, award to HDL, LLC. would be in the best interest of the City; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for Kenai Water Treatment Plant Design Services be awarded to HDL, LLC. for the total amount of $452,660. -22- Resolution No. 2010 -50 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of September, 2010. ATTEST: Carol L. Freas, City Clerk Approved by Finance: -23- PAT PORTER, MAYOR ike city of KENA� SKA Rick, Wage with a past, City with a FFtur'e" 210 Fidaigo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535, Ext. 236 FAX: (907) 283 -3014 -24- MEMO' NDUM TO: Rick Koch, City Manager FROM: Kevin Lyon, Capital Projects Manager l DATE: August 26, 2010 SUBJECT: AWARD OF CONTRACT; Kenai Water Treatment Plant Design Services This project will provide design and bidding phase services for the construction of the water treatment plant near well 2 (Beaver Creek Aquifer), consisting of a 3,000 s.f. building and new wells. The design will provide for: treatment and supply piping systems, new 36,000 gallon storage reservoir, and the sewer main connection for back wash. The existing water storage reservoir will be refurbished and insulated. The plant will have a stand -by power generation system and the existing system controls will be updated. The water treatment methodology that was developed under the previous contract with HDL will be utilized in the treatment plant design and will provide for the production of water with low color and with arsenic levels meeting the 2006 EPA water quality standards. Essentially the design team will remain the same as previous contract; however, the local civil engineering firm working on the Lawton Drive project has joined the team to provide for seamless integration to the water and sewer systems. The schedule provides for design to occur over the winter with the project scheduled for the construction bid process to begin in the spring of 2011. This schedule is necessary to meet the intent and requirements of the Alaska Department of Conservation's Bilateral Compliance Agreement with the City. The attached is Resolution 2010 -50 recommending award of the contract to Hattenburg Dilly Linnell, LLC. for the total cost of $452,660.00. CIVIL ENGINEERING GEOTECNNICAL. ENGINEF_FBNG TRANSPORTATION ENGINEERING ENVIRONMENTAL SERVICES PLANNING SURVEYING CONSTRUCTION ADMINISTRATION MATERIAL TESTING August 24, 2010 City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 -7794 Re: Fee Proposal for Engineering Services Kenai Water Treatment Plant Dear Mr. Koch: t HATT ENBU#RG DH Engineering ants Hattenburg Dilley Linnell (HDL) is pleased to present this fee proposal for design of a new Water Treatment Plant (WTP) to remove color from City Well 2, a backwash and recycling storage tank, a backwash line to the City's sewer and related site work and yard piping to connect the new WTP to the City's existing system. Background. HDL has previously conducted an arsenic groundwater study for the City to search for a new groundwater source with sufficient quantity of water that is low in arsenic. After extensive analysis, it was determined that two Locations (near Well 2, and at an exploratory well near Second Avenue and North Spruce Street) would be further studied. The two locations produced adequate quantities of water with arsenic concentrations below the federally mandated maximum contaminant level (MCL) of 10 parts per billion (ppb), but with color above the secondary MCL of 15 platinum cobalt units (PCU). Upon review of treatment technologies, it was determined that treatment for color removal would be less expensive than arsenic removal because of the difficulty in disposing of the arsenic -laden backwash sludge. In late 2009 and early 2010, HDL subcontracted HDR Alaska, Inc. (HDR) to perform bench and pilot scale raw water testing at the two well locations to better characterize the water chemistry and to optimize the treatment process for color removal. Color at Well 2 was in the range of 50 -60 PCU, whereas color in the Spruce Avenue water was in the range of 90 -100 PCU. The bench and pilot scale testing confirmed that color removal at Well 2 would be less complicated and expensive than at the Spruce Avenue well, because of the lower color. The pilot scale testing also confirmed that the simplest color treatment process with the least operating cost would be conventional coagulation /filtration. However, for color removal below the secondary MCL of 15 PCU, handling of hazardous acidic and caustic chemicals was required to adjust the water's pH. In response, the City requested that the color target be raised to 20 PCU which further simplified the treatment process and eliminated the use of the hazardous chemicals. Summary. Based on our prior engineering work and studies, the City has decided to use the Well 2 aquifer as the City's primary water supply and remove color to a target level of 20 PCU. The treatment process for color removal from this particular source water will use a polyaluminum chloride (PACL) coagulant approved for drinking water, sand media filters, and periodic backwashes to maintain the filters. The backwash will pump non -toxic organic floc and coagulant sludge into a 3335A7ctic f3oulevard Sufe 'IOC w Anchorage Alaska 99503 Phone; 907.564.2120 Fax: 907.564.2122 202 W. Elmwood Avenue Suite 1 Palmer Alaska 99645 Phone: 907.746.5230 Fax: 907.746.5231 -25- RE: Fee Proposal for Kenai WTP August 24, 2010 Page 2 of 2 new holding tank to allow time for the floc and sludge to separate and settle. The settled sludge will be discharged to the City's sewer system near the WTP site while the clear supernatant will be recycled back to the headworks of the WTP. The WTP will be sized for an average daily flow of 1.5 million gallons per day (MGD), and a maximum peak daily flow of 2.0 MGD, which is estimated to be the City's water demand for the year 2035. The water demand forecast is based on the past 20 years of population growth, which is approximately 1 percent per year. We propose to provide professional engineering and surveying services required for design of the water treatment system described herein and to assist the City with competitive bidding and selection of a contractor to construct the work. We understand that the improvements are to be constructed under one contract and are planned for the 2011 construction season. Our work will include a geotechnical investigation, a design survey of the proposed WTP site, environmental permitting, ADEC design review coordination, preliminary and final designs and bidding assistance. We anticipate that most of the work will be completed by HDL staff. Process, instrumentation, controls, mechanical, and electrical design will be performed by HDR Alaska, Inc. (HDR) and the structural and architectural design on the building will be done by David Thompson, P.E. Task 1 C_eo•tech.n €cal investigation SCOPE OF SERVICES The geotechnical investigation will include a site geotechnical study with borings advanced at the proposed treatment facility building as well as borings advanced for the proposed 36,000- gallon backwash storage tank and disposal line. A total of 4 borings will be advanced for the treatment facility and backwash disposal line. These borings will range from 15 to 30 feet in depth and are approximately located in the attached figure. We will use the Call Before you Dig Locate Service to locate utilities prior to drilling. Hughes Drilling of Soldotna, Alaska will be our drilling contractor. We will notify you in advance of the drilling date, Facility /Location Number of Borings Depths (ft) Water Treatment Building 2 20 (each) 36,000 -gal Storage Tank 1 30 Disposal Line 1 15 Split -spoon samples will be obtained at 2.5 feet, 5 feet, 10 feet, and every 5 feet thereafter. An engineering geologist from our office will be on -site during the drilling in order to evaluate the nature of the soils, collect samples, and to observe the drilling action, Soil samples will be identified in the field and stored in heavy plastic bags to reduce moisture loss. A slotted 1 -inch PVC pipe will be placed In selected borings. The borings will then be backfilled with native material and a cap will be placed on the top of the PVC. Groundwater levels will be measured several weeks after drilling allowing for groundwater levels to stabilize. -26- RE: Fee Proposal for Kenai WTP August 24, 2010 Page 3 of 3 Select samples will be analyzed in our laboratory for moisture content and grain size. After the field and laboratory work is completed, a geotechnical report will be prepared detailing the geotechnical data, laboratory results, and our interpretation of the subsurface conditions, Within the report we will provide recommendations for applicable foundation types and site development issues. The geotechnical report will be stamped by a professional engineer and we will supply one loose original, two bound copies, and a PDF of the report. Task 2 HDL's survey crew will provide a survey of topographic and planimetric features of the WTP site for the purposes of design. The limits of the survey will extend south to the Kenai Spur Highway, north 300 feet from the existing well house, west to include Shotgun Drive, and east to Beaver Creek. The previous Nelson survey will be used for vertical and horizontal control. HDL will recover sufficient record property corners to establish the parcel boundary and set additional vertical and horizontal control for data collection and future construction staking. Topographic data will be gathered on a 50 -foot grid. We will reduce the data and deliver the final survey base map to our in -house designers. We will provide a stamped survey control diagram for the final plan set. Task 3 —Per The project is funded with state and local monies. The use of federal funds is not anticipated; therefore the National Environmental Policy Act (NEPA) process will not be used. We will make application for, process, pay for plan review and application fees, answer questions and comments, and coordinate plan reviews, permits, and regulatory approvals for the following: 1. ADEC Plan Review and Approval. We will submit applications, stamped design drawings, specification, design calculations and reports to the Alaska Department of Environmental Conservation (ADEC) for the review and approval of the WTP and related water system improvements. Anticipated checklists include Approval to Construct General, Storage, Distribution, Treatment Media Filtration. (HDR will be the lead on this subtask) 2. ADEC APDES Industrial Discharge Permit. We will submit permit applications, stamped design drawings, specifications, design calculations and reports to the Alaska Department of Environmental Conservation (ADEC) Alaska Pollution Discharge Elimination System APDES) for the state's review and approval of an industrial discharge permit to the wastewater systems. (HDL lead) 3. ADEC Separation Waivers. We will submit waiver applications, stamped design drawings, specifications, design calculations and reports to the Alaska Department of Environmental Conservation (ADEC) for approval of separation waivers between the water and sewer systems. (HDL lead) 4. State Fire Marshall Review and Approval. The Alaska State Fire Marshall indicated their -27- 'xrltN URG_pnLLEY R G.m et, yr cenxuii,���rJ,� RE: Fee Proposal for Kenai WTP August 24, 2010 Page 4 of 4 review and fee is waived and that building plan approval would be by the City of Kenai building official. 5. State Coastal Zone Consistency. We will prepare and submit a State of Alaska Coastal Zone Project Questionnaire to the state. (1-101 lead) 6. City of Kenai Plan Review Building Permit. We will submit plans and specifications to the City of Kenai building official for review and approval, We assume the plan review and building permit fee is waived. (HDL lead) 7. Storm Water Management. We will prepare a storm water management specification and will require the contractor to develop and pay for a Storm Water Pollution Prevention Plan (SWPPP). (HDL lead) We do not anticipate permits for the following: COE 404 Wetlands permit, Alaska Fish Game Title 16 Habitat permit, Utility Permit from Alaska Department of Transportation and Public Facilities for utilities located within their ROW. Task 4 Preliminary Design (35%) The purpose of a 35% Preliminary Design submittal is to establish the basis for design. During the Preliminary Design phase, we will refine the design, and provide a report, calculations, preliminary plans, and an updated cost estimate. The following work will be provided: ADEC Coordination. HDL will meet with ADEC to discuss the details of the project and inform them of our progress. Their early involvement will assure that any ADEC concerns are addressed early -on in a cooperative manner. Preliminary Engineering Report (PER). We will prepare a PER. The purpose of the PER will be to document the design standards and criteria, provide engineering and code analysis, and update the engineer's estimate of probable construction cost using the more refined design information. The PER will be based on the April 2010 Draft Basis of Design Report prepared by HDR during the pilot testing. However, the PER will include more site information as well as revisions requested by the City and ADEC subsequent to the HDR report. Conceptual Project Drawings. Along with the PER, we will prepare a set of conceptual project drawings. These drawings will update the site layout for the proposed improvements, conceptual plan and section views of the building and improvements, and an illustrative elevation of the building. Conceptual project drawings will be submitted to the City for approval prior to proceeding to the design development phase. Preliminary Cost Estimate. Based on the data presented in the PER and concept drawings, we will prepare a preliminary cast estimate. We will solicit quotes for major equipment items and use recent bid tabulation data to compile an estimate for the projected construction costs of the -2 JIU.•'&.tNNFN, n an�unnrom� RE: Fee Proposal for Kenai WTP August 24, 2010 Page 5 of 5 proposed improvements. This cost estimate can then be used for budgetary purposes to acquire additional funding sources if required. Design Review Meeting. HDL and HDR will teleconference with the City after the City has reviewed the provided information. The purpose of the meeting is to discuss City comments and how the design team will incorporate the comments into the subsequent design stage. Task 5 Design Development (65%) Upon approval of the PER, we will prepare a set of construction documents to the 65% stage. During this phase of design, the proposed improvements will be firmly established and plans and specifications brought to a point at which the proposed improvements are clearly illustrated to the City. We will prepare a set of construction documents; including plans prepared using AutoCAD' 2008 and a draft Project Manual of bidding and contract documents based on the Engineer's Joint Contract Documents Committee (EJCDC) Masterspec, as amended for local, state and federal provisions. The documents will address various site and building design features, detail major process equipment and piping, and address construction contractor responsibilities. The following major construction elements are anticipated for the 65% design submittal: Civil Site Plan. The existing Well 2 building is situated on an approximate 7.59 acre tract located on the north side of the Kenai Spur Highway, near the intersection of Beaver Loop Road. An existing gravel access road and pad provide access to the existing building and a chain link fence provides site security. We anticipate that the new WTP will require expansion of the existing gravel pad to the north of the existing Well 2 building, and will include minor site grading, fence relocation and water and sewer yard piping. Sewer Main Extension. A City sewer main extension project by Nelson Engineering will extend an 8- inch HOPE sewer force main to the north side of the Kenai Spur Highway right -of -way. As part of this project, we will contract with Nelson to extend a pressure sewer line from the right -of -way to within 5 feet of the backwash point. We do not anticipate that a DOT utility permit will be required for this work. Water Treatment Building and Backwash Settling Tank. Per HDR's Basis of Design Report dated April 9, 2010 titled "Initial Evaluation of Treatment Technologies for Color Removal a water treatment building size of 72'x43' is anticipated. Along with the water treatment building, a new 36,000 gallon, above ground, insulated tank will be required to separate backwash sludge from the recycled supernatant. Dave Thompson, P.E., our structural consultant, will provide structural and foundation design services for the treatment building and foundation, and the above ground tank foundation and anchoring system. The above ground tank will be specified as a design -build item using a performance specification. -29- UR RE: Fee Proposal for Kenai WTP August 24, 2010 Page 6 of 6 Insulate and Refurbish Existing 60,000 Gallon Water Storage Tank. The current water production configuration consists of pumping water from Well #2 into a 35 year old, 60,000 gallon water storage tank located inside of the Well #2 building. The City has indicated that it would like to insulate and refurbish this tank to extend its operating life. HDL will provide a plan sheet and specification for cleaning, surface preparation and recoating of steel surfaces, and replacement of deteriorated parts. Because the tank is also an integral part to the water supply and distribution system for the City, we will design a temporary water system to ensure that there is no disruption to the City's water service. Because there are no inspection reports for the water tank, we cannot be sure what level of involvement will be required for all the tank repairs. For this reason, we anticipate that most of the work under this task will be performed during the construction phase of this project, after the tank has been drained and inspected. Water Treatment Process Design. HDR will provide water treatment process design that will consist of a coagulation /filtration system to produce finished water with color below 20 PCU. The proposed process design will include: Dosing the raw water with PACL to bind the dissolved organic molecules to larger coagulant particles. The PACL will be delivered and metered out of totes. Filtering out the organic /coagulant floc with three horizontal pressure filter vessels filled with conventional silica sand. A new on -site chlorine generation system will be used to disinfect the filtered water prior to discharging into the refurbished reservoir. The filters will be self- backwashing so the treated output of the other filters will be diverted to clean each filter individually. No dedicated backwash pumps will be provided. The backwashed waste will be discharged to the new above- ground holding tank to be stored and settled. The settled sludge will be discharged to the sewer while the clearer supernatant will be recycled to the WTP for treatment. The filtered, chlorinated water will be discharged to the existing drinking water reservoir on the site. The existing high service pumps that pressurize the water distribution system will be reused. A polymer feed system will be provided. The primary purpose of the system is to introduce polymer into the backwash waste to improve coagulant sludge separation and sedimentation in the holding tank. A secondary purpose of using polymer is to improve the coagulation process, which could result in either reduced coagulant use, improved color removal, or reduced