HomeMy WebLinkAbout2012-04-04 Council Packeti O'
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Council - 4 packets
Clerk
City Manager
City Attorney
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Finance
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Library
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Fire Department
A
Cunningham
Kebschull
X
Student Re
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Hall Binder
Clarion
KSRM
Mellish
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Schmidt
ELECTRONIC COPY NOTICE Y
Send out notice to All with link to Council Packet
DELIVER
Council and Student Rep packets to Police Department Dispatch Desk.
Clarion, KS , Mellish & Schmidt pick up their packets in the Clerk's Office.
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1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
*All items listed with an asterisk ( *) are considered to be routine and
non - controversial by the council and will be approved by one motion.
There will be no separate discussion of these items unless a council
member so requests, in which case the item will be removed from the
consent agenda and considered in its normal sequence on the agenda as
part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10)
minutes per speaker)
C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3)
minutes per speaker; thirty (30) minutes aggregated)
s
D. PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
1. *A pro ®al of Liquor License Renewal
® Little Ski -Mo Drive In (License # 1774) ................... ............................... Pg 4
2. Ordinance No. 2619 -2012 - Decreasing Estimated Revenues and
Appropriations in the Streets, Water, and Sewer Capital Project Fund
and Increasing Estimated Revenues and Appropriations in the City Shop
Capital Project Fund for the Schematic Design of a New City Shop
Utilizing Grant Funds from the State of Alaska for the Project ..................... Pg 6
3. Ordinance No. 2620 -2012 - Increasing Estimated Revenues and
Appropriations by $2,000.64 in the General Fund for Grant Funds to
Provide Police Training to Prevent Internet Crimes Against Children
( ICAC) .............. -.......................................................................................... Pg 10
4. Ordinance No. 2621 -2012 - Increasing Estimated Revenues and
Appropriations by $2,155.98 in the General Fund for the Police
Department to Purchase Equipment Utilizing Asset Forfeiture Funds
Provided to the City of Kenai ........................................ ............................... Pg 12
y of Kenai Council Meeting Agenda Page I of 3
April 4, 2012
5. Resolution No. 2012 -21 - Authorizing a Budget Transfer within the
General Fund, Clerk Department for Staff Recruitment Expenses ............... Pg 14
E. MINUTES
J i Special Meeting of March 20, 2012 ............................. ............................... Pg 16
Regular Meeting of March 21, 2012 ............................. ..I............................ Pg 20
UNFINISHED BUSINESS - None
G.
1. Action /Approval -Bills to be Ratified ......................... ............................... Pg 36
2. Action /Approval - Purchase Orders Exceeding $15,000 ............................ Pg 38
3. Action /Approval - Special Use Permit to Buccaneer Alaska Operations,
LLC.............................................................................. ............................... Pg 40
�4. *Ordinance No. 2622 -2012 - Authorizing the City Manager to Enter into
a Lease Preference Right Agreement with Thomas Wagoner and Dorothy
Wagoner with Respect to Lot 2, Block 1, Gusty Subdivision (J�r4 2 Kenai
Spur Highway) Located within the Airport Reserve... (.... ° ....... ........... Pg 62
5. rdinance No. 2623 -2012 - Amending Kenai Municipal Code Section
3.25.060, "Overtime," to Eliminate the Payment of Overtime in Excess of
air Labor Standards Act (FLSA) Rate,S to Tem�r Employees and
Making Technical Corrections .............. .> ...... "`./. ............................ Pg 66
a
1. Council on Aging -OLAv? ?cqS
2. Airport Commission
3. Harbor Commission ¢A vw ,j
4. Library Commission `3o "j c C-
5. Parks and Recreation Commission Zo
6. Planning and Zoning Commissionv IVaa/
7. Beautification Committee -- raaq- .
✓l. City Manager
Y City Attorney
3. City Clerk
1 ,I1 • •
City of Kenai Council Meeting Agenda
April 4, 2012
1. Citizens Comments (Public comment limited to five (5) minutes per
speaker)
2. Council Comments
L. EXECUTIVE SESSION - None
M. PENDING ITEMS
Ordinance No. 2597 -2811 - Amending Kenai Municipal Code
14.22.010, Land Use Table, to Make Comprehensive Changes to the Uses
Allowed in the Suburban Residential (RS), Suburban Residential 1 (RS1),
Suburban Residential 2 (RS2), Rural Residential (RR), Rural Residential
RR -1, and the Urban Residential (RU) Zoning Districts.
[Clerk's Note: At its November 16, 2011 meeting, Council postponed
Ordinance No. 2597 -2011 to the August 1, 2012 meeting and the
ordinance was referred back to the Planning and Zoning Commission
so the Commission could continue to consider the changes proposed in
this work product during the Comprehensive Plan process.]
N. ADJOURNMENT pro
** ��x*, r: ex�, rx* xx�x* xxxxx��xxx *x� * *x *x *,- xx:rr.�x *:exy: x:ex * *: rat *re�xx�xx * * *x��x�:�x�t�•x *�xt
Purchase Orders between $2,500 and $15,000 for Council Review .............. Pg 72
Budget Transfer in Capital Projects in Excess of $5,000 - None
Letter of Appreciation from Governor Sean Parnell . ...... -- ........................... Pg 74
Correspondence Regarding the City's Support of the 2012 Industry
OutlookForum ............................................................. ............................... Pg 76
The agenda and supporting documents are posted on the City's website at
www.ci.ken.a.i.ak.us . Copies of resolutions and ordinances are available at the
City Clerk's Office or outside the Council Chamber prior to the meeting. For
additional information, please contact the City Clerk's Office at 907- 283 -7535 ext
231.
y of Kenai Council Meeting Agenda Page 3 of 3
April 4, 2012 g
rfi u.PnAMMa it lm
tv� t <�ifh e r�i a Past C wdk a Fa tree
210 Fidaigo Avenue, Kenai, Alaska 99611 -7794
\ Telephone: (907) 233 -7535 / FAX; (907) 283 -3014
www.c- Lkenai.ak.us
KENAlt A
April 5, 2012
Ms. Christine Lambert
Records & Licensing Supervisor
Alcoholic Beverage Control Board
5848 East odor Road
Anchorage, AK 99507 -1286
At its regular meeting of April 4, 2012, the Kenai City Council approved the renewal of
the liquor license for Little Ski -Mo Drive In; license number 1774. The City has raised
no objections based on unpaid taxes, delinquent taxes or obligations of the premises to
the City.
If you have any questions, please contact me at 283 -7535, extension 231.
Sincerely,
Sandra Modigh, CMC
City Clerk
cc: Johni Blankenship, Kenai Borough Clerk
Applicant
Borough Finance Department
Cf
March 1, 2012
KENAI PENINSULA
144 North Binkley Street o Soidotna, Alaska 99669 -7520
PHONE: (907) 714 -2160 ® FAX: (907) 714 -2388
Toll -free within the Borough: 1 -840- 478 -4441 ExL 2160
Email, assemblyclerk @borough.kenai.ak.us
Ms. Christine Lambert
Records & Licensing Supervisor
Alcoholic Beverage Control Board
5848 E. Tudor Road
Anchorage, Alaska 99507 -1286
RE: Non - Objection of License Renewal
Business Name
Little Ski -Mo Drive in
License Type
Restaurant /Eating Place
License Location
City of Kenai
License No.
1774
Dear Ms. Lambert,
•
cs *a
This serves to advise that the Finance Department has reviewed the above referenced
application and has no objection to the renewal of this license.
Per Lauri Lingafelt's email of February 28, 2012 this premise address needs correcting due to
either the Borough updating records or updating information for 911 or utilities purpose. The
correct premise address according to our records is 11504 Kenai Spur Hwy.
Should you have any questions, or need additional information, please do not hesitate to
contact our office.
Sincerely,
Johni Blankenship, MMC UC
Borough Clerk
JB /idr
cc: Applicant
City of Kenai
KPB Finance Department
File
:9
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KENAALASKA
Suggested by: Administration
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DECREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE STREETS, WATER, AND
SEWER CAPITAL PROJECT FUND AND INCREASING ESTIMATED REVENUES AND
APPROPRIATIONS IN THE CITY SHOP CAPITAL PROJECT FUND FOR THE
SCHEMATIC DESIGN OF A NEW CITY SHOP UTILIZING GRANT FUNDS FROM THE
STATE; OF ALASKA. FOR THE PROJECT.
WHEREAS, the City received a grant in the amount of $I,000,000 from the State of
Alaska for public improvement; and,
WHEREAS, the funds were initially appropriated in the Streets, Water, and Sewer
Capital Project Fund but these grant funds may be used for any public improvement
project; arid,
WHEREAS, as of February 29, 2012, $491,680.25 of the original grant funds remained
unspent; and,
WHEREAS, the finance department believes accounting for the City Shop Project will
be better accomplished in a separate fund; and,
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
AT AIK�, that esti;, a" revenues and appropriations be increased and decreased as
follows:
Streets, Water & Sewer Capital Project Fund
Decrease Estimated Revenues:
State Grant
$129,119.28
Decrease Estimated Expenditures
Construction
$129,119.28
City Shot) Capital Project Fund
Increase Estimate Revenues:
State Gran,
$129,119.28
Increase Appropriations:
Construction
$129,119.28
New Text Underlined; [DELETED TEXT BRACKETED
0
Ordinance No. 2619 -2010
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of April,
2012.
PAT PORTER, MAYOR
ATTEST:
Sandra Modigh, City Clerk
Introduced: March 21, 2012
Approved by Finance: —1 Adopted: April 4, 2012
Effective: April 4, 2012
New Text Underlined; [DELETED TEXT BRACKETED)
M
To: Rick Koch, City Manager
rl
Villa wiik a Past Cl*�Y wiA a Fwd "Ire fr
FINANCE DEPARTMENT
210 Fidalgo Avenue—, Kenai, Alaska 99611 -7794
Telephone: 907- 283 -7536 ext 221 / FAX 907- 283 -3014
4 f From: Terry Eubank, Finance Director
Date: March 15, 2012
Re: Ordinance 2619-2012
The purpose of this memo is to provide support for Ordinance 2619 -2012 which if passed will
transfer the appropriation of state grant funds from the Streets, Water & Sewer Capital Project
Fund to the City Shop Capital Project Fund, In FY2009 the City received a $1,000,000 grant
from the State of Alaska for public improvements. The grant was originally appropriated for
street, water and. sewer projects.
As part of the FY2012 budget process these grant funds were identified as a source of funding
design services for the new City shop. This Ordinance simply moves the funds for the shop
design into its own fund where it can be better tracked and accounted for.
