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2007-12-05 Council Packet
MAKE 6 PACKETS COUNCIL PACKET DISTRIBUTION i COUNCIL MEETING DATE: id~f.~fn ~ i Mn or/Council Attorne Ta for/S rin er Clerk / Cit Manager Kebschull/Carver Police De artment Finance En ineer Senior Center Air ort / Kim ~' Librar / Parks & Recreation ° Clarion Fire De artment Schmidt r Mellish ~' Student Re / KSRM ~ AGENDA DISTRIBUTION Sewer Treatment Plant ~ ~ Streets I Sho Dock Building Maintenance Animal Control S Water/Sewer ~ I Counter DELIVER Council and Student Representative Packets to Police Department Dispatch desk. The Clarion, KSRM, 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 ns possible on pocket day. The camera-ready agenda c:/myfiles/documents/minutes/agenda form for paper) is emailed to Denise at Peninsu/a C/arion (at email folder Work Session/Special Meetings, or Composition in Contacts or IbeIlC~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 ns soon ns possible before leaving the office for the weekend. ~I w 0 dl a ~ e -~ Z` Q Li O C~ Z h W G J U Z O U F ~}w W (~ O W W Z J ~ J J t- ~ J ~' J } ~' Q Q 000~~~ ~COd(ACnW > ~. v im, 0 c~ ~9 z O W W z J ~ ~S ~ Q ~' Cn (n J J J ~' V- ~' ~ Q J Q p m ~ ~ = 2' ~ (n W N ~~ W '' (,~ W ~' (~ O W W~~ ~ O W W~~ 0 OOOI~~~ 0000~~~ cCO~O..U)C/) W S~~md(n(nW i> F ~ W Z O W W Z J O ~ J ~ W'CAJ~-d'QQp .VZ~~mdcntnW 0 `~ d ~, a LL Z H W W c J U Z O U ~ ~ Z p w W Z ~ o a ~' U) (n J -~ J 1- 1- Q.' '`~ ¢ -~ Q ~' Q ro d ~ S ~ ~ tn W °~ ~ (n ~ W L\ ~- ~ W W O ~' W' Q U~ O -i O )' O N O Q ~ Q ~ D J S CG ~ m ~ (n fn W `®. CJ 1- ~ W W ~ Z p U3 O J W J W H Z Q- J -~ p CG (n J ~- m ~ d Q ~ Q D = ~ ~ ln W ~~" N ~^ ..Cit ~ ~ .... z ~ z ~. ~ Cn O J w J w f Q" J -~ O ~~', Z ~ ~ m d (n (n W',... c~ z r ~ w W ~ p L7 w' (n (n O ~ -~ W J ~- W H a-' N '~ ¢ J J Q ~ o = ~ ~ m ~ Cn (A W a ti x ~ ~ C7 Z p (A p J w J W f- Z Q J -~ ~ ~ ~ Q O O 0 0 ~ ~ ~ `e = ~ ~ m ~ cn cn w ~.. TESTIMONY sIGN-IN sxEET NAME ORGANYZATION RESIDENCE ADDRESS/ PHONE NUMBER ~ IF CITY pp RESIDENT TESTIMONY SIGN-IN SHEET + ~- NAME ORGANIZATION RESIDENCE ADDRESS/ ~ IF PHONE NUMBER CITY RESIDENT , 4 FFt~Gtfr~(t~ ~'~-, PLO (cam ~-t ~r~g ~ ~%> J / ~ E....A lY d- ~~LZ6 P E.- ~.C ~.: .. ,:.. `~ J ~Q `:' ~ ~~ - •/.., .. A . C~'C.rf,P~~,t'd r4 l( .,~ „__ t ~U ~~ . .. e 44V" 1 "Vfl {~ L ~ ~ ~ ; ~ ~~ ,~, ,>f ~., ~~ a ,. ~ ~C~F'i"~~ ~{ 2~~ ~ J f ~-ItL.E d(O rJ C P~~-l~~ ~,C~I1~.,~~-P~~a ~.~ M,M a / ' ~' d ,n5~'.~s- PG ~ -- '~ , . ,L DECEMBER 5, 2007 REGULAR COUNCIL MEETING REQUESTED AMENDMENTS TO AGENDA REQUESTED BY: ADD TO: Item E-la, Substitute Ordinance No. 2268-2007 -- Suggested amendment language. CITY MANAGER ADD TO: Item E-2, Ordinance No. 2269-2007 -- Memorandum of explanation related to pawnbroker licensing. POLICE CHIEF ADD AS: Item H-4 -- Schedule Work Session w/ representatives of Corps of Engineers regarding bluff erosion project. CITY MANAGER CONSENT AGENDA No Changes. Notes• AGENDA KENAI CITY COUNCIL -REGULAR MEETING DECEMBER 5, 2007 ?:00 P.M. KENAI CITY COUNCIL CHAMBERS http: ! /www.ci.kenai.ak.us YTEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. John Bost, Mikunda Cottrell Sz Co. -- City of Kenai Audit Report ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) Ordinance No. 2268-2007 -- Amending KMC 3.15.040 to Provide that 1) a Hearing Shall be Held to Determine Whether a Dog Kennel License Will be Granted or Renewed; and 2) Property Owners Within 300 Feet of a Parcel That is the Subject of a Dog Kennel License Application Shall be Notified of the Application and the Date, Time and Place of the Hearing; and 3) Setting Out the Appeal Process for Any Aggrieved Party ..................................................... (Clerk's Note: At the November 21, 2007 meeting, Ordinance No. 2268-2007 was tabled to the December 5, 2007 council meeting. The motion to enact is active.) a. Substitute Ordinance No. 2268-2007 -- Amending KMC 3.15.040 to Provide that 1) a Hearing Shall be Held to Determine Whether a Dog Kennel License Will be Granted; and 2) Property Owners Within 300 Feet of a Parcel That is the Subject of a Dog Kennel License Application Shall be Notified of the Application and the Date, Time and Place of the Hearing; and 3) Setting Out the Appeal Process for Any Aggrieved Party ................................................................................................ . 75 77 2. Ordinance No. 2269-2007 -- Enacting Chapter 5.40 of the Kenai Municipal Code Establishing a Licensing Procedure for Pawnbrokers and Regulating How Pawnbrokers Conduct Business ..................................................................... 85 (Clerk's Note: At the November 21, 2007 meeting, Ordinance No. 2269-2007 was tabled to the December 5, 2007 council meeting. The motion to enact is active.} 3. Ordinance No. 2270-2007 -- Increasing Estimated Revenues and Appropriations by $71,730.85 in the General Fund for Repair of the Visitors Center Heating System .................................................:................................ 89 4. Ordinance No. 2271-2007 -- Increasing Estimated Revenues and Appropriations by $1,254,000 in the Wellhouse 4 Capital Project Fund for Water System Upgrades and $627,000 in the Water and Sewer Fund to Provide Matching Funds for a State Grant ...................................................... 91 5. Ordinance No. 2272-2007 -- 1) Amending the Land Use Table in KMC 14.22.010 by Separating "Storage" From the Current Use Listing of "Manufacturing/Fabricating/Assembly Storage" and; 2) Adding "Storage Yard" and "Mini-Storage Facility" to the Listed Uses in the Land Use Table and; 3) Amending KMC 14.20.320 by Providing Definitions of "Wholesale Business," "Mini-Storage Facility," "Storage Yard," and Warehouse." ................................. 6. Resolution No. 2007-76 -- Accepting the Updated 2007 Historical Preservation Plan for the City of Kenai ........................................................... ITEM F: MINUTES 1. *Regular Meeting of November 21, 2007 ......................................................... 2. *October 3, 2007 City Council Work Session Notes .......................................... 3. *November 21, 2007 City Council Work Session Notes ..................................... ITEM G: UNFINISHED BUSINESS 92 99 129 150 151 ITEM H: NEW BUSINESS 1. Bills to be Ratified ......................................................................................... 153 2. Approval of Purchase Orders Exceeding $15,000 ............................................. 154 3. *Ordinance No. 2273-2007 -- Increasing Estimated Revenues and Appropriations by $50,000 in the Senior Citizen Fund for a State of Alaska Grant for Building/Equipment ....................................................................... 155 ITEM I: COMMISSION/COMMITTEE REPORTS 1. Council on Aging ........................................................................................... 156 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. Joint Kenai River Working Group ............................................................... -- d. Mini-Grant Steering Committee ................................................................. -- ITEM J: REPORT OF THE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager ................................................................................................ -- 2. City Attorney ................................................................................................ -- 3. City Clerk ..................................................................................................... -- ITEM L: 1. Citizens (five minutes) 2. Council ITEM M: 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.) Ordinance No. 2202-2006 -- Amending KMC 11.05.090 to Limit the Use of the City of Kenai Boat Launch, Located at the Municipal Harbor, to Vessels and Boats Powered by Four-Cycle or Direct Injection 1~vo-Cycle Engines. (1/17/07, Tabled, no time certain.) Ordinance No. 2240-2007 -- Amending KMC 21.10.070 to Give the Airport Commission More Authority Over Leasing Decisions Within the Airport Reserve. (7/18/07, Tabled, no time certain.) -- None Scheduled. ITEM N: INFORMATION ITEMS DECEMBER 5, 2007 Page No. 1. 12/5/2007 Purchase Orders Between X2,500 and $15,000 for council review. 157 2. 11/27/07 L. Reese, Assistant Principal, KCHS letter related to clearing of underbrush around the Challenger Center and hockey facility ........................ 158 3. 11/26/07 R. Weber, Natural Resource Specialist, DNR regarding proposed noncompetitive land sale for Public and Charitable Use (ADL 230056, approximately five acre parcel abutting the Kenai Spur Highway and Spruce Avenue) ....................................................................................................... 159 4. 11/26/07 Public Works Department, Project Status Report ............................. 162 5. 9/26/07 Kenai Convention and Visitors Bureau Board of Directors meeting minutes ...................................................................................................... 164 6. 10/29/07 Kenai Convention and Visitors Bureau Board of Directors meeting minutes ...................................................................................................... 166 7. Application for Appointment/Planning 8v Zoning Commission -- Karen Koester (no openings available at this time -- application will be kept on file) ............... 168 8. 11/24/07 C. Hugg, President, Safari Club International letter regarding 1007 Safari Club International Diamond Conservation Award ................................... 169 9. 12/ 13/2007 Kenai River Special Management Area Advisory Board Meeting agenda and 11/8/07 Advisory Board meeting minutes ................................... 172 10. 11/4/07 Kenai Peninsula Borough Assembly Meeting Agenda ........................ 182 City of Kenai, Alaska. Financial Report For Fiscal Year Ended June 30, 2007 Comprehensive Annual C~ ~REFiENSIE AR[iV[1AL FiNANCiAL REPaRT` OF THE CITY C)F KENAt, ALASKA Year Ended June 30, 2007 Pat Porter Mayor Rick R. -Koch City Manager Prepared by Finance Department W Lawrence A. Semmens, CPA Finance Director 2 CITY OF KENA1, ALASKA COMPREHENStVE ANNUAL FtNANGlAL REPORT YEAR ENDED JUNE 30, 2847 _ tNTRODUCTiON SECTION Paoe Table of Contents Letter of Transmifta! 1 GFOA Certificate of Achievement 5 Organizational Chart 6 List of Prinaipal Officials ~ FiNANC1AL SECTION Auditor Report Report of Independent Accountants 9 Management's Discussicn and Analysis 11 Basic Financial Statements Government-wide Financial Statements Statement of Net Assets 22 Statement of Activities 23 Fund Financial Statements Balance Sheet, Governmental Funds 24 Statement of Revenues, Expenditures, and Ghanges in Fund Balance, Governmental Funds 25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances 26 of Governmental Funds to the Statement of Activities General Fund -Statement of Revenues, Expenditures, and Changes in Fund Balance - 27 Budget and Actual Airport Land System Special Revenue Fund -Statement of Revenues, Expenditures and 34 , Changes in Fund Balance -Budget and Actual Statement of Net Assets -Proprietary Funds 36 Statement of Revenues, Expenses, and Changes in Fund Net Assets -Proprietary Funds 37 Statement of Cash Flows -Proprietary Funds 38 Footnotes 39 i 3 Other Governmenta! Funds 55 Combining Balance Sheet - Nonmajar Governmental Funds 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - 5g _ Nonmajor Governmental Funds PRISM Specia! Revenue Fund -Schedule of Revenues; Expenditures, and Changes ir. Fu..^.d 59 Balance -Budget and Actual Senior Citizens Special Revenue Fund - Schedule of Revenues, Expenditures, and Changes 60 in Furd Balance -Budget and Actual Council on Aging Specia! Revenue fund -Schedule of Revenues, Expenditures, and Chanaes 51 in Pund Balance - Budget and Actual Water and Sewer Special Revenue Fund -Schedule of Revenues, Expenditures, and Changes E2 in Fund Balance -Budget and Actual ' General Government Land sales -Schedule of Revenues.. Expenditures, and Changes in Fund 64 Balance -Budget and Actual Airport Land Sales Permanent Fund- Schedule of Revenues, Expenditures, and Changes in 65 Fund Balance -Budget and Actual STATEST1CAl SECTION g~ ii 4 ®'~rllaa~e wit~a a Past, Gc went a~ut~~e>` 210 Fidalgo Avenue, Kenai, Alaska 99fi11-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.ci.kenai.ak.us November 20, 2007 Honorable Niayor Pat Porter, City Council Members and Citizens of the City of Kenai, Alaska In accordance with Section 29.35.120 of the Alaska Statutes and the City Charter, we are pleased to submit the Comprehensive Annual Financial Report fnr the year ended June 30, 2007. The financial statements were prepared in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants This report consists of management's representations concerning the finances of the City of Kenai. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, managemant of the City has established a comprehensive interval control framework That is designed both to protect the government's assets from !oss, #heft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GP,AP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been desioned to provide reasonable rather than absolute assurance that the financia! statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Mikunda, Cottrell & Co., a firm of independent certified public accountants. The goal of the independent audit was to provide reasonable assurance chat the financial statements of the City for the fiscal year ended June 30, 2007 are frae of mataria! misstatement. The irdependent audit invoVved examining, on a test basis; evidence supporting the amounts and disclosures it the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor conc'uded, based upon the audi±, that there was a reasonable basis. for rendering an unqualified opinion that the City's financial statements for the fiscal year ended June 30, 2007, are fairly presented in conformity with GAAP, The independent auditor's report is presented as the rirst component of the financial section. of Phis report. The independent audit of the financial statements of the City was part of broader State and federally mandated "Single Audits" designed to meet the special needs of State and Federal grantor agencies, The standards governing Single Audit engagements require the independent auditor fo report not only on the fair presentation of th=. financial statements, but also on the audited government's internal controls and compliance with certain legal requirements, with special emphasis or, internal controls and legal requirements ~~' involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Reports. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of ~J transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report cf the independent auditors. Profile of the City of Kenai The City was incorporated in 1960 as a home rule city and its charter was adopted May 20, 1963. The City occupies a geographic area of approximately 45 square miles located in tl7e south central part of the state of Alaska. Major city services include police, fire, ambulance, airport, street maintenance, recreation, parks, building inspection, water and sewer, dock, cemetery and library. Funding for the City General Fund, by order of financial significance, is provided from sales tax, property tax, state revenue, interest earnings, federal revenue, and other sources. Other funds rely on service charges, interest, grants and other sources. The City operates under acouncil -manager form of government. Policy-making and legislative authority are vested in a governing council consisting of six members and the mayor. The city manager, attorney and clerk are appointed by the council. The council and mayor are elected on anon-partisan basis. Council members serve three-year staggered terms, with 2 members elected each year and are elected at large. The mayor is elected at large and serves athree-year term. The city manager is the City's chief executive officer and is responsble for carrying out the policies and ordinances of the City, for overseeing the day-to-day operations of the government and for hiring the heads of the various departments. Budgetary Control The annual budget serves as the foundation for the City`s financial planning and control. All departments submit budgets to the city manager on or about the last Monday in February. The city manager uses these requests for developing a proposed budget. The ciky manager submits the proposed budget to the council at the first regular council meeting in April. The council is required to hold public hearings on the proposed budget and generally adopts the budget by ordinance at the first meeting in June. The city manager is aukhorized to make budget transfers within a fund for amounts less thar, $5,000. Council action is required for transfers between .funds, for transfers exceeding 55,000 and for new appropriations. Budget-to-actual comparsons are provided in this report for each individual governmentaE fund for which an annual budget has been adopted. Factors Affecflng Financial Condition Economy The primary private sector portions of Kenai's economy are oil and gas, commercial fishing, tourism and retail sales. The future holds challenges for oil and gas and commercial fishing in the Cook Inlet region. Gas supplies in quantities needed for liquefied natural gas (t_NGj and fertilizer production are projected to run out in this decade if new supalies are not made available through discovery or pipelines from other production areas. Fertilizer production has been signifccantly diminished over the last couple of years and closure of the ' plant later this year has been announced due to limited availability of natural gas. The impact an the Kenai ; economy because of job loss is not known. Some of fhe displaced employees will likely stay in the area but work on the North Slope, which would mitigate the impact. Feasibility studies are being conducted to assess the viability of coo( gasification as an alternative to nature! gas. A gas pipeline from the North Slope to Cook Inlet would greatly enhance the viability at the industrial complex. The State of Alaska is working with the gas producers and other interested entities to develop a gas pipeline, but whether a gas Tine will be built is not known at this time. Other developments in the local oil sector are very positive. Tesoro has completed enhancements to production foci€ities at its Kenai refinery and are now producing low sulfur diesel fuel. Chevron, Shell and Forest Oil are all making signi#icant investments in this region. The proposed Pebble Mine, which is across Cook Inlet from Kenai, continues to be in the news for its world class prospects for copper, gold and molybdenum. Actual production will be years in the future, but KenaYs airport could be a much busier place if the project gets all of ±he permits required for operatics. Commercial fishing has had some good years recently in terms of production. Prices however remain near historic lows. Fishing is expected to continue to be an important component of the Kenai economy. Tourism continues to be strong in the summer months. The unique dipnet fishery at the mouth of the Kenai River, where thousands of Alaskans catch a year's supply of sockeye salmon in July, makes Kenai a busy and very popular place. Accessible beaches, beautiful soenery, fishing and abundant historic sues all recommend Kenai as a great destination for tourists on the Kenai Peninsula. Sales tax is the largest revenue source for the City Retail sales businesses generate the largest share of sales tax revenue. This sector is vibrant and growing in Kenai and if current prospects come to fruition, the City's retail sector wiEl increase substantially in the next few years. Overall, the projection for the economy of Kenai is optimistic. Kenai is situated in a beautiful area with abundant land and natural resources, an accommodative business climate and a stable population base. long term financial planning - general Fund fund balance increased over a half million dollars in FY 2007 to nearly $10 million which represents almost one year of expenditures. This healthy fund balance provides options for the City and generates interest income that car, be used far operations. One of the larger financial challenges facing the City is our contribufion to fhe Public Employees Retirement System (PERS}. Our rate has increased 5°J° of payroll per year or over $250,060 annually for the last three yaars. For fiscal year 2008 the 5°I° Increase limit was removed and the rates were set at the actuarially required rate, which is 45.71% of covered. payroll for Kenai. The new rate will require a contribution of $2.4 million, an increase of $1.4 million or 3 mills of proparty tax. The rate increase is driven by the large liability incurred by the PERS when actuarial assumptions were changed along with poor investment returns in 2000 and 2001 as well as health insurance cost increases. The State of Alaska has been providing funding for a portion of the increased contribution. For FY 2008, employers will pay a maximum of 22% of payroll and the Sta#a is paying the difference to the actuarially required rata, Employer members of the PERS system are working with the State legislature for a long term solution to this problem. High oil prices have produced a sa~rpius in State revenue and as long as oil prices remain high, the State of Alaska should be able io assist municipalities, but if oil prices decline the likelihood of continued support is Tess certain. i The City is actively pursuing economic development opportunities. Lowe's recently purchased a tract of land for $1.7 million and the sale of a larger Tract is pending with Waf-Mart. When these large retail stores are built, Kenai will see substantial increases in traffic and sales. The long-term financial eutiook is positive. Cash management policies and practices The City utilizes a central treasury to aggregate cash from all funds for cash management and investment purposes. Interest income on investments is allocated to participating funds based on average equity balances. The City Code of Ordinances authorizes investment in obliga#ions of tha U. 5. Treasury, its agencies and instrumentalities, repurchase agreements, fully collateralized certificates of deposit, money market mutual funds and the Alaska Municipal League Investment Pool, Inc. The City Code of Ordinances also places limitations on maturity of investments. Risk Management The City's risk management program is designed to protect against accidenta4 losses that would signiticanfly affect personnel, property, or City finances. The City purchases commercial ganeraf liability and property insurance Through the Alaska Pubiic Entities Insurance Pool The City risk management plan includes employee training to reduce employee injuries and claims. Pension and Other Postemptoyment Bene4its The City provides pension benefits for all eligible employees through the State of Alaska Pubiic Employees Retirement System (PERSj. The City has no obligations in connection with emplayee benefits offered through , this plan beyond its annual required payment to the pension plan. Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Kenai for its comprehensive annual financial report for the fiscal year ended June 30, 2006. (n order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual finanGai report. This report must satisfy both generally accepted aocounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Acknowledgment L. The preparation of this Comprehensive Annual Financial Report in a timely manner was accomplished ~n~ith the efficient and dedicated service of the entire staff of the Finance Department. Due credit should also be given to the City Council for kheir efforts in planning and conducting the financial operations of the City in a resporsib(e manner. i Respectfully ~s~ub~mitted, ~"L/l ick Koch, Oily Manager (~~~r~ Lawrence A. Semmens, CPA Finance Director ZS certificate of ~chievernent for Excellence in Financial Reporting Presented to C:lt~ O~ ~~eTlal ~~aS~.~~ For its Caniprehensive Annual Financial Report for the Fiscal Year Ended Tune 30, 2006 A Certificate o€Achievemenf for Bxceiiencc inFinanciai Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive anmrel financial reports {CAFRs) achieve the highest standards in government accounting and firtareialreporting, .HGE 0lry~ ti UMtt~6lAkt~~., ~o~$~ as~ President MGIfO Executive Director j9 City of Kenai Organization Chad COMMISSIONS Airport Harbor Parks and Recreation Library Planning and Zoning I CITI' CLERK FINANCE j PARKS & REC. PUBLIC WORKS ~ I CITIZENS 1 CITY COUNC(~ BOARDS COUNCILS AND COMMITTEES Council on Aging Beautification Cornm. Personnel Arbitration Board CITY ATTORNEY CITY MANAGER ~ FIRE POLICE LIBRARY i SENIOR CENTER AIRPORT ~~ CITY OF KENAI, ALASKA ORGANIZATION AND PRINCIPAL CITY OFFlCiALS The City of Kenai was founded in 1791, It is located south of Anchorage on Cook Inlet in the Central Kenai Peninsula. The City is 161 highway miles from Anchorage. By air, Kenai is three hours from Seattle and thirty minutes from Anchorage. Kenai was fhe site of the first major oil strike in 1957 and has served as a center for exploration and production since that time. Commercial fishing and processing contribute to the economy. Kenai adopted the Council Manager form of government in 1983 and has been operating under this form since tha# time. The City Council, together with appointed City offic(afs, meets the first and third Wednesday of each month in the City Administration Building for regular Council sessions. in addition, numerous special meetings and work sessions are scheduled Throughout the year. The Council, vdhich consists of the Mayor and six council members, is selected at large and on anon-partisan basis. Annual elections are held in October. The terms of office are three years but are overlapping so that the City is provided with a continuity of knowledge in City business and legislative matters. City Council Mayor Council Members Pat Porter Robert Malloy Rick Ross Linda Swarner Mike Boyle Jos Moore Barry Eldridge City Adminisfrafion City Manager Finance Director City Clerk City Attorney Police Chief Fire Chief Public Works Manager Librarian Parks & Recreation Director Acting Airport Manager Senior Center Project Director Term Ends 2007 2ao9 2009 2008 2008 2007 2007 Rick R. Koch Lawrence A. Semmens Carol L. Freas Cary R. Graves Charles Kopp Mike Tilly Jack La Shot Mary Jo Joiner Robert Fratss Mary 8ondurant Raahael Craig I1 AUDITOR REPORT 13 ~~ :"~ ,a~ I ~ ~. ~~u~da, ~ottre~~ ~ ~0., z=,~. t~ertified .C'u.blic:Accountancs b C;onstdtaats Independent Auditor's ReQort Honorable Mayor and City Council City of Kenai, Alaska . h+~(~irey Pletvror~ M irro'epentlentiy Ox'ned Member Offraes m Anohorge & Kenai We have audited the accompanying financial statements of the governmental""''activities, the business-type activities, each major fund, and the aggregate remaining fund'ihfarmafion of the City of Kenai, Alaska as of and for the year ended June 30, 2007 which collectively comprise the City's basic $nancial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit u3 accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditr`ng Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as welt as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements refan-ed to above present fairly, in alLtnaterial respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Cit}~`af Kenai, Alaska, as of 3une 3Q 2007, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund and Airport Special Revenue Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 20, 2007 on our consideration of City of Kenai's infernal control over financial reporting and an our tests of its comptiance with certain provisions of laws, regulations, contracts, and grant agreements. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and comptiance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or or, compliance. That report is an integral part of an audit perfanned in accordance with Government Auditing Standards and should be corsidered in assessing the results of our audit. 360" "C" Street, Suite "000' Anchorage, Alaska 99503 ` (907} 278-8878 'Fax {907) 278-5779 " www, mcc-cpa. coax 1~4 Honorable Uiayor and City Council City of Kenai, Alaska The Management's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming apinions on the financial statements that collectively comprise the City of ICenai's basic financial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been audited by us and accordingly, we express no opinion on them. Anchorage, Alaska November 20, 2007 ~n IrJ MANAGEMENT'S DISCl1SS10N AND ANALYSIS 16 Management's Disenssion and Analysis As management of the City of Kenai, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the City of Kenai for the fiscal year ended 3une 30, 2007. We encourage readers to consider the information. presented here in conjunction with additional information that we have famished in our letter of transmittal. Financial Hishti~hts • The assets of the City of Kenai exbeeded its liabilities at June 30, 200', by $145,824,404. Of this amount, unrestricted net assets of $18,203,147 may be used to meet tine government's ongoing obligations to citizens and creditors. A significant portion of this legally unrestricted amount has been designated for specific purposes. • The City's total net assets increased by $5,715,024. Governmental type activities increased by $9,335,967 and business type activities decreased by $3,620,943. • As of the close of the current fiscal year, the City's governmental funds reported cambined ending fund balances of $33.245 683 an increase of $2,416.953 from the prior year. Slightly over $2 million of this increase is due to the closure of the Terminal Enterprise Fund, which is now part of the Airport Special Revenue Fund. The fund .balances of the two permanent funds, which cannot be spent, account for $14.3 million of total fund balance. About $4.6 million of the remaining fund balance is reserved ar designated. The remaining $14.3 millior. is available for spending. • At the end of the current fiscal year, fund balance for the General Fund was $9,965,107. Qf this amount $7,'700,436 was unreserved, undesignated and available for spending. • The City has along-term liability for contaminated soils remediation of $1.4 million, compensated absences of $657,540 and a net pension obligation of $1,215,280. The net pension obligation is due to the fact that although the City paid the contribution rate required by the Public Employee's Retirement System, that rate was less than the rate that the PERS actuary recommended for the prior three years. Overview o€ the Financial Statements This discussion and. analysis is intended to serve as an introduction to the City of Kenai's basic financial statements. The City of Kenai's basic financial statements are comprised of three components: I) government-wide financial statements, 2) fund financial statements, and 3) notes to Che financial statements, This report also contains other supplementary information in addition to the basic financial statements themselves. The basic financial statements include two kinds of statements that present different views of the City's activities: • Government-wide financial statements provide both short-term and long-Germ information about the City's overall financial condition in a summary format. 11 17 to account for the purchase of equipment costing more that $50,000. The Equipment Replacement Fund chasges the primary user department in the General Fund such that the General Fund reimbtu•ses the Equipment Replacement Fund over the useful life of the asset. Because these services predominantly benefit governmental rather than business t}'pe functions; they have been included within governmental activities in the governmenC-wide fmat~cial statements but are presented in a single column in the proprietary fund financial statements. At year end Congregate Housing Fund unrestricted net assets were $531,534. Net assets decreased $65,560 for the }'ear. Revenues are simply insufficient to cover expenses -especially considering depreeiatian. It is anticipated that net assets will continue to decline. General Fund Budgetary Highlights. The General Fund appropriations budget was amended by the City Council during the year by $326,387. Appropriations associated with grants and donations totaled $112,287. Apprapriations of fund balance were made for capital projects totaling $75,000; far increased utility casts of $9b,470; and for miscellaneous operating items of about $43,000. Actual revenues were $575,755 higher than the final budget, a variance of about 6%. Sales tax contributed $175,000 of the positive variance, interest was about $250,000 over budget, and other miscellaneous revenue was about $275,000 over budget. Major miscellaneous items and the amounts that revenue exceeded budget were: land sales $100,000 and settlement proceeds of $122,oao. The actual expenditures and transfers out were $917,683 less than budgeted. It should be noted that encumbrances at year-end totaled $166,593. The City typically does not spend the entire authorized appropriation, the variance this year was about 8.36% of final budget compared to 6.98% last year. Over half of the lapsed appropriation is from personal services. Major components of the variance within personal services include wages, $140,000 -primarily due to open positions; PERS $153,000 -due to budgeting excess contributions to PERS, but not actually paying more than was required; and health insurance, $137,000 -due to an increase in the deductible amount which resuked in a decrease in the premium as of January 2007. Capital Assets and Debt Administration Capital assets. At June 30, 2007 the City's eaprtal assets had a total net book value of $113,143,381. Governmental activities totaled $109,805,881 and business-type activities totaled $3,337,500. Additional information on the City's capital assets can be found in the notes to the financial statements at `Section III. Detailed Notes on All Funds' C. Capital Assets. l~8 w Debt administration. The City had no outstanding debt at year-end. There are long-term liabilities for contaminated soils remediatian of $1,400,000, compensated absences of $657,540 and net pension obligation of $1,215,280. Additional information on the City's Long-term debt can be €ound in the notes to the financial statements at `Section III. Detailed Notes an All Funds' E. Changesrn Long-Tea~.n Debt. Requests for information. This financial report is designed to provide a general overview of the City of Kenai's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, City of Kenai, ? 10 Fidatgo Avenue, Kenai, Alaska 99611. ~~ m BASIC FINANCIAL STATEMEPdTS 21 CITY OF KENAI, ALASKA STATEMENT OF N ET ASSETS June 30, 2007 Governmental Business-type Activitias Activities Total ASSETS Equity in central treasury (cash and cash equivalents) Reoeivables (net of allowances for uncollectibles) inventory Land Property and equipment in service Accumulated depreciation Construction try progress $ 33,497,907 $ 565,979 $ 34,063,886 4,620,942 - 4,620,942 27,809 ~ - 27,609 5,579,398 274,500 5,853,898 140,891,331 4, 915, 806 145, 607,137 !50,148,660) (1,852,806) (52,001,466) _. 13,483,812 - 13,483,812 Total assets $ 147,952,539 $ 3,903,479 $ 151,856,018 LIABILITIES Accounts payable Unearned revenue Other liabilities Long-term liabilities: Due within one year Due in more than one year Total liabilities NET ASSETS Invested in Capital assets Restricted for Nanexpendable: Airport Land Saie Permanent Fund General Government Land Sale Permanent Fund Unresiricfed Total net assets $ 2,369,956 $ 3,048 $ 2,373,004 128,861 2,880 131,741 231,421 22,628 254,049 185,000 - 185A00 3,081,931 5,889 3,087,820 5,997,169 34,445 6,031,614 109,805,881 3,337,500 113,143,38 i 11,945,862 - 11,945,862 2,532,014 - 2,532,014 17,671,613 531.534 1$,203,147 $ 141,955,370 $ 3,869,034 $ 145,824,404 See Accompanying Notes to Financial Statements ~~ OON O'~M a ' M~ N h MNOV OS iQO Q'~ ' ' a 4 J q (D N O q a h (p N N N q ~ N q ^J '. y c( (p cp !~ q •- M j q N M g M h ' N' O M V !, r a n O V q CD C n N CD N d' q sl' q a CD CO r N O l M O a V q vJ a V" O N m v! ~ ~f ~ ~ t N N N O~ ~ M ~ _ M rt~ C'II a i ¢~ ~' ~ m• ~ ~ ~ - ~ ~ n~ ro n q nl m qj u; v', ~nl v h~ M a aj o y y, 9 N.' ~ d'i q ~ P. 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C V V U v "` L m C W ~ C Pl Oi fJ 1 '~ C p j N y Y% O t? N N el N N `A N ° t d a N i ~ d~ N tNii 7. m~ ~ m m 4 p 'a ' ' ° w? Y m` U 'p a (n ~ r c U=~ r w ~j c'/a v~ m a a's ¢ ~ - x ° 5~~. z v > > v W o z u. LL ~~ CITY OF KENAI, ALASKA Reconci3iatian of the Statement of Revenues, Expenditures and Changes in Fund 8atance of Governmenta} Funds To fhe Statement of Activities For the Year Ended June 30, 2007 Amounts reported for governmental activities in the statement of activities are different because' Net changes in fund batances -total governmental funds $ 2,416,953 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depraciation (net of asset deletions) in the current period. .5,893,?43 Governmental funds reported the actual payment made to PERS for pension obligation of $572,798; however, in the statement of activities the actuarially required contribution vvas recorded, (376,27G) Special assessment revenues, taxes, land sales and ambulance sarvices reported in the governmental funds ere not revenues of the current period using the flow of financial resources basis. (123,031 } Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (40,421) Internal service funds are used by management to charge the cost of certain activities to individual funds. The net revenue of certain activities of the internal service fund is reported with governmental activities. 63,086 The Terminal Enterprise Fund was converted to a division of the Airport Special Revenue Fund. Net assets were adjusted for the impact of this conversion. 