generated backwash wastes. Variable Frequency Drives (VFD} will be installed on the existing Well #2 pump and the existing high service water distribution pumps. Electrical and Building Mechanical Design Services. The electrical design will include new electrical services to the WTP building with associated coordination with Homer Electric Association (HEAL. It will consist of all power distribution including lighting, instrumentation, controls and SCADA yttrrv:u +c -30- RE: Fee Proposal for Kenai WTP August 24, 2010 Page 7 of 7 systems. Stand -by power generation will consist of an insulated, weather proof, diesel- powered skid- mounted generator unit (sound attenuating and arctic rated) with an integral fuel tank. The standby power generator will be provided adjacent to the new WTP building on a concrete slab in a separate secured fenced area, Mechanical design will include water filtration equipment, process water piping, building plumbing, drainage, heating and ventilation requirements. It will also include sizing natural gas piping for the building heating, standby power generator and coordination with the local gas utility for gas services to the site. Electrical and building mechanical design will be provided by HDR Alaska, Inc. Instrumentation, Controls and Finished Water Treatment. Design will include supervisory controls that tie into the City's existing SCADA system, metering, pressure regulation, and backflow prevention into the finished water. Controls in the filtration building will operate the pressure pumps, motor operated valves, solenoid valves and other components as necessary to automate the various filtration and backwash sequences. SCADA systems for the water treatment process will be compatible with the City of Kenai's existing monitoring system. We will update the Well tt2 control system to incorporate VFD's on the well and distribution system pumps. Instrumentation, controls and finished water treatment design will be provided by HDR. Construction Cost Estimate, We will update our construction cost estimate based on 65% plans and specifications. Design Review Meeting. We will meet with the City in Kenai after the City has reviewed the submittal. The purpose of the meeting will be to discuss City comments and how the design team will incorporate the comments into the subsequent design stage. Task 6 Construction Documents (100 After comments are received from the City on the 65% design development submittal we will incorporate them into the design and continue to refine the construction documents up to a 95% design stage. The City will review the 95% documents and upon approval the documents will be finalized. We will submit to ADEC for plan review and approval to construct at the 100% complete design level for the system. Comments from ADEC will be incorporated into the final bid documents. Deliverables. The deliverables for this task will be bid -ready plans, stamped and signed by a professional engineer registered in the State of Alaska, a bid -ready Project Manual including bidding and general contract requirements, technical specifications in EJCDC format, and an engineer's construction cost estimate. We will provide deliverables in hardcopy and on CD in PDF format ready for uploading to the City website for web -based bid document distribution. We anticipate approximately 61 sheets consisting of 26 civil /structural sheets and 35 process, mechanical and electrical sheets. The following is a breakdown: -31- uac It RE: Fee Proposal for Kenai tAITP August 24, 2010 Page8of8 1 Cover Sheet/ Drawing index 1 Notes, Abbreviations and Legend 1 Project Layout Plan 1 Survey Control Diagram 1 Site Plan 1 Grading Plan 2 Site Sections 5 Civil Details 2 Plan and Profile Sewer 2 Backwash Tank Plan and Section 2 Backwash Tank Details 6 Treatment Building Structural and Foundation 1 Existing Water Tank Refurbishment Details 1 Abbreviations /General Legend 1 Mechanical Legend 1 Electric& Legend 1 instrumentation Legend 1 General Floorplan 1 Process Plan 3 Process Sections 3 Process Details 1 HVAC Plan 1 Boiler Room Plan 2 HVAC Sections and Schedules 2 HVAC Details 1 Electric& Site Plan 1 Electrical Power and Instrumentation 1 Electrical Lighting Plan 1 Electrical Details 2 Stand -by Generator Plan and Details 1 Control Block Diagram 1 Control Diagram 1 One -Line Diagram 1 Well Pump and Filters P &ID 1 On-Site Chlorine Generation P &ID 1 Chemical Feed P &ID 1 Sample P &ID 1 Backwash Waste and Recycle P &ID 1 Reservoir P &ID 2 SCADA details -32- RE: Fee Proposal for Kenai WTP August 24, 2010 Page 9 of 9 26 Civil Structural 35 Process Mechanical Electrical 61 Total Task 7 Bidding Assistance Bidding Phase Services. HDL will assist the City in bidding the project and getting the successful bidder under contract for the work. On behalf of the City, we will prepare the invitation to bid, public notices, respond to bidders' questions, conduct a pre -bid conference, issue written addendums, tabulate bids and check proposals for completeness, review bonding and insurance submittals, and provide a written recommendation for award to the City based on the lowest responsive bid. ASSUMPTIONS The following basic assumptions were used to prepare this estimate: 1. We will reuse the existing City Well 2 well house and reservoir building without modification in their current condition. We have not included time in our scope for renovations should they be required. 2. Well 2 has sufficient excess pressure and flow to push water through the new water plant without adding booster pumps. 3. The existing water distribution system pressure pumps at Well 2 are satisfactory and will be reused. 4. The new WTP building will be physically separate from the existing Well 2 well house and Reservoir Building. 5. The improvements will be designed in one package and bid one time. 6. The City will extend a sewer main to the north side of the Kenai Spur Highway right -of- way in the vicinity of the new WTP. We will design backwash piping to the existing sewer main. We don't anticipate working in the DOT right -of -way. 7. Landscaping is not anticipated beyond topsoil and seeding. 8. Design and construction of natural gas, power, telephone and cable television utility relocations or extensions will be provided by the utility companies. We will provide coordination of this work on behalf of the City. 9. Traffic Control Plans are not included 10. Preparation of a Storm Water Pollution Prevention Plan is not included in our scope of services, but will be required of the construction contractor. 11. HEA fees for electrical service(s) are not included. -33- lFntE1NBU DIL' EY S LIII' ELL 1n ,wsr n5 4iarvnu1 p RE: Fee Proposal for Kenai WTP August 24, 2010 Page 10 of 10 12, ADEC fees for design reviews and permits are included. 13. Advertising costs for bids or public notices are not included. 14. Construction Administration and Inspection (CA) is not included in this fee estimate. The CA scope, level of effort, and fee will be determined when the design is complete and can be added as a contract amendment. 15, Post Construction Services, including preparation of an Operation and Maintenance (O &M) Manual and project Record Drawings, are not included in this fee estimate. The Post Construction Services scope, level of effort, and fee will be determined when the design is complete and can be added as a contract amendment. Upon notice to proceed we will commence field work as soon as possible. Based on an NTP of September 1, 2010, we would anticipate completing design in 6 months and will have bid ready documents by March 1, 2011, Construction would occur in 2011 and would be completed by December 2011, Our anticipated delivery date could be affected by an extended or delayed. DEC plan review period or by significant revisions requested by the City or other review agencies. We propose to provide the aforementioned services on a tirne and expenses basis at our published hourly labor rates and 5% mark -up an subcontracts and reimbursable expenses for a design cost not to exceed $452 660 which is 7% to 10% of the $4.5 to $6.0 million estimated construction cost. Our costs are detailed on the fee estimate dated August 10, 2010. We appreciate the opportunity to provide this proposal and look forward to assisting the City with these important projects. If you have any questions, you can contact me at 564 -2120. Sincerely, HAITENB RO Dr LEY LiNNEL L, LLC Scott Hattenburg, PE /Princl} al Engineer Attachments: SCHEDULE FEE Fee Estimate (4 pages) Conceptual Site Plan Conceptual Floor Plan '2. HDR Fee Proposal dated Augustll42010 (1 page) Nelson Engineering Fee Proposal dated August 23, 2010 (1 page) H! proposals \80 -014 Kenai WTP and Aquifer Study (COO \Kenai Water Treatment Plant \Final Proposal \Kenai Water Treatment Proposal 23 Aug 10.doc -34- i,V r!. ^a EtIL,EY n ITEM 1.0 Geotechnical Investigation Fieldwork Project Engineer Project Geologist Per Diem Vehicle (2 Trips) Mob /Demob Drill Rig Drilling 6 borings (15 to 30 ft ea) 1" PVC 2.0 Surveying ACTIVITY Management Project Manager Laboratory Project Engineer Lab Technician Topographic Survey Survey Manager Survey Technician 2 -Man Survey Crew Per Diem (Crew) Mob /Demob Base Map Survey Control Survey Manager Survey Technician Survey Technician Project: Engineer: Scope: Date Prepared: 3.0 Environmental Review and Permits ADEC Approval to Construct HDR (See Fee Attached) Project Engineer ADEC Plan Review Fee ADEC Waivers QTY RATE Engineering Studies and Report Project Manager 8 hrs 165 Project Engineer 40 hrs 105 Project Geologist 12 hrs 85 AutoCAD Drafting 8 hrs 95 8 hrs 165 4 hrs 105 40 hrs 85 3 days 250 600 miles 1 1 ea 350 85ft 27 85ft @1 Kenai Wafer System Improvements Hattenburg Dilley Linnell Geotech, Survey, Design and Bidding Assistance 8124/10 4 hrs 105 30 hrs 85 4 hrs 130 8 hrs 130 24 hrs 185 2 days 425 10 hrs 185 4 hrs 130 24 hrs 75 16 hrs 85 1 fee 8,685 80 hrs 105 1 fee 5,600 3 ea 600 ITEM LABOR REIMS SUB TOTAL TOTAL 1,320 420 3,400 420 2,550 1,320 4,200 1,020 760 520 1,040 4,440 1,850 520 1,800 1,360 8,400 750 300 850 5,600 1,800 350 2,295 85 1,320 7,600 2,970 7,300 8,700 3,680 24,485 8,685 $19,190 $12,380 47,485 24 August 2010 Page 1 of 4 Kenai WTP -35- ITEM ACTIVITY QTY RATE Coastal Zone Determination Environmental Manager Environmental Specialist Designer Drafter ADEC APDES Industrial Discharge Permit Environmental Manager 8 hrs Environmental Specialist Project Engineer Designer Drafter State Fire Marshall (Deferred to City of Kenai) Not Required City Plan Review Fee Waived 4.0 Preliminary Design (35 ADEC Coordination Principal Project Engineer HDR (See Fee Attached) Preliminary Analysis. PER, and Conceptual Drawings Principal Project Engineer Designer Drafter HDR (See Fee Attached) 8 hrs 16 hrs 16 hrs 48 hrs 120 hrs 16 hrs Preliminary Quantities and Cost Estimate Principal Project Engineer HDR (See Fee Attached) 5.0 Design Development (65 12 hrs 165 B0 hrs 105 1 fee 543 20 hrs 165 120 hrs 105 60 hrs 95 1 fee 9,429 12 hrs 24 hrs 1 fee 65% Plan Sheets (26 Civil/Structural Principal 32 Project Engineer Designer Drafter Clerical Dave Thompson 80 200 40 40 65% Specifications Bidding Documents Principal Project Engineer Clerical 24 August 2010 120 85 95 120 85 105 95 165 105 543 Sheets) hrs 165 hrs 105 hrs 95 hrs 60 hrs 110 20 hrs 165 60 hrs 105 20 hrs 60 -36- LABOR REIMS SUB TOTAL TOTAL 960 1,360 1,520 960 4,080 12,600 1,520 1,980 8,400 3,300 12,600 5,700 1,980 2,520 5,280 8,400 19,000 2,400 3,300 6,300 1,200 543 9,429 543 4,400 0 0 3,840 19,160 10,923 31,029 5,043 39,480 10,800 $46,995 $130,600 Page 2 of 4 Kenai WTP ITEM ACTIVITY QTY RATE LABOR REIMS SUB TOTAL TOTAL 65% Cost Estimate Principal 8 hrs 165 1,320 Project Engineer 20 hrs 105 2,100 Designer Drafter 20 hrs 95 1,900 65% Design Development (HDR) HDR (See Fee Attached) 1 fee 75,000 100% Plan Sheets (26 Civil /Structural Sheets) Principal 40 hrs 165 6,600 Project Engineer 80 hrs 105 8400 Dave Thompson Designer Drafter Nelson Engineering 80 hrs 110 180 hrs 95 1 fee 4,500 17,100 100% Design Development (HDR) HDR 100% Plans, Specs 1 fee 81,011 81,011 HDR Mtgs and Mgmt 1 fee 12,077 12,077 100% Specifications Bidding Documents Principal 32 hrs 165 5,280 Project Engineer 80 hrs 105 8400 Dave Thompson 32 hrs 110 Clerical 20 hrs 60 1,200 Cost Estimate Principal 20 hrs 165 3,300 Project Engineer 40 hrs 105 4,200 Designer Drafter 40 hrs 95 3,800 Documents Clerical 4 hrs 60 240 Reproduction 18 sets 50 Pre -Bid Conference Principal 8 hrs 165 1,320 Project Engineer 12 hrs 105 1,260 Clerical 4 hrs 65 260 Airfare 2 ea 175 HDR (See Fee Attached) 1 fee 1,164 -37- 900 350 5,320 75,000 75,000 6.0 Construction Documents (100 $171,668 8,800 4,500 3,520 45,400 93,088 18,400 Quality Assurance 3,480 Professional Engineer 24 hrs 145 3,460 7.0 Bidding Services $13,194 1,164 11,300 1,140 4,354 24 August 2010 Page 3 of 4 Kenai WTP REM ACTIVITY QTY RATE LABOR REHAB SUB TOTAL TOTAL Assistance During Bidding Principal Geotechnical Engineer Project Engineer Designer Drafter Clerical Bid Review Tabulation and Principal Project Engineer Clerical 6 hrs 165 6 hrs 165 24 hrs 105 16 hrs 85 4 hrs 60 Recommendation for Award 4 hrs 160 8 hrs 105 2 hrs 60 -38- 990 990 2,520 1,360 240 640 840 120 Subtotal 218,560 10,550 212,402 Markup 5% $528 $10,620 TOTAL $218,560 $11,078 $223,022 6,100 1,600 5441,512 $11,148 $452,660 24 August 2010 Page 4 of 4 Kenai WTP VA Z W W 0 et LI- -I 2 Z 4 e w w U.1 c: CC I— 0 wI— I- 7:c 0 w W U. O 13- 0 CC 0 -39- -40- ppoioel'uwytl' MEM INN :I HIENIMENNTI I Min '1110110101 1111 VIM OMNI OM inn i NEIMINMENNI 10101110 I MEI IMO 111 MN 1111111111 MIMI I 11111 simmun mmll mom I in I zip moo EMMEN MIME IEMIMINIMENOMEMIN -41- NELSON ENGINEERING August 23, 2010 Dear Mr. Bowman, CONSULTING ENGINEERS 155 BIDARKA STREET (907) 283-3583 Chris Bowman, HDL 3335 Arctic Boulevard, Suite 100 Anchorage, AK 99503 Re: Kenai Well House No.2 Pressure Sewer Proposal STRUCTURAL CIVIL ENVIRONMENTAL KENAI, ALASKA 99611 FAX (907) 283 -4514 We would be pleased to provide engineering services for the pressure sewer from the Kenai Spur to Well House No.2. Scope: We are currently designing a pressure sewer along Beaver Loop Road from the Kenai Spur to Togiak Street for the City of Kenai. Our plans include extending the pressure sewer under the Kenai Spur. HDL is designing water treatment plant modifications to Well House 2. The modifications will require effluent discharge to the City of Kenai Sewer system. We will provide the design of a pressure sewer line to extend from the Kenai Spur, to within 5' of the new treatment plant facility at Well House 2. We will coordinate with HDL regarding the termination point at the water treatment facility. HDL will provide us with topographic survey data in AutoCAD .dwg format. We will provide specifications, plan and profile drawings and appropriate details to be included in HDL's contract documents for the Water treatment plant upgrades. Fee: I propose to provide the engineering design services for a lump sum fee of $4500. We will bill you monthly as we proceed. Schedule: An exact schedule has not be established but we will coordinate with HDL's schedule and can complete the design within two weeks of receiving Notice to Proceed and the topo data. Sincerely, Wm. 3. Nelson, PE -42- CITY OF KENAI RESOLUTION NO. 2010-51 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A CONTRACT TO WINCE CORTHELL BRYSON CONSULTING ENGINEERS FOR ENGINEERING DESIGN FOR FLOAT PLANE BASIN DEVELOPMENT PROJECT, PHASE 1 FOR THE TOTAL AMOUNT OF 5146,000.00. WHEREAS, the contract will provide professional design and engineering services through construction documents and bidding phase for construction of Kenai Float Plane Basin Development Project, Phase 1; and, WHEREAS, the project will consist of design to realign the Fourth Avenue Access Road into the Float Plane Basin parking area and the City water tank and other improvements; and, WHEREAS, Wince- Corthell -Bryson Consulting Engineers previously provided engineering and construction inspection services for the Kenai Municipal Airport Taxiways F,G, H Lighting, Grading Drainage Project; and, WHEREAS, the recommendation from City Administration is to award the contract to Wince Corthell -Bryson Consulting Engineers for the total cost of $146,000.00; and, WHEREAS, award to Wince Corthell-Bryson Consulting Engineers would be in the best interest of the City; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the contract for Kenai Float Plane Basin Development Project for the total amount of $146,000.00. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of September, 2010. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Approved by Finance: 7 -4w '4 Contingent upon approval of Ordinance 2510 -2010 -43- the ci of KENAI, ALASKA "Villaye with a Past, City with a Future" Rick, 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535, Ext. 236 1 FAX: (907) 283 -3014 TO: Rick Koch, City Manager FROM: Wayne Ogle, Public Works Directo DATE: August 25, 2010 MEMO A NDUM SUBJECT: MEMO IN SUPPORT OF A RESOLUTION AWARDING A CONTRACT FOR DESIGN SERVICES; PHASE 1, FLOAT PLANE BASIN DEVELOPMENT PROJECT This resolution awards funds to Wince- Corthell -Bryson Consulting Engineers for the development of construction documents and bidding phase for the Kenai Municipal Airport Float Plane Basin Development Project, Phase 1. The total amount for this engineering is not to exceed $146,000. The project will consist of realigning the 4 Avenue Access Road into the Float Plane Basin parking area and the City water tank. There will also be construction of approximately 1,200 linear feet of paved taxiway "S" from runway 1L to the realigned access road and construction of approximately 1,600 linear feet of paved taxiway "T". There will also be grading to improve drainage of approximately 350,000 square feet of lease lot area, installing security fencing and gates, painting taxiway markings, installing taxiway lights and signage and providing for the installation of natural gas and power utilities. Provisions for the future installation of water, sewer and telecommunications utilities are also to be provided. Bid documents are expected to ready by April 1, 2011 with construction during summer 2011. Ordinance No. 2510 -2010 increased the estimated revenues and appropriations in the Airport Improvement Capital Project Fund to complete design work for Phase 1 of the Kenai Municipal Airport Float Plane Basin Development Project. There are sufficient funds for this project. 