E
THIS PAGE IS INTENTIONALLY LEFT BLANK
Suggested by: Administration
CITY OF KENAI
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $2,000,64 IN THE GENERAL
FUND FOR GRANT FUNDS TO PROVIDE POLICE TRAINING TO PREVENT INTERNET
CRIMES AGAINST CHILDREN (ICAO).
WHEREAS, the Kenai Police Department is an active member in good standing with
the Federal Internet Crimes Against Children (ICAC) task force; and
WHEREAS, in late February of 2012 a Kenai Police Department sergeant traveled to
Houston, TX to attend forensic computer training; and,
WHEREAS the IC-AC regional director approved reimbursing the Kenai Police
Department for training costs ($2,000.64) upon completion of the training; and,
WHEREAS, the cost of this training was not included in the PY12 Police -
Transportation budget, and officers need to attend additional training for the
remaining half of the FY12 budget year; and,
WHEREAS, the Police Department is requesting appropriation of $2,000.64 to the
General Fund, Police Transportation account to cover the costs of the tratrung.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Police - Federal Grants $12,000.64
Increase Appropriations:
Police - Transportation $2,000.64
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4th day of April
2012.
PAT PORTER, MAYOR
ATTEST:
Sandra Modigh, City Clerk
Approved by Finance
Introduced: March 21, 2012
Adopted: April 4, 2012
Effective: April 4, 2012
New Te%-, Underlined. [DELETED TEXT BRACKETED]
10
t „Village w tk a Past, City with a Future"
210 Fidalgo Avenue, Kenai, Alaska 9 961 1 -7794 a�
Telephone: 907 -283 -75351 FAX: 907- 283 -3014 t��I
..m_. +997
tiw"c Yof
KENALRLA SKA
TO: Rick Koch — City Manager
FROM: Gus Sandahl — Police Chief
DATE: 3/14/12
SUBJECT: Request Ordinance 26620 -2012 appropriating anticipated
reimbursement funds from Internet Crimes Against Children
(ICAC)
For several years the Kenai Police Department has been a member of the internet
Crimes Against Children (ICAC), ICAC is a network of law enforcement agencies who
investigate intemet crimes against children. Participating agencies also provide
awareness and prevention education in the community. For several years, the ICAC
regional coordinator has received federal funding to disperse to participating law
enforcement agencies for ICAC training programs.
The ICAC regional coordinator in Anchorage has agreed to reimburse the Kenai Police
Department for forensic computer training that a sergeant attended in Houston, TX in
late February of 2012, The tuition and travel costs of this unbudgeted training totaled
$2,000.64.
The costs of this training resulted in a significant depletion of the training budget, and
officers still need to attend additional training for the remaining half of FY12.
I am requesting an ordinance appropriating $2,000.64 into the General Fund - Police
Transportation account.
11
� s
Suggested by: Administration
th rry f CITY OF KENAI
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $2,155.98 IN THE GENERAL
FUND FOR THE POLICE DEPARTMENT TO PURCHASE EQUIPMENT UTILIZING
ASSET FORFEITURE FUNDS PROVIDED TO THE CITY OF KENAI.
WHEREAS, the Kenai Police Department works cooperatively with the Alaska State
Troopers, Alaska Bureau of Alcohol and Drug Enforcement (ABADE) in statewide drug
enforcement efforts that directly impact the City of Kenai; and,
WHEREAS, in January 2012, the Kenai Police Department received $2,155.98 in asset
forfeiture funds from the State of Alaska ABADE unit; and,
WHEREAS, acceptance of the funds obligates the City to expend the funds for lain
enforcement; purposes only; and,
WHEREAS, to meet its obligation, the Police Department intends to purchase law
enforcement training equipment.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that estimated revenues and appropriations be increased as follows:
General Fund
Increase Estimated Revenues:
Forfeiture $2,155.98
Increase Appropriations;
Police - Small Tools $2,I55.98
PASSED BY THE COUNCIL OF THE CITY OF KENAI, _ALASKA, this 4Th day of April,
2012.
ATTEST:
Sandra Modigh, City Clerk
Approved by Finance:
PAT PORTER, MAYOR
Introduced: March 21, 2012
Adopted: April 4, 2012
Effective: April 4, 2012
Mew Text Underlined; [DELETED TEXT BRAG -TEDi
12
"'Village wA a Past, C# with a 546tre `
210 Ficialgo Avenue, Kenai, Alaska 99611-7794 U «W
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 1IIR
1992
TO: Rick Koch — City Manager
FROM: Gus Sandahl — Police Chief
DATE: 3114( ": 2
In January 2012, the Alaska State Troopers, Alaska Bureau of Alcohol and Drug
Enforcement (ABADE) made an Equitable Sharing payment in the amount of $2,155.98
to the Kenai Police Department. These funds were related to asset forfeitures from two
2011 drug investigations.
Per the U.S. Department of Justice Equitable Sharing Guide, equitable sharing funds
used by law enforcement shall be used for law enforcement purposes only. Permissible
uses of the funds include, but are not limited to, law enforcement investigations, training,
and equipment. We are permitted to purchase equipment which is used by law
enforcement personnel that supports law enforcement activities.
I am requesting an ordinance to appropriate these funds to the General Fund, Police -
Small Tools to help pay for police training equipment.
13
i
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
A BUDGET TRANSFER WITHIN THE GENERAL FUND, CLERK DEPARTMENT FOR
STAFF RECRUITMENT EXPENSES.
WHEREAS, in recruitment of the new City Clerk a. $7,500 relocation allowance was
provided that was not previously budgeted; and,
WHEREAS, the Clerk Department's Travel & Transportation account is insufficient to
absorb this unbudgeted expense:. and,
WHEREAS, excess funds have been identified in the Clerks usages, resulting from the
extended vacancy of the City Clerk pasiticn.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the following budget transfers be made:
From:
General Fund -- Clerk Department
Wages $7,500
To:
General Fund — Clerk Department
Travel & Transportation $7,500
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 4tn day of April,
2012.
PAT PORTER, MAYOR
ATTEST:
Sandra Modigh, City Clerk
Approved by Finance:,
New 7ext. Underlined; (DELETED TEXT BRACKETED;
14
Y y,�
i
N
t�
V''O fire 5if l of i/
ENAI, ALASKA
To: Rick Koch, City Manager
"'Ki llq e w tk a Past C# witk a "tune„
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 9961 1 -77 94
Telephone: 907- 283 -7535 ext 221 t FAX: 907 - 283 -3014
From: Terry Eubank, Finance Director
Date: March 28, 2012
Re: Resolution 2012 -2i Clerk Travel Budget Transfer
Recruitment expenses for the new City Clerk included a $7,500 relocation allowance that was
not previously budgeted. The allowance was paid for out of the Clerk's Travel & Transportation
account. The unbudgeted $7,500 has depleted the Clerk's travel Budget and eliminating the
availability for previously budgeted travel without additional funding. Excess funds have been
identified in the Clerks Wages, due to the extended vacancy in the City Clerk position.
Resolution 2012 -21 proposes a transfer of $7,500 from the Clerk Wages to the Clerk Travel &
Transportation account to replenish the department travel & transportation budget.
M
MARCH 20,2012
IM , IMNAI CITY COUNCIL
MAYOR PORTER,
MINUTES
ITEM A: CI, TO FINDER
A Special Meeting of the Kenai City Council was held on March 20, 2012, in
City Hall Council Chambers, Kenai, AK. Mayor Porter called the meeting to
order at 6:00 p.m.
A-1• Pledge of Allegiance
Mayor Porter led those assembled in the Pledge of Allegiance.
A -2. Roll Call
There were present:
Pat Porter, Mayor Ryan Marquis, Vice-Mayor
Terry Bookey Robert Molloy
Mike Boyle (arrived at 6:15 p.m.) Tim Navarre
Brian Gabriel
comprising a quorum of the Council..
d ' 4 1 {
Rick Koch, City Manager
Krista. Stearns, City Attorney
Sandra Modigh, City- Clerk
Council Member Bookey movED to approve the agenda and requested
F1NANMIOUS CONSENT. Council Member Molloy SECONDED the motion.
VOTE: There being no objections, SO ORDERED,
ITEM Es UNSCHEDULED PUBLIC COMMENTS
None
ITEM C: =CUTrVE SESSION
16
KENAI CITY COUNCIL MEETING
Much 20, 2012
Page 2 of 3
I
Council Member Navarre MOVED to enter into executive session regarding
subjects that tend to prejudice the reputation and character of any person,
provided the person may request a public discussion — City Manager Annual
Evaluation (AS44.62.310(c)(2)), and requested attendance of the City Manager.
Vice -Mayor Marquis SECONDED the motion.
VOTE:
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
Council entered executive session at 5:05 p.m.
Council Member Boyle entered the meeting at 6:15 p.m.
Council reconvened in open session at approadmately 9:40 p.m. Council
Member Navarre advised the City Manager Koch received a favorable evaluation
by Council.
I
Council Member Navarre MOVED to approve a 5% merit increase for the city
manager to be effective July 1, 2012 (Budgetary Fiscal Year 2013). Vice -Mayor
Marquis SECONDED the motion.
VEa i Et
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
There being no further business before the Council, the meeting was adjourned
at approximately 9:46 p.m.
17
KENAI CIPT COUNCIL MEETING
Alwch 20,20 12
Page 3 of 3
Minutes prepared and submitted bv:
Sandra Modigh; CMC
City Clerk
M.
THIS PAGE IS INTENTIONALLY LEFT BLANK
Wel
KENAI CITY COUNCIL - REGULAR MEETING
MARCH 21, 2 012
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
MAYOR. PAT PORTEI, PRESIDING
ITEM A: CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on March. 21, 2012, in
City Hall Council Chambers, Kenai, AK. Mayor Porter called the meeting to
order at 7:00 p.m.
A -2. Pledge of Allegiance
Mayor Porter led those assembled in the Pledge of Allegiance.
A -2. mall Call
There were present:
Pat Porter, Mayor Ryan Marquis, Vice -Mayor
Terry Bookey Robert Molloy
Mike Boyle Tim Navarre
Brian Gabriel
comprising a quorum of the Council.
Also in attendance were:
Austin Daly, Student Representative
Rick Koch, City Manager
Krista Stearns, City Attorney
Sandra Modigh, City Cleric
Mayor Porter read the following revisions to the agenda:
Adding to agenda item J -2: City Manager Report
0 Fire Department Mid. -Month Report
Adding to agenda item I: Mayor's Report
6 Volunteer Appreciation Dinner Budget
Moving agenda item G -3. Action / Approval - Assigsvnent of the Salamatof
Seafoods, Inc. Lease of Dock Facility and Adjoining Lands, as first item of
business under Public Hearings.
