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HomeMy WebLinkAbout2007-02-21 Council PacketMAKE 2'~ PACKETS COUNCIL PACKET DISTRIBUTION I couNCIL MEETING DATE: Mayor/Council- ' Attorne v' Ta for/S rin er/Kebschull ./ Clerk ~ Cit Mana er / gu~ilc"Wp~~s ~~ Police Department ~' Finance ~' En ineer , f Senior Center ~' Air ort "~ Kim ~'~ Librar " Parks & Recreation ~'' Clarion Fire Department ~' Schmidt t/ Mellish VISTA '~ Student Re ~ KSRM f AGENDA DISTRIBUTION 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 ns soon as possible after Noon on packet 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 Ibell@acsalaska.net). hiome 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 them onto the city's website from there ns soon ns possible before leaving the offiee for the weekend. <' 0 a 3 O C3 z w W J U Z O U p J w ~ tC ~ o (n J >' w O Q ~ W W p ~ m d p ~ ~ e d p w 0 [C ~ p CA O } ~ p Q ~ o w ~ ~ m a ~ c'}n ~' J p (~ o J ~ W ~ Z ~ ~ ~ v c~ o w ~ ~ m a ~ i a c•~ ~ (~ ~" o ~ W ~ty ~ o ~ } ~ p Q i~ o w ~ ~ m op. ~ ai w w ~fW-~~ OOp~s ma~cn ~~, 0 ~6 I ~ a~ a~ a w OwW~~ I/J J J I- (qJ}COQ 00000 m~ma~cn q O z W w J U Z O U O J w o~ W ' °~ ~ p ~ ~ o } w ~ O ¢ s ~ o w n ~ ~ m O ~ a a . i `e OJ O ~- ~ w ~ p c`~n O 0 ~ ~ O 0 Q w J 0 0 0 ~ o w m ~ m d ~ cn W o ~ J ~ O ¢ 0 0 y . 0 0 0 ~ ~ m a ~ cn O J w O r ~ ~ m ~ w m w z w ~ ~ o cn ~ J ~ w O ¢ w J 0 0 0 p 0 ~ o w cc ~ m a ~ cn w w p } ~ W Z ~ ~ ~ J ~ ~ ~ m~J~mOQ J00000~ wm~ma~cn FEBRUARY 21, 2007 REGULAR COUNCIL MEETING Requests for amendments to the agenda: BY: ADD TO: Items E-5 and E-6 (Resolutions No. 2007-05 and 2007-06) -- Request to postpone to April 4, 2007. CITY ATTORNEY ADD TO: Item E-S, Resolution No. 2007-OS -- Map noting Wiidwood Water Main Extension CITY MANAGER SUBSTITUTE HH=2: H-2, Purchase Orders Exceeding $15,000 -- Changes in purchase orders include: Change to Fellman Machinery from NC Machinery and addition of Kidde Fire'IYainers purchase order. ADMINISTRATION CONSENT AGENDA None. MAYOR'S REPORT FEBRUARY 21,2007 REGULAR COUNCIL MEETING REQUESTED BY: Requests for amendments to the agenda: ADD TO: Items E-5 and E-6 (Resolutions No. 2007-05 and 2007-06) -- Request to postpone to April 4, 2007. CITY ATTORNEY ADD TO: Item E-S, Resolution No. 2007-OS -- Map noting Wildwood Water Main Extension CITY MANAGER SUBSTITUTE HH=2: H-2, Purchase Orders Exceeding $15,000 -- Changes in purchase orders iinclude: Change to Fellman Machii-~ery from NC Machinery and addition. of Kidde Fire Trainers purchase order. ADMINISTRATION CONSENT AGENDA None. MAYOR'S REPORT AGENDA KENAI CITY COUNCIL -REGULAR MEETING FEBRUARY 21, 2007 7:00 P.M. KENAI CITY COUNCIL http: / /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 cn u':e agenda as part of tl:e General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) Tim Robertson, NUKA Research -- Emergency Operations Plan Review 2. Rusty Belanger, Acting State Fire Marshall -- PRISM ITEM C: UNSCHEDULED PUBL%C COMMENTS (3 minutes} ITEM D: REPORTS OF KPB ASSEMBLY LEGYSLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) Ordinance No. 2212-2007 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a Library Grant. 2. Ordinance No. 2213-2007 -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund to Purchase a Dip Net Pay Shack. 3. Ordinance No. 2214-2007 -- Increasing Estimated Revenues and Appropriations by $39,000 in the General Fund Shop Department to Rebuild Loader. 4. Resolution No. 2007-04 -- Transferring $20,000 In the Airport Fund to Repair Props at PRISM. 5. Resolution No. 2007-05 -- Approving the Lease Form for Leases of Airport Land Outside of the Airport Reserve. 6. Resolution No. 2007-06 -- Approving the Lease Form for Leases of Airport Reserve Property. 7. Resolution No. 2007-07 -- Accepting the Donation of a Foarn Pumper From ConocoPhilhps Alaska, Inc. 8. Resolution No. 2007-OS -- Approving an Agreement Between the State of Alaska, Department of Transportation & Public Facilities, Department of Corrections, and the City of Kenai, Alaska, to Facilitate Construction of a Water Main to the Wildwood Correctional Complex, Project No. 50783 and Authorizing the City Manager to Execute the Agreement on Behalf of the City of Kenai. ITEM F: MINUTES 1. *Regular Meeting of February 7, 2007. ITEM G: ITEM H: NEW BUS%NESS Bills to be Ratified Approval of Purchase Orders Exceeding $15,000 *Ordinance No. 2215-2007 -- Increasing Estimated Revenues and Appropriations by $1,212 in the General Fund for a Library Grant. 4. Approval -- Mini-Grant Application Amendments. Approval -- Rental Agreement/Chevron North America Exploration and Production -- Alaska Regional Aircraft Fire Training Center. 6. Discussion -- Vintage Pointe Senior Housing/Raise of Rental Rates 7. Discussion -- Public Opinion Poll 8. Discussion -- Expansion of Kenai Municipal Cemetery ITEM I: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Comu~ission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report YTEM J: REPORT OF THE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: 1. Citizens (five minutes) 2. Council - None Scheduled ITEM M: ~-1 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2212-2007 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,000 IN THE GENERAL FUND FOR A LIBRARY GRANT. WHEREAS, the State of Alaska has provided a Continuing Education grant in the amount of $1,000; and, WHEREAS, the grant is to be used to attend a cataloging workshop. 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: State Grants $1,000 Increase Appropriations: Library -Transportation $1,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance:- (02/O1/2007) hl Introduced: February 7, 2007 Adopted: February 21,2007 Effective: February 21, 2007 Ez Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2213-200? AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $2,000 IN THE GENERAL FUND TO PURCHASE A DIP NET PAY SHACK. WHEREAS, the City of Kenai received restitution in the amount of $2,000 for damage to a dip net pay shack; and, WHEREAS, the building needs to be replaced before summer. 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: Restitutions $2,000 Increase Appropriations: Parks -Small Tools & Minor Equipment $2,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (02/01 J2007) hl Introduced: February 7, 2007 Adopted: February 21,2007 Effective: February 21, 2007 E-3 Suggested by: Admimstranon CITY OF KENAI ORDINANCE NO. 2214-200? AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $39,000 IN THE GENERAL FUND SHOP DEPARTMENT TO REBUILD A LOADER. WHEREAS, it is the policy of the City of Kenai to rebuild heavy equipment rather than purchase new equipment; and, WHEREAS, a loader recently lost a transmission and was scheduled for rebuilding both the engine and transmission next year; and, WHEREAS, the equipment is currently out of service and impacting the Street department operations; and, WHEREAS, funds are available in the General 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: General Fund Increase Estimated Revenues: Appropriation of fund balance $39,000 Increase Appropriations: Shop -Repairs and Maintenance $39,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21s~ day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (02/01/2007) hl Introduced: February 7, 2007 Adopted: February 21, 2007 Effective: February 21, 2007 ~.a Suggested by: Administration CYTY OF KENAI RESOLUTION NO. 200?-04 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, TRANSFERRING $20,000 IN THE AIRPORT FUND TO REPAIR TRAINING PROPS AT PRISM. WHEREAS, the City of Kenai owns the Alaska Regional Aircraft Fire Fighting Training Center otherwise known as PRISM; and, WHEREAS, through normal wear and tear the training props and systems require repairs estimated to cost $20,000; and, WHEREAS, funds are available in the Other Buildings/Areas Utility, Repair and Maintenance and Contingency accounts. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: Airport Fund From: Other Buildings/Areas -Utilities $11,000 - Repair & Maintenance 5,000 - Contingency 4,000 20 000 To: Training Facility -Repair & Maintenance 20 000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of March 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance:__ (02/14/2007) hl ~~r\ -- /. tl~eu'yaf ~~ KENA~ SKA "V'fla e wit~t a Past, Gi wit~r a .~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 /Fax: (907) 283-3014 www.ci.kenai.ak.us MEMORANDUM TO: Mayor Porter and the Kenai City Council FROM~~~ Cary R. Graves, City Attorney DATE: February 21, 2007 RE: Postponement of Packet Items E-5 and E-6 Packet items E-5 and E-6 areairport land lease forms. The administration would like consideration of them to be postponed until the meeting Apri14`~, 2007 in order to give the administration more time to get input from the public In particular, the administration would like to have the KIiDS group review them and provide input. Please let me know if you have auy questions. E- 5 Suggested by: Administration CITY OF KENAI 'RESOLUTION NO. 2007-05 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE LEASE FORM FOR LEASES OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE. WHEREAS, the Kenai Municipal Airport is the owner and lessor of a significant amount of property within the City of Kenai; and, WHEREAS, the City of Kenai has undergone as supplemental planning assessment in order to update airport operations including: planning, finances, accounting, management, and leasing; and, WHEREAS, as part of the supplement planning process airport Land was divided into the Airport Reserve and land outside of the Airport Reserve; and, WHEREAS, those two areas have different rules governing leasing; and WHEREAS, the procedures for the leasing of airport land outside of the Airport Reserve lands is contained in KMC 21.15; and, WHEREAS, KMC 21.15.160(a)(3) states the lease form for land outside of the airport reserve should be approved by the city council by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the lease form for land outside of the Airport Reserve as shown on Attachment A is hereby approved by the City Council. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk ATTACHMENT A LEASE OF AIRPORT LANDS (Outside the Kenai Municipal Airport THIS AGREEMENT, entered into this day of between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, municipal corporation of Alaska, hereinafter called "City," a whose address is called i_, by and home-rule That the City, in consideration of the payments of tYce'rents_and performance of all the covenants __ herein contained by the Lessee, does hereby demise and ]ease to the Lessee the following described property in the Kenai Recording District, Third Judic%al_DrstrJct, State of Alaska; to wit: Lot_, Block _, _ ,according to Plat No. A. PURPOSE Thepta~ose for whtch~fJie Lease is issued is: B. TERM: The term of this Lease is forLL_ years, commencing on the day of 200_ Lease, C. Subject to the terms of General Covenant No. 9 of this [td shall be payable as follows: rental rate shall be 8% of the fair market value (as set forth and 9) of the demised premises. The rental effective , r, plus applicable sales tax, based on a value of $ , nt to General Covenant No. 9. defined in Ge 200_, shall be subject Co redet The 2. '`' Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable in advance on or before the first day of July of each year. If the annual rent exceeds $2,400, then the Lessee may opt at the time of the execution hereof or at the beginning of each new Lease year to pay renC in equal monthly installments, payable in advance on or before the first day of July and on or before the first of each month thereafter. LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVE -Page 1 of 18 (arYaeh A) Lessee: 3. Rental for any period that is less than one (1) year shall be prorated based on the rate of the last full year. 4, In addition to the rents specified above, subject to General Covenant No. 9, Lessee agrees tco pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: (a) Taxes pertaining to the leasehold interest of the (b) Sales tax now enforced or levied in the fu in monthly installments whether rent is paid on a (c) Lessee agrees to pay all taxes and City of Kenai, as if Lessee was considere property ' (Ct) Interest at th® rate of eight peroene (8 penalties of any amount of money owed under before the date it becomes.due. (e) Repayment of fors to KMC 21,15.130. Repayment shalLbe ~ plus 8°IQ~inierest owing on the m entire rema~nirig balance earlier than due. D. GENERAL>COVENANTS.: upon rent payable irly basis. is levied in the futurd'by the owner of record~f the leased annum and ten percent (10%) ~aserwhich is not paid on or onstructed improvements pursuant in yearly payments of balance. The lessee may pay the 1 ;,~JSES: Except as provided herein, any regular use of lands or facilities without the Mitten consenk of the City i5~prohibited. This prohibition shall not apply to use of areas designated by the City fir specified public uses, such as passenger terminals, automobile parking-are~~, and streets. _. 2. USES NOT CONTEMPLATED PROHIBITED: The promotion or operation of any part or kind of business or commercial enterprise, other than as specifically set forth herein, upon, in rai• above airport lands, without the written consent of the City is prohibited. 3. ASSIGNMENT OR SUBLETTING: Lessee with City's prior written consent, which will not be unreasonably denied, may assign, in whole or in part, its rights as Lessee hereunder. LEASE OF KENAI AIl2PORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVE -Page 2 of I S (attach A) Lessee: Any assignee of part or all of the leased premises shall assume the duties and obligations of the Lessee as to such part or all of the leased premises. No such assignment, however, will discharge Lessee from its duties and obligations hereunder. 4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. 5. TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in good order at its own expense, allowing no damage, waste,Ttor destruction thereof, nor removing any material therefrom, without written permission of tlae Ci~%. At the expiration of the term fixed, or any sooner determination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. 6. PAYMENT OF RENT: Checks, batik drafts, or postal money orders shall be made payable to the City of Kenai and delivered to~he City Administration Building, 210 __- Fidalgo Avenue, Kenai, Alaska 99611. 