1992 uc .ryo� KEBAASKA Suggested by: Parks &Recreation Commission CITY OF KENAI RESOLUTION NO. 2010 -52 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, NAMING A PORTION OF LOT A, 1 -A BARRON PARK SUBDIVISION FIRE ADDITION, "DAUBENSPECK FAMILY PARK." WHEREAS, the City of Kenai accepted a donation of lands and oil and gas rights in adjacent lands from Harold A. Daubenspeck and Rita Daubenspeck through Resolution No. 80 -178; and, WHEREAS, the City further resolved to honor the request of Mr. and Mrs. Daubenspeck that the oil, gas, and mineral rights, including sales proceeds, royalties, revenue, or rental income from Tracts C, D, and E of the Daubenspeck Property be dedicated to athletic programs sponsored by the City of Kenai; and, WHEREAS, property encompassing a small lake (material source) along Marathon Road was recently returned to the City's care and custody; and, WHEREAS, many residents of the City of Kenai use the lake and surrounding area for recreational purposes, such as swimming, kayak training and retrieval training for dogs; and, WHEREAS, Ordinance No. 2508 -2010 increased estimated revenues and appropriations by $150,000.00 in the Municipal Park Improvements Capital Project Fund for development of a park on a portion of Lot A, 1 -A Barron Park Subdivision Fire Addition; and, WHEREAS, the Landscape Architect for the State of Alaska, Division of Parks and Recreation, has generated a conceptual park design which will accommodate both summer and winter recreational use; and, WHEREAS, the Parks and Recreation Commission at its meeting of August 5, 2010, recommended the Kenai City Council name the referenced park property "Daubenspeck Family Park" in honor of the Daubenspeck family who, through their donation of the Daubenspeck property, has contributed in excess of two million dollars to the City to support athletic programs NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the above referenced property shall be named "Daubenspeck Family Park." -45- PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of September, 2010. ATTEST: Carol L. Freas, City Clerk -46- PAT PORTER, MAYOR than eight, and requested the commission consider addressing the need. Veh added, she believed the Recreation Center's Tot Time program hours should be expanded;' ITEWLS: MOTION: ITEM 6 6 a. OLD BUSINESS T�isoaassa`zsr Park Development Update Marathon Read Parks and Recreation Director Prates gave a brief update an the project, noting the Rotary Club had performed a number of work parties, the parking lot and two shelter areas had been located, and topsoil had been delivered. A brief discussion of naming the park occurred_ Commissioner Beeson MOVED to recommend to Council to name the park Daubenspeck Family Park in honor of the Daubenspeck family who had, contributed in excess of $2 million to the City. Commissioner Hull SECONDED the motion. There ere no objections SO ORDERED. NEW BUSINESS n Dip Net Fishery 2010 Sand.ahi noted therGammission wou:ldhave an opportunity to review the Dip Net Report in October, 2010, but he was requesting comments from Commissioners based upori observations. Commissioner comments inchided: Did not witness much enforcement from wildlife protection officers. Witnessed commercial drift boats occasionally getting too close to dip netters. Liked the fact locals were hired to assist during the dip net fishery. Noted safety issues with boaters below the bridge. Noted they had received fewer complaints this year. 6 -b. Discussion Cemetery Marker Frates noted he had been presented with an idea by Tim Wisniewsld of Peninsula Memorial Chapel, to establish to allow each cemetery' plot purchased to be properly marked and suggested a deposit.would be required to cover the expense of a granite' marker, If a headstone or similar marker would not be installed within a specific timeframe, the monies would be used to engrave a te aplaque. with name and -date of the deceased, Commissioner comments included: Cost could be included to the cost of the plot. The expense of the marker should be at cost. PARKS LS RECREATION COMMISSION MEETING AUGUST 5, 2010 PAGE 2 -111- -47- ITEM A: CALL TO ORDER AGENDA KENAI CITY COUNCIL REGULAR MEETING AUGUST 18, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: /www. ci. ken ai. 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 no nal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (Public comment limited to 10 minutes per speaker) ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limited to 3 minutes per speaker) ITEM D: Tom Sloan, Kenai Peninsula Economic Development District Business Gap Analysis Survey 2. Trent Dodson, Director of Public Outreach for Cook Inlet, Cook Inlet Regional Citizens Advisory Council Update on Cook Inlet Regional Citizens Advisory Council Activities. 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. 2499 -2010 Amending KMC Chapter 12.10, Nuisances in General, to Include in the Definition of a Public Nuisance Unsightly Premises and Also Certain Structures Destroyed or Partially Destroyed by Fire or by Other Means. (Clerk's Note: At its August 4, 2010 meeting, Council postponed action on Ordinance No. 2499 -2010 to August 18, 2010. The motion to adopt is active and on the floor.) -48- 2. Ordinance No. 2500 -2010 Increasing Estimated Revenues and Appropriations by $11,869.00 in the Airport Fund and by $474,760.00 in the Runway Improvement Capital Project Fund for Additional Changes of the Airport Apron Pavement Rehabilitation Project. 3 Ordinance No. 2501 -2010 increasing Estimated Revenues and Appropriations in the Airport and Airport Improvement Capital Project Fund for Preparation of an Airport Master Plan. 4. Ordinance No 2502 -2010 Increasing Estimated Revenues and Appropriations by $6,300.00 in the General Fund for a Library Grant. 5. Ordinance No. 2503 -2010 Increasing Estimated Revenues and Appropriations by $1,000.00 in the General Fund for Library Travel and Transportation. 6. Ordinance No. 2504 -2010 Increasing Estimated Revenues and Appropriations by $281.80 in the PRISM Special Revenue Fund. 7. Ordinance No. 2505 -2010 Increasing Estimated Revenues and Appropriations by $7,600.00 in the Senior Citizens Fund for Funding Received From Kenai Senior Connection, Inc. for a Part-Time Data Entry Position at the Senior Center. 8. Ordinance No. 2506 -2010 Amending the Official Kenai Zoning Map by Rezoning Lot 3A of Karen Subdivision, Moore Addition From General Commercial (CG) to Limited Commercial (LC). 9. Ordinance No. 2507 -2010 Amending KMC Section 14.20.050 to Require that Destroyed or Partially Destroyed Non Conforming Structures Be Removed Unless the Partial Destruction is Fifty Percent (50 or Less of the Replacement Cost in Which Event the Owner Must Obtain a Building Permit Within Twelve (12) Months From the Date of the Damage or Destruction or Remove the Remaining Structure. 10. Ordinance No. 2508 -2010 Increasing Estimated Revenues and Appropriations by $150,000.00 in the Municipal Park Improvements Capital Project Fund. 11. Resolution 2010 -48 Awarding a Contract to Kenai Welding for the Project Entitled Kenai North Dunes Elevated Light Penetrating Walkway /Ramps Supply Related Appurtenances -2010 for the Total Amount of 934,500.00. 12. Resolution No. 201049 Honoring and Remembering Senator Ted Stevens. ITEM E: MINUTES 1. *Regular Meeting of August 4, 2010. -49- ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. Ratification of Bills 2. Approval of Purchase Orders Exceeding $15,000 *Ordinance No. 2509 -2010 Amending the Official Kenai Zoning Map by Rezoning Southeast 1/4 Southeast 1/4 Section 4, Township 5 North, Range 11 West, Seward Meridian (SE 1 /4 SE V.1 Sec. 4, TSN, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (IH). 4. *Ordinance No. 2510 -2010 Increasing Estimated Revenues and Appropriations in the Airport Improvement Capital Project Fund for Phase 1 of the Float Plane Basin Development. 5. *Ordinance No. 2511 -2010 Increasing Estimated Revenues and Appropriations in the Congregate Housing Improvements Capital Project Fund for Replacement of the Facility's Siding 6. Discussion Schedule Council Work Session /Town Hall Meeting and Collaborative Leadership Training Review. (Clerk's Note: This topic was originally calendared for discussion at the May 19, 2010 Council Meeting, the item was then postponed to the June 2, 2010 Council Meeting, and then subsequently deferred to the August 18, 2010 Council Meeting.) 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 I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager -50- EXECUTIVE SESSION None scheduled. ITEM L: 1. Citizen Comments (Public comment limited to 5 minutes per speaker) 2. Council Member Comments ITEM M: ADJOURNMENT PENDING LEGISLATION (This item fists legisl ation which will be addressed at a later date as noted.) Ordinance No. 2497 -2010 Amending KMC Chapter 1.10 Entitled "The Council," in Its Entirety and Specifically Addressing the Procedures for Special meetings of the City Council and Making Technical Corrections. (At its July 21, 2010 meeting, the City Council substituted Ordinance No. 2497 -2010 and subsequently postponed it to the September 1, 2010 Council Meeting.) -51- Mike Boyle Pat Porter, Mayor Hal Smalley, Vice Mayor (Telephonic) Joe Moore i Barry Eldridge Ryan Marquis Robert Molloy 1 ITEM A: CALL TO ORDER A -2. The City Clerk took roll. Present were: ADD TO: ADD TO: MOTION: VOTE: ICENAI CITY COUNCIL REGULAR MEETING AUGUST 18, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: /www.ci.kenai.ak.u MAYOR PAT PORTER, PRESIDING 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. ROLL CALL A quorum was present. Also present: Student Representative Hannah Coffman A -3. AGENDA APPROVAL The following changes were requested: Item D -1 and D -9, Ordinance No. 2499 -2010 and Ordinance No. 2507 -2010 8/16/2010 comments submitted by Susan Smalley Item D -3, Ordinance No. 2501 -2010 8/17/2010 T. Eubank memorandum with amendment request, explanation, and suggested wording. Council Member Moore MOVED for approval of the agenda with the requested changes and requested UNANIMOUS CONSENT. Council Member Marquis SECONDED the motion. There were no objections. SO ORDERED. -52- KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 2 A -4. CONSENT AGENDA MOTION: Council Member Eldridge MOVED to approve the consent agenda as presented and requested UNANIMOUS CONSENT. Council Member Marquis SECONDED the motion. VOTE: There were no objections. SO ORDERED. ITEM B: BREAK TAKEN: 7:30 P.M. BACK TO ORDER: 7:38 P.M. ITEM D• SCHEDULED PUBLIC COMMENTS (Public comm limited to 10 minutes per speaker) -53- B -1. Tom Sloan, Kenai Peninsula Economic Development District Business Gap Analysis Survey Tom Sloan, 14896 Kenai Spur Highway, Kenai Reviewed findings of the Business Gap Analysis Survey, including economic and employment expectations, barriers to growth, business improvement, economic development, etc. He noted, this survey would be used as a baseline and a second survey was planned for next year. B -2. Trent Dodson, Director of Public Outreach for Cook Inlet, Cook Inlet Regional Citizens Advisory Council Update on Cook Inlet Regional Citizens Advisory Council Activities. Dodson presented an overview of the organization; its funding; triennial certifications, membership and the geographic areas represented (Anchorage to Kodiak Island Borough). ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limited to 3 minutes per speaker) Natalia Levitt, P.O. Box 8617, Nikiski Identified herself as the owner of an apartment building at the corner of Bluff Street and Peninsula Avenue. Levitt spoke in support of the ordinance related to unsightly premises. 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 rnore than 30 minutes combined on their own and on others' behalf.) Boyle 1 Yes Porter Yes Smalley Yes 1 Moore Yes Eldridge Yes 'Marquis Yes I Molloy J Yes i KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 3 D -1. Ordinance No. 2499 -2010 Amending KMC Chapter 12.10, Nuisances in General, to Include in the Definition of a Public Nuisance Unsightly Premises and Also Certain Structures Destroyed or Partially Destroyed by Fire or by Other Means. (Clerk's Note: At its August 4, 2010 meeting, Council postponed artion on Ordinance No. 2499 -2010 to August 18, 2010. The motion to adopt is active and on the floor.) The floor was opened to public hearing. There being no one wishing to speak, the public hearing was closed. Council comments included: Expected the Planning 86 Zoning Commission to have made changes, postponed it, or voted it down; was not ready to support the ordinance as felt it needed work, i.e. the definition of public nuisance and unsightly premises; and, was supportive of the section about structures partially or destroyed by fires. Council gave the Commission a tight deadline; was concerned there were different Code sections and different processes within the sections, i.e. different processes to appeal; suggested a Council work session to discuss possible amendments, etc.; and, if the ordinance was referred back to the Commission, Council shoul.d provide suggested amendments or a joint work session. Was surprised the Commission did not make any changes to the ordinance; was uncomfortable with the word "unsightly" as it was broad and subjective; and, appreciated the ideas of the ordinance but felt it too broad and ambiguous. Had concerns with subparagraph "r" and subparagraph "q did not think the ordinance suited the Alaska mentality; felt the ordinance was broad and subjective; and, felt the ordinance needed to be pared down, When initially discussed, the ordinance was to be about managing burned out buildings and suggested removal of subparagraph "r," MOTION TO AMEND: Council Member Marquis MOVED to amend by removing Section 2, subparagraph "r" and Council Member Molloy SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Coffman Yes MOTION PASSED UNANIMOUSLY. -54- Boyle Yes Porter No Smalley Yes Moore No 1 Eldridge No Marquis No Molloy Yes Boyle Yes I Porter Yes Smalley Yes Moore Yes 1 Eldridge Yes Marquis 1 Yes i Molloy Yes PAGE 4 Discussion continued with comments including: Concern the process was being piecemealed because there were different processes within Chapters 12 and 14 of the Code. City Attorney Stearns noted there were different procedures and reviewed both. Belief it would be worthy of a work session to review both processes more thoroughly and concern there could be unintended consequences because of the differences. Believe there were conflicts between the processes and believed the definitions included in the definitions (noting subparagraph i), needed to be addressed. Supportive of the ordinance as amended, but was not opposed to receiving a legal opinion or holding a work session. Was supportive of the ordinance as amended. Objection to subparagraph "q" and the use of the word "unsightly? MOTION TO AMEND: Council Member Eldridge MOVED to amend by deleting "unsightly," in Section 2, subparagraph "q," second line. Council Member Marquis SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Coffman: Yes MOTION PASSED UNANIMOUSLY. MOTION TO POSTPONE: Council Member Molloy MOVED to postpone the ordinance as amended for an additional public hearing at the first meeting in September and Council Member Boyle SECONDED the motion. VOTE: *Student Representative Coffman: No MOTION FAILED. -55- Boyle Yes Porter j Yes Smalley I Yes Moore Yes Eldridge i Yes Marquis 1Yes Molloy Yes I Boyle No Porter Yes Smalley No !Moore Yes Eldridge Yes Marquis 1Y s Molloy No KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 5 VOTE ON MAIN AMENDED MOTION: *Student Representative Coffman: Yes MOTION PASSED. D -2. Ordinance No. 2500 -2010 Increasing Estimated Revenues and Appropriations by $11,869.00 in the Airport Fund and by $474,760.00 in the Runway Improvement Capital Project Fund for Additional Changes of the Airport Apron Pavement Rehabilitation Project. MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2500 -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: Yes MOTION PASSED UNANIMOUSLY. D -3. MOTION: Ordinance No. 2501 -2010 Increasing Estimated Revenues and Appropriations in the Airport and Airport Improvement Capital Project Fund for Preparation of an Airport Master Plan. Council Member Eldridge MOVED to adopt Ordinance No. 2501 -2010 and Council Member Marquis SECONDED the motion. The floor was opened to public hearing. There being no one wishing to speak, the public hearing was closed. It was noted, the consultant to be used had not yet been chosen. -56- Boyle Yes Porter 1 Yes Smalley I Yes Moore Yes Eldri i Yes Marquis j Yes Molloy Yes Boyle Yes Porter Eldridge Yes 1 Yes Smalley Marquis Yes Yes Moore Yes Molloy Yes Marquis Yes Molloy Yes Boyle Yes Porter Yes Smalley Yes Moore Yes Eldridge Yes Marquis Yes Molloy Yes KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 6 MOTION TO AMEND: Council Member Moore MOVED to amend Ordinance No. 2501 -2010 by replacing the amount $559,587 in the third 'Whereas' with $531,608 and to replace the amount $573,577 with $559,587. VOTE ON AMENDMENT: `Student Representative Coffman: Yes MOTION PASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: *Student Representative Coffman: Yes MOTION PASSED UNANIMOUSLY. D -4. Ordinance No. 2502 -2010 Increasing Estimated Revenues and Appropriations by 56,300.00 in the General Fund for a Library Grant. MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2502 -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: Yes -57- Boyle Yes Porter Yes Smalley Yes Moore Yes Eldridge Yes Marquis Yes Molloy Yes Molloy Yes Boyle Yes Porter Yes Smalley Yes Moore Yes Eldridge Yes Marquis Yes Molloy Yes KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 7 MOTION PASSED UNANIMOUSLY. D -5. Ordinance No. 2503 -2010 Increasing Estimated Revenues and Appropriations by $1,000.00 in the General Fund for Library Travel and Transportation. MOTION: Council Member Marquis MOVED for adoption of Ordinance No. 2503 -2010 and Council Member Molloy 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: Yes MOTION PASSED UNANIMOUSLY. D -6. Ordinance No. 2504-2010 Increasing Estimated Revenues and Appropriations by $281.80 in the PRISM Special Revenue Fund. MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2504 -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: Yes MOTION PASSED UNANIMOUSLY. -58- B oyle Yes Porter Yes Smalley Yes 'Moore Yes Eldridge Yes Marquis Yes Molloy Yes KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 8 D -7. Ordinance No. 2505 -2010 Increasing Estimated Revenues and Appropriations by $7,600.00 in the Senior Citizens Fund for Funding Received From Kenai Senior Connection, Inc. for a Part -Time Data Entry Position at the Senior Center. This item was heard prior to Item D -2, Ordinance No. 2500 -2010. MOTION: Council Member Boyle MOVED to enact Ordinance No. 2505 -2010 and Council Member Marquis SECONDED the motion. The floor was opened for public hearing. Being no on wishing to speak, the public hearing was closed. Council comments included: Support of the ordinance. e Thanks to the Senior Connection for its generosity. VOTE: *Student Representative Coffman: Yes MOTION PASSED UNANIMOUSLY. D -8. Ordinance No. 2506 -2010 Amending the Official Kenai Zoning Map by Rezoning Lot 3A of Karen Subdivision, Moore Addition From General Commercial (CG) to Limited Commercial (LC). MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2506 -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. Council comments included: Concern the rezoning of the property could be considered spot zoning. Marilyn Kebschull, City Planner Reviewed the zoning information, noting the designation of primary and secondary uses were defined in the Land Use Table, as well as the criteria of location. She added, the second use had to be clearly incidental. Council comments continued: -59- Boyle No Porter No Smalley 1 No r Moore No Eldridge No Marquis 1 No Molloy No 1 KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 9 Suggestion a legal opinion of whether the rezone would be considered spot zoning. Because of the complexity of the issue and the size of the lot, the issue would need to be further analyzed in order to prepare a legal opinion. Belief the City Attorney should have been involved in the determination of whether this rezone would be considered spot zoning. The Planning 8, Zoning Commission unanimously approved the rezone; the property had structures on it; some of the businesses across the street were residences; and, there may be other properties in that area that would be better defined as general commercial. Question of whether other people in the area showed any interest in the rezone to limited commercial. City Planner noted all were noticed, but no one commented or requested to be included in the rezone. MOTION TO POSTPONE: Council Member Marquis MOVED to postpone to the next Council meeting and Council Member Boyle SECONDED the motion. Comments continued: Question of whether the ordinance should be referred back to the Commission with a legal opinion included; there was no public opposition to the rezone; and, who would be the complainant if it was considered spot zoning. Kebschull noted it would be a six to eight -week process to refer it back to the Commission and then bring it forward to the Council for consideration, plus 30 days prior to the ordinance becoming effective, and it was not known if a sale was pending, however it was known the owner was preparing the property for sale. City Attorney Stearns noted she helped in preparing the ordinance; there was no substantive review; and, she was not asked about the legality of the issue. Would support the ordinance, but preferred having a legal opinion at the time of consideration. Would support the ordinance, but would like legal counsel involvement in the future. VOTE ON POSTPONEMENT: *Student Representative Coffman: No MOTION FAILED UNANIMOUSLY. -60- Boyle Yes Porter 1Y Smalley 1 Yes Moore Yes Eldridge 1 Yes Marquis 1 Yes Molloy Yes I 1 Bo le Yes Porter Yes 1 Smalley Yes Moore Yes Eldridge Yes I Marquis Yes Molloy I Yes KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 10 VOTE: *Student Representative Coffman: Yes MOTION PASSED UNANIMOUSLY. D -9. Ordinance No. 2507 -2010 Amending KMC Section 14.20.050 to Require that Destroyed or Partially Destroyed Non Conforming Structures Be Removed Unless the Partial Destruction is Fifty Percent (50 or Less of the Replacement Cost in Which Event the Owner Must Obtain a Building Permit Within Twelve (12) Months From the Date of the Damage or Destruction or Remove the Remaining Structure, MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2507 -2010 and Council Member Moore 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: Yes MOTION PASSED UNANIMOUSLY. City Attorney Stearns noted a typographical error on Page 2, Section 2 where reference to 12.20.050 should be 14.20.050. The error would be corrected when published. D 10. Ordinance No. 2508 -2010 Increasing Estimated Revenues and Appropriations by $150,000.00 in the Municipal Park Improvements Capital Project Fund. MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2508 -2010 and Council Member Marquis SECONDED the motion. -61- Boyle Y es Porter Yes Smalley Yes Moore Yes Eldridge Yes Marquis Yes Molloy Yes KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 11 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: Yes MOTION PASSED UNANIMOUSLY. D -11. MOTION: Resolution 2010 -48 Awarding a Contract to Kenai Welding for the Project Entitled Kenai North Dunes Elevated Light- Penetrating Walkway /Ramps Supply Related Appurtenances -2010 for the Total Amount of $34,500.00. Council Member Marquis MOVED for approval of Resolution No. 2010 -48 and requested UNANIMOUS CONSENT. 