KENAI CITY COUNCIL RIEEnNG
March 21, 2012
Page 2 of 15
Imo„
Council Member Molloy MOVED to approve the agenda as amended and
requested UN LESS CONSENT. Council Member Bookey SECONDED the
motion.
VOTE: There being no objections, SO ORDERED.
A-4. Consent Agenda
*All items listed with an asterisk ( *) are considered to be routine and non -
controversial by the council and will be approved by one motion. There
will be no separate discussion of these items unless a council member so
requests, in which case the item will be removed from the consent agenda
and considered in its normal sequence on the agenda as part of the
General Orders.
s 1,
Council Member Bookey MOVED to approve the consent agenda and requested
UNANIMOUS CONSENT. Vice -Mayor Marquis SECONDED the motion.
VOTE- There being no objections, SO ORDERED.
ITEM E: SCHEDULED PUBLIC COMMENTS
None
ITEM C: UNSCHEDULED PUBLIC COMMENTS
None
ITEM D: PEByIC HE RxNGs
G -3. Action { Approval - Assignment of the Saiamatof Seafoods, Inc. Lease of
Dock Facility and Adjoining Lands.
Agenda item G -3 was moved from New Business under approval of the agenda.
MOTION:
Council Member Molloy MOVED to approve the Assignment of the Salamatof
Seafoods, Inc. Lease of Dock Facility and Adjoining Lands. Vice-Mayor Marquis
SECONDED the motion.
21
KENAI CITY CC'UNCIL MEETING
AAazch 21, 2012
P,zge 3 of 15
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, porter
NAY:
f Student Representative Daly: Yes
�0
D -14 Resolution No. 2012-18 _ Amending its Comprehensive Schedule of
Rates, Charges, and Fees "parks and Recreation Fees" to include a Senior
Discount for Boat Launch and Parking Fees at the City Dock.
>f �,
Council Member Bookey MOVED to approve Resolution No. 2012-18 and
requested UNANIMOUS CONSENT, Council Member Gabriel SECONDED the
motion.
Mayor Porter opened the floor for public comment.
Dwight :gainer, 230 North Fern Street, Kenai, spoke on behalf of the Kena
Fisherman's Coalition, in favor of Resolution No. 2012 -18.
There being no others in attendance wislUng to speak, public hearing was
closed,
r ar t �*
Council. Member Bookey MOVED to amend Resolution No. 2012 -18 by
correcting the fee of S20 for North & South Beach Parking and North it; South
Beach Overnight Camping to reflect S15 and to delete repeated language "North
Fw South Beach Overnight Camping" on page 2 of 2._ Council Member Molloy -
SECONDED the motion.
NOTE ON AMENDMENT: There being no objections, So ORDEpED,
Council Member Gabriel spoke in favor of Resolution No. 2012 -18,
Council Member Molloy spoke in favor of the resolution and noted the Harbor
Commission voted unanimously in favor of Council approval.
VOTE ON MAIN MOTION AS ENDED:
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
Student Representative Daly: Yes
WA
KENAI CITY COUNCIL MEETING
March 21, 2012
Page 4 of 15
D -2. Resolution No. 2012 -19 - Awarding a Contract to DBR Construction;
Inc. for the Project Entitled. Kenai Vintage Pointe Sprinkler Damage Repair 2012
for the Total Amount of 830,993.
MOTION:
Vice -Mayor Marquis MOVED to approve Resolution No. 2012 -19 and requested
UNANIMOUS CONSENT, Council Member Bookey SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
`TOTE: There being no objections, SO ORDERED.
ID -3. Resolution No. 2012-20 - Authorizing a Budget Transfer within the
General Fund - for the Purchase of a Wide - Format Scanner.
MOTION-
Council Member Molloy MOVED to approve Resolution No. 2012 -20 and
requested UNANIMOUS CONSENT. Vice -Mayor Marquis SECONDED the
motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
VOTE: There being no objections, SO ORDERED.
D -4. Ordinance No. 2610 -2012 - Amending Kenai Municipal Code
14.22.010, "Land Use Table," to Allow Bed and Breakfast in the Recreation _
Zone (R) as a Permitted Use instead of Requiring a Conditional Use Permit,
Council Member Gabriel MOVED to approve Ordinance No. 2610 -2012.
Council Member Navarre SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
r Student Representative Daly: Yes
W]
KENAI CITY COUNCIL 1>QEETING
March 21, 2012
Page & of 15
D -5. Ordinance No. 2611 -2012 - Amending Section 14.20.150, "Conditional
Use Permits," to Expand the Authority of the Planning &, Zoning Commission to
Consider Requests for Extensions of Permits in Situations Where the
Conditional Use Permit has Lapsed or Expired Due to Non -Use; to Extend the
Time for Extensions from 6 Months to up to One (1) Year Each; and, to Provide
an Express Appeal Process.
ft!f�3r 'm�[�iRl
Council Member Molloy MOVED to approve Ordinance No. 2611 -2012. Vice -
Mayor Marquis SECONDED the motion.
Mayor Porter Opened *uae floor for public comment, t=here being none public
comment was closed.
Council Member Molloy provided background on the ordinance and outlined the
proposed code revisions. Additionally, Council Member- Molloy spoke in favor of
the ordinance.
VOTE:
YEA: Bookey, Hoyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
* Student Representative Daly: Yes
D -6. Ordinance No. 2612 -24112 - Amending Section 14.20.145, "Recreation
Zone (R)," to Incorporate Changes to the Land Use Table "Y' TC 14 22.010)
-
Regarding this Zoning District for Purposes of Consistency and to Make Format
Changes for Purposes of Uniformity within the Kenai Zoning Code, KMC 14.20.
MOTION-
Council Member Bookey MOVED to approve Ordinance No. 2612 -2012. Vice -
Mayor Marquis SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
K11
KENAI CITY COUNCIL MEETING
M=h 21, 2012
Page 6 of 15
* Student Representative Daly: Yes
MOTION MASSED UNANIMOUSLY.
ID -7. Ordinance No. 2613 -2012 — Amending Kenai Municipal Code Section
1.25.020, "Duties," to Include the City Clerk as Parliamentarian to the City.
MOTION:
Vice -Mayor Marquis MOVED to approve Qrdinance No. 2613 -2012. Council
Member Gabriel SECONDED the motion.
Mayor Porter opened the floor for public comment.
Linda Murphy, 325 Fairway Circle; Soldotna, expressed concern about
revisions made to the city clerk position description drafted while she was
contracted by the City for the clerk recruitment process. Mrs. Murphy further
spoke in favor of Ordinance No. 2613 -2012.
There being no others in attendance wishing to speak, public hearing was
closed.
Mayor Porter spoke in favor of Ordinance No. 2613 -2012.
Council Member Bookey spoke in favor of the ordinance for clarity purposes
and thanked all for research completed on the topic.
Council Member Molloy thanked the City Clerk and City Attorney for completing
the requested research. and further spoke in opposition of the ordinance as
drafted and its unintended consequences. Additionally, postponement of the
ordinance and scheduling a work session was recommended.
Council Member Navarre spoke in "support of Ordinance No. 2613 -2012 and
questioned references made to inaccuracies of the ordinance.
Council Member Gabriel spoke in favor of Ordinance No. 2613 -2012 on the
basis of continuity and thanked the City Attorney and City Clerk for their
collaboration on the provided research and memorandum.
Vice -Mayor Marquis expressed neither favor nor opposition of the ordinance as
the Council and City would benefit from either employee as parliamentarian
advisor.
VOTE:
YEA: Bookey, Gabriel, Marquis, Navarre, Porter
NAY: Boyle, Molloy
25
ICENAI CITY COUNCIL MEETING}
March 21, 2012
Page 7 of 15
* Student Representative Daly: Yes
s:
D -S. Ordinance Pao. 2614-2012 - Amending Kenai Municipal Code Sections
I_ 15.120, "Rules of Order" and 1.90.050, "Proceedings," to Adopt Robert's Rules
of Order Newly Revised, I Itr. Edition, as the Rules of Parliamentary Procedure
for the City Council and for City Boards, Commissions, and Committees.
MOTION:
Council Member Bookey MOVED to approve Ordinance No. 2614 -2012. Vice -
Mayor Marquis SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
Council Member Bookey thanked the City Attorney and City Clerk for bringing
the ordinance forward.
Council and the City Attorney discussed revising the language of the ordinance .
whereby the most current edition of "Robert's Rules of Order" would be adopted
as procedure without additional ordinances. The City Attorney advised against
doing such for legal purposes.
VO E'E:
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
* Student Representative Daly: Yes
MOTION PASSED Iii\ANIMOUSLY.
D -3. Ordnance No. 2515 -2012 - Increasing Estimated Revenues and
Appropriations in the General Fund and Congregate Housing Enterprise Fund
for Insurance Proceeds and Federal /State Emergency Management Funds for
the Repair of City Facilities Damaged During the Severe Winter Storm on
November 16, 2011.
Council Member Bookey MOVED to approve Ordinance No. 2615 -2012.
Council Member Gabriel SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
4:1
KENAI CITY COUNCII, MEETING
Ma=h 21, 2012
Page 8 of to
Mayor Porter thanked the City Manager and administration for applying for the
reimbursement funding.
Vice -Mayor Marquis noted the state of Illinois was denied the Disaster
Declaration Funds.
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
t Student Representative Daly: Yes
D -10. Ordinance No. 2616 -2012 - Increasing Estimated Revenues and
Appropriations in the Airport and Airport Improvement Capital Project Fund for
the Obstruction Tree Removal Project.
Council Member Bookey MOVED to approve Ordinance No. 2616 -2012.
Council Member Gabriel SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
VOTE.
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy; Navarre, Porter
NAY:
* Student Representative Daly: Yes
MOTION PASSED UNANIMOUSLY.
D -11. Ordinance No. 2612 -2012 - Amending Kenai Municipal Code Section
23.25.060, "Overtime," to Clarify the Overtime Rate Paid to Temporary
Employees and Making Technical Corrections.
Council Member Gabriel MOVED to approve Ordinance No. 2517 -2012.
Council . Member Navarre SECONDED the motion.
Mayor Porter opened the floor for public comment, there being none public
comment was closed.
M
KENAI CITY COiJNCIL MEETING
Much 21, 2012
Page 9 of 15
Citv Finance Director Eubank provided Council a summary On the ordinance
advising of clean up and corrections of code in accordance with Fair Standaxd
Labor Act (FSL4).