1,502,513 Change in net assets of governmental activities See Accompanying Notes fo Financial Statements $ 9,335,967 ~~ CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND SAIANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2tl07 Variance With Final Budget Original Final Positive Bud et Budget Acfuat. Ne alive Revenues: - Taxes: Generalproperiy $ 2,155,p00 $ 2,155,000 $ 2,127,821 $ (27,179] General safes 4,456,400 4,456,400 4,631,812 175,412 Penalty and interest on taxes 20,000 20,000 32,866 12,666 Total taxes 6631400 6631400 6,792,499 161,099 Licenses and permits'. Building permits 150,000 150,068 86,958 (63,042; Anima( control licenses and fees 6,700 6,760 28,765 22,065 Other 4,100 4,100 5,150 1.050 Total licenses and permits 160,800 160,800 ^20,873 (39.92Tj Intergavernmenial revenues: Federal grants - - 3,065 3,665 Kenal Peninsula Borough 75,600 75,OD0 46,000 (27,000) State of Alaska sharedrevenues: Electric uillity tax 3D,OOC 30,000 30,538 638 Fish tax 75,pQ0 75,006 42,634 (32,366) Liqucrlicenses 20,006 20,000 18,200 (1,860) Municioa! assistance 340,760 340,760 340,760 - Stal@ Of Alaska grznfs: Library grants - 28,462 28,462 - Other 199,903 273;090 270,033 (3,057) Total intergovernmental revenues 740 663 842 312 781,792 (60,520) Charges for services: Ambulance fees 248,000 248,000 243,526 - (4,480) Multipurpose faci!Ity charges '5,OOD 75,000 77,914 2,914 Administrative and service fees 988,000 99$000 998,000 - Cther - 134,000 134,000 148,633 14,633 Total charges far services 1,A55,000 1,455,QOp 1,468,067 13,067 Fines and rorfeits: Court fines iD0,000 100,000 74,857 (25;143) Library fines 15,000 15,000 10,580 (4,420) Otheriorfeitures 1,850 3,850 7,326 3,476 Total fines and forfeits 116,850 ~ 118,850 92 763 (26A8Tj See Accompanying Notes to Financial Statements ~8 CITY OF KENA1, ALASKA GENERAL FUND '. STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BU DG ET AN D ACTUAL YEAR ENDED JUNE 30, 2007 continued Variance With Final Budget Originak Final Positive Revenues, continued: Budget Budget Actual Ne ative Miscellanedus revenues: lnterestrevenue $ 430,000 $ 430,000 $ 679,371 $ 249,371 Rents and !eases 40,900 40,900 45,721 4,821 Library donations 2,GD0 2,000 2,010 10 Oi! and gas royalties 80,000 80,000 124,084 44,084 Special assessments 16,000 16,000 12,178 (3,822) - Other 233_,285 241 923 475 582 233,659 Total miscellaneous revenues 802,185 810.823 1,338,946 528,123 Tcta! revenues 9,906,898 10,019,785 7G,594,94G 575,755 Expenditures: General government: Legislative: Personal services 48,598 46,598 42,689 3,915 Supplies 2,608 7,585 4,406 3,179 Other services and charges 16 i ,673 120,696 ~ 99,582 27,114 Tota(fegislative 21Q879 180,879 146,671 34,208 City clerk. Personal services ^.35,214 136,214 135,214 1,000 Supplies 11,098 13,259 6,601 6,656 Other services and charges 28,920 20:363 19,127 1,236 Capital outlays 22,000 22,000 Total city clerk 175 232 191 836 160 942 30,894 City afiorney: Personal services 225,398 225,396 209,244 15,752 Supplies 1,740 1,161 1,925 38 Other services and charges 15,360 40,569 37,479 3,090 Total city attorney _ 242 496 267,126 247,848 19,278 See Accompanying Notes to Financial Statements ~~ CITY OF KENAI, ALASKA J GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 continued. Variance With Final Butlget Original Final Posi#ive '. Expendi#ures, continued: Budget Budget Actual Ne ative Genera! government, continued: City manager: Personal services $ 184,836 $ 184,836 $ 18D,366 $ 4,470 ' Supplies 3,962 3,067 2,415 552 Other services and charges 12,818 13,713 13,598 115 Total city manager 201 ,616 201,616 196,379 5,237 Finance: Personal sen~ices 366,955 366,955 365,231 1,724 '. Supplies 12,289 11,946 8.509 3,437 Other sen;ices and charges 17.760 18,103 13,33? 4,772 Total finance 397,004 397,C04 387,071 9,933 ', Non-deparfmental~~ Supplies S,C94 8,094 4,427 3,667 Other services and charges 429,493 369,864 349.897 19,987 Capifalou?lays 16 500 16,500 11,750 4 750 Tctal non-departmental 454,087 394,458 366,074 28,384 Planning and zcning; Personal services 159,E11 159,611 1A6,700 12,911 Supplies 5,690 6,248 4,385 1,863 Other services and charges 20,495 19,937 15,563 4,374 Total planning ar,d zoning 185,796 185,796 166,648 ?9,148 I Safety: Supplies 1,250 ?,250 21? 1,033 Other services and charges 8,510 8,510 1,953 6,557 Total safety 9,76D 9,760 2,170 7,550 Land administration: Supplies 200 200 16G 40 Other services and charges 10,238 9,799 4,114 5,685 Capital outlays 1,000 1,DG0 Total land administrailor, 10 438 10,999 5 274 5,725 _ _~ Tota! genera! government 1,887,308 1,839,474 1,E79,077 16Q39? See Accompanying Notes to Financial Statements ~~ GITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND B ALANCE BUDGET AND AGTU AL YEAR ENDED JUNE 30, 2007 continued variance With Final Budget Original Fina! Positive Expenditures, continued: Budget Budget Actual Ne afive Public safety: Police: Personaiservices $ 1,855,110 $ 1,872,297 $ 1,763,655 $ 108,642 Supplies 55,684 72,884 73,841 (967) Other services and charges 713,103 169.053 159,663 9,390 Capital outlays 39,360 .51;165 49,757 1,408 Total police 2,062,657 2,165,399 2,046,916 118.483 Fire: Personal services 1,677,238 1,677,238 1,579,996 97,242 Supplies 38,929 66,450 5D,964 9,486 Other services and charges 125,605 126,777 122,236 4,64' Capital outlays 50,000 38,832 38,832 Total fire 1,891 ,772 1,903,297 1,792,028 111.269 Communications, Personal services 620,635 620,635 575,224 45,411 Supplies 7,100 7,695 7,007 688 Cther servicas and charges 33,180 35 585 31,554 4,031 Tota; communicatians 6E0 9^,5 663,915 613,785 50,13D Animal control: Personal services 197,616 197,616 174,287 23,329 Supplies 10,950 12,967 12,812 155 Other services and charges 65,041 69,341 67,138 2,203 Total animal control 273,607 279.924 254,237 25,687 Tota! public safety 4,888,951 _ 5,D12,535 4.766,96E 305,569 See P.ccompanying Notes to Financial Statements ~a CITY OF KENAi, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 continued Variance With Final Budget priginal Finat Positive Expenditures, continued: Budget Budget Actual (Negative) Pugfic works: Public works administration: Personal services $ 307,206 $ 307,206 $ 245,007 $ 62,199 Supplies 6,090 6,872 6,112 760 Other services and charges 9,607 8,825 5,438 3,387 Tnial public works administration 322,903 322,903 256,557 66,346 Shop: Persona? services 277,963 277,963 255,163 22,800 Supplies 223,574 256,274 243,758 12,516 Other services and charges 99,323 129,023 123,871 5,152 Total shop 600,860 663,260 622,792 40,468 Streets: Parsanai services 520,829 520,829 438,326 82,503 Supplies 105,351 85,101 68,239 16,862 Other services and charges 156,762 152,663 87,171 65,492 Capital outlays 20,250 20,250 Total streets 782,942 778,843 613,986 164,857 Dcck: Personal services 62,729 62,729 61,783 946 Supplies 41,446 44,665 49,877 (5,212) Other services and charges 40,948 37,729 33.966 3,763 Total dock 145,123 145,123 145,526 (503j Buildings Personal services 217,351 217,954 198,848 19,103 Supplies 25,690 25,867 20,234 5,633 Other services and charges 155,294 164,302 145,376 18,926 Capltaioutlays 35,000 29515 28.583 2,932 Total buildings 433,935 437,635 391,041 46,594 Street lighfing~~ Supplies 21,588 11,588 229 11,359 Other services and charges 125,657 ";52,316 120.496 31,820 Total street fighting 147,245 163,90A 120.725 43,179 Total public works 2,433,008 2 511,668 2.150.727 360,941 See Accompanying Nctes to Financial Statements .5G CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES: EXPENDITURES, AND CHANGES IN FUND BALANCE EtUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 continued Variance With Final Budget Original Final Positive Expenditures, oonfinued: Budget Budget Actual Ne ative Parks, recreation, and cultural: Liorary. Persoral services $ 415,925 $ 415,925 $ 392,343 $ 23,582 Supplies 30,750 38,750 36,365 2,385 Other services and charges 1a8,358 174 691 151 1D6 23 585 Total library 595,033 629,366 579,814 49,552 Visitors center Supplies 1,860 ?,800 1,382 418 Other services and charges 110,342 114,888 108,545 6,343 Total visitors center 112,1_42 116 688 109 927 6,761 Recreation: Personal services 79,930 79,930 79,650 280 Supplies A,180 4,637 4,505 132 Other services and charges 277,31? 298,323 299,386 (1,063; Capital outlays - 30.000 15,943 14,05] Total recreation 361,427 g12,89D 399.484 13,406 Parks: Parsonal servsces 143,850 941,75D 133;660 8,69p Supplies 2D,500 28,622 25,091 3,531 Oiher services and charges 72,131 68,251 65;882 2,369 .Capital outlays 9.560 6,700 6,700 Total parks 245,981 245,323 236,733 14,590 Beautification: Personalsewioes 38,949 40,449 39,332 1,117 Supplies 24,234 24,236 24,D61 175 Other services and charges 11,600 10,491 7,041 3,450 Capitai outlays 21,500 21,500 21.383 117 Total beeutiflcation 96,283 96 676 91,817 4,856 Tota! parks,recreation, and cultwra! 1,410,&66 1,500,943 t.411 775 89168 Total expenditures 1Q,620,133 10,864,62D 9,948,545 916,675 See Accompanying Notes tc Finarcial Statements ~~ CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES tN FUND BALANCE BUDGETANDACTUAL YEAR ENDED JUNE 30, 2007 con±i n ued Excess of revenues over{under) expenditures Othar financing sources (usesj: Transfers in Transfers out Ne( other financing sources {uses) Nei ohanges in fund balance Fund balance -July 1 Fund balance -June 30 See Accompanying Notes to Financial Statements Variance With Final Budget Original Final Positive Budget Budaet Actuat (Nepafivel $ (713,235) $ (845,435) $ 646,395 $ 1,491,830 16,840 16,800 32,240 15,440 (28,850) (108,750) (107,142) 1,608 (94,056) .(91950) (74,902) 17,048 $ (723,285) $ (937,385) 571,493 $ 1,508,878 $ 9,393,614 $ 9,965,107 ~4 CITY OF KENAk, ALASKA AIRPORT SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES fN PUND SA LANCE BUDGET AND ACTUAL .YEAR BLADED JUNE 30, 2007 Variance With Final Budge[ Original Final Positive Budget Budaef Aotual Ne afiva Revenues: intergovernmental revenues' Federa gran! $ - $ - 'r,$76 $ 7,876 State grant 19677 ?9,677 32'179 12,502 Total intergovernmental revenues 19,677 ?9 677 40.055 20,378 Miscellaneous revenues: Rents ar.d leases, including penalty and interest 493,500 433,500 47B,512 (14,988) Landlna fees oo^8,000 85,000 113,875 28,878 Fish hauling rents 3,000 3,000 0,588 3,588 Interest revenue 665,000 665,000 935:867 270,867 Pari<ing fees 70,000 7C,000 102,8B2 32,882 Cer Rental Commissions 130,pG0 130,000 ~ to8,725 38,925 Advertising Commissons 6,0'uD 6,000 7.055 1,055 Other - 20,100 40,1G0 5n,998 16,$98 i otal misoeilanepus revenues 1,472,600 1 492 600 1.870,502 377 902 , Total revenues 1,492 277 1 512 277 1,91 G,557 398,280 Expenditures; Maintenance and operation: Persona!services 234,262 203,570 ^.95,997 7,573 Supplies 139,993 128,468 112,988 15,480 Other services and charges 289,185 323,1G6 295,251 2>,855 Capital outlays 20,000 53 000 45 512 7,488 683,440 708,144 649,748 58.390" Expenditures chargeable from other funds 728,200 728,200 728,200 - Totai maintenance and operation 1 41 ", 640 1 436 344 1 377,948 58 396 , Administration: Personal services 164,637 164,637 153,924 10,713 Supplies 5,865 5,865 4,312 1,553 Other services and charges 41,685 38,586 19,59E 18,_98? 212,'87 209,OB8 177,B35 31,253 Expenditures chargeable from other funds _ 33,400 33,400 33..400 Total administraticn 245,587 242,488 211,235 31,253 See Accompanying Notes to Financ ial Statements ~J CITY OF KENA1, ALASKA AIRPORT SPECIAL. REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 continued Variance With Final $udget Original Finaf Positive Expenditures, continued: Budoet Budget Actual Na ativel Land: Personal services $ 42,5&9 $ 73,281 68,901 $ 4,380 gupp;;es 11,306 14,831 18,937 894 Other services and charces 1C5,049 78,925 61,499 17,426 Capital outlays 287,125 250,000 31,125 Total land 159,944 448162 394,337 53,82$ Training facility: Personas services - 14,6G6 iu,985 3,625 Supplies - 8,053 5,172 2,911 O±her services and charges - _89,609 93,570 (3,961) Total training facif!ty 112,298 109,723 ____,_ 2.575 Terminal: Persor,ai services 83,168 53,168 77,004 6,164 Supplies 1A,850 1&,200 17,340 860 Other services and charges 4"9,342 438,692 300.3D7 138,385 5i7,36D 540,06C 394,651 145,4G9 Expenditures chargeable from other funds 45 900 45,900 45,900 Total terminal 563,260 589,960 440,551 145,409 Total expenditures 2,3]9,431 2,825,252 2,533,794 291,458 Excess of revenues over (under) expenditures (887,154) _ (1,312,975; (623,237) 689 738 Other financing sources (uses): Transfers in 28,500 2$,500 2,066,945 2,038,445 Transfers out (50,7D4} (58704) - Net other flnanaing sources (uses). 28,500 (22,204] 2,016,241 2,038945 Net changes in fund balance $ (658,954) $ (1,335,179) ~ 1,393,004 $ 2,728,183 Fu^d balance -July : 3,853,205 Fund balance - Jure 30 $ 5,2]6.2U9 See Accompanying Notes to Financial Statements ~- CITY OF KENA1, ALASKA STATEMENT PF NET ASSETS PROPRIETARY FUNDS JUNE 3Q 2607 Gavemmenta( A ctivities -Infernal business-type Act+vlties -Enterprise Funds Service Fund Airport Congregate Equipment Terminal Housing ReolacemenY ASSETS Currenf ascots, Equity in central irsasury $ $ 5Fi6.979 $ 1,303 786 Nancurrani Assets, Property and equpmeN it service, at cost: Land - 274.500 - Buiidings - 4,915,806 - Equipment - 9.088,407 Total propertyard equipment in service - 5,190,306 1,088,467 Less accumulated depreciation - _ (7.852,$06) 315.365r tier property and equipment in service - 3,337,50C 772,102 Total assets $ 3,903479 $ 2,676,288 LIABILITIES Current llabiHties: Accoun±s payable $ - $ 3,048 $ Other liabilities - 22,628 - Oefe?rsd revenues 2 ggp Toial current liabilities 28,55& Noncurrenf Iia4iiit;es~. Compensated absences ~~ - 2,258 Net pension obligstion _ - 3,634 Total noncurrent febiliiles ~ 5889 Total liabilites 3q,gg5 MET ASSETS !m~ested in capizai assets - 3,337.500 772,102 Unrestrlctad - 531,534 1,303,18fi Tote! ret asseU ~ .~~ $ __ 3,8o""9z,C34 $ 2,075,288 See Accompanying Notes to Financial Statemenfs ~~ t CITY OF KENA3, ALASKA STATEMENT OF REVENUES, EXPENSES AND CHANGES !N FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2tl07 Governmental Operating revenues. Rents and leases Other revenue Total operating revenues Operating expenses: Personal services Supplies Uti!iiies Repair and maintenance Insurance D~epredailon Manager's fee Miscellaneous Expenses chargeable from other funds Tote! aperating expenses Operating loss Nonoperating revenues: Infergovernrnertal grants Interest revenue Total nonoperating revenues Income before ccntribufions and tranfers Transfer cut Charge in net assets due to conversion to a special revenue fund Change in net assets Net assets -July 1 Net assets -June 30 Activifies - Internal Service Business-type Activities -Enter prise Funds Fund Airport Congregate Total Equipment Terminal Housing Replacement $ - $ 279,102 5 279,102 $ - 50.810 279;102 279,102 50,8+0 - 26,118 26,118 - - -6,735 6,735 - - 64,434 64,434 - - ~ 67,586 67,586 - - 14,500 14,500 - - 125,299 125,299 52,809 - 2G,G52 2G,052 - - 2,364 2,364 37,600 37,60C 364,688 364,688 52,809 (85,586) (85 586) (1,999} - 714 714 - 29,312 29,342 65A85 30,026 30,026 65,085 (55,560} (55:560) 63.088 (2,05<"",870) (10,000) (2,062,870) - f 1 502,513) 1, 502 51 (3,555,383) (65,560) (3,620,943) 63,066 3 555.383 3 934 594 7,489 977 2 012202 $ ~ 3,869,034 $ 3,869,034 5 2,G75,288 See Accompanying Notes to Financial Statements J~ CITY OF KENAi, ALASKA -~ STATEMENT OF CASH FL6W5 PROPRIETAttY FUNDS YEAR ENDED JUNE 30, 2007 Governmental Activities - Internz( Business-type Activities -Enterprise Funds Service Func+ Ai rpon Congregate Equipment Terminal Nousin Total Replacement Cash flaws from operating activities: RecelpCS from Customary $ - $ 281,982 $ 281,982 $ - PaymentsloSuppllers - (175,011) (i75,011j - Payments to Employees - (24,679) (24,679) - Payments for Intertuntl Services (37 80D 37,600 50_810 Net cash provideC {used) by operating aciivfties 44 692 44,692 5p 810 Cash flows from noncapital financing dLIIVit1ES: ' Fund closure (5,179) - (6,179) - Transfer out (2,052,876) (10,000) (2,062,370) State Grant __ _ __ 714 714 NeY cash provided (used) by roncapital Gnancing activities (2,058,049) (9,286) (2067,335) Cash (lows from investing activities: In:erost on Investments 29.3M12 29,312 65,085 Net increase {decrease) i~ cash and cash equivaVents (2,058,0AB) 6A,718 (1,953,331) 115,395 Cash and cash equivaten(s, beginning 2 058.049 5D1 261 2.559,J1D 1 187251 Cos.^, and cash equiva:ents, ending y $ 585,979 $ 565,579 5 1,303,186 Reconciliation oY operating income to net cash provided (used) by operating activities: - Operating Income 5 - $ (85,588) S (85,586) $ (1,999) Adjustments Te Reconcile Operating Income (Loss) Ta Ne[ Gash, Rrovide by {used in) ., Operating AcsivHiex Ueprecralion 125,298 725,299 52,809 _ Accounts receWable - - - - Accounts payable - 1,411 1,411 - Other IlabiiHles ono oaferred revenues _ 3,588 3,568 Nel Cash Provided by {used in) Opera±ing Activities: g $ 44,692 $ 44.692 $ 50,810 Ses Accompanying Nctes !o Pina.^.cizi Siatem eris -~ J FOOTNOTES TO FiNANCIA~ STATEMtENT 40 CITY OF KENA1 NOTES TO FINANCIAL STATEMENT'S JUNE 30, 2007 F. SUMMARY OF STGNdFICANT ACC4DUN'i'ING F4LICIES A. Reporting Entity The City of Kenai (City} was formed by a Home Rule Charter on May 20; 1463 under the provisions of Alaska Statute, Title 29, as amended. The City operates under acouncil-manager form of government and provides the following services: public safety (police and fire), public improvements, airport, dock facility, water and sewer, library, senior Citizen, recreation, parks, planning and general administrative services. The fmancial sta[ernents of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (QAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body far establishing governmental accounting and financial reporting principles. The more significant accounting principles of the government are described below. _ 1?. City-Wide and Fnnd Financial Statements The City-wide financial statements (i.e, the statement of net assets and the statement of activities) report information on all activities of the City. Governmental activities, wftich normally are supported by taxes and intergovernmental revenues along wi`dt user fees, are reported separately from the business-type • activities, which rely to a significant extent on fees and charges for suppot•c. The effect of any interfund activity, for the most part, has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who use, purchase, or directly benefit from the goods, services or privileges provided by a given segment or function and includes restricted grants and contributions that are restricted to meeting the operations or capital requirements of a particular function or segment. Taxes and other items not properly included in program revenues are reported as genera! revenues. Major individual governmental and proprietary funds are reported as separate columns in the '~ fund financial statements. C. Measurement focus and basis of accounting and Cnancial statement presentation The City-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a Ftability is incurred, regardless of the timing of cash flows. Grants and simitar programs are recognized as revenue as soon as all eligibility requirements imposed by the peovider have been met. Net assets are reported as restricted when constraints placed on the net asset use are either externally imposed by creditors, grantors, contributors, or taws or regulations of other governments are imposed by law through constitutional provisions or enabling legislations. Governmental fund type financial statements are reported using the currant financial resources measurements focus and tho modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are colkectibie in the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are co€lected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as weal as expenditures related to claims and judgments and compensated absences; are recorded only when payment is due. 39 41 Franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible m accrual and so have bean recognized as revdnues of the current (scat period. pnly the portion of special assessment receivables due wifnin the current fiscal period is considered to he susceptible to accrual as revenue of the current period. All other revenue items are considered to be measured and available only when cash is received. by the government. The City reports the tr"ollowing major governmental funds: The General Fund is the City's primary operating fund. Tt accounts for all financial resources of the general government, except those squired to be accounted for in another fund. The Airport Special Revenue Fund accounts Por 9ctivities of the airport except €or land sales. It relies on user fees and investment interest to finance operations. The Airport Land Sales Permanent Fund accounts for sales of airport land. All principal proceeds of any land sold are held in this fund and. may sot be spent. Interest named on land sale contracts is transferred to the Airport Special Revenue Fund. Investment interest generated bythe cash balance of this fund is recorded in the Airport Special Revenue Fund. The Airport Improvement Capital Project Fund accounts for capital projects that are airport related. Primary funding sources are f deral grants and transfers fi'om the Airport Special Revenue Fund. The Stzeet Improvement Capital Project Fund accounts for capital projects that are related to street improvements. Primary funding sources are state grants and transfers from the General Fund. Additionally the City reports the following fund types: Proprie8ary Funds -the City uses one enterprise fund to account for activities that are intended to be supported by user fees. The Congregate Housing Entemrise Fund accounts for the activities of kite senior housing project. Infernal Service Fund -the Equipment Replacement Fund is an internal service fund. It accounts for the purchase of ayuipment costing more than $50,000 that will be used by General Fund departmen*s on a cost- reimbursement basis. Private-sector standards of accounting and financial repotting issued prior to December 1, 1989, generally .... are followed in both tite City-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The City has the option of following subsequent private-sector guidance for their business-type activities and enferprise funds, subject to this same limitation The City has elected not Yo follow subsequent private- sector guidance. As a general rule the .effect of interfund activity has been eliminated from the City-wide financial statements. Exceptions to this general rule are charges between the City's enterprise functions and various other functions of the City. E)iminaeion of these charges would distort the direct costs and program _ revenues repotted for the various functions concerned. I Amounts reported as ptrogram revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contribufions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than - as program revenues. LiEcewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generalty result from providing services and producing and delivering goods in -~~ connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the 4~ enterprise Fund and of the City's internal service fund are chazges to customers for sales and services. Operating expenses for enterprsse funds and internal service fund include the cost of sales and services, admsnistrafive expenses, and depreciation an capital assets. All revenues and expenses not meeting this definition are reported as nonoperatiag revenues and expenses. When both restricted and unrestricted resources aze available for use, it is the City's policy to use restricted resanrces first, then unrastxicted resources as they are needed. Use of accounting estimates: Tlxa preparation of financial statements in a¢eordance with accounting principles generally accepted in the United States o£ America requires management to make estimates and assumptions Chat affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities ax the date of the financial statements and the reported revenues and expenses during the reporting period. Acr'ual results could differ from those estimates. D. Assets; liabilities and net asse#s ar equity 1. Cash and cash equiva}ents The City maintains a central treasury for most of its cash and cash equivalents, which is utilized by all funds.. Far the purposes of these financial statements, the City of Kenai considers highly liquid investments that era readily convertible to cash, with an original mantzity of three months or less, to be cash equivalents. l.nvestment incarne is recorded hx the General Fund, except that interest earned on cash held in the water and sewer speeiaE revenue fund, the airport speaiaS revenue fund (including cash in Che airport land sales permanent fund and a,irpart related capital protect funds), the congregate housing enterprise fund and the intemal service fund is recorded in these funds. 2. Inventories Inventories are valued at cost, which approximates market, using the firstinlfirst-out method. The casts of inventories are recorded using the consumption method. 3. Receivables and payables Activities between funds that ate representative of lending/borrowing arrangemenCS outsfanding at the end - of the fiscal year are referred to as either "due to other funds" or "due from other funds" (i.e., the current portion of Interfund loans). 4. Restricted assets Monies or other resources, the use of which is restricted by legal or contractual requirements are recorded as restricted assets. 5. Capital assets Capital assets, which include property, plant, equipment, and infrastrucEUre assets (e.g., reads, bridges, - sidewalks, and similar items), are reparted in the applicable governmental or business type activities "' columns in flte City-wide financial statements: Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000. All infrastructure assets, Including those acquired prior to June 30, 198Q, are reported. Such assets are retarded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets axe recorded at estimated fair value at the data of donation: The costs of normal maintenance and repairs that do not add to the value of the asset or matarial3y extend assets lives are not capitalized. - Major outlays for capital assets and improvements are capitalized as projects are constructed. 4J R~operty, plant, and equipment of the City, is depreciated using the straight line method over the following estimated useful lives_ sets Years Buildings costing more than $SQQ00 50 Buildings costing less than $SQ000 2S Building improvements 25 Water and sewer infrastrneture 50 Street infrastructure 30 Heavy equipment 26 Other equipment 10 Office equipment 5 6. Compensated absences It is the City's policy to permit emplogoes to accumulate earned but unused vacation benefits. The City makes annual appropriations for the amount of leave expected to be used, which is available to employees at essentially their discretion. Each employee is allowed to accumulate up to 80 days of annual leave at the end of a calendar year, with any excess accumulation paid in cash in the following January. Atl vacation pay is accrued when incurred In the City-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee fermirations or in situations where the Ieave is used but not yet paid. All funds, except the internal service and capital project funds, will be utilized to liquidate the liability for compensated absences. The most significant, due to the fact that it has the largest payroll, is the General Fund. 7. Long-term obligations In the City-wide financial statements, and proprietary fund types in the fund financial statements; long-term debt and other long-Term obligations are reported as liabllizias in the applicable governmenta[ activifies, business-type activities, or proprietary fund type statement of net assets. In the fund financial statements, governmental fund types recognize long-term debt obligations only when due. 8. Fund equity In the fund financial statements, governmental fund types report reservations of fund balance far amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designatiors of fund balance represent tentative management plans that are subject to change. II. STEWARDSHIP, CdMPLIANCE, ANIT ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of Americz for all governmental fund types, except the Capital Project Funds which adopt project-length budgets. A1S annua3 appropriations lapse at a fiscal yeas end.. -' Budgets for the general fund, special revenue funds, debt service funds, permanent funds and enterprise funds are annual budgets. Capital project fund budgets are project-Iength budgets. Alt budgets are adopted on a basis consistent with generally accepted acoounting principles. The Equipment Replacement Fund, which is an interval service fund, is not required to have a budget. The council approves aI1 asset acquisitions from this fund by resolution. ~-24 Annual budgets must be submitted to the Ciry Council by the City Manager during or prior to the sixth week preceding the first day of each. fiscal year. The City Council must adopt an annual budget and set [he tax rates not later than the tenth day of Tune for the following year, Budgetary contra( (the Ieve1 at which expenditures may not exceed budget} is maintained at the object class level by the encumbrance of estimated purchase arnonnts prior to the release of purchase orders to vendors. Purchase orders which woutd result in an overrun of object class balances are not released until additional appropriations are made available, Amendments to appropriations may be made by the city administration by transfers within a fund in atnounts less than 55,060. Other amendments, including supplemental appropriations, may be made by the City Council The City Council authorized supplemental appropriations during the year in capital projects funas, special revenue funds and the general fund. General fund supplemental appropriations were 5766,259. The majority of this was to appropriate state and federal grants received during the year and for transfers to capital prajeet funds. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities. These commitments will be reappropriated and honored during Che subsequent year. III. DFTA)1.ED NFJTES ON ALL FUNDS A. Deposits and investments The City maintains a central treasury that is available for use by all funds. Each fund type's portion of the central treasury is displayed on the combined balance sheet as "Equity in Central Treasury". At year-end, all of the City's bank deposits were either insured or aollateralized with securities held by the City's agent in the City's name. The City's investment policy authorises the City to invest in: (a) obligations of the United States or an agency. or instrumentality of the United States; (b} certificates of deposit with banks and savings and loan associations; (c) repurchase agreements; (d) money market mutual funds consisting primarily of obligations of the United States or an agency or instrumentals`ty of the United States, or repurchase agreements collateralized with such obligations; and (e) the Alaska Municipal League Investment Pool (AMLiP). Generally, investment matwities cannot exceed five years from fhe date of purchase. Repurchase agreements must be cohaterahzed with United States gavorrzment obligations. Certificates of deposit must be insured or collateralized with obligations of the United States or its agencies or instrumentalities. Collateral must be held by a third party trustee. The City complied with its investment policy throughout the year. The AMLIP is an external investment pool which is not SEC registered and. is not rated for credit risk purposes. Alaska Statute 39.23 establishes regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized investments and reporting. pn a monChly basis the investments in die pool are reviewed for fair value by an independent pricing service, The values of investments in the AML pool are approximately equal to fair value. The average maturity of the pool at Sune 30, 2009 was 31 days. The fair value of the City's investments at year-end are shown below. GASB Statement 3 establishes categories as an indication of the level of custodial risk involved in the investrents. The A.M.L. Pool is uncategorized. All of the City's remaining investments are in the category of least risk and include investments that are insured or registered in the Ciby's name, or securities that are held by the City or its agent ih the City's name. Al] of the United. States treasury bills, treasury notes, and United States zgency securities are held in a custodial account in the Wells Fargo Trust Department, and are recorded in its internal records in the City's name in accordance with a safekeeping agreement. Wells Pargo is not a counter party to security transactions. 43 45 OTHER GOVERN~ENTALFUNDS 47 (3ther Government Funds This section includes the Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual, for the Airport Land Sales Permanent Fund, which is a major fund, as well as _; the Nonmajor GovernmentaE Funds Combining Balance Sheet and Combining Statement of Revenues, Expenditures, and Changes in Fund Batance. It also includes a Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actua{ for each nonmajor governmental fund that adapted an annual budget. Special Reversue Funds Special Revenue funds are used for specific revenues that are legally restricted to expenditures for a specific purpose. Prism Fund -This fund accounts for revenues and expenditures made at the Alaska Regional Aircraft Firefighting Faciikty. The source of revenue is generated from training fees. Water and Sewer Fund -This fund accounts for revenues and expenditures in the water and sewer fund. The primary source of revenue is from user fees. Kenai Borough Sen#or Citizens Fund -This fund accounts for revenues and expenditures related to the Senior Citizens Program. The primary source of revenue is a grant from the Kenai Peninsula Borough. Council On Aging Fund -This fund accounts for the activities of the Senior Citizen Title III Grant Program which is substantially financed by a grant from the State of Alaska (from federally financed sources). Activities include social services and a nutrition program. Capital Project Funds Capital Projects Funds are established to account for the resources expended to acquire assets of a relatively permanent nature. These funds evolved from the need for special accounfing for band proceeds, grants and contributions far the acquisition of capital assets. Capital Projects Funds provide a formal mechanism which enables administrators to ensure that revenues dedicated to a certain purpose are used only for that purpose and further enables them to report to creditors and other grantors of capital projects fund revenue, that their requirements regarding the uss of the revenue were ful{y satisfied. Parks And Recreation - fo account for capital improvements to City parks and recreation facilities. Financing is primarily from genera! fund #ransfers and State grants. Water And Sewer - to account for capita( improvements to City water and sewer infrastructure and the sewer treatment facilities. Financing is from user fees via transfers From the Water and Sewer Special Revenue Fund, State and Federal grants and bonds. Miscellaneous - to account for capital projects which do not fit in one of the foregoing categories. These projects are generally smaller projects, which may be funded through transfers from other funds or by State or Federal grants. 55 4g Permanent Funds Permanent Funds are used to repart resources that are legally restricted to the extan# that only earnings, and not principal, may be used. General Government Land Sales - to account for the proceeds of general government sand sales, including principal and interest on long-term notes. By City Charter, the principal cannot be spent. Interest revenue is transferred to the GeneraE Fund Airport Land Sales - to account for the proceeds of airport land sales, including principal and interest on long-term notes. By ordinance, the principal cannot be spent. Interest revenue is recorded in the Airport Land System Special Revenue Fund. Note that this is a major fund and is therefore not included in the NonMajor Governmental Funds Combining Statemenks. Jb 49 r: v b m~ at' o a v~ r b'- n o v n v~ nl co R P h LO h C~ rN Vi V h N M~ (D [~! fD m~ h N E C w [n Q1 O u1 ^ ~ h m n y ~ ' (D O~ M tD u) YN O ~ (D lO M~ WD `n M (O t0 .- oO C O ~" ~ OI N ~ o E E c s~ f ~ n v o ^ o m n ~ N _ N N~ [O ~ O ~ LL Z ~ O ~ 69 04~ w ~ ~ f9 P O i P 4 bj V Q. C ~~ N ~ m O~ W W~ r ~ o ~ ~ I N m Mj M N l rN'I ~ y L y M :li V w C VI F . B !J ~ N N N N N L ~ ~ ~ J N 'J i ~ it b~ O i 'I Oj i i ~ r ~ io 6 O O O jo ~ a ~ p (V N kkkkkk N ( N + N ~ 1 U N_ Pv' i M NY f/i ~ j ~ U m i ~ i ~ i ~ ~ ~ d ~ ~ ~ r ~ a ~ rn P ~ C 9 ~$ ry m0 ~ M M ~ ~ ~ m w + , N ' n ~ o ~ a ~? , a, b, a s , , r („) { b4 ~ Wrl w ~ ~ t9 c~ ~n m w » v: I v ~ . rv w1 N C p ~ m m in p I m A ~ N { V 1lli r I N m Nj P~ Y d 6} :n j S N V ~ C^5 ~~ NR qq S I ~ U a ~ ar ~w w i ~ ~t»8 ,. Y Q ,~ W 2h V ° I ~ m ~ ~ M~m wb ~n '~m N ' m ~ m u~ inn W o `Z qg I ~ ~ m o~ of , n m v i ° m, m- r. ~,~ m ' w j N ro mi co ~ m vi v: m m u: w ~ o M p m ~d V Z Q~ M W es i0 V T a w- v ~ ~ N N O N N } tJ i N ~ Q Z ~ "i MI ~ t9 e3 3 j WY m H U ~ ~ i, I ~ ~ ~ ~ ~ U~ 7 U ~ N) N N N i rv ~ i Z ~ U 4 I i I ~ Vi W 4Y Mp N U d n r M O P ~ h o'i 9 ~ Vi p C ( p M1 M O V t 0 h P! I l0 R N v1 (O N O N O O^ V~ p Y ~ M q .~ n N r e' M N m g f s 1 ~~ "p va I »! e ~ ~ en ; ~ ~ ~ ~ ~ ~ ~ ~ w W V of ~I ~ ~~ Ni ~ P N mo o- ~ N o n) ~ j(~ ) ~ I Hj i M e9 ~ W N W V z J ~ e i a e m c N ~ ~ m m m 'a z ~ a r ~ m ~ u ~ ~ b m UOi w U m ~ O b ` ai a "~ y ~ v, ~ ~ m E ~ ` ~ e m' w o y E E `° a = E 8 b ~ q m E -- v N H o a s m G a `" 'E m ~ a ~ ` W r r a i, m ci v w ~ ~ v ~ ° ~ ° i a m c E_ a° ~ C J _ m> m 6 b N 6 N S v ~ O N b d 4xi ~ ~ C _ bC V y P V i u c o m~ m W v a c o 79 d= .. .. A c 2 2 'm y m- . m c m ° m' t _`= C p ~ ~ Oi N C ~ ' L U N d~ d W U N N 6 T U 9 W N C J m .c p ¢ U o v o ~ g c~~ o C a ~ r ~- w = z O ~ ~/ J 1 50 N W ~. N Q 2 N ~ L'.Z W Z W o Y W J-irv gZmZo ,Q W ~ W W ? Z `L Z W u. Z W p Y ~ ~ O ~ o z~:~z ~~ao~ U F x g W F p ~ ~ N Z Z U' C Z Z 2 CO U N `p M O O N~ I .m' ' y . ~ I i 'v 'tl C E ~ N t0 P (9 W^ O N .-I p F ` o m~ ~ O: i oii Z p U' yr ~~ m E ro~ ~~ Imo 2~ v C N. . n ~ ~ u m c ' ~ e+ R, o ~ ' I ~ ^- w 0 m U 2r~ M ~' 0, f r i : a ~ ff ~. ~ .~. tl p I ro C ~I N m N 9 > ~ :p o; i i w I : I ~ ~ ~ N ~ . U `n ~ ( ~ d ~ w I m m n m m ~ 0 m air pi ~ ~ m '' ~ p h~ ~ . m ~ N .. a P N ~ b ) ~i m 6+1 o q U ~ w AI 'U ~ : ~ : N pp: n m I rv N~ N ~ r ~ c y "~ N M, ' U ~ j ryi ~ f f ~~ O 9 ` ` a! ~ `~ °Ffr'9= v9Q=0 n i ~ ~ ~ M P~ pOi Nro N f ~+ N C N O pi N p tl 40 ~ ~ i i E wI ~' ~ o ~ v m v N~ I «~~ ' ~ m~ ~ ~~ I y' ° ° ~ i i 5 N a mE i J . - ~ i 1 ~I ~ ~ ~ Nr a o f m, n ~ ~ n ~ N j v n, I c vi ~, .n ro of , m N EMI p ' p ` N ~ ) M' m i r~J r I °' I { i t ~ w m v n m! ° o w' n E a ~ ' o M r w , ry' ~ ~ ~ r y 3tl 3 u„ N M1r ~ ~ O ~ N ~ V W of g o 0 0 d P C ~ , ~, ~ O I o N N r ri I I : V ' C O 0 0 m rv n m m~ n_ N, I v~ O ~ l4 rv ~^ i a i N ~ ~) M S m' M i ~ ^~ I - v m ~m m N N m O p ~ m im I p :i C1 N r I^ N a o w v c, ~ W QCi d 4 O C ro u u ~ 2 m = H a `-' ~ y v E w u N N~ v U N~ v v 2 c p > °~ a m a v N N Q E v C~ .p. C M G ~ di C Ol O~ ' ~% V 4~J pp 1 p L h N G N W^J 6~ O Ip ~ 0 N ~~U(n==`2 o Why N1.4UF W L C W C N ~ D v N Wy i ~ L b c ~ ° c m a ~ p °m w x ~ m c a m ~ ~ v C v p F H N ~ ~ V 4 p N u: :. . ~. . L d A U t N p U b W O !- r Z Z ~i u. JO 51 CITY OF KENAI, ALASKA PRESM SPECIAL REVENUE FUND SCHEDULE pF REVENUES, EXPENDITURES, AND CHANGES tN FUND BALANGE BUDGET AN D ACTUAL YEAR ENDED JUNE 90, 2007 Variance With Final Budget Final Poslfive Budget Actual INegative) Revenues: Charges for services - Trair,ing services $ 300,000 $ 201,6',2 $ ;98,388) Expenditures -airport Personal services 8,700"2 8,762 - 6therservices and charges 343,238 165.978 177,260 Tctalexpenditures 352,000 175.740 177,260 Nef changes In fund ba;ance $ (52,000) 26,872 $ 78,872 Fund balance -Jury 1 Fund balance -June 30 $ 26,872 59 52 C4TY OF KENAI, ALASKA SENfOR CITIZENS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 Revenues: intergovernmental revenues: Federal -Choice Waive: Slate grant State gent- MAA5T Kenai Peninsula Borough grants Total Interogvsrnmentai revenue MlsceL'areous revenues'. United Way grants Rents and leases Donations Other Total miscellaneous revenues Total revenues Expenditures -social welfare services Personal services Supplies Other services and charges Total expenditures Excess of revenues over (under) expenditures Oilier financing sources (uses), Transfers in 7;ansfers out Net other fhnanc(ng sources (uses) Net changes in fund balance Fund balance -July 1 Fund balance -June 30 Final Budget Actual $ 1i2,14C $ 133,047 4,397 4,305 24.631 19,262 95,320 95,352 236,468 25? 