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: There were no objections. SO ORDERED. D -12. Resolution No. 2010 -49 Honoring and Remembering Senator Ted Stevens. MOTION: Council Member Marquis MOVED for approval of Resolution No, 2010 -49 and requested UNANIMOUS CONSENT. Council Member Eldridge SECONDED the motion. The floor was opened to public hearing. There being no one wishing to speak, the public hearing was closed. Mayor Porter noted she attended the funeral and it was a very nice tribute to Senator Stevens. VOTE: -62- KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 12 There were no objections. SO ORDERED. BREAK TAKEN: 8:45 P.M. BACK TO ORDER: 8:51 P.M. ITEM E: MINUTES E -1. *Regular Meeting of August 4, 2010 Approved by consent agenda. ITEM F: UNFINISHED BUSINESS None. ITEM G: NEW BUSINESS G -1. Ratification of Bills MOTION: Council Marquis MOVED to ratify the bills. Council Member Eldridge SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There were no objections. SO ORDERED. G -2. Approval of Purchase Orders Exceeding $15,000 MOTION: Council Member Marquis MOVED for approval of the purchase orders exceeding $15,000 and requested. UNANIMOUS CONSENT. Council Member Eldridge SECONDED the motion. VOTE: There were no objections. SO ORDERED. G -3. *Ordinance No. 2509 -2010 Amending the Official Kenai Zoning Map by Rezoning Southeast '/a Southeast 1 /4 Section 4, Township 5 North, Range 11 West, Seward Meridian (SE 1/4 SE 1 /4 Sec. 4, T5N, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (IH). Introduction approved by approval of the consent agenda. -63- KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 13 0-4. *Ordinance No. 2510 -2010 Increasing Estimated Revenues and Appropriations in the Airport Improvement Capital Project Fund for Phase 1 of the Float Plane Basin Development. Introduction approved by approval of the consent agenda. 0-5. *Ordinance No. 2511 -2010 Increasing Estimated Revenues and Appropriations in the Congregate Housing improvements Capital Project Fund for Replacement of the Facility's Siding. Introduction approved by approval of the consent agenda. G -6. Discussion Schedule Council Work Session /Town Hall Meeting and Collaborative Leadership Training Review. (Clerk's Note: This topic was originally calendared for discussion at the May 19, 2010 Council Meeting, the item was then postponed to the June 2, 20I0 Council Meeting, and then subsequently deferred to the August 18, 2010 Council Meeting.) It was noted, the initial reason for the work session was to discuss comments and issues discussed at the Town. Hall meeting as well as feedback received since the Town Hall meeting was held; some consensus items had already been acted upon; and, the issues of protecting residential neighborhoods and green spaces had not yet been discussed, however a presentation by representatives of one residential neighborhood was planned for an upcoming Planning Zoning Commission meeting. Consensus of Council was for Administration to address issues and provide that information to the people who attended the Town Hall meeting; to prepare a list of objectives and distribute them to all commissions /committees for review and discussion; and, to provide a report for distribution to the next Council to be seated in October. No work session was scheduled. ITEM H: COMMISSION /COMMITTEE REPORTS Council on Aging Council Member Boyle reported the August meeting had been cancelled. He added, he met with a representative of Congressman Young's office at the Senior Center and met with residents who discussed adding a garage to the facility as a potential project. H -2. Airport Commission Council Member Moore reviewed the August 12, 2010 meeting summary which was included in the packet and referred to the Airport Manager report also included in the packet. -64- KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 14 H -3. Harbor Commission Council Member Boyle reported a work session was held during the afternoon of August 9 where members toured the dock, however there was not a quorum available for the regular meeting scheduled for that evening. A brief discussion took place related to the ability for commission /committee members to requested excused absences. Porter stated she would meet with Administration to discuss amendments to the Code to simplify the process. It was also suggested Council discuss consolidation of some commissions again. H -4. Library Commission Council Member Marquis reported the next meeting was scheduled for September 7, 2010. H -5. Parks Recreation Commission Council Member Boyle reported on the meeting held on August 5, 2010 and noted the meeting summary was included in the packet. H -6. Planning Zoning Commission Council Member Molloy reviewed the minutes of the August 11, 2010 meeting which were included in the packet. H -7. Miscellaneous Commissions and Committees H -7a. Beautification Committee No meeting. H -7b. Alaska Municipal League Report Council Member Smalley stated he was in Kodiak attending the AML Summer Meeting and reported discussions were ongoing related to resolutions, policies and procedures. H -7c. Mini -Grant Steering Committee No report. H -7d. Kenai Convention Visitors Bureau No report. H -7e. Reports of KPB Assembly, Legislators and Councils Assembly Member Smalley reported on actions and discussions that took place at the August 17, 2010 Assembly meeting. ITEM I: REPORT OF THE MAYOR Mayor Porter noted the following items: Requested Council consideration to amend the policy related to the Student Representative voting order. Attended a recent Coast Guard Awards program attended the Harbor Commission's work session and toured the dock; and, attended Senator Stevens' funeral service. Made a presentation to children attending a Healthy Communities event. ITEM J: ADMINISTRATION REPORTS J-1. City Manager Acting City Manager Eubank reported the following: -65- KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 15 2010. City Manager Koch would be back in the office on Monday, August 23, The grant application for funding three firefighters was denied and an ordinance to appropriate funding from the General Fund for the positions would be introduced at the September 1 Council meeting. He met with a representative of Congressman Young's office and discussed the bluff restoration project and they toured the bluff area as well as the library expansion project. He attended the August 5 Cook Inlet Natural Gas Storage Facility informational meeting. J -2. Attorney Attorney Stearns reported she attended an American Bar Association meeting in San Francisco and her trip report would be provided to Council. J -3. City Clerk City Clerk Freas reported the following items: Absentee voting would be ongoing through August 24. The Clerk's Office would be receiving equipment, etc. from six precincts after closing of the polls and would be transmitting results for those precincts as well. The Board of Adjustment hearing was scheduled for August 23, 2010 and would begin at 6:00 p.m. August 18, 2010 was the 90th anniversary of the ratification of the 19th amendment to the U. S. Constitution which gave women the right to vote. ITEM K: ADDITIONAL PUBLIC COMMENT K -1. Citizen Comments (Public comment limited to 5 minutes per speaker) Bob Peters, Old Town, Kenai Reported additional bluff eroded during July and August due to the rain and wind. K -2. Council Member Comments Porter Noted dead trees in front of Lowe's and graffiti on East End Park sign. Moore Thanked Eubank for filling as Acting City Manager and thanked Porter for attending Senator Stevens' funeral service. Eldridge Suggested Representative Young be contacted for funding the bluff restoration project. Hoffman Reported school would start on August 24, 2010. Marquis Reported he had a nice vacation in Washington, DC and was glad to return to sunshine. Molloy Thanked Porter for attending Senator Stevens' funeral service. -66- KENAI CITY COUNCIL MEETING MINUTES AUGUST 18, 2010 PAGE 16 Boyle Referred to Information Item 3, a request for applications for grants to fund environmental demonstration projects which he felt was a potential funding opportunity to cover a portion of costs related to the budgeted wind energy study and requested Administration to apply for the grant. Was concerned with the decision made to put vinyl siding on the Vintage Pointe Facility. Smalley Reported the Assembly prepared language for a proposition for funding school roof repairs and a proposition related to the Borough changing to a managerial form of government. Both propositions would be included on the October ballot. Expressed condolences to the Stevens' family and other families of the crash victims A brief discussion took place related to applying for the environmental demonstration project grant. Comments included: Concern the submittal time was too short of a time to prepare a grant. Desire for Council to direct the City Manager to prepare the grant. Support for the request to direct the grant be submitted. Support for the request to direct the grant be submitted. Support for the request to direct the grant be submitted and to make it a priority. Objection to the request to direct the grant be submitted. Support for requesting the City Manager to prepare a grant, but understood the City Manager could have other grant applications in mind. The grant application was an opportunity and should be reviewed. If n.ot possible to prepare the grant, an explanation of why not should be given. Realized the deadline was soon, but felt it was an opportunity and suggested another employee could prepare the application for the City Manager in order to make the deadline. EXECUTIVE SESSION None scheduled. ITEM L: PENDING LEGISLATION (This item Iists legislation which will be addressed at a later date as noted.) Ordinance No. 2497 -2010 Amending KMC Chapter 1.10 Entitled "The Council," in Its Entirety and Specifically Addressing the Procedures for Special meetings of the City Council and Making Technical Corrections. (At its July 21, 2010 meeting, the City Council substituted Ordinance No. 2497 -2010 and subsequently postponed it to the September 1, 2010 Council Meeting.) ITEM M: ADJOURNMENT There being no further business to come before the Council, the meeting was adjourned at approximately 9:35 p.m. -67- 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 he recorded in the minutes. A student representative may not move or second items during a council meeting. -68- -69- z W 0 v 0 J 0 J U Z 0 v 0 W W Z 2 U r' Z O N O O 0 O O Sri LU W 0 CO W O EY 0 p1 3 -121- 1- 2 0 2 a a w 0 Z W Me cify of KENA ALASKA VUfaye with a Past, City with a Ritua 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 iiu, Telephone: (907) 283 -7535, Ext. 236 FAX: (907) 283 -3014 tI II MEMO 4 DU_ TO: Finance Department THRU: Rick Koch, City Manager FROM: Kevin Lyon, Capital Projects Manager DATE: August 30, 2010 SUBJECT: Kenai Community Library Expansion and Renovation 2010 Please increase PO 92868 to Blazy Construction, Inc by $495,219.00 for Change Order No. 2 for the Kenai Community Library Expansion and Renovation 2010 contract dated April 19, 2010. This increase will add the existing library re -roof to the project, including the soffit and fascia per Ordinance 2491 -2010 and Ordinance 2492 -2010. The previous memo dated August 24, 2010 identified the existing conditions that impacted the cost. Multiple quotes have now been received by the Contractor and fees for the scope of work are reasonable and consistent with the required scope. The proposed increase of this purchase order is presented as a lay down so the contractor can take advantage of remaining construction weather, and complete the tie in with the new construction on schedule. If delayed until the next council meeting of September 15 the re -roof portion of the project will postpone the tie in of the new construction or require duplicate effort to rework the interface area. The delay will have an estimated thirty thousand dollars or more impact on project funds. It also would expose the structure to additional water damage and provide for less than ideal conditions for roof installation. Materials are scheduled to be ordered immediately, with work on the re -roof beginning within in two weeks. Due to the condition of the soffit, roof and the connections to the new addition make this a priority and considering to the approaching weather conditions time is of the essence and it is in the best interest of the city to proceed as soon as possible. For Council Approval: September 1, 2010 1992 CHANGE ORDER NO. 2 Initiation Date: September 1, 2010 Project: Kenai Community Library Expansion and Renovation 2010 Contractor: Blazy Construction, Inc 36130 Kenai Spur Highway Soldotna, Alaska 99669 Contractor is hereby directed to make the following changes in the contract: 1) CR (ASI #25) Re roof existing library and reconstruct soffits 495,219.00 REASON FOR CHANGE: 1. Added re -roof of existing library to scope of contract. Address soffit water damage roof condition Except as modified herein, all other terms and conditions of the Agreement remain in full force and effect. Signature of the Contractor indicates agreement herewith, including all adjustments in the Contract Sum or Contract Time. The Original Contract Sum was 4,178,516.00 Net Change by previously authorized Change Orders 53,795.48 The Contract Sum prior to this Change Order was 4,232,311.48 The Contract Sum will be increased by this Change Order 495,219.00 The New Contract Sum including this Change Order will be 4,727,530.48 The Contract Time will be increased /decreased by this Change Order by 0 days OWNER: CONTRACTOR CITY OF KENAI BLAZY CONSTRUCTION, INC By: Name: Rick R. Koch Title: City Manager STATE OF ALASKA THIRD JUDICIAL DISTRICT )ss. THIS IS TO CERTIFY that on this day of 201_ Rick R. Koch, City Manager, City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. NOTARY PUBLIC FOR ALASKA My Commission Expires: Approved by Legal: Approved by Finance: CITY OF KENAI CAPITAL PROJECTS Contract Date: April 19, 2010 Account 218- 450 -8198 Purchase Order 92868 Total Net Cost of Change $495,219.00 By: Name: Kelly J. Keating Title: President STATE OF ALASKA THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on this day of 201 Kelly J. Keating, President of Blazy Construction, Inc. being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said corporation. NOTARY PUBLIC FOR ALASKA My Commission Expires: )ss. et KENAI, ALASKA General Fund: Increase Estimated Revenue Appropriation of Fund Balance State Grant PERS Relief Increase Appropriatio Fire Salaries Holiday Pay Medicare PERS Unemployment Insurance Workers Compensation Health Life Insurance Supplemental Retirement Total Fire Non Departmental PERS Total Appropriations CITY OF KENAI ORDINANCE NO. 2512 -2010 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $182,406.00 AND AUTHORIZING THE HIRING OF THREE ADDITIONAL FIRE FIGHTERS. WHEREAS, hiring three additional fire fighters was a priority identified during the FY11 budget process and action was delayed pending the results of a submitted grant application; and, WHEREAS, the City received notification on August 10th that its grant application was denied; and, WHEREAS, it is in the best interest of the City and its residents to fund and hire three additional fire fighters. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: -71- Suggested by: Council $175,493.00 6,914.00 $182.40,_7.00 $111,655.00 4,348.00 1,682.00 25, 521.00 580.00 5,576.00 25,060.00 1,071.00 S 175,493.00 S 6.914.00 $182.407.00 Ordinance No. 2512 -2010 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of September, 2010. ATTEST: Carol L. Freas, City Clerk Approved by Finance: PAT PORTER, MAYOR -72- Introduced: September 1, 2010 Adopted: September 15, 2010 Effective: September 15, 2010 .e KENAI, ALASKA To: Rick Koch, City Manager /From.: Terry Eubank, Finance Director Date: August 26, 2010 Re: Ordinance 2512 -2010 'Village with a Past, CL y with a F,tgre" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 ext 221 FAX: 907- 283 -3014 On August 10"' Fire Chief Tilly received notice that the City's grant application to fund three new fire fighter positions was unsuccessful. As discussed during preparation of FY11 Budget, Ordinance 2512 -2010 would appropriate, using local funds, funding for and authorization of the hiring of three fire fighters. Three additional fire fighters will provide one additional responder per shift for the department. $175,493 represents funding for three fire fighters for eight months resulting in a projected General Fund budget deficit of $112,807, The FY11 Budget was adopted with a projected budget surplus of $192,309. Since adoption of the FYI Budget, FY1.0 outstanding encumbrances totaling $128,209 were carried forward and supplemental appropriations totaling $17,473 have been made. A full years' funding would be $274,536 at the FY1 1 pay scale and would have created a projected budget deficit of $68,500 for the FYI 1 Budget prior to any supplemental appropriation or encumbrance being carried forward. -73- TO: FROM: Carol L. Freas, City e•k DATE: August 24, 2010 clf Attachment Mayor /Council Members Tillage with a Past, Gi y with a Frsture" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 FAX: (907) 283 -3014 www.ci.kenai.ak.us MEMO NDUM AMENDMENTS/KENAI CITY COUNCIL STUDENT REPRESENTATIVE POLICY At the August 18, 2010 Council Meeting, it was suggested an amendment be made to the Kenai City Council Student Representative Policy to allow the student representative to vote last instead of first. 