Council and administration discussed the details of the ordinance further and
the financial impact on the City and disbursement of information to employees.
Council Member Boyle spoke in opposition of the ordinance as drafted
specifically opposed to eliminating the current overtime pay rate of holiday
compensation.
Student Representative Daly reiterated the bookkeeping aspect of the ordinance
and requested consideration of the financial impact although minimal.
Mayor Porter spoke in favor of the ordinance and noted the City's responsibility
to the employees as well as citizens j tar payers of the community.
Council Member Molloy expressed the difficulty in the decision but spoke in
support of the ordinance.
City Manager Koch advised that the legislation was clarification of an issue
within code and was not intended as a derogatory or negative action against
employees.
VOTE:
YEA: Marquis, Molloy, Navarre, Porter
NAY: Bookey, Boyle, Gabriel
Student Representative Daly: Yes
MOTION PASSED.
D-12. Ordinance No. 2639 -2012 increasing Estimated Revenues _ and
Appropriations by 831,000 in the General Fund for the Police Department to
Purchase a Ford F -150 and Accompanying Police Accessories from insurance
Proceeds to be Received from the At Fault Driver's Coverage.
MOTION.-
Council Member Bookey MOVED to approve Grdinance No. 2518 -2012.
Council Member Gabriel SECONDED the motion,
Mayor Porter opened the floor for public ccmment, there being none public
comment was closed.
W.
IaNAI CITY COUNCIL MEETING
March 21, 2012
Page 10 of 15
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre, Porter
NAY:
' Student Representative Daly: Yes
D -13. *Approval of Liquor License Renewals
• Matson Winery & Supply (License # 4676)
• George's Casino Bar (License #204)
Approved on the consent agenda.
ITEM E: MINUTES
E -1. *Work Session. Notes of February 1.5, 2012
E-2. *Work Session Notes of February 21, 2012
E-3. *Regular Meeting of March 7, 2012
Approved by consent agenda.
ITEM F: UNFINISHED BUSINESS
None
ITEM G: NEW BUSINESS
G -1. ,: ction /Approval — Bills to be Ratified
MOTION:
Council Member Bookey MOVED to ratify payments of bills over $15.000 and
requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the
motion.
VOTE: There being no objections,. SO ORDERED.
G -2. Action /Approval —Purchase Orders Exceeding $15,000
Council Member Bookey MOVED to approve purchase orders exceeding
$15,000 and requested UNANIMOUS CONSENT. Council Member Gabriel
SECONDED the motion.
City Manager Koch provided an update on the water treatment facility and
production well.
29
KEN CITY COUNCIL MEETING
March 21, 2012
Page 11 of 15
VOTE: There being no objections, Sal ORDERED.
Agenda item G -3 was moved to first order of business under public hearings by
approval of the agenda.
Council took a brief recess.
G-4. *Ordinance 2619.201.2 - Decreasing Estimated Revenues and
Appropriations h7 the Streets, Water, and Sewer Capital Project Fund and
Increasing Estimated Revenues and .Appropriations in the City Shop Capital
Project Fund for the Schematic Design of a New City Shop Utilizing Grant
Funds from the State of Alaska for the Project.
Introduced by consent agenda; public hearing scheduled on April 4, 2012
C -S. *Ordinance 2620 -2012 - Increasing Estimated Revenues and
Appropriations by $2,000,64 in the General Fund for Grant Funds to Provide
Police Training to Prevent. Internet Crimes Against Children (ICAC).
Introduced by consent agenda; public hearing scheduled on April 4, 2012.
G -6. *Ordinance 2621 -2012 - increasing Estimated Revenues and
Appropriations by 8;2,155.98 in the General Fund for the Police Department to
Purchase Equipment Utilizing Asset Forfeiture Funds Provided to the City of
Kenai.
Introduced by consent agenda; public hearing scheduled on April 4, 2012,
Council Member Molloy MOVED to reconsider the vote on Ordinance No, 2617-
2012 Council Member Bovie SECONDED the mot on.___
YEA: Bookey, Boyle, Gabriel, Marquis, Molloy
NAY: Navarre, Porter
' Student Representative Daly: No
Council Member Molloy spoke in opposition of the ordinance and recognized the
City's support of its employees.
Council Member Navarre recommended postponement of the ordinance allowing
time for additional research if necessary and spoke in favor of the ordinance.
30
kZNh? CITY COUNCIL MEETING
March 21, 2012
Page 12 of 15
Vice -Mayor Marquis spoke in favor of Ordinance No, 2617 -2012.
Council Member Boyle reiterated his concerns regarding Ordinance No. 2617 -
2012 and spoke in opposition of approval.
Mayor Porter spoke in favor of administration bringing this to the attention of
Council and in support of Ordinance No. 2617 -2012.
Council Member Gabriel noted his original support of the ordinance and
minimal financial impact on the City; further spoke in opposition of approval.
VOCE:
YEA: Marquis, Navarre, Porter
NAY: Bookey, Boyle, Gabriel, Molloy
Student Representative Daly: Yes
MOTION FAILED.
City Manager Koch advised of administrations intent to revise the ordinance for
review at a later date.
ITEM H: COMMISSION /CO TTEE REPOIZTS
R -1. Council on Aug - Vice -Mayor Marquis advised the next meeting is
scheduled on Thursday, April 12th and reminded all of the March for
Meals event of March 22nd.
Ei -2. Airport Commission - Council Member Gabriel commented on the
amount of snow accumulated at the airport and advised next meeting
was scheduled on Thursday, April 121h._
H -3. Harbor Commission. - Council Member Molloy advised the following was
discussed at the March 12, 2012 meeting:
• Resolution on senior discounts
• Assignment of the Salamatof Seafoods, Inc. Lease
• Alaska gas fuze
• Next meeting scheduled on April 9, 2012
H -4. Library Commission - Council Member Boyle had no comment.
Mayor Porter noted two Library Commission vacancies.
E -5. Parks and Recreation Commission - Council Member Bookey had
nothing to report.
31
KENAI CITY COUNCIL MEETING
Maz ch 21, 2012
Page 13 of 15
H -6. Planning Commission - :Mayor Porter advised she attended the
commission. meeting in Council. Member Navaxre's absence and reported
on the following:
* Comprehensive Plan Update
H -7. Beautification Committee - Mayor advised the committee has not met
since the last city council meeting.
ITEM I: RE?'OI?T OF TEM lYIkL3?OR
Mayor Porter reported on the following:
* Interview- with Swedish newspaper
* Welcomed American Legion Representatives to community
* March for Meals Proclamation at Chamber of Commerce luncheon
* Mayors Across the Nation -- delivered meals for seniors
* Volunteer Appreciation Dinner Budget
Vice -Mayor Marquis MOITED to approve a budgeted amount of '$4,000 for the
Volunteer Appreciation Dinner and requested UNANIMOUS CONSENT, Council
Member Molloy SECONDED the motion.
VOTE- There being no objections, SO ORDERED.
ITEM J:
J -Z. City Manager reported on the following:
* Senate Bill 162 testimony through Legislative information
Office
Fibrosis truck and equipment related to vibration study
Vice -Mayor Marquis thanked administration and the Parks & Recreation
Department for the upkeep and maintenance of the skate pond at Daubenspeck
Park.
J -2. City Attorney reported on the following:
• Out of office March 23 £c, 24
• Two successful months of traffic ticket convictions; thanked City
Police Officers
• CINGSA oral argument postponed
® Looks forward to continuing to work with the City C+_erk on legal
and parliamentary matters after effective date of ordinance 2613-
2012
J -3. City Clerk had nothing to report.
32
KENA] CITY COUNCIL MEETING
March 2I, 2012
Page 14 of 15
ITEM II: ADDITIONAL PUBLIC COMMENT
K -1. Citizens Comments
Thomas Italy, 106 Beep Foods, Kenai, reminded Council of public testimony
being held at the Legslasve Information Office on Senate Bill 23 relating to
transferable film production tar, credits and film production tax credit
CBrtificates.
City Manager Koch advised Council, pursuant to code, that current lessee
Russell Winger, submitted a lease application for renewal; administration
recommends approval. Application for renewal is scheduled for review by the
Planning & Zoning Commission at its March 28t!, meeting.
K -2. Council Comments
Council Member Navarre encouraged all to attend the March for Meals event.
Council 'Member Gabriel advised of new City email account established for all
city business correspondence.
Council Member Eookey had nothing to report.
Student Representative Daly reported students are getting back into the
swing of things after sprin.- break.
Mice -Mayor Marquis had no comment.
Council Member Molloy had no comment.
Council Member Boyle had no comment.
ITEM L: EXECUTIVE SESSION - None
ITEM N: PENDING LEGISLATION (This item lists Legislation which will be
addressed at a later date as noted.)
M -1. Ordinance No. 2597 -2011 - Amending Kenai Ntunicipal Code
14,22.010, Land Use Table, to Make Comprehensive Changes to the Uses
Allowed in the Suburban Residential (RS), Suburban Residential 1 (RS1),
Suburban Residential 2 (RS2), Rural Residential (RR), Rural Residential RR -1,
and the Urban Residential (RU) Zoning Districts.
(Cleric's Note: At its November 16, 2011 meeting, the Council postponed
Ordinance No. 2597 -2011 to the August 1, 2012 meeting and the ordinance was
33
KENW AI CITY CQUNC IL MFF :nNG
March 21, 2012
Page 15 of 15
referred back to the Planning and Zoning Commission so the Commission could
continue to consider the changes proposed in this work product during the
Comprehensive Plan, process.)
ITEM XS ADJOTJ
here being no further business before the Council, the rneetin8 was adjourned
at approximately 8:39 p.m.
Minutes prepared and submitted by:
Sandra Modigh, CMC
City Clerk
*The student representative may cast advisory votes on all matters except those
subject to executive session discussion. Advisory votes shalt be cast in, the
rotation of the official council vote and shalt not affect the outcome of the official
council vote. Advisory votes shall be recorded in the minutes. A student
representative may not move or second items during a council meeting.
01
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39
Y
""Villa wieliaPaSeCi�ywiekaFa�"re"'
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -75361 FAX: (907) 283 -3014
www.d.kenai.ak.us .d.kenai.ak.us kLITiii
�H4 .pICOCMY
?C1:I1
TO: Kenai City Council
FROM: Christine Cunningham, Assistant to City Manager 041
THROUGH: Rick Koch, City Manager
s
DATE: March 28, 2012
SUBJECT: Special Use Permit, Buccaneer Alaska Operations, LLC
The purpose of this memo is to provide additional information in support of the attached
Special Use Permit to Buccaneer Alaska Operations, LLC. (Buccaneer).