7. CONSTRUCTION APPROVAL AND'SANDARDS: Building construction shall be neat and presentable~nd compatible with its uses and surroundings. Prior to placing of fill material and/or construction o~buildings on a leased area, the Lessee shall submit a plan of proposed development of property to "the~City, which shall be approved in writing for all permanent improvements. 8. DEFt~=ETLT RIGHT OF ENTRY: Should default be made in the payment of any portion of the rent or fees where°due, or in any~f the covenants or conditions contained in the Lease or in any regulaficaps now or-hereinafter in force, then in such event the City shall by written notice give Lessee YTtitty X30} days`to cure such default or defaults, after which if the default is not cuted„fi#t~Crty nfay Terminate the Lease, reenter and take possession of the premises, andremove al] persons therefr-om. r 9. RENT~SCAZATION: In the event this Lease is for a term in excess of five (5) years; the amount of rents or fees specified herein shall be subject to redetermination for increase or decrease based on the percentage rate (set in C.1 above) of fair market value. At each five (5) year interval, the City will have the fair market value determined by a qualified independent appraiser.'IVo increase or decrease in the amount of rents or fees shall be effective, until after thirty (30~days written notice. Fair MarkeC Value is defined as "the highest price estimated in terms of money which a property will bring if exposed for sale on the open market allowing a reasonable period of time to find a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used." This Fair Market Value will be based on the condition of the land on the date of this lease plus the value of improvements, if any, made by the City subsequent to the date of this Lease which would affecC the value of the property. LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVE -Page 3 of 18 (attach A) Lessee: _ 10. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of the application as approved (made a part of this Lease and attached hereto), the terms of the Lease, the terms of the deed under which the land was granted to the City (and any releases pertinent thereto), in conformity with the ordinances of the City and Borough, with Kenai Airport Regulations, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a elation of the Lease and subject the Lease to cancellation at anytime. Failure to substanrially complete the development plan of the land, consistent with the proposed use and termk of the Lease, shall constitute grounds for cancellation. 11. CONDITION OF PREMISES: The prenises zlemised he~in are unimproved and are leased on an "as is, where is" basis. ~' ' l2. UNDERLYING TITLE: The interests transrred, or conveyed by this Lease are subject to any and all of the covenants, terns, or condifiohs contained in the instruments conveying title or other interests to the City. _ 13. RIGHT OF INSPECTION: City shall haveLheright at all reasonable times to enter the premises, or any part hereof, fotthe purposes ofitispection. 14. INDEMNIFICATION AND INSURANCE: Lessee covenants to indemnify, defend, save and hald~dla~ City, its eluted and appointed officials, agents and employees harmless from all actions; suits, liabilities, or damage, or liability of any nature, kind or character, including costs, expenses and attorney's'fees resulting from or arising out of any acts of commission ar 6mi~sion by the Lessee, his agents, employees, customers, invitees, or arising from or out of the Lessee's-occupafoii, or use of the premises demised, or privileges granted, and to pay-`all costs contiected therewith. Lessee, at thecxpen e of Lessee, shall keep in force, during the term of this agreement, insurance issued byresponsible insurance companies authorized to do business in Alaska, in fotn~ kinds and amounts as determined and directed by the City for the protection of City and/or Lessee.:: Insurance requirement hereunder shall be subject to the sole determination of the City. All policies or indorsements thereto shall in all cases where possible name City as Additional Named Insured thereunder and shall contain a waiver of subrogation against he City. All insurance shall`be by a company{corporation currently rated "A-" or better by A.M. Best. Upon approval by City of all insurance required, in the forms, kinds and amounts directed to be procured, Lessee shall deliver all policy originals or duplicate originals and endorsements thereto Co the City for incorporation within this agreement as attachment thereto. In any event, Lessee is not to commence to exercise any of the rights and privileges granted LEASE OF KENAI AII2PORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVE -Page 4 of 18 (attach A) Lessee: under this agreement until. such time as all insurance directed and required to be furnished by Lessee is in full force and effect. Lessee expressly understands and agrees that any insurance protection furnished by Lessee hereunder shall in no way limit its responsibility Yo indemnify and save harmless Lessor under the provisions of this agreement. No policy of insurance shall be cancelled or amended with xespeetto the City without thirty (30) days written notice by registered or certified mail to Eity by the insurance company. Until otherwise directed in writing by the City 1Ylanaggr, Lessee sIII provide certificates of insurance within thirty (30) days of the date hereof ai; follows: - (a) Commercial General Liability, mcluding all operations, property damage, products and completed operaY~ons, andpersonal injury and death, broad- form contractual, with aper-occurrence~7imit of not less than $I 000,000 combined single limit. If this lease autfiorizes theLessee to engage in the sale or the commercial dispensing or storage of aviation fuel, the policy must not exclude overage of the Lessee s fuel handling activities. This policy must name the-City as an additignal~insured. (b) Commercial=Automobile Coveraee with not less than $1,000,000 combined singi~ limit per occurrence. This insurance must cover all owned, hired, and non-owned"motor vehicles used by Lessee. -_ (c) Workers Com~errsafion Insurance. The Lessee will provide and maintain, #or all employees, coverage as required under AS 23.30.045, and, where applicable, any of6er statutory obligations. The policy must waive subrogation against the City. Notwithstanding anything to the contrary, if Lessee fails or neglects to secure required insurance or if said~policy or policies are terminated, altered, or changed in any manner not acceptable to the City,, then and in that event this lease may be cancelled and terminated, without penalty, on five (5) days written prior notice to Lessee. The City may approve aself-insurance program in lieu of the insurance requirements in this section, if the City finds in its sole discretion that such self-insurance program adequately protects the City. The typical amount of insurance coverage required is subject to review and adjustment at the discretion of the City at each five (5) year renegotiation of the Lease. LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVB -Page 5 of 18 (attach A) Lessee: _ 15. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other consideration which are due and unpaid at the expiration of voluntary or involuntary termination or cancellation of this Lease, shall be a charge against the Lessee and Lessee's property, real or personal, and the City shall have such lien rights as are allowed bylaw. 16. EASEMENT GRANTS RESERVED: City reserves the right to grant and control easements in or above the land leased. No such grant or easement will be made that will unreasonably interfere with the Lessee's use of the land, and Lessee shall have free access and use of any and all parking and loading rights, rights of ingress and egress now or hereafter appertaining to the ]eased premises. 17. LEASE SUBORDINATE TO FINANCING REQUIREMENTS: Lessee agrees that City may modify this Lease Co meet revised requirements for Federal=or State grants, or to conform to the requiremenCS of any revenue b9nd covenant. However, the modification shall neither act to reduce the rights or privileges grante,~d the Lessee liy this Lease, nor act to cause the Lessee financial loss. _~ ~ __ _ _ 18. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into the possession and use of~ity wrthout fraud or delay in good order, condition, and repair, excepC for reasonable wear and tear since the 7asfi necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly perrnitted by the City in writing, and free aadclear of all liens and encumbrances other Chan Chose created by and for loans to City Upon the e~"d of the term of this Lease, including any extension or renewal, or any earlier Lamination theteof, title to tiiu buildings, improvements and building equipment shall autorda`iically vest iri City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any! and all ~ove~nmental units in connection herewith. Provided, however,~hat Lessee shall retain title to and remove from the Premises at the Lessor'a sole expense, Any building, other improvement, or building equipment that the City has determiri~d in writing to the Lessor: 1) has exceed its useful life; 2) is damaged beyond reasonable repair, 3) is a ~irndrance to the future use of the Premises; and 4) is of negligible value. 19. AII2CRAFT OPERATIONS PROTECTED: (a) There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface and all improvements approved by the City of the premises herein conveyed, together with the right to cause in said airspace such noise as LEASE OF KENAI AIl2PORT LANDS Lessor: _ OUTSIDE THE AIRPORT RESERVE -Page 6 of 18 (attach A) Lessee: may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace for landing at, taking off from, or operating on the Kenai Airport. (When the City approves plans for improvements pursuant to paragraph 7, the City to the extent of those improvements releases the easement here expressed.) (b) The Lessee by accepting Chis conveyance expressly agrees for itself, ifs representatives, successors, and assigns, that it will not erecCnor permit the erection of any stmeture or object, nor permit the growth of any trees on the land conveyed hereunder, which would be an airport obstruction within the standards established under the Federal Aviation AdministraCion Regul'atns, Part 77, as amended. In the event the aforesaid covenant is breaphed the Cit~%,reserves the right to enter on the land conveyed hereunder and ttr remove the otfend»g structure or object, and to cut the offendingtree, all of which shall he at the expense of the Lessee or its heirs, successors or assigns. 20. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying renf'and performing other covenants, teams, and conditions of this Lease, shall haue the right to quietly"andpeacefully hold, use, occupy, and enjoy the said leased premises, e~tcept that any inconvenience caused by public works projects in or about the leasehold premises shaTlnot be construed as a denial of the right of quiet or peaceable possession. _ =: 21. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, during the term hereof may bee~sne a lien upon or which may be levied by the State, Borough, Ciiy, or any other tax levying body, upon. any taxable possessory right which Lessee may have in or to the pxoperty by reason of its use or occupancy or the terms of this lease, provided however, that=pothing herein contained shall prevent Lessee from contesting any increase in su€~h tax or assessment t~Irot~gh procedures outlined in State statutes. 22. SPECIAL 3~RVICES: Lessee agrees to pay the City a reasonable charge for any speciaTservices or facilities not provided for herein if requested by Lessee in writing, and if the City agrees to_provide such services or facilities. 23. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the Gty shall not be construed or held to be a partner or joint venture of Lessee in the conduct of business on the demised premises; and it is expressly understood and agreed that the relationship between the parties hereto is, and shall at all times remain landlord and tenant. 24. DEFAULT BANKRUPTCY, ETC.: If the Lessee shall make any assignment for the benefit of creditors or shall be adjudged a bankrupt, or if a receiver is LEASE OF KENAI AII2PORT LANDS Lessor: _ OUTSIDE THE AIRPORT RESERVE- Page 7 of I8 (attach A) Lessee: _ appointed for the Lessee or Lessee's assets, or any interest under this Lease, and if the appointment of the receiver is not vacated within thirty (30) days, or if a voluntary petition is filed under Section 18(a) of the Bankruptcy Act by the Lessee, Chen and in any event, the City may, upon giving the Lessee thirty (30) days' notice, terminate this lease. 25. NONDISCRIMINATION: The Lessee, for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of Che consideration hereof, does hereby covenant and agree as a covenant running with the land, that: (a) No person on the grounds of race, color, or f or be otherv over or under shall be rise subjected to excluded from participation in, denied the discrimination in the use of said facilities; (b) In the construction of any improvernent; the furnishing of services thereon, no person on national origin shall be excluded froi2~ parttcpa otherwise be subjected to discrimination; and of race; color, or the benefits of, or (c) The Lessee shall use_the premises in compliancewith all other requirements imposed by o~~ pur~ant to Title 49, ode of Federal Regulations, DepartmenC of Transportation, Subtide'A; C9ffice of the Secretary, Part 21, Nondiscrimination in Federally-assisted Programs of the Department of Transportation-Ef~'eetuation of Title'~I of the Civil Rights Act of 1964, and as said Regulations maybe amended. (d) the event facilities are constructed, maintained, or otherwise operated on the said propexCy described in this Lease, for a purpose involving the provision of stmilat services or benefits, the Lessee shall maintain and operate such facilities and services in comPlian~e with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DepartmenC of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-assisted Programs of Che Depaz-trnenC of Transportation -Effectuation of Title VI of the Civil RighCS Act of 194, and as said Regulations may be amended. 26. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though such declaration was not made. 27. MODIFICATIONS: No lease may be modified orally or in any manner other than by an agreement in writing, signed by all parties in interest or their successors in interest. Any such modification shall require Council approval. LEASE OP KENAI AII2PORT LANDS Lessor: OUTBIDS THE AIRPORT RESERVE- Page 8 of 18 (attach A) Lessee: 28. WARRANTY: The City does not warrant that the property which is the subject of this Lease is suited for the use authorized herein, and no guarantee is given or implied that it shall be profitable or suitable to employ the property to such use. 29. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce reasonable rules and regulations governing the demised premises and the public areas and facilities used in connection therewith. Except in cases of emergency, no rule or regulation hereafter adopted or amended by the City shall become applicable unless Lessee has been given thirty (30) days notice of adoption or amendment thereof. 30. NON-LIABILITY: City shall not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's right hereunder, on account of the exercise of dny such right or authority as provided in this or the preceding section, nor shall Lessee be entitled to terminate the whole or any portion of the leasehold estate herein created, by reason of the exercise of such rights or authority, unless the exert;=se thereof shall so interfere with Lessee's use and occupancy of the leasehold estate as to constitute a termination in whole or in part of this lease by operation of law in accordance with the laws of the State of Alaska and of the United States made applicable to the states _ . 31. FINANCING (a) For the pugpose of interim or`permahent financing or refinancing from time to time of the imgzovements to be placed upon the leased premises, and for no other~trpose, Lessee, after giving written notice thereof to the City, may encumber by_;mortgage, deed of trust, assignment or other appropriate instrument, Lessee's interest in the leased premises and in and to this Lease, provided such encumbrance pertains only to such leasehold interest and does not pertain to or create any interest in CiG~s title to the leased premises. If such mortgage, deed of trust, or assignment shall be held by a bank or other established lending or financial institution (which Cerms shall include an established insurance company and qualified pension or profit sharing trust) and such institution shall acquire the Lessee's interest in such Lease as a result of a sale under said encumbrance pursuant to a foreclosure or other remedy of the secured party, or through any transfereh lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, such lending institution shall have the privilege of transferring its interest in such Lease to a nominee or a wholly owned subsidiary corporation with the prior consent of the City, provided, however, such transferee shall assume all of the covenanCS and conditions required to be performed by the Lessee (including payment of any monies owed by Lessee to the City under Che Lease), whereupon such lending institution shall be relieved of any further liability under such Lessee from any default after such transfer. Such --_ LEASE OF KENAI AIRPORT LANDS Lessor: _ OUTSIDE THE AIRPORT RESERVE -Page 9 of 18 (attach A) Lessee: _ lending institution or the nominee or wholly owned subsidiary corporation to which it may have transferred such Lease, or any other lending institution which may at any time acquire such ]ease shall be relieved of any further liability under such lease from and after a transfer of such lease. (b) A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and be subrogated to any and all rights of the Lessee with respect to the curing of any default hereunder by Lessee. _., (c) If the holder of any such mortgage, or the beneficiary4of any such deed of trust, or the security assignee shall. give the City before any def;fult shall have occurred in the Lease, a written notice containing Che~tame and pest office address of such holder, the City shall thereafter give to such holder a copy of each'notice of default by the Lessee aC the same time as airy notice of default shall lie given by the City to the Lessee, and the City will not thereafteraccept any suri-ender or enter into any modification of this Lease wiihout the prior written consent of the U- ' holder of any first mortgage, beneficial mterestunder a first deed of trust, or security assignee, in this Lease. _ __ (d) )f, by reason of a~ default of the Lessee, either Chis lease or any extension thereof shall be terminated at~lte eleotiotLOf the City prior to the stated expiration therefore, the City will enter into a new Lease with the leasehold mortgagee for the remainder szf tie term, effective as of the date of such termination, at the rent and additional~ent rates, and on the terms herein contained, subject to the (1) Strch.,mortgagee, beneficiary or security assignee shall make written quest Cafhe City for such new Lease within twenty (20) days after the date of such termination and such written request shall be accompanied by a payr~tenC to the City of all sums then due to the City under this Lease. (2) Str'elt mortgagee, beneficiary, or security assignee, shall pay to the City, afthe time of the execution and delivery of such new lease any and a1L~ums due thereunder in addition to those which would at the time of the _.. __.. execution and delivery thereof be due under this Lease but for such termination, and in addition thereto, any reasonable expenses, including legal and attorneys' fees, to which the City shall have been subjected by reason of such default. (3) Such mortgagee, beneficiary, or security assignee shall, on or before the execution and delivery of such new Lease, perform all the other LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVE -Page 10 of 18 (attach A) Lessee: _ conditions required to be performed by the Lessee to Che extent that the Lessee shall have failed to perform such conditions. (e) If a lending institution or its nominee or wholly owned subsidiary corporation shall hold a mortgage, deed of trust, or similar security interest in and to this Lease and shall. thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nonee, or corporation shall desire to assign this Lease or any new Lease obtained from tie City (other than to a nominee or to a wholly owned subsidiary corporation as permitted by the above provisions} to an assignee who will undertake taperftarm and observe the conditions in such Lease required to be performed by the Lessee, the City shall not unreasonably withhold its consent to such assignent-and assumption, and any such lending institution, nominee, or subsrdra shall be relieved or any f-dither liability under such Lease from and after such assignment. If the proposed assignor shall assert that the City is unreasonably withholding its consent to any such proposed assignment, such dispr~te shall be resolved by arbitration. 32. HAZARDOUS ME Lessee agree that each shall comply with . hazardous chemicals and other hazardous hazardous chemicals and other hazardous the lands leased herein. Should a whatsoever, or hazardor of this lease, Lessee slia appropriate City official its own cost, assess-, cap allowable by taw ND HAZARDOUS WASTE: City and laws and regulations concerning 3 shall properly store, transfer and use all not create any environmental bazar°ds on 'ous chemicals or hazardous materials of any kind or nature to ba released by Lessee upon the subject lands during the term ately regprt such release to the City Manager or other ry other agency as may be required bylaw, and Lessee shall, at ,lean up such spilled materials in the most expedient manner City and Lessee agree to hold harmless and indemnify the other from, and to assume all dunes, responsibilities and liabilities at the indemnifying party's sole cost and expense (for payment of penalties, sanctions, forfeitures, losses, costs or damages), for responding to any action, notice, elaim,_order; summons, citation, directive, litigation, investigation or proceeding which is related to (i) failure to comply with any local, state or federal statutes, regulations or ordinances pertaining to hazardous chericals, hazardous materials, hazardous wastes, or any environmental conditions or matters as may now or hereafter be in effect, and (ii) any environmental conditions that arise out of or are in any way related to the condition of the property or activities conducted by the party thereon, unless the environmental conditions are caused by Che other party. The indemnifications of this paragraph specifically include reasonable costs, expenses and fees incurred in connection with any investigation of property conditions or any clean up, remediation, removal or restoration work required by any governmental authority. LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE THE AIRPORT RESERVE -Page 11 of 18 (attach A) Lessee: _ As used herein, "hazardous chemical" means a chemical that is a physical hazard or a health hazard. As used herein, "hazardous material" means a material or substance, as defined in 49 C.F.R. 171.8, and any other substance determined by the federal government, the State of Alaska or City of Kenai, to pose a significant health and safety hazard. As used herein, "hazardous waste" means a hazardous w-as#e as identified by the Environmental Protection Agency under 40 C.F.R. 261, and any otherhazardous waste as defined by the federal government, the State of Alaska or City of Kenai. The covenants and obligations described m the ' article shall survi termination of this lease. 33. COMPLIANCE WITH LASS: Lessee Mall comply with all applicable laws, ordinances, and regulations of public authorities now ot'ereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and ways adjacent.~aereto or any buildings, structures, fixtures and improvements or the use thereof, whether or nel any such laws, ordinances, and regulations which may lie hereafterenacted invol~~ a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless: (a) From the oonsequences of any violation of such laws, ordinances, andlor regulations;Wand (b) From all claims f6r~amages on account of injuries, death, or property datria~eresulting fTOm such violation. (c) Lessee~l'urther agrees it will not permit any unlawful occupation, business, or trade to be conducted on said premises or any use to be made thereof contrary tF? any law, ordinance, or regulation as aforesaid with respect thereto, including zoning ordtn~ices, rules and regulations. 34. CARE OF PREMISES: Lessee, at its own cost and expense shall keep the leased premises, all"improvements which at any time during the term of this Lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term. of this Lease. 35. SANITATION: The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. The premises of the LEASE OF KENAI AIRPORT LANDS Lessor: _ OUTSIDE THE AIRPORT RESERVE -Page 12 of 18 (attach A) Lessee: _ lease shall be kept in neat, clean, and sanitary condition, and every effort shall be made to prevent the pollution of water. 36. LESSEE'S OBLIGATION TO REMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics', laborers', or materialmen`s liens obtainable or available under the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to Lessee or claimed to have been Furnished toL.essee or to the Lessee's agents, contractors, or sublessees, in connection with work of an~~hara~ter performed or claimed to have been performed on said premises or improvements by or at the direction or sufferance of Lessee, provided, however, Lessee shall have the right to'provide a bond as contemplated by Alaska law and contest the validity or amount of=any such lies or claimed lien. On final determination of such lien or such claim for lien, Lessee will immediately. pay any judgment rendered with all proper costs and charges and shal_I=have such lien judgment satisfied at Lessee's own expense. _ 37. CONDEMNATION: In the event the_ leased premises or any part thereof shall be condemned and taken for a public or a quasi public use, then upon payment of any award or compensation arising from such condemnation, there shall be such division of the proceeds, such abatement in rent payable during the term or any extension of the-term. hereof, and such other adjustments as the parties may agree uporvas-being just and~quitable under all the circumstances. If the City and Lessee are unable to dgree~vit(iin thirty (30) days after such an award has been paid into Court, upon what d~vision,=annual abatement in rent, and other adjustments are just and equitable>.the dispute sha71°be determined by arbitration. 38. PROTECTIONOF SUBTEN~INTS: To protect the position of any subtenant(s) hereafter gi~oge~ly obtaining ally interests in the leasehold estate granted Lessee hereunder, City agrees that tnshe went i5f~lie cancellation, termination, expiration, or surrender of this Lease (the ground leasej, the City will accept the Subtenant, its successors and assigns, as its Lessee for a period equal to the full t3nelapsed portion of the term of the sublease, including any extensions or renewals thereof, not exceeding the term of this Lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsist~akwith any of the terms and conditions of this Lease, provided such subtenant shall make full and complete atonement to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as tl~ugh such sublease was originally made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust, or security assignment to which such leasehold estate is subject, except the payment of rent under the ground lease and the payment of any debt service under any such mortgage, deed of trust, or security assignment. LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE TIIE AIRPORT RESERVE -Page 13 of 18 (attach A) Lessee: _ 39. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for herein. 40. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the laws of the SCate of Alaska. 41. NOTICES: (a) Any notices required by this Lease shall be in be duly given only if delivered personally or mail in a prepaid envelope addressed to the parties at h opening paragraph of this lease unless such ad€Tre sub-paragraph (b) hereafter, and in Chat case'"shall changed. __ _ shall be deemed to by certified; or registered mail ~sldress set forth in the gas been changed pursuant to the most recent~ddress so Any notice so mailed shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. The City shall also mail a=COp~af auy notice given to the Lessee, by registered or certified mail, to any leasehold lender (mortgagee,'beneficiary of a deed of trust, securiCy assignee) who shall have given the Crfy notice of such mortgage, deed of trust, or security..ass3~nment. (b) Any such addressed may be changed by an appropriate notice in writing to all other parties affected provided such change of address is given to the other parties by the ineatas outlined in paragraph (a) above at least fifteen (15) days prior to thTvinQ of the particular notice in issue. __ _ 42. RIGHTS OE_ORTGAGEE OR LIEN HOLDER: In the event of cancellatron~or forfeiture of a lease for cause, the holder of a property recorded mortgage, deed of trust, condititrnal assignment or collateral assignment will have the option to acquire the Lease for the unexpiredterm thereof, subject to the terms and conditions as in the original lease. 