1 have attached a copy of the Policy with suggested amendments. Does Council approve the Kenai City Council Student Representative Policy with the suggested amendments as presented? -74- It is important to seek out and consider students' ideas, viewpoints and reactions to city decisions and policies affecting students. In order to provide student input and involvement, the Kenai City Council may appoint a Student Representative and an Alternate Student Representative as it deems necessary. Limitations, Qualifications And Requirements: 1. The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast [PRIOR] after to the official council vote and shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes. Student representatives may not move or second items during a council meeting. 2. The student(s) shall be residents of the City of Kenai. 3. The student(s) shall be ajunior or senior in good standing at the Kenai Central High School. 4. The student(s) shall be elected by the Student Council of Kenai Central High School and subject of approval of the KCHS administration. 5. The student(s) shall attend all city council meetings and work sessions, unless excused by the Mayor. The alternate shall attend meetings in the absence of the Student Representative. 6. The student(s) should have a long -term interest in public service. 7. The student(s) should give feedback to council members shout policies impacting young people. 8. The student(s) should use this opportunity as a way to develop leadership skills. 9. The student(s) will communicate with student council members at Kenai Central High School to provide information and seek feedback from other students on city issues affecting young people and copies of all written reports regarding their service be provided to the Kenai City Council through the City Clerk's Office. 2010. ATTEST: KENAI CITY COUNCIL STUDENT REPRESENTATIVE POLICY APPROVED AND DATED: This [166 first day of [MARCH] September. [2005] Carol L. Freas, City Clerk -75- PAT PORTER, MAYOR R yan y an Marquis ryan @marquisforkenai.com (907) 398 -8058 Memorandum Mayor Porter, To: Council Members Boyle, Eldridge, Molloy, Moore, Smalley Student Representative Hannah Coffman From: Council Member Ryan Marquis Date: 08/30/2010 Subject: Student Representative Voting CC: Carol Freas, City Clerk Colleagues, I ask that we take a moment to consider our actions before voting on whether or not the student representative should vote before or after the Council. At first glance, this may seem to be a non -issue but I believe it's worthy of a second thought for a couple of reasons. First, and least important, is the issue of semantics. It is the student representative's responsibility to cast an advisory vote. While the vote of the student representative may, or may not, have influence over the vote of a Council Member, it is tradition that it is considered as such. Secondly, and most importantly, my concern has to do with where we want to set the bar when it comes to providing a valuable and thought provoking experience for our student representative. I understand that our business is confusing at first, and I'll admit that I found navigating my first few meetings and procedures challenging; however, I believe we provide a greater service to our student representatives if we challenge them. I applaud the courage that all of our student representatives have exhibited, and I wholeheartedly appreciate their willingness to accept the responsibility to learn the issues of the Council, participate in the process, and make decisions based on their feelings and understanding of such issues. It is because of this, that I urge the members of Council to continue with the tradition of the student representative casting an advisory vote prior to the Council's official votes. I appreciate you taking the time to consider my point of view. Sincerely, Ryan Marquis 1 of 1 Kenai No. 1, 33/710 Kenai No. 2, 33/720 1 Kenai No. 3, 33/730 1 Sharon Harris, Chair Betty Glick, Chair 1 Mary Troy Castimore, Chair Mary Quesnel Dallas Armstrong Mary Estes f Valerie V. Kwietniak Deborah A. Fullinck Kathleen Mattero 1 Gassy Shire Janice M. Daniels Carmen Walker L Carl S. Glick TO: Mayor and Council Members FROM: Carol L. Freas, City Clerk DATE: August 27, 2010 ilV llayr e with a Past, Gc with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 FAX: (907) 283 -3014 www.ci.kenai.ak.us MEMO NDUM OCTOBER 5, 20I0 CITY GENERAL ELECTION Precinct Election Board Approval Following are the people who have agreed to work on the Election Boards for Precincts 1, 2, and 3 in the City of Kenai. As required by KMC 6.05.040, all the persons listed are qualified voters of the City. KMC 6.05.040 also states the City Council appoints the members of the election boards. Does Council wish to appoint these persons as election board members for the October 5, 2010 City of Kenai election? -76- MEMO: llittilaye with a Past, City with a Fature TO: City Council r FROM: Rick Koch DATE: August 24, 2010 SUBJECT: Kenai Municipal Airport/Dock Fuel Supplier 210 Fidaigo Avenue, Kenai, Alaska 99611 -7794 t Telephone: 907 283 -7535 FAX: 907- 283 -3014 1 1111F 1952 The purpose ofthls correspondence is to provide information regarding the contract for furnishing and delivering fuel with Jackson Enterprises, Inc. (JEI), effective July 1, 2007 through June 30, 2010. The contract was for the supply of gasoline and diesel fuel to the airport and the dock. There are no issues related to the supply of gasoline fuel during the term of the contract. The specifications included in the Invitation to Bid required that diesel fuel be low sulfur diesel. Diesel fuel meeting this requirement must have a sulfur content of 500 ppm (parts per million) or less. An addendum was issued and acknowledged by JEI which required "All diesel fuel shall be ultra low sulfur." Diesel fuel meeting the ultra -low sulfur diesel fuel requirement must have a sulfur content of less than 15ppm. Hereafter I will refer to diesel fuel types as follows; Low Sulfur Diesel LSD (500ppm sulfur) Ultra Low Sulfur Diesel ULSD (15ppm sulfur) Jet A —JA (50Dppm- 1,200ppm, average 850ppm sulfur)) The City received bids for a new fuel supply contract for the period beginning July 1, 2010. JEI was not the successful bidder. The new fuel supplier sampled the tanks and on June 17, 2010 It was brought to the City's attention that the diesel fuel contained in the tanks may not be ULSD but contained sulfur content consistent with LSD. -77-- Following confirmation tests (The City sent fuel samples to a Fairbanks laboratory to confirm sulfur contents), I spoke with Mr. Scott Jackson, President of JEI. Mr. Jackson told me that he thought the specification required LSD since the use of ULSD was not required by regulation until after July 1, 2010. He further told me that the LSD fuel he had supplied over the term of the contract was a blend of JA fuel and ULSD to achieve a sulfur content of 50oppm (LSD). JEI was able to realize a profit above the contractor's mark -up of $0.105. I constructed a spreadsheet (Koch Letter to JEI dated 7/27/10 attached) which calculated the increase in profit, Over the three year period JEI's contract was in effect the calculated increase in profit realized by blending JA and ULSD at a 60/40 ratio to achieve 500ppm sulfur rather than purchasing LSD was $25,503.31. I discussed this matter with Mr. Jackson and he agreed to reimburse the City $25,503.31. I determined the reimbursement to be in the best interest of the City for the following reasons; 1. Given the lack of specific detail In the bid document /specifications it would be difficult to determine blending of fuels was a violation of the contract. 2. Mr. Jackson was willing to fully reimburse the City the amount of additional profit calculated by the City. 3, While there was no question that ULSD was required and LSD was supplied, there is a question as to whether JEI simply made a mistake, or intentionally supplied the non- specified fuel. 4. LSD is the fuel we have used for many years. There was no damage to equipment as a result of its continued use through the period of this contract. In light of the above I executed a release of claims (attached) against JEI as a result of the overcharges by JEI, and JEI provided a reimbursement to the City in the amount of $25,503.31. It was my intent to provide this information to you prior to my leaving for my vacation but I simply ran out of time. If you have any questions, please contact me at your convenience. -78- ii KE Al L ALASKA z July 27, 2010 Scott Jackson, Owner Jackson Enterprises, Inc. P.O. Box 2091 Soldotna, AK 99669 J 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 Fax: 907- 283 -3014 www.ci,kenai.ak.us Subject: Fuel Bids 2007 Furnish Deliver, Otter of Settlement Dear Mr. Jackson: The purpose of this correspondence is to provide the results of the City's investigation and calculation of fuel pricing provided for under the above referenced contract with Jackson Enterprises, Inc (JEI), and to establish the basis for a refund to the City. You stated that you incorrectly believed the contract specifications provided for the supply of low- sulfur diesel fuel >500ppm sulfur) rather than the contractually specified ultra low•diesel fuel (>15ppm sulfur). Further, based on my previous conversation with you, I understand in order to supply low sulfur fuel >500ppm), JEI mixed Jet A Fuel (500ppm- 1,200ppm) with ultra low- diesel fuel >15ppm). The mixing ratio, on average, was 60% Jet A to 40% ultra low- diesel. During the period of the contract, the price of both Jet A and ultra low diesel fuel varied considerably. The City has calculated the appropriate cost to the City for the fuel per gallon for each delivery as follows: (JEI Cost of Jet A x 0.6) (JEI Cost of Ultra Low Diesel x 0.4) JEI Mark -Up* $0,105 for Airport Fuel $0.055 for Non- Airport Fuel Attached are two spreadsheets which analyze the payments to JEI. These analyses show there has been a minimum overpayment to JEI in the amount of 25,503.31. Beginning July 31, 2010 I will be out of the office for three weeks. It is my desire to have this issue resolved prior to my departure. If this is an acceptable calculation for repayment to the City, the City will draft an agreement to finalize this matter. Please respond by July 29 to discuss this matter. -79- If you have any questions, please contact me at your convenience. Sincerely, Y KEI Al och City Manager attachments -80- a=> 3 G6. t 0 0 CN Ta _W 0 r -81- Jet Amore extensive (33425) blend not Ig Pelelnalea 300 Wang (637"2$) 0414098ra mow y Wel I 69"46 65 821 9 89 "641 39010 9 -29"96 90'£7 3 0Z961 t 01£91 9 2161£'1 081799 48"062 £Z't£l 1.4 "019'1 906911 9 Zt'9L9'C S 9£ "919 S 1 140203 70773 1 at 'L£2 ,1, 1 £S lut O 39'£32 4' 426 1 99301 I sroo9 190299 24'842 61048 99'101 1 56 "656 8' 'C 0 IC EEEEEE am o 17'211'4 9 94 9463 99'26'4 4S 1£Z'E 07 '1£4' 1 1$ 3,21522 1,538.55 59 29"£69'£ 9 29'692 10,106'£ $j 19'696'£ [9-2'390'£ $J £2196'£ 91 16 4991 C 541762 91 01"6£0'1 46'14£3 I 803.05 $__449292 OL £si ll 1$ 1 ,485.92 79'2-26'-2 $£'101'1 82 980'0 29104.0 i 36'681. t at 9291 89£1 631£1 65044 9'£101 1'0 998 1 6 2981_ 4001 9 1£04 4'1691 711.7 019 80291 51424 004 9116 £SS 9'e4£ [39431 3 42.01 204 £'1991 31911 Wool 1£'626 90(0 1. 901'0 SOS 0 S 901'0 5010 9010 9080 9 401'0 904"0 8650 901'0 5010 S S ot 0 901'0 I sovo 91 solo 901'0 401 0 SOLO 90(0 -11 son, 401-0 =I SOLO soya So 0 $1 40/'0 I 90r0 91 1_9040 9: 15010 901 0 901'0_ 9 9010 9010 OL28 "Z "Z Ot063 9 01.062 9 0004E 04063 0006£ S 3.9010 4.1102 333z3 zoL4£ 2Z14Z 221.17-8 82.910 9 9 2Z3 9 1229$2 Kitt 991.33 r8L9oz 9£912 9 1 99912 1 9998 196£9 8189 [£19-29_ 89492 9 841.93 86(12 5 &e£s'z 1 9 1 99053 e ca cn %00 %00'01 %00 "01' TOO* 4500'017 1 %00 04 °100'06 r -000 6 00 04 1 %00 200'04 r00 00 =01 Nasty °200'04 1 %000 %00 "04 %0x'08 %9604 %0604 %00 "04 1 %9o'o# 5400 "07 1 %0 04 %00'01- Knout %00'06 1 %00'0 8 1 0604 1 m c g m c n n to to %09'00 1 '606'09 1 %00 09 %00 09 %00'09 %00'09 4 20009 %00 09 %OTOS 0009 %00'09 %0009 %00'0,9 1 !%00'09 1 3,00'09 J %00'09 1 %0009 1 %99'09 I 1 %0009 1 loins= %0009 %0009 %00 %00'09 %00'09 1%00 6 %00 09 I %00 09 1 %00"09 %00'09 1 %0 6 09 1 %0009 1 i o y 0. t J i 9e 0 NO 0007 9 0056'3 3 0008 28917 10000'4 ZLBV'£ 3 81380 211.1•8 3416'£ stars SJ note_ 2116£ S, 61963 61863 6116 61963 81£62 61883 9 6926E 9 6926£ 16966£ $_1 6960E $I 69600 6960'£ 6966E 6941 69603 9 69£10 69£1 0 e CO 07 290501 2.8750 1 $1.2 2.7850 0001.2 0$193 000 2912 3_ 29162 I el q 139651. $1 29011 $1 39691 0901'1 S 105641 3 0419"1. 00032 3 1 0018'4 1 0910 "3 0910'8 3 09££3 09642 OSzt2 1 096ZZ 09633 1 1 0 3817 2 1 093£3 1 05953 3 09893 1008-462 -2022 1008 -462 -2022 1008462 -2022 1098 -462 -2022 2203 297100 -2302 008-462 -2022 3303 297 9000 3303 694 M 1008-462-2022 1-203291.9001 12202- 891-9o01 006- 492 -20221 008.4 2 -ton I 1003-402-20221 zzoz•394 904 2303 394 zz0z- zsti•900 "2303 392'800 3203.394-800 8800298 3303- 292-600 3303 294 100 1008 462 -20221 3363- 797 18803 1 oos.4sz -0033 100E-082 -2022 1008-462 -20221 008- 452 -2022 3202-8917-9001. 2202 £9$694 1 071691 £%9691 Z89691 383021 9£6691 397016 431.211 1 1 939011 098311 143211 099311 0493311 £ZZ£LL 9£131. r 096£11 1 173729 173729 I 6£04L1 1 419911 31 118714 1 999911 034911 1 914111- 1 099111_ 106111. 202211. 301111- 49612.1 819111 £069Lt 80E911 11-£98 1 L1898 11£49 2.1£99 11£98 11.£59 11999 1......_ 62098 62089 62088 6E088 63098 62098 62099 -2099 68099 62088 62088 93606 92606 38606_1 93606 92608 98606 92606 53606 92606 r 92606 92606 1$ 4,918.99 3 4,096.25 4240.80 3,636.39 3,328.16 5,075.30 94'094'1 01"££2.'4 $1 96'926'£ 31'174'4 30598 91'08£ 6 7 19.23 1 IS 4924,29 11 9'476'4 1 S£'£b0' 1Z "LL1 1 4,694,177 4,01811 93'92`1 31 ILL 9 221261- 9 19 9 1 4S'LL0'4 175391'4 $_1 L01(01/ I [69 L 199E1 10 01'918'£ 42766'1 -25791'£ uj iW 01 W 10 0165EL DIESEL DIESEL DIESEL 1 DIESEL 1 016311. #1 1 #135310 1.>1135310 Lit 139310 1333110 139310 1 1. 134311 138310 181393111 135311 10163£1 139310 13$310 DIESEL 01 I 0IE8E1_ #1 1 __4# 133311] 1353111 DIE #1 DIESE1 #1 IDIESEL #1 I 141 1333101 1# 133310 L# 136310 L #138310 L #139311 1# 193310 'IOIESF1 '',DIESEL #1 9491 6991 0291 6281 1 1 1 4691 0829 0992__ L9L6 0668 9916 491.6 7926__ 2126 69£6 9496 9096 5995 8896 T911.4_ I 14204 }24 1 1 98914 1 06911 l 96911 97111 L731) 1 21.641 2991} 618/1 84£11 el 1/15(2008 1/25/2008 Z/8J2808 2219/20061 3/252008 9002'42/£ 9/14/2008 6/26/2008 ISoozi5!!1 1 9493 /9/04 19002!$/11 X8002/4/61 1 11(25/2008 12/11/20081 1 12/2620061 1/28120091 ?14120091 16004/41£ 1 .6002/112 6003/03/9 6002/£/9 10/62009 10/8/2009 16002/0121 OL02/91.0 600313/21 0102/82 OL03/9/2 01-03/211£ 0102/1./2 02.02191/7 01.02/9111 a=> 3 G6. t 0 0 CN Ta _W 0 r -81- LL 0 CU co th -82- RELEASE OF CLAIMS This Release of Claims is made between the City of Kenai, Alaska, whose address is 2I0 Fidalgo Avenue, Kenai, AK 99611, and. Jackson Enterprises, Inc. (JEI) whose address is P. 0. Box 2091, Soldotna, AK 99669. For and inconsideration of the JEI's payment to the City of Kenai of $25,503.31, receipt of which is hereby acknowledged, the City of Kenai and its officers, successors, assigns, insurers and re- insurers (collectively "Releasor") hereby releases and forever discharges JEI and each of its employees, officers, directors, successors, assigns, insurers and re- insurers (collectively JEI) from any and all claims, demands, actions, causes of action, lawsuits, and controversies of every kind and nature for any and all damages and losses of every kind and nature, whether presently known or unknown, suspected or unsuspected, disclosed er undisclosed, arising directly or indirectly out of JEl's improper assessment of fuel charges (price overcharges for fuel delivered) under the 2007 agreement to furnish and deliver ultra -low sulfur diesel and unleaded gasoline to the City of Kenai as bid by JEI dated May 30, 2007, ReIeasor aclmowledges and agrees that payment is made in full settlement and satisfaction of any and all damages so sustained by it resulting from the overcharges by JEI. Releasor further understands that the nature and/or extent of any claim which it might have against JEI may substantially change or worsen in the future, and it is Releasor's intent to unequivocally release and discharge JE1 from any and all claims, accrued or which may accrue in the future in connection with or related to the price charged by JEI for fuel supplied to the City of Kenai under the 2007 agreement. Release of Claims Page 1 of 2 Agts.JEI. Release072810 -83- Releasor warrants that the terms of this Release have been competently read and are voluntarily accepted; that it is not executing this Release as a result of financial disadvantage; that no promise or inducement has been made except as herein set forth; that this Release is executed without reliance upon any statement or representation by JEI, considering the nature and extent of the City of Kenai's damages or the legal liability, the financial responsibility or status, or the assets of JET. The undersigned affirms that he is authorized by Releasor to execute the foregoing Release agreement on behalf of the Releasor and that he has executed the same freely and voluntarily as the free act and deed of Releasor. DATED: 4 14 �1 )ss THIRD JUDICIAL DISTRICT STATE OF ALASKA Approved as to form amcoe4i ICTrlsta S. Steams, City Attorney Release of Claims Agts. JEI.Release072810 THIS IS TO CERTIFY that on this 1 day of July, 2010, the foregoing instrument was acknowledged befog RICK R. KOCH, City Manager of the City of Kenai, Alaska, an Alaska home 4 �'r�.' y, on behalf of the City. e q y y qty g.