The property subject to the permit is located on Airport Land located outside the Airport
Reserve in the proposed Kenai Industrial Park Subdivision on Marathon Road. Buccaneer has
operated at this location under a previous Permit approved by the City Council at its March 2,
2011 Council Meeting. That non - exclusive Permit expired on March 1, 2011
The City of Kenai Planning Commission approved a Conditional Use permit for Buccaneer for
the extraction of natural resources at this site on January 26, 2011, and the permit continues
as long as the use does not cease for an extended period of time. Since issuance of the
original Permit, Buccaneer has installed an access road, gravel pad, production facilities and a
flowline for the Kenai Loop No. 1 Well.
Buccaneer has submitted a Lease Application to lease the property for future drilling and
production facilities for a term of 20 years. The application has not yet been accepted as
complete pending additional information to be submitted by Buccaneer as well as a formal
response from the FAA releasing the land for the purpose of lease for non- aviation utilization.
The City Attorney has reviewed the attached Special Use Permit and has no objection as to
form, Should the City Council approve the Permit, Buccaneer will be able to continue to utilize
the property while its lease application is pending review.
Attachments
cc: Mark Landt, Buccaneer Alaska Operations, LLC
,WI
SPECIAL USE PER -MIT
THE CITY OF KENAI. (City) for the consideration, and pursuant to the conditions and
requirements set forth below, hereby grants the right to use the Premises, identified in
Exhibit A to this Permit, which exhibit is incorporated herein by reference in its entirety,
to BUCCANEER ALASKA OPERATIONS, ULC:
I. Term. Permittee shall have a non - exclusive use of the Premises for a term of one
year, to commence on the I" day of March, 2012, and to end on the 28`h day of February,
2013.
2. Premises. The Premises subject to this Permit is identified in Exhibit A, page
and is further described as:
A parcel of land for access and exploratory drilling located north of the fire
training facility off Marathon Road on City of Kenai lands situated in the unsubdivided
portion of the NW 1/4 Section 33,Township 6 North, Range 11 West, Seward Meridian;
all located within the Kenai Recording District -(KN), Third Judicial District, Stage of
Alaska, and more particularly described as follows (courses and distances are Alaska
State Plane Zone 4):
Commencing at the northwest corner of Tract A-1 -A Baron Park Subdivision Fire
Addition KN 97 -51 on the easterly right -of -way line of Marathon Road,
Thence Course N 7 °26'03 "E Distance 343.38 ft. along said right-of-way line to the Point
of Beginning, being Corner No. 1;
Thence Coarse N 89 °23'34 "E Distance 338.64 ft. across City of Kenai Land to Corner
No. 2;
Thence Course S 0 °36'26 "E Distance 340.00 ft. across City of Kenai land to a point of
intersection on the northerly boundary of said Tract A -1 -A being Corner No. 3;
Thence Course N 89'23'34 "E Distance 500.00 ft. across City of Kenai land along the
northerly boundary of said Tract A -1 -A to Corner No. 4;
Thence Course N 0'36'26"W Distance 400.00 ft. across City of Kenai to Corner No. 4
Thence Course S 89 °23'34 "W Distance 830.16 ft. to a point on the easterly right -of -way
line of Marathon Road being Corner No. 6;
Buccaneer Alaska Operations, LLC
Special Use Permit
L: \Agts \B uccaneer \buccaneer. SUP .03 2812
M
Page 1 of 7
Thence Course S 726'03"W Distance 60.65 ft, along said right -of -way Iine to the Corner
No. It the Point of Beginning thus embracing Area: 5.05 Acres (226,064 sq. ft.)_
3, Ilse. The permitted, use is to construct approximately 550 lineal feet of access
road, a 400' x 500' drill pad, drill Kenai Loop #1 Well and production and compressions
facilities for the sale of natural gas_ This use is more specifically described in the "Plan of
Operations in the attached Exhibit A. and all such uses are subject. to Permittee applying
for and obtaining all required permits for such activities and to Permittee observing all
conditions and requirements of said permits.
The use of the Premises is limited to the purposes specified. This use is also subject to the
administrative actions of the City of Kenai for public safety and the protection of
maintenance of Premises and of adjacent and contiguous lands or facilities.
4. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, permits, certificates, and other documents required for its
operations under the Permit and/or as described in Exhibit A. Permittee shall provide
proof of compliance, to the City upon request by the City.
5. No Exclusivity. The use by the Permittee of the Premises is Iimited to the uses
said purposes specified herein and the Permits is not intended to grant any exclusive use
to the described Premises except as otherwise provided herein. This use is also subject to
the reasonable administrative actions of the City for the protection and maintenance of
the Premises and of adjacent and contiguous lands or facilities.
Without limitation of the foregoing, Permittee expressly recognizes and has notice that
the access road to be constructed on the Premises by Permittee may be used by the City
and the City's designees.
6. improvements. improvements described as the access road and drill pad shall
remain in place following the term of this Permit and shall become the property of the
City.
7. Permit Fees. Permittee small pay a monthly fee of 51,333.33, plus applicable
sales tax. This fee is computed based upon the following calculation: 200,000 s.f. x $1.00
s.f. / 8% annual fee 112 months). The fee shalt be due on or before the first day of each
month beginning March 1, 2012.
Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai
and delivered to the City Administration Building, Kenai, Alaska, 210 Fidalgo Ave.,
Kenai, Alaska 99611.
Buccaneer Alaska Operations, LLC
Special Use Permit
L:;Agts' Buccaneer \buccaneer. SUP, 032812
42
Pane 2 of '7
Permittee further agrees to pay to the appropriate parties all levies, assessments, and
charges as hereinafter provided, including but not limited to sales tax now enforced or
levied in the future and computed upon fees due, with sales tax due in monthly
installments at the same time Permit Fees are due.
Permittee shall pay and be liable for interest at the rate of eight percent (8 %) per annum
and penalties of ten percent (10 %) of the amount due, on any amount of money owed
under this Permit which is not paid on or before the date it becomes due.
8. Insurance. Permittee, at the expense of the Permittee, shall provide insurance
covering its activities on and /or in any way arising out of its use of the Premises.
Permittee shall provide insurance coverage of the following types and minimum coverage
limits. If Permittee's policy(ies) contain(s) higher limits, the City shall be entitled to
coverage to the extent of the higher limits:
Commercial General Liability including premises, all operations, property damage,
personal injury and death, broad -form contractual, with a per - occurrence limit of not less
than S1,000,000 combined single limit.
Commercial Automobile Coverage with not less than $1,000,000 combined single limit
per occurrence. This insurance must cover all owned, hired, and nonowned motor
vehicles the lessee uses.
Workers' Compensation Insurance for all Permittee's employees, coverage as required
under AS 23.30.045, and, where applicable, any other statutory obligations. The policy
must waive subrogation against the City.
Products and Completed Operations Liability Insurance, Permittee shall provide
Products and Completed Operations Liability insurance in at least the following coverage
limits:
4 5100,000 bodily injury combined single limit per occurrence;
$300,000 bodily injury aggregate; and,
® 5100,000 property damage combined single Iimit per occurrence.
All of the policies required above shall be issued by a company /corporation currently
rated "A - "or better by A.M. Best.
With respect to the policies of insurance listed above, Permittee shall provide the City
with proof of insurance coverage in the form of an insurance policy or a certificate of
Buccaneer Alaska Operations, LLC
Special Use Permit
L :�Agts \Buccaneer \buccaneer. SUP. 0328;2
43
Page 3 of 7
insurance, together with proof that the premiums have been paid, showing the types and
monetary limits of coverage secured. Permittee shall provide this proof of insurance to
the City (attention to the City Manager) prior to beginning any activities on the Premises.
All insurance must provide that the City be notified at least 30 days prior to any
termination, cancellation, or material change in the insurance. coverage. All policies shall
name the City as an additional insured.
If Permittee subcontracts any work on the Premises, all of its subcontractors shall be
subject to the same insurance requirements. Permittee shall identify its subcontracts and
provide the same evidence of insurance coverage to the City prior to the subcontractor
performing work.
9. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT.
Permittee agrees to fully indemnify, defend, and save harmless, the City of Kenai, its
officers, agents, employees, and volunteers from and against all actions, damages, costs,
liability, claims, losses, judgments, penalties, and expenses of every type and description,
including any fees and /or costs reasonably incurred by the Citv's staff attorneys and
outside attorneys and any fees and expenses incurred in enforci g this provision
(hereafter collectively referred to as "Liabilities"),, to which any or all of them may be
subjected, to the extent such Liabilities are caused by or result from any negligent act or
omission or willful misconduct of the Permittee in connection with its use of the
Premises. This shall be a continuing release and shall remain in effect after termination of
this Special use Permit.
10. Mutual Cancellation. This permit may be cancelled in whole or in part by either
party with one ( 1) calendar month wTitten notice.
11. No Alcohol. No possession or consumption of alcoholic beverages is permitted
on the Premises.
12. No Joint Venture. The City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises.
13. Personalty. Any or all personal property placed or used upon lands or in facilities
may be removed and/or impounded by the City, and when so removed and/or impounded.
such property may be redeemed by the owner thereof only upon the payment to the City
of the costs of removal plus its storage charges. The City of Kenai is not responsible for
any damage to or theft of any personalty of Permittee or its invitees to the Premises.
14. Assumption of Disk. Permittee will provide all proper safeguards and shall
assume all risks incurred in its use of the Premises.
Buccaneer Alaska Operations, LLC
Special Use Permit
L \Aaa-ts \Buccaneer \buccaneer.8UP.032812
44
Page 4 of 7
15. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such teens, conditions, or requirements.
16. No Discrimination. Permittee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or
State law. Permittee recognizes the rigjit of the City to take any action necessary to
enforce this requirement.
17. Contact Information. The Contact: information for the Permittee, and the person
in responsible charge for Permittee during the term of the Permit, for purposes of
notice and all communications from City to Permittee is:
Mark Landt
Buccaneer Alaska Operations, LLC
952 Echo Lane
Houston, Texas 77024
Message Phone: 281 .768.7650
Fax: 832.201.7495
The Contact information for the City, and the person in responsible charge for
Permittee during flee term of the Permit, for purposes of notice and all
communications from Permittee to the City is:
City Manager
210 Fidalgo Avenue
Kenai, AK 99611
Phone: 907.283.8223
Fax: 907.283.3014
Email: rkoch@ci.kenai,ak,us_
18. Authority. By signing this Permit, Permittee represents that it has read this
agreement and it agrees to be bound by the terms and conditions herein and that the
person signing this Permit is duly authorized by the organization to bind the organization
hereunder.