43. ENTRY AND RE-ENTRY: In the event that the Lease should be Germinated as hereinbefore provided, or by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the Lessee during said term, the Lessor or its agents, servants, or representatives may, immediately or any time thereafter, re-enter, and resume possession of said lands or such part thereof, and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefore. No re-entry by the Lessor shall be deemed an acceptance of a surrender of the Lease. LEASE OF KENAI AIRPORT LANDS Lessor: _ OUTSIDE THE AII2PORT RESERVE -Page 14 of 18 (attach A) Lessee: 44. RETENTION OF RENTAL: In the event that the Lease should be terminated because of any breach by the Lessee as herein provided, the rental payment last made by the Lessee shall be retained by the Lessor as partial or total liquidated damages for said breach. 45. WRITTEN WAIVER: The receipt of rent by the of any breach of the Lease by the Lessee, or any default on the part of t or performance of any of the conditions or covenants of the Lease shall waiver of any provisions of the Lease. No failure on Che part of the Lei covenant or provision therein contained, nor any waiver of any right th unless in writing, shall discharge or invalidate such covenants or peovi of Che Lessor to enforce the same in the event of any subset by the Lessor, of any rent or any other sum of money a_fter`tl the term therein demised, or after the giving of the Lessor of termination, shall not reinstate, continue, or extend the resuh destroy, or in any manner impair the efficacy of any such nti been given thereunder by the Lessor to the Lessee prior to tl money or other consideration, unless so 46. BUILDING AND accordance with the building and zoning Failure to do so shall eonstitut~siefault. 47. FIL2 prevent, and take all neces with all laws, regulations, within the area whereinGth 48. All coal, oil, gas and other minerals and all-xleposts of stone or gravel valuable for extraction or utilization are excepted from the operation of a surface Lease. Specifically, the Lessee of the surface rights shall not sell or remove for use elsewhere atv~'timber, stone, gravel, peat moss, topsoil or any other material valuable for building;or commercial purposes; provided, however, that material required for the development of the leasehold maybe used if its use is first approved by the City Manager. 49. MUTUAL CANCELLATION: Leases in good standing maybe cancelled in whole or in part at any time upon mutual written agreement by Lessee and the City Council. 50. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be used for an unlawful purpose. to in writing ,os;_with knowledge essee`in observance be deemed to be a to enforce any rd~t by the Lessor, s, or affect the right or in anymanner, of eunder to effect such erm therein demised, or of termination as may have :ceipt of any such sum of signed by the Lessor. :d lands shall be utilized in regulations of said authority will take all reasonable precautions to ive or uncontrolled fires and comply sated and enforced by the City for fire protection are located. LEASE OF KENAI AIRPORT LANDS Lessor: OtTTSIDE THE AIRPORT RESERVE -Page 15 of 18 (attach A) Lessee: 51. APPROVAL OF OTHER AiJTHORITIES: The issuance by the City of leases does not relieve the Lessee of responsibility of obtaining licenses or permits as may be required by duly authorized Borough, State or Federal agencies. 52. REQUEST TO PURCHASE: If the tract of land proposed to be sold is leased land where the lease sets forth a development schedule, the Lessee may request the sale of said land at not less than fair market value. The current Lessee obtains the riglt[ to request a sale only after, to the satisfaction of the City Manager, completed development as detailed in the development schedule that has been incorporated into the lease agreemeht: The decision whether or not to sell the property rests within the sole discretion of the City.,... 53. NOTICE OF CONSTRUCTION: writing three days prior to commencing any construction upon the property. Lessee agrees to assist in the posting,.; maintenance of the notice upon the property during cons of the Lessee's failure to notify the City as provided aboc against any materialmen's liens as defined in AS 34.35.0. upon the premises. LN WITNESS WHEREOF, the year stated in the individual CITY OF KENAI By: Rick R. Koch City Manager LESSEE: By: their hands, the day and (If Lessee is a Corporation) ATTEST: to notify the City in in excess ofSl_OOC of non-resnonsiblity and Lessee agrees that in the event shall indemnify the City ar7se as a result of construction LEASE OF KENAI AII2PORT LANDS Lessor: OUTSIDE TIIE AIRPORT RESERVE -Page I6 of 18 (attach A) Lessee: _ Name Title STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this _ day of _ ,Title: , of being personally known to me or having produced satisfai appeared before me and acknowledged the voluntary and instrument on behalf of said corporation. Public for STATE OF ALASKA THIIZD JUDICIAL THIS IS TO CERTIFY Manager of the ~~~~fe satisfactory evfderce ofi+ authorized execution of the of of the foregoing daq of , 200_, RICK R. KOCH, City being personally known to me or having produced appeared before me and acknowledged the voluntary and nstrument on behalf of said City. Notary Public for Alaska My Commission Expires: LEASE OF KENAI AIRPORT LANDS Lessor: _ OiJTSIDE THE AIRPORT RESERVE -Page 17 of 18 (attach A) Lessee: _ Approved as to lease form by City Attorney: Approved by Finance Director: Lease Carol U:\My D LEASE OF KENAI AIRPORT LANDS Lessor: OUTSIDE THE AIItPORT RESERVE -Page 18 of 18 (attach A) Lessee: r Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2007-06 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE LEASE FORM FOR LEASES OF AIRPORT RESERVE PROPERTY. WHEREAS, the Kenai Municipal Airport is the owner and lessor of a significant amount of property within the City of Kenai; and, WHEREAS, the City of Kenai has undergone as supplemental planning assessment in order to update airport operations including: planning, finances, accounting, management, and leasing; and, WHEREAS, as part of the supplement planning process the Airport Reserve was created; and, WHEREAS, the procedures for the leasing of airport reserve lands is contained in KMC 21.10; and, WHEREAS, KMC 21.10.150(a)(3) states the airport reserve lease form should be approved by the city council by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the airport reserve lease form as shown on Attachment A is hereby approved by the City Council. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk KENAI MUNICIPAL AIRPORT LEASE OI' AIRPORT RESERVE LANDS TI-IIS LEASE AGREEMENT entered in o thi day of , 200_, by and between the CITY OF KENAI, 210 Fidalg Avem~ ,Kenai, Alaska 996 1 1-7794, and individually, whose address is ("Lessee"). t~ For the purposes of this Lease the followin 1. Airport -the Kenai. Municipal. Airpo lanes, water taxiways, and all City-owned re Reserve as defined in KMC 21.Od.010-020. 2. Airport Manager -the official. t h authority and responsibility of managi an Manager" includes Chat person's authori d of Alaska. ali the r w s, taxiways, aprons, water ~ted withii the: oundai7es of the Airport the y anager of the City has delegated the recting eetivities of the Airport. "Airport 3. City -the City of Kenai, Alaska, a h~ 4. City Manager -the official hom responsibility of managing and dir ctin ll 5. Contamination - the unpe itte ; e 6. Environmental Law -any app ca e ordinance, code, permit, order, decision, 'u environmental matters, including littering i 7. FAA -the abbreviati n for th Fede 8. Hazardous Substance - ny u to hazardous waste, Hazardous Sub tan e, z petroleum, petroleum product, or o . 9. KMC -the abbreviation for the`~eij 10. Permanent Improvement - a fixed ac the`Ke~a`~ Cil~ Counc"il has delegated the of anv r~'le~s~d Hazardous Substance. are 1, statA, oocal statute, law, regulafion, of any ~ rnmental entity relating to that d med under an Environmental Law as ~dous to ',al, toxic, pollutant, contaminant, Code. to land that is not temporary or LEASE OF AIRPORT LANDS Page 1 of 30 (attachment to ... . city: Lessee: portable, including a building, building addition, gravel fill, paving, retaining wall, storage tank, and well. a. PREMISES: In consideration of Lessee s the covenants of this Lease, the City leases tot e the following described property ("Premises") i Distt7ct, State of Alaska and located on the Airpo; b. NO WARRANTY: Except as may pyv warranties, expressed or implied, concernin the soils, wetlands, access, and suitability or p ofitaF this Lease, its environmental condition, or th pr on, and under the surface. The Lessee takes th warranty, subject to any and all of the covenants, to the Premises. AR I t of the rents and performance of all and the Lessee leases from the City, ti Recording District, Third Judicial ;d in is ase, the City makes no specific lition o th remises including, survey, for any u e i luding those authorized by or absen o azardous Substances in, is on an "a 's' asis and without rs, a conditio affecting the City`s title a. AUTHORIZED USES 1. USE OF I following purposes only: City to use the Premises for the 2. CONTINUOUS O ER the Lessee will operate its business n period of closure over 15 consecutive a' the term of this lease. The Lessee will business on the Premises for more than 1 the closure and the date on w ch e Le; apply to any period during w ich the or directive of the City, or as resu~of on the Premises due to fire or to l s b. RIGHTS RESERVED TO 1. RIGHT TO GRANT TO\O any rights and privileges not specs rights and privileges granted to the Page 2 of 30 (attachmene to ... . s t approves otherwise in writing, c tinuous basis, uninterrupted by any e ys within any 12-month period of itte lice before closing the Lessee's days. The notice must state the reason for for business. This provision does not o crate its business as a result of an act ~i ort or loss of the Lessee's buildings The City reserves the right to grant to others led to the Lessee on an exclusive basis. The his Lease are the only rights and privileges city: Lessee: granted to the Lessee by this Lease. 2. EASEMENTS: The City reserves the right to make grants to third parties or reserve to The City easements or rights of ay Chrough, on, or above the Premises. The City will not grantor reserve any easeme t right of way that unreasonably interferes with the Lessee's authorized uses of the remr es. 3. INGRESS, EGRESS Ai` ingress to and egress from the Premises including buildings, for the purpose of i Except in the case of an emergency, coordinated with the Lessee Co minim the Premises. 4. RIGHT OF FLIGHT: Th -e is ereby re and assigns, for the use and benefit of t e b io, a right aircraft in the airspace above the surface f t e Pre ises include the right to cause in the airspace an noise nher aircrafC used for navigation or fl t through e a spae~ operation on the Airport. JS ECTION: The City reserves the right of the ht to enter any part of the Premises, c n environmental testing at any time. do s a d environmental testing will be ;rferen e 'th the Lessee's authorized uses of c. PROHIBITED USES Unless specifically authorized by this Lease prohibited: n 1. Any use of ifhe Prenl~ses othd{ than 2. Any use of tl~l?F~m~ses'~that is Airport regulation. \\ )) ~~ 3. The outside parts, non-operational up solid waste or debris. 4. The disl?c by the Lessee, including waste. 5. The stripping, without the prior written app' ve to the City, its successors >f ig for the passage of Thy ublic right of flight will nt in the operation of any or landing at, taking off from, or Lease, the following are in this Lease. of a City Ordinance or an s o`Njunk, salvage aircraft or vehicle or damaged equipment or material, or `Airport of waste materials generated slash, overburden, and construction any material from the Premises LEASE OP AII2PORT LANDS City: Page 3 of 30 (attachment to .... Lessee: 6. Erecting structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Aizp~grt. 7. Any use or activity that is TERM & a. TERM: The term of this Lease is for to the day of , 200_. b. HOLDOVER: If the Lessee holds ver a the expiration, cancellation or termination o thi extension of the team of this Lease, but only c at rent payments accepted by the City. The Lessee will continue during Che month-to-month tenancy Lessee's holdover with ten (10) days' ance wr a. RENT: The rent for the Premises is $ ~ City pursuant KMC 21.10.100 and subject to applicable sales tax. The rent shall e p able ant the term of this Lease. All payme is requ ed by annual rent exceeds $2,400, the ssee - y, poi rent in equal monthly installments, ay bl in d~ term of this Lease and thereafter at m nt int from annual Co monthly shall result in t e ty r had the conversion not taken place. b. RENT PRORATED: basis of the rent payable and c. ADDITIONAL RENT: agrees to pay to the appropriate (I) Taxes pertaining to the any v in the Page 4 of 30 (attachment to ... . applicable law or regulation. the day of , 200_ remains in os ession of the Premises after :a ,the hol g ver will not operate as an m nth-to-m th enancy, regardless of any i igati s for per ance under this Lease Che C y or Lessee may terminate the r, ear, as established by the z m t unde Article V of this Lease, plus t y in a vance of the first day of each yeas- of s Leas m st be made in U.S. dollars. If the ~ 'tten ' to the City, choose to pay the ice n r b ore the anniversary date of the s. c version of the payment schedule ving I s s ent than it would have received one (I) year shall be prorated on the vious to the prorating. 