988 21,000 21,000 15,000 ''~,s94 21,000 23,328 5,52D 57,G00 63,242 293 488 315,228 232,702 209,225 51,281 51,570 53,1.63 48,501 337, i46 309,296 (43,658) 5 932 3".,900 33,499 17,5)43 (13,351) 14,357 20,'46 $ 29,301` 26,06C 86,356 $ 112,436 60 53 Variance With Final Budget Positive Ne ative $ 20,907 (92) (5, 349) 32 15,498 (1,606) 2,326 5.520 6,242 29,740 23,477 (2891 4,662 27 850 49,59D 1,599 4'92 5,79'1 $ 55,38 i. CITY OF KENAI, ALASKA Cp UNCIL ON AGING SPEC{AL REVEN UE FUND SCHEDU LE OF REVENUES, EXPEND ITURES, AN D CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 ' Variance With Final Budget Final Positive '. Budget Actual Ne alive Revenues: Intergovernmental revenues: - State grants $ 108,549 $ 112,392 $ 3,643 Federa!grents 12.000 12,137 __137 Tota!intergovernmenialrevenues 120,549 Y24,529 3,980 Miscellar=eous revenues. ' In-kind support 10,850 10,850 - Donations 49,883 49,552 (331) Total miscellaneous revenues 60 733 60,402 (331) -~- Tatalrevenues 181,282 184,937 3,649 Expenditures -social welfare services: ' Social services. Personal services 57,189 55,975 1,214 Other services ar,d charges 9,225 9,225 ?oral social services 66,414 65,200 - 1,214 '-- Congregate meals: Personal services 30,158 28,987 .1,191 '. Supplies 25,000 24,997 3 Other services arc enarges 5,425 5,425 Tota;congregatemeals 60,583 59,389 1,194 - Home delivered meals, _., Parsonal services 34,545 33,011 1,534 Supplies 28,000 27"971 29 Total home dalivered meals - 62 645 60,982 1;563 i Transportation: Personal services 5,583 5,210 373 Supplies 7 503 7,501 ('r) '. Total transportafior, 13,083 12,711 372 Tota'~. expendiWres 202,625 798,282 4,343 ' Excess of revenues over (under) expenditures ;21,343) (13,351') 7,992 Other financing sources - ., Transfers in 17 543 13,351 ~,1 Net changes in fund balance $ (3,800) - $ 3,800 -' Fund balance -July T Fund balance -June 30 $ - 61 54 C(TY 6F KENAI, ALASKA WATER AND SEWER SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITU RES, AND CHANGES IN FUND BALANCE BUDGET ANt} ACTUAL YEAR ENDEp JUNE 36, 2067 Variance With Final Budget .Final Positive Budget Acfual Ne ative Revenues: Charges for seryIces: Residenflai wafer $ 317,80C ~ 3?2,99T- $ (4,803j Commercial water 140,000 .41,050 1,050 Residential sewer 92C,600 909,599 (11,001) Commercial sewer 387,700 369,014 (18;686} Hook-up fees 5,000 11,800 6,800 Other 18,000 26 432 8,432 Total charges for serviaes 1 789 100 1 77Q892 (18,20fS) Miscellaneous revenues: Interest 40,000 159,906 119,906 Other 34 558 18,989 4,431 Tcta! rniscsi!aneous revenues 54 558 1,'8,895 124,337 'Cotal revenues 1,843,558 1,945,787 106,125 Expentlitures -water and sewe r services: VVatec Persana! services 175,900 175,635 71 Supplies ~ 57,374 42,841 14,533 Other services and charges 242,927 174,936 67,991 Capital outlays 107,066 107,066 583,273 500,678 82,595 Expenditures chargeable irnm ctherfunds 4g,7C0 49,700 Total water 632,973 550,37$ 82,595 Sewer; Personal services 175,906 174,914 9g2 Supplies 20,621 15,396 5,225 tither services and charges 55,749 35,197 16,552 Capital outlays 208 431 206,431 458,707 435,938 22,759 Expenditures chargeable frorn other funds 30,D00 30.000 Total sewer 488,707 465,938 22,765 62 55 CITY OF KENAi, ALASKA WATER AND SEWER SPE:CfAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES iN FUND BALANCE BUDGET AND AGTUAL YEAR ENDED JUNE 36; E007 continued Expenditures - waterand sewer services. continued: Sewer trea±ment plant Personal services Supplies Other services and charees Expenditures charageable from other funds Total sewer treatment plant Total expenditures Excess of;evenuas aver (under) expenditures Other financing sources - Transfers in Final Budget $ `279,436 96,229 290,751 666,416 73,200 739,516 1,861,296 (17,635) S (f7&?8) Actual Net changes in fund balance rund balance - Juiy 1 Fund balance -June 30 63 56 $ 276,980 72,451 268,269 617,700 73,200 690,900 1,707,216 242,571 5,541 24$,112 1,800,329 R 148 441 Variance With Final Budget Positive (Ne ative $ 2,45& 23,778 22,482 48,716 _ 48,716 154,080 260,202 5,541 65 7 (7 CITY OF KENA1, ALASKA GENERAL GOVERNMENT LAND SALES PERMANENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 Revenues: Interest revenue Land sales Total revenues Excess of revenues over expenditures Other financing uses - Tranfers out Net change In fund balance Fund balance -July 1 Fund balance -June 30 Final Budget Actual $ 0,800 $ 7,96& 07 571 6,800 74,739 8,800 74739 (25,000) (7,1681 $ (18,200) 67,571 2,430,573 $ 2,49&,144 69 57 Variance With Final Budget Positive Ne ative 5 368 07 571 67,938 87.939 i 7,832 $ 85,779 CITY OF KENA1, ALASKA AIRPORT LAND SALES PERMANENT FUND SCHEDULE OF REVENUES, EXPENDIT URES, AND CHANGES EN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2007 Variance With Final Budget Original Final Positive Budgei Budget Actual {Negafiyel Revenues: Interest revenue $ 25,000 $ 25.000 8 "A,075 $ (1 G,925) land sales _ - 11,313 11,313 Total revenues 25,000 25,000 25,388 388 Excess ofrevenues over expenditures 25,000 25,000 25,388 388 Other financing uses: Transfers out (25,0001 (25000) (14,075) 10,925 Net ctlange in iunC balance $ - $ __ _ ____ 11,313 $ 11,313 Fund balance July 1 11.766.312 Fund balance June 30 S 11.777,625 55 58 4 STATISTICAL SECTION 60 City of Kenai Statistical Section This part of the City of Kenai's comprehensive annual £fnanciat report presentsdetailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall finanaia} health. Gonte nts Financial Trends These schedules contain Vend information to help the reader understand how the City's financial performance and welt-being have changed over time. Table I Nef Assets by Component Table II Changes in Nei Assets Table III Governmental Activities Tax Revenues by Source Table IV Fund Balances of Governmental Funds Table V Changes in Fund Balances of Governmental Funds ~- Table VI General Governmental Tax Revenues by Source Revenue Capacity ,. These schedules contain information to help the reader assess the City's most significant local revenue source, the sales Yax. 7abie VII Taxable Sales by Category TabEe Vill Sales Tax Rates -Direct and Overlapping Governments Debt Capacity _ These schedules present information to help the reader assess the affordability of the Clty's curranf level of autstanding debt and the City's ability to issue additional debt in the future. Table IX Ratios of Outstanding Debt by Type ~• Table X Computation of Direct and Overlapping Debt Table XI Legal Debt Margin Informaton ~~ Demographsc and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment wifhin which the City's financial activffies take place. .: Table XII Demographic and Economic Statistics Table Xlli. Principal Employers Operating Information These schedules contain service and infrastructure data to help the reader understamd how the information in the City's financial report relates to the services the government provides and the activities it parfonns. Table XIV Full-time Equivalent City Government Employees by Function Table XV Operating Indicators by Function Table XVI Capital Asset Statistics by Function Sources: ttntass otherwise noted, the information in thesaschedufes is derived from the comprehensive anwal financial reports for the reievanf year. 671 Pace 58 69 79 72 73 74 75 76 77 77 78 79 8g 81 82 83 CiTy of Kenai Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) (amounts expressed in ihousandsj Governmental activities: Invested in capital assets, net of relatetl debt Restrlcted Unrestrioted Total governmental activates net amounts Business-type activities: invested in oapita{ assets, net at related debt Restricted Unrestricted Total buetnass-type acfivites net assets Primary government frvestad in capital aese~s, net of related tlebt Restricted Unrestricted Total primary government net assets TABLET 2003 2C04 2005 2006 2001 $102,448 $101,414 $101,964 $102,452 St69,806 13,812 13,887 14,095 14,4H8 14fp8 16,857 17,060 16,681 15,699 17,671 $133,117 $?32,361 $132,680 $132,619 $141,955 $5,587 $5,396 55,196 $4,978 $3,337 2,646 2,585 2,439 2,512 532 $6,233 $7,981 $7,635 $7,496 $3,869 51p8,035 5106,8?0 $107,100 $107,430 5??3,143 13, 812 13,887 14, 095 14,468 14,478 19, 503 19,645 19,120 18,211 18,203 $141 366 $14p,342 $140,315 $149,^.09 $145,824 Note: Data for years prior to GASB 34 implementation is unavailable; therefore, only five years of data is being presented. ~G City of Kena} TABLE tl changes in Net Assets Last Five Fiscal Years (accrual basis of accounting} Expenses Governmental activities: "" General government Public safety Puoficwoncs Parks, recreation, and cuiturel Water and sewer servioes Airport Interest on long-term debt Social welfare services Total governmental activities expenses 8usineas•type acdvldes: Airpon terminal ' Senior housing To[al business-type arnivlties ', Total primary government expenses Program Revenues Gavernmenta4 activides: Charges for services: General government Public safety Public works Parks, recreaton, and cultural Water and sewer services Airport Interest on long-term debt Social welfare services Operating gents and contribution Gapital grans and wntributions Total governmental ectiviites program revenues Business-type activiites: Airpor; termine Senior housing Ooeating grants and wntrbution Capital grants and contribvdons Total business-type activititieS program revenues Total primary government program revenues Net (expenses)/revenue Government activities 8usitfess-typo activities Total primary government net expense 2003 20OA 2005 2006 2007 $ 1,113,692 $ 862,674 $ 1,147,618 $ 1,239,137 $ 1,388,573 9;192,795 3,116,020 3,991,072 4,365,553 4,53$,951 2,168,212 1,928,409 2,290,11d 2,717,511 2,394,624 1,447, 484 1, 247, 500 1, 396, 794 1, 483, 932 1, 576, 563 1,945,498 1,77A,176 1,840,935 1,957,032 2,844,633 2,084.722 2,185,047 2,463,729 2,511,021 8,415,986 1$9,762 11,962 4,012 - - 452,778 416,885 459,641 505,230 528,348 12,534,783 17,653,873 13,533 913 14,759,416 18,485,47$ 503,431 453,410 477,593 506,006 - 297.6E4 327,863 48G,213 354,514 364,688 801,095 781,273 957,8'.2 860,520 364,608 $ 13,335,878 $ 12,436,145 $ 1449T 725 $ 15,6?9,938 $ 16,650368 $ 162,699 $ 54,988 $ 153,378 $ 366,530 $ 263,372 285,270 345,632 338,981 315,570 998,147 418,776 242,05e 312,140 592,461 290,535 208,771 120,408 193.296 193,186 216,473 1,294,83& 1,433,681 1,621,036 1,826,621 1,78$881 43?,159 418,927 504,503 463,795 1,^,36,245 EOA28 - _ • 191,828 187, 614 110,251 1 14,607 123,644 792,646 802,467 794,647 1,035,382 1,198,362 794,157 1,010,956 2.544,629 2.442,601 8,06x426 4560,1 i0 4,81$,729 6673063 7350753 13,501085 285,G?8 275,9?3 294,251 367,971 - 240,970 251,881 255,396 275,185 279,102 • - 800 714 30,720 2,737 525,988 558,514 549,647 646,633 279,81& $ 5,186,09& $ 5,775,243 $ 7,122,710 $ 1,997,386 $ 73,780,901 $ (7,874,'073) $ (7,037,144) $ (6,980.850) $ (7,408,683) S (2,984,393) (275,107) (222,7597 _ (x06165} (213,887} (84872) $ (8,149,760) $ (7,269903} $ (7369,016) $ (%622550) $ (3,069,285) ~3 City of Kenai TABl61f Changes in Net Assets Las[Five Fleca4 Years (accrual basis of accounting) continued 2003 2004 20C5 2006 2007 Geireral Revenues and Other Changes in Net Assets Gavernrnentel adlvivities: Taxes: Property taxes $ 1,424,644 $ 2A26,789 $ 1,900,768 $ 2,024,502 3 2,156,373 Sales taxes 3,953561 3,790,644 4,090,468 4,404,?58 4,891,812 Sales of capital assets - 74 700 84,954 452,766 105,320 Invesfinent earnings @68,431 334,166 >89,727 880,307 1,865,472 ~: Tranfers 69,94E 54,807 - - 2,062,870 - Fund conversion 1,502,513 Tata}governmentel activities 6,436,582 6,285,?00 6,8'05,93^, 7,761,733 12,320,360 easiness-type activities , Investment earnings 84,766 26,899 62,765 68,411 29,312 Tranfera (69,946} (54,BOTj (2,082,870] Funtl ccnvar&ion (1,502,513} 7o±al pueinea-type actlviPias 14820 (28,902) 62765 66 Ati (3,5's6,071} ,,,, Total primarygoverrmant $ 6,461,402 $ 6,252,166 $ 6,@28,696 $ 7,830,14E $ 8,784,28@ Changes in Net Assets Governmental acliviites $ (600,562} $ (756,044) $ (94,919) $ 353,070 $ 9,335,967 BusNess-Pype activities (207,93@) (251,661) (345,400) (145476) (3,620,9x3) Total primary government $ (808,601) $ (1,007,7D5) $ (440,319) $ 207,594 $ 5,716,020. Note: Data far years prior to GASB 34 implementation is unavailable; therefore, only five years o` date is being presented. 764 City of Kenai Table i!i Govemmentat Activities Tax Revenues by Source ~~ Last Five Fiscal Years (accurai basis of accounting) Fiscal Year property Tax Sales Tax Total 2003 $1,424,644 $3,953,561 $5,378,205 2004 2,026,789 3,790,644 5,817,433 2005 1,900,788 4,090,488 5,997,256 2006 2,024,502 4,404,15$ 6,428,660 2007 2,156,373 4,631,812 6,788,185 Note: Data for years prior to GASB 34 implementation is unavailable; therefore , only five years of data is being presented. 0 C q 0 ~~ ~~ m ~ VN OI N O ~ g °o,m m rv m ~ n m m o n m~ W l9 M N tl m tl W m N ~- m t~ O V! ~ ~ i p 4l W, M ~ v`t r . ~ m N m ~ C N '' ~ ~ ~ M ~ ~ ~) N etl ~ NN ~ M1 N O { Y ~ m ^ ~ N a O , ~ N V i M ~ W 0 C ~ ~~ m [h d p N pp ~ ~ m ~ p~ p O ~rv ~ N ~ N OQ ' q N l ~ _ ~ . ~ m ~ ~ ~ w ... gm~ as ~e` ~ o fO m m '~O' ~ N . - ry " O m N m m hm tp ` N w ~w w w~ ,... 9 C + n N m~ E v~ a ~ o ~ w~ i ~ w ~ ~ , r I u Y ~ $ 0 t9LL a' t' w ° . ~ro m + ~ ri m ~ rv . k ~ V d~ W u7~ %NQ N ~ ..... q ° OJ F. [.~ ~pp ~ 0 D N N _ J~ M ° l N ^ .- o I 6i ~L~' . ~ tG ~ F m n N C O tR N+ IfA LL ~' y ' N ~ OaN D b l~ 6 ~ p ~ I b ~ ~ M1 O ~ Q ~ n M ~ x m O ~~ ~ Kit ~ 9 ~ w 4 , i W b? (9 ... 2 - mN O cM1 a m N V1 m (~ P, ~m P b ap tq N Y) ~ 0 {7 M1 O ~ N N~ N. N ' W W K W m~ v rn d00~~ ~ c i.... F N ~, i 0 0 M N O 6 ~ mn o °r ° Nm~ I 3 rn Mai o e > N K rv c , ~ py ~ . € ~ ~azq = g~ € _~ o c c q ~ : E ° ~ c > ci ~.~~G sa 8 ~~ 9 ~ ~ -«- ' ~ v m m ~~o~ gCKD a u h r O 4 ~ ~6 1 1 N a IL ~ m C G G G ~ O u n U~ Y o v `o ~ °~ Y m m m O ~ u L ~' ~ Id ~ U ~ p K R CJ9 'J d W C L O ~ E N u N M n (P mr Lry tO tp m O n. m n O tp C N N n W Nne-Mh L7 ~'f N M O ~ G tpm O M O O O a r t`N ANC ' q~, O ~ (pp ( ' N h ~ ~ (pp ( ~ h ~ 0 ~ p h M a ~ 'D N n C M O 0 0~ m n ~- V h h to O 1 a lt') 1 .. t7 N N ca~tt) M "''QNrrN m N N N N to MmMmm +~ M Q N O rn V ~ 6 N(O n P M 9N. -I + O i d' V N L7 V In O ~ N 0I 1n QS m N ~ ~ ifs OJ O a a'mmm 'c n vdui of m r"i o '= 9 M N O C Kl ~ fG M V' f p h f D O N W' (D r N M [7 M fp 'C I(j N 4+1 W (D O 1 N O M 4l fO r s( N r r ~ C'J t6 - r 69 m M b h to .~ MN O CO+'sOON iD it O h ffl 1fi m Y M Q a M N M Q a M a h O h In V ~ O O M h f D 0 (p 6~ V M (O m O ~ h W R M ~ f ~ ~ 0 m b i ' a O N h 4'~ ro if} fG in i (P h V N n N N (p e' t(j r M h h u i M f9 fp R m O [Q < O N a M r O r n N M N 1~ C a xy C^~ O i[1 m 9 O n D m tD M N (D M N V N n W O fU a C N _ N m m O N M Yf ~ V a MN m tp m m 9s r N a{ ~ ip V r n ~h ~-N M1~m blD O m tO a O t7 O h: Yb M N O M K C ~- 4 M O ~- h itf N 1 N M e- < N r O'i '- ~- ~- v ~- f9 M MhQi O app ON M 0 MamnMnhfO Oa ' mN OON~-~-N r h N M t+s N N M M N f p N N N M V s O ~ n t"5 M O M(p r ~p ~ O nM M K~r~ N6 h C+ N try CO ti)6 9 May (P a+n Uf t0 W M ~ a V C Ot ttf Ol to d' I V MN~P9.- N W '- M ~- V' N ~- M r .- ~- N (9 mi v ° ~ aa mN rn M r m °' w m o m n a i O!~~ nN i OJ in u i V i [O N CJ M~-a!~tR f~} n rv Ln V N O Q PO O IO ^ M M1OMM<M O 6s t[) N mmaN m anN6OM m m i~ (p M f O M[ p N a f~ 3 n N N M V m R N h r Q 4 "' M Ki ~ M r r r r N n !~ aaamu~ l9 m9mamvoMm ~- w rn MNar 4 N O N N N N wc' aDaMm a s O W N M a> e i f y m LM17 n Oi a WJ M Oi O m N O 'S :O O V5 9 M O h' Y) tD O< P m US n O h N M m In M SO I m N N U~ SV N r M N V h' N h 6I n ^' Mr NM T r C'1 rr rr r' N 64 NMMON O M1~nOM04nF m O: O P (O 1" V J O nQm6] P O m N f 0 N ~ ~ N M! m (~cM1O <OMaN O m a K') N 6) <p m Oh NN N N hOSa ~ O (V X0 0 «i pp m O~ h h LLS m a O^ W h a N M n M N n V i[ f? C ? ~- e y r r M O N N v N e- M N ~ M N r M r r r r M M ~ m oo m fn a inroo moa o m in o M v n us wo vs N9o.-m Moh v> v rn H h O h, r fD C') m N M C r N ro F: m in n NC] hWW O O'Qh q' q'r 46 ro N N fG M M NN tp N YS N In r r h r mYJN to r' MmM Q O Ys r r N M n N m km W a r i~'1 C'1 v4 Ch N v' M r r v' ~- M IM Ir a- W a ~ ~ O (~ r y 'V'h C] fDam WN Nm m h OS O [PMN in m MLON inM mtD C(O W OS f? " ~ 6s pi n It1 (O M O [a7 'tl' In N N h- +Y' m' tp m W iI M O itI C t n W M V M Q P N < F Y M V m m M O r M h M a h ? tD t o N -MN~-N N~ N.-v~.+. ~ f~ M N N _~ N .~. O ~ v N ~ V N N ~ U Sb+ pNj a `[ v QI '> C ryC m W N N U `Ni ~ v y ~ U 3 G E N K O d ~ N= O _C A 6 m (p N N _O b 'P y D N N N U T pp N '~+ m ~ L>>' N% N S .L'y `i N ~ v U w N ~. .S G O iC M~ N N m~ff6a~~'c ~Rh3°~ 3ad~ °' m~~K w m~ y o m=_, r c Z~ 'c o m a± s~ ~' c w>> `m m° o m° an d N °c `~ m o r N p gau;S ~Om o, (`14.dR'SQMUa]N ~2. dhhm " nc ~ t°- to f~- w'j~/ O 1-° z O 6! City of Kenai TA6LE Vl General Governmental Tax Revenues by Source Last Ten Fiscal Years (modified accrue{ bas is of accounting) Fiscal Year Ended Total Property Sales June 30 Taxes Taxes Tax '' 1998 $ 4,844,725 $ 1,185,049 $ 3,459,676 1999 4,765,818 1,232,748 3,533,070 2000 4,988,755 1,288,012 3,70D;743 2001 5,128,31$ 1,319,079 3,809,239 2002 5,502,232 1,322,042 4,180,190 2003 5,383,764 1,410,203 3,953,561 2004 5,838,820 2,048,176 3,790,644 2005 6,002,844 1,912,376 4,090,46$ 2006 6,423,361 2,019,203 4;404,158 2007 6,792,499 2,160,687 4,631,812 79 68 .j, ~ ~ D~ N r p~ c r N r r SC O y N a ro r .. C ~ D~ N +- O> F r N r r O N o ~ O m N .- r N r .- G~ ~ c O N O ~ D~ N r ~ r N <- r ~ O N ~ ~ D~ r .- m r .- N r r O N ... D ~ p~ r .- m s N r r ~ O N C O r'"i- , G O N O W r .- ~ r N r r ( O ~ ~ LL ` O >. R Q m ~' ..' ~ U ~ p ~ D~ r r D r r N r q O D r LL N N ~ N ~ ~ ~ tl F F- rn oro e- .- rnrr Nro (~ N N ~ (P tJ r Q J _~ A U W O~ ..- ~ W c r N r O ~ N W A N w h v O O N Y N C ~ LL ~ ~ ~ N N 41 ~ yy ~ N U _ y ~ = y G m j Q ~ E f '" ~ y d u' in ~ c ` m o o ~ ~ Y 'o o inc Qn az ~z ~ ~ anKi~U~ an d ' E .' ~»+ TG d ii o ~. y CL Z 83 73 N C N E C a r U N O U - 0 U5 (~ Ik~nag,_ ~1®ttr~~~ C~ ®., Inc. Certified Public Accountants & Consultants mar (UIC~a`su~t~f'p`~fttlOC`~ an Intlepan'r~nth~ Ovmed Membar C~;~ices .n Anchorage & Kenai IndependenC Auditor's Report on Compliance With Requirements Applicable to Each Maior Program and on Internal Conerol Over Compliance in Accordance with OMB Circular A-133 Honorable Mayor and Members of the City Council CiCy of Kenai, Alaska Compliance We have audited the compliance of City of Kenai, Alaska with the types of compliance requirements described in the U. S. Office of Management and Budget (OMB) Circular A-133, Compliance Supplemeru that are applicable to each of its major federal programs for the year ended June 3Q 2007. City of Kenai, Alaska's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of City of Kenai, Alaska's management. Our responsibility is to express an opinion on City of Kenai, Alaska's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Kenai, Alaska's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Kenai, Alaska's compliance with those requirements. In our opinion, City of Kenai, Alaska complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2007. 1 3601 "C" Street, Suite 600 ~ Anchorage, Alaska 99503 • (907) 278-8878 ~ Fax (907) 278-5779 ~ www.mec-epa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Internal Conh•ol Over Compliance The management of City of Kenai, Alaska is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered City of Kenai, Alaska's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Kenai, Alaska's internal control over compliance. A control deficiency in an entity's internal control over compliance exists when Che design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detecC noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a federal program such Chat there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the firsC paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai, Alaska as of and for the year ended June 30, 2007, and have issued our report thereon dated November 20, 2007. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in Che audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 2 Honorable Mayor and Members of the City Council City of Kenai, Alaska This report is intended solely for the information of the City of Kenai, Alaska's management, Honorable Mayor and City Council, and appropriate federal agencies, and is not intended to be and should not be used by anyone other than these specified parties. ~7n<~w.~~.., ~o~°i,i.~ee ~ ~. Anchorage, Alaska November 20, 20'7 CITY OF KENAI, ALASKA Schedule of Expenditures of Federal Awazds Yeaz Ended Lune 30, 2007 Federal Grant Title DF.PARTMEN'I OF HEALTH AND HUMAN SERVICES Passed through the State of Alaska Department of Health and Social Services: Nutrition, '[Yansporta[ion, and Support Nutrition, Transportation, and Support Passed through State of Alaska Department of Administration - NSIP-Kenai Senior Services Total Department of Health and Human Services DEPART'MENT' OF HOMELAND SECURITY Assistance to Firefighters Passed Chrough the State of Alaska Department of Military and Veteran Affairs - Homeland Security Program Total Department of Homeland Security DEPARTMENT OF THE INTERIOR Passed through the State of Alaska Department of Natural Resources - Kenai Soccer Park DEPARTMENT OE LABOR Passed through the State of Alaska Department of Labor - MASST-Mature Alaskans Seeking Skills'Praining llI:PARTMENT OF TRANSPORTATION Airport Improvement -Environmental Assessment for Runway Project Airport Improvement - Aitport Terminal Modifications Airport Improvement- Update Airport Master Plan Phase 2 Airport Improvement -Construct Parallel Taxiway Airport hnprovement -Runway Safety Area Phase 2 Passed through the State of Alaska Department of Transportation and Public Facilities: AK Highway Safety Grant-Training AK Highway Safety Mini Grant AK Highway Safety Grant-Seat Belt AK Highway Safety Grant-Seat Bel[ 2 AK Highway Safety Grant- UUI AK Highway Safety Grant- DUI AK Highway Safety Grant Total Department of Transportation INSTYTUTE OF MUSEUM AND LHiRARY SERVICES Passed through the State of Alaska Department of Education and Early Development - Library Continuing Education Grant Total Pederal Financial Assistance Catalog of Federal Domestic Total Grant Assistance Grant Number Number Award 607-07-111 93.044 35,716 607-07-111 93.045 53,508 607-P.4-108 EMW-2005-FG-00556 34021 02-00383 2007-420 3-02-0142-3002 3-02-0142-3103 3-02-0142-032-2004 3-02-0142-034-2005 3-02-0142-035-2006 Dare Program 410 K8 07-1t-03 402PT07060/ 406K4071002 154AL 07-14-01 154AL 06 Ol 02 J2-2006-03-07 CED-07-747-OS Federal Share of Expenditures 35,776 53,508 93.053 12,000 12,137 101,361 97.044 61,513.00 3,065 97.073 15,245 15,245 t 8,310 15.916 326,548 85,706 17.235 19,282 19,282 20.[06 356,180 73,581 20.106 986,023 182,099 20.106 350,489 15,973 20.106 2,042,075 392,460 20.106 8,432,329 6,254,371 20.600 2,000 2,000 20.600 7,433 1,239 20.600 2,140 1,605 20.600 6,960 3,363 20.600 12,675 5,541 20.600 2,022 1,519 20.600 25,200 93 6,853,844 4-5310 1,000 1,000 $ 7,079,503 4 CI1 1 ®H` 19B'~NAIy ALA~.J d>(1 Schedule of Findings and Questioned Costs Year Ended June 30, 2007 AUDIT RESULT I. Summary of Auditor's Results: Financial Statements: Type of auditor's report issued: Unqualified Internal control over financial reporting: - Material weaknesses identified? _yes x no - Significant deficiencies identified that are not considered to be material weaknesses? _yes x none reported Noncompliance material to financial statements noted? _yes x no Federal Awards: Internal control over major programs: - Material weaknesses identified? _yes x no - Significant deficiencies identified that are not considered to be material weaknesses? des x none reported Type of auditor's report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? _yes x no Major programs: CFDA Number Department of Transportation 20.106 Dollar threshold used to distinguish between Type A and B pro~n-ams Low-risk auditee II. Financial Statement Findings III. Federal Awards Findiugs and Questioned Costs Program Airport Improvement Program $300,000 Yes None noted None noted 5 ciTY of xENai, ALasx~ Corrective Action Plan Year Ended June 30, 200'7 There are no current year findings; therefore, no corrective action plan is requited. iu~ a., L+®1~~'~l~ 0., Inc. Certified Public Accountants & Consultants 5~~ i~cG[acrey~et}~~~r An Independently Owned Member Offic©s !n Anchorage & Kenai Independent Auditor's Report on Internal Control Over Financial Reporting_and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and Members of the City Council City of Kenai, Alaska We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai, Alaska as of and for the year ended June 30, 2007, which collectively comprise the City's basic financial statements and have issued our report thereon dated November 20, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audiC, we considered City of Kenai, Alaska's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, buC not for the purpose of expressing an opinion on the effectiveness of Che City of Kenai, Alaska's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Kenai, Alaska's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A signiftcant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will noC be prevented or detected by the entity's internal control. A material weakness is a significanC deficiency, or combination of significant deficiencies, that results in morethan a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. 7 3601 "C" Street, Suite 600 < Anchorage, Alaska 99503 • (907) 278-8878 a Fax (907) 278-5779 m www.mec-epa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would noC necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Kenai, Alaska's financial statements are free of material misstatement, we performed Cests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information of the City of Kenai, Alaska's management, Honorable Mayor and City Council, and appropriate federal agencies, and is not intended to be and should not be used by anyone other than these specified parties. Anchorage, Alaska November 20, 2007 8 ikuna, GOtt~`~~~ ~®., Inc. Certified Public Accountants & Consultants R~f~ IV~Evzigljt~'~ i'~j~'i`~p4`r~. D,n irdepentlentlp Ownn(Member Offices in rtnshorxge & Kenai Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Com~li-ante in Accordance with the State of Alaska Audit Guide and Compliance Supplement for State Single Audits Honorable Mayor and Members of Che City Council City of Kenai, Alaska Compliance We have audited the compliance of City of Kenai, Alaska with the types of compliance requirements described in the State of Alaska Audit Guide mu1 Compliance Supplemenu for State Single Audits that are applicable to each of its major state programs for the year ended June 30, 2007. City of Kenai, Alaska's major state programs are identified in the accompanying schedule of state financial assistance. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major state programs is the responsibility of City of Kenai, Alaska's management. Our responsibility is to express an opinion on City of Kenai, Alaska's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and Che State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the State of Alaska Audit Guide and Compliatce Supplement for State Single Audits require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state program occurred. An audit includes examining, on a test basis, evidence about City of Kenai, Alaska's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of City of Kenai, Alaska's compliance with those requirements. In our opinion, City of Kenai, Alaska complied, in all material respects, with the requirements referred to above that are applicable to each of its major state programs for the year ended June 30, 2007. 9 3601 "C" Street, Suite 600 • Anchorage, Alaska 99503 • (907) 278-8878 ^ Fax (907} 278-5779 e www.mco-cpa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Internal Control Over Comnliance The management of City of Kenai, Alaska is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulaCions, contracts, and grants applicable to state programs. In planning and performing our audit, we considered City of Kenai, Alaska's internal control over compliance with requirements that could have a direct and material effect on a major state program in order to deterrnine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Kenai's internal control over compliance. A control deficiency in an entity's internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a state program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a state program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a state program that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a state program will not be prevented or detected by the entity's internal control. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of State Financial Assistance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai, Alaska as of and for the year ended June 30, 2007, and have issued our report thereon dated November 20, 2007. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying schedule of state financial assistance is presented for purposes of additional analysis as required by the State of Alaska Audit Gnide and Compliance Supplement for State Single Audits and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all mater7al respects, in relation to the basic financial statements taken as a whole. 10 Honorable Mayor and Members of the City Council City of Kenai, Alaska This report is intended for the information of the City of Kenai, Alaska's management, Honorable Mayor and City Council, and appropriate state agencies, and is not intended to be and should not be used by anyone other than these specified parties. ~-z.~,~~~~, ~o~.~ee ~ ~. Anchorage, Alaska November 20, 2007 11 CITY OF KENAI, ALASKA Schedule of State Financial Assistance Year Ended June 30, 2007 Total State Grant Share of Name of Award Grant Number Award Expenditures DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT *Street Improvement Program 03-MG-026 $ 142,569 85,216 *Shop Site Remediation Project OS-RR-005 151,314 85,273 *Kenai Public Improvements 06-DC-127 290,000 75,658 *Kenai Road and Sewer Improvements G6-DC-128 790,000 571,191 Public Library Book & Computer Equipment 07-DC-230 20,000 20,000 Police Department Lockers 07-DC-229 40,000 39,684 *Municipal Energy Assistance Program - 340,760 340,760 *Kenai Water and Sewer System Improvement Projects 4/96-003 355,976 50,627 Shared Fisheries Business Tax na 4,546 4 546 Total Department of Commerce, Community and Economic Development 1,272,95 DEPARTMENT OF ADMINISTRATION *State PERS Relief 235,223 235,223 DEPARTMENT OF ENVIRONMENTAL CONSERVATION *Wellhouse 4 47547 1,697,000 50,628 DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT Public Library Assistance PLA-07-747-40 6,250 6,250 Interlibrary Cooperation ILC-07-747-148 1,212 1,212 Total Department of Education and Early Development 7,462 DEPARTMENT OF HEALTH AND SOCIAL SERVICES and Support Transportation Nutrition 607-07-I Ii 15,745 15,745 , , DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Wildwood Correctional Center Waste System Upgrade 50783 480,000 30,760 Airport Environmental Assessment for Runway Extension 56842 11,873 2,453 Airport Terminal Modification 57160 33,007 6,070 Update Airport Master Plan -Phase 2 58363 #2 9,224 420 Construct Parallel Taxiway 58881 55,111 8,223 *Runway Safety Area Phase 2 53305 221,903 164.590 'Fora] Department of Transportation and Public Facilities 212,516 DEPARTMENT OF REVENUE Liquor Licenses na 18,200 18,200 Electric and Telephone Shared Revenues na 30,638 30,638 Fisheries Business Tax na 38,088 38,088 Total Department of Revenue 86,926 Total State Financial Assistance $ 1,881,455 ti Major program 12 ~~ttrell ~% !a®., Inc. Certified Public Accountants & Consultants ~` ~t9cGladrev~ett~v€l~ k Ar, Ioc~hpendenHy OwneG Membu Cftic2s in R~chorage & Karai Independent Auditor's Report on Internal Control Over Financial Reporting and on Com lin ance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govenznzent Auditing Standards Honorable Mayor and Members of the City Council City of Kenai, Alaska We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Kenai, Alaska as of and for the year ended June 30, 2007, which collectively comprise the City's basic financial statements and have issued our report thereon dated November 20, 2007. We conducted our audit in accordance with auditing standards generally accepted in Che United States oP Ameziea and the standards applicable Co Financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Kenai, Alaska's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Kenai, Alaska's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Kenai, Alaska's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, Co prevent or detect misstatements on a timely basis. A siSnificant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will noC be prevented or detected by the entity's internal control. A material weahzess is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by Che entity's internal control. 13 3601 "C" Sn~eet, Suite 600 ^ Anchorage, Alaska 99503 m (907) 278-8$78 ~ Fax (907) 278-5779 • www.mco-epa.com Honorable Mayor and Members of the City Council City of Kenai, Alaska Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Kenai, Alaska's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Stmadards. This report is intended solely for the information of the City of Kenai, Alaska's management, Honorable Mayor and City Council, and appropriate state agencies, and is not intended to be and should not be used by anyone other than these specified parties. ~n.~.c~~~.-, ~o~`~.-ee ~ ~. Anchorage, Alaska November 20, 200'7 14 Suggested by: Mayor Porter CITX dF KLIdIr.I pRDINAPI~E NC3. 2268-007 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 3,15.040 TO PROVIDE THAT I) A HEARING SHALL BE HELD TO DETERMINE WHETHER A DOG KENNEL LICENSE WILL BE GRANTED OR RENEWED; AND 2) PROPERTY OWNERS WITHIN 300 FEET OF A PARCEL THAT IS THE SUBJECT OF A DOG KENNEL LICENSE APPLICATION SHALL BE NOTIFIED OF THE APPLICATION AND THE DATE, TIME AND PLACE OF THE HEARING; AND 3) SETTING OUT THE APPEAL PROCESS FOR ANY AGGRIEVED PARTY. WHEREAS, the Kenai Municipal Code 3.15 (KMC 3.15) requires a person keeping more than four dogs over the age of four months to get a kennel license; and, WHEREAS, KMC 3. IS does not roquire neighboring property owners to be notified of a pending kennel license application or license renewal; and, WHEREAS, KMC 3.15 does not provide for a hearing to be held to determine whether a dog kennel license should be granted or renewed; and, WHEREAS, because of the impact that a dog kennel can have on neighboring property owners, they should be provided notice of dog kennel license applications or renewals, and the date, time and place of the hearing; and, WHEREAS, any party aggrieved by the decision on whether or not to issue a dog kennel license should be allowed to appeal to the Kenai City Council under the provisions of KMC 14.20.290. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAi, ALASKA that KMC 3.15.040 is amended as follows: 3.15.0€0 Flearings-Appeals. (a) [A PERSON AGGRIEVED BY THE GRANTING, LIMITING, CONDITIONING, OR DENYING OF A LICENSE UNDER THIS CHAPTER MAY, WITHIN FIFTEEN {15) DAYS OF THE ACTION COMPLAINED OF, APPLY FOR A HEARING BEFORE THE CHIEF ANIMAL CONTROL OFFICER OR HIS DESIGNEE. UPON TIMELY APPLICATION UNDER THIS SUBSECTION,) T(T]he Chief Animal Control Officer or hisJher designee shall hold a hearing to determine whether the license should be granted, renewed, conditioned, limited, or denied. Notification shall be mailed to real property owners on the boroueh assessor's records within a three hundred foot (300')~eripherv of the copy of the decision shall be mailed to all notified property owners, all persons testify or submitting comments and the applicant. 75 fib} A[THE] person aggrieved by the ~rantina, limiting, conditioning, or denyine of a license under this Chapter, may appeal the decision of the Chief Animal Control Officer to the City Council, under KMC 14.20.290, within fifteen (151 [THIRTY (30)] days [WHOSE DECISION SHALL BE FIN'ALj. jJ [($)]Before revoking a license under this chapter, the Chief Animal Control Officer or his [or herj designee shall hold a hearing to determine whether the license should be revoked. The party aggrieved may appeal to the City Council within thirty (30) days of the decision whose decision shall be final. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of November, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Frees, City Clerk Introduced: November 7, 2007 Adapted: November 2I, 2007 Effective: December 21, 2007 76 SUBSTITUTE Suggested by: Administration CITY ®F KENAI ®32DINA.NCE ISO. 2268-2030? AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 3.15.040 TO PROVIDE THAT 1) A HEARING SHALL BE HELD TO DETERMINE WHETHER A DOG KENNEL LICENSE WILL $E GRANTED AND 2) PROPERTY OWNERS WITHIN 300 FEET OF A PARCEL THAT IS THE SU&IECT OF A DOG KENNEL LICENSE APPLICATION SHALL BE NOTIFIED OF THE APPLICATION AND THE DATE, TIME AND PLACE OF THE HEARING; AND 3j SETTING OUT THE APPEAL PROCESS FOR ANY AGGRIEVED PARTY. WHEREAS, the Kenai Municipal Code 3.15 (KMC 3.15) requires a person keeping more than three dogs over the age of four months to get a kennel license; and, WHEREAS, KMC 3.15 does not require neighboring property owners to be notified of a pending kennel license application or license renewal; and, WHEREAS, KMC 3.15 does not provide for a hearing to be held to determine w>hefher a dog kennel license should be granted; and, WHEREAS, because of the impact that a dog kennel can have an neighboring property owners, they should be provided notice of dog kennel ?ieense applications or renewals, and the date, time and place of the hearing; and, WHEREAS, any party aggrieved by the decision on whether or not to issue a dog kenne? license should be allowed to appeal to the Kenai City Council under the provisions of KMC 14.20.290. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 3.15.040 is amended as outlined in Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of December, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Fntroduced: November 7, 2007 Adopted: December 15, 2007 Effective: January I5, 2008 77 Chapter 3.15 LICENSED FACILITIES Sections: 3.15.010 Licenses required. 3.15.020 Licensing procedure. 3.i5A30 License revocation. 3.15.040 Hearings-Appeals. 3.15.050 Standards for operating facility. 3.15.010 Licenses required. No person may operate a kennel facility without having a license therefor issued pursuant to this chapter. 