19. Effective Bate. This agreement is effective revroactive to March 1, 2012
iSIG1VA'IL MES PAGES FOLLOW]
Buccaneer Alaska Operations, LLC Page 5 of 7
Special Use Permit
L \Agts\Buccaneer \buccaneer. SUP.032812
45
CITY OF KENAI
By:
Rick K. Koch
City Manager
BUCCANEER ALASKA
OPERATIONS, €,LC
By:
Mark R. Landt
Vice President of Land and
Business Development
STATE Or ALASKA
ss
THIRD JUDICIAL DKSTRJCT )
The foregoing instrument was acknowledged before me this _ day of
2012, by Rick Koch, City Manager of the City of Kenai, an Alaska municipal
corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
Buccaneer Alaska Operations, LLC
Special. Use Permit
L: \AgtslBuccaneer \buccaneer. SUP.032812
-0
Page G of 7
STATE OF ALASKA }
) ss.
TPIIP�D .JUDICIAL DISTRICT }
The foregoing instrument was acknowledged before me this _ day of
2012, by Mark R. Landt, Vice President of Land and Business Development, of
Buccaneer Alaska, LLC, an Alaska limited liability company, on behalf of the Company.
Notary Public for Alaska
My Commission Expires:
Approved as to form:
Krista S_ Steams
City Attorney
Buccaneer Alaska Operations, LLC Page 7 of 7
Special Use Permit
L:'Agis \B uccaneer\buccaneer.S UP.032812
47
PLANT OF OPERATIONS
NCI LOOP PROSPECT
EXPLORATION PROGPZAM
NCI PENINSULA, ALASKA
Preparedfor
Buccaneer Alaska Operations, LLC
Houston, Texas
Prepared by
Northern Consulting Group
-knehoracre, Alaska
January, 4, 2011
�x�t�rr dk
m
Table of Contents
1. Permit Requirements ....................... ............................... I
Overview and Timetable 2
3. Well Site Access ............................. ............................... 2
4. Drilling ......................................... ............................... 2
4.1 General ................................... ............................... 2
4.2 Support . Facilities ....................... ............................... 3
4.3 Testing anal Surveys .................... ............................... 3
5. Water Requirements and Sources ........ ............................... 3
6. Waste and Emissions ........... ................. ........... .......:.... ... 4
6,1 Brining Jastes ....................... ............................... 4
6.2 Non- Drilling lVastes ................. ............................... 4
6.3 Produced Fluids ....................... ............................... 4
6.4 Air Emissions ......................... ............................... 4
7. Well Abandonment and Site Closure ... ............................... 5
S. Environmental Issues and Contingency Plans 5
8.1 Wildlife, Issues ........................ ............................... 5
8.2 Oil Spill Contingency Plans ........ ............................... 6
8.3 HistoricaL Archaeological and Cultural Resources ............. 6
9.
Communication and Supervision ......... ............................... 5
10. Training_ ................................. .. ......... ........ ........... 6
11. Public involvement .......................... ............................... 7
List of Figures
Figure 1. Location Map for Kenai Loop Well Sites . ............................... S
Figure2. Figure 2. Well Pad Layout.................. ...... ............................... 9
Figure 2. Figure 3. Kuukpik Rig 5 Layout .............. ............................... 4
EXHIB r
page—
Plan of Operations, Page i .Taauaryy 4, 201'
M,
Permit Reauirements
The Plan of Operations describes drilling operations proposed by Buccaneer Alasica
Operations, LLC ( "Buccaneer ") at their Kenai Loop prospect and adjacent leases located
northeast of Kenai on the Kenai Peninsula in Southcentral A lasica. These operations
require developing plans and obtaining permits and approvals from the following
agencies/organizations:
United States of America
Federal Aviation Administration
Obstruction Evaluation /.kirport Airspace Analysis
State of Alaska
Alaska Department of Natural Resources (A.DNR)
Division of Coast al and Ocean Mafin2gernent (DCOAT)
Coastal Project Questionnaire
- Project review is required for coastal zone consistency
Mental Health 'Trust Land Office
Lease Plan of Operations
- Required to conduct the drilling operations
Alaska Department of Environmental Conservation (A DEC)
® Minor General Air Quality Permit
- Rig-specific permit is required
Authorization for Temporary Storage of Drilling Waste
Pe., Tit required tempora �; storage of drilling wastes on site
Oil Diseliarge Prevention and Contingcncy Plan
- New plan to be submitted for oil drilling operations
............_..
w Certificate of Financial Responsibility
- Certificate to be obtained
Alaska wit & Gas Conservation COmmissiara (A€ GCC)
Applications for Permit to Drill and Sundry Notices
- Required for each well
Renal
City of Kenai
® Oil and Gas W111 Permit
Plan of Operations Page I.
M
5annarp4,2011
2e Overview and Timetable
Buccaneer proposes to drill two or more wells into Mental Health Trust Land Office
(TLO) oil and gas Ieases located within the Cit,- of Kenai on the Kenai Peninsula. The
general timetable for various activities are outlined as follow:
0 October to December 2010 - Conduct drilling site evaluation
® December 2010 to January 2011 - Prepare and submit permits for project
e January 2011- Obtain permission from land owners to construct a 500 foot long
access road to the Kenai Loop Well #1 location.
January to March 2011 - Obtain permits and mobilize equipment and materials for
drilling the Kenai Loop #I Well .
® February 2011 - Construct a gavel access road and pad next to the Marathon Road
to drill the Kenai Loop Well #1.
® March to April 2011 -Drill the Kenai Loop Well # 1.
Additional wells and full scale development of the Kenai Loop Field will occur if the
field is determined to be commercial.
Well Site Access
The site is located approximately, 0.5 mile up the Marathon Road and on undeveloped
land, on the east side of the road. The Kenai Loop Well # 1 will require a 500 ft long
gravel access road to get to the well site which will be on a gravel pad.
40 DrillinZ Operations
4.1 General
The wells will be drilled using; the Kuuk ilk Rig #5 or equivalent, drilling rig, The
planned well design will be similar to that employed in previous Cook Inlet exploration
wells and in accordance with a. Permit to Drill from the Alaska fail and Gas Conservation - -
Commission (AOGCC). Due. to the exploratory nature of the well, nearly all information
regarding the down hole aspects of the well is confidential.
The gavel pad for the wells will be approximately 400 ft by 500 ft. The access road will
be constructed of gravel and will be about 30 feet wide.
Subsurface ownership for all areas to be drilled is held by State of Alaska Mental Health
Trust Land Office. Surface ownership for the Kenai Loop Well 41 is held by the City of
Kenai.
plan of Operations Page 2 Jam:ary 4, 2011,
Buccaneer will acquire the required State Oii and Gas -Fronds for the proposed drilling
operations.
4.2 Sunnort lfaeiiities
The drilling pad will include the drilling rig, office building, warn and cold storage
areas, and maintenance, buildings.
The onsite office will contain housing for several personnel including the Drilling
Supervisor and the Too'lpusher. All other drilling personnel will be housed offsite. in
existing facilities a «ailable localiv.
tip to 107000 gallons of diesel fuel may be stored at the drilling site in lined, berrned fuel
storage areas. Fuel will be re- supplied to the site from existing total suppliers.
Communications systems will be installed in the camp buildings.
4.3 Testin :earl Sia -vevs
Production tests may be performed as needed after production casing is set. Testing may
include extended flow periods to determine the productivity of the well. Testing will be
accomplished in accordance with approved techniques.
Vertical seismic profiles (VSPs) may be acquired using off road capable vibroseis trucks.
These operations will generally occur within a 2 -mile radius of the surface location of the
well.
5. Water Re€pu.iremeuts and Sources
Fresh water is needed primarily for drilling operations. Normal water requirements are
expected to be less than i,000 gpd except when mixing new drilling mud in which case
10,000 gad may be required.
Water will be provided from the City of Kenai who has a water hydrant located across
Marathon Road near the drilling location. New sources of water are not required.
s;
p
Plan of Operations Page 3 January 4, 2011
52
Wastes and Emissions
6.1 Drilling Wastes
An estimated ?,000 bbl of water based drilling mud and cuttings may be <renerated from
the operations. 'Waste drilling mud and. cuttings may either be injected into existing wells
in the area or be hauled to existing offshe facilities for disposal.
Prior to hauling, the cuttings and liquids will be temporarily stored in onsite containers
either on the well site or at the staging areas, 'out in either case storage will be in
compliance with ADEC temporary storage permits. All wastes will be disposed of prior
to completion of the operations.
6.2 Non- Drilling Wastes
Solid, non - burnable waste will be deposited in dumpsters located at the site. These
containers will be hauled to local landfills for disposal. The food waste that could attract
wildlife either will be stored in enclosed containers awaiting periodic hauling, or such
wastes will be hauled each day to an approved disposal center.
To reduce the amount of trash that must be hauled from the drilling location, all solid,
burnable waste may be incinerated at the location in accordance with 18 AAC 50. The
ash will be hauled to the existing landfills.
Limited wastewater generated onsite will either be treated and disposed of onsite in
accordance with federal /state permits or be hauled to an approved disposal facility
locally. The drilling operations should generate less than 1,000 gpd of domestic
wastewater.
6.3 Produced ed;Fluids
All fluids from production testing will be held in tanks until the testing is completed.
After testing, the fluids will either be injected back into the formation from which it
produced or hauled to Nikiski oil and gas production facilities for processing and /or
product recovery.
6.4 Air Emissiarcas
Sources of air emissions from the operation are rig engines, camp generator engines,
steam generators, waste oil burners, hot -air heaters, Iight plants, incinerators and well test
flaring equipment. Buccaneer will obtain the .-.DEC General Permit N4GP 1 for Oil &
Gas Drilling Pigs and will comply with the stipulated parameters established under this
authorization.
Plan of operations Page 4
53
7, Well Abandonment and Site Closure
Upon completion of drilling and evaluation operations, all debris will be hauled to an
approved disposal site. Spills or soil contamination occurring orn, the pads will be
removed and disposed of at an approved manner or disposal facility.
Depending on the results of the drilling activities and /or testing, the well may either be
1.31ugged and abandoned in accordance with applicable AGGCC. regulations, left in a
condition to zee -enter and resume drilling operations in a succeeding year, or left in a
condition to permit the well to be produced. If the drilling is not successful,. the access
road and pad will be Left in place in accordance with desires of the City of Kenai who is
the land owner.
Environmental Issues and Contingenev Plans
81 Wildliffe. Issues
The usual wildlife that could be in the area during the winter include owls, ravens; foxes,
moose. and brown and black bears. Encounters with wildlifee are expected to be minimal
as the drilling location is adjacent to existing activities within the City of Kenai.