� ''s¢R R t. g Notary Public for Alaska My Commission Expires: IN1T1h OR C i -84- CITY OF KENAI ck Koch City Manager Page 2 of 2 210 FIDALGO AVENUE KENAI, ALASKA 99611 -7794 (907) 283 -7535 ext. 236 FUEL BIDS 2007 FURNISH AND DELIVER The City of Kenai is soliciting a bid for furnishing and delivering diesel and unleaded gasoline to various locations in the City. Sealed bids will be received until 2 p.m., local time, May 30, 2007 and publicly opened at the above address. For further information, contact the Public Works Department. To be published: Peninsula Clarion May 16, and 21, 2007 -85- (a) General Fuel Bid Furnish and Deliver 2007 CITY OF KENAI FUEL BID FURNISH AND DELIVER INSTRUCTIONS TO BIDDERS AND SPECIFICATIONS A. OCCUPATIONAL SAFETY AND HEALTH WARRANTY Bidder, if awarded a contract, warrants that the products sold and service rendered to the City shall conform to the standards and /or regulations promulgated by the U.S. Department of Labor under the Occupational Safety and Health Act of 1970(29 U.S.C. 651, OL 91 -596) and all amendments thereto, and the State of Alaska Occupational Safety Health Act of 1973 and all amendments thereto. In the event the product sold does not conform to the OSHA standards and /or regulations, the City may return the product for correction or replacement at the City's option and at the seller's expense, or by City at seller's expense in the event seller fails to make the appropriate correction within a reasonable time. Material Safety Data Sheets (MSDS) must be furnished, at no charge, for each type of product delivered. B. COMPLIANCE Bidder, if awarded a contract, shall comply with all State, Federal and local laws, regulations or orders applicable to the purchase, manufacture, processing and delivery of the fuel. The fuel produced and the delivery shall be in compliance with all applicable requirements of the Fair Labor Standards Act as amended, including Section 6 and 12 thereof, and of the regulations and others of the U.S. Department of Labor under Section 14 thereof. C. INSURANCE REQUIREMENTS AND INDEMNIFICATION The Contractor shall not commence work until he has obtained all insurance required under this section or until he has satisfied the City in this respect; nor shall he allow any subcontractor to commence work until he also has obtained similar insurance which is applicable to his work. The Contractor shall maintain insurance throughout the life of this Contract. Such insurance shall be by a company /corporation currently rated "A or better by A.M. Best. (b) Workmen's Compensation Insurance The Contractor shall obtain and maintain during the life of this Contract, workmen's compensation accident insurance for all employees who will work on this project, and if any work is sublet, the Contractor shall require the subcontractor similarly to provide such insurance for all of the latter's employees Page 2 of 9 Revised 5/9107 -86- General Liability (on an occurrence form) $1,000,000 (One Million Dollars) Combined Single Limit per occurrence General Aggregate, Project $1,000,000 (One Million Dollars Products- Completed Operations Aggregate $1,000,000 (One Million Dollars) All general liability policies or endorsements thereto shall in all cases where possible name the City as Additional Named Insured thereunder and shall contain a waiver of subrogation against the City. unless they are included under the protection afforded by the Contractor, If employees engaged in hazardous work are not protected under the AS23,30, by workmen's compensation insurance, the Contractor and any subcontractor who is affected must provide compensation insurance with a private company which in amount shall be equivalent to that provided by the Alaska workmen's compensation insurance for the protection of employees who are not so engaged. The minimum limits of coverage shall be: (A) Alaska Worker's Compensation and (A) Statutory (B) Employer's Liability Insurance (B)$500,000 per occurrence All workman's compensation policies or endorsements thereto shall in all cases where possible contain a waiver of subrogation against the City. (c) Bodily Injury, Property Damage and Vehicle Liability Insurance The Contractor shall obtain and maintain in force during the life of this Contract such general liability and property- damage insurance as shall protect the City and the Contractor against losses which may result from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from any operations under this Contract, whether such operations be those of the Contractor, a subcontractor or anyone directly or indirectly employed by either of them and the amount of such insurance shall be as follows unless modified by the Special Provisions of these specifications The minimum limits of coverage shall be: Auto Liability with included Operations, Contractual Liability, and Owned, Hired, and Non -owned Vehicles Fuel Bid Furnish and Deliver 2007 $1,000,000 (One Million Dollars) Combined Single Limit per occurrence Page 3 of 9 Revised 5/9/07 -87- (e) Scope of Insurance and Special Hazards The insurance required under subparagraphs (c) and (d) hereof shall provide adequate protection for the Contractor and his subcontractors, respectively, against damage claims which may arise from operations under this Contract, whether such operations be by the insured or by anyone directly or indirectly employed by him and, also against any of the special hazards which may be encountered in the performance of this Contract as may be enumerated in the Special Conditions. (0 Coverage shall include hazards of explosion, collapse, and underground at policy aggregate and occurrence limits. (d) Subcontractor's Bodily Injury and Property Damage Insurance and Vehicle Liability Insurance The Contractor shall either (1) require each of his subcontractors to procure and to maintain during the life of his subcontract, Subcontractor's Bodily Injury and Property Damage Insurance and Vehicle Liability Insurance of the type and in the amounts specified in subparagraph (c) hereof or, (2) insure the activities in his policy, specified in subparagraph (c) hereof. Proof of Carriage of Insurance The Contractor shall furnish the City with certificates showing the type, amount, class of operations covered, effective dates and date of expiration of policies. Such certificates shall also contain substantially the following statement: "The insurance covered by certificate will not be canceled or materially altered, except after twenty (20) days written notice has been received by letter by the City of Kenai." (g) Indemnification To the fullest extent permitted by law, the Contractor shall indemnify, defend, and hold harmless the City of Kenai and its agents, officers, and employees from and against all claims, damages, losses and expenses including attorneys' fees arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease, death or personal injury, or to injury to or destruction of tangible property including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of Fuel Bid Furnish and Deliver 2007 Page 4 of 9 Revised 5/9/07 -88- D. DELIVERY them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. In arty and all claims against the City of Kenai or its agents, officers, or employees by any employee of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the indemnification obligation under this Article shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under Worker's Compensation acts, disability benefit acts, or other employee benefit acts, 1. It will be the successful bidder's responsibility to make sure that each fuel tank remains full. 2. AIRPORT FUEL TANK, WATER TANK GENERATOR, SEWER TREATMENT PLANT GENERATOR, AND PUBLIC SAFETY BUILDING GENERATOR Diesel No. 1 is used during power outages, test running, and generator exercising. The successful bidder needs to check these tanks to make sure they are full at least twice a month. They also need to check them during and after power outages or when requested to be checked by the City of Kenai. 3, DOCK Unleaded Gasoline and Diesel No. 2 are used from around May through November. The fuel usage at the dock is very sporadic, Usage depends on many factors such as how strong the fish run is; where the fishermen are fishing; when and how high the tides are; the time of the season; set net and drift net fish openings, and others. Fish tenders may drain 4,000 gallons of fuel from the system at one time. It is very important for the successful bidder to work with the Dock Manager to make sure that the tanks remain full. 4. The successful bidder will be required to make their fuel truck(s) and driver(s) available at all times (24 hours /day, 7 days /week, and 365 days /year) for fueling when an emergency arises and the City is out of fuel. Phone number(s) shall be given to the City so the contractor can be contacted at all times. 5. Except for extenuating circumstances, the contractor will be asked to deliver fuel and check the tanks during the City's normal working hours. Fuel delivery to the Dock tanks may be required at any time. Fuel Bid Furnish and Deliver 2007 Page 5 of 9 Revised 5/9/07 -89- 6 The contractors contract may be canceled, or the y may become ineligible for future bidding, if their fuel or their delivery becomes a problem to the City. E. FEDERAL, STATE AND LOCAL LAWS, RULES AND REGULATIONS 1. The successful bidder will be required to meet all of the federal, state, and local laws, rules, regulations and requirements. 2. All of the fuel purchased by the City, except for the fuel purchased for the is for use by the City and is exempt from taxes. The City the fuel the City ses, dock, tY If the successful bidder has to will not pay taxes by the City, the City will provide the successful bidder with an exemption certificate so the successful bidder can be reimbursed, pay taxes for fuel used by 3 The fuel delivered to the City dock is for resale by the City to fishermen and therefore, any applicable federal, state, and local taxes will be added to the bid price when invoicing the City. This includes the State Marine Fuel Tax plus any other required fuel tax. 4. The successful bidder will provide all signs and notices at each site to meet all federal, state, and local laws, regulations, and requirements. OSHA concerning dyed fuel, y igns nd ntaticeS, plus any required This includes meet all federal, state and local requirements for shipping, p d eliver y rider papers, notices of loading, and invoices. delive delivery, papers, bills 5. The successful bidder is responsible for the safety of their delivery personnel, and equipment, and shall meet or exceed all federal, state, and local insurance requirements. F. PRICING 1. All prices quoted shall be net and must be stated in dollars per gallon as specified and shall include all costs. 2. Bidder's unit bid price will be guaranteed for the term of the contract (July 1, 2007 to June 30, 2008). The contract period may be extended upon mutual this contract ontract goes parties to the City wlll pay the Unit Price as bid in the one-year periods. On the day on Bid Form. on Fuel Bid Furnish and Deliver 2007 Page 6 of 9 -90- Revised 5/9/07 G. CASE! DISCOUNTS All bid prices must be net. Cash discounts quoted for prompt payment of invoices will not be considered as a factor in awarding of bids. H. BIDS 1. Signed bids must be in the Kenai Public Works Department office on or before 2 p.m. focal time, May 30, 2007, The bids will be opened publicly. 2. It is the responsibility of the bidder to insure that their bid and subsequent addenda, if any, are in the Kenai Public Works Office prior to the time of the scheduled bid opening. Bids must be in a SEALED envelope and clearly marked as follows: FUEL BID 2007 FURNISH AND DELIVER Due Date: May 30, 2007 at 2 p.m. 3. Faxed bids or bid amendments will not be accepted. 4, All bids shall be submitted on the attached bid forms in the spaces indicated, and must comply with these instructions. 5. No City employee or agent shall make any oral change in the bid documents or make any oral interpretation that may affect the substance of the bid document. 6. The City reserves the right to accept or reject any or all bids, consider alternates, and further reserves the right to waive formalities in bidding procedures. 7. In the case of default by the successful bidder, the City of Kenai may procure the fuel and services from other sources and hold the successful bidder responsible for any excess cost occasioned thereby. 8. In case of damage to City property in fulfilling this contract, the successful bidder shall reimburse the City to the extent of such damage. 9. The successful bidder shall hold and save the City, its officers, agents and employees, harmless from liability of any nature or kind, including costs and expenses, for or on account of any or all suits or damages of any character whatsoever resulting from injuries or damages sustained by any person or persons or property by virtue of performance of this contract unless such suits or damages arise from negligence on the part of the City or its employees in the performance of their assigned duties. The City shall not be liable for any costs incurred by the bidder in bid preparation. Fuel Bid Furnish and Deliver 2007 Page 7 of 9 -91- Revised 5/9/07 10. No officer or employee of the City of Kenai shall be admitted to any share or part of this contract, or of any benefit that may arise therefrom, unless it may be made with a corporation for its general benefit. 11. There will not be a pre -bid conference, but all bidders are asked to contact Jack La Shot, Public Works Manager, at 283 -7535 ext. 234 if they have any questions, comments, or recommendations concerning this bid. 12. The fuel bid proposal shall be filled out in its entirety. Any addenda to this bid shall be acknowledged on the Addendum Acknowledgment Form. 13. In awarding competitive bid purchases or construction contracts under KMC 7.15.040, preference may be given to an otherwise qualified "local bidder" unless such preference is prohibited by the funding source. For purpose of this section, a "local bidder" is a person who: a. Holds a current state business license, and in addition for construction contracts, holds a current, appropriate state contractor's registration certificate; b. Submits a bid for a competitive purchase or construction contract under the name as appearing on the person's license and, where applicable, a certificate; c. Has continuously maintained a physical place of business within the Kenai Peninsula Borough staffed by the bidder or an employee of the bidder for a period of one hundred eighty (180) days immediately preceding the date of the bid opening. Bidder must prove compliance with this requirement to the City's satisfaction. Mere maintenance of a mail box or telephone answering service, for example, is not sufficient to comply with this provision; and d. If a joint venture, is composed entirely of venturers that qualify under this section. An award shall be made to the lowest responsible bidder pursuant to KMC 7.15.040 except that a bid may be awarded to a local bidder if the local bidder's bid is not more than five percent higher than the lowest responsible non -focal bidder's bid; provided, however, such preference shall never exceed twenty -five thousand dollars, and further provided that the other provisions of KMC 7.15.040 of this Fuel Bid Furnish and Deliver 2007 Page 8 of 9 Revised 5/9/07 -92- Unleaded Gasoline Diesel No. 1 Diesel No. 2 Dock Airport Fuel Tank Water Tank Generator Sewer Treatment Plant Generator Public Safety Building Generator Dock chapter as applicable, have been met and the City chooses to award the bid. L TAX COMPLIANCE CERTIFICATE All bidders shall submit, with the bid, a Tax Compliance Certificate signed by the proper Kenai Peninsula Borough (KPB) Authority. Bidders shouid contact the Kenai Peninsula Borough to ascertain the procedure for obtaining this certificate. Bidders who previously had no KPB tax obligations shall so state on the tax compliance form (which still needs to be signed by the KPB). The City of Kenai assumes no responsibility for the bidders ability to obtain this certificate in a timely manner. Any bids submitted without a required certificate or statement indicating no certificate is required may be rejected by the City of Kenai. J. QUANTITIES OF FUEL The bidders unit price will be used for payment regardless of quantities of fuel used. K. CONTRACT TERMS The term of this contract is from July 1, 2007 to June 30, 2008 unless extended. The successful bidder will keep the fuel tanks full at the following locations. Fuel Bid Furnish and Deliver 2007 Page 9 of 9 Revised 5/9/07 -93- ADDENDU NO. 1 DATE: May 17, 2007 TO: All Bidders FROM: Jack La Shot, Public Works Manager SUBJECT: Fuel Bids 2007 Furnish and Deliver ADD: All diesel fuel shall be ultra -low sulfur. All other requirements remain the same. Page 1 of 2 CITY ITY OF KENAI u Od Capital f „/4f_./ 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611.7794 TELEPHONE 907.203 -7535 FAX 907-283-3014 The specifications for this project are hereby modified and /or superseded by this Addendum No. 1. Please sign the attached Addendum Acknowledgment and enclose with your Bid Proposal. INSTRUCTIONS TO BIDDERS AND SPECIFICATIONS, Page 6 of 9 E. PRICING Item 2: Change first sentence to read: Bidder's unit bid price as amended will be guaranteed for the term of the contract (July 1, 2007 to June 30, 2008). Item 2: Add the following sentence at the end of the paragraph The City shall be notified of each price change of the supply price. -94- ADDENDUM ACKNOWLEDGMENT Fuel MOT Furnish and De @@ever The undersigned acknowledges re Dpt o the following Addenda to the Pis and SpeSieaiiores, if no Addenda V rs sl ed; wribp. the wcard "none" on the find line. Page 2of2 nature Signature -95- DATE E5St ED Signatures are to be the sane the individuals who signo the hod proposals, id Submitted by: y Name CFTV OF KENAI 210 FuDALG© AVENUE KENAI, AK 99611 -7794 (907) 283-7535 ext. 236 FURNISH, DELIVER, AND KEEP TANKS FULL Bids are submitted in conformance with the Invitation to Bid, and Instruction to Bidders and Specifications. Bidder should submit the signed form "Request for Consideration as Local Bidder" if he wants to be considered a local bidder. Date of Bid: 3 a Signature of Bidder Typed or Printed Name and Title: SraizA" e' e icrottar 7 FUEL BID Furnish and Deliver 2007 Page 1 of 2 -96- Revised 519/07 Price per Gallon Unleaded (Dock) Price per Gallon Diesel No. 1 (Generators Airport Fuel Tank) Price per Gallon Diesel No. 2 (Dock) A. Supply Price q( 3 3 3 3 B. Contractor's Mark Up n 1 /O a 0 C. Total Unit Price City Pays c?. i 1 c,?. y 3 es id Submitted by: y Name CFTV OF KENAI 210 FuDALG© AVENUE KENAI, AK 99611 -7794 (907) 283-7535 ext. 236 FURNISH, DELIVER, AND KEEP TANKS FULL Bids are submitted in conformance with the Invitation to Bid, and Instruction to Bidders and Specifications. Bidder should submit the signed form "Request for Consideration as Local Bidder" if he wants to be considered a local bidder. Date of Bid: 3 a Signature of Bidder Typed or Printed Name and Title: SraizA" e' e icrottar 7 FUEL BID Furnish and Deliver 2007 Page 1 of 2 -96- Revised 519/07 LOCAL PREFERENCE REQUEST FO's C®NS DER: 110 S LOCAL Bi DER 1 declare that r j therefore qualifies as "Local Bidde —97— 1. In awarding competitive bid purchases or construction contracts under KMC 7.15.040, preference may be given to an otherwise qualified "local bidder" unless such preference is prohibited by the funding source. 2. For purpose of this section, a "local bidder" is a person who: ;41a7ce 1F(meets the criteria listed below and a. Holds a current state business license, and in addition for construction contracts, holds a current, appropriate state contractor's registration certificate; b. Submits a bid for a competitive purchase or construction contract under the name as appearing on the person's license and, where applicable, a certificate; c. Has continuously maintained a physical place of business within the Kenai Peninsula Borough staffed by the bidder or an employee of the bidder for a period of one hundred eighty (180) days immediately preceding the date of the bid opening. Bidder must prove compliance with this requirement to the City's satisfaction. Mere maintenance of a mail box or telephone answering service, for example, is not sufficient to comply with this provision; and d. If a joint venture, is composed entirely of venturers that qualify under this section. 