3.15.020 Licensino procedure. (a) Application for a license under this chapter shalt be to the Chief Animal Control Officer. The application shall include: (1) The name and address of the applicant; (2) The number and breeds of dogs to be kept in the facility; (3) The type of facility the applicant proposes to operate under the license, and a description of the proposed facility. An application for a Iicense for a kennel to be used for commercial purposes shall include a copy of a current Alaska Business License for the operation of the kennel and a Borough Sales Tax application or registration number; (4) 1"ha address of the premises where the applicant proposes to operate under The license, and the name and address of the owner of the premises; (5) A diagram of the premises on which the applicant proposes to operate under the license. The diagram shall show the lot lines and the location and dimensions of yards and struotures an the premises where the applicant proposes to operate under the license, designate the parts of the premises on which dogs will be kept, and show the location and use of structures of adjacent lots. The diagram need not be based upon a formal survey of the premises. (~ The Iicense foe required by IC1vIC 3.05.'100; (7) Froof of a current rabies vaccination far each dog kept in the facility that is over the age of three months. (b) The Animal Control Office shall not issue a license under this chapter to any person who has been convicted of neglecting an animal or cruelty to an animal. SubstiteYe Ordi=tanoe iJu. 2258.2007 Q ll30/07j AttACtiment A Page 1 ofi5 78 ~rV'lfaye Wltf'! a Past Gct~ Wct~t . ,~~, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 /Fax: (907) 283-3014 - '- www.ci.kenai.ak.us theu~uf KENAA~ SKA ~EM®RL~N~UM TO: Rick Koch, City Manager FROM: C' ji96 Cary R. Graves, City Attorney DATE: December 5, 2007 RE: Kennel Ordinance-Substitute Ordinance 2268-2007 Here is the language we discussed to add to Paragraph (j)1 of KMC 03.15.020 on Page 80 of the packet. The next to last sentence of that paragraph reads: Notification of the renewal application shall be mailed to real nropertv owners on the boroueh assessor's records within a three hundred (3001 foot periphery of the parcel affect. The new language would add the following: if the renewal contains a change in the number of dons, a significant change in the terms and conditions of the permit or if the Chief Animal Control Officer determines it is in the best interest of the public If this change were added, the notices would still be sent out for the initial application, but thereafter only if one of the above conditions were met. Otherwise the renewal would be handled administratively. As you know, we considered including a change in the breed of dogs kept in the conditions. However, we did not keep it in because of the scenario where (for example) a kennel owner changed a Black Lab for a Golden Retriever. While that is a change in the breed of dog kept, it should not be a material change in the kennel so we felt it should not automatically trigger renewal notices. If a kennel owner were (for example) going to change the breed of dogs from a small breed to Mastiffs or Great Danes that could very well be a significant change in the kennel operation. However, in that case the Chief Animal Control Officer could send out renewal notices if he/she determined it was in the best interest of the public under the new language. Please let me know if you have any questions. ~ In legislative forrnaY the paragraph is shown as I1~ [F] on page 80, ~rV'lfaye Wltf'! a Past Gct~ Wct~t . ,~~, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 /Fax: (907) 283-3014 - '- www.ci.kenai.ak.us theu~uf KENAA~ SKA ~EM®RL~N~UM TO: Rick Koch, City Manager FROM: C' ji96 Cary R. Graves, City Attorney DATE: December 5, 2007 RE: Kennel Ordinance-Substitute Ordinance 2268-2007 Here is the language we discussed to add to Paragraph (j)1 of KMC 03.15.020 on Page 80 of the packet. The next to last sentence of that paragraph reads: Notification of the renewal application shall be mailed to real nropertv owners on the boroueh assessor's records within a three hundred (3001 foot periphery of the parcel affect. The new language would add the following: if the renewal contains a change in the number of dons, a significant change in the terms and conditions of the permit or if the Chief Animal Control Officer determines it is in the best interest of the public If this change were added, the notices would still be sent out for the initial application, but thereafter only if one of the above conditions were met. Otherwise the renewal would be handled administratively. As you know, we considered including a change in the breed of dogs kept in the conditions. However, we did not keep it in because of the scenario where (for example) a kennel owner changed a Black Lab for a Golden Retriever. While that is a change in the breed of dog kept, it should not be a material change in the kennel so we felt it should not automatically trigger renewal notices. If a kennel owner were (for example) going to change the breed of dogs from a small breed to Mastiffs or Great Danes that could very well be a significant change in the kennel operation. However, in that case the Chief Animal Control Officer could send out renewal notices if he/she determined it was in the best interest of the public under the new language. Please let me know if you have any questions. ~ In legislative forrnaY the paragraph is shown as I1~ [F] on page 80, (c} .The Animal Control Office shall not issue a license wider this chapter until it has inspected the premises where the applicant proposes to operate the facility, and determines that the applicant will operate the facility in accordance with standards set Forth in KMC 3.1 S.OSO. (d) The Animal Control Off ce shall prepare a written report of The inspection's findings; including any reason why the proposed facility does not meet the standards set forth in KMC 3.I S.OSO and any steps which the applicant may take to make the facility qualify for a license. The Animal Control Office shall give the applicant a copy of the report. ~} For the initial ~erraait application (but not renewaIsl the City Planner shall prepare a written report on: Whether allowing the lcemiel on the location is consistent with the purpose of the Kenai Zoning Code the pumoses and intent of the zoninu district and is in harmony with the comprehensive plan If the hearing officer finds allowita~ the kennel on the location is not consistent with the purposes and, intent of flat zoning district or is not in harmony with the comprehensive plan the permit shall not be issued- and Whether allowing the kennel would significantly impair the value ofthe adioinin~ pronerty If the hearing officer finds allowing the kennel at the location would significantly impair the value of the adioininu property the permit shall not be issued. ~[E] A license issued. under this chapter shall expire on December 31st of the year in which it is issued. [(F) AN APPLICATION TO RENEW A LICENSE ISSUED UNDER THIS CHAPTER SHALL BE MADE AT LEAST THIRTY (30) DAYS AFTER TI-IF, LICENSE EXPIRES, AND SHALL BE MADE Ili? THE SAME MANNER AS AN APPLICATION FOR A I\BW LICENSE, PROVIDED THAT THE APPLICANT MAY RELY UPON MATERIALS SUBMITTED WITH HIS ORIGINAL APPLICATION TO THE EXTENT THEY ACCURATELY PORTRAY TI-FE CURRENT CONDITION OF THE FACILITY.] (g) The applicant sha116e informed in writing that the application or receipt of the license provided for in this chapter does not relieve the applicant of meeting all zoning ordinance requirements or any other applicable City, Borough, or State laws or regulations. (h) The applicant shall agree in writing that the kennel facility may be inspected by the Chief' Animal Control Officer or his/her desi~see at any time during business hours of the permitted. The Chief A~aimal Control Officer or his!her desiaaaee shall hold a hearing to determine whether the license should be uranted conditioned, limited or denied. Notification shall Substitute Oedinance No. 2268-2007 (] U30/07) AttachmeJll A Wage 2 of s 79 be mailed to real nrot7erC~owt^ers Iisted on the borough assessor's records within a three htuidred 3001 foot peripherv of the parcel that is the subiect of the proposed action. The notice shall be mailed at least ten {l0} days prior to the hearing and shall include the date, time and mace ofthe hearine A copv of the decision shalt be mailed to all notified property owners all persons testi~in>? or submitting comments and the appheant. h[F] An application to renew a license issued under this chapter shall be made at least thirty (30} days before [AFTER] the License expires, and shaI1 be made in the same manner as an applicatiot for a new license provided that the applicant may rely upon materials submitted with his original application to the extent they accurately portray the current condition of the facility. Notification of th° renewal application shall be mailed to real property oumers on the boraueh assessor's records within a three hundred {300) foot peri~hery of the parcel affected The notice shall provide a date by which any comments rrr~arding the application should be submitted. Durine the comment period the applzcatat or a p~;rson receivine notice under this subsection may request a hearing Upon timely application under tkis subsection. the Chief Animal Contro] Qffieer or his/her desisnee shall hold a hearing to determine whether the license should be renewed conditioned limited or denied. Notification of the hearin>r shall be mailed to real properi owners listed on the borough assessor's records within a three hundred (300) foot periphery of theparcel that is the subject of the proposed action The notice shall be mailed at least ten (1 OL~pxior tc the hearing and shall include the date time and ,Mace of the hearintr. A copv of the decision shall be mailed to all notifie~roperty owners allpersons testifvin¢ or submitting comments and the applicant. 8.15.1130 License revocation. (a} If an inspection of a facility licensed under this chapter reveals: (1) The facility constitutes a health hazard; (2) The facility violates a City or Borough ordinance or regulation; (3} 'I"he facility violates a provision of this title, a term, condition, or firrtitation of a License issued under this chapter or a City regulation promulgated under this title. The inspecting agency may so nofify the operator of the facility, stating in uniting the steps the operator may take to remedy the violation, (b} The inspecting agency shall allow a facility operator who has been notified of a violation under subsection (a) of this section a reasonable time not exceeding fifteen (15) days to remedy the violation. At the end of that period, the inspecthlg agency shall re-inspect the facility to determine whether the violation has been cured. Subs¢itute Ordinafioe No. 2268-2007 (11/30/07) Attachment A Page 3 or 5 8~ (c) Ifafter re-inspection, the inspecting agency determines the violatian has not been cured or that new violations have occurred, the Chief Animal Control Officer may commence a proceeding to revoke the license for the facility under ICMC 3.15.040. Before revoking a license under this chaptez•, the Chief Animal Control Officer or his designee shall hold a hearing to determine whether the License should be revoked. The party aeeriaved may apneas to the City Council withiai fifteen {15) days of the decision. 3.15.040 Hearings-Appeals. A person ;grieved by the g_rautina_. revocation. renewing, limitin~, conditionna2, or deriving of a license ender this chapter may, within fifteen { 15) days of the date of the decision complained of. appeal to the City Council pursuant to the procedures in KMC 1.4.20.296. [(A) A PERSON AGGRIEVED BY THE GRANTING, RENEWING. LIMITING, CONDITIONING, OR DENYING OF A LICENSE UNDER THIS CHAPTER MAY, WITHIN FIFTEEN (15} DAYS OF THE ACTION COMPLAINED OF, APPLY FOR A HEARING BEFORE THE CHIEF ANIMAL CONTROL OFFICER OR HIS DESIGNEE. UPON TIMELY APPLICATION UNDER THIS SUBSECTION, THE CHIEF ANIMAL CONTROL OFFICER OR HIS DESIGNEE SHALL HOLD A HEARING TO DETERMINE WHETHER THE LICENSE SHOULD BE GRANTED, CONDITIONED, LIMITED, OR DENIED. THE PERSON AGGRIEVED MAY APPEAL THE DECISION OF THE CHIEF ANIMAL CONTROI, OFFICER TO THE CITY COUNCIL WITHIN THIRTY (30} DAYS WHOSE DECISION SHALL BE FINAL.] [B BEFORE REVOKING A LICENSE Ulv'DBIZ THIS CHAPTER, THE CHIEF ANIMAL CONTROL OFFICER OR HIS OR HER DESIGNEE SHALL HOLD A I-TEARING TO DETERMII~TE WHETHER THE LICENSE SHOULD BE REVOKED. THE PARTY AGGRIEVED MAX APPEAL TO TIFF, CITY COUNCIL WITHIN THIRTY (30) DAYS OF THE DECISION WHOSF, DECISION SHALL BE FINAL.] 3.15.050 Standards for anerating faciiity. In operating a kennel facility, the operator shall (Ord. 1522-92); (a) Comply with the provisions of this title, the terms, conditions, and limitations of any license issued hereunder and any City regulations promulgated under this title. (h) Provide shelter adequate to preserve the health of the animals kept in the facility. (c} Maintain the facility n3 a sanitary condition. (d) Provide for the adequate care and fending of animals kept in the facility. (e) Design and equip the 'facility so as to keep all animals on the premises. SubstituPe Ordinance Nv. 2268-4007 (11130{07) Attachment A Page 4 of 3 81 (f} Keep an that number of animals in the facility which is safe and healthy far the facility's sake. (g) Maintain the Facility in such a manner that it does not constitute a nuisance to owners or occupiers of land. in its vicinity. SnbstiYUte Ordinvict, No. 2268-2007 (11/30/07) Attxcfimcm A Page > of 82 ~p~/`f~~e ~1tt1~ ~ GG~( Gtll(. ~ ~ d~LtY°~' ~® 210 Fida(go Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907} 283-3014 vdww.ci.kenai.ak.us JCei ,l 1 ~ J17 U TO: Mayor Porter and. the Kenai City Council FROM: ~~~ Cary R. Graves, City Attorney DATL: November 3q 2007 RE: Snbstitute Kennel Ordinance "Phere are two major changes in the substitute ordinance. First, while a notice is sent to neighbors within a 300-foot periphery far license renewals, a hearing is not held unless onets requested. For initial applications, notices are sent and a hearing must be held. The second change is that we incorporate some of the language for conditional uses firom KMC 1.4.20.150 into the kennel ordinance. We thought that was a better approach than malting kennels a condition ctse. 'Chat's because kemiel licenses used to be renewed every year to dzech the conditions the dogs live in and to make sure they ve properly licensed and vaccinated. Conditional uses are not subject to yearly renewals. Kennels need to be. The conditional use language that was added to the kennel ordinance is: Tor the initial permit application (but not renewals) the City Planner shall prepare a written report on: (1) Whether allowing the ketmel on the location is consistent with the purpose of the Kenai Zoning Code, the purposes and intent of the zoning district and is in harmony with the comprehensive plan, 1f the hearing officer finds allowing the kennel on the location is not consistent with the purposes and intent of the zoning district or is not hi harmony with the comprehensive plan, the permit shall not be issued; and (2} Whether allowing the kennel would significantly impair the value o1'the adjoining property, If the hearing officer finds allowing the kennel at the location would significantly impair the value of the adjoining property, the permit shall not be issued. 83 That language requires the hearing officer to take into consideration the effect of the kennel an adjaining property and its compliance with the zaning code and comprehensive plan during the initial application process, but uat renewals. Since the hearing officer may not have expertise in that area, a report will be prepared from the City Planner to analyze those issues. Please let me know if you have any questions or comments. 84 (c} .The Animal Control Office shall not issue a license wider this chapter until it has inspected the premises where the applicant proposes to operate the facility, and determines that the applicant will operate the facility in accordance with standards set Forth in KMC 3.1 S.OSO. (d) The Animal Control Off ce shall prepare a written report of The inspection's findings; including any reason why the proposed facility does not meet the standards set forth in KMC 3.I S.OSO and any steps which the applicant may take to make the facility qualify for a license. The Animal Control Office shall give the applicant a copy of the report. ~} For the initial ~erraait application (but not renewaIsl the City Planner shall prepare a written report on: Whether allowing the lcemiel on the location is consistent with the purpose of the Kenai Zoning Code the pumoses and intent of the zoninu district and is in harmony with the comprehensive plan If the hearing officer finds allowita~ the kennel on the location is not consistent with the purposes and, intent of flat zoning district or is not in harmony with the comprehensive plan the permit shall not be issued- and Whether allowing the kennel would significantly impair the value ofthe adioinin~ pronerty If the hearing officer finds allowing the kennel at the location would significantly impair the value of the adioininu property the permit shall not be issued. ~[E] A license issued. under this chapter shall expire on December 31st of the year in which it is issued. [(F) AN APPLICATION TO RENEW A LICENSE ISSUED UNDER THIS CHAPTER SHALL BE MADE AT LEAST THIRTY (30) DAYS AFTER TI-IF, LICENSE EXPIRES, AND SHALL BE MADE Ili? THE SAME MANNER AS AN APPLICATION FOR A I\BW LICENSE, PROVIDED THAT THE APPLICANT MAY RELY UPON MATERIALS SUBMITTED WITH HIS ORIGINAL APPLICATION TO THE EXTENT THEY ACCURATELY PORTRAY TI-FE CURRENT CONDITION OF THE FACILITY.] (g) The applicant sha116e informed in writing that the application or receipt of the license provided for in this chapter does not relieve the applicant of meeting all zoning ordinance requirements or any other applicable City, Borough, or State laws or regulations. (h) The applicant shall agree in writing that the kennel facility may be inspected by the Chief' Animal Control Officer or his/her desi~see at any time during business hours of the permitted. The Chief A~aimal Control Officer or his!her desiaaaee shall hold a hearing to determine whether the license should be uranted conditioned, limited or denied. Notification shall Substitute Oedinance No. 2268-2007 (] U30/07) AttachmeJll A Wage 2 of s 79 be mailed to real nrot7erC~owt^ers Iisted on the borough assessor's records within a three htuidred 3001 foot peripherv of the parcel that is the subiect of the proposed action. The notice shall be mailed at least ten {l0} days prior to the hearing and shall include the date, time and mace ofthe hearine A copv of the decision shalt be mailed to all notified property owners all persons testi~in>? or submitting comments and the appheant. h[F] An application to renew a license issued under this chapter shall be made at least thirty (30} days before [AFTER] the License expires, and shaI1 be made in the same manner as an applicatiot for a new license provided that the applicant may rely upon materials submitted with his original application to the extent they accurately portray the current condition of the facility. Notification of th° renewal application shall be mailed to real property oumers on the boraueh assessor's records within a three hundred {300) foot peri~hery of the parcel affected The notice shall provide a date by which any comments rrr~arding the application should be submitted. Durine the comment period the applzcatat or a p~;rson receivine notice under this subsection may request a hearing Upon timely application under tkis subsection. the Chief Animal Contro] Qffieer or his/her desisnee shall hold a hearing to determine whether the license should be renewed conditioned limited or denied. Notification of the hearin>r shall be mailed to real properi owners listed on the borough assessor's records within a three hundred (300) foot periphery of theparcel that is the subject of the proposed action The notice shall be mailed at least ten (1 OL~pxior tc the hearing and shall include the date time and ,Mace of the hearintr. A copv of the decision shall be mailed to all notifie~roperty owners allpersons testifvin¢ or submitting comments and the applicant. 8.15.1130 License revocation. (a} If an inspection of a facility licensed under this chapter reveals: (1) The facility constitutes a health hazard; (2) The facility violates a City or Borough ordinance or regulation; (3} 'I"he facility violates a provision of this title, a term, condition, or firrtitation of a License issued under this chapter or a City regulation promulgated under this title. The inspecting agency may so nofify the operator of the facility, stating in uniting the steps the operator may take to remedy the violation, (b} The inspecting agency shall allow a facility operator who has been notified of a violation under subsection (a) of this section a reasonable time not exceeding fifteen (15) days to remedy the violation. At the end of that period, the inspecthlg agency shall re-inspect the facility to determine whether the violation has been cured. Subs¢itute Ordinafioe No. 2268-2007 (11/30/07) Attachment A Page 3 or 5 8~ (c) Ifafter re-inspection, the inspecting agency determines the violatian has not been cured or that new violations have occurred, the Chief Animal Control Officer may commence a proceeding to revoke the license for the facility under ICMC 3.15.040. Before revoking a license under this chaptez•, the Chief Animal Control Officer or his designee shall hold a hearing to determine whether the License should be revoked. The party aeeriaved may apneas to the City Council withiai fifteen {15) days of the decision. 3.15.040 Hearings-Appeals. A person ;grieved by the g_rautina_. revocation. renewing, limitin~, conditionna2, or deriving of a license ender this chapter may, within fifteen { 15) days of the date of the decision complained of. appeal to the City Council pursuant to the procedures in KMC 1.4.20.296. [(A) A PERSON AGGRIEVED BY THE GRANTING, RENEWING. LIMITING, CONDITIONING, OR DENYING OF A LICENSE UNDER THIS CHAPTER MAY, WITHIN FIFTEEN (15} DAYS OF THE ACTION COMPLAINED OF, APPLY FOR A HEARING BEFORE THE CHIEF ANIMAL CONTROL OFFICER OR HIS DESIGNEE. UPON TIMELY APPLICATION UNDER THIS SUBSECTION, THE CHIEF ANIMAL CONTROL OFFICER OR HIS DESIGNEE SHALL HOLD A HEARING TO DETERMINE WHETHER THE LICENSE SHOULD BE GRANTED, CONDITIONED, LIMITED, OR DENIED. THE PERSON AGGRIEVED MAY APPEAL THE DECISION OF THE CHIEF ANIMAL CONTROI, OFFICER TO THE CITY COUNCIL WITHIN THIRTY (30} DAYS WHOSE DECISION SHALL BE FINAL.] [B BEFORE REVOKING A LICENSE Ulv'DBIZ THIS CHAPTER, THE CHIEF ANIMAL CONTROL OFFICER OR HIS OR HER DESIGNEE SHALL HOLD A I-TEARING TO DETERMII~TE WHETHER THE LICENSE SHOULD BE REVOKED. THE PARTY AGGRIEVED MAX APPEAL TO TIFF, CITY COUNCIL WITHIN THIRTY (30) DAYS OF THE DECISION WHOSF, DECISION SHALL BE FINAL.] 3.15.050 Standards for anerating faciiity. In operating a kennel facility, the operator shall (Ord. 1522-92); (a) Comply with the provisions of this title, the terms, conditions, and limitations of any license issued hereunder and any City regulations promulgated under this title. (h) Provide shelter adequate to preserve the health of the animals kept in the facility. (c} Maintain the facility n3 a sanitary condition. (d) Provide for the adequate care and fending of animals kept in the facility. (e) Design and equip the 'facility so as to keep all animals on the premises. SubstituPe Ordinance Nv. 2268-4007 (11130{07) Attachment A Page 4 of 3 81 (f} Keep an that number of animals in the facility which is safe and healthy far the facility's sake. (g) Maintain the Facility in such a manner that it does not constitute a nuisance to owners or occupiers of land. in its vicinity. SnbstiYUte Ordinvict, No. 2268-2007 (11/30/07) Attxcfimcm A Page > of 82 ~p~/`f~~e ~1tt1~ ~ GG~( Gtll(. ~ ~ d~LtY°~' ~® 210 Fida(go Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907} 283-3014 vdww.ci.kenai.ak.us JCei ,l 1 ~ J17 U TO: Mayor Porter and. the Kenai City Council FROM: ~~~ Cary R. Graves, City Attorney DATL: November 3q 2007 RE: Snbstitute Kennel Ordinance "Phere are two major changes in the substitute ordinance. First, while a notice is sent to neighbors within a 300-foot periphery far license renewals, a hearing is not held unless onets requested. For initial applications, notices are sent and a hearing must be held. The second change is that we incorporate some of the language for conditional uses firom KMC 1.4.20.150 into the kennel ordinance. We thought that was a better approach than malting kennels a condition ctse. 'Chat's because kemiel licenses used to be renewed every year to dzech the conditions the dogs live in and to make sure they ve properly licensed and vaccinated. Conditional uses are not subject to yearly renewals. Kennels need to be. The conditional use language that was added to the kennel ordinance is: Tor the initial permit application (but not renewals) the City Planner shall prepare a written report on: (1) Whether allowing the ketmel on the location is consistent with the purpose of the Kenai Zoning Code, the purposes and intent of the zoning district and is in harmony with the comprehensive plan, 1f the hearing officer finds allowing the kennel on the location is not consistent with the purposes and intent of the zoning district or is not hi harmony with the comprehensive plan, the permit shall not be issued; and (2} Whether allowing the kennel would significantly impair the value o1'the adjoining property, If the hearing officer finds allowing the kennel at the location would significantly impair the value of the adjoining property, the permit shall not be issued. 83 That language requires the hearing officer to take into consideration the effect of the kennel an adjaining property and its compliance with the zaning code and comprehensive plan during the initial application process, but uat renewals. Since the hearing officer may not have expertise in that area, a report will be prepared from the City Planner to analyze those issues. Please let me know if you have any questions or comments. 84 Suggested by: Chief Kopp CIT"ir ®F KEN~.I ORDINANCE Np, 2259-2007 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING CHAPTER 5.40 OF THE KENAI MUNICIPAL CODE ESTABLISHING A LICENSING PROCEDURE FOR PAWNBROKERS AND REGULATING HOW PAWNBROKERS CONDUCT BUSINESS. WHEREAS, the City of Kenai does not currently require pawnbrokers operating in the city to be licensed; and, WHEREAS, the City of Kenai does not currently regulate the business practices of pawnbrokers; and, WHEREAS, the only pawnbroker operating within the city limits recently closed, but it is anticipated a pawnbroking business will return to the city at some time in the near future; and, WHEREAS, while the majority of pawnbrokers are Iegitimate businesses operating lawfuIly, regulating pawnbrokers is very helpful in tracing and recovering stolen property because thieves will often attempt to sell stolen property to pawnbrokers; and, WHEREAS, it is in the best interest of the City of Kenai to enact Kenai Municipal Code Chapter 5.40 licensing and regulating pawnbrokers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITX OF KENAI, ALASKA, that KMC 5.40 is enacted as shown on Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21s~ day of November, 2007. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Introduced: November 7, 2007 Adopted: November 21, 2007 Effective: December 21, 2007 85 Chapter 5.40 Pawnbrokers 5.40,010 Pawnbrokers--License. (a} R¢quired. No person may engage in the business of lending money on security of personal property physically taken and held, or purchasing articles of personal property and reselling or agreeing to resell the articles to the vendor or an assignee at a price agreed upon at or before the time oP purchase, without first having obtained a pawnbroker's license f"rout the City Clerk. For the purposes of 5.40, personal property shall notinaludeintangiblepersonal property. Intangible personal property is defined as personal property that has no physical existence such as claims, interest, rights and titles to personal property including but not limited to motor vehicle titles. (b) Qualifications ofpmvnbrokers and employees. A pawnbroker and every person employed by a pawnbroker shall: {1) Be 18 years of age or older; and (2) Not have been convicted of a crime involving larceny, theft, receiving and concealing stolen property, dealing with illegally obtained property or involving misrepresentation or fraud within'five years prior to the date of application or employment, or be on probation or parole for any such offenses. (c) Application. An applicant for a pawnbroker's license shall describe in hislher application the terms and conditions of the lending agreement used or intended for use; including the time period allowed for redemption of articles, the rate or amount of interest or other charge made for the ace of money lent, and the manner iu which the terms are identified for redemption. (d) Bond. An applicant for a pawnbroker's license shat] file a bond in the amount of $25,000.00 with the hlitial application. The bond shall be conditioned on the Itcensee's compliance with Title Chapter 5.40 and all applicable laws. (e) Location of business. A pawnbroker's license shall be issued only for a single location, to be specified on the hcanse. 5.46.020 Pawnbrokers--Conduct of business. (a) Hours. A pawnbroking establishment may be open for the transaction of business only between the hours of 8:00 a.m. and 10:00 p.m. (b} Connection with premises selling or dispensing alcoholic beverages. A pawnbroker may not have his business premises within or connected by any means of ingress with premises occupied by an establishment selling or dispensing alcoholic beverages. (c} R¢card of articles palvned or purchased. A pawnbroker shall complete a separate card for each article pawned or purchased, which sPta11 contain the following information.: (1) The name of fl?e pawnbroker acrd the pawn number. (2} The article pawned or purchased, including the manufacturer, serial number, caliber, model number and other identifying description. (3) The date and time of the transaction. (4) The name, address and the military serial cumber or driver`s license number of the customer. (5) The physical description of the enstomer, including his age, height, weight, race, and color of hair and eyes. (6) The signature of the customer from whom property was pawned or purchased and a notation by tke licensee of the paper, document or license with a=hick the pawnbroker compared the signature. pttacltmertt A 86 (7} The name and address of each person to whom a pawned or purchased item is conveyed, and a description. of the item. (d) Reports to police. The licensee shall make a weekly report to the Chief of Police summarizing all transactions. The report shall be on a form provided by the police department nr any format acceptable to the police department. (e) Reteratian afrecords. The records required by this section shall be retained by the licensee far a period of not Less than one year. {f} Datties upon nat~cation that property has been reported stolen. Upon receipt of written notification by a police officer that the particular item of property in possession of a pawnbroker has been reported stolen, a pawnbroker: (1 } Is presumed to know or have reason to know, that the item is lost, mislaid, or stolen; (2) May not sell, transfer, or otherwise dispose of the property except upon: {i) Expiration of a 60-day period within which a person claiming entitlement to the property may request return of the property and such request is denied the pawnbroker shall, within 30 days of the detual, request a hearing before the Police Chief pursuant to subsection (g}(2} of this section and hold the property for disposal in accordance with the Police Chief's order; or (ii) An order of the Police Chief following a hearing requested under subsection (g}(2) of this section; and (2} Must take reasonable measures to restore the property to a parson entitled to have it. (g), Reasonable measures. Far the purposes of this section reasonable measures shall be either: (1) Return of the item to the person entitled to have it upon request, accompanied fiy evidence of ownership, of that person; or (2) Submission of a raquest'for an administrative hearing before the Police Chief to determine who is entitled to have the property. If azi item is referred for hearing under this subsection the Police Chief may review copies of police reports relating to the property to assist in determination of the matter. The burden of proof at such a hearing shall be on the party claiming a Legal interest. The Police Chief s decision shall be limited to determining whether any party has established its right to the item by a preponderance ofthe evidence. If no party is able to prove its right to the item by a preponderance of the evidence, the property shall be returned to the licensee. Except while the matter is pending on appeal, failure of a pawnshop to comply with the orders of the Police Chief shaft resuh in immediate revocation of the pawnbroker's license. (h) Request, for a deternalnativn. A request for a determination by the Police Chief under subsection (g)(2} of this section shall include an assertion by the pawnbroker that either: (1} The parson requesting the property is not entitled to haue it; (2} The pawnbroker has a superior claim to the property; or (3) The pawnbroker lacks sufficient ittformation to determine whether the person requesting the property is entitled to have it. (i) Failure to return fee. Failure o'f a pawnbroker to either return Uie property to the person entitled to have it upon request of that person, or request eta administrative hearing within 30 days of denying the request of a person for the property shall result in suspension or revocation of the pawnbroker's license. 87 (j} Finders, fee, reward, etc. A pawnbroker is not entitled to a finder's fee or other reward or compensation from the rightful owner of stolen property found in the pawnbroker's possession unless ordered by the Police Chief upon a finding that it is warranted. (k} Faiture to request return of property within time period. If no person requests return of''the property within the time period provided in subsection (f)(2) of this section, the licensee does not have to request a hearing and may sell, transfer, or dispose of the property. For the purposes of an administrative hearing, evidence of ownership includes, but is not limited to, fimely filed complaints or police reports of stolen property; local, state or national police information data bases; documents in possession of the police department; license or property identification numbers; markings on the property; appraisals, photographs, or other similar indicia of ownership. 5.40.00 Pawnbrokers--Prohibited acts. (a) A licensee may not purchase or receive an article from a person under the age off 8 years or from a person 18 years of age or older who purchased or received the article from a person under 18 years of age for the purpose of pawning it. (b} A licensee may not purchase or pawn an article if the customer cannot provide proaf of ownership of the article or if the licensee has knowledge of facts that would create a belief in a reasonable man that the article may have been stolen, embezzled or otherwise illega€ly obtained. {c) A licensee may not purchase or pawn property from a person who is or appears to be under the influence of drugs or intoxicating beverages. (d) Property purchased by a heensee or acquired by expiration of a redemption period may not be resold, entered into stock or removed from the premises specified on the pawnbroker's license for a period of 30 days after such property has been reported to the Chief of Police pursuant to Section 5.40.020(4). 5.40.440 Revocation of licenso. (a) 1f at any time the licensee is found to have violated any of the ordinances of the city or the laws of the state or the United States; or fails tc> comply with requirements of this Chapter; or makes a false statement in his/her application; or at any time fails to meet those qualifications required to obtain a Iicense, the license may be revoked. (b} Whenever there is a reason to believe the license should be revoked, the Police Chief shall serve notice upon the licensee that a hearing will be held before the Pollee Clvef for the purpose of determining whether the license should be revoked. If the Police Chief determines that the license shall be revoked, the licensee may appeal to the city council within 15 days from the date the licensee receives notice of the decision pursuant to KMC 14.20.294. 5.40.050 Fees The fees for pawnbrokers are as follows: (1} Application fee, for each new application $106. {2} Rcnawal application, every two years $100. 88 Kenai PolicE • I Memorandum To: Rick. Koch, City Manager From: Mitch Langseth, Investigator Thru: Chuck Kopp, Chief of Police Ce: Cary Graves, City Attorney Date: 12/3/2007 Re: Pawn Shop Ordinance Please review the attached Ordinance proposal for rules and regulations regarding operation of Pawnshops in the city limits of Kenai. As a police officer in Kenai for fhe past 16+ years, I have made numerous pawnshop visits to recover stolen property or to identify persons associated with stolen property. I have watched pawnshops open and close in city limits with varying degrees of business success. I have had great relationships with local pawnshop owners and found most to be legitimate business- people. However, this does not preclude the high propensity for thieves with stolen property to attempt cash conversion through a pawnshop. In the course of investigations, I found that pawnshop records are many times illegible and incomplete. Pawnshop owners were often times not motivated to respond to police notifications for stolen property because they incur economic loss when stolen property is recovered from them. To address this issue, the Municipality of Anchorage developed ordinances to ensure that pawn records are legible and that pawnshop owners submit complete records to the police department for review. Anchorage pawnshops submit electronic pawn records. The data is stored and is searchable over the Internet with proper access. This computer data input is always legible and easy to read. As a Kenai police officer, I can check Anchorage pawn records from my desk with simple search tools. I get name, address, and contact information for persons pawning property, as well as the make, model, and serial number for items pawned. With the closure of Kenai Pawn this summer, the City has a unique opportunity to enact ordinances without retroactive impact to local business owners. The proposed pawnshop ordinance would require owners to keep legible records and provide the records to the • Page 1 Kenai Police Department weekly. The ordinance does not require a business owner to reveal sales data and or profit/loss, only identifying information regarding the person pawning property and the property being pawned. This ordinance will allow the Kenai Police Department to have a good working relationship with future pawnshops and provide better protection to the public from property theft. • Page 2 Suggested by: Administration CITY OF Y{ENAY ORDINANCE NO. 2270-2007 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $71,730.85 TN THE GENERAL FUND FOR REPAIR OF THE VISITOR'S CENTER HEATING SYSTEM. WHEREAS, the City of Kenai received $71,730.85 in FY2006 as pa*t of a class action suit brought to remedy faulty in-floor heatnag components; and, WHEREAS, the City is pursuing additional funds to cover the expected cost of replacing the heating system at the Visitor's Center; and, WHEREAS, the $71,730.85 is in the General Fund fund balance designated for Visitor's Center heating system repair. 