1 in (a) of this Article, Lessee and charges as follows: of the Lessee. City: Lessee: (2) Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthly or annual basis. (3) All taxes and assessments levied i/r flee future by the City, as if Lessee was the legal owner of record of the Premises. / d. PAYMENTS: The Lessee shall make ecks, ank drafts, or postal money orders payable to the City of Kenai and deliver paymen to Ci of Kenai, Finance Department, 210 Fidalgo Avenue, Suit 200, Kenai, Alaska 99611-7 r a other address the City may designate in writing to the Lessee. e. INTEREST: Beginning the day aft pay ent is due, all npaid rents, charges, and fees required under Chis Lease will accrue inter t at t rate of eigh pe ent (8.0%) per annum. Interest on disputed amounts will not be ch• ed o th~,Lessee i e ispute is resolved in the Lessee's favor. f. LATE PAYMENT PENALTY: In additio to an interest payable under Provision (e) of this Article, each time the Lessee fails t ay any ren or e by the date required in this Lease, the Ciry will charge, and the Lessee sh I pa an admi 'sC five penalty of ten percent (10.0%) of the amount due and unpaid. g. COURTESY BILLINGS: Lessee ac n le es that y filling statement issued by the City is provided only as a courtesy. The Less r blr ated to a all rents and fees when due, regardless of whether or not the Le~eee receives 'ng tateme t from the City. h. LIEN AGAINST LESSE Any and unpaid at the expiration, term natio~ Lessee's property, real or personal. i. PAYMENT OF CTTY'S COST costs, and attorney fees City may incur protect this Lease or City's ri is der to environmental compliance bankru the Premises, or improveme s or rsc payment within 30 days of the at~ provision. j. PAYMENT FOR. SPECIAL ~ for any special services or facilities the obligated by this Lease to provide and fee,~r oer consideration which is due on r Lease will be a lien against the The ssee will all reasonable actual expenses, h or wit ut for al aotion, to enforce, defend, or is ea inc ding any expense incurred with respect or a o edr that involves the Lessee, the Lease, 1 prop y n remises. The Lessee will make notice o Ci y of any amounts payable under this LEASE OF AIRPORT LANDS Page 5 of 30 (attachment to ... . Lessee agrees to pay the City a reasonable fee to perform, which the City is not otherwise .e see requests from the City in writing. City: Lessee: ARTICLE V ADJUSTMENT OF RENT AND FEES a. RENT OR FEB ADJUSTMENT: Beginn gin 2007 and, thereafter, at intervals of approximately five (5) years, the City shall, in its e discretion, adjust the rent or a fee payable by the Lessee under Article IV or other provisio oft 's lease. The amount to which the City increases or decreases any rent or fee shall be e Cablish din accordance with KMC 21.10.100 and 21.10.160. Any rent change by the City sh II be b sed on the fair market value of 1. The Premises in its condition on 2. Any improvements made by not reimbursed by the Lessee. No rent or fee change shall b of written notice to the Lessee. If the Les market rent far the Premises, the Lessee KMC 21.10.160. b. CITY-CONSTRUCTED IMPR~ or in connection with, the Premises sha of establishing the rent under (a) of this reimburses the City for the City's const a. INVALID WITHOUT CI Y'S a security interest in, by grant or t lip or any improvement on the Premises assignment, sublease, or security intere bearing the original, notarized signatur documents for the City's con pt re document may not be constr d as th interest. All provisions in th Lease: Lessee. ~ ~ b. NO WAIVER OF CONSENT: security interest will not waive the re ~ other assignment, sublease, or security c. ASSIGNEE /LESSEE sc to LEASE OF AIRPORT LANDS Page 6 of 30 (attachment to ... . date stated in Article III; plus to that date, the cost of which is 130 d s ter the date of the City's that any ha ged rent exceeds the fair ~ the rent., , nge to the City under vements constructed by the City on, a art of the Premises for the purpose ~'~ a a condition of this lease, nt~to MC 21.10.110. T: he s'~se~i may not assign, sublet, or grant whol or ny part of this Lease, the Premises, written o ent of the City. Any proposed written a ust be submitted to the City ~i The ssee may submit unsigned draft ver, he City's conceptual approval of a draft n to a assignment, sublease, or security ~d n h assignees and sublessees of the s con~e'tt to one assignment, sublease, or r the Lessee to obtain the City's consent to any An assignment must include a provision stating ? City: Lessee: that the assignee accepts responsibility for all of the assignor's (Lessee's) obligations under this Lease, including environmental liability and responsibility. However, unless the City specifically releases Che Lessee in writing, the City may hold the Lessee responsible for performing any obligation under this lease which~n assignee fails to perform. d. OCCUPANCY BEFORE CITY CO the Premises before the City consents to the i assignee or sublessee may not occupy or sublease in writing. e. CONFLICT OF PROVISIONS: In the e~ assignment or a sublease, the terms of this Lease f. LESSEE NOT RELIEVED OF OBL{TG does not relieve or otherwise alter the Less~/e's g. SECURITY ASSIGNMENTS conflict between this Lease and an 's consent to any sublease is Lease. 1. Subject to the requirements of (a) f fhis A icle VI, th[,essee may assign a security interest in this Lease for the purpo of in rim or permanent financing or refinancing of the Lessee's imp o menu on e remises, and for no other purpose. The security interest may be in e of a m g Qe, deed of trust, assignment or other appropriate instrument, provided A. the security interest pertains d~ly~ the Les'~ee'~ leasehold interest; B. the security intereet~does not ~~,ih, tour create~"any interest in City's title to the Premises; and ~ ~ ~/ C. the documents ~rovid~tg fdf the sedltrity~it3t~st are acceptable to the City. Z. If the assignment of a c 't in ~ rest to hi the City has consented shall be held by an established lending o fi anti institufi ncluding a bank, an established insurance company and qualified nsion o rofit s ring trusC, and the lending institution acquires th Le e's inte st his ase as a result of a foreclosure action or other remedy of the s cured p y, or t o ny ansfer in lieu of foreclosure, or through settlement of r ari ' g t of a p r contemplated foreclosure action, the lending institution ay a fe 'ts inte st ' this Lease to a nominee or a wholly owned subsidiary torpor io wi th pri or rit n consent of the City, provided, the transferee assumes all of th co en is n d eo 'ions required to be performed by Che Lessee (including payment o n ie owed by Lessee to the City under the lease). In the event of such a transfer, the n ~n in itution shall be relieved of any further liability under this Lessee. LEASE OF AIRPORT LANDS Page 7 of 30 (attachment to ... . City: Lessee: 3. A holder of a security interest in this Lease consented to by the City shall have, and be subrogated to, any and all rights of the Lessee with respect to the curing of any default of this Lease by Lessee. 4. If, before any default has occur this Lease consented to by the City giv office address, the City shall. thereafter A. by regular U.S. mail, send to same time as the City gives notice of de B. not accept any surrender o E Che prior written consent of the hold r, withhold.. Lease, the holder of a security interest in V a written notice of the holder's post into t h the 5. The City will enter into a new 1 set interest consented to by the City, if the expiration due to a default by the Lessee. term of this Lease and shall be ctive as o grant of the new lease shall be bje to the A. The new lease shall be B. The new lease shall. be for Lease; C. By no later tha Lease, the security holder together with payment of under this Lease. D. The security delivery of such new 1 ase would at the time oft e exe such termination, an 'n adi attorneys' fees, to whic th) E. The security ho: all the other obligations of perform them prior to the f the a copy of each notice of default at the ~jessee; and lion of this Lease without not unreasonably delay or rises it the holder of a security this e prior to its normal ~e shall be for the remainder of the nation of this Lease. The City's conditions: Lease is terminated; rent, and covenants as this h (2 "') day of wing the termination of this a writt n re u o the City for the new ]ease, i~onal re a of er sums then due to the City de hall pay the Chfy, at the time of the execution and and 1 s du hereunder in addition to those which on an el e th of be due under this Lease but for thereto, an re ~ able expenses, including legal and ty s all hav be n subjected by reason of such default. ,fo • the execution of the new lease, perform this ease to the extent the Lessee failed to Lease. LEASE OF AIRPORT LANDS City: Page 8 of 30 (attachment to .... Lessee: 6. A holder of a security interest consented to by the City that takes possession of this Lease or enters into a new lease with the City shall noY be released from the obligations and liabilities of this Lease or the new lease unless the holder assigns its leasehold estate to an assignee who is fina cially capable and otherwise qualified to undertake to perform and observe the co i ~ ns of this Lease or the new lease and the City consents to the assignment. The Ci 's c sent will not be unreasonably withheld. If the security holder asserts that the City i unrea onably withholding its consent to a proposed assignment, the dispute shall e resol ed by arbitration. MAINTENANCE, UTILITIES a. MAINTENANCE 1. At no eosY to the City, the the Premises clean, neat and prey the Pre ise and all improvements on ably dete i, ed by the City. 2. At no cost to the City, the Premises as may be neces and the Lessee's use of the Pr 3. The Lessee shall comply c promulgated for the promotion of the Premises in a clean and s vita prevenC the pollution of wa er. 4. The Lessee agrees Airport Manager regardin Airport by the Lessee. for all maintenance and services at ;ee's compliance with Chis Lease ons o finances of the City that are no cost he City, the Lessee shall keep td contro activities on the Premises to r allk~ecisi~5d directions of the City's and o r on f the Airport, and the use of the b. UTILITIES Unless specifically provided~therwt in provide for all utilities at the remises ~ see shall, at no cost to the City, the Lessee's use of the Premises. c. SNOW REMOVAL 1. At no cost to the City, th Premises. The Lessee shall dis writing by the City or provide si Premises in accordance with all °sp~itsible for snow removal on the in anoff-Premises location approved in storage within the boundaries of the ~leral and state laws. At the request of the LEASE OF AIRPORT LANDS Page 9 of 30 (attachment to ... . Lessee: Airport Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee's plan by the Airport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan. n 2. Lessee shall not deposit snow on maneuvering surface provided for comrtl approval of the Airport Manager. taxiway, safety area, or other aircraft- others without the prior written 3. Lessee agrees to not allow an cause interference with adjoining lea; a. OPERATIONS ON THE AIRPORT: 'F employees, guests, contractors, sublessees, and authorized under this Lease shall do so in a may protection of public health and the envi o1Nnmen~ the Premises. snow on Che Premises that would r users of the Airport. VIII will ensu tat the Lessee, its t perform y activity or function surer the safety of people, the fety and integrity of Che Airport and b. LESSEE'S CONTROL AND 1. The Lessee will assume full co3~t. City for the activities of the ssee, the else acting by, on behalf of or a er the the Premises. sibility as between Lessee and and employees, and anyone Lessee on the AirporC, including 2. The Lessee will i malfunction or other occ public health or the envn c. RADIOINTERFEREC .The device that interferes with an Bove e the cause of the interference elim~,nat d. WILDLIFE: The Lessee ck~ an airport constitutes a significant za Premises clean of fish slime, fish wa e, ~ wildlife. The Lessee accepts full respo take all reasonable measures to prevent a LEASE OF AIRPORT LANDS Page 10 of 30 (attachment to ... . the tt of any condition, problem, :ns th sa ty of people or Che Airport, harm to ;tv or i e rity of the Premises. the use of any machine or receiver, or navigation aid until ~ centration of birds or other wildlife on tions. The Lessee agrees to keep the rterial that might attract birds or other ain the Premises, control operations, and of birds or other wildlife on the Premises. Lessee: e. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking space on the Premises for Lessee's business or activities, or confine parking to such other places on the Airport as may be approved or designated in writing by the Airport Manager. AL a. HAZARDOUS SUBSTANCE 1. The lessee will conduct it b compliance with all environmental on the Premises, the Lessee agrees procedures for safely storing, dispe in accordance with all applicable fe 2. Lessee will promptly give the City relating to the presence of a Hazardous Su' operations on the Airport. The e ee will proceedings. local on the Premises in rrdous substances are handled personnel and adequate alline Hazardous Substances ~roceedirl~`to abate or settle matters the Premises or from Lessee's City to participate in any such b. ENVIRONMENTAL If Contamination of the Premises or other pro rr~ Hai Lessee's operations on the Premise e Lessee r r de n any and all claims, judgments, da ages, enaltie fi es, co but not limited Co, sums paid in se dement f claim attorn fees, which arise during or after t e to f t is Leas as indemnification of the City by Less e i cl es but is t with any investigation of site conditi s ny leanup, n work required by any federal, state, or ca gov mental Substance being present in the soil or gro dwater under affected by the Contaminatior~~ Substance occurs from the defend, and hold harmless from liabilities, or losses, including, ees, consultant fees, and expert r of such Contamination. This ed to, costs incurred in connection Nation, removal, or restorative ncy because of a Hazardous e Premises or other properties c. REMEDIATION 1. In the event of a z immediately notify the Cit and act, promptly, at its sole clean up the spill area, and r otherwise comply with the a on the Premises, the Lessee will ment of Environmental Conversation n the spill, repair, any damage, absorb and to a condition satisfactory to the City and of any environmental law. LEASE OF AIRPORT LANDS City: Page 11 of 30 (attachment to .... Lessee: 2. In addition to any notices required by Chis Lease, the Lessee will immediately notify and copy the City in writing of any of the following: A. any permit, enforcement, ~ regulatory action instituted, com e Environmental Law. B. any claim made or threa ene from the Lessee's operations aut ~ contribution, compensation, loss or from any Hazardous Substan in, C. any report made by, o b~ agency arising out of or in c nnect' removed from the Premises inclu asserted violations. 