Project personnel will be instructed not to fced vrildlife of any type or in any other way
attempt to attract them either at the drill site or on the roads. Food will be kept inside
buildings or containers that minimize odors. Hazardous materials will be kepi: in drums
or other secure containers.
Building and drill pad layouts will be designed to maximize visibility and minimize
potential areas-that a_bear could crawl into or otherwise be hidden from view. Any
sightings will be immed late l} reported and the personnel in the area warned of the
location of the bear.
8.2 Oil Spill Contingeucv flans
Buccaneer will have an approved Gil Discharge Prevention and Contingency flan (C-
Plan) for drilling operation into the oil bearing forinations (Hemlock Formation) .
Information related to immediate response actions, receiving environments, spill cleanup
mobilization response times and well control can be found in that plan. Buccaneer plans
to use Alaska Chadux Corp oration (ACC) as a Primary Response Action Contractor.
Plan of Operations Page -5 January 4, 2011
54
The drilling contractor holds an EPA Spill Prevention Control and Countel;neasure Plan
( SPCC Plan) for their fuel storage facilities associated with drilling operations.
Additional SPCC requirements will be handled in the C -Plan as appropriate.
8.3 Historical, Archaeoiogical and CaultMral resources
Cultural resources studies for site clearance were conducted to assess any known sites,
and to locate unknown sites. These included a surface inspection of the site in October
and December of 2010 and examination of test pits conducted to determine soils
conditions in December 2010. There were no sites identified in the studies to indicate
that historical, archaeological or cultural resources would be impacted by the project.
9, Communications and Supervisi ®�a
The following persons may be contacted for details on the project:
Mark R. Landt Buccaneer Alaska Operations, LLC
952 Echo Lane, Suite 426
Houston, TX 77024
281- 768 -7652 (,office phone) or
rnlandtf�)buccaraeeralaska.cool (email)
or
Robert Britch Northern Consulting Group
2454 Telequana Drive
Anchorage, AK 99517
1- 907 -243 -7716 (office phone) or
bbritcls,'�i:alasI,a.net (email)
A. Buccaneer designated representative will be on site at all times during operations.
Twenty -four hour phone service will be available at the- drilling camp.
10, T raiuin
Buccaneer will require that all drilling contractor personnel have 9 -hour HAZWOPER
(or equivalent) and specialized onsite environmental training specific to Buccaneer
operations.
Pian of operations Page 6 Ianuary 4, 2011
55
IL Oubfic Involvement
Buccaneer will hold mectin .as locally as appropriate to present additional information
concerning the initial drilling and development program. 71e, permitting actions
associated with these exploration webs will be public noticed in selected publications as
part of the permit review process.
Plan of Operations Page 7
56
.Tamar), 4,2011
33
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Figure 1. Location Map for Penal Loop Prospect Well Sites.
Plan of Operations Page 9 January 4, 2011
57
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Figure 1. Location Map for Penal Loop Prospect Well Sites.
Plan of Operations Page 9 January 4, 2011
57
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Suggested by: Administration
CATS' OF ECENAI
NO. 2622 -2012
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
THE CITY MANAGER TO ENTER INTO A LEASE PREFERENCE RIGHT AGREEMENT
WITH THOMAS WAGONER AND DOROTHY WAGONER WITH RESPECT TO LOT 2,
BLOCK 1, GUSTY SUBDIVISION (11472 KENAI SPUR HIGHWAY) LOCATED WITHIN
THE AIRPORT RESERVE,
WHEREAS, on August 20, 1970, the City entered into a lease with James A. Adkins
and Edward A. Ferguson for City -owned lands which lands included Lot 2, Block 1,
Gusty Subdivision (the Property); and,
WHEREAS, since 1970, the parties to that lease have amended the lease and the
terms of the lease for Lot 2, Block 1 are set forth in the August 20, 1970 lease as
amended through the Sixth Amendment to Lease recorded in the Kenai Recording
District at 2011 - 005192 -0 (the Lease) ; and,
WHEREAS, on June 20, 1988, the interest in the Lease with respect to Lot 2, Block 1
was conveyed to Thomas H. Wagoner and Dorothy C. Wagoner; and,
WHEREAS, on October 31, 2005, the Wagoners assigned their leasehold interest to Ma
&: Pa Alaskan Treasures, Inc_ and the Wagoners subsequently issued Ma & Pa
Alaskan Treasures, Inc. a warranty deed to the leasehold property and took a security
interest in that property, including the improvements on the property, to secure
repayment of a promissory note in favor of the Wagoners; and,
WHEREAS, the Kenai. City Council, through Ordinance No. 2553 - 2011, waived a sale
restriction imposed by the Kenai TAunicipal Code (KMC) and thereby authorized a sale
of the Property to the current lessee, Ma & Pa Alaskan Treasures, Inc., subject to
certain restrictions, promises, and /or covenants; and.
WHEREAS, at its February 1, 2012 Council Meeting, the Kenai City Council
authorized the City Manager to enter into a purchase and sails agreement for the
Property with Ma & Pa Alaskan Treasures, Inc.; and,
WHEREAS, among other terms of the sale, the Council required that if Ma &, Pa
Alaskan Treasures, Inc. elected to use City financing to finance its purchase of the
Property, the debt must be secured by a first deed of trust on the real property and a
first or second deed of trust on any and all improvements on the property; and,
WHEREAS, Administration recommends that, in consideration of the Wagoner's
previous leasehold interest in the property and the Wagoner's security interest in the
improvements on the Property, the City enter into a preference right agreement to
allow the Wagoners to again lease the Property in the event of a default by Ma &. Pa
New Text Underlined; [DELETED TEXT BRACKRTED1
62
Ordinance No. 2622 -2012
Page 2 of 3
Alaskan Treasures, Inc, with respect to a deed of trust benefiting the City to secure its
loan for the purchase price; and,
WHEREAS, a preference right in favor of the Wagoners would preserve the status quo
of their security interest in the improvements on the Property in light of the sale so
long as the preference right is limited to permitting a new lease under the same terms
of the Lease in the event of a default; and,
WHEREAS, the Property is identified for non- aviation uses in the current Airport
Layout Plan. and is not needed otherwise for a public purpose and, therefore complies
with the lease requirements of KMC 21.10.020; and,
WHEREAS, it is in the best interest of the City to authorize the City Manager to enter
into a land lease that deviates from the standard form lease authorized by the City
Council, and for a shorter lease term than otherwise set out in KMC 21.10.090, in
order to further the preference right authorized.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Classification: This is a non -code ordinance.
Section 2. Preference Riaht Agreement: The Kenai City Council authorizes the City
Manager to enter into lease preference right agreement with Thomas Wagoner and
Dorothy Wagoner with respect to Lot 2, Block 1, Gusty Subdivision. The preference
right granted shall be limited as follows: the Wagoners may exercise a right to lease
only in the event that Ma & Pa Alaskan Treasures, Inc. defaults on any deed of trust
benefitting the City with respect to the Property and either (1) the City forecloses on
the Property and becomes the new owner of the property through a trustee's deed or
(2) if, in lieu of foreclosure, Ma & Pa Alaskan Treasures, Inc. reconveys the Property to
the City.
Section 3. Authorization for Alternate Lease Form, KMC 21.20.150(bl: Should the
Wagoners exercise the preference right permitted by this Ordinance, the Kenai City
Council_ authorizes the City manager to enter into a new lease with the Wagoners in
which the new lease is in the same form and under the same terms as the lease
entered into on August 20, 1970 as amended.
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 iYu today of April,
2012.
PAT PORTER, MAYOR
New Text Underlined; (DELETED TEXT BRACKETEDJ
63
Ordinance No. 2622 -2012
Page 3 of 3
ATTEST:
Sandra Modigh, City Clerk
Introduced: April 4, 2012
Adopted: April 18, 2012
Effective: May 1.8, 2012
New Text Underlined; [DELETED TEXT BRACKETED]
RE
M
"' illa e wiM a Fast Ci�y with a Futare""
210 Fidaigo Avenue, Kenai, Alaska 99611 -7794
Telephone: (907) 283 -7535 ( FAX: (907) 283 -3014
wvvvv.d.kenai.ak.us ,«n,;
TO: Kenai City Council
PROM: Christine Cunningham, Assistant to City Manager
THROUGH: Rick Koch, City Manager
ATE: March 28, 2012
SUBJECT: City of Kenai Sale of Property to Ma & Pa Alaskan Treasures, Inc.
Lot 2, Block 1, Gusty Subdivision, Kenai; KPB Parcel too. 443 - 270 -37
Ordinance No. 2622 -2012
The purpose of this memo is to provide additional information in support of the referenced
Ordinance, which authorizes the City Manager to enter into a Lease Preference Right
Agreement with Thomas Wagoner and /or Dorothy Wagoner only in the event of a default by
Ma & Pa Alaskan Treasures Inc.
The City originally leased the referenced property to Thomas and Dorothy Wagoner, The
Wagoners sold their leasehold interest to Me & Pa Alaskan Treasures in 2006 in a transaction
financed by the Wagoners. To secure payment, Ma & Pa Alaskan Treasures executed a
promissory note and deed of trust in favor of the Wagoners. Unfortunately, the 2006 deed of
trust and associated note incorrectly stated that the note was secured by a deed of trust in the
entire fee simple interest in the property (the land owned by City), The deed of trust was
not limited to the improvements on the parcel and the leasehold interest. All parties have
agreed to correct this improper encumbrance on the City's property prior to executing the
closing documents on the sale to Ma & Pa Alaskan Treasures.
It is the understanding of Administration that the Wagoners agree they are not entitled to a
security interest in the fee interest or in the land itself as opposed to the improvements
thereon. Accordingly, before closing on the City's sale of the land to Ma & Pa Alaskan
Treasures, a corrected deed of trust or other suitable document will be executed and recorded.
Because the leasehold interest in the property will be extinguished by the sale of the land to
the current leaseholder, that deed of trust will encumber only the improvements on the
property. The Lease Preference Right Agreement in Ordinance No. 2622 -2012 provides the
Wagoners with assurance that they will have some recourse to benefit from their limited
security interest in the improvements in the event that Ma & Pa Alaskan Treasures defaults.
65
' -��` Suggested. by: Administration CITY OF KENAI
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING
KENAI MUNICIPAL CODE SECTION 23.25.060, "OVERTIME," TO ELIMINATE THE
PAYMENT OF OVERTIME IN EXCESS OF FAIR LABOR STANDARDS ACT (FLSA)
RATES TO TEMPORARY EMPLOYEES AND MAKING TECHNICAL CORRECTIONS.