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: Appropriation of Fund Balance- Designated for Visitors $71,730.85 Center Heating System Repair Increase Appropriations: Buildings -Repair and Maintenance $71,730.85 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of December, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: ~U~ (11/9/200'7) hl Introduced: November 21, 2007 Adopted; December 5, 2007 Effective: December 5, 2007 89 "Vil(~x~r e wct~t r~ Past, ~it~ with ~t Future" ,; ,- ~j~'ti 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 -~ Telephone: 907-283-75351 FAX: 907-283-3014 l~I~~i ";_ . ,_ , ,.,ice ~_ ,~rz the c4'ty a f KENAv SIfA MEMO: TO: Clfy Council ~J~ FROM: Rick Koch DATE: November '15, 2007 SUBJECT: Ordinance 2270-2007 The purpose of this eorrespandence is to discuss and request Council approval of Ordinance 2270-2007. During FY 2006 the City received. $ 71.,730.85 as part of a class action settlement for defective tubing that had been used in the in-floor heating system at the Visttar's Center. There were several classes of injured parties within the class-action suit. At the time the City received the initial settlement, we were in th,e class that had n,of yet been damage by the product failure. fiver the lasC two years the tubing systems have degraded causing failure of pumps, damage to boilers, and other relaied damages, including a significantlyn~creased investment of time by our maintenance personnel. The class-action settlement provides the mechanism for parties to transition from oua class to another. If the City submits appropriate documentation as to our existing and growing damages, we may be reclassif,`ed, and receive an additional settlement in the amount of over $ 300,000. Through the appropriation of funds already received by the City we will oontract with a mechaalica1 engineering consultant to prepare the necessary information for submission. I estimate the work associated with the condition survey and preparation of materials to be less than $ 10,000. The remainder of this appropriation will be used in the future for repair/replacement of the failing heating system. 90 Suggested by: Administration CITY OF KENAY ORDINANCE NC3. 2291-2007 AiN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,254,000 IN THE WELLHOL'SE 4 CAPITAL PROJECT FUND FOR WATER SYSTEM UPGRADES AND $627,000 IN THE WATER AND SEWER FUND TO PROVIDE MATCHING FUNDS FOR A STATE GRANT. WHEREAS, the City of Kenai received a grant of $627,000 from the Alaska Department of Environmental Conservation for Water Treatment Plant upgrades; and, WHEREAS, the grant requires an equal match; and, WHEREAS, funds are available in the Water and Sewer Fund fund balance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Water and Sewer Fund Increase Estimated Revenues: Appropriation of Fund Balance $627,000 Increase Appropriations: Transfer to Capital Project $627 000 W_ ellhouse 4 Capital Project Fund Increase Estimated Revenues: State Grant $627,060 Transfer from Special Revenue Fund 627,000 $1,254,000 Increase Appropriations: Construction $1, 254, 000 PASSED BY THE COUNCIL OF THE CITY O F KENAI, ALASKA, this fifth day of December, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: November 21, 2007 Adopted: December 5, 2007 .~~~;~/ Effective: December 5, 2007 Approved by Finance: {21/9/2007) hl 91 Suggested by Planning and Zoning Administration CITY Off' KENAI CBRIDINAPLCE NO. 2272-2407 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, 1) AMENDING THE LAND USE TABLE IN KMC 14.22.010 BY SEPARATING "STORAGE" FROM THE CURRENT USE LISTING OF "MANUFACTURING/FABRICATING/ASSEMBLY STORAC'sE" AND; 2) ADDING "STORAGE YARD" AND "MINI-STORAGE FACILITY" TO THE LISTED USES IN THE LAND USE TABLE AND; 3) tLMENDING KMC 14.20.320 BY PROVIDING DEFINITIONS OF "WHOLESALE BUSINESS," "MINT-STORAGE FACILITY," "STORAGE YARD," AND "WAREHOUSE." WHEREAS, the Land Use Table in KMC 14.22.010 currently lists Manufacturing/Fabricating/Assembly Storage" as a listed use; and, WHEREAS, "Storage Yard" should be a separate listed use in the Land Use Table; and, WHEREAS, the use of "Mini-Storage Facility" should be added to the list of uses contained in the Land Use Table; and, WHEREAS, definitions of "Storage Yard," "Mini-Storage Facility," "Warehouse," and "Wholesale Business" should be added to the definition secfion in KMC 14.20.320. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that: 1) the Land lise Table in KMC 14.22.010 be amended as shown in Attachment A; and 2j KMC 14.20.320 be amended by adding the following definitions: "Mini-Storage Facility - A completely enclosed structure containing three or more areas or rooms available for lease or rent for the purpose of the general storage of household goods, vehicles or personal property; where the lessee of the unit is provided direct access to deposit or store items and where vehicles do not fill the majority of the allowed storage space." "Storage Yard - A lot used primarily for the storage of operational vehicles, construction equipment, construction materials or other tangible materials and equipment." "Warehouse - A building used for the storage of goods, wares and merchandise that will be processed, sold or otherwise disposed of off of tkie premises." "Wholesale Business - A business conducted primarily for the purpose of selling wares or merchandise in wholesale Iots to retail merchants for resale." PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of December, 2007. PAT PORTER, MAYOR 92 Ordinance No. 2272-2007 Page 2 of 2 ATTEST: Carol L. Freas, City Clerk Introduced: November 21, 2007 Adopted: December 5, 2007 Effective: January 5, 2008 93 LAND USB TABLE iC&Y: P ° Prhteipal Poanttted Use C =Conditional Use 5 =Secondary Use N =Not Permitted NOTfi: Reference footnotes wt iolleWing paper for additional restrictions y ZONING DISTRICTS RESIDENTIAL LANI> USES C RR RRt RS RSI RS2 RU CC CC iL I CII ED R TSII LC CMU One Pnmily Uwclling C's P P P P P P P" S' Ss 5' Cu P P P S'/C" ~TwolThrec Pamily 'Dwelling C`s ~ P PJ P P P P P" 5' C C C's P P P S4C°1 Pour Pamfty Dwelling C's P C' P N N P P" ~ S' C C C43 N P C S']C61 Five/Six Pamily Dwelting C's C' N P N N P P" ~ S' C C N N P C S'/C" i Seven or Mare Pamily Uwclling C`s C' N C' N N P P" S' C C N N P C S'/C" Townf;cuswt C'" C C C C C C C C C C i C" C C C C Mubitc FFnrrie Parks N C C C C C C C C C C N C N C C Planned Unit Resldeatlal DevelapmenP C" C C C C C C C C C C N C C C C COMMERCIAL i ~ LAND USES C RR RRI RS RSl RS2 RU CC CG IL tkl ED R TSH LC CMU Automotive Sales N C C N Ar N J C P P P P N N N N P Autonotive Service StaVIUPS N C C N N N C P P P P N C N N P Bwrks N C C ~ ~ N ~ N ~ C P P P C N C C C P Business/Consumer ServicCs N C ~ C C N N C P P i P C N C C' C P O¢ide Service N C C C N N C P P P P N P P C P FlotelsJMfotels N V C C C N N C P P P C N C P C P t.odge N C C C N N C P P P C N P P C P j Professional Offwcs N C C C N N P P P P P N C P P P Rcsmgrarts N C C C N N C P P P C N C C P Y Retail Business N2d C C C N N C P P P P Sx Sat C C P ',. ~R~hotesale Business N C C C N N C C I p P P N S'4 C C N 99renters/Crnmneruiat Recreation N i C ~ C C N N C P A P C C N P C C P Ordinance No. 2272.2007 ATl'ACI~I'h4BNT "A" Page t oF5 94 LAND CJSS TAffiLE KF,Y: P-Pr{ncipal Pennilted Use C ~ CondOionai Usc S =Secondary Use N =Not Pemthted NOTE; Reference teotnoles on following pages for additionzt restrictions ZONING DISTRICTS PNDUSTItIAL LAND l:SLS C RR ftRl ~ Rfi ' RSS RS2 liU CC CG 1L IH ED R 7'SH LC CMU Airports and Reinted Uscs PS0 C C C N N C P P P P N C N N C Automotive Repelr N C C C N N C P P P P N N N N P Gas Maru,Peccurer/Storage N N C~ C N N i N N N~ C" C° N N N N N Mauul'acturinp/Pabricating/ Assembly [STORAGEt, N C C C N N C C P P A P N C C N C Mini•StonlgC Facility Iy C ~ C i~ N ~ Cs P P L' L~ N ~ .~ C Storage Yard N ~ C C Yt tJ ~ C Jti P h E Id N N N Warehouses N C C C N N N P P P N G N N I N PUBLIC/ INSTITUTIONAL LAND USES C RR RRl RS R51 RS2 RU CC CG 1L Ill ED R TSH LC CMU CUariiable IaPdurcions C ! C I C i C C C P P P 1' P P C P C P Churci,es* C p10 I P`0 P10 P~0 Pro Pt0 Pin Pio C C ~ P P10 P P P cdnie>; c c c c c r, c P P N c c c c P P Coileges* C C S C C ~ C ~ ,, C C P P C C P C C C P Elementary Schoois+ C C C ° C C S C C P P C C { P C C C P (3ovanrmanta18ui3dings C C ~ C C ~ C C C P P P C P C C P P High Schools* C C ~ C C C C C P P C C _ . ~ P i_ C C C P Hospitals• , C C C C C C C P P P C C C C C P Gibrarias^ C C ~ <: C i C S C ' C' P P I' C P C P C P Musetans C C C C C C C P P P C P C P C P Parks and Rcareation P C C C C C C P P P P 1' P P C P Assis(ed Living C C C C C C C C C C C C C C C C OrdinencC No. 2272.2607 ATTACHMENT"`A" Page 2 of 5 95 LANG USE TABLE KEY: P=Principal Permitted Use C= CondiUanaf Use 5 =Secondary Use N =Not Permitted NOT&: Reference footnotes on following pages for additional restrictions IvIISCELLANEOUS LAND USES C [kR RRd RS RSi RSZ RU CC CG IL IH CD R TSH LC CNIU Animal Boarding" C C C C C N N C C C~ C N C N C C .Bed end Breakfasts C C C C C C C C C C C N C C C P I Cabin Rentals ~ C S C C C N I N N P P P C N P P C P ~I Cemeteries C C C C N N N N C C C N C C N N CrautntoricslPunera! Ftomes N C N C N N C C C C C N C C C C ` day Carc Centcrst9 C C C C C C C P P P C C C C P P ~ Dortnitoriesf9oarding Houses C C C ! C L C C P P'l ~ l S C P P" C C P P _ Essential Services P F P P P P P P P P P P P P P P FanniagtCenere.I Agriculture*"# P ( P N N N N N N N N P N P N N N CireennousestTree Nurseries° C C C C C C C P P P C N C C P P Ounamitbing, Prinung, Tnxidenny N C C C C S C ` C P P P P N C P P F Assemblies"(Large: Cfrcnses, Pairs, Ero,) C C C C C C C Pt6 P10 P'6 F's Pr' C P N P" Fre~.tcrnet Organizations! Private Clabs/Sociat Ftalls and Onion Hatls N C C ~ C C C C P P P C N C P C P Nursing, Canvafescent or Rest }tomes N C C C C C. C P P C C C C C C P i Parking, O!T Street P P P P P /' P P P P P P P P P P Par'cing, PUbfio Lots" C C C C C C C C C C C C C C C C Personal Services16 C C C C C C C P P P P C C P P P RadiolCV ~ Traneniltiers/Ce![ Sft¢s** P P C C C C C P P P P P C C C P (Recreational Vcbictc Parks C C i C C N N C C C C C N C C N C Subsurfnca Bxtract9on oP iNaWral Resourees" C C ~ ~ C C f C ~ C C C C C N C N N N Surface Extraction of ,Natural Resources" C C C I C N N C N C C C N t O N N N grdinance No. 2272-2007 ATTACHMENT "A" Page 3 of 5 96 * See 42 USCA Sea 2000cc (Religious Land Usc and Gtsdtutionatiud Persons Act of 2000} ** Sce 42 Telecomnumiaatiens Act of 1996, Sea 704(a) **" See however tfia hmltatlons imposed trader KMC3.F0.070 T'ootnotas: d. Allowed as a secondat-y use except on the ground Haar of the part of the building fronting or. collector streets and major highways. Commercial or industrial which Falls under the landsaaping/siteptans requirements of KMC 34.25 shall include any secondary uses in the landscaping and site plans. 2. One (1)single-family residence per parcel, which is paN of the main building. 3. Allowed as a conditional use, subject to satisfying the following eanditions: a. The usable area per dweilutg trait shat l be the same as that required for dwelling units in the RS zone; h. The site square footage in area must 6e approved by the Commission; c. Yards around the site, off-street parking, and other development requit~ements shall be the same as for principal uses in the RR zouo; d. Wnter and sewer facilities shall meet fhe requirements of ail app(ica6to health regulations; a The proposed dwelling group will constitute a msidential area of sustained desirabrtity and stability; will 6c in harmony with fhe character of the surrounding neighborhood, and wit l not adversely affect surrounding properly vah:es; E The buildings shall be ased only for residential purposes and customary accessory uses, such as garages, storage spaces, and recreational and community activities; g. There shelf be provided, as part of the proposed development, adequate raeroatian areas to serve the needs of the anticipated population; h. The development shalt ttat produce a volume of traffic in excess of the capacity for which the accoss streets are designed; i. The properly adjacent to t11o proposed dwelling group will not be adversely affected. 4, See "Townhouses" saoiion. S. Sae "Mobile Homes" section. 6. Allowed as a conditional use, subject to "Mobile S-IOmes"section and provided that any mobile home park meets the minimum T'ederal Housing Authority requirements. 7. See "Planned Unit Residential Uevelopmeat"'section. 8. Allowed as a con;titionat use, provided that the proposed tecation and the chmacta•istics of the site wilt not desu•oy the residential character of the ueighbm~hood. 9. Allowed as a conditional use, provided that all applicable safety and fire regulations zre met. 6. Provided that no part of any building is tooated nearer than thirty (3b) feet to any adjoining street or property line. ! 1. Allowed as a conditional use, provided that no part of any building is tooated nearer than thirty (30) feat to any adjoining street or pronerty Line and provided further that tho proposed location and characteristics of the use will not adversely zffeot the commercial davetopmarit of the zone. t2. Allowed us a conditional use, provided that the following cottditimvs are man a. The proposed location of the use and the size and characteristic of fhe site will maximize its benefit to the public; b. Exi{s and entrances and off-street parking for the use are located to prevent traffic hazards on public streets. t3. Allowod as a oonditionat use, provided that seibseks, buffer strips, and other provisions are adequate to assure that the use wi31 not be a nuisance to surrounding prapertie-s. The Commission shall specify the conditions necessary to fulfill this requiremenK 14. Allowed as a conditional use, provided that no indication of said use is evident fi•om the exterior of the mortuary. I5. Allowed, provided that the following conditions are met: Ordinance No. 2272.2007 ATTACHMENT ".4" Page 4 of S 97 a. An uncleared buffer strip of at least thirty (30} feet shall be provided between said use and any adjoining property in a residential zone. b. Extts and entrances and nff-street parking for the use shall be located to prevent traffic hazards on the public streets. ! 6, See "Condttonal Uses" seation. 17. Sec "Conditional Use Permit for Surfeoe Extraction of Natural Resources" section. 14, DeCotod by 6rdinance 2144-2606. 20. Ttsn airport retatod uses allowed under this entry are aircraft approach zones per KMC 14.20.070(a), exoept drat for properties contained inside the airport perimeter fence or having access to aircraft mavernent areas, ramps, taxiways or parking aprons, FAA authorized uses are showed. 2(, Developments for use shall be tho same as those listed in the "Development Requirements Table" for the RUITSA zones. 22, Allowed as a conditional nse in conjunction with a permitted use in he ED zone. Forexample, housing far teachers or students for a school in the zone. 23. Allowed as an accessory use in conjunction with a permitted use in theBD zone. For exempla, a dormitory used to house stndoots for a sehoot or educational facility. 24, Rciall businesses a(lowod as a secondary use in cnnjunetlon with the primary use (o.g., a gift shop or coffee shop within another business). 25. Art studios, barbers, beauticians, dressmakers, dry cleaners attd self-service laundries, fihtess centers, photographic studios, [allots, tanning salons and massage therapists. 26, Food services are allowed on a temporary ur seasonal basis of not more than four (4) months par year. Ordinance No, 2292-2007 ATTACT~IMENT"A" - - Page 3 of S 98 Suggested by: Planning &v Zoning Commission CITY C3F KENAI F2ES®LITTION N0. 2007-?6 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ACCEPTING THE UPDATED 2007 HISTORICAL PRESERVATION PLAN FOR THE CITY OF KENAI. WHEREAS, KMC 14.20.105(ij(3j requires that the City develop a local historical preservation plan that is compatible with the Alaska State Historic Preservation Plan; and, WHEREAS, in 1998 the City Council adopted the first Historic Preservation Plan; and, WHEREAS, a review of the Historic Preservation Plan was completed by the Planning and Zoning Commission; and, WHEREAS, the Planning and Zoning Commission held work sessions with the Kenai Historical Society and the public reviewing and updating the preservation plan; and, WHEREAS, the Planning & Zoning Commission held a public hearing on October 10, 2007; and, WHEREAS, the Planning and Zoning Commission recommends that the updated 2007 Historic Preservation Plan be accepted. THEREFORE, BE IT RESOLVED, by the Council of the City of Kenai, Alaska that the updated 2007 City of Kenai's Historical Preservation Plan is accepted. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of December, 2007. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk 99 CIT"T' OFD i{ENAi PLANNING AND ZONING COl~IlVIiSSTON KENAI, ALASKA RESOLUTION 1~'O. PZ(D'Y-SS A RESOLUTION OF THE KENAI PLANNING AND ZONING COMMISSION RECOMMENDING THAT THE KENAI CITY COUNCIL APPROVE THE UPDATED T-IISTORIC PRESERVATIOI~T PLAN FOR THE CITY OF KENAI, WHEREAS, KMC 14.20.105(1}(3) requires that the City develop a local historical prescrvation plan that is compatible with the Alaska Sfate Historic Preservation PIan; and, WHEREAS, In 1998 the City Council adopted the first Historic Preservation PIan; and, WHEREAS, A review of the Historic Preservation PIan was completed by the Planning and Zoning Commission; and, WHEREAS, The Planning and Zoning Commission held work sessions with the Kenai Historical Society and the public reviewing and updating the preservation plan; and, WHEREAS, The Planning and Zoning Commission recommends that the updated Historic Preserve#ion PLan 6e accepted. NOW, THET2EFORE, 13E IT RESOLVER, that the Planning and Zoning Commission recommends that the Tfenai City Council accept the updated Historic Preservation PIan as submitted by the Planning and Zoning Camniission. Alaska this 10th day of October. 2007. A 100 City of Kenai PRESERVATION PLAN Prepared ay. The Planning & Zoning Commission - 2007 101 FOREWOF2D The Historic District Board drafted the City of Kenai's first Preservation Pion. That plan was adapted in 1998. In 2091, the City of Kenai amended the Gity's code and eliminated the Historic District Board and assigned the duties of the Board to the Planning and Zoning Gommission. The original Preservation Plan depended heavily an the "Kenai Townsife Historic District Survey Reporf"that was published in July of 1996. The Commission continues to rely on that report for preservation activities in the Townsite Historia Distriat. This report contains a weal#h of information about the District and its history. Copies of this document are available for review at the City of Kenai Publio Library and City of Kenai administrative offices. 102 CITY OF KENAI PRESERVATION PLAN TABLE OF CONTENTS - MISSION 5TATEMENT :...................................................................................... .2 - DESCRIPTION OF THE HISTORIC CHARACTER OF KENAI FROM PREHISTORY TO PRESENT :...............................................:............................. .2 - SUMMARY OF PAST PRESERVATION EFFORTS :............................................ 3 - SURVEY OF HISTORIC RESOURCES IN KENAI :................................:............. 3 - ARCHAEOLOGICAL AND HISTORIC CONTEXT OF KENAI :............................. 4 - HISTORIC BUILDINGS AND SITES ALREADY IDENTIFIED :...........................:. 4 1' PROCEDURE FOR NOMINATION FOR FUTURE HISTORIC SITES :................ 4 - LEGAL ORDINANCE WITH MAPS, ZONING, AND DESIGN GUIDELINES:....... 5 - HISTORtC PRESERVATION EDUCATION FOR THE COIv1MUNiTY :................. 5 - DEVELOPMENT RECOMMENDATIONS :............................................................ 6 - PLANNING AND ZONING COMMISSEON MEMBERSHIP :.................................. 7 - STATEMENT OF PUBLIC SECTOR'S RESPONSIBILITIES TOWARD CITY- OWNEDHISTORIC RESOURCES {SUCH AS PARKS, STREETS, PUBLIC BUILDINGS, ETC.) ...............................................................................................7 - PROCEDURE FOR ANNUAL REVIEW AND FUTURE PLANNING :...................8 City of Kenai Preservation Plan Pzge 5 of $ 103 NfpS3/C}Rf 57,47'EMEPdT; The Planning and Zoning Commission shall strive to preserve the cultural and historical features unique to the Gity of Kenai and fhe Tawnsife Historic Zone. The Commission shall: • Review and comment to the State Wistoric Preservation Officer on all proposed National Register nominations within the boundaries of the City. When fhe Commission considers a National Register nomination that is normally evaluated by professionals in a specific discipline, the Commission wilE seek expertise in this area before rendering a decision. • Work with other agencies and entities to enhance public knowledge about fhe Gity of Kenai's history. • Encourage the dissemination of knowledge through signage, brochures, maps, or whatever mediums necessary and approved by the City of Kenai and fhe State Historic Preservation Office. • Review community improvements and make suggestions where historical and cultural impact can be expressed. ;r3ESCt?fP'T'f~N OF' THE' Hla7`f~RIC GHAfv'ACTE'R ~F 6~EN,4l FROM PRENfS'f'ORY TO P$?ESEflrT: The prehistory and recorded history of Kenai dates some 14,440 years beginning with the Riverine Kachemak people about 8,4p4 B.C. An Athabaskan culture, the DenaSna displaced the Riverine Kachemak people about 1,444 A.D. The first white contact came when Captain James Gook mapped the body of water named after him, Cook Inlet, in 1191, During the same decade, the Russian fur trade expanded its operation to fhe Kenai Peninsula and the Russian Orthodox Church began to baptize the native people into Christianity. The purchase of Alaska by the United. States in 1867 marked another milestone for Kenai, followed by its Earty Community Building Era from 1898-1925. The Kenaitze subsistence iifeway overlapped several of those same years running from the turn of the century through World War It. City of Kenai page 2 of & Preservation Plan 1~4 Postwar community growth naturally fo({owed, including the discovery of oil in 1957, Alaska became the 49th state in 1959, and one year later, the City of Kenai became officially incorpora#ed. {For complete details see pages 11-50 of the `Kenai Townsite Hisfaric District Survey Report.') SUMMARY t3F PAST PRESERVATION E'!/'F~3RTS: The City of Kenai and the Kenai Historical Society are largely responsible for past preservation efforts beginning with the memorial fo Fort Keriai constructed in 1957. The members of the historical society managed the operation of the museum at Fort Kenay for the following ten years, and through their dedicated efforts, successfully restored St. Nicholas Chapel and four cabins in the OId Town area. The City of Kenai established the Kenai Tawnsite Historic District by adop#ing an ordinance in 1993. in 1995, the City of Kenai appointed a Townsite Historic District Beard as a step toward a formal preserva#ion program and was granted Certified Local Government (CLG} status by the Alaska State.. dffice of History and Rrchaeology. to 2001, the City of Kenai's coda was amended. The amendment eliminated the Townsite Historic District Soard. At that time, the Planning and Zoning Commission assumed responsibility for historic preservation in the City of Kenai. {For complete details see pages 47-49 of the "Kenai Townsite Flistaric District Survey Report.') SURVEY C7F HIST~RI~ RESC3URCE5 lIV KEiVA1; As the recipient of a 1995 Certified Local Government Grant, the City of Kenai's Historic District Board contracted with a historian and an architect {Preservation North) to survey the buildings, structures, objects, and sites within the boundaries of the Townsite Historic District. Published in 1996, this report documents in detail the thirty-four properties along with information on ten properties adjacent to the district boundaries. Using the criteria of the National Regis#er of Historic Places, the survey report has provided both the City of Kenai and the State Office of History and Archaeology with the baseline information necessary for historic preservation planning. (Refer to the "Kenai Tawnsite Historic District Survey Report" far complete details.) Czty of TCenai Praservacion Plan Page 3 of 8 105 ARCxAEacoG/CAL AN® Iar~TC~RIC Ca~TExT o~ KEN,41.' Although several archaeological studies have been conducted at Dena'ina village sites, few artifaats have been uncovered due to the Dena`ina belief that aU natural resources be returned to the earth or sea from which they originated. Nineteenth century journals and letters of European and Russian explorers have provided primary sources of infarma#ion describing the lifestyle of the inhabitants. (See pages 11-49 of the "Kenai Townsite Historic District Survey Report" for complete details.) H1ST®RIC BUILDINGS AND SITES AC.RE~IDY /DENTIEIEl3: The thirty-four buildings and ten ad}"anent sites in the Townsite Historic District have been documented with a short history, a basic description with tables, maps, historic photographs and current photographs. Arranged by the historic themes and general non-historic categories, the survey evaluates each property according to the National Histaria Register guidelines. These properties are now on fife with the Alaska Heritage Resources Survey (ARKS). See pages 56-154 of the "Kenai Townsife Historic District Survey Report." PROCEDURE FOR NOMINATIE)IV EC3R FUTURE HISTORIC S/TES: Individual property owners may choose to nominate their property and(or buildings to the National Register of Historic Places. The Planning Department is willing to assist property owners in preparing for the required local review. After the focal review, the nomination is forwarded to the State Office of History & Archaeology. Attachment R, "The National Register of Historic Places" and Attachment B, "National Register of Historic Places Rights of Owners to Comment and/ar To Object to Listing" provides additions{ information on the nomination process. In addition, see pages 183 through 185 of the "KENA/ TOWNSl7'E HISTORIC DISTRICT SURVEY REPORT." The fo{lawing rnateriais are avaiiab3e for review at the City of Kenai Planning and Zoning Department to assist in the nomination process: City of Kenai Page 4 of $ -... Preservation Platt 106 ® "Kenai Townsite t-listoric District Survey Report", Preservation Nnrth, July 1996 • "?&A -National Register Bulletin; How to Complete the National Register Registration Form" The following nomination forms may be obtained from the City of Kenai, Planning & Zoning Department or at the World Wide Web at http:/fwww.or.nps.gavlnrlpublications/forms.htm: NPS Form 10-900: National Register of Historic Places Registration Form NPS Form 10-900a: National Register of Historic Places Continuation Form LEGAL ORDdiVANCE ItlOITI-{ MAPS, ZC?Cr6dt~G, ARID DESIGN G U/DELINES: Title 14.20.105 of the Kenai Municipal Code, which is the legal ordinance outlining the intent of the Townsite Historic Zoning District, is attached as Attachment C, In addition, Attachment D (Land Use Table} and E (Development Requirements Table} are provided which specify allowed uses in the TSH zone and development requirements. See Attachment F for the Townsite His#oric District map. HISTORdC PRESERVATfCN EDUCAT6ON FOR THE CfJMMUNITY: The Planning and Zoning Commission is responsible for development of the City's Historic Preservation Plan. As oppor#unities arise, the Commission will participate it educating the community about its cultural resources. The following historic themes represent possible education projects. • Dena'ina Building Tradition: A. D. 1000-1890 • Russian Exploration and Fur Trade: 1741-1666- • The Russian Orthodox Church: 1841-1906 (Extant properties, 1881-1906) ® United States Purchase of Alaska, 1867: Fort Kenay, 1869-1870 • Early Community Building Era: 1889-1925 ® Kenaitze Subsis#ence: 1900 - 1941 • Federal Programs for Agriculture and Sustainable Resource Management: 1898-1958 (Extant properties, 1935-1958) • Post War Community Growth: 1948-1958 • Post Statehood Development: 1959 - 1996 City of TCenai Page 5 oY $ Prasezvatson P.an 107 !n 1998, the City of Kenai, in a joint effort with the Kenai Visitor`s Center, developed a walking tour brochure that guides citizens through Ofd Tawn past the historical properties that were recognized as part of the signage project. The signage project was oampleted in 1997, These projects continue to provide education to citizens and visitors. C7EVELC>PMEtVT fai~Cf7MMEPid3ATfQ141S: The historic district must be an alive, inviting, and active place to assure historic preservation. Development of the Townsite f-Iistoric District (TSH} should be promoted to assist in this historic preservation. Well-planned development can spur the economics and interest that promote action. The City and its citizens are in the best position to kindle that development by encouraging and supporting the following concepts: Development of a master plan for TSN that has among its goals and objectives historic exhibits. This may require sand swaps of City property to obtain parcels of land to accommodate the master plan. Providing mare greenbelt common areas with developed connecting pathways, preferably along view areas. o Consider providing tax incentives to develop econornic enterprises in TSH. ® Continuing the upgrade of streets with street signs and lighting of uniform design to provide more visual unity in the district. ® Continuing participation with the Visitor's Center in developing and publicizing the walking tour and specific exhibts in the Center. 4 Review the Townsite Historic District Zoning ordinance to assure that development requirements protect and enhance the character of the zone. « Apply the Townsite fdistorio District Zoning ordinance to assure buildings, signage and other improvements are in keeping with a historic setting. o Continuing to landscape the City properties by keeping the area litter free and well groomed. Encourage placement of benches and trash receptacles. Encourage purchase of land for public use when Land in the District becomes available. City of Kenai Page 6 of ~ Preseraatton Ptah lo$ • Identify properties with historical significance located outside of the Townsite Histarin District. • Consider expansion of the Townsite Historio District when properties are identifred with historical significance. • Encourage development of an hisfiaric block (Lot 3, Block 17, Original Townsite of Kena€} on the City property where fhe historic Civic League and Kenai Fire HaltlJail buildings are currently located. PL.4N/VIIVtF AN® Z(JN1Nta COMMdSS101~' ME1E~'BERSl~DlP: The Planning and Zoning Commission is responsible for historic preservation within the City of Kenai. See Attachment G, Planning and Zoning Commission raster. sT,aTEt>~En~T o~ ~ue~.tc sECTaR=s rESpoe~s~~r~.rT~ES rawaRfl CITY-awfVED HISTORfC RESE7CIf2CEs (SUCB~' AS PAF2KS, STREETS, PUSLlC Bt1lLd7/NGS, ETC.} En order to faster strong community relationships and strengthen historic preservation, fhe Planning and Zoning Commission adapts Gooks 2 and 4 of the Alaska State Preservation Plan, which spenifies fhe following: • Support and strengthen local historic preservation efforts. • Encourage Alaska Natives to identify concerns and develop strategies to protent their cultural resources. • Encourage nonprofit statewide organizations, including the Alaska Anthropological Association, Alaska-Association of Historic Preservation, Alaska Historical Society, Keepers of the Treasures -Alaska, and Museums Alaska to promote historic preservation. • Foster stewardship of cultural resources by public agencies and private individuals and groups. • Use emerging technologies to improve communication among organizations and individuals interested in historic preservation. City of Kenai Page 7 of 8 Preservation Plan 109 • Review development projects to protect cultural resouraes. • Review emergency response laws and ptans so that cultural resources receive maximum protection in the evenf of a disaster. • Promote the role of local preservation programs in efforts to maintain and enhance a community's character.. ® Promote incorporation of preservation issues in plans. PROCEDUF2E F062 ~4iVNUA~ f2EVdE'W AIttD FUTURE Pl,~ldVl1EJIVt~: It is the duty of the Pianning and Zoning Commission to annually review the survey of historic properties in order to include any new information That may have arisen in regard to the accuracy of each historiaat site. Therefore, of the end of each calendar year, the Planning department administration shall review the survey, submit corrected information to the State Office of History and Archaeology, and inform the Commission of the findings of the review. Planning Department administration will prepare an annual report for submittal to the Slate Office of History and Archaeology. This reporf will cover the following Topics: • Lacai Preservation Ordinances • Local Historia Preservation Commission Or Board • Survey And Inventory Of Historia Properties • Preservation Planning Activities • National Register Program Participation • Protection Of Historic Properties • Public Education Projecfs • Historic Preservation Grant Activities • Other Preservation Activities The Commission is provided a copy of the report. City of Kenai Pbge & of 8 Preservation Plar; 110 ATTACHMENTS A. The National Register of Historic places Nomination Process B. National Register of Historic Places -Rights of Owners to Comment and/or to C}bjecf to Listing C: KMC 94.20.105 -Townsite Historic {TSN) Zoning Districf D. Land Ilse Tabie wifh Footnotes B. Development Requirements Table F. City of Kenai Townsite Historic District Map G. City of Kenai Planning & Zoning Commission Membership Roster T-L Alaska°s Hlstaric Preserration Plan Ciry of Kenai Page 9 of 8 Preservation PIan 111 Attachment A National Register of Historic Places The National Regis*.er of Historic Places is the nation's list of historic properties worthy of preservation. Authorized under fihe Nationai Flistoric Preservation Act of 1966, the National Register coordinates artd supports public and private efforts to identify, evaluate, and protect historic and archaeological properties. Properties of local, state, or national sigNficance are eligible: Nationai Register nominations are made through the State Historic Preservation Office and are reviewed by the Alaska Historical Camrnission. Upon favorable review, the nomination is sent to the Keeper of the National f2agister For final review. Listing on the National Register acknowledges the historic importance of a property, provides some protection from adverse impacts of public works praJects, end maiees it possible far a private owner to take advantage of tax credits for rehabilitating income-producing historic properties, Applications and bulletins are available by contacting the OHA office at: Office of History and Archaeology Alaska Division of Parks and Outdoor Recreation 55D West 7th Ave., Suite 131.0 Anchorage, Alasi<a 99501-3565 Fldditiortai information may be Pound at the !National Park Service -National Register of Historic Places web site at; http;/twww.cr.nps,gov/nr/index.htm 112 Attachrttent B ASAY~Of~6dEL R~Cx7s51"~R C7~ P9ISTORTC C~LEOCE~ K:ISz9i"6'~ S}F tY9lcfN~52~'CC4 C~R4PHEi~'r fi,IVt3/CmFY T43 C)~3~C'f `~~ t.Ia~'iFd~ Owners of private properties nominated to the National Register of Historic Places have an opportunity to concur with or object to listing in accord with the National Historic Preservation Rct and 36 CFR 60. Any owner or partial owner of private property who chooses to object to listing may submit, to the State Historic Preservation Officer, a notarized statemenk certifying that the party is the sole or partial owner of the private property and objects to the listing, Each owner or partial owner of private prope~y has one vote regardless of the portion cf the property that the party owns, Tf a majority of private property owners object, a property will not be listed, However, the State Historic Preservation Officer shall submit the nomihation to the Keeper of the National Register of Historic Places for a determination of the property's efigii7il'sty for fisting in the National Register. if the property is then determined eligible for listing, although not formally ;fisted, federal agehcies will be required to allow the Advisory Council on Historic Preservation an opportunity to comment before the agency may fund, license, or assist a project which will affect the property. If you choose to objeck to the Ifsiing of your property, the notarized objection must be submitted within thirty {30) days of receipt of this letter ta: Judith E. Butner, State Historic Preservat[on Officer Office of History and Archaeology Alaska Division of Parks and Outdoor Recreation 550 West 7th Ave., Suite 1310 Anchorage, Alaska 99501-3565 If you wish to comment on the nomination of the property ko the National Register, please send your comments to the State Historic Preservation Office within thirty {30) days of receipt of this letter. Additional information on the Nationa! Register and the federal tax provisions is available From the above address upon request. 113 Attachment C KENAT MUI~YCIPA! Cdt3E TITlE KMC 14.20.10 1~.2C.105 Townsite Historic tTSHk Zoning District: (a} Intent: The T5H Zoning District is intended to provide for a mixed, controlled use in a designated area, which wiU protect and entrance the historic character of the zone. The goal of the TSH zone is to manage all new development, reconstruction and alterations within the zone. (b} Application: An application requiring review in TSH Zoning District shall be filed with the Planning Department. The TSH zoning district, as Iecated within the bounds shown on the City of Kenai Official Zoning Map. The application shall cflntain: (1) One (1 }reproducible copy of the application signed by the applicant and, if leasing the premises, co-signed by the owner indicating type or nature of business. (2} Current Dolor photographs of the site and of any existing structures representing both the overall condition of structures and accurately portraying materials and color. (3} Reproducible schematic plans of the proposed construction sufficient to show building size and layout, exterior elevations, proposed materials and colors. (4) A landscaping and site plan complying with KMC 14,25 and the development criteria of this chapter drawn to scale showing the existing structure and all proposed alterations and additions in relation to the site. (c) Development Criteria: The development criteria is intended to provide for a district in which residential and business enterprises cahabit- habitat as a desirable and compatible use. All proposed construction, renovation, dernoEition, or alteration shall: (i) Encourage, whenever passible and compatible with historic character of the TSH zone, foot traffic; restaurants, gift shops, parks, etc.; indigenous Kenai Peninsula flora; wooden structures including log style with soft coiordd or naturalsidings. (2} Disoourage uses which will violate the historic and scenic quality of the TSH zone; buildings and building additions fihat are not compatible with adjacent buildings or which violate the existing character and scale of the district. (3} Specific structures and activities which wil! not be allowed, but are not limited to: (a} Buildings with "modern design style of archi#ecture" that have no historical correlation with the district; 114 KMC 14.20.105 (lr) Gas stations; (c} Auto repair shops; Page 2 (d) Kennels ar similar uses; (e} Livestock, stables, commercial horseback riding; (f} Auto body and paint shops; (4) Commercial buildings are limited to a total area of no more than five thousand (5,000} square feef per story. Any individual unit within the struatura may be of no more than two thousand five hundred (2,500) square feet, except that the Commission may aEiow a larger individual unit if it is determined to be eornpatible with the zone. {5} Meta{-sided buildings may be allowed if fhe Commission de#ermines they are compatible with the zone. (d) Criteria for determining acaeptable use shall include, but not be limited to the following: (1} A8 alterations to existing structures shoutd be performed so as to preserve the historical and architectural charaater of the TSN zoning district. (2} The distinguishing original qualities or character of a building, structure, or sife in its environment shaft not be destroyed. The removal or alteration of any historic material or destruction of architec#ural features cannot be dons without approval. (3} Ghanges which may have taken place in the course of time are evidence of the history and development of a building: structure, or sife, and its environment, These changes may have acquired significance of their own, which should be recognized and respected. (4} Landscaping requirements aacording to City of Kenai as required by KMC 14.25. (5} All exterior construction must be completed within a year of date of approval. (e) Existing structures: All structures existing prior to the enactment of this ordinance will be allowed to continue in their present form and use. In the event of lass of the exisfing structure due to demolition, fire or nature{ causes, the structure may be rebuilt with the following requirements: (1) The structure fa be rebuilt must aonform to the previously existing structure in terms of size, shape and location unless the Commission determines the new structure is more compatible with the intent of the TSH zone. (2} The use of the new structure must be the same as the use of the previous structure. 