3. An award shall be made to the lowest responsible bidder pursuant to KMC 7.15.040 except that a bid may be awarded to a local bidder if the local bidder's bid is not more than five percent higher than the lowest responsible non -local bidder's bid; provided, however, such preference shall never exceed twenty -five thousand dollars, and further provided that the other provisions of KMC 7.15.040 of this chapter as applicable, have been met and the City chooses to award the bid. 4. The City may require a bidder to provide additional information regarding his qualifications as a "Local Bidder." PRINJ=ED NAME SIGNATURE DATE mor.m.2007 4:131 IPArgro known tit DE casetent orsonovoo PeeniktiLD Ye* No f 43101, Yea No number acrA ®P -sr Jf tti> n crt Number Account Nun® alltalt Realm 4ae Carfare G Deft We 09 Fiance: Walt% MSc 7cludamt .2 MAME= PIM P4k.U1y or ism ?limn r&Z VOA ZStt&t R19® addrea. or IMJSuat Ran yet rna; btsl7is r maiwwl re nal nut Wine 1hs rCws1 Pednauia Baolgdot nn., PC— Of lee, pwo.oprVtlra ba aolne moo* onion lot Non Moo IP on pioNal for boon.) gniPa*fl Bator coo, of Ottawas, elu o @.7Q.1o0. Matron bet bu.irler..i ollokl ia®.etIgaanOtte is tat he Kent Pattie Some be santkuso*to damuBta Ids p a„a4cam. No a.natd snPm ®watoe Inektit Gs eseirnes6 Woo is nut to rein relska ofwc Boo* Coda ,QO!tew be ad raa.i o.esdle06aa rig Fa' F for en*mt¢ Ord fat the bad Carr toondodao, Me tun€ Irpdwq Int aareaa gg r �Q• G d P® ken t£r rte tromotC4, dos macrag.lfna.o I6: 4�1 AE, BMW, 'tarok Atria Nana IN CABWUA2ICE WIN ALL BOROL1 K irm PRobnafe?tb' NI;OS 191 C OMPISOE worm ALL BORCUeai TAX PIP8A1Binfla, -98- trZfrempas out Tea Roving NANNO ®Pm eswva nefilnEMotax dge r a. ImicolIIt1 Cowan Jr P3 "soot BNB bU PP CDAIPLNUMZE Ya! as Too No �&9 TPA ITO NE OOMP8hT® BY solko lBaP PETS 7Na t z Go 0 6•d 0£l7 -99- 0 3) uos ;oef flocs 3) 3) cca t L 6 86 O W N L W ..cn G 3) M s m 2 P.6 E N E E a 0'_ ar r c VG 0 n ff C .0 4 °a N E O 3) ce O N 4, C 4 C 3) U+ O. N 0 0 0 0 0 0 c u q tea C N a a .0 to a to c tri C 0 ti 0 CD CD LID c0 I g B 3:90 LO Levu 1. CALL TO ORDER: a. Roll Cal! b. Agenda Approval c. Consent Agenda d. *Excused Absences Commissioner Wells CITY OF KENAI PLANNING ZONING COMMISSION AGENDA CITY COUNCIL CHAMBERS August 25, 2010 7:00 p.m. 6:00 7:00 p.m. Work Session *All items listed with an asterisk are considered to be routine and non controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 2. *APPROVAL OF MINUTES: a. *August 11, 2010 3. SCHEDULED PUBLIC COMMENT: (10 Minutes) 4. CONSIDERATION OF PLATS: 5. PUBLIC HEARINGS: 6. UNFINISHED BUSINESS: 7. NEW BUSINESS: 8. PENDING ITEMS: 9. REPORTS: a. City Council b. Borough Planning c. Administration 10. PERSONS PRESENT NOT SCHEDULED• (3 Minutes) 11. INFORMATION ITEMS: 12. NEXT MEETING ATTENDANCE NOTIFICATION: September 8, 2010 13. COMMISSION COMMENTS QUESTIONS: 14. ADJOURNMENT: -100- ITEM 1: A quorum was present. CITY OF KENAI PLANNING ZONING COMMISSION AUGUST 25, 2010 7:00 P.M. CITY COUNCIL CHAMBERS CHAIR JEFF TWA/T, PRESIDING CALL TO ORDER MINUTES Chair Twait called the meeting to order at appro 1 -a. Roll Call Roll was confirmed as follows: Commissioners present: Commissioners absent: Staff /Council Liaison present: 1 -d. *Excused Absences Roy Wells Approved by consent agenda. -101- ately 7:01 p.m. G. Brookman, K. Koester, S. Romain, J. Twait, P. Bryson, K. Rogers R. Wells (excused) City Planner M. Kebschull, Council Member R. Molloy, Deputy City Clerk C. Hall 1 -b. Agenda Approval MOTION: Commissioner Romain MOVED to approve the agenda as presented and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. 1 -c. Consent Agenda MOTION: Commissioner Brookman MOVED to approve the consent agenda and Commissioner Bryson SECONDED the motion. There were no objections. 50 ORDERED. *All items listed with an asterisk are considered to be routine and non- controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM 2: *APPROVAL OF MINUTES August 11, 2010 Approved by consent agenda. ITEM 3: SCHEDULED PUBLIC COMMENT None ITEM 4: CONSIDERATION OF PLATS None ITEM 5: PUBLIC HEARINGS None ITEM 6: UNFINISHED BUSINESS None ITEM 7: NEW BUSINESS None ITEM 8: PENDING ITEMS None ITEM 9: REPORTS 9 -a. City Council Council Member Molloy reviewed the action agenda items of the August 18, 2010 City Council meeting included in the packet, noting the nuisance ordinance was amended and passed, the ordinance to amend the code regarding destroyed buildings passed unanimously, and the rezone ordinance passed unanimously. Molloy reviewed the Board of Adjustment hearing of August 23, 2010, noting the appellant did not appear, however the Board discussed the appeal and the City Attorney would prepare a formal decision to be reviewed and signed within 30 days. 9 -b. Borough Planning Commissioner Bryson reviewed the agenda of the August 23, 2010 Borough Planning Commission Meeting, noting the special consideration to review the Plat Committee's denial for land across Cook Inlet owned by Salamatof Native Association. 9 -c. Administration City Planner Kebschull noted she had been in Anchorage earlier in the day for a meeting on the Natural Gas Storage Project; the City may apply for rezone of property along Bridge Access Road to Conservation; and, she would be out of town from August 31 through September 17, 2010. Planning Assistant Nancy Carver would be covering for her in her absence. ITEM 10: PERSONS PRESENT NOT SCHEDULED None ITEM 11: INFORMATION ITEMS None ITEM 12: NEXT MEETING ATTENDANCE NOTIFICATION 12-a. September 8, 2010 No Commissioners reported they would be absent from the September 8, 2010 meeting. -102- PLANNING AND ZONING COMMISSION AUGUST 25, 2010 PAGE 2 ITEM 13: COMMISSION COMMENTS QUESTIONS Commissioner Bryson noted, after the election on August 24, 2010, the Borough Assembly could have four former members of the Planning Commission. ITEM 14: MOTION: ADJOURNMENT Commissioner Koester MOVED to adjourn and. Commissioner Rornain SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 7;17 p.rn. Minutes prepared and submitted by: Corene Hall, CMC, Deputy City Clerk -103- PLANNING AND ZONING COMMISSION AUGUST 25, 2010 PAGE 3 REPORT OF CITY MANAGER 4 PR Thank you for the opportunity to highlight individuals who are key to the success of our CERT program! -105- Michael (Huck) Huckabay (Retired Firefighter) Huck joined the Kenai Peninsula CERT program in 2006 and quickly became one of our most active, involved and dynamic instructors. In four short years he's provided five excellent CERT classes, progressively enhanced the CERT powerpoint presentation and handout materials, provided CERT volunteers with supplemental CPS and ICS training, and helped organize and deliver portions of CERT and ICS training in the school system borough wide. Huck is one of our most flexible instructors, scheduling extra classes and make -up sessions so that people are sure to finish and never feel short- changed on time. Huck has also provided tours of the OEM Communications Van during Sept. Preparedness Month outreach and community safety fairs. He's our go -to guy for show casing the amazing difference one person can make in community preparedness! Engineer Sam Satathite Sam was involved in the very first CERT Train The- Trainer class in 2001 and is still active with the CERT program today. As a first responder with the City of Kenai Fire Department, Sam's background and enthusiasm for teaching are great assets In addition to volunteering many hours to teach, he's also invested many hours working with CERT volunteers on team building, traffic control and scene safety, radio communications, and neighborhood disaster exercises. Sam's a great instructor and his knowledge and professionalism are wonderful assets to his department, the CERT program and the community! Kenai Fire Chief Michael Tilly It's been a remarkable pleasure working with Chief Tilly. His enthusiastic interest in community preparedness assumes many forms, including supporting CERT classes, planning and executing neighborhood exercises assisting with community mass dispensing clinics, and supporting the vision, design and implementation of emergency training in area schools. Chief Tilly's leadership and commitment to preparedness is a credit to his Department, to the City of Kenai and a Borough -wide example of how to do it right! Curt Jacobson Curt is a Firefighter /EMT who is active with several of the Kenai Peninsula Volunteer Fire Departments including the one in his home town of Moose Pass He's been a steadfast supporter of the CERT program since attending the first Train The Trainer in 2001. Versatile and energetic, Curt pitches in to help with many community preparedness activities, including teaching CERT classes in Cooper Landing and Seward, attending community meetings and safety fairs, and helping with emergency preparedness training for the School District. Curt is an unwavering example of how we can all step -up to prepare for the disaster hazards we face! Total Project Funds $5,711,911.00 Consultant Design Contract Administration $713,476.00 Construction Contract $4,232,311.00 Utility Relocations $45,000.00 Fixtures Furnishings and Equipment (budget) $135,000.00 Administration, Project Management Printing $72,000.00 Existing library re -roof $510,000,00 Estimated Contingency $4,124.00 the ct/ KENAI, ALASKA MEMO: with a Past, Git with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907- 283 -7535 FAX: 907 283 -3014 -106- TO: Rick Koch FROM: Kevin Lyon, Capital Projects Manager DATE: 8124/2010 SUBJECT: Kenai Community Library Existing Library Re -roof This memo is to update you on the progress of the Library re -roof project as part of the Kenai Community Library Expansion Project. Upon the passage of Ordinance 2491 -2010 and Ordinance 2492 -2010, $396,395 was added to the library project to re -roof the existing library and provide for the construction of a new circulation desk. Considering the poor condition of the roof this is a high priority project. The re -roof design is now complete and during the design process it was discovered that the roof contained asbestos requiring abatement. It was noted that the roof was too flat for the contractor to provide a warrantee. It then required construction of a sloped roof and roof drains. Dry rot deterioration of the soffit and roof decking above the soffit area were also found. Each of the above items impacts the repair costs, preliminary proposals have estimated the construction cost as high as $510,000. This exceeds the funds appropriated for the roof by $113,605, not counting the construction of the circulation desk. Currently the general contractor is soliciting multiple bids from roofing contractors, to see if a more competitive bid can be found. This memo is to inform you that when the bids are received a change order will be initiated to add the re -roof to the existing contract. This will have major impact on available contingency funds and additional funds may need to be appropriated, to respond to future changes. MEMO: TO: Tillage with a Past City with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 FAX: 907- 283 -3014 -107- Kenai City Council F'OM: Christine Cunningham, Assistant to the City Manager THROUGH: Rick Koch, City Manager DATE: August 26, 2010 SUBJECT: Alaska: North to the Future, Volume !V 1992 The purpose of this correspondence is to provide the attached version of the City's profile layout in a hardbound book titled Alaska: North to the Future, Volume IV, published by Wyndham Publications, Inc. featuring Alaska as an ideal place to live, work and do business. The Alaska State Legislature is the sponsoring entity and supports the North to the Future project series as "an exceptional calling card and reminder for Alaska businesses and organizations." The City was offered a complimentary profile valued at $11,340.00 in the Chapter: "Prominent Communities of Alaska," which would include two pages of editorial space and photographs to be provided by the City. The City included a photograph by local photographer Greg Daniels titled "Fleet's In" which also appears on the City's webpage and in the Milepost. The profile was later expanded from a two -page profile to a four -page profile at no additional cost to the City. Wyndham Publications notes that they cannot guarantee or predict any color that may be print on a color printer. Please consider the attached version as a reference only. n _4 e 5 -1 mp .__ofiniwito d -108- •"4 :1 WM Ittaliatt 111116 binfog.ifitteithlidt* E,...„. e.-.211,1, ki• 1 s-...lets s '-ftr •-.it;*: 1 T 7 10;* c N -tIS*•(" ielki-....:44113..:-. ._•14, -.Atr,••••.? .-4 i tr 6 --...-P-- ,:AA N '17 At•rp.=,r-• 4.-,', ....-.......-Ja...A.,.......-......-----.......-..—...-----......--,.....-1_ A swo— 914, 14k •Ae 4 1 1.tti.:St REPORT OF THE CITY CLERK STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT folio AFFIDAVIT OF CAROL FREAS Carol L. Freas, being first duly sworn upon oath, deposes and states as 1. I am the City Clerk for the City of Kenai, Alaska. 2. On July 7, 2010, I hand- delivered Notice of Special Meeting along with the agenda for the July 12, 2010 Special Council Meeting (there was no packet material), attached hereto as Exhibit A, by personal delivery to the following Council Members in the Council Chambers of Kenai City Hall, located at 210 Fidalgo Avenue, Kenai, at approximately 9:40 p.m. (immediately following the July 7, 2010 City Council meeting: Pat Porter, Mayor Joe Moore Ryan Marquis Mike Boyle 3. The Notice of Special Meeting was delivered to each Council member at least 48 hours prior to the date and time set for the special meeting as required by Kenai Municipal Code 1.10.060. 4. In addition to providing this notice to members of the Kenai City Council, on July 8, 2010, I also caused a Notice of Special Meeting (attached as Exhibit B) at three prominent places in the community, including on the City's Official Bulletin Board in City Hall, the Kenai Post Office (at approximately 5:15 p.m.) and at Kenai Community Library (at approximately 5:05 p.m.). I also -113- Hal Smalley, Vice Mayor Barry Eldridge Robert Molloy posted the notice on the City's website, (www.ci.kenai.ak.us), at 3:00 p.m. on July 8, 2010. 5. Additionally, I caused a Special Meeting Agenda to be published in the Peninsula Clarion on Friday, July 8, 2010. A copy of the Publisher's Affidavit is attached as Exhibit C. 6. Also, I forwarded a Public Service Announcement (attached as Exhibit D) via facsimile transmission to the following Kenai Peninsula radio stations: KDLL, KSRM, KBBI. Further this affiant sayeth naught. CAROL FREAS City Clerk SUBSCRIBED AND SWORN to before me this 16th day of August, 2010. Notary Public in and for Alaska My Commission Expires: 1 -114- (,c,4.-/ The council meeting agenda is attached. Carol L. Freas. City Clerk NOTICE OF SPECIAL MEETING MONDAY, JULY 12, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS NOTICE IS HEREBY GIVEN the Council of the City of Kenai will convene in a special meeting on Monday, July 12, 2010. The purpose of the meeting is to conduct the annual evaluations of the City Attorney and City Clerk. The special meeting will commence at 7:00 p.m. in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611, -115- EXHIBIT A, PAGE 1 OF 2 ITEM A: CALL TO ORDER ITEM B: 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval ITEM C: ADJOURNMENT AGENDA KENAI CITY COUNCIL SPECIAL MEETING JULY 12, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: /www.ci.kenai.ak.us UNSCHEDULED PUBLIC COMMENTS (Public comment limited to 3 m inutes per speaker) EXECUTIVE SESSION Annual evaluations of City Attorney and City Clerk, -116- NOTICE OF SPECIAL MEETING MONDAY, JULY 12, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS NOTICE IS HEREBY GIVEN the Council of the City of Kenai will convene in a special meeting on Monday, July 12, 2010. The purpose of the meeting is to conduct annual evaluations of the City Attorney and City Clerk. The special meeting will commence at 7:00 p. m. in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai,, Alaska, 99611. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. The meeting packet is available on line and copies of the packet will be available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Carol L. Freas, City Clerk Posted: July 8, 2010 -117- EXHIBIT B, PAGE 1 OF 1 UNITED STATES OF AMERICA, STATE OF ALASKA Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times tae& in this affidavit mentions, Supervisor of Loge's of the Peninsula Clarion, a news-4. paper of general circulation and published at Kenai, Alaska, that the Special Meeting PO #93476 a.printed copy of which is hereto annexe published in said paper one each and every day consecutive following dates: July 9, 2010 14th day of PUBLISHER'S A iFIDAYIT f one successive and day i l in the issues on If2ei f l SUBSCRIBED AND SWORN to me before NOTARY PUBLIC in favor for the State of Alaska. My Commission expires July 2040 26- Aug -I2 -118- AGENDA KENAI CITY COUNCIL— SPECIAL MEETING JULY 12, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htto://www.cl.kenakak.us ITEM A: CALL TO ORDER EXECUTIVE SESSION Annual Evaluations of City Attorney and C Clerk ITEM Si 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 o website at tt,91As.ci.kenai,al,us. arid L. Freas, City Clerk 0312/21 t EXHIBIT C, PAGE 1 OF 1 NOTICE IS HEREBY GIVEN the City of Kenai will convene in a special meeting on Monday, July 12, 2010. The purpose of the meeting is to consider to conduct annual evaluations of the City Attorney and City Clerk. The special meeting will commence at 7:00 p.m. in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. The meeting packet is available on line and copies of the packet will be available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Carol L. Freas, City Clerk Distributed: July 9, 2010 PUBLIC SERVICE ANNOUNCEMENT -119- EXHIBIT D, PAGE 1 OF 1 INFORMATION ITEMS KENAI CITY COUNCIL MEETING SEPTEMBER 1, 2010 1. 9/1/2010 Purchase Orders Between $2,500 and $15,000 for council review. 