3. Remediation and restoration of state and federal regulations and must authorities. up, lien, removal or other governmental or for threatened pursuant to an > any person against the Lessee or arising ;d this Lease, relating to damage, suiting, from, or claimed to result o un r the Airport; or ~If of, he ssee to any snvironmentai with an zard~ous Substances in, on, or any com ai s, notices, warnings, or areal~Irst meat all applicable ents of all. governing regulatory f. ENVII20NMENTAL AUDIT The Lessee will provide the City with all in s ah e data, t t r ults, reports , and any other information gathered or analyzed as part of or 'n ti to any vironmental Assessment, characterization or audit on the Pre es or the i C t Lease# performs or causes to be performed after the starting date o this ease. Th L ssee 11 submit the data, result, report or information Co the City within 60 ays fol wing th date o ich it becomes available to the Lessee. g. RELEASE OF LESSEE The City releases the Lessee from liabilit to the Cr for C tamination and the presence of Hazardous Substances that ex'ste rior tot e c me ement date of this lease unless caused or materially contributed to by t e Less , h. SURVNAL OF The obligations and duties of the cancellation, termination or expi~ LEASE OF AIRPORT LANDS Page 12 of 30 (artac6menr to .. , . IX of this lease shall survive the City: Lessee: ARTICLE X INDEMNIFICATION & INSURANCE a. b. INDEMNIFICATION 1. The Lessee will indemnify, save agents, and employees from and against administrative actions, claims, awards, u relief or penalties of any nature or kind t property damage, personal injury, death, or any other injury or harm. This ind r sums paid in settlement of claims, at o costs and expenses, directly or indir ctly Lease as it relates to the Lessee, th Less m ss, and defend the City, its officers, y an all liabilities, losses, suits, ;me ts, fines, demands, damages, injunctive ie fu extent of the loss or obligation for I f' n any regulation or grant agreement, is do o e City by the Lessee shall include fees, co su ant fees, expert fees, or other activities o nected to or on account of this t o elating to the Ahport, or any I ees, agents, contractors or to, d of limited by, the act or omission by the Lessee; or by y fits sublessees. These indemnity obligation ar i Lessee's obligation to provide insurance, n termination of this Lease. 2. The Lessee shall give th~ matter affecting the City to whic any letter by an attorney on behal notice or complaint by any regula to participate cooperatively in the such matter, without relieviM the 3. As to any amount respect to which an actor Paragraph 1 of this section, e to the principles of comparati f apportionment according to co City shall seek in good faith to ac fault as between them Iv This Lessee shall not be Lease. INSURANCE: At no the term of this Lease, insurance o he` specific limits are set, they will be th r contains higher limits, the City will be the time insurance in obtained by the L rated "A-" or better by A.M. Best. The ive th~~cviration or earlier tic of any suit, claim, action or other a ve, may apply, together with a copy of Want, an complaint filed in court, and any The Ci s all have Che right, at its option, settle e- t negotiations regarding, any y o its obh ations under this provision. for ersona inry or property damage with to Cit is a e cause, notwithstanding LANDS Page 13 of 30 (attachment to ... . the it halt reimburse each other according tbility o third party is subject to ult and t is provision, the Lessee and the -' dicial greement as to apportionment of me of liability between the City and the ~g is o ny person who is not a party to this ee will obtain and keep in force during tired by this provision. Where limits. If the Lessee's policy to the extent of the higher limits. At shall be by a companylcorporation of insurance are required with the City: Lessee: following minimum amounts: 1. Commercial General Liability, including Premises, all operations, property damage, products and completed operatio ,and personal injury and death, broad-form contractual, with aper-occurrence limit o n t less than $1,000,000 combined single limit. If this lease authorizes the Lessee o en ge in the sale or the commercial dispensing or storage of aviation fuel, t polic must not exclude of the Lessee's fuel handling activities. This policy must n me the ity as an additional insured. 2. Commercial Automobile combined single limit per occurrence 7 non-owned motor vehicles used by tl~e ll 3. Workers for all employees, coverage as n other statutory obligations. The 4. The Lessee will form of an insurance policy or premiums have been paid, shop All insurance required by this 1 days prior to any termination, c 5. If the Lessee's immediately, upon written the Premises. The Lessee il: the Lessee has obtained c e Lease. not less than $1.,000,000 mst cover ail owned, hired, and The es e will provide and maintain, 23.30. 5, d, where applicable, any subroga 'on gainst the City. the ity w' h proof of insurance coverage in the ate o 'ns ance, together with proof that the Cypes a netary limits of coverage secured. ust pro 'de hat the City be notified at least 30 omi or mate ' I ange in the insurance coverage. franc c ra lapses`gr~is canceled, Lessee will by the i al 11 oper`~tions on the Airporton the Airport, including resume ation ntil the City receives evidence that is~rance c verage,Ine ing the requirements of this 6. The City may, t i e val . of not 1 s an five years from the beginning date of the term of this Lease an u on tten noh e o Lessee, revise the insurance requirements required under this ase. Cit 's date ination to revise the insurance requirements will be b se n the ri s five the Lessee's operations, any insurance guidelines adopted by the Cit and an eh n in plicable law. 7. If the Le se su ea s all o an portion of the Premises under the provisions of this Lease, e ss e 'll req ' e e sublessee to provide to the insurance coverage required of the Le e un r is Artt X. LEASE OF AIRPORT LANDS Page 14 of 30 (attachment to ... . Lessee: AxTaCLa: xa LAWS & TAXES a. COMPLIANCE WI'T'H LAW: Lessee and regulations of public authorities now or he Premises or the sidewalks, alleys, streets, and structures, fixtures and improvements or the u ordinances, and regulations which. may be her. part of the governmental body enacting the say harmless: comply with all applicable laws, ordinances, in any manner affecting the Airport, the a 'acent to the Premises, or any buildings, reo ,whether or not any such laws, en cted involve a change of po]icy on the ,ess agrees to hold City financially (1) From the consequences of regulations; and (2) From all claims for damages resulting from. such violation. b. UNLAWFUL ACTIVITY: The business, or trade to be conducted on t including zoning ordinances, rules and c. LICENSES AND PERMITS: The~es~ pay all taxes and special assessments lawful i and charges assessed under applicable law. challenging any Caxes or special ass~ments Co d. LITIGATION: The KM the State of Alaska will govern i continues after exhaustion of ad of the State of Alaska, in Kenai, e. LESSEE TO PAY TAXES: Less sl during the term of this Lease ay come a i Borough, City, or any other t x levyi body, may have in or to the Premis s or i ro eme occupancy or the terms of this a p vi ec prevent Lessee from contesting a i cr se ' ordinance, or regulation.. f. PARTIAL INVALIDITY: If declared by a court of competent jm9 LEASE OF AIRPORT LANDS Page 15 of 30 (attachment to ... . ordinances, and/or of or property damage notrmit any unlawful use, occupation, qtr to any law, ordinance, or regulation, ~1 obta~i a necessary licenses and permits, ~~d upon e emises, and pay other fees irl~this Lea e revents the Lessee from ted thereunder, and the laws of and City. If a dispute must be brought in the courts it pa all lawful taxes and assessments which, won which may be levied by the State, po to ble possessory right which Lessee on e r ises by reason of its use or ho ev , t at nothing in this provision shall a tax r sessment under any applicable law, condition, or part of this Lease is or unconstitutional, the remaining Lessee: terms, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTIC XII LEASE TE ATION a. CANCELLATION: The City may, afte 30 da 'written notice to the Lessee, cancel this Lease and recover possession of the Premises i any o the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when sums specified in this Lease, includii 2. The Lessee's check for insufficient funds. 3. The Lessee uses or authorizes authorized by this Lease. 4. The Lessee fails to 5. The court enters a the'~en a itional rents, charges, or other v inereas de under this Lease. this and col~ipPy~with any provision in this Lease. 6. A Crustee or receiver is appoint by or against the Lessee, or j~Lessee 7. Failure by the Lessee to improvement constructio requ sum due~tn~r this Lease is returned for Premises~r any purpose not the Lessee. in a proceeding brought in bankruptcy. or permanent b. ENTRY AND RE-ENTRY: then that the\~~~ should be terminated in accordance with this Article XII, or by m ary roceedi r otherwise, or upon the Lessee's abandonment of the Premises or a portion f the Pr ises, t City or its agents, servants, or representatives may,rmmedia ely any ti t afte re-enter, and resume possession of the Premises or portion thereof, d rem e all p so d p perty therefrom, without being liable for any damages therefore. ore-entry the ty b deemed an acceptance of a surrender of the Lease. ~ ~ a CONTINUING OBLIGAT 1~ L continue to pay City rent after the ex ra abide by the lease obligations, includin Lessee relinquishes possession of and co Premises completely vacated if the Lessee LEASE OF AIRPORT LANDS Page 16 of 30 (attachment [o ... . 5BS VACATED: The Lessee will or cancellation of this lease and to of insurance coverage, through the date the Premises. City will consider the City: Lessee: 1. Remediated any environmental contamination for which the Lessee is responsible; d. e. 2. Removed or otherwise disposed improvements and personal property wi directs to be removed; and 3. Restored the Premises to a neat City. REASONABLE CURE I. In the case of a violation th t can t be of cancellation issued by the City to e sse 30-day notice period, the Lessee begin an c violation. The City will determine if a w lat o days and what constitutes expeditious actin . 2. In the case where in Cit~' an imminent threat to the airport, direct Che Lessee to stop the activ violation, or the City may correct RIGHT OF CITY TO I. If, after 30 days fo ow required by this Lease, th City or all such actions required not take action if the Lessee b action required by this Lease Cl City will, at its sole discretion, action cannot be reaso ab e invoice for the expen s incu required action. The essee~i issuance. ~ \ Lessee-owned permanent or removable y Lease allows to be removed or the City condition acceptable to the y red within 30 days, a notice i 'leis stayed if, within the xpe 'ti s action to cure the be re nably cured within 30 Lessee's violation is considered or the environment, City will m reduce the period to cure the gt t (dl of this Article. lice the essee fai or refuses to perform any action ve the 'ght ~ of the obligation, to perform any ~a at the of expense of the Lessee. The City will nd ontinue ex editions action to perform any mot e reason 1 completed within 30 days. The nine w t const utes expeditious action and if an by d i 0 da .The City will submit to the Lessee an tl th erformance by the City of any the n f ach invoice within 30 days from LEASE OF AIRPORT LANDS City. Page 17 of 30 (attachment to .... Lessee: 2. If Lessee fails or refuses to perform any action that has been deemed an imminent threat the City will have the right, but not Che obligation, to perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost, including legal fees and dministrative costs reasonably incurred by the City in acting to correct the imminent thr at iolation. f. WAIVER: A waiver by the City of any efault y the Lessee of any provision of this Lease will not operate as a waiver of any subs uent fault. If the City waives a default, the City is not required to provide notice to the Less e to re ore or revive any term or condition under this Lease. The waiver by the City of any p on 'n this Lease cannot be enforced or relied upon unless the waiver is in writing an signe on e If of the City. The City's failure to insist upon the strict performance by the Le ee f any pro isi in this Lease is not a waiver or relinquishmenC for the future, and the provi ion w'•Il continu in II force. g• AIRPORT CLOSURE: L If the City closes the airport to ai raft opeP Lease will. remain in full force and effect w' bout 2. If the City closes the Ai ort aircraft e but not permanently, and this Lea e is r aviatio Lessee may, upon written notice to h Ci either and receive a fifty (50%) percent ren re ct nor that exceeds sixty (60) days. 3. If the City for qty (60) days or less, this for more than sixty (60) days, ;t aviation support uses, the ate the Lease or retain the Lease qr that portion of the closure the ~ir~ort to`~ircraft operations and (i) this Lease is fo avian o direct terminate this agreement by ri en o 'ce to (ii) this Lease is for non- vi~ tion see the Lease terminated. The City w consid best interest and either to 'nate Che eaC h. DISASTERS The Lessee or City may cancel t 's I se p writte I. the Premises becomes n ab t ou under this lease becomes impos 'bl • o 2. the Airport becomes unusab throug] LEASE OF AIRPORT LANDS Page 18 of 30 (attachment to ... . uses, the Lessee may the ee may request in writing to have t\he Le ee's request in light of the City's r c7e~ny the Lessee's request in writing. to the other party if fault of either party and performance no fault of either party and the Lessee: performance under this lease becomes impossible. If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee's obj~gations under the Lease will continue, but City shall be under no obligation to continue to perm. Causes for termination of the lease under this p~ovisio(g) include acts of God, the public enemy, and the United States. i. NATIONAL EMERGENCY: If Che feller e ent declares a national emergency, neither party may hold the other liable for an inabi ty t p onn any part of this Lease as a result of the national emergency. j. SURRENDER ON TERMINATIO E ept as provi d herwise in this Article XII, Lessee shall., on the last day of the term oft ' Lase ncluding y tension or renewal thereof) or upon any earlier termination of this e e s ender an de 