115 KMC 14.20..105 Page 3 (3) Application for reaanstruction of the struature must be made to the Planning Department within one (1) year of the date ofi loss due to demolition or damage. (4} Reconstruction of the structure must be complete within two {2) years of the date of the Idss due to demolition or damage. (5} If applicant wants to rebuild, other than apre-existing structure, the existing structure provisions as stated above are not applicable. {f} Criteria far designation of landmarks to be included in the TSH zone: {i} Its age-approximately fifty (50} years old. (2} its character, interest or value as part of the development, heritage, ar cultural characteristics of the City of Kenai. (3) Its #ocation as the site of a significant historic event. (4} Its identification with a person ar persons who signifiaantly contributed to the euiture and development of the City of Kenai. (5) Its distinguishing characteristics of an architectural type. (b} Its relationship to other distinctive areas tha# are eligible for preservation according to a historical, cultural, ar architectural criteria. (g} Uses. (1) Principal Permitted Uses as allowed in Land Use Table. (2) Conditional Uses: As allowed in the Land Use Table (KMC 14.20.150) and subject #o the provision of this chapter. (h} Review Process. The Commission will review ail building permit applications as wail as ail exterior architectural alterations and demolition fo properties included in the His#oric Preservation Plan. Upon submittal of such an application, the Planning Department shall schedule the application for review by the Planning and Zoning Commission at the following appropriate meeting. Any other building permits within the Townsite Historic District shall be handled administratively by the Building Official. (3} Historic Preservation. The Commission sha11: {1} Conduct or cause to be conducted a survey of the historic, architectural, and archaeological resources within the community. The survey shall be compatible with the Alaska Heritage Resources Survey and able to be readily integrated into statewide comprehensive historic preservation planning and other planning processes. Survey and inventory documents shall be maintained to protect the site locations} from possible vandalism. The survey shall be updated annually. (2} Review and comment to the State Historic Preservation Cfftcer on ail proposed National Register naminatlons within the 116 KMC 14.20.106 Page 4 boundaries of the City. When. the Commission considers a National Register nomination that is normally eva3uated by professionals in a specific discipline, the Commission will seek expertise in this area before rendering a decision. (3) C}evelop a IocaP historical preservation plan that will be compatible with the Alaska State Historic Preservation Plan and produce information that is compatible wifh the Alaska Heritage Resource Survey. (4) Signs. Signs shall be as allowed as set forth in KMC 14.20.220 {b)• (j) Penalties. Penalties for non-compliance wifh this Chapter shall be as set forth by KMC 14.20.280. (k) Definitions. (1} Alteration. Any act or process that changes one or mare of the exterior architectural features ofi a structure, including, but not limited to, the erection, construction, reconstruction, or removal of any structure which requires a building permit. {2) Construction. The acf of adding an addition to an existing structure or the erection of a new principal or accessory structure on a lot or property which requires a building permit. {3} bemafition. Any ac# or process that destroys in part or in whale a landmark or a structure within a historic district. (4} Certi€ied Local Government. A local government "that has been certified to carry out the provisions of Section 101{b) of the National Historic Preservation Act." (5} Historic D'sstrict. An area designated as a "historic district" toy ordinance of the City Council, which contains within definable geographic boundaries, one (1) or more landmark and which may have within its boundaries other properkies ar structures thaf, while not of such historic and/or architectural significance to be designated as landmarks, nevertheless contribute to the overall visas! characteristics of the landmark ar landmarks located within the historic district. (6} Historic Preservation. The act of adopting regulations and restrictions for the protection and preservation of places and areas of historical and cultural importance to Kenai. {7} Landmark. A property or structure designated as a "landmark'" by ordinance of the City Council, pursuant to procedures prescribed herein, that is worthy of rehabilitation, restoration, and preservation because of its historic and/or architectural significance to the City of Kenai. 117 LAVA USE TABLE KEY: P = Principal Permitted Use C =Cooditiona) Use $ s Secondary Use N =Not Permitted NOTB: Reference foomotes on following pages for additional restrictions 20NTNG DTSTXtTC'FS 12CSTDENTIAY. ~ 1 LAND USES C RR RRk RS ~ RSY RS2 RU ; CC CG YL ` YY~Y ED R TSYY Y.C CM(7 One Family Dweiling C~6 P i p P P P P Pty S' S` S'i , C" F P P S'IC"' TwolThree Family Dwelling C° P P ~ P ~ ~ P P P P01 S' C I C~ C62 P P P S'/Ct~ Pourpamiiy Dwe;li»g C° P C' I ~ P' N N P P21 S' C C C" N P C S7C"'' Pive/Six Family bwaflfng CL4 C' N P N I N~ P ~ P01 S' C C N N P C S'/C'"I Seven or Mare Family Dwa!ling C1B C' N C' N N i P Pn S' C CI N N P C S4C'~ Townhouses" _ C`a C C C C C i C C C C i i C C" C C C C Mohile Home Parks` N C C C C ~ C C C C A N C N C C '. Plamred Unit Residential Development' C's C C C C C C C C C C IN C C C C '. COMYI'rC1iCTAL I LAND USES C RR RY27. R5 ' RSl RS2 RU CC CG YL YY3 ' ED R ' TSYY i LC CMU'. Automotive Szles ~ N C C N N N C P P P P N N N N P Automotive Servico Stations N C C N N N C P P P P N C N N P ~~'~. Ranks ~ C C i C N N C P P P C ( N C C C P BusinesslConsumer $erVICCS N C C C N N C P P P C N C C C P '~~ C?nidc Service N C C C N N C p P P P N P P C P' I~Yotels/Matels ._.._ N C C f. N N C P P P C N ~ C P C P ~, Lodge N C C C N N C P P P C N P P C P !. Professional Offices N C C C N N P P P P P N C p P I Y Restaurants N C C C N I.r C P P P C N C C P P! Retail Business NQ6 C C C N N C P P p p $" $'" C C A ~! C'Wholesale Business N C C C N N C C p P - P N S'" C C N TheaterslComtnerciaf Reoreation N C C C N N C P P C C~ N P C C P '', '. 118 LAND I7SE TABLE KPY: P ° Principal Permitted Ilse C= Canditianal Use S =Secnadary Use N =1Vat Pc milted NOTE: Reference footnotes on following pages for additional restrictions Z©IdLNG L)ISTLtLCTS INl)TJSTItLAL LAND I7SES Airports and Related Uses C P's RR C RRl i C RS i~ C RSY N RS2 N RU C CC P CG P i IL P IH P TsD N R C TSIi N LC N CMU C~ i Automotive Repair N C C C N N C I P P P P N N N N P Gas Manufacturer/Storage N N C C N N N N N C' C" N N N N O N ManufactitringlFahricating/ AssembCy Sterage N C C C N N C C P P p N C C N C Warchauscs N C C C N N C N P P P N C N N N IxLTBLIC/ LNSTLTUTIC}NAL LAND USrS C RR RRI RS RSI RS2 , RU CC CC IL III 1';D R TSII LC CMIJ Chariiabla institutions C ~I t- C e c C C P P P P P P ~C P C P Churches" C Pra pro Pw pro Pt6 Pro Pao Pio C C P PtD P P P Clinics C C C C C C C P P P C C C C P P Colleges" C C C C C C Y P C C p C C C P Elementary Schaals* C C C C C C C P P C C P C C C P Governmental Buildings C C C C C C C P P P C P C C P P Aigh 9chonls* i C C C I C C C~ C P P C~ ~ C~ P i C C i C~ P Hospitals" C C C C C C C P p P C C j C C' C P Libraries" C C C C C C Cr' P P P C p C- P C P Museums C C C C C C C P p P C P C P C P Parks and Recreation P C C C C C C P P P P l p p p C P Assisted Living C C C C~ C C C C C C C C O C C C Attachment D 119 LAND USE TATTLE KEY: P=Principal Permitted Use C = ConditEOnal Ore S =Secondary Uac N =Not Permitted 2iOTii: Reference footnotes an fol(awing pages for additional restrictions MISCELLANEOY3S i LAND YISES C TiR RTtf RS RST RS2 RU CC CG XL IH Eb E 1'Sbi LC CMU _ Animal Hoarding" C C C C ~ C N N C C C C N C N C ~ C' Eed azrd Hreakfases C C C C C C C C ~ C C C N C C C P (:abin Rentals C C C ~ C N N N P P _ P C ; N A P P C P Cemeteries C C C C N N N N C C C' N C C N N CrematoricslFunual N C N C N N C C C C C N C C C C Homes B ~ ~ i '~. Day Carc Centersts C ~~ C C C C C C P ~ P P G C C C P P Dormitocies/Hoarding v C C C C C C P P" S C P Pia C C P P HOUa~ } Essential Sarvicos P P P P P P P~ P P P P P P P P P Farming/Gcneral P P N N N N N N N N A P N P N N N Agriculture*** GreanhouseslTree C C C i G C C C P P P C N C C P ~ P Nurserias° ~ ~ Gurrsmithing, Pirating. N C C C C C C P P P P N C P P P Taxidermy Assemb;ies"(Large; C C C C C C C Prs pu Pis Pis' pis C P N Pu ~ Circuses, Fairs, E[c.} Pratetna)-0rganizatiansf N C C C C C C P P P C N C P C P Private Gnbs(Soaial Hans and Union Halls Nursing, Convaleseenf or N C C C C C C P P C C C C G C P Rest Homes Parking, OfY Street P P P P P P P P P P P P P P P P Parking, Puhlic Lots" C C C C C C C C C C C C C C C C Persona( Scnicesii C C ., C. C C C P P P P C C P P P RadioR'Y P P C C C C C P P P P P C C C P '. TrattsmittustCcll Sites*x Recreational Vehicle Parks C C C C N N C C C C C N C ^ C N C Subsurface Extraction o£ C C C G C C S C C C C C N C N N N NatwN Resaurces16 Surface Hxtraction of C C C C N N C N C C C N G ~ N N N Natural Resources" ~ 120 * See 42 USCA Sec. 200Qce (Religious Land CJSe and Institutionalized Persons Act af2Q00) *` See 42 Telecommunications Ac[of 1996, Sea. 76h(a) #sk See, however, the limitations imposed undarKM£ 3.IO.p70 Foafnotese 1. Allowed as a secondary use except on the ground floor of the part of the buildsng frcnting on ao(lector streets and major highways. Commercial or industrial which falls under the landscapinglsite plans requirements ofT{MC 14.25 shall include any secondary uses in the landscaping and situ plans. 2. One (1}single-family residence per parcel, which is part of the main building. 3. Allowed as a owtdl6onal use, subject to satisfying the following conditions: a. T he usable area per dwelling unit chalk be the same as that required fm~ dwelling units in the RS zone; b. 'Phe site sgaare footage in area must be approved by the Commtssion; c. Xards around the sito, off-street parking, and otltar development requirements shall be the samo as far principal uses in the .RR zone; d. Water and sewer facilities shall meet the requirements of elk applicable health regulations; e. The proposed dwelling group will constitute a residential aroa of sustained desirability and stabilhy; will be in harmony with the character of the surrounding neighbaritand, and will not adversely affect surrounding propory Va1lleS; f. The buildings shall be used only for residential purposes and cssstomary ancessory usos, such as garages, storage spaces, and recrcakiona] and community activities; g. There shall be provided, as part of the proposed development, adequate recreation areas to serve the needs of the anticipated population; h. The development shall notproduce a volume of trafFie in excess of the capacity for which lire access streets are designed; i. The property adjacent to the proposed dwalhng group wilt not be adversely affected. 4. See "Townhouses" section. 5. See "Mobile Homes" section. 6. Allowed as a conditional use, subject to "Mobile 1-Somes" seatiou and provided that any mobile home perk meets the minimum Pcderal Housing Authority requirements. 7. Sae "Planned Unit Residential Development" section. g. Aitowed as a conditonal use, provided that fho proposed location and the charaatecisttcs of the site will no[ destroy tho residential character of the neighborhood. 4. Allowed as a conditional uso, provided that a[1 applicable safety and fire regulators are met. ID. Provided thaf no part of any buitding is located nearer than thirty (30) feet to any adjoining street or properly line. 11. Allowed as a conditional use, provided that no part of any building is located ncarea' than thirty {30) feet to any ~~ adjoining stroet or property line and provided further trial tho proposed location and characteristics of the use will not adversely affect the eommaraial development of the zone. 12. Allowed as a conditional use, prov[ded that the following conditions are met: a- The proposed looatton of the use and Cbe size and charadaristio of the site will maxi;nize Sts benefit to the public; b. Hxits and entrances and off-street parking for the use are located to prevent trafrlc hazards on public streets, 13. Aitowed as a conditlonal uso, provided that setbacks, buffor strips, and other provisions are adequate to assure that the use wilt not be a mrisanee to surrounding properties. The Commission shall specify the conditions necessary to fulfill this requirement. l4. Allowed as a conditionak use, provided that no indication of said use is evident from the exterior of the mortuatry. 15. Allowed, provided thaz the following conditions are met: a. An uncleared buffer strip of at least tl»tty (30}feet shalt be provided between said use and any adjoining property in a residential zone. Attach[ncmt D ~~ 121 b, Exits and entrances and off-streot parking for the use shad be located to prevent trnfiia hazards on the public sceets. IG. See"ConditionaLUses"section. 17. See "Conditional Use Permit for Surface Gxpaetion ofNatura! Resources" sootion. 18. Conditional Use af3owad only an privately held property. Not allowed on government lands. 19. Deleted by Ordinance 2144-2006. 20. The akport rotated uses allowed under this entry are aircraft approach zones per rCMC 1420.076(a}, except that £or propertios contained 'reside the airport perimeter fence or having access to aircraft movement areas, ramps, taxiways or parking aprons, FAA. authorised uses are allowed. 2I. Developments far .use shall be the same as those listed in the "Devolopmnnt Requirements Table" for the I2U/T5A zones. 22. Allowed as a conditional use in conjunction with a permitted use in the ED zone. For axatnpie, housing foe toachors or students for a school in the zone. 23. Allowed as an accessory use in conjunction with a permitted use in the ED zone. For example, a dormitory used to house students for a school or educational facility. 24. Retail businesses allowed as a secondary use in conjunction with the primary use (o.g, a gift shop or coffee shop within another business). 25. Art studies, barbers, beauticians, dressmakers, dry cieanexs and solfserviee laundries, fitness centers, plrotagraphic studios, tailors, tanning scions and massage therapists. 26. Food services are allowed nn a temporary or seasonal basis of not more than four (4} months per year. Attaohment D 122 14.24.010 Chapter 14.24 DI:V~I.C)PMENT 12~QYIII2)JMENTS TABLES' Sections: 14.24.Oi0 Mi»imltm lutarea regiliremenfs. 14.24>.020 General requirements. ,. 14.24A30 Addendum to denelopl»ent requireme~tfs fables, " - " Shclor's No[¢; .The dovbta,mn¢nt r¢gniremenls rnhlcs were moved to Hteirown chapter by reg0cst afthe city, ' 14.24,010 Minimum tot al•ea requirements, „ . Tuble la.2a,oto #ABVEL{}Ptlt~hiT.RE¢UBRER9GNTS TABLE. . Attachment E LQNINC UIS'I'aNCI'S . , USES 'C/itR RRl RS R51 RS2 RUICSN YL/t Ii/CC{CCICMU R CD LC MiR'IMUlvt LOT ~ i AREA {square feet) Singt¢/rwo/Three ~ 20,000 20.000 7,200 12,500 7,200 9,2bb 20,000 20,000 12 SOtl Pamlfy dwelling , , Paur Famlly 20,006 22,40D 9,b00 N N 7,200 N . N . 12,300 pwelSSnR" ~ --~- ~ S¢c inddviiluat FSve Famtty 22,400 N 42,000 N N ?,200 ae¢tlbne of N 'N 12,500 DtvClllttg ~ Cade For Slx Fam0.y Dwc10ng 24,600 N Iq,g00 N N 7200 requirements, N N 12,500 Seveh or-Mbrc ~ 27,200+ N 16,600+ _ N ~ N~~ h,200 ~ - N N 92,500 (inmlly Dwe116ig 2,400 for ~ 2,400 for ¢ach unit each unit ~ ' over? over? ~ ' Koy: N = Na allowed. Poainot¢s: (1) Listed sgtwre tootoges are lho mtnimn+n requhed fm ¢nch zone, (2) Greater !a square faotages may 6e required b satisfy Alaska Repartmeni oP Hnvironmental Conservation (ADEC) requirwnents where on- site water supply andlor sewer Is necessary. (d) Minimum lot size for non-residential uses in $D zone is 40,000 square feet. (4) Min{nutm lot sitA Par r¢sidentia# uses in the CMU zone is 7,200 square feet, (Amended during 7-7-99supplement; Ords.1862-2000,2681-2Q05,2185-2006} (Knrni Suptr. No. 89, 1206) 296 123 19.24.020 -~ 14.24.02 General regl3lrexnents. r '~ ~ Txbla I4.24.02ff BGVELOTM~N'C REQOIRERIT.NTS 7'ARLE ZONING DISTRICTS USES C/RR RR1 RS RSF RS2 RUITSH iLpH1CCICGlCMU R CtiD !,C ~'. M1NIR2UM LOT 90 90 SO fi0 64 60 ~ 90 96 90 wlD9`H (PcoC MINIMUM LOT SIZE (feet) FrotMr 2S 25 25 2S 2S 10 2S 25 25 Sides _ One-Stdry' IS S S S ~ S S Soe ind{vldnal lS "5 I$ Daylight Basement! 15 10 lp 14 l0 5 sections ntCado for 15 lg 15 9plk Lovel' roquh-ements Two•Story' f5 15 IS IS 13 5^ I$ I$ 15 Rear 20 ~ 20 2tl 2C 20 i iD~ 20 26 26 ' Maximum Lot 30% 30% 30% 34% ~~ 34% 40% 30% 30% 36°k Coverage Maximum Holghc 35 35 3S 35 35 A3 (feat) Fonuwtes: (t) Provided the! tiro minimum frontsetback is measured from any eighGaFway ar access easement, (2) Sidc seltmcka nre detorfnincd independendy tYom the frost view of the slmctura, Plot p1aNAs-hunt will diatingitish single and two- story portions of building fo verify selbaok distances are met. (3) Story is that portion of a building included between the upper surface of any floor and line upper surface of the fieor next above or the ceiling or roof above, Ooe-slaty is defined os a s/ary having direct access from grade level without a tower story, A stmeture having n lower story situated below a cne~tory is considcmrla rote-story simcture in its entirely, Two-story fs defined as eneawry plus mots than onedralf(Ih2j the hcigln of the Tower story ail situated abovo grado. Daylight basement/split laud is daftned as etc-story phts Less than one-nal£(1/2) the height of the lower stgry nil sihiated above grade, For purposes of these faatnotes, Grade is defined as the tnwest point df elevation of the finished snrfaca of.the ground batwsea rho building and a tine ftve (5) fedt from rho building. (4) Except that ter each story over two (2} stories, each side and tbar yard shall 6e increased Three (3} feet, but need trot oxcced fooneen ("4} feel for each sii(e yard and nineteen (19) feet for ftse rear yard. (Amended during 7-7-99 supplement; Ords. 1862-2000; Ord. 1898-2001; 1956-2002; 1962.2002, 2081- 2©05, 2I &5-200b) 29Ga (genei Supµ No, R9, iZ•4G) 124 Attact~mant F 125 Attachment G PLANNTNCv & ZtDN%NCr COMM%SS%ON Meeks Second and T*ourkh Wednesday - 7:00 p.rn. Kenai City Council Chamhers Commission Member Name and Addzess Home Phone Business Phone Emai% Address Term Ends Tim Wisniewski Planning & Zoning Commission 5839 Kenai Spur Highway Kenai, AK 99611 283-4551 394-1040 283-3333 (p) 283-6I 16 (f) tirnterriQptialaska.net 24fl9 **Roy A. Wells 283-1429 283-5646 rawells<rDwradvisors.com 2024 Planning & Zoning Commiasion 414 Lawton Drive Kenah AIS 99611 PhilB~yson 283.4428 283-4672 pbrvsonrrwcbalaska.com 2020 Planning & Zoning Commission P.O, Box 1041 Kenai, AK 99611 Scott Romain 283-6174 262-8866, x35 {pJ scott(a)redoixbtrealtv.corn 2448 Planning & Zoning Commission 425 Rogers Road Kenai„ AK 99611 262-8853 (fj C. Arlette Baldwin Planning & Zoning Commiasion P.O. Box 16? 1 Kenai, ATC 9961I 283-2677 283.2142 (p} 283-3230 (T} taSisman0205 a otmait.cam 2448 *Jetf'L`wait Planning & Zoning Commission 2808 Julie Anra Drive Kenai, AK 99611 283-3919 262-2493 itwai naci.net 2009 Tony Lewis Planning & Zoning Commission 613 Cedar Drive Kenai, AR 99611 283-3874 tonylewis(o)alaska.net 2009 Council Member Riak Ross 1505 Kittiwake Court Kenai, AK 99611 283-8497 rossrckCalhokmai'..com Council Member Bob Molloy 283-7102 283-7373 (wk) batyn7mollovforcouncii.com 110 S. Willow St., Sie 141 Kenai, AK 99621 *Chair **Vice Chair (11/14f2007) 126 s v E U Q _~ 0 L Q1 L v ~L G! R a a C ~~ L C N N ~~!} ~YJI fp ~ O ~ ~ N C .C C _V N~ N di O m T~ a ,,, o v c vL o~ .NN~o~ °"ai~°~Lo ao~~~ ;c oa~~'O~ .~ ~ in p~ ~n 'O O ~ ~ TS (Nn 'd .c a ~ n, V a~ u .G 0 N i N p~ S1 .G ~~ t0 N N V "° ~C L caosomw~0 m v o u o a '- Ol C +~+ i L N C V C ~ C (U ~ u? ,U L O ~ i 'i cn a `Ct N 'L ~ i ;w t6 m O ~'cn~ca~'i ~u,~mwp~.c v m V a ram.se m V Q~a~aaUi> c ~ ~ ~'o ° N`S e m a~ ~_nvtNm } O ~ ~~ i ~ E ~ ~ ~ N. ~ C'tl L O ~ E U C V ~ ~ ~ O C ~ O N ~U U a OE "d ~ 0. 4 d E b ~ ~ C C C .rte ~- '~ O. b i O ~ p V O C U 0 tll A tO C N C, ~ L O. ~ O '6 'dpi]. C N } d 0 y O s y, N U ^Grnyn,~ N°~av~`~° c~u~i°'~o c>w:c~Om q, N y~ p X t~6 "C O Q L~1 tNp p o~~~ o v m Y m N N u~ ~ ~ f0 V .y. '~"' tl1 N p = VJ ~1 i7 ~ ~ N jTj~s~ E 0. {h Q.'6 ~ ~ d N ~ VNf N ~ .w N ..^.. 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T3 O .~., N m ~^ N p 4i p O V O ~ L L m~Q aQ, o~~°c~ c~'^oa w o cL,v ~ ~ y o rn ` o 0 ~(~7 aim c ~ ~. o m m 128 AGENDA KENAI CITY COUNCIL -REGULAR MEETING NOVEMBER 21, 200? 7:00 B.M. %{ENAI CITY COUNCIL CHAME httro: / /www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence an the agenda as part of the General Orders. ITEM B: SCHEDULER PUBLIC COMMENTS (10 minutes) 1. Jessica Martin -- Invasive Plants of Alaska ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF' PB ASSEMBLY LEGISLATORS ANR COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) Ordinanoe No. 226?-200? -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund for a Federal Grant. Ordinance No. 2268-200"7 -- Amending KMC 3.15.040 to Provide that 1j a Hearing Sha21 be Held to Determine Whether a Dog Kennel License Will be Granted or Renewed; and 2) Property Owners Within 300 Feet of a Parcel That is the Subject of a Dog Kennel License Application Shall be Notified of the Application and the Date, Time and Place of the Hearing; and 3) Setting Out the Appeal Process for Any Aggrieved Party. Ordinance No. 2269-200? -- Enacting Chapter 5.40 of the Kenai Municipal Code Establishing a Licensing Procedure for Pawnbrokers and Regulating How Pawnbrokers Conduct Business. Resolution No. 2007-62 -- Designating that Lot 1-A Sprucewood Glen Subdivision Number Two be Replotted and that a Portion of the Property in That Lot be Preserved as a Buffer. 129 (Clerk's Note: At the 10/17/07 meeting, council postponed action on Resolution No. 2007-62 unfit reviewed by the Airport Commission. The Ai.tport Commission reviewed different versions of the resolution at its November 8, 2007 meeting. The motion to enact Resolution A'o. 200-62 (as originally presented] is active.] a. Resolution Ido. 2007-Fs2 3u6stitzate "A" -- Designating That Lot 1-A Sprucewood Glen Subdivision Number Two be Replotted and That a Portion of the Property in That Lot be Designated as a Suffer. b. Resolution No. 2007-62 Sul~ststute "B" -- Designating That Lot 1-A Sprucewood. Glen Subdivision Number Two be Replotted and That a Portion of the Property in That Lot be Preserved as a Buffer. 5. Resolution No. 2007-70 -- Requesting the State of Alaska Department of Transportation and Public Facilities (ADOT/PF} Include in the Kalifornsky Beach Road Rehabilitation, Project 58703, a Separated Pedestrian Pathway from Station +/-827+00 (Cannery Road} to Station +/-944-00 (Bridge Access Road}. ]Clerk's R7ote: At the November 7, 2007 council meeting, Resolution Na. 2007-70 was postponed to fhe November 21, 2007 council meeting. The motion to approve Resolution No. 2007-70 is active.) 6. Resolution No 2007-72 -- Awarding a Sole Source Contract to Motorola, Inc., in the Amount Not to Exceed $58,640.00 to ProComm Alaska LLC to Equip the Kenai Public Safety Communications Canter. 7. Resolution loo. 2007-73 -- Awarding a Sole Source Contract to ProComm Alaska LLC, in the Amount Not to Exceed $243,000.00 to Equip the Kenai Emergency Operations Center. Resolution No. 2007-74 -- Authorizing City of Kenai Mayor Porter to Sign City of Kenai, City of Soldotna, and Kenai Peninsula Borough Joint Resolution No. 2007-02, Requesting the Board of Fisheries to Adopt Regulations to Reduce Hydrocarbon Discharge at the Mouth of tha Kenai River. 9. Resolution No. 200"7-76 -- Selecting Alternative Number One as the Preferred Alternative for the Expansion of the Kenai Community Library. 10. *t~ipplication for Restaurant Designation Permit -- Dan Jose's LLC, d/b/a Don Jose's Mexican Restaurant. IT`EAR F: &II~7UTE~ *Regular Meeting of November 7, 2007. I°fEM Cx: UNFIIdISHED 1$USIl3ESS 130 ITEM H: NEtkY BC7SINES~ 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2270-2007 -- Increasing Estimated Revenues and Appropriations by $71,730.85 in the General Fund for Repair of the Visitors Center Heating System. 4. *Ordinance No. 227L2007 -- Increasing Estimated Revenues and Appropriafions by $ 1,254,000 in the Wellhouse 4 Capital Project Fund for Water System Upgrades and X627,000 isi the Water and Sewer Fund to Provide Matching blinds for a State Grant. 5. *Ordixnance No. 2272-2007 -- I} Amending the Land Use Table in KMC 14.22.0 I0 by Separating "Storage" Fram the Current Use Listing of "Manufacturing/FabricatingJAssembly Storage" and; 2j Adding "Storage Yard" and "Mini-Storage Facility" to the Listed Uses in the Land Use Table and; 3) Amending KMC i 4.20.320 by Providing Definitions of "Wholesale Business," "Mini-Storage Facility," "Storage Yard," and "Warehouse." 6. Approval -- Assignment of Share Fishery Leases a. Tract 1, Shore Fishery Plat No. 71 (From Keith Johnson to Markham-Scow, LLC). b. Tract 2, Shore Fishery Plat No. 71 {From Reta Johnson to Markham-Scow, LLCj. 7. Discussion -- Donation/Christmas Comes to Kenai Fireworks Display. 8. Discussion -- Schedule Work Session/Goal Setting Discussion -- Banners ITEM I: Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Joint Kenai River Working Group d. Mini-Grant Steering Committee ITEM 3: REPORT OF THE MASTOR 131 ITEM K: ADMINISTRATION REPORTS City Manager Attorney City Clerk ITEM L: DISCUSSION 1. Citizens {five minutes) 2. Council ITEM M: PENDING LEGISLATION (This item fists legislation which will be addressed at a Later date as noted.) Ordinance No. 2202-2006 -- Amending KMC 11.05.090 to Limit the Use of the City of Kenai Boat Launch, Located at the Municipal Harbor, to Vessels and Boats Powered by Four-Cycle or Direct Injection. Two-Cycle Engines. (1/17/07, Tabled, no time certain.) Ordinance No. 2240-2007 -- Amending KMC 21.10.070 to Give the Airport Commission Mora Authority Over Leasing Decisions Within the Airport Reserve. (7/ I S/ 07, Tabled, no time certain. j EXECUTIVE SESSION -- Hollenberg Lirigation ITEM M: ADJOURNMENT 132 KENAI CITY COUNCIL -REGULAR MEETING NOVEMBER 2I, 200? 7:0fl P'.M. KENAI CITY COUNCIL CIiAMBERS http: ! Iwww.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MYNUTES ITEM A: CALL TO ORDER Mayor Portex called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-l. PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL The City Clerk took roll. Present were: Absent: Brittany Harding, Student Representative A-3. AGENDA APPROVAL Mayor Porter requested the following changes to the agenda: ADD TO: Resolution No. 2007-62 (begins at page 11) -- ~3Jalker Lane proposed buffer strip • Borough documents on Plat ho. 78-106 • Pictures. SUBSTITUTE: Resolution No. 200?-?0 (begins at page 72j -- Bike Path/Kalifornsky Beach Road MOVE: Item Ii-?, Dascussion -- Danation/Clxristnaas Comes to Kenai Fireworks Display to be heard immediately following Assembly reports. REMOVE: Item H-9, Discassicn/Banners MOTION: 133 A quorum was present. KENAI CITY COUNCIL MEETING NOVEMBER 2I, 200'7 PAGE 2 Council Member Molloy MOVED for approval of the agenda with the requested changes and Council Member Smalley SECONDED the motion. Council Member Molloy requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: Council Member Eldridge MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. There were no objections. SO ORDERED, ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) B-2. 3essiea Martin -- Invasive Plants of Alaska Jessica Martin, Christa Martin, and Rebecca Litteer discussed invasive plants in Alaska, including annual casts, how they were introduced, their effect on the environment and what citizens could do to help in eliminating them. ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) None. ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS None. ITEM E: PUBLIC HEARLNGS (Testim.ony limited to 3 minutes per speaker.) E-2. Ordinance No. 2267-2007 -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund for a Federal Grant. MOTION: Council Member Swarner MOVED £or adoption of Ordinance No. 2267-2007 and Council Member Smalley SECONDED the motion. There were no public or council comments. VOTE: "Student Representative Harding: Absent 134 KENAI CITY COUNCIL MEETING NOVEMBER 21, 200'7 PAGE 3 Eldridge Yes Ross ~ Yes Mollo ;Yes S ' Porter Yes warner Yes `_ malley _ _ Yes ~ MOTION P1§.SSED UNANYMOUSLY. E-2. Ordinance No. 2268-8007 -- Amending KMC 3.15.040 to Provide that 1) a Hearing Shall be Held to Determine Whether a Dog Kennel License Wi11 be Granted or Renewed; and 2) Property Owners Within 300 Feet of a Parcel That is the Subject of a Dog Kennel License Application Shall be Notified of the Application and the Date, Time and Place of the Hearing; and 3) Setting Out the Appeal Process for Any Aggrieved Party. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2268-2007 and Council Member Ross SECONDED the motion. Greg Daniels, 426 Rogers Road, Kenas -- Read into the record a letter from Bill and Betty Osborn stating °We strongly support this ordinance, we believe all residents of the City of Kenai should be notified of a request for a kennel license in their neighborhoods." Daniels stated he and his wife, Jan were in support of the ordinance as a kennel could be more an invasive nuisance. Sherrie Petty, 820 Set Net, Kenai -- Petty spoke in apposition to the ordinance noting the revised ordinance would require neighbor consensus for each renewal, an annual hearing would be excessive, and annual hearing should be only if problems were to exist. Attorney Graves explained a substitute would be brought forward for council consideration and clarified when notice to neighbors would be required. Soott Romain, 425 Rogers Road, Kenai -- Spoke in support of the ordinance, noting he personally would not appreciate the noise in the neighborhood and as a realtor, he believed it would affect home-buying decisions. Nicole Popla, 810 Set Net Drive, Kenai -- Spoke in support of the ordinance, noting the amendments would allow adjacent property owners to have a voice in the issuance and renewal of kennel licenses. 135 KENAT CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 4 Gvaen Bennett, 304 Linwocsd Lane, Kenai -- Stated she believed the ordinance was confusing and needed clarification. Karen Kaaster, 745 Set Net Drive, Kenai -- Spoke in support of the ordinance as the neighborhood would be notified and believed all parties impacted should be a part of the process. Oarnet Sarks, 110 Birch Street, Kenai -- Stated opposition to the ordinance, noting she believed it would take away rights and be an im=asion o£ privacy. Lanza Pabst, 140 Ricisfield, Kenai -- Noted a typographical error in the first whereas related to the number of dogs requiring a kennel license. With no one else requesting to be heard, the pubfic hearing was closed. Tt was noted, all who testified would receive a copy of the substitute ordinance. MOT%ON: Council Member Swarner MOVED to table Ordinance No. 2268-20 until the first meeting in December. Council Member Eldridge SECONDED the motion. VOTE ON MOT%ON TO TABLE: MOTION PASSED UNANIMOUSLY. BREAK TAKEN: Z:56 P.M. BACK TO ORDER: 8:06 P.M. E-8. Ordisaanee No. 2269-20®? -- Enacting Chapter 5.40 of the Kenai Municipal Code Establishing a Licensing Procedure for Pawnbrokers and Regulating How Pawnbrokers Conduct Business. MOTION: Council Member Molloy MOVED to enact Ordinance Nc. 2269-2007 and Council Member Swarner SECONDED the motion. There were no public or council comments. 136 *Student Representative Hazding: Absent KEATAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 5 MOTION TO POSTPONE: Council Member Malloy MOVED to postpone Ordinance No. 2269-2007 to the December 5, 2007 council meeting. Council Member Eldridge SECONDED the motion. VOTE ON MOTION TO POSTPONE: MOTION PASSED IINANYMOUSLY. E-4. Resolution No. 2007-b2 -- Designating that Lot 1-A Sprucewood Glen Subdivision Number Two be Replatted and that a Portion of the Property in That Lot be Preserved as a Buffer. (Clerk`s Nota: At the 10/17/07 meeting, council postponed action on Resolution No. 2007-62 until reviewed by the Airport Commission. The Airport Commission reviewed different versions of the resolution at its November 8, 2007 meeting. The motion to enact Resolution No. 2007-62 (as originally presented} is active.] E-4a. Resolution No. 2007-62 Substitute "A" -- Designating That Lot 1-A Sprucewood Glen Subdivrision Number Two be Roplatted and That a Portion of the Property in That Lot be Designated as a Buffer. E-4b. Resolution No. 2007.62 Substitute "$" -- Designating That Lot 1-A Sprucewood Glen Subdivision Number Two be Replatted and That a Portion of the Property in That Lot be Preserved as a Buffer. MOTION: Council Merriber Molloy MOVED to adopt Resolution No. 2007-62, Substitute B and Council Member Smalley SECONDED the motion. Kellie Relso, 117 Walker Laixe, Keaai -- Reported the Airport Commission did not support either of the two resolutions presented to them; the Commission wanted to preserve the buffer and the city purchase the lot from the airport; and, stated her support of Substitute B. Kelso also submitted pictures of views from four houses along Walker Lane, along with additional petitions. 