WHEREAS, the City hires temporary employees to perform work during peak periods
(usually driven by seasonal demands) and these employees often work non - standard
work schedules to accomplish that work; and,
WHEREAS, the imposition of the Personal Use Fishery on the City has created a new
demand for the payment of overtime at premium rates, rate in excess of FLSA rates, to
temporary employees; and;
WHEREAS, under the City Code, temporary employees are ineligible for employee
benefits and holiday nay; and,
WHEREAS, permanent City employees are paid a premium. for overtime hours, above
that required by the federal FLSA law, when the employee works on Sundays and
holidays but the basis for that policy does not apply to temporary employees who do
not work standard schedules or who work only for a short period of time for the City;
and,
WHEREAS, there are some inconsistencies in the City Code regarding the pay
practices of the City with respect to temporary employees and it is in the best interest
of the City to provide clarification in the Code of the City's overtime compensation
practices with respect to temporary employees; and,
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form: This is a Code ordinance.
Section 2. Amendment of Section 23.25.060 of the Kenai Municipal Code: The Kenai
Municipal Code, Section 23.25.060, Overtime, is hereby amended as follows:
23.23.0960 Overtime.
;a) Department heads and supervisors shall assign to each employee regular work
duties and responsibilities which can normally be accomplished within the established
work day and work week.
New Text Undtrhned; iDELETED TEXT BRACKETDDj
♦i
Ordinance No. 2623 -2012
Page 2 of 4
(b) When employees are required to work overtime, department heads shall
authorize compensatory time off or overtime pay. Determination to grant overtime pay
or compensatory time off shall rest with the department head. City Manager, or actnrg
department heads, who shall give due consideration to desires of the employee, to
budgetary controls and to the provisions of subsection (c) of this section. Rates for
overtime (in addition to regular compensation based upon salary schedules) shall be[:]
based upon the emtilovee's regular rate of pay as follows:
(1) General Government Emplovees (excluding [S]sewer [T)treatment [Pjnlant
and temporary employees):
Regular Pay Times
Regular Work 1 1/2
Saturday 11/2
Sunday 2
Holiday 2 1/2
f Temporary Emplovees:
Regular Pav Times
Regular Work 1 1/2
Saturday 1 1
Sunday 1 1/2
Holiday 1 1/2
{3[ General [Gjgovernment and temporary [Edemployees must be in a paid
status for forty (40) hours in the work week before overtime compensation [may] w ll
be paid.
([3]4) Public Safety and Sewer Treatment Plant Emnlovees:
Regular P=age Times
Regular Work Day 1 1/2
Saturday {see KMC 23.30.050 (b) and (c)] 1 1%2
Sunday tsee KMC 23.30.050 (b) and (c)] 2
Holiday [see KMC 23.40.020 (e) for treatment]
([4]5) [BEFORE OVERTIME MAY BE PAIL},] Public [Slsafety and [Sisewer
[Tltreatment [Pdplant employees must be in a paid status for their normal work week,
as follows. before overtime compensation will be paid:
Police
Fire
Communications
Sewer Treatment Plant
New Text Underlined;
67
40 hours
56 hours
40 hours
40 hours
TER.': BRACKETED]
Ordinance No. 2623 -2012
Page 3 of 4
However, overtime may be paid as required by the Fair Laher Standards Act,
recognizing that an employee's salary is compensat on for the normal shifts spec='fied
Ac-
in this Title.
(c) Compensatory time accumulation shall not exceed [EIGHT (8) HOURS] the total
number of hours equal to one regular shift of the emnlove . Once this maximum
accumulation has been reached, all overtime compensation earned by the emnlovee
shall automatically be paid in cash..
(d) Supervisory and professional positions of the classified and exempt services
considered to be exempt from the provisions of the Fair Labor Standards Act shall not
be bound to a work week of any set number of hours. The individuals in these
positions are expected to work as many hours as the responsibilities of their positions
require. As a result, individuals in these positions shall not be paid overtime or
allowed to accrue compensatory time.
(e) The Finance Department shall ask employees to submit monthly time sneers on
a date near enough to the end of the month to allow for processing of pay checks by
the last pay day of the month. Overtime appearing on such time sheets shall be paid
on the last pay day of the month. Overtime worked between the submission of time
sheets and the end of the month shall be entered on the following month's dine sheet
and paid on the last pay day of that month.
[(fl SEASONAL PARKS AND RECREATION EMPLOYEES THAT WORK FOR SEVEN
(7) MONTHS OR LESS IN THE CALENDAR YEAR, AND ARE EXEMPT FROM THE
OVERTIME REQUIREMENTS OF THE FAIR LABOR STANDARDS ACT[S], ARE
EXEMPTED FROM THE ABOVE OVERTIME AND MAXIMUM COMPENSATORY TIME
ACCUMULATION REQUIREMENTS.]
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 confuted in its operation to the part., provision, or
application directly involved in all controversy in which this judgment shah 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 SMC I.15.070(f;, this ordinance shall take
effect one month after adoption.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of April,
2012.
New Tea¢ Underlined; [DELETED TEXT
0
Ordinance No. 2623 -2412
Page 4 of 4
ATTEST:
Sandra Modigh, City Cleric �
Approved by Finance:
PAT PORTER, MAYOR
Introduced: April 4, 2012
Adopted: April 18, 2012
Effective: May 18, 2012
New Text Underlined; )DELETED TEXT BRACKETED)
M
`eke cii' a f , ✓
To: Rick Koch, City Manager
®`bile C Win I Pa,5�j C# With i FU�Iilre rr
FINANCE DEPARTMENT
290 Fidaigo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907- 283 -7535 ert 221 / FAX: 907- 283 -3014
Ie
From: Terry Eubank, Finance Director
Date: March 28, 2012
Re: Ordinance 2623 -2012
The purpose of Ordinance 2617 -2012 is to eliminate the requirement to pay temporary
employees at overtime rates in excess of that required by the Fair Labor Standards Act (FLSA).
FLSA requires overtime- to be paid to employees who work more than forty (40) hours per weekk
at a rate of 1 % times their normal rate of pay. Payment of overtime at rates at 2 and 2' /z times the
normal hourly rate are not required by FLSA. Prior to the imposition of the Personal Use
Fishery on the City, overtime for temporary employees at more than FLSA required levels
seldom occurred. Operations of the fishery seven days a week and even twenty -four hours a day
has required payment of overtime at higher than time and one -half to employees working the
fishery.
KMC 23 25.0(10 (f) attempted to eliminate all overtime for temporary Parks and Recreation
employees. The City's Parks and Recreation employees have been determined to not qualify for
this exemption tinder the FLSA and have thus been paid overtime under the provision of 1 "MC
23.25.060 including at rates of 2 and 2! /z times their normal hourly rate. This Ordinance will
limit overtime to all temporary employees to the FLSA required rate of 1'/2 times the normal rate
of pay for all houx-s over 40 hours per weeki
The change included in tailed Ordinance 2617 -2012 to eliminate the payment of overtime to
permanent employees at a rate of three and one-half times their hourly rate when working on a
City holiday has been eliminated from this Ordinance.
70
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71
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cr,
ii
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73
�- tr
`h
Governor Sean Parnell
STATE OF ALASKA
March 15, 2012
The Honorable Pat Porter
Mayor
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
Dear Mayor Porter„
R- --CE 4d ED
MAR 19 2012
It was a pleasure talking with you recently. I appreciated the opportunity
to hear about the people and econorny of the Peninsula. Tinder your
leadership, you have a thriving town and area. It was good to hear your
comments about how, the Cook Inlet incentives have immensely helped
I appreciate the City and Borough's work on a resolution in support of
meaningful oil tax reform so the "Renaissance" of econonic growth
nnight spread statewide.
I look forw =ard to speaking again with you.
Best gards, '
Sean Parnell
STATE CAPITOL • 110 Sox 110001, Juneau, Alaska 948! 1 - 0061
74
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75
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maarrl,prsvansntiea:niaomax;ac v'avc1evpmxars3
March 7th, 2012
Mayor Pat Porter
City of Kenai.
210 Fidalgo Ave.
Kenai, AK 99611
Dear Mayor Porter:
kabN= Z,7V t LER t
On behalf of the Kenai Peninsula Economic Development District Board of Directors and the Kenai
Peninsula Chapter of the Alliance Board of Directors, we want to thank you for your support of the
2012 industry Outlook Forum held at the SoIdotna Sports Center, January 26th and 27th.
The event was very successful. Our line -up of speakers was excellent. With your generous support the
Forum was presented at no cost to the public who filled the Center to capacity.
Clearly, the 2012 Industry Outlook Forum could not have happened without your contribution.
Again, thank you for your support in making our event a great success.
Sincerely;
Executive'birector President
Kenai Peninsula Economic Development District Kenai Peninsula Chapter of the Alliance
IL'.
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77
NOTICE OF PUBLIC HEARING
APRIL 4, 2012
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.
*Approval of Liquor License Renewal
® Little Ski -Mo Drive In (License # 1774)
2. Ordinance No. 2619 -2012 - Decreasing Estimated Revenues and
Appropriations in the Streets, Water, and Sewer Capital Project Fund and
Increasing Estimated Revenues and Appropriations in the City Shop Capital
Project Fund for the Schematic Design of a New City Shop Utilizing Grant
Funds from the State of Alaska for the Project.
3. Ordinance No. 2620 -2012 - Increasing Estimated Revenues and
Appropriations by $2,000.64 in the General Fund for Grant Funds to Provide
Police Training to Prevent Internet Crimes Against Children (ICAC).
4. Ordinance No. 2621 -2012 - Increasing Estimated Revenues and
Appropriations by $2,155.98 in the General Fund for the Police Department to
Purchase Equipment Utilizing Asset Forfeiture Funds Provided to the City of
Kenai.
5. Resolution No. 2012 -21 - Authorizing a Budget Transfer within the General
Fund, Clerk Department for Staff Recruitment Expenses.
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 and /or resolutions 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.
Sand�a Modigh, "City Clerk
P,ostea: March 30, 2012
UNITED STATES OF AMERICA,
STATE OF ALASKA sso
Denise Reece
being first duly
sworn, on oath deposes and says:
That I am 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 #96546
a printed copy of which is hereto annexed was
published in said paper one each and
every day for _one successive and
consecutive day in the issues on the
following dates:
April 2, 2012
SUBSCRIBED AND SWORN to me before
this 2nd day of 2012
tk 0 n
NOTARY PUBLIC in favor for the
State of Alaska.
My Commission expires 26- Aug -12