'ver up the premises into the possession and use of City without fraud or la in g d order, dition, and repair, except for reasonable wear and tear since the last necess repa' ,replacement, restoration or renewal, free and clear of all lettings and occupa s unless e r sly permitted by the City in writing, and free and clear of all liens and encu bra es other an hose created by and for loans to City. a. USE OF THE AII2PORT: facilities without the written a use of areas designated by the automobile parking areas, and b. COSTS AND EXPENSES: limited to recording costs, shall be paid c. CARE OF TFiB order at the Lessee's own ex ens removing any material therefr the term fixed, or any earlier to and surrender the premises tp the d. CONSTRUCTION APPROV Premises by the Lessee must be compatib`I~ authorized under this Lease, as determined as prov eR herei any regular use of Airport lands or .'xCity is ohibit~d. his prohibition shall not apply to cued pub ' us has passenger terminals, to this lease, including but not s ee ke the Premises clean and in good no am e, ste, nor destruction thereof, nor -itten e fission of the City. At the expiration of ~e Leas t Lessee will peaceably and quietly quit LEASE OF AIRPORT LANDS Page I9 of 30 (attachment to ... . Any building construction on the and consistenC with the uses The Lessee must obtain the City's Lessee: written approval before placing fill material, beginning any land development, or constructing or demolishing any improvements on the Premises, and before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to Che City detailed drawings of the proposed devel ment, alteration, modification, or renovation, together with specifications or any other informa io the City reasonably requires. Further, the Lessee will submit to City evidence of The Less 's c pliance with Federal Aviation Administration regulation 14 CFR Part 77. e. LEASE SUBORDINATE TO AIRPOR agrees that City may modify this Lease to meet or to conform to the requirements of any rev t shall not act to reduce the rights or privilege ~ the Lessee financial loss. f. RIGHT TO ENJOYMENT AND PE'~( covenants that the Lessee, upon paying rent an conditions of this Lease, shall have the right to enjoy the Premises, except that the following s or peaceable possession: 1. Any inconvenience causel~by 2. Any other entries by the provisions of this Lease. g. NO PARTNERSHIP OR the City shall not be construed or the Lessee's activities or business Lessee is, and shall at all times re h. DISCRIMINATION: The Les religion, national origin, ancestry, age, employment, or other person r gr p law. The Lessee recognizes e right provision, including actions quire~p A CING REQUIREMENTS: Lessee re irements for Federal or State grants, d c ve ant. However, the modification the ss by this Lease, nor act to cause iSE9S~I~(? City hereby agrees and other c Yve ants, terms, and eacefull old, use, occupy, and rued as a denial of the right of quiet in or about the Premises; and or authorized under other VENT E`CREA ED: It is expressly understood that to b a partn or joi t nture of Lessee in the conduct of n re ises. e r a ' ship between the City and the tri tl that of n ord and tenant, respectively. s il] n discrirru a on the grounds of race, color, or ex again any pa on, employee, applicant for of pe on an anner prohibited by federal or state f the t t e a action necessary to enforce this u want t an fe I or state law. LEASE OF AIRPORT LANDS Page 20 of 30 (attachment to ... . City: Lessee: i. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race, creed, color, national origin, or sex. No person may be chided on these grounds from participating in or receiving the services or benefits of any progr my~ir activity covered by subpart E. The Lessee further agrees that it will require its suborganiza ton effect Chat they will also underCake affirmative ctio~ suborganization(s) as required by 14 CFR, P 152, Tenant shall use the premises in cot pursuant to title 49, code of Federal Regu12 21, Nondiscrimination in Federally-Assiste Effectuation of Title VI of the Civil Rights INTEGRATION, MERGER, AND conditions, and agreements of the parties and agreements regarding the Premises whether o this Lease is effective unless in writing and si k. RIGHT TO ADOPT RULES: ity t~ reasonable rules and regulations governs tl not be liable to Lessee for any diminution r under this Lease, on account of the exerctse Furthermore, the Lessee shall not be entitled leasehold estate created under this se, by reserved under this provision, unle s th xe: occupancy of the Premises as to c nstitute operation of law under the laws o'the ,e ~ to the states. I. LESSEE'S OBLIGATION TO permit any liens including, but not lim obtainable or available under e n improvements on the Premis s for an been furnished to Lessee or t the I„~s work of any character perfo improvements by or at the c have the right to provide a bond ash amount of any such lien or claimed 1 the Lessee will immediately pay any shall have such lien released or iuda~ E. assurance to the City to the same and require assurances from their other requirements imposed by or i.(le A, Office of the Secretary, Part prevt s nuerstanarngs or No modt ' ~ ation or amendment of of the City and the Lessee. g t to adopt, amend, and enforce i lu 'ng the Premises. The City shall. ~n o os ession, or of Lessee's rights 's aut rit reserved under this provision. e thew or any portion of the th exercis of the City's authority of so ' terferes with Lessee's use and n, i w le or in parC, of this Lease by and ,United States made applicable 'E AND R~lyfOVE LIENS: Lessee will not mech ics', la orers', or materialmen's liens 1 , to and against the Premises or o m e 'al f fished to Lessee or claimed to have den , c nt c rs, or sublessees, in connection with. to ha b n performed on the Premises or nce o see. Provided, however, the Lessee shall at by A a law and contest the validity or final determination of the lien or claim for lien, ~n ered with all proper costs and charges and t t d Lessee's own expense. ms of t e partment of Transportation- 964, and s t e Regulation may be amended. ICaATION: is ease sets out all the terms, LEASE OF AIRPORT LANDS City: Page 21 of 30 (aCtachment to .... Lessee: m. CONDEMNATTON: In the event the Premises or any part thereof shall be condemned and taken for a public or aquasi-public use, then upon payment of any award or compensation. arising from the condemnation or taking, the City and the Lessee shall make a good faith effort to agree upon n I. Che division ofthe proceeds; 2. the abatement in rent payable d Lease; and 3. other adjustments as the parties all the circumstances. If, within thirty (30) days after the award unable to agree upon what division, abate equitable, the dispute shall be determined n paid inB in nt, and o. SUCCESSORS IN INTEREST: This ~ benefit of the respective successors and assigns limitations on assignment as are provided for in p. NOTICES: I. Any notices required by thin personally or mailed by certified or notice A. must be ad page of this Lease Provision (p); and B. shall be dee branch post office. 2. The Ci[y or t they will receive not prior to the effective according to the prop q. RETENTION OF RENTAL breach by the Lessee, the City shall the Lessee City as partial or total li< may, be or any extension of the Yerm of this upon as being just and equitable Linder the City and Lessee are justments as are just and ~indin u nand shall inure to the hereto, ject to such specific s ust be t re mail in the re e Clue p Ltest ad ess de i ~re on the to (I) and must be delivered d envelope. A mailed at the address written on the first ted in accordance with (2) of this is deposited in a U.S. general or ~, designate a new address at which with written notice at least IS days change notice must be delivered Sion (p). the i y terminates this Lease because of any used balance of the rental payment last made by #es for the breach. LEASE OF AIRPORT LAA~DS ~ City: Page 22 of 30 (attachment to .... Lessee: r. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and take all necessary action to suppress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protection on the Airport. s. PERSONAL USE OF MATERIALS: 1\ or in any deposit of stone or gravel valuable for Premises or in the rights granted by this lease.. Premises for use elsewhere any timber, stone, valuable for building or commercial purposes. t. APPROVAL OF OTHER AUTHC not relieve the Lessee of the responsibility federal, state, or local law. u. EXECUTION BY THE PARTIES: '~ Lessee, or a duly authorized representative of city. v. CAPTIONS: The captions of do not necessarily define, limit, descr w. RIGHTS OF CONSTRUCTION: '~h available for private use, while at all timestimes p possible. Following the rule that transfers of construed in favor of the public pro ty land Lease will be strictly construed, a all ht. interest wilLbeliberallyconstrue x. LESSEE ACKNOWLEDGT this Lease and fully understands its to opportunity of advice by separate legal acknowledges and agrees that the rule of against the drafter will not ap y this I y. APPROVAL BY L1 be unreasonably withheld. responsibility or liability to in coal, oil, gas or any other mineral, or utilization is included in the e shall not sell or remove from the moss, topsoil or any other material any is of no an at g of this Lease by the City does or permit as may be required by .less signed by the representative of the Lease are for convenience only and ptents of any provision. L se is int de to make public property ~t tin the pub 'c i terest to the greatest extent to t i ublic erty are to be strictly o ig s granted to the Lessee under this of t e ity an the protections of the public LEASE OP AIRPORT LANDS Page 23 of 30 (attachment to ... . iowledges that the Lessee has read been fully advised or has had the ~y executes this Lease. Lessee also which a document is construed of Che Lessor by this Lease will not waive the Lessee's legal ral and state laws and regulations. City: Lessee: ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE SOND a. SURVEY: The Lessee is solely resp< the physical location of the boundaries of the thereon, including clearing grubbing, back-fi] the Premises shall be performed by a Land Si Lessee shall furnish the City with a copy of tl or on behalf of, the Lessee. b. IMPROVEMENTS. 1. REQUlI2ED IMPROVE complete land development and by n~ an aggregate cost of at least $ to the as-built drawings required by this evidence that the Lessee has completed improvements on the Premises i an The evidence of cost must be completion of the development and i_ A. Costs consid include building constructs n, equipment, soil testing, en irc directly related to the con ruc including excavation, geote ti pavement, remediation of env. Materially Contributed To the B. The (i) i (ii) (iii) 2. FAILURE TO CONf,~'L the required construction wtt any extensions granted, the Cit or other guarantee given by the Page 24 of 30 (attachment to ... . at its sole expense, to confirm or establish es prior to beginning any construction nvrronmental sampling. Any survey of r istered in the State of Alaska. The >f ny survey performed on the Premises by, no cost th City, Lessee agrees to of Perma nt provements including i ,with excludin fi ncing costs. In addition the essee mu submit to the City written nd d elopment and constructed ate ost or investment of not less than the City ith`i`n sixty (60) days of the t by no to than towazd ere to cost"of permanent improvements ign, lab ateria ,materials shipping, permits, se al base ' e rep rt, d environmental assessment • p mises d a i surveys; site preparation, a 'e, filling, a 'ng, fill material, gravel, and n nta contami at n (unless Lessee caused or ant min ~ ionl: an a itv connection costs. to I ~ ve nts excludes •d by t y not reimbursed by the Lessee; and ~by the es e and reimbursed by the City. ~)ENTS: If the Lessee fails to complete wed under (b)(l.) of this Article, including against and the Lessee will forfeit, any bond s applicable, City will City: Lessee: A. initiate cancellation of the lease; or B. reduce the term of the lease to a period that is consistent with the portion of the required construction timely~ompleted; or 3. APPEARANCE: When comp] neat, presentable, and compatible with Lease, as determined by the City. 4. CITY APPROVAL REQUIRED: approval before beginning any land e improvements on the Premises, orb or renovation of existing structures on he P detailed drawings of the proposed velc Further, the Lessee will submit to Ci e~ FAA regulation 14 CFR Part 77. 5. CITY APPROVAL alteration, modification, or A. the Lessee fails to de project; B. the project plans, spe C. the proposed project regulation, or law; D. the proposed pr ject security, maintenance, or peral E. the proposed p ject F. the proposed pro ct ordinances, or the City's Com ~ G. the project plans do r vehicle, and equipment arking H. the propos p ect principles or applicab e fire o 6. DEMOLITIO Prl~r~l Lessee will deliver to Citt a `T structure(s) that are to bed o the debris from the Airport. Lessee written approval for the 7. BUILDING SETBACK: LEASE OF AIRPORT LANDS Page 25 of 30 (attachment Co ... . will cements on the Premises must be use of the Premises under this ~s e must first obtain the City's written co struction or demolition of any in an alterations, modifications, or . Th L see must submit to the City alterat n, odification, or renovation. of the L se 's compliance with the s approval of any construction, thheld unless resources to complete the vals are incomplete; an applicable ordinance, the is incompatible with the safety, tt Master Plan; of the lease, zoning for drainage, aircraft, to generally recognized engineering ti of any structure(s) on the Premises, o o that, at a minimum, lists the the tt frame for demolition and removal of yew Lessee's scope for demolition and issue other permanent structure may be Lessee: constructed or placed within twenty (20) feet of any boundary line of the Premises without City's prior written approval. In addition, no building or other permanent structure may be constructed or placed within feet of any boundary line of the Premises which fronton a landing strip, taxiway, or apron. 