137 *Student Representative Harding: Absent KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 6 Suck Steiner, 381 Senior Court -- Stated he had not heard any support for removal of the buffer, understood there would be development in that area in the next six years, and supported Substitute B. Jason Carroll, Nikiski -- Stated he was not apposed to keeping the green strip, but felt the Airport should be compensated and that it should be a market force driving the decision. Pete Hansen, Kenai -- Reported he was a member of the Kenai Economic Development Strategy Action 't`eam, the Team reviewed both substitutes, and the Team supported Substitute A. Laurie Soakey, 115 Walker Lane, Kenai -- Stated support in keeping the buffer zone. Ed Steiner, 4292 Beaver Loog Road, Kenai -- Reported he attended the Airport Commission meeting and learned the Commission was not aware of how much airport property there was or where it was situated. Richard Kelso, 117 Walker Lane, Kenai -- Stated he understood the airport had been componsated, questioned u>ho presently owned the property, and, stated his support of Substitute B. Chuck Smalley, 109 harbor Aveaue, Kenai -- Stated he had lived at his residence since 1979, received no notice to change the declaration of the land, and supported saving the property as a buffer zone. Sheryl Main, 207 Walker Lane, Kenai -- Stated she apprecsated the City's assistance in improving the neighborhood and added, she believed part of the improvement would be to keep the buffer zone. SCOtt Mitchell, 208 Portlock, Kenai -- Stated he believed there was confusion of whether the property was a buffer zone andsf it had not changed, why were the proceedings taking place. Mike Seck, 40fs Lawton Drive, Keno's -- Noted he had spoken in support of keeping the buffer zone along Lawton Drive when the issue came up several years ago and others speaking to this issue had spoken in support of keeping that buffer zone. He spoke now to support the Walker Lane residents and supported Substitute B. Sheryl Samgles, 302 Sterling Court, Kenai -- Stated her support in keeping the buffer zone, supported Substitute B, and encouraged counciC to think about the citizens and work it out. 138 KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 7 Anthony HelBns, Y I3 Walker Lane, Kenai -- Stated his support of keeping the buffer strip as i.t was. Howard Dorsey, 2d I Portlock Street, Kenai -- Stated his support to keep the buffer zone between commercial development and residential zones. With no others from the public wishing to heard, the public bearing was closed. Council comments included: + No document had been provided showing council action changing the property from use as a buffer and would like to see the land reconstituted to buffer noise and view. • Buffer was needed, but the 3/4 Acre on the corner of Walker Lane should be further discussed due to its value as a commercial area. • Suggestion to move the Lawton Drive property line 30 feet to the north to enlarge the buffer area along Walker Lane, include a buffer between Lot A and Lot B. • Support of the suggestion to move the property line 30 feet as a compromise and believed the airport should be compensated. • Concerns related to the Airport Fund balance and the corner lot value as a commercial area (require a buffer between the commercial development and the Walker Lane buffer). • Greater good would be to provide a buffer as it was a quality of life issue. • Strong support in providing a buffer and creating a buffer beyond Lot A as Lot A could. be prime economic value for lease and perpetual revenue to the airport. VOTE ON MOTION ADOPTING SUBSTITUTE 8: MOTION FAILED. MOTION: Council Member Ross MOVED for adoption of Resolution No. 2007-62, Substitute A and Council Member Eldridge SECONDED the motion. MOTION TO AMEND: Council Member Rass MOVED to amend the plat by moving the right-of--way dedication Iine to the north 30 feet into Lot A and within the designation buffer 139 *Student Representative Harding: Absent KENAI CITY COUNCIL MEEThVG NOVEMBER 21, 2007 PAGE 8 between the roadway and the new right-of-way 1rne require a natural vegetated buffer (between Lot A and the roadways and include that requirement as a plat note. Council Member Eldridge SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Harding; Absent MOTION PASSED. MOTION TO AMEND: Council Member Ross MOVED to delete the second "whereas" (Page 30 of the packet) on the second page of Substitute A. Cauncil Member Eldridge SECONDED the motion. VOTE ON AMENDMENT: *Student Representative Harding: Absent Eldrid e Yes Ross Yes Mollo j Yes Bo le ,Yes Porter ,Yes Swarner Yes i Smalley ~ Yes ~ i MOTION I+ASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: MOTION PASSED. BREAK TAKEN: 9:22 P.M. BACK TO ORDER: 9:29 P.M. 140 *'Student Representative Harding: Absent KENAI CITY COUNCIL MEETING AiOVEMBER 21, 2007 PAGE 9 E-5. Resolution No. 2007-70 -- Requesting the State of Alaska Department of Transportation and Public Facilities (ADOTJPF) Include in the Kalifornsky Beach Road Rehabilitation, Project 58703, a Separated Pedestrian Pathway from Station +/-g27+00 (Cannery Road) to Station +/-944-00 (Bridge Access Road). (Clerk's Note: At the November 7, 2007 council meeting, Resolution No. 2007-70 was postponed to the November 21, 2407 council meeting. The motion to approve Resolutt'on No. 2007-70 is active.) E-Ba. Substitute Resolution No. 2007-70 -- In Support of Kenai Peninsula Borough Resolution 2007-076, Requesting the State of Alaska Department of Transportation and Public Facilities (ADOT/PF) Include in. Kalifornsky Beach Road Rehabilitation, Project 58703, a Separated Pedestrian Fathway From Station +/- 827+00 (Cannery Road) to Station +/-944+00 (Bridge Access Road). MOTION: Council Member Molloy MOVED to adopt Substitute Resolution No. 2007-70 and Council Member Eldridge SECONDED the motion. There were na public comments. Concern was expressed supporting this project could eliminate funding for a strong city project. City Manager Koch stated, after speaking with representatives of the Department of Transportation, he did not believe it would. VOTE: Council Member Eldridge requested UNANYMOUS CONSENT. There were no objections. SO ORDERED. E-6. Resolution No. 2007-72 -- Awarding a Sole Source Contract to Motorola, Inc., in the Amount Not to Exceed X58,640.00 to ProComm Alaska LLC to Equip the Kenai Public Safety Communications Center. MOTION: Council Member Ross MOVED far approval of Resolution No. 2007-72 and Council Member Eldridge SECONDED the motion. There were no public or council comments. VOTE: 141 KENAI CITY COUNCIL MEETINO NOVEMBER 21, 2007 PAGE 10 Council Member Ross requested UNANYMOUS CONSENT. There were no objections. SO ORDERED. E-7. Resolution Na. 2007-73 -- Awarding a Sole Source Contract to ProComm Alaska LLC, in the Amount Not to Exceed $243,000.00 to Equip the Kenai Emergency Operations Center. MOTION: Council Member Rass MOVED for approval of Resolution Na. 2007-73 and requested UNANIMOUS CONSENT. Council member Eldridge SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. E-$. Resolution Na. 2007-74 -- Authorizing City of Kenai Mayor Porter to Sign City of Kenai, City of Soldotna, and Kenai Peninsula Borough Joint Resolution No. 2007-02, Requesting the Board of Fisheries to Adopt Regulations to Reduce Hydrocarbon Discharge at the Mouth of the Kenai River. MOTION: Council Member Smalley MOVED for approval of Resolution No. 2007-74 and Council Member Ross SECONDED the motion. There were no public or cauncil comments. VOTE: MOTION' PASSED UNANIMOUSLY. E-9. Resolution No. X007-76 -- Selecting Alternative Number One as the Preferred Alternative for the Expansion of the Kenai Community Library 142 *Student Representative Harding: Absent KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 11 MOTION: Council Member Eldridge MOVED for approval of Resalution No. 2007-75 and requested UNANIMOUS CONSENT. Council Member Swarner SECONDED the motion. There were no public comments. It was suggested council consider taking money from the General Fund for the project in the next budget cycle. VOTE: There were no objections. SO ORDERED. E-I0. Appueation for Restaurant Designation Permit -- Don Jose's LLC, d/b/a Don Jose's Mexican Restaurant. Approved by consent agenda. ITEM F: MINUTES F-l. Regular Meeting of November 7, 2007 -- Approved by consent agenda. ITEM Cr: UNFINISHED SUS%NESS -- None. ITEM H: NEW BUSINESS H-l. Bills to be Ratified MOTION: Council Member Swarner MOi~ED to ratify the bills and requested UNANIMOUS CONSENT. Council Member Smalley SECONDED the motion. There were no objections. SO ORDERED. H-2. Approval of Purchase Orders Exceeding $16,000 -- None. H-3. Ordinance No. 2270-2007 -- Increasing Estimated Revenues and Appropriations by $71,730.85 in the General Fund for Repair of the Visitors Center Heating System. introduced by approval of consent agenda. H-4. Ordinance No. 2274-2007 -- Increasing Estimated Revenues and Appropriatians by $1,254,000 in the Wellhouse 4 Capital Project Fund 143 KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 12 for Water System Upgrades and $627,000 in the Water and Sewer Fund to Provide Matching Funds for a State Grant. Introduced by approval of consent agenda. H-5. Ordinance Na. 22?2-20(5? -- 1} Amending the Laxid Use Table in KMC 14.22.010 by Separating "Storage' From the Current Use Listing of "Manufacturing/Fabricating/Assembly Storage" and; 2) Adding "Storage Yard" and "Mini-Storage Facility" to the Listed Uses in the Land Use Table and; 3) Amending KMC 14.20.320 by Providing Definitions of "Wholesale Business," "Mini-Storage Facility," "Storage Yard," and "Warehouse." Introduced by approval of consent agenda. H-6. .eiggrovaY -- Assignment of Shore Fishery Leases H-6a. Tract 1, Shore Fishery Plat No. 71 (From Keith Johnson to Markham- Scow, LLC). H-6b. Tract 2, Shore Fishery Plat No. 7I (From Reta Johnson to Markham- Scow, LLC). MOTION: Council Member Swarner MOVED to approve the Assignment of Shore Fishery Leases, Tract 1, Shore Fishery Plat No. 71 (From Keith Johnson to Markham-Scaw, LLC) and Tract 2, Shore Fishery Plat No. 71 (from Reta Johnson to Markham-Scaw, LLC). Council Member SECONDED the motion. There were no objections. SO ORDERED. H-?. Discussion -- Donafion/Christmas Comes to Kenai Fireworks Display. (Heard irnmediateiy fallowing Reports of the Assembly.) A question of whether council members, as members of the Chamber of Commerce, though not board members or employees receiving financial compensation, would have conflicts in voting on the issue. City Attorney Graves determined, since alI council members stated their memberships, and were not board members or employees of the Chamber, there would not be a conflict. Information included in the packet identifying a funding source was referenced and discussed. Notation was made the item was not funded when setting the FY08 budget, however financial changes had taken place since the budget was set. Ft was also noted, Chamber members had not been asked for additional funds to finance the fireworks. 144 KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 13 MOTION: Council Member Eldridge MOY7ED to share the cost of fireworks with the Kenai Chamber of Commerce in the amount of approximately $3,200 for this year. Council Member Ross SECONDED the oration. VOTE: MOTION PASSED. H-8. Discussion -- Schedule Work Session/Goal Setting A brief discussion took place related to the scope of agoal-setting session. The process was explained as the council sitting informally and discussing the future direction of the city. Administration was requested to provide a written surnmatian of what the process would be far the work session. H-9. Discussion -- Banners -- Removed from the agenda ITEM I: COMMISSION/COMMITTEE REPORTS I-I. Council on Aging -- Council Member Eldridge reviewed the November 8, 2007 meeting summary included in the packet and noted he would be absent from the December meeting. I-2. Airport Commission -- Council Member Molloy reviewed the November 8, 2007 meeting summary included in the packet and reported he would net be able to attend the December 13 meeting and that Council Member Boyle would attend in his absence. I-3. Harbor Commission -- Council Member Boyle reviewed the November S meeting summary included in ttze packet and noted the Commission expressed strong support in placement of a drift boat haul-out on the river. I-4. Library Commission -- Cauncil Member Smalley reviewed the November 6 meeting summary included in the packet. 145 *Student Representative Harding: Absent KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 14 I-5. Parks & Recreation Commsssion -- Council Member Eldridge reviewed the November 1 meeting summary included in the packet and noted, the Harbor and Parks ~ Recreation Commissions met in a joint work session on November 5 to review the dip net fishery report. I-6. Planning & e.oning Commission -- Council Member Rass reviewed the November 14, 2007 meeting minutes included in the packet and noted the Commission met in a work session immediately following the meeting to discuss further amendments to the zoning code related to the difference between canex containers and sheds and how they should be treated. Y-7. Miscellaneous Commissions and Committees I-7a. Beautification Committee -- No meeting. Y-?la. Alaska Municipal League Report -- Council Member Swarner reported she attended the AML Conference in Fairbanks where she was again appointed to the Legislative Committee, Council Member Smalley was elected to the AML Board of Directors, and Assembly Member Pete Sprague was appointed as AML's representative to the National Association of Counties from the Kenai Peninsula. I-7c. Joint Kenai River Working Group -- No report. I-?d. Mini-Grant Steering Committee -- No meeting. YTEM J: REPORT OF THE MAYOR -- Mayor Porter noted the following items: • She attended a Love, inc. anniversary celebration reception. • She assisted in the planning and occurrence of the welcome home of local troops as well as the Veterans' Day celebration. • She attended the Boys & Girls Club auction. • She attended the Veterans' Day celebration at the Sports Center on November 11. • She attended the Resource Development Council Conference in Anchorage with topics including oil, gas and mining issues. • She attended the Alternative School`s Thanksgiving event. Porter asked if council wished to move forward with developing abear-safe garbage container ordinance far consideration in January. Council stated no objections. YTEM K: AI)MBNISTRATYCN REPORTS K-l. City Manager -- City Manager Koch noted the following items: 146 KENAI CITY COUNCIL MEETIi~TG NOVEMBER 21, 2007 PAGE 15 • He met with DOT representatives and thought the meeting very productive. • The Friends of the Library pledged X170,000 toward the library expansion project and would be hiring someone to assist in grant-writing efforts. • He would be sending a letter of interest to the Rasmuson Foundation for a Tier II grant and accompanying the City's grant application. • Reported on water well efforts. • Dena'ina Pointe Estates had been resurveyed and he would be forwarding information to property owners for their input. • Funds were included in a congressional bill for funding toward the bluff erosion project. • Has held discussions with Fish & Game representatives related to drift boat haul-out funding to be re-appropriated to the city during the next legislative session. K-2. Attorney -- Attorney Graves reported he would be on jury duty during the next week, but would be checking messages, etc. K-3. City Clerk -- Clerk Freas noted she had received requests from the Council on Aging to cancel its December meeting and the Library Commission to move its January 1 meeting to January 8. With no objections from Council, Clerk Freas would carry out the requests. ITEM L: L-1. Citizens (five minutes) -- None. L-2. Council Swarner -- • Reported she also attended the Resource Development Council conference and while in Anchorage, visited the Rasmuson Foundation office and discussed library funding sources and process. • Wished all a Happy Thanksgiving and Council Member Smalley a happy birthday. Smalley -- Reported he attended the AML/Newly Elected Officers Conference and noted, he believed attendance was very worthwhile and reported on conference sessions presented. Eldridge -- Reported he would participate telephonically for the December 5, 2007 council meeting. Ross -- No comments. 14'7 KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 16 MoYYoy -- No comments. Boyce -- Recognized former Council Member Moore for his work on the Kenai River Working Group and development of the joint resolutions. ITEM M: PENDYNG LEGISLATYON (This item lists legislation which will be addressed at a later date as noted.) Ordinance No. 2202-2006 -- Amending KMC 11.05.090 to Limit the Use of the City of Kenai Boat Launch, Located at the Municspal Harbor, to Vessels and Boats Powered by Four-Cycle or Direct Tnjeciion Two-Cycle Engines. (1/17/07, Tabled, no time certain.) Ordinance No. 2240.2007 -- Amending KMC 21.10.0'70 to Give the Airport Commission More Authority Over Leasing Decisions Within tine Airport Reserve. (7/ 18/ 07, Tabled, no time certain. j EXECUTIVE SESSION -- Hollenberg Litigation MOTION: Council Member Swarner MOVED to convene in an executive session of the Council of the City of Kenai, concerning the Hollenberg litigation and recognizing attorney/client confidential community privilege, requesting City Attorney Graves and City Manager Koch to attend. Council Member Ross SECONDED the motion. VOTE: MOTION PASSED UNANYMOUSLY. SESSION coNVENEn: Yo:a6 P.M. BACK TO ORDER: 10:37 P.M. Council Member Swarner reported, during the executive session, council directed tine attorney on matters pertaining to the Hollenberg litigation. YTEM M: ADJOURNMENT 148 KENAI CITY COUNCIL MEETING NOVEMBER 21, 2007 PAGE 17 There being no further business before the Council, the meeting adjourned at approximately 10:3& p.m. Minutes submitted by: Carol L. F`reas, City Clerk "The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory cotes shall be cast prior to the official council note and shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes. Student representatives may not moue or second items during a council meeting. 149 KENAI CITY COUNCIL WORK SESSION OCTOBER 3, 200? KEN~I CITY COUNCIL CIiAIVlTiERS 5:45 P.IVi. 1bIAYOR PRT PORTER, PRESILI%NCa NOTES Council Members Present: P. Porter, J. Moore, B, Eldridge, R. Ross, R. Molloy and M. Boyle Council Members Absent: L. Swarner Staff Present: C. Freas, L. Sernmens, C. Graves, K. Wanamaker, R. Koch and M. Joiner ethers Present: Larry Lewis, Jeff Selinger; Ted Spraker (retired), Fish & Game; Jack Carver, Alaska Waste; Dave Danatd, Safari Club; and Steve Stringum, Bear Biologist A broad discussion took place related to large, widespread bear issues throughout the city, including: • Identification of the problem, i.e. growing bear population within the city limits, mostly brown bear sow and cub problems through learned behavior, etc. • How to encourage Kenai residents to change their habits of handlang garbage. • Suggested language to amend the city's current, and perhaps inadequate ordinance, to require use of bear-tight containers cc*hich would assist in reducing food availability and encourage bears to move on to natural choices of food. • Consider a grant program to residents for acquiring the bear-resistant containers. • Sows and cubs are not legal for harvest; moved bears either come back or cause trouble in another community; moving bears from the area had not been successful over the years. • Need people to take positive reasonable measures -- lots of things can be done to adjust beaa° behavior. • Encourage removing the food attraction, along with removal of the beazs. Work session ended at approximately 6:40 p.m. Notes prepared a~n°l subLm""itt,,e,,d by//: Carol L. Freas, City Clerk 1rJ ~ KENA% czTY c~uNC%%, waRK ~ESSaoN N®VEMBER 21, 2007 s:o~ P.M. KENA% C%TY CG%3NCIL CHAMFERS MAYQR PAT PORTER, PRESTO%NG NCSTES Council Members Present: H. Smalley, P. Porter, B. Eldridge, R. Molloy, L. Swarner, R. Ross Council Member Absent: M. Boyle Staff Present: C. Frees, C. Graves, R. Koch, K. Wanamaker, R. Craig, B. Frates, J. La Shot, L. Semmens, B. Springer, M. Joiner Others present: Assembly Members M. Gilman and G. Knopp City Manager Koch reviewed information included in the packet, noting the council had adopted federal and state municipal funding priorities and the majority of the list included in the packet would be included in next year's budget. Dsscussion followed, including: • Recommendation Council initiate the Formation of an assessment district for Thompson Park, adding he wanted to provide information to property owners, hold a public meeting, provide assessment estimates, etc. • Recommendation Council move forward with the formation of the Thompson Park assessment district -- Council stated no objections. • Recommendation Council move forward with the Boat Launch Road culvert replacement, adding administration was exploring other sources of funding and would report back with a budget and funding source -- Council stated no objections. • Old Town sidewalks were not included in the prepared list; as-bunts indicating rights-of-way in Old Town were completed; difficult to decide where sidewalks could be placed; funding had been identified; and, administration would report back to Council in the near future. • Before going forward with new sidewalks, current sidewalks should be repaired. • Placement of a sprinkler system in Memorial Park had been found to be problematic due to permitting problems through DOT and FHWA. The city had filed an appeal to the permit denials. • Police vehicles and window regiacements -- these projects would be included in the annual operating budget and should be removed from the list. No objections were stated by Council. • Mulfi-Purpose Facility vent -- May come back in the next budget cycle. • Item No. i4 -- Refurbishment of streets (First Street from Florida to California Avenues) -- no special assessment district formation was planned as more need was in Thompson Park. Unless funds are remaining from Thompson Park, consider next year. 151 KENAI CITY COUNCIL WORK SESSION NOVEMBER 2I, 2007 Page 2 of 2 • Item No. 10 -- Soccer Maintenance building -- Storage will need to be available for mowers, eta A maintenance buiiaing, restrooms and water would need to be addressed in the annual budget. • Inlet Fisheries request for paving of Bowpicker Lane to Inlet Fisheries property: Indication of Bob Utrup, Plant Manager, was the owner would consider paying one-half the cost of paving. Paving needed due to lots of summer traffic both from Inlet Fisheries and Kenai Landing visitors. It was requested this paving project be considered in the LID paving projects. Because there would nat be funds available for the upfront work, the project was put on hold, • Visitors Center Heating -- The city is eligible for a settlement payment of approximately $400,000 which would not be enough to completely repair the problem. Work continues on the issue. It was noted, the project list would be reviewed again during the budget process. A brief discussion followed related to the bluff erosion project during which Koch gave an update on funding issues. Wark session ended at approximately 5:55 p.m. Notes prepared and submitted by: Carol L. Freas, ity Clerk 152 d a° a v' Y F ~ ~- Y O ~ m Q M tM0 ^~ O Q C1 4~1 O t~ a M O O O ~ ~ W fV e- = Q _ H U Q J ~ W q LL 1 ~ ~ ~ ~ r Q p ' ~ O ~ ~ 0. a H o Q U. h ~ _ ~.$ ~ h U N U! w ~; o '~ ~ o U U ~ ~ ~ w a to a U g ~ v u c~ ~ ~ ~ ~ El.i w N a ~ ~ °a 0 o .. Q ~ ~ p !A (ry ~ h U ~ ~ O w m ~ ~ ~ ut a» i S ~ ~ CG p ~ ~ ~ ~ Z Z 1 5 3 2 ~ o° ~ ¢ n; O v a °' ~ O o t- t- o ~ a ~ o O ~ F ~ Z ~ N 'K K CS ff! ~_ Y "mss Z O Y J ~ , ~ ~ y a . o ~ D a w d Q J U ~ H 4 ® ~~ tt! p ~ a 2 o g t3 0 N Q O d S ' ~ ~ ~ ~ S w ° ~ ~ ~ o, ~ a ~ ~ ~ ~ a' ~ ~ a w ~ ~ O ~' ai; ~ ~ z t!J ~ N ~ ~ W LL( ~ d d ~ p~ N D G ~ U > a qq ~ G7 154 Suggested by: Administration CITY` CiF' KENAI E3RI)INAPTCE NO. 2273-2007 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $50,000 IN THE SENIOR CITIZEN FUND FOR A STATE OF ALASKA GRANT FOR BUILDING/EQUIPMENT. WHEREAS, the City of Kenai received a $50,660 grant from the State of Alaska to purchase equipment for the Senior Center; and, WHEREAS, and, Kenai Senior CenteY's transportation program is a vital piece to meeting our senior needs within the community. There is a need to purchase two vehicles. The current Senior Center fleet has two vehicles that need to be retired due to high mileage and expense of repair; and, WHEREAS, it is in the best interest of the City of Kenai to accept the grant and use it for the stated purpose. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Senior Citizen Fund Increase Estimated Revenues; State Grant $50,000 Increase Appropriations; Machinery and Equipment $SO 000 FASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of December, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Frees, City Clerk Approved by Finance:__ (LI/30/2007) hl Introduced: December S, 2007 Adopted: December 19, 2007 Effective: December 19, 2007 155 ~~\ - --" /. theutyof ~~ KENA~ SICA TO: Mayor/Council `J "l/iffa~e uJitti a Past, Gc y rvc'tti r~, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 /Fax: (907) 283-3014 www.ci.kenai.ak.us MEMORANDUM FROM, Carol L. Freas, City erk DATE: December 4, 2007 RE: SCHEDULING OF WORK SESSYON --Bluff Erosion Project City Manager Koch has requested a work session be held to hear a status report of and discuss the bluff erosion project with representatives of the Corps of Engineers. The work session would be held on Thursday, December 13, 2007, beginning at 6:30 p.m. in the Kenai City Council Chambers. Does council agree to schedule a work session for Thursday, December 13, 2007 at 6:30 p.m. for the purpose of hearing a status report of and discussing the bluff erosion project urith representatives of the Corps of Engineers? ~11 1 ®F ~L:Ttii "Village wish apart -City teeth a future. " ,..'/ _ BAGICGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT COMMITTEES AND COMMYSSIONS NAME: //!/~~~/z',~.s9 `~ .s'~`/E' is J ~ ,L'~ ' Resident of the City of Ken.ai7 .h..i~'}/'d 1)~ ~~t'_ii~C~EL How long? ,~G"e .~~ ~~,~% r Residence Address=,~- 1~,~ ~y~~ s~'Yjf.+•sy .. j~ ~.,wT~t~r-y.,;x~„d a~ y 5'~t's',! f e3 Mailing Address ~, 7G> ~7~z,~ r 5 .9'f+~ y//" Home Telephone Na..ns/~' ~'i~r°r~ Home Sax No. Business Telephone No Business Fee No. ~/ Emai3 Address: EMPLOYER: _ fN~i`~' ~*p / Job Titie NAME OF SPOUSE: ,~~,R?~Y'S (' ;/~!r- ~~C, j organizations: Past organizational memberships: COMMITTEES OR COMMISSIONS IN WHICH YOU ARE INTERESTED: LArzr, e sl Fa'1 WHY DO YOU WANT TO BE IIQVOLVED WITH THIS COMMISSION OR WHAT BACKGROUND, EXPERIENCE, OR CREDENTIALS DO YOU POSSESS TO BRflYG TO THE BOARD, COMMISSIONER C~OyMMYTTEE MEMBERSHIP? j ~X"f!//dn.4 /J1s'T~sMi -.,I~i~3'°~ i~Y? f~',7 L! lf9 156 O M C! LLB m LLI !SI d W Q {~ W I81 J CJ O U z 0 F d N W G O W } 0 N N J O O N J J ,.f W 4. a a tK U Sf) W 0. 2 W Z CS C7 K W ~. 157 IfEI~TAI ~E~TR1~I, IiiGH SCI®Cl1L Kenai Fenisnia $ortlugh 6chaai District 9583 Kenai. Spur Highway -Kenai, Alaska 94621 (407) 283-7524 Fax: (907) 283-323'0 Alan Fields ' Principal 11-27-2007 Loren Reese Assistant Principal. Tim Delaney APhletic Director Jim Beeson Activity Director Dear Mayor Porter; During this past summer, extensive work was done to clear the under brush and dead trees in the area sul-rounding the Challenger Center and south of the hockey facility. 1"he work was very pleasing to the eyes as Mr. Fields and I have heard several. positive comments from members of the community. It also was. a plus for the security of the area surrounding Kenai Central High School. Visibility is real issue for the safety of our students and staff members. i am writing this letter to ask if the area north. of the Challenger Center and hockev ,#gry ~ `~~ & k ~~ 6..~i ~~ ~ # i5 F 1.. ~ 1@1 4`~pF S; ~ Y DEPARTIYIENT OF NATURAL RESOURCES Division of Mining, Land & Water ~ Land Sales and Contract Administration Section f November 26, 2007 Kim Howard Assistant to the City Manager 210 Fidalgo Avenue RE: ADL 220056 To: Kim Howard SARAH PAULA, GOVERNOR 550 West 7'" Avenue, Suite 640 Anchorage, Alaska 99501-3576 PHONE: (907)269-8591 FAX: (967) 269-8916 a ~~~ K€:tJA! Good newsl The preliminary decision for the City of Kenai's public & charitable use land purchase has been signed. The next step is public notice of the proposed decision. This takes 30 days. After this, the final'decision is written, then approved and signed. I have enclosed a copy of the preliminary decision and public notice for your reference. If you have any questions, please contact me at 907-269-8591 or rockford.webert7a alaska.eoV. Additionally, I'd Like to make you aware that I will be vacating this position, effective December 14, 2007. My supervisor, Kathryn Young, will be handling your case effective upon my departure. Kathryn's contact information is listed below: Kathryn Young Natural Resource Specialist III 907-269-&672 kathr~voung~a alaska.gov It has been my pleasure to assist the City of Kenai with the acquisition of this land for public purposes. Thank you. Sincerely, ~~ ~ ~, Rockford Weber Natural Resource Specialist Enclosed: Preliminary Decision for ADL 220056 Public Notice for ADL 220056 "Develop, Conserve, and Enhance Natural1R~rcrces for Present and Future Alaskans. " ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF MINING, LAND & WATER PUBLIC NOTICE PURSUANT TO AS 38.45.945 PROPOSED NONCOMPETITIVE LAND SALE for Public and Charitable Use ADL 234458 - AS 38.05.814fa1f11 PROPOSED MINERAL CLOSING ORDER-AS 38.45.185 PROPOSED LAND CLASSIFICAT[ONORDER - AS 38.45.344 Subject to AS 38.05, the Alaska Department of Natural Resources, Division of Mining, Land and Water proposes to offer for sale State land - ADL 230056, to the current applicant through a noncompetitive sale for public and chartable use as a greenbelt. The Department also proposes for the subject parcel to be close to mineral entry and to be reclassified from Resource Management to Settlement The parcel consists of approximately fve acres. The parae(is located inside the Ci#y of Kenai and abuts tha Kenai Spur Highway and Spruce Avenue. The parcel lies within the SM, TEN, R11 W, Section 31 and is further described as Government lots 131, 165, and 166, excluding the Kenai Spur Highway Right-of-Way The parcel will be offered for sale to the current applicant to be used as a greenbelt and therefore the price is set below fair market value. Pursuant to AS 38.05.945, public nofce of this action is being conducted. The public is invited to comment on the proposed sale. Copies of the preliminary decision are available at the Division of Mining, Land, and Water, Land Sales and Contract Administration Unit, 550 West 7th Avenue, Suite 640, Anchorage, AK 99501-3576. Copies are also available at the department's Public Information Offices in Juneau, Fairbanks, and Anchorage or at wv,NV.dnrstate.ak.us/mlw/landsale. Comments must be received In writing by the Division of Mining, Land, and Water, Land Sales and Contract Administration Unrt, Attention: Kathryn Young, 550 West 7+h Avenue, Suite 64Q Anchorage, AK 99501 on or before 5 pm Friday, January 4, 2008 in order to ensure consideration. Comments may also be sent via e-mail to kathryn.young@alaska.gov or by fax at (907} 269-8916. The proposed sale is on the A List for Categorically Consistent Approval under the Alaska Coastal Management Program (RCMP} and the Kenai Peninsula Borough Coastal Management District. Therefore, a consistency determination is not required. There are no proposed land use changes for these parcels. All written responses will be considered. Only persons who comment during the comment period will be eligible to file an administrative appeal of the final Ending and decision. If public comment in response to this notice indicates the need for significant changes in the above decision, additional publ'~a notice for the affected decision will be given on ar about the beginning of February, 2008. The State reserves the right to withdraw a parcel from consideration at any time. Withdrawing a parcel will noY be considered a significant change requiring public notice. If no significant change is required, the preliminary Finding and Decision, including any minor changes and a summary of comments and responses, will be issued as the Final Finding and Decision of the Department of Natural Resources, v~ithout further notice. The final decision will sat out the applicable process for appealing the decision under AS 38.05.035 (i}-(m). A copy of the final decision will also be available at the address above and will be sent to any person who comments on the preliminary decision. If you have any questions concerning this proposed action, please contact Kathryn Young at (907) 269-8672. Individuals with audio impairments may call the department's Public Information Center in Anchorage between the hours of 10.00 a.m. and 5:00 p.m., Monday through Friday, at TDD# {907) 269-8411. The Division reserves fhe right to waive technical defects in this publication. 160 KPB Desinaged Conservation/Open Space 0 500 1,000 2,000 Feet 161 J Proj ect Stat L • Jack La Shbi us Report NC=Non-Construction F=Future RS -Robert Springer MK -Marilyn Kebschull STIP=State Trans. Imp Jei -Jan Taylor n~uc~i City Cuutact PruJeut Name Status stm A JL Airpon Runway Safety Winter shutdown. Generators being installed. Zone/Extension A MK Airport Supplemental Planning Proceeding with implementation. Phase 2 Final Assessment Reports printed. Issued Amendment 3 for dreffing airline negotiating agreement. Draft received and being reviewed. A JL Contaminated Soils -Shop No funds for further work. A RK Kenai River Bluff Erosion The Corps has received funds to help with the Control Project design and answer any questions from the study and agencies inckuding obtaining the Corps Permit. City working with Gorps consultant. Tetra Tech main consultant. R&M drilled monitoring wells. A JL Kenai Soccer Fields Closing out project. A RK LID's -Shamrock Gircle Will be scheduled for paving during next year's projects. A RK LID's & Miscalfaneous Paving - Closing out project. 2007 A RK Marathon Raad Improvements Engineering underway. A JL Public Safety Garage Preliminary plans developed. A RK Water System Drill and evaluate two wells in the Eagle Rock area. A JL Wildwood Drive Improvements Engineering underway. Monday, November 26, 2007 Page t ot2 - 162 n~rtCiFi Clt~ Contact Pro~oot Name &tatos SFIP A RK Wiidwood Watar Main Closing out project. STIP DOT -Bridge Access Pathway Pathway along Bridge Access Road from K•Beach to Spur 3.3 mites.., Project in environmental assessment. Design scheduled FFY08. Construction after FFY09. City Manager talking to ADOT, Monday, November 26, 2007 Page2of2 163 Minutes of the Kenai Convention and Visitors Bureau Regular Meeting Wednesday, September 26, 2007 KVCC Board Room Vice President Fred Braun, Presiding Call to order and roll call The meeting was called to order at 5:35 pm. The following members were: Present: Fred 'Braun (vice president), Barry EIdridge, Sharon Brower, Bob Fulton, Ray Ortiz, Jacquie Steckel, Hal Smalley (arrived 6:33 pm), Robin West, Julie Wheeler Absent: Sasha Lindgren (excused}, Marion Nelson (excused), Ron Malston (excused), Ray Ortiz, Guest present: Mya Renken (Executive Director) APPROVAL OF AGENDA Mvtivn to approve agenda with addltivn made by Robin, Sharon 2nd APPROVAL OF MLNUTES AUGUST 27, 2007 Mvtaon to amend the,4ugust 27, 2007 minutes by.7acquPe, .Palle 2nd FINANCIAL REPORT The donation box was broken into twice within a couple of weeks. Some kind. of surveillance equipment is needed to protect City's assets. Discussion about Old Town Bingo and spending more money this year to promote Kenai at trade shows. UNFINISHED BUSINESS Executive Director's Evaluation Mya requested. etarification. The Board will reply once clarification is received in writing. Consotidation Discussion Discussion about the merge of the Chamber and the KCVB. That topic may be put on the back burner due to the resignation of the current Director and The hire of a replacement. Ta]k was of a possible alliance versus a merge. Jim Butler was there as a legal representative for gaidance if something in the future indicated either organization would want to come together, So 'Far, there has only been an agreement to meet and discuss those possibilities again. City of Kenai DVD Sasha asked. for a review of the City of Kenai DVD that was produoed by Paul Gray. Mya thought more of the hoard should be present for them to review it. Discussion about ability to use the producfion for destination marketing and screening in the Kenai Visitors and Cultural Center because of specific businesses being a focal point and the concern. other KCVB members might have. NEW BUSINESS Date for annual meeting of the Board of Directors The date for the anneal meeting of the Board of Directors is October 27, 2007. Accepting Nominations from the Floor for Upcoming Elections: Six coats need to be filled. Discussion on haw to contact members about running for the seat. Fred Braun and Robin iArest will inn for re-election. Robert Pnlton wilj not be running for re-election. 164 Move Arts Committee to Patrons of KVCC There was no objection to move the arts committee to Patrons of KVCC. Staff and Board Member Recognition Robin presented a policy regarding staff and board member recognition. Motion: Approve the Staff and Board Member Recognition policy as amended. Action: Robin moved and Sharon seconded the motion; passed unanimously. Identifying Kenai's Strengths, Weaknesses, Opportnnities and Threats The Board went through a SWOT analysis activity to be used insdentifying destination marketing niches on which KCVB can focus. Draft budget The budget committee will meet on October t 6, 2007. Motion: To approve the draft budget. Action: l-1al moved, 2na by Sharon REPORTS Arts Committee Met about what pieces were going to be acquired from the summer art show, as well as additional money from the Rasmuson Foundation. The next Art Committee meeting wilt be at Celia Anderson's studio in 2 weeks. Bylaws Committees Report needs to be defereed to a Later date. The Bylaw Committee will review at the beginning of October 29, 2{?07 at the Board Meeting, under unfinished business. Executive Director Reported that they received a grant for a national program. We will be participating in an evaluation/survey. The Patrons will help come up with 3 questions to be asked of visitors from December through July. The Rasmuson Foundation providing the funding for said project. NEXT BOARD MEETING OCTOBER 29, 2007 BOARD COMMENTS Jacquie: SWOT was effective Barry: get out and vote and no comment Robert: no comment Julie: good meeting Robi: KNWR fun day Sharon: Seward Cruise visit Hal: Add him to last month's minutes; the part of approving minutes with any negative finds"ngs Fred: Thank Bob for years of service, get off duff, thank you Robin ADJOURNMENT at 7:35 p.m. 165 Minutes of the Kenai Convention and Visitors Bureau Regular Meeting Monday October 29, 2007 KCVB Board Room President Sasha Lindgren, Presiding CALL TO ORDER AND ROLL CALL The meeting called to order at 5:36 pm. The following members were: Present: Ron Malston (secretary/treasurer), Sharon Brower, Marion Nelson, Ray Ortiz (left at 6.•27 pm) Jacquie Steckel, Robin West, Julie Wheeler (arrived at 5:55 pm) Excused: Sasha Lindgren (President), Fred Braun (vice president), Mike Boyle, Robert Fulton Guests Present: Mya Renken (Executive Director) APPROVAL OF AGENDA Brower made the motion to approve the agenda, 2"`~ by Ortzz, unanimous APPROVAL OF MINUTES Motion made by Steckel to move approval of minutes for September 26, 2009, 2"~ by YlJest, unanimous PERSONS SCHEDULED TO BE HEARD NONE FINANCIAL REPORT' Board reviewed financial dashboard. UNFNISHED BUSNESS 1. Bylaw review -will be discussed at the end of the meeting and action will be taken at the beginning of November 26, 2007 meeting. 2. Consolidation discussion -The Chamber board wanted to know what happens here at the Center. Abetter working relationship with the Chamber is being sought. The KCVB acid the Chamber serve different roles in the community, it was thought that maybe something needs to be drawn up showing what each organization brings to the table. Steve from Tesoro mentioned that only once a year he was asked for money. 3. Accepting nominations from the floor for upcoming elections. The election will be in December. 4. Reviewing identified Strengths, Weaknesses, Opportunities and Thzeats NEW BUSINESS 1. Membership dues and benefits aimual review- The definition of secondary membership is needed. Marion moved that there should be one prdrnary membership and then no limit nn how many secondary memberships are under that. This method will be triedfor a year, then reviewed. Reciprocal memberships- fhe advantages are gerting information from them and borrowing ideas {from other visitor centers) 2. Destination marketing promotional piece on Kenai- nothing to report yet. 3. KEDS Plan Tourism Initiative goals and objectives- Rick Baldwin has to give a report to city council. He asked each of the participating committees to give him a 166 report a few months ago. The currant list is oid, and needs work. Marion brought up bringing in conferences, Mya pointed out that it would have to be small groups. The space that we have isn't quite tailored to bxing in conferences to the area, and other issues include: rental cars and hotel space. There are a number of organizations that have yearly meetings, even if it's }ust smaller groups. REPORTS 1. Arts Committee- meeting of Celia's studio 2. Board President: Alaska Media Roadshow- Mya shared Sasha's comments about Mya's professionalism, knowledge of the community and that it is obvious she is held in hsgh regard by her peers. 3. Executive Darector EXBCUT'IVE SESSION far purpose of reviewing Exeautive Director's evalua#ion did not occur because of excused Board absences. NEXT BOARD ML~BTING The next meeting is scheduled for November 26, 2007 BOARD COMMENTS Sharon: Membership through here or Clarion? Ron: 5:30 for by-laws? Jacquie: Thank you very much. ADJOURNMENT was at 7:40 pm Prepared by Carmen Hatfield 167 y~y~y e~pV~8y1~.bYg~p'gy '®gp~yr~ µyry'y~y~y~gdry~bry~gp^ 1NP18 w~~° PaFYW lry1L~F M1P /p~gyp WA4'11M18Yd.6811"J WY lYSbts6 Toy: 234! FF!) ~s ~~ 94633 DA2°E: ~ ~ z~'1 C~~ xA~ e~~ ~~es~~ t~s~teac o€tFxe pity o~rs~nau~ ~f e s ~ ~? u, ~s. ~s~aeace~aareg~ ~ S-e~ tUe~F ~~r Ntaitiag A~ %~VtG ____m_,_ _~lome fietephone RTO. ~~~ S' S0 l ~ Horne Fax No. Business Telephoxaer /N,o.~, 2 - ~~~ Business Fax Nb. Email Address: ~- X-CK $ * C'~ U c; Gt Gtr , c. C7Y-kt May we include your cantact in€orrnation on our web page? ALL If not alt, what inFormatfon xnay we include? ~~-~ ~~ o~ suss: _..-- Curreat mem 'p an or to®as: tl<~fn~ 1Ut° ~,aC L)eX /~~~}~~ 1 ~ .v 7~ 168 COT£TEZ;$ 4:U 3~31~ Y8i3 AitE RE$°3`FI3: G~ t ~7 ' ~~) (nG T SACH48R.45[dNlA9' m.x p}i`.R~.WWL' I iIII4 8"! YV 14PflR S614Y 1 V DSYliV d-W EY p _F'~~JM^s ~cv' W~~'9,C~i ~V ~U~~ ~° L~.Gi.~4°N'~4`r.~J. 1~/°Jl J~°''.