2. Budget Transfer in Capital Projects in excess of 5,000. o a o 0 o a d o 0 p CO 0 CO u0 ca cv r 0 a a 0 r 0) cc Q a w m -70- Purpose of Report The purpose of this report is to present findings and recommendations that could influence future deployment of the Cook Inlet Ferry. Planning decisions are now being made with respect to Cook Inlet Ferry scheduling that have developed from a 2005 report entitled Cook Inlet Ferry Demand Analysis Final Report CIFDA). In today's economy, it is more important than ever to carefully analyze profitability; the more profitable an operation is, the more likely it will serve the interests of the public, and that it will grow and maximize economic stimulus to the broadest number of communities. Therefore, the assumptions that underlie profitability and growth analysis in the CIFDA need to be scrutinized. It is our recommendation, based on findings presented herein, that the profit /loss analysis of the Anchorage to Kenai route be updated to reflect current market realities. This report is designed to assist in that process. Qualifications of Presenter: Executive Summary Cook Inlet Ferry Demand Analysis Presented by Jon Faulkner, President, Land's End and Kenai Landing, Inc. Jon Faulkner is the President of Land's End Acquisition Corp, a Kenai based company that owns and operates Land's End in Homer; Kenai Landing in Kenai, and the Van Gilder hotel in Seward. Mr. Faulkner has been active on the Kenai Peninsula as a developer and operator of visitor and commercial facilities for 25 years. LEAC's properties cater to a highly diverse base of Alaskans and non resident visitors who are perfectly representative of the customer profile attracted to the Cook Inlet Ferry. This report is based on significant research, some over many years and some more recently from targeted interviews, that focuses on customer travel preferences and patterns, price points, packaging opportunities, obstacles with ground based tour operators, and many other factors that affect an analysis of future Ferry demand to the Kenai Peninsula. By way of disclosure, Kenai Landing is a tidewater commercial property in Kenai, Alaska that would benefit from ferry service. Kenai Landing caters to a broad spectrum of consumers, including resident recreationists, out -of -state visitors and commercial /industrial businesses primarily industrial storage and fish processing. Kenai Landing would be a potential landing location. Our findings confirm that there is broad public demand for and support for upper Cook Inlet Ferry Service: for freight, and for vehicle and passenger service associated with resident traffic and visitors from out of state. Furthermore, there is considerable future economic growth opportunities associated with west side Cook Inlet mining and energy related projects that justify introduction of a reliable marine transportation network. It is generally acknowledged that the rates recommended in the CIFDA report for the Anchorage to Kenai route in particular are outdated and artificially low— to the point where the data skews results toward an unfavorable conclusion. The data needs to be updated in order to make sound deployment decisions that are based on the public interest. The CIFDA report also points out that some of the more promising revenue opportunities stem from partnering with (or selectively assessing) private sector interests. Kenai Landing, for example, could benefit economically from Ferry service and would be a willing investor in developing service to Kenai, both as a user of the ferry and as a potential tidewater terminal. Contracts will private sector interests can and will affect profitability of a route, and should be vigorously pursued in the early stages of feasibility and scheduling determination. Scheduling and routing is a complex matrix that must take into account many things: maximizing revenue potential and meeting peak demand; minimizing labor and other operating costs, such as fuel; stimulating economic development and private sector investment; testing markets for future expansion of the system; extending benefits of publically funded transportation to the broadest sector possible, etc. Our findings support the feasibility of an Anchorage to Kenai /Tyonek route on weekends only. Rate Analysis: Anchorage to Kenai Our first recommendationis to adopt a rate matrix that reflects that of the Marine Highway System, for obvious reasons. Our second recommendation is to update revenue projections for the Anchorage to Kenai route based on current market statistics. For example: ONE WAY ferry rates between Whittier and Valdez, as of 8/1/10 are as follows: Whittier to Valdez Adult (12 $89.00 Bicycles $1290 Car or Motorcycle 10' $75.00 Car or R.V. 15' $105.001 Car or R.V. 19' $123.00 Car or R.V. 21 $157.00 Car or R.V. over 21' $B.30 per foot Kayaks orinflatabies $19.00 The drive times associated with the Anchorage to Valdez drive (and the corresponding tradeoffs in terms of fuel costs, drive time, and wilderness and sightseeing opportunities lost, etc.) are roughly comparable to the Anchorage to Kenai drive. Further, Homer Stage Line passenger van service between Anchorage and Kenai /Homer —which has been in service for five years provides an accurate measure of what people will pay for strict transportation options at the low end. Homer Stage line charges $66 one -way between Soldotna /Kenai and Anchorage, and $120 round trip. Kachemak Bay Ferries to Seldovia are charging $48 -$55 round trip, a 14 mile run. The above prices are significantly more than $20 one -way fare that the CIFDA report insists is the upper limit for an Anchorage to Kenai RT fare. Revenue projections for the route need to be updated accordingly. Respondents to our survey of 45 representative customers indicate optimum pricing for an Anchorage to Kenai run in the first year to be in the following range: Anchorage to Kenai Adult (12 $44.00 ($88 RT) Bicycles $9.00 Car or Motorcycle 10' $45.00 Car or R.V. -15' $55.00 Car or R.V. 19' $75.00 Car or R.V. 21' $85.00 Car or R.V. over 21' $5.00 per foot Kayaks or inflatables $10;00" Demand Analysis: Anchorage to Kenai The CIFDA report concludes, on page 7: "These assumptions are not likely to be replicated by reality, but the intent is to show the longer ferry runs in as favorable light as possible for the sake of comparison with the Anchorage- Mat -Su Shuttle operation." The above statement is a contributing factor to CIFDA's conclusions about route profitability and needs to be carefully reviewed for accuracy. Scheduling of 2011 ferry routes should not be based on the pricing assumptions contained within the 2005 CIFDA report. The travel and demand statistics cited within the CIFDA report are solid; our findings support the general conclusion that demand for ferry service between Anchorage and the Kenai Peninsula is strong among Alaskans as well as non residents. DOT daily traffic counts to the Kenai Peninsula are high and holding steady, and while the more expensive option of air transportation was down 8% in 2009, the total air traffic into the region remains very high compared to its resident population, and has not been as heavily impacted as other destinations. Kenai is fast becoming a vital link to the west side of Cook Inlet. New coal, geothermal and mining projects will place a growing demand for water -based transportation to /from Tyonek Anchorage and Kenai. Developing this link now will prove to be a wise investment, as these projects are fast coming on- line. Finally, the Kenai Peninsula enjoys a tremendous amount of Alaskan -based travel that will not diminish over time. As the Pt. McKenzie and Mat -Su regions grow (and which ferry service will facilitate), access to the Kenai Peninsula via the Glenn Highway will become more difficult and place a growing burden on existing transportation corridors. Establishing a ferry link early in the process that allows residents of this growing area to by -pass Anchorage should be part and parcel of the plan —not a secondary or future concept. One final note: DOT road counts confirm a considerable amount of road traffic between Homer and Anchorage year- round. Interestingly, ferry service from Anchorage to Kenai is deemed more desirable than ferry service all the way to Horner, since the drive to Kenai from Homer is direct and less time consuming than a ferry. Furthermore, our research shows, just as total ferry demand drops off, the percentage of people likely to use the ferry increases —due to road conditions, weather, and other contingencies associated with winter travel. Trips to Anchorage among Peninsula residents will increase during the winter months by 1 -2 trips, given the option of taking a ferry. Weekend vs. Weekday: Timing of Demand and its Effect on Ferry Scheduling It is acknowledged that the core demand and profitability for initial ferry service is between Anchorage and Port McKenzie. Any scheduling of the Ferry needs to balance the demands for daily commuter service between Anchorage- Mat -Su, profitability, and passenger demand to areas south of Anchorage. Strong consideration should be given to testing the economic viability of promising routes (Anchorage to Kenai) early in the process —using this ferry— before the public is too dependent upon a fixed schedule or routing plan. This will facilitating more accurate, economically based decisions regarding future additions to the fleet. Among Anchorage and Mat -Su residents, 75% of the demand for ferry service between Anchorage and Kenai exists during the weekend, beginning at 5pm on Friday and ending at roughly 11pm Sunday. More analysis needs to focus on the timing of ferry demand to the Kenai Peninsula, something the CIFDA report does not adequately address. Similarly, the year -round demand for ferry traffic from the Kenai Peninsula to Anchorage falls largely on weekends —and compliments perfectly the to /from loading schedule of those riding in the opposite direction. Conversely, it appears likely —based on Glenn Highway traffic counts —that ferry demand between Pt. McKenzie and Anchorage will increase during the business week, (appealing mostly to commuters) and diminish during the weekend. This leaves open the possibility of weekend -only ferry service to the Kenai Peninsula serving the broad interests of all southcentral residents. The CIFDA report does not adequately separate weekend demand from weekday demand among the various destinations particularly the Anchorage /Pt. McKenzie route vs. Anchorage /Kenai. Weekend routes to Pt. McKenzie, for example, will displace greater profit and public benefits associated with runs to Tyonek /Kenai. Not enough research exists with respect to the timing of freight demand to Tyonek, or to Kenai. However, it is projected that given other options, waiting until a weekend sailing date would accommodate most resident and commercial business's freight transportation needs, at least in the near term. In this vein, consideration should be given to a split -shift for Friday- Sunday operations: Sam to 1pm, and a second shift from 3pm to 11pm. This prevents costly overtime, allows some downtime for maintenance and cleaning, and accommodates peak hours of weekend demand (which we perceive to be different than weekday demand). A split shift would accommodate an evening round -trip departure to Kenai on Friday, Saturday and Sunday evenings. The 2 -hour gap between shifts would accommodate delays during an early morning run, and possible mid -day crew changes in Kenai. In summary, our findings support weekend departures for Tyonek and Kenai every Friday, Saturday and Sunday, from March through October. This would accommodate the daily commuter needs of Mat -Su residents, while providing a fixed, weekly, largely year -round transportation link to the Kenai Peninsula. Conclusion Update revenue and expense analysis for Kenai route prior to committing ferry schedule. Update rate and demand study with more emphasis on timing of load counts in both directions. For example, is it better to be full going in one direction and empty in the other (during a particular time period), or preferable to have SO% capacity in both directions. (The latter accommodates growth, while the former may not). Engage private sector to help maximize revenues for proposed Kenai routing, prior to finalizing profit /loss analysis and ferry schedule. Consider Weekend -only schedule between Anchorage and Kenai, to broaden markets, profitability and public convenience. NOTICE OF PUBLIC HEARING SEPTEMBER 1, 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. 2497 -2010 Amending KMC Chapter 1.10 Entitled "The Council," in Its Entirety and Specifically Addressing the Procedures for Special meetings of the City Council and Making Technical Corrections. (At its July 21, 2010 meeting, the City Council substituted Ordinance No. 2497 -2010 and subsequently postponed it to the September 1, 2010 Council Meeting. There is a motion to adopt active and on the floor.) 2. Ordinance No. 2509 -2010 Amending the Official Kenai Zoning Map by Rezoning Southeast 1 /4 Southeast 1 /4 Section 4, Township 5 North, Range 11 West, Seward Meridian (SE 1 /4 SE 1/4 Sec. 4, T5N, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (IH). 3. Ordinance No. 2510 -2010 Increasing Estimated Revenues and Appropriations in the Airport Improvement Capital Project Fund for Phase 1 of the Float Plane Basin Development. 4. Ordinance No. 2511 -2010 Increasing Estimated Revenues and Appropriations in the Congregate Housing Improvements Capital Project Fund for Replacement of the Facility's Siding. Resolution No. 2010 -50 Approving a Contract to Hattenburg Dilley Linnell, LLC (HDL, LLC) for Kenai Water Treatment Plant Design Services for the Total Amount of 5452,660. 6. Resolution No. 2010 -51 Approving a Contract to Wince- Corthell- Bryson Consulting Engineers for Phase One Kenai Float Plane Basin Development Project for the Total Amount of S 146,000.00. 7. Resolution No. 2010 -52 Naming a Portion of Lot A, 1 -A Barron Park Subdivision Fire Addition, Daubenspeck Family Park. 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: August 27, 2010 NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and /or Resolution(s) at the above referenced meeting. 1. Ordinance No. 2509-2010 Amending the Official Kenai Zoning Map by Rezoning Southeast 1 /4 Southeast 1 /4 Section 4, Township 5 North, Range 11 West, Seward Meridian (SE 1/4 SE 1 /4 Sec. 4, TSN, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (IH). 3. Ordinance No. 2510 -2010 Increasing Estimated Revenues and. Appropriations in the Airport Improvement Capital Project Fund for Phase 1 of the Float Plane Basin Development. 4. Ordinance No. 2511 -2010 Increasing Estimated Revenues and Appropriations in the Congregate Housing Improvements Capital Project Fund for Replacement of the Facility's Siding. 5. Resolution No. 2010 -50 Approving a Contract to Hattenburg Dilley Linnell, LLC (HDL, LLC) for Kenai Water Treatment Plant Design Services for the Total Amount of S452,660. 6. Resolution No. 2010 -51 Approving a Contract to Wince- Corthell- Bryson Consulting Engineers for Phase One Kenai Float Plane Basin Development Project for the Total Amount of $146,000.00. 7. Resolution No. 2010 -52 Naming a Portion of Lot A, 1 -A Barron Park Subdivision Fire Addition, Daubenspeck Family Park. 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 adoption without further public notice. Carol L. Freas, City Clerk Posted: September 2, 2010 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE KENAI CITY COUNCIL MEETING OF SEPTEMBER 1, 2010 AGENDA KENAI CITY COUNCIL— REGULAR MEETING SEPTEMBER 1, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ctkenai.ak.us ITEM B: SCHEDULED PUBLIC COMMENTS (Public comment limited to 10 minutes per speaker) 1, Richard Gentges, Cook Inlet Natural Gas Storage Alaska, LLC (CINGSA) Storage Facility Project. 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. 2497 -2010 Amending KMC Chapter 1.10 Entitled "The Council," in Its Entirety and Specifically Addressing the Procedures for Special meetings of the City Council and Making Technical Corrections. (At its July 21, 2010 meeting, the City Council substituted Ordinance No. 2497 -2010 and subsequently postponed it to the September 1, 2010 Council Meeting. There is a motion to adopt active and on the floor.) 2. Ordinance No. 2509 -2010 Amending the Official Kenai Zoning Map by Rezoning Southeast Y Southeast Section 4, Township 5 North, Range 11 West, Seward Meridian (SE Y SE Sec. 4, T5N, R11W S.M.) from Rural Residential (RR) to Heavy Industrial (0-1). 3. Ordinance No. 2510 -2010 Increasing Estimated Revenues and Appropriations in the Airport Improvement Capital Project Fund for Phase 1 of the Float Plane Basin Development. 4. Ordinance No. 2511 -2010 Increasing Estimated Revenues and Appropriations in the Congregate Housing Improvements Capital Project Fund for Replacement of the Facility's Siding. 5. Resolution No. 2010 -50 Approving a Contract to Hattenburg Dilley Linnet', LLC (HDL, LLC) for Kenai Water Treatment Plant Design Services for the Total Amount of 5452,660. 6. Resolution No. 2010 -51 Approving a Contract to Wince- Corthell- Bryson Consulting Engineers for Phase One Kenai Float Plane Basin Development Project for the Total Amount of 5146,000.00. 7. Resolution No. 2010 -52 Naming a Portion of Lot A, 1 -A Barron Park Subdivision Fire Addition, Daubenspeck Family Park. ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. Ratification of Bills 2. Approval of Purchase Orders Exceeding 515,000. 3. *Ordinance No. 2512 -2010 Increasing Estimated Revenues and Appropriations by 5182,406.00 and Authorizing the Hiring of Three Additional Fire Fighters. 4. Action /Approval Kenai City Council Student Representative Policy /Suggested Amendments 5. Action /Approval October 5, 2010 City of Kenai General Election /Election Boards for Precincts 1, 2, and 3. 6. Discussion Kenai Municipal Airport/Dock Fuel Supplier Jackson Enterprises, Inc. EXECUTIVE SESSION 1) A matter, the immediate knowledge of which would clearly have an adverse effect upon the finances of the City of Kenai /Jackson Enterprises Fuel Supply Contract. 2) A matter, the immediate knowledge of which would clearly have an adverse effect upon the finances of the City of Kenai /Cook Inlet Natural Gas Storage (CINGS) Project. 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.ctkenai.ak.us. "yi Carol L. Frees, City Clerk D/211 UNITED STATES OF AMERICA, STATE OF ALASKA Denise Reece being first duly sworn, on oath deposes and says: That 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 #93476 a printed copy of which is published in said paper one each and every day consecutive following dates: August 30, 2010 day PUBLISHER'S AFF DAV T in the issues on the s zereto annexed was for one successive and SUBSCRIBED AND SWORN to me before 3rd day of September NOTARY PUBLIC in favor fi State of Alaska. My Commission expires 26- Aug -12 he 2010 AGENDA ;KENAI COUNCIL REGULAR REGULAR MEETING SEPTEMBER 1, 7:00 Pad. KE NAI i GITY COUNCIL CHA M f tto: /www.ci kenai ak.us ITE B: SCHEDUIED PU COMMENTS (Public comment: b inne d to 10 minutes per speak 1, Richard G entges, Co I nlet Natural Gas BERS Storage Alaska LLC (CINGSA) Stora Facility Project. ITEM D: PU HEARINGS (Testimon kmlted to 3 30 min utes p er: speake Pe rsons m ay give t he i r tim ov #o another speaker prese ho no s ing l e sp eaker present may s for more than m inutes combined on r hea ow and on ot b eha l f) 1...Ordina N o. 2497301D Amending KMC Chapter 1.10 Entitled 'The Co uncil," i its E ntirety and Specifically Addressing the Procedures for Special mee of the City Council a Making Technical Carreotions: (At its i n.. uly 21, 2 010 meet th e Ci ty C ouncil substituted Ordinance No. 2497.10 a s postponed it to the September 1, 2010 Counc Meeting There is a motion to adopt active and on the floor,) 2 N 2509 €2010 A mending the Offi Kenai Zoning Map by Rezonin Southeast 4 Sout Section4, Township 5 North Rage 11 West, Seward M eridiSE SE "1 Sec. 4 T5N R11W S M) fr Rural Residential (RR) to Heavy Industrial (IH), 3 Ordina No, 25.10 -2 0 1 0 increasing Estimated Revenues and' Appropr in the Airp ort Improve e mnt Capital Project Fund for' Phase.1 the Float Plana Basin D 4. Ordina No. 2511 -2010 Increasing Estimated Revenues ale Appropri in the C Housing Improvements: Capital:; Project Fund for Replacement ofthe Facilitys Siding. 5. Resolution No 2010.5D Approving a Contract to H Dille y' 8 Linne LLC (HDL LLC) for Kenai Water Treatment Winc Plant Design Services for the TotalAmount of $452,660. 6 Resti No. 2010.51 Approving a ntract te- Cori Bryson Consulting Engineers for Phase One Co Kenai Floa t Plane B hell asin Development Project for the Total Amount of $146 ,000 00. 7. -Resolution No. 2010.52 Naming a Portion of Lot A, 1 -A Barron venues Park Subdivision Fire Addition, Daubenapeok Family park ITEM F. UNFINISHED:BUSINE$$ ITEM G: NEW BUSINESS 1. Ratificati of Bills 2 Approval of Purchase :le8c1MnK2risOvddue,)e40bec rs Exceeding $15,D00 3. 'Ordinance No, 2512-2010 Increasing Estimated Re and: Appropria tions by $600 and Authorizing the Hiring :of Three nal Fire Fighte. 4, Action/Approval C ity Ccil Student Representative Policy /Suggested Amments nai 5. ActionlApproval tober 5 2010 City of Kenai: General Election/Election Boa r Precincts 1, 2, and 3 6. Discussion Kenanicipal Arport/ Fuel Supplier Jackson Enterprises, Inc EXECUTIVE SESSION A matter, the immediate knowledgeof which would Additio clearly have an adrse effect upon the finances of the City rf Kenai Jackson Enterprises Fuel Supply Contract 2) A matter, the immediate knowledge of which would'clearly have an adverse effect upon:' the finances of the City of KenailCook Inlet Natural Gas Storage (CINGS) Project. 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.1/www.ci,henai.ak us. Carol L Frees, City Clerk 0370/211