8. AS-BUILT DRAWINGS: Withi sixt (60) days after completion of construction or placement of improvem nts up 'the Premises, the Lessee will deliver to the City a copy of an as-built drawing, ecepta le to the City, showing the location and dimensions of the improvements, giving istanc to all Premises' boundaries. If the Lessee constructs underground improveme t e ssee will appropriately mark the surface of the land with adequate surf~e m er e Cype, quantity, and distance between such markers will be subjec to pproval o th City. 9. AIRPORT SECURITY FE CIN If any con u 'on by the Lessee requires a realignment or alteration of an existi s urit fence on e emises or boundary of the Premises, the Lessee agrees to realign a r th fence in a a ner approved in writing by the Airport Manager. Anytime the fe e usC breache allow the Lessee to complete improvement construction or fen mod' ications, the Lessee shall, at the Lessee's sole expense place to ary Barrie to aintain the security of the Airport, as determined by the Airport Man er. damage cc •s to a security fence on the Premises or boundary of the Premises in c nec ' n with th L see's use or occupation of the Premises, the Lessee shall promptl r az the fence o e satisfaction of the Airport Manager. 10. DAMAGE TO IMP VEMEN S: Le ee's improvements on the Premises are damaged or destroyed, ss will ca e e im ovements to be repaired or rebuilt, and restored to normal fun Lion wi in two )year fo owing the damage or destruction. If the Lessee fails to timel reb o restore e i p ements, the City may, at its sole discretion, either reduce the er o thr Lease ensurate with the estimated value of the Lessee's remaining, fully nc ' al prove en on the Premises, or cancel this Lease. 11. DAMAGE NE R IRA O If see's improvements are damaged to the extent that more than 0% of e spac 's able nd the damage occurs within five years of the expiratio of th to of thi e, see may remove the damaged improvements, restore e er se and to i to his Lease. d. PERFORMANCE BOND t' n rior to`t~'ginning the construction of permanent improvements required under (b)(1) th' is e, the Lessee shall submit to the City a performance bond, deposit, or other se rit i th amount of $ .The form of the bond or other security shall be subjec o Cit 's approval. LEASE OF AIRPORT LANDS City: Page 26 of 30 (attachment to .... Lessee: e. DISPOSITION OF IMPROVEMENTS UPON TERMINATION: Upon the expiration of the term of this Lease (or any renewal or extension thereof) or any earlier Termination, title to the buildings, other improvements, and building equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of s e. However, if City should request any such document in confirmation hereof, Lessee shall pr tly execute, acknowledge, and deliver the document to the City and pay any charge, tax, a d fee awfully asserted or imposed on the conveyance evidenced by the document. Prove ed ho ver, that Lessee shall retain title to, and remove from the Premises at the Lessee's sole xpens any building, other improvement or building equipment Chat the City has determine 'n write to the Lessee I. has exceeded its useful life; 2. is damaged beyond reasonable re ai 3. is a hindrance to the future use o the 4. is of negligible value. f. NOTICE OF CONSTRUCTION: The days prior Co commencing any construction p~ The Lessee agrees to assist in the postin of a the notice on the Premises during const ion notify the City as required by this Prov lion materialmen's liens as defined in AS 34. .OS ~es~eq' a e e City in writing three es to no£z y ~ t alue 'n excess 500.00 on the Premises. >ti of n n-responsibility and maintenance of Less e a eas that in the event the Lessee fails to the Le ee hall indemnify the City against any ~vhich an a a result of construction on the premises. 1. City Constructed ALTERNATIVE ONE - signed. to co3astr~ct improvements after the lease is (a) As part of the exchanl City's expense ca the connection wi the P (i) (ii) this lease, the City will, at the ;nts to be constructed on or in (b) The City's total LEASE OF AIl2PORT LANDS Page 27 of 30 (attachment to ... . ment construction shall. not exceed 's written concurrence. Lessee: (c) The Lessee shall. reimburse the City For the City's cost of constructing the improvements. The reimbursement shall be made in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance. The Lessee may pay the entire remaini~ balance to the City earlier than due. (d) After completing Che improve notice of the City's total cost of which the Lessee's reimbursem~ earlier than 60 days after the date reimbursement payment for each later than the anniversary of dt~e Inent the City will give the Lessee written onstru ing the improvements and the date on ~t pay ents shall begin, which date shall be no f the ty's notice. The Lessee's annual s c din year shall be made to the City by no on hic th first payment was due. (e) Failure by the Lessee to meh through (d) of this provisio shall City. ALTERNATIVE TWO -The City (a) The Lessee constructed the grounds that pridz to (i) , (ii) (iii (b) The City's total (c) As part of the nsid for the City's cost o o made in ten (10) equa r year on the unpaid balan~ the City earlier than due. as required under (b) ination of this lease by the the lease is sigr2ed. execution of this lease, the City in connection with the Premises: was $ of this eas to ,essee shall reimburse the City the i r ements. The reimbursement shall be aments, us 'merest at eight percent (8%) per ~essee ma y the entire remaining balance to (d) The Lease sh than the first m this lease. The shall be made to C first payment was (e) Failure by the Lessee (d) of this provision shall the ~ st e bu menC payment to the City by no later f the 1 see ginning date given in Article Ili of al rei u ement payment for each succeeding year y n later an he anniversary of date on which the urse the City as required under (c) and termination of this Lease by the City. LEASE OF AIRPORT LANDS City: Page 28 of 30 (attachment Yo .... Lessee: IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. (If Lessee is a Corporation) ATTEST: Name Title STATE OF ALASKA THIRD JUDICIAL DISTRICT THIS IS TO being personally known to me appeared before me and ackne instrument on behalf of said cc that v 200_, Name: evidence of identification, rized execution of the foregoing for Alaska on Expires: ~, LEASE OF AIRPORT LANDS Page 29 of 30 (attachment to ... . Ciry: Lessee: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this _ Manager of the City of Kenai, Alaska, being satisfactory evidence of identification, appe authorized execution of the foregoing inst Approved as to lease form by City Approved by Finance Director: Lease approved by Council on Carol Freas, City Clerk U:AMy Documeo~~.AicportVI,ease of Airport LEASE OF AIRPORT LANDS Page 30 of 30 (attachment to ... . day o , 200_, Rick R. Koch, City rson ly o n to me or having produced re efore me n aclrnowledged the voluntary and ent n behalf o sa City. My for Alaska, on Expires: E-9 Suggested by: City Council CYTY OF KENAI RESOLUTION NO. 2007-07 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING THE DONATION OF A FOAM PUMPER FROM CONOCOPHILLIPS ALASKA, INC. WHEREAS, ConocoPhillips Alaska, Inc., as a charitable donation, has offered the City of Kenai a Foam Pumper; and, WHEREAS, requirements of the donation is to accept the pumper in a "where is, as is" condition and the pumper to be used specifically at the City of Kenai Fire Training Facility; and, WHEREAS, ConocoPhillips Alaska, Inc. will deliver the foam pumper to the City of Kenai. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that it authorizes the city manager to execute the Property Donation Agreement/Exit Pass accepting in a "where is, as is" condition from ConocoPhillips Alaska, Inc., the charitable donation of a foam pumper described as follows: Foam Pumper; manufactured by National Foam Systems, Inc.; Serial no. ME-951 on International Chassis, Model No. F-2574; Serial No. CF257KGB20244 w/ Curmnins engine; Model No. NTC-290; Serial No. 10988375; with Hale pump; Model No. 0125-2; Serial No. 43622; rated capacity 1250 GPM; Tanks: one each water Q1,000 gallon capacity and one each foam Q300 gallon capacity; Command System: National Foam Servo. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk ®nco h~lie~' Alaska, Inc. Property Donation Agreement(Exit Pass As consideration for ConocoPhillips Alaska, Inc.'s charitable donation of the equipment described below, the undersigned hereby agrees that such equipment is delivered by ConocoPhillips Alaska, Inc. and is accepted AS IS WHERE IS. Descrintion of property: Foam Pumper; manufactured by: National Foam Systems, Inc.; Serial No. ME-951 on International chassis, model no. F-2574; serial no. CF257KGB20244 w/ Cummins engine; model no. NTC-290; serial no 10988375. With Hale pmnp; model no. 0125-2; serial no. 43622; rated capacity 1250 GPM. Tanks: 1 ea. Water @1000 gal capacity and 1 ea Foam @ 300 gal capacity. Command System: National Foam Servo. b'.O.S: Kenai, Alaska ConocoPhilli s Alaska, Inc. Signature Name /S/ -~.c-~- ~ Date City of Kenai, Alaska Signature Name Date E-8 Suggested by: City Council CITY OF KENAI RESOLUTION NO. 2007-08 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING AN AGREEMENT BETWEEN THE STATE OF ALASKA, DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES, DEPARTMENT OF CORRECTIONS, AND THE CITY OF KENAI, ALASKA, TO FACLITATE CONSTRUCTION OF A WATER MAIN TO THE WILDWOOD CORRECTIONAL COMPLEX, PROJECT NO. 50783 AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY OF KENAI. WHEREAS, the State of Alaska wishes to construct approximately 3,000 feet of 12-inch water main connecting the water main on Redoubt Avenue in Kenai to the Wildwood Correctional Complex, Project No. 50783; and, WHEREAS, specifications related to parties' project-related obligations, ownership, maintenance, operation, compensation, etc. is provided in the attached Agreement Concerning Wildwood Correctional Complex Water System Upgrade. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, approves the Agreement Concerning Wildwood Correctional Complex Water System Upgrade between the State of Alaska, Department of Transportation & Public Facilities, Department of Corrections, and the City of Kenai, Alaska to facilitate construction of a water main to the Wildwood Correctional Complex (Project No. 50783), and authorizes the City Manager to execute the Agreement on behalf of the City of Kenai. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of February, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk AGREEMENT CONCERNING WILDWOOD CORRECTIONAL COMPLEX WATER SYSTEM UPGRADE By The Alaska Department of Transportation and Public Facilities, The Alaska Department of Corrections, and The City of Kenai, Alaska Parties to Agreement This is an Agreement by and between the State of Alaska, Department of Transportation and Public Facilities (hereinafter "DOT&PF"), the State of Alaska, Department of Corrections (hereinafter °DOC"), and the City of Kenai, Alaska (hereinafter "the City"). Purpose of Agreement This Agreement is entered into in order to facilitate construction of approximately 3000 feet of 12-inch water main connecting the water main on Redoubt Avenue in Kenai to the Wildwood Correctional Complex in that community, Project No. 50783 (hereinafter "the Project"). The water main route shall be the most direct with the capacity to facilitate the volume and pressure to meet the current needs of the institution. Any monetary increases due to water main route changes to provide for future private development will be bore by the City. This Agreement formaBly identifies and establishes the parties' respective responsibilities, participation, concurrence, and intent in the completion of the Project. It also identifies the parties' respective ownership interests in the water Page 1 of 10 main to be constructed; responsibilities for that water main's maintenance and operation after construction. Recitals Whereas: 1. DOC operates the Wildwood Correctional Complex in Kenai, Alaska, a facility which has a need for a reliable supply of potable water. DOC has secured State funding in the amount of $500,000 for the purpose of upgrading the Wildwood Correctional Complex's water supply system; 2. DOT&PF is generally responsible for overseeing construction projects of this type. DOT&PF has the authority, however, to contract directly with the City to plan, design, manage, construct, and provide construction inspection for the Project; 3. The City has the ability to obtain the services of an engineer capable of providing the engineering, construction management, and construction inspection for the Project; 4. The City has the ability to plan, design, manage, construct, and provide bidding services and construction inspection for the Project, in a fashion which is consistent with acceptable industry standards; and 5. The City has the ability to operate and maintain that portion of the water main to be constructed during the Project which is outside the boundaries of the Wildwood Correctional Complex. Now Therefore, in consideration of the mutual covenants contained in Page 2 of 10 this Agreement, DOT&PF, DOC, and the City agree as follows: The Parties' Proiect-Related Obligations 1. DOC will fund the design, bidding and construction of the Project in its entirety, within the limits of the $480,000.00 which has been appropriated for its completion; 2. The City will be responsible for providing all planning, design, project management, bidding services, construction, and construction inspection activities in the construction of the Project. The city shall design or have designed the installation of a 12" waterline from Redoubt Ave north along 4th Ave onto the WCC property. An alternative option of installing 12" waterline from Redoubt Ave north along 5th Ave, west along Florida Ave and north along 4th Ave and onto the WCC property will also be designed. Contractors may bid on either or both of these options. The DOC will select the option which it wishes to award after bids have been opened. The City shall perform these duties in a fashion which is consistent with acceptable industry standards. The DOC will review and approve all contracts with consultants who are performing work related to the Project. 3. Prior to award of the construction project, DOC will review the construction bids and all alternatives and will determine whether to award a contract and which, if any, alternatives are to also be awarded. The DOC will also review and approve all Change Orders associated with this project. Neither the City of Kenai nor any of its representatives will have the authority to authorize work associated with this project without the prior written approval of the DOC. 4. Prior to construction, DOC will review the Project water main design provided by the City. Construction of the Project is subject to and is conditioned Page 3 of 10 upon DOC