^ILS ~\~~_..., signsign t~ure us ~'~t 0F! ~~ ~y . ~L November 24, 2007 P.O. Box 2988 d Soldotna, Alaska 99669 Carol L. Frees, City Clerk City of Kenai 210 Fidaigo Avenue Kenai, AK, 9961 S. Dear lots. Frees, The Cityof Kenai Wildlife Conservation Community Program (WCCP} partners are,attracting international: recognition for their achievements. This month our chapter, Alaska Kenai Peninsula Chaplet' of Safazi Club International; was notified that we had been chosen as the recipient of SCI's most prestigious award for conservation efforts; the 2(107 Safari G'lab International Dzaatond Coaservation rfward. Clearly, this impressive and positive publicity has put ~J,l of tfie partners in the WCCP in the limelight and figs further illustrated to the world their collective eomtnitment to wildlife conservation. Our chapter, as the non-profrt grants. administrator of the program; submitted the Wildlife Conservation Community Program for consideration in the SCI competifion. The projects which were submitted for the comperition were nat judged an chapter size but by their merit and how well they meet the criteria which were set by SCI for alt of the chapters internationally. We are especiatIy pleased to Fs0 able lei announce this accomplishment and certainly wanted to share this good news with you: since you aze one of our paitrters in this project. Without your support;: the WCCP would have never enjoyed the success it lies, had in the City of Kenai dt§riiig the pasttwo years. The Wildlife-Conservation Community Program has greatly reduced the number of both brown and black bear negative interactions in participating neighborhoods,. It has helped to create a better informed public and has helped to Foster a greater sense of responsibility and. ownership of our wildlife resources within the community. We wish to take this opportunity to thank you for your participation. in the 15/ildlife Conservation Community Program and to let you know that you were on an award wnmiugteazn. Sincemly, ~~~~ Clifford Hugg, Presrdent Enclosures: 2 169 November 2, 2007 Clifford Hugg, President Alaska Kenai Peninsula Chapter PO Box 2988 Soldatna, AK 99669-2488 Dear Cliff, COI`tGt2A TULATILITSS' 4` FERST FCDR HUNTERS The Alaska Kenai Peninsula Chapter has been selected the winner of the 2007 Safari Chib International Diem®nd Crrnservatinn Award. Your chapter has shown excellence and ambition in the performance of the mission and programs of SCI. You are a shining example of why our organization is the strongest voice for hunter's advocacy. You and your chapter members are to be honored on Wednesday evening, January 23, at the annual Hunters Convention in Reno. You are invited to accept this prestigious award on stage at the Chapter 12ecognition Night dinner held at the Peppermill Hotel & Casino. There will ba a: rehearsal walk through on Wednesday afternoon, at 4:00 p.m.; onstage in the Tuscany Ballroom. You will Head to contact Sandy Gracie at Tucson Headquarters (520-620-1220 ext 272) and let her know as soon as possible, the name of the person who will be accepting the award, whether it is you or another chapter member. If your chapter would like to purchase a table at the evening event, you may contact Kathy Butter in Tucson {ext 310} and let her know that you are an award wizxner and she will place your table closer to the stage. Award winners are extended special. placement. Again, congratulations and thank you for ai] the hard work you and your chapter da on behalf of SCI. The competition was tough, but your chapter was selected. You should all be very proredi Sincerely, ~ltf .r16fr..~/ ~~l(/~-~ Jonathan Davis; Chairman John W:Nelson, Chairman Chapter Award Committee Membership. & Chapter Development Wand Headquarters 4800 West Gates Pass Road,Tucson, Arizona 85745 9490 • Phone 520 620 1220 • Fax 520 622 1205 • wwwsdfirstforhunters.org 17~ Diar)nd C®nservati~n Awarcd Criteria • A chapter which has done a project in its state or community that achieves the conservation and protection of wildlife, habitat, and environs. • A chapter which has promoted the importance of the hunting community in conservation. ®A chapter which has joined a coalition within its state or community of other sportsmen groups to achieve a goad of conservation. • A chapter which has joined forces with the local Game Commission in projects concerning conservation. • A chapter doer not have to do all of the above atone time. Excelling in one area will allow it to be in compliance with the criteria. 171 I~CIHAI I~/R Speaiai Mattagemettt area "Working togefher...for fhe river" ~~~G~~ ~©~~C Kenaf River Specfaf Managerra.ent Area Advisory Board *** Tentative Meeting Agenda*** Thursday, December l3, 2007 5:30 p.m. Kenai River Center I. GALL TO ORDER A. Roll Call; Introduction of new members B. Minutes Approval C. Agenda Changes and Approval II. PUBLIC COMMENT TII. OLI7 BUSINESS A. Guide Advisory Committee report -Connors B. Kenai River Center Report; -Russell C. Cooper Landing Bypass status report -Sinclair D. Regulation status -Sinclair TtF. NEW BUSINESS A. Boaters Handbook -Boating Safety Education Coordinator Joe McCullough B. Committee Assignments and Comp Plan Review Follow-up- Wellman. V. ACTION ITEMS VI. PUBLiC COMMENT VII. ADJOURNMENT A. Board Comments B. Date/Agenda of Next Meeting January 10, 2008 5:30 p.m. Kenai Area Office, PO Box 1247, Soldotna, AK 99669; 907-262-5581 ' - ^' "~~t'"^' Kenai Peninsula Borough, 744 N. Binkley, Soldotna, AK 99669 907-262-4441 '~ ~ Kenai River Center 514 Funny River Road. Soldotna, AK 99669, 9D7-260-06$2 Alaska Division of Pmks entl Duttloor Recreation, DeDartneni~^ efuraf Resources, in cocperation wl(h the Kenai Peninsula eorcugh h 'u ~ V u~. r. w.. x Kenai River Special Management Area Advisory Board Minutes fihursday, November 8, 2007 5:30 p.m. Kenai River Center I. CALL 1`O ORDER A. Roll Call Members present: Joe Connors, Ted Wellman, Curt Shuey, George Heim, James Czarneski, David Carey, Jack Lashot for Rick Koch, Bobby Jo Skibba for Jeni Evans, Tom Vanier, Jack Sinclair and Tim Stevens. Members Absent: Brenda Trefon, Richard Dykema, Richard Hahn, Gary Knopp, and Robin West. B. Minutes Approved of October 11, 2007. The minutes were approved as written. G. Agenda Changes -None II. PUBLIC COMMENfi No Public Comment III. OL17 BUSINESS A. Guide Advisory Committee report -Connors The committee met-today to discuss seven items. The guide stipulafions for the 2008 season have been revised and completed. The second item was a guide replacement process. At this time an item needs to be brought to the board for further discussion before finalizing proposal. The committee would also Iike to meet with someone from the Department of Law or DNR Administration to help in the process. Currently the guide replacement process deals with only those guides that are currently registered for that particular year. Next was parking passes for The Pillars, with a season pass proposed, and this is in the package proposed by the superintendent. The fourth item was a discussion on limited entry program. This was postponed until a meeting next month. Discussion on the public use impact study for the Kenai River was just getting started; the committee is contemplating some ideas for that. The committee also postponed discussion on the complaint summary until next month. B. Kenai River Center Report- Pala Russell: guide complaint sunamarp- The summary contains all of the complaints that were submitted to 173 Alaska State Parks for the 2007 season. The summary consists of the date, location, source of the complaint, the complaint itself and the action that was taken. Ted asked if any of the complaints were referred to the guide advisory board. Joe said the guide advisory committee noted some of the complaints were to be given to the guide committee and they have not discussed them yet. Ted stated when forming this guide board and changing the commercial committee into a guide board one of the main goals was to have a sounding board for dealing with some of these complaints that might not be specifically questionable but involve inappropriate behavior. Why have not all complaints gone to the guide board for some discussion? Joe stated the committee is working on refining the process. Pam clarified when the complaint is taken the person. is given the option of how they would like to handle the complaint. People may not want to came in front of a board and discuss the issue. The compiled information was to be used by the guide academy in the ethics section. Ted also commented the action taken column needs to have more detailed information. Pam said the original complaint form contains the detail and follow up information. C. Contamination Report: 2igmart and others -Stevens Historically DEC has kept this hoard informed about four contaminator sites up and down the river. The farthest upstream site is Hamilton's Gas Station in Cooper Landing. That site received. a conditional closure with no additional cleanup requsred at this time. The source contamination being gasoline; the soil was removed to depth as far as they could dig down with a backhoe. There are still contaminates down deeper. The type of cleanup right now is natural attenuation, with ground water monitoring. The contamination plume is stabilized and is getting smaller. At this site there are sentinel wells between the contamination and the river, for monitoring purposes. Another site is Cook's Tesoro. A settlement agreement was reached in August of 2007. It is a state ownership site and additional costs for cleanup will be absorbed by the state: Ground water monitoring shows that there is improvement in the plume and it is getting smaller. The ground water treatment system was a "pump and treat" system that has been shut down. The site received a conditional closure in August of 2007. Kenai River Special management Area Advisory Board Minutes -November 8,.2007 174 The Zip Mart site is going through a ground water monitoring process. It has a soil vapor extraction system (SVEP7 that was expanded to the east last year to pick up some secondary contamination detected from a heating oil tank. The ground water plume downstream from the. soil vapor extraction system is showing a decline in the contamination level. There was a report of an increase in the monitoring wells at the edge of the plume. The SVEP system was drawing the fumes up causing a higher concentration. River Terrace: this site is still undergoing treatment with hydrogen releasing compounds to aid in the breakdown of contaminates. Perchloroethylene (PCE) ground water monitoring is done twice yearly. The plume is degrading as PCE breaks down into smaller and different components. Sediment sampling was completed in 2004 and 2006. In 2006 they did not see any PCE in sediments; however they did see levels of vinyl chloride, and Trichloroethylene (TCE) above water quality standards. These sediments were not found in the water column. A soil sample was Taken from the contaminated area and the water was extracted from the soil sample. The water sample did not show any contaminates. Another sample will be taken and tested in the 2008 season. James C. asked if any of the water wells in the area were shut down due to the contaminates? At the Zip Mart location a new well was installed and at the nearby school. Joe asked if there was a total amount of gallons at the Sterling Tesoro recorded. Tim stated he did not have that amount available at this dme, but estimated approximately 750 gallons had been recovered. D. Additional discussion on Deputq Commissioner Letter of iQ/ 11- Director King is excited about the commitment from the board to meet on Saturday, December i to review the management plan. The letter asked the board to review the plan, picking out pieces of the plan that still need work. The board should start putting those in a priority list, as well as brain- storming other issues and other planning efforts or addendums to the plan that might need to be added. One of the concepts he would like the board to pursue is to take part in a visioning exercise starting with the year 2020; for example if we were in the year 2020 and you had a magical wand what would the river look like and came to some consensus on that. E. lAUlalic Use Ympact Study Discussion- Sinclair/Handout - Jack Sinclair handed out a draft proposal of a description of what a Public Use Impact Study might require as far as scope and funding. The Kenai River Speciat management Area Advisory Board Minutes -November B, 2007 175 draft was distributed at the original working group back in 2004. It refers to one possible way of looking at a public use impact study. It should be used as a reference and may not resemble the actual impact study. Whether we are doing a new impact study or reviewing past studies for reference and assimilating the information into a more usable form will be for the board to contemplate. James C. asked how this fit into the big picture. Ted stated the court order might be satisfied by considering all the other studies about the river. We hope this (the public impact study) would incorporate all the other studies and meet the court order. Jack stated the court order was addressing a moratorium. The court order stated no limit would be imposed on guides until a public use. impact study was completed that addressed all users. Director King stated the hope for the study is to have it done in 2008 and bring all the other studies together. The department is working hard to get the money together. F. Correspondence sent- The board approved to send the October 19~ letter. This letter was to encourage the legislature to add the lands along Kenai Lake and Trail Lake and some EVOS to the Kenai River Special Management Area. G. Regulation Package update-Sinclair or Commissioner's Office Director James King stated we believe we have a final draft between Department of Law and DNR. We anticipate they will go to the Lieutenant Governor's office in the next month and the regulations would take effect shortly after the first of the year. Joe asked if there are any significant changes that were proposed by this body. Director King stated one of the loop holes was regarding when the regulations would take effect; another was making sure 2 stroke engines above 35 horsepower and below 50 horsepower were prohibited for the next 2 years through 2009. H. Comp Plan review Date Confirmation December 1, KRC Saturday at 9AM the Kenai River Center. Ail day. I. Cooper Landing Bypass status-Sinclair HDR is still under contract to do the technical reports for the federal highway project. The federal lands managers and state agencies recently met with HDR about wildlife crossing. The technical reports are still not due until next year. They are still moving ahead on the project. Joe and Kenai River Special management Area Advisory Board Minutes -November 8, 2007 176 Ted both thought this project was no longer a priority for the state as they both read something in the newspapers to that effect. Jack said he would verify this. xv. ~t~w ~uszrrESs A. Mary Toll Presentation on KPS Ordinance 2007-38 This ordinance would require the construction of some roads in some subdivisions before the subdivisions were developed. This ordinance has come around in different versions at least four times. It was approved in 2001 by the Assembly and then vetoed by then Mayor Bagley. So in March of this year Mayor Williams and Assemblywomen Martin dusted it off and brought it back. Ordinances 2007-11 and 2007-10, brought back a requirement that would change the road construction standards. The two ordinances were confusing and left to die on the table. They carne back with 2007- 33, and that was introduced in September of 2007. With so many amendments attached to this ordinance a substitute package was handed out with a Memo from Max Best showing the incorporation of all the ot'ner amendments. What this ordinance will do is require a very small amount of the subdivisions to have roads built before they are platted or the developer may choose to propose construction of the roads before he records his plat by committing to some sort of financial guarantee or a deed of trust, Mary looked at 6 month's worth of plats and said16.5% of these would require construction under this ordinance. Of those half or three-quarters were developers that already build the roads. Therefore approximately 8% of the plats would need to construct the roads before final plat. If this ordinance is adopted, the administration would come back immediately and reintroduce the road standards ordinance that would change the actual road construction standards to protect anadromous streams and buffers near rivers and streams. James C. asked if this version includes an amendment that would address 100 foot from a salmon stream. Mary said the Mayor chose not to put this in the amended version. The intention is the issue will be addressed in the road standards ordinance. Joe asked if there was a percentage of roads in the subdivision that are being built or proposed to be built within 100 feet of a salmon stream. Mary did not have that information. James C. said Robert Ruffner had staff look at that. They looked at around 300 plats and there were around 6 to 8 of the plats that-would fall around that 100 foot buffer that would have been affected. B(enai River Special management Area Advisory Board Minutes -November S, 2007 177 Jae stated that this amendment is an improvement but has concern about the standards. We have an issue in the borough about culverts. The roads standards need to address the anadromous streams for roads and culverts. Joe submitted a motion to have the board to support this ordinance 2407-33 and have it sent to the assembly to be read. James C. seconded the motion. Curt asked if there has been any opposition to this ordinance publicly. Mary To11: Yes, the survey community has voiced quite a bit of concern that this will slow the process down for sub-dividing. Their issue is the portion of the ordinance that will be in place will be managed by the (borough) road maintenance department. It has not been determined how the road maintenance department will handle the process. Ted asked when this was going to the Assembly. Mary stated November 20, 2007. Ted: Ts there any more comment or public testimony? The November meeting will be to passthe ordinance or not. They postponed public testimony at the last meeting. Written comments are being accepted for the motion until November 20~ Ted commented there is a motion an the floor. Does anyone wish to discuss that? Curt said he was uncomfortable about a motion when there is different thinking in the community and we have not given them significant notice to discuss this. Ted stated we had a rule that the board would have 2-week native but not always in regards to letter of support or opposition. Ted talked about the board making mare timely comments to the planning and zoning commission an plats that are coming out so we don't have last minute things coming out. Ted asked if anyone was opposed to a letter of support for the ordinance. Jack asked if tl2is letter is in support for substitute ordinance 2007-33 with the amendments as posted by Max Best. Dave Carey stated he did not support the letter. Kenai River Spacial management Area Advisory Boartl Minutes-November 8, 2807 Z/C~ James C. asked what if we individually read the memo and then do an e- mail vote? Joe commented if the assembly is going to deal with this in the near future, we need to deal with it now. Jack asked if this could be mare of a general support letter and not a specific amendment or ordinance. What you do support, basically, is a development of standards that both protect salmon streams and watershed surroundings. Joe agreed and changed the motion. Building to standards and protecting the habitat. Joe proposed to withdraw the motion in favor of a different motion. James C. proposed a motion to support road construction standards and practices that offer more protection to salmon stream and watershed before the final plat approval. Joe seconded the motion, which rescinded his previous motion. Ted stated the motion is not an endorsement of the ordinance but endorsement of the concept. Motion passed unanimously. $. Presentation: On the River- John Czarnecki, Jan Xeager John Czarnecki works at the Kenai River Center for the Kenai Peninsula Borough and Jan Yeager is the Education Coordinator for the Kenai Watershed Forum. Anew publication is now available called On the River the subtitle is A Guide to Owning and Managing Waterfront Property on the Kenai Peninsula. This book was developed to help property owners to develop their property correctly the first time. Copies are available to at the Kenai River Center. C. $oaters Handbook Outline and future meeting with $aatiag Safety Education Coordinator Joe hleCullaugh for l7ec 13- Sinclair A draft of the handbook was given to each board member. Joe McCullough education coordinator for the Alaska Boating Safety Office will be down for next month's KRSMA meeting to ask far input and talk about the handbook. This is a useful handbook for people intending on Recreating on the river and for those who live on and around the river. It is intended to be a boater's basic informational book specific to the Kenai River. I1. Deferred flgaintenance Report for the KYZSR~lA- Sinclair FCenai River Speoial management Area Advisory Board Minutes-November 8, 2D07 179 Jack informed the board about the State Park deferred maintenance catalog web page link that is seldom visited but it is very important to th.e area. Tt represents the mast outstanding maintenance issues that need to he attended to. There is a huge backlog of things that have nat been taken care of over the years and the lack of ability to get to all these done. The report talks about all the facilities in the area that needs addressing. These are ranked by priority as 1, 2 and 3. We are hoping that during this next budget cycle serious attention is made to the state parks in deferred maintenance within the State's capital request. The hope is for 2 million dollars for the Kenai Area in 20D8. Bobby Jo Skibbo asked if getting a group to volunteer to help with maintenanae in the -State Parks such as Adopt a Cabin. Jack stated we do partner with other organizations to help with finances in helping with the program. Not actual physical help. E. Resignations, Appointment information, if available Ted stated that Ken Lancaster has resigned his position on the board for his own reasons. The board now has another slot to fill. He talked earlier about the appointments. Director James King and Deputy Commissioner Dick Lefebvre are interviewing prospective candidates. Tha timeline is to have the new positions in place by the December l~ meeting so they may participate in that meeting. F. Board approach to filing abjeetions aritla the KPE Planning and Zoning Commission- Wellman Ted stated there are concerns the board needs to be more involved in the platting process. One of the major challenges we are being faced with is riverbank development that is inconsistent with our comprehensive plan. The comprehensive plan. calls for low-density, large lot subdivision on the river which was what the board recommendations have been in the past. We have seen a lot of proposals that are anything but; they are quite the opposite. He recommended reviewing the plats with the permit committee and be prepared to take a position on these. Director James King recommended that we amend the Memorandum of Understanding to include the City of Kenai and Soldotna to share with them the concerns and discuss the possibilities of creating a new MOU to include them. This would create a partnership that would be beneficial in the future. G. Gommunication isssxes and strategies for improvement. Kenai River Special management Area Advisory Board Minutes -November 8, 2007 igo Ted said this came out of prior discusssons that would help the functioning of the board and communication. Ted hopes we can do some board training after the first of the year. It would be useful for the board members to identify problems and issues and develop ideas on how we can make the board function better. V. ACTION I'TEYdLS No Action Items VI. PUBLIC COMMENT VII. ADJOURNMENT A. Board Comments James C. asked about discussion on limited entry; and when or how do we go about replacing chair or officer person. Jack responded that the by laws. say we elect officers at January's regular meeting. Tom Vania said at the Board of Fish workshop special project coordinator Doug Vincent Lang gave a presentation on where the department was at. Legislation would not be presented at this legislative cycle but at the 2009 legislative session. Torn Vania commented about the Board of Fish meeting for upper Gook Inlet. The proposals are on line. Comments are due and you can get help with a local Advisory Committee. The proposal far below the Warren Ames Bridge has been submitted to change the effective date to match DNR regulation for the rest of the river regarding 2 stroke restrictions. Jack Lashot mentioned that the City of Kenai's dip net fisheries report for the 2007 season will be available at the next board meeting in December. George Heim commented about the Snaw River ice dam breaking. Curt thanks James and Dick for attending the meeting. Bobby Jo Skibbo reported that there were 130 human/bear interactions. None of them were in need intervention. The Russian River Coordination Group is embarking on a regulatory process to get regulations in place for food storage and for people with backpacks. B. Date/Agenda of Nest Meeting December 18, 200? 6:30 p.m. Kenai River Spscial management Area Advisory Board Minutes -November 8, 2009 181 .Kenai Peninsnia ~oratx~h s°~e l ~ December 4, 2007 - 7:D0 p.m. Regular Meeting Borough Assembly Chambers, Soldoma, Alaska A: CAL TO ORDER Graae Merkes B. PLEDGE OF ALLEGTANC]E - Assembly President ~ - - Seat S-Sterlcrig/Funny River Term Expires 2008 C•. - INVOCATION Pete Sprague D. RQLL CALI. Assembly Nice President Seat4-Sotdotna ~ - - Term Expires 2010 E. COiVIMITTEE REP(1RTS Paul Fischer F. APPROVAL OF' AGENDA AND CONSENT AGElV'DA Assembly Member Seat 7 - Central All items listed with an asterisk ( ()are considered to be routine and non-controversial by the Term Expires 2010 Assembly and will be approved by one molten. There will be no separate discussion o: these items unless an Assembly tvfember so requests, in which case the item will be removed from the Margaret Gilman Consent Agenda and considered in its normal sequence on the agenda:) Assembly Member - Seat2-Kenai G. APPROVAL OF MINUTES - Tezm Expires 2008 - - ^Knopp * I • November 20, 2007 Regular Assembly vteeiing Minutes ....... I Assembly Member Seat 1- Xatifornsky ~, COMMEI~rDING RESOLUTIONS AIVD PROCLAMATIONS Term Expires 2009 - Ron Long I. PRESENTATIONS ~VITII PRIOR NOTICE {20 minutes total) Assembly Member - - - seat 6-East Peninsula 1. Central Peninsula aeneraI I#ospital, Ino. Qu~rCerly Report Term Expires 2009 {10 minutes} Milli Mai'[in Assembly Member 2. John Czarnezki, Resource Planner forthe Kenai River Censer, Seat 9 -South Peninsula `oQII t]1e River" (10 minutes) ~ - - Term Expires 2009 Bill smith J. PUBLIC COMMENTS .ON ITEMS N®T' APPF,AIZIATG Ol\T THE Assembly Member AGENI?A (3 minufes per speaier;-20 minutes aggregate} Seat 8 - Xomer ~ - - Term Expires 20(18 If, REPORTS OF' COIVIMI5SIC7NS AND COL'NCILS~ G¢ry Supermars - Assemblyb~ember Seai3-Nikiski Tenn Expires 2610 Dec8m4sar 4, 2007 Pave 1 of 6 182 L. MAYOR'S REPORT ......................... . ...................:..... 28 1. Agreements grid Contracts a. Approval of contract with G&H Construction for Ciechanski ROVd Project ........:....... ..............: .............29 b. Approval of contract extensions with Stearn on Wheels, Metco, Inc., and White Lightning Snow Plowing for Snow RemovaUSanding of Various Borough Facilities ........:... : ..... . ............. . .. 30 a Approval of contract with D&L Construction Company, Ine. for Recycle Hauling from Central Peninsula Landfill. to Anchorage , ...... 36 d. Approval of contract with Tinker Creek Surveys for Kenai Spur Highway Mile 23 Surveying Project .................., :....:... 37 e. Approval of contract with David M. Derry, M.4I for Appraisal Services outside Homer ............:...........:............. 38 £ .Approval of contract with Tinker Creek Surveys far David Avenue Surveying Project .........:.......:.:.... ,.................. 39 2. Other a. October Labor Statistics for Kenai Peninsula Bomugh .............. 40 M. N'. O. ITEMS N®T COMPLETED FROM PRIOR AGENDA -None PI~'SLIC HEARINGS O1®T ORDINANCES (Testimony limited to 3 minutes per speaker) 1. Qrdinance 2007-39: Amending KPF3 5.12.1OS to Require That the Same Criteria Apply to the Senior Citizen Property Tax Exernptions Regardless of Whether the Properly Is Valued at More or less than fhe Mandatory Exemption on $150,000, and Elirninating the Requirement That Qualifying Seniors Not Leave the Borough for Mare than 120 Days in a Calendar Year (Fischer, I~!Iayor) (Referred to Finance Committee) ..:..:........:........ 44 LJ~'FtNISFIED BLTSI1ddESS 1. Postponed Items a. Ordinance 2007-19-22: Appropriating $850,000 of Interest Income to Pay the Cost of Capital Improvements at the South Peninsula ................_2 Hospital (Mayor} (Referred to Finance Committee) S December 4, 2007 Page 2 of 6 183 b. Ordinance 2007--33 (Mayor, Martini Substitute: Amending ICPB Title 14, "Streets, Sidewalks; Roads and Trails," and KPB Title Z0, "Subdivisions," Providing for the Construction of Roads to Borough I~Saintenance Standards Prior to Final Plat Approval (Mayor, Martin) (Referred to Lands Committee) ........ , .......... , ........... 55 (Cder^k's IJote: Ordinance 2007-33 (Subj was postponed and na additional public testimony will be taken.) P NEW BUSYNESS Resolutions *a. Resolution. 2007-078: Authorizing the Kenai Peninsula Borough Assembly President to Sign Cit3~ of Kenai, City of Soldotna, and Kenai Peninsula Borough Joint Resolution IvTo.2009-02, Requesting the Board of Fisheries to Adopt Regulations to Reduce Hydrocarbon Discharge at the Mouth of the Kenai River (Kropp, Sprague) (Referred to Policies and Procedures Committee) .................: 72 *b. Resolution 2007-0'79: Supporting State Funding of a Mariculture Processing Facility in Kachemak Bay (Martin) (Referred to Policies and Procedures Committee) ....................... . ........... 76 *c. Resolution 2407-080: Authorizing the Acceptance of a Late-Filed Disabled Veteran Exemption Application Filed Before March 31, 200'7 (Mayor) (Referred to Policies and Procedures Cornmithee) ...... 81 * d. Resolution 2007-081: Denying the Acceptance of Late-Filed Senior Citizen and Disabled Veteran Exemption Applicaftons Filed after March 31, 2007 (Mayor) (Referred to Policies- and Procedures Gommittee) ......................:...:....................88 *e: Resolution 2007-082: Authorizing file Issuance of Central Kenai Peninsula Hospital Service Area General Obligation Refunding Bonds, in One or More Series in the Principal Amount of Not to Exceed $35,000,004 to Refund Certain Outstanding General ObligationBonds ofthe Service Area, Fixing Certain Details of Such Bonds and Authorizing Their Sale (Mayor} (Referred to Finance Committee) ...,..:: ............:...:.......................104 December 4.2007 Page 3 of 6 184 *£ Resotution 2007-083: Authorizing the Mayer, on Behalf of the Kachemak Emergency Service Area, to Enter an Agreement with the City of Homer to Continue under the Existing Agreement to Provide Fire and Emergency Medical Services until June 1, 2008, While the Parties Negotiate a New Agreement (Mayor) (Referred to Finance Committee} ...............................................138 2. December 4, 2007 Ordinances *a. Ordinance 2007-19-31: Appropriating $20,000 Received from the State of Alaska, Division of Forestry for Reimbursement of Costs Incurred by Anchor Point Fire and Emergency Medical Service Area in Assisting the State's Efforts to Fight Fires During the 2007 Fire Season {Mayor) (Hearing. on 0'1/08/08} (Referred to Finance Committee} ..............................................141 *b: Ordinance 2007-14-32: Accepting and Appropriating a Grant from the State of Alaska in the Amount of $ZOO;ODO for Community Purposes under the State's Mtmicipal Energy Assistance Program (Mayor) (Hearing on 6i/08/08) (Referred to Finance Committee} ....144 * c. Ordinance 2007-19-33: Accepting $523,650 fromthe AlaskaHousing Finance Corporation for Teacher Housing in Nanwalek and Appropriating the Grant and Matching Funds in the Amount of $200,000 to a Capital Project Account {Mayor) (Hearing on 01108/08) {Ref rred to Finance Committee) ..................... I50 *d, Ordinance 2007-19-34: Accepting and Appropriating a State Chant in the Amount of $100,000 to Provide Fishing Opportunities for Disabled Veterans and Authorizing a Sole Source Agreementwiththe Last Frontiersman to Provide the Services (Mayor) (Hearing on 01/08!08) (Referred to Finance Committee) ................... . .159 *e; Ordinance 2007-40:AuthorizingaOne-YearExtensionoftheOption to Lease Ladd Landing Between the Kenai Peninsula Borough and Richard D. Bass, William Herber~l Hunt and Wiiliarn Herbert Hunt Trust Estate (Mayor) (Hearing on 01108/08} (Referred to Lands Committee) .............._........:.....,......,.........172 *£ Ordinance 2007-41: Authorizing the Mayor to Execute a Sublease and Operating Agreement with South Peninsula Hospital, Ine. for South Peninsula Hospital and Other Medical Facilities {Mayor} (Hearings on 01/08/08 and 01/22/08) (Referred to Finance Committee} .......................................x.,.....181 Page 4 of 6 185 3. Other *a. Confirming Appointments to the Board of Adjustment and the Board of Equalization (Referred to Policies and. Procedures Committee} ..184 *b. Petition to Vacate a Portion of Curry Lane, Adjacent to Lots 2 - 7 Block 4 and Lots 2 - 4 Block 1, Dedicated by Nikishka Subdivision No. 5. (Plat KN 1437}; within Section 1, Township 7 North, Range 12, West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2007-279; Location: South of Kenai Spur ITvtiry in Nikiski (Referred to Lands Committee) ......., ..............192 (Clerk's Note: The Planning. Commission approved the above referenced vacation by unanimous consent at its regularly scheduled November I3; 2D07 meeting.) Q. PE7BLIC COMMENTS AND I'TTBLIC PRESENTATIONS (3 minutes per speaker} I8. ASSEMBIL'Y IYIEETING A.NYS BEARING ANNOUNCEMENTS 1. January 8, 2008 Regulaz Assembly Meeting 7:00 PM Soldotna S. ASSEMBLY COPvLNfEtNTS T. - PE1VI}ING LEGISLf4.TION (This item Iists legistation which will be addressed at a later date as noted.) 1. Ordinance 2007-19-29; Appropriating $25,000 from the General Fund to be used in Developing a New Comprehensive Plan for The City of Soldotna (Mayor} (Hearing on 0U08/08) (Referred to Finance Committee) 2, Ordinance 2007-19-30: Appropriating: $50,000 frain tine General Fund to be Used in Updating the Comprehensive Plan for the City of Homez (Mayor} :(Hearing on 01/08!08) (Referred to Finance Committee). 3. Ordinance 2007-36: Amending KPB 4.30.060 to Prohibit a Person from Serving Simultaneously as a Member of the Assembly and Member of a City Council Within the Borough (Martin) (Hearing on 01!08/OS) (Referred to Policies and Procedures Committee) 4. .Ordinance 2007-3'1: Amending 1{PB 22.40.020 to Prohibit Assembly Member Attendance at Assembly Meetings by Teleconference (Sprague} (Hearing on 01/08/08} (Referred to Policies and Procedures Committee) Deoember 4, 2007 186 Page 5 ofb 5, Ordinanoe 2007-38: Amending KPB 5.12.050; Valuation and Flat Tax Appeal Procedure {Mayor) (!-Tearing on 01!08/08} (Referred to Finance Committee) 6. Resolution 2007-051: Approving Plans -for Participation in the Fiftieth Anniversary of Alaska Statehood Celebration (Mayor) (Referred to Policies " and Procedures Committee) Tabled on 11/2/07 7. Resolution 2007-459: Committing to the Development of a Locai Climate Change Impact Plan (Long, Gilman; Martin, Smith) (Referred to Policies and Procedures Committee} Posiponad untzl 01/08/08 ET. INFORMATIONAL MATERIALS ATVD REPORTS ~7. NOTICE OF NEXT MEETING AND ADJOURNli'IEIST The next meeting of the Kenai Peninsula Borough Assembly will be held on January 8; 2008, at 7:00 P.M. in the Borough Assembly Chambers, Saldotna, Alaska. This meefrng wit! be broadcast on KDLL-FM 97.9. (Central Peninsula), KBBI-AIv! 890 (South Peninsula); KZOI fiO-FM 88.1 (East Fentnsula). Copies of agenda items are available at the Borough "Clerk's Dice in the Meetiizg Room just prior io the meeting. For further information, please call the Clerk's Ojjice at 714-2160 or toll free within the Bnrough all-80G- 478-4447, Ext. 2I60. Visit our websife at www.borough.keriai.akus for copies of the agenda, meeting summaries, ordinances and resolutions. L7ecembar 4, 2007 Page 6 of 6' 187 AGENDA ENAI CITY COUNCIL -REGULAR MEETING E-- DECEMBER 5, 2007 ~^-' 7:00 P.M. ~ n~/ KENAI CITY COUNCIL CHAMBERS uewu.uasxq htto://www.ci.kenai.ak.us U ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 9. John Bost, Mikunda Cottrell & Co. --City of Kenai Autlit Report ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker) 1. Ordinance No. 2268-2007 -- Amending KMC 3.15.040 to Provide that 1) a Hearing Shall be Held to Determine Whether a Dog Kennel License Will be Granted or Renewed; and 2) Property Owners Within 300 Feet of a Parcel That is the Subject of a Dog Kennel License Application Shall be Notified of the Application and the Date, Time and Place of the Hearing; antl 3) Setting Out the Appeal Process for Any Aggrieved Party. (Clerk's Note: At the November 21, 2007 meeting, Ordinance No. 2268- 2007 was tabled to the December 5, 2007 council meeting. The motion [o enact is active.) a. Substitute Ordinance No. 2268.2007 -- Amending KMC 3.15.040 to Provide that 1) a Hearing Shall be Held to Determine Whether a Dog Kennel License Will be Granted; and 2) Property Owners Within 300 Feet of a Parcel That is the Subject of a Dog Kennel License Application Shall be Notified of the Application and the Date, Time and Place of the Hearing; and 3) Setting Out the Appeal Process for Any Aggrieved Party. 2. Ordinance No. 2269.2007 -- Enacting Chapter 5.40 of the Kenai Municipal Code Establishing a Licensing Procedure for Pawnbrokers and Regulating How Pawnbrokers Conduct Business. (Clerk's Note: At the November 21, 2007 meeting, Ordinance No. 2269- 2007 was tabled to the December 5, 2007 council meeting. The motion to enact is active.) 3. Ordinance No. 2270.2007 -- Increasing Estimated Revenues and Appropriations by $71,730.85 in the General Fund for Repair of the Visitors Center Heating System. 4. Ordinance No. 2271-2007 -- Increasing Estimated Revenues and Appropriations by $1,254,000 in the Wellhouse 4 Capital Project Fund for Water System Upgrades and $627,000 in the Water and Sewer Fund to Provide Matching Funds for a State Grant. 5. Ordinance No. 2272-2007 -- 1) Amending the Lantl Use Table in KMC 14.22.010 by Separating "Storage" From the Current Use Listing of "Manufacturing/Fabricating/Assembly Storage" and; 2) Adding "Storage Yard" and "Mini-Storage Facility" to the Listed Uses in the Land Use Table and; 3) Amending KMC 14.20.320 by Providing Definitions of "Wholesale Business," "Mini-Storage Facility," "Storage Yard," and "Warehouse." 6. Resolution No. 2007-76 -- Accepting the Updated 2007 Historical Preservation Plan for the City of Kenai. ITEM G: UNFINISHED BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. "Ordinance No. 2273-2007 -- Increasing Estimated Revenues and Appropriations by $50,000 in the Senior Citizen Fund for a State of Alaska Grant for Building/Equipment. EXECUTIVE SESSION -- None scheduled ITEM N: 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 htto://www.ci.kenai.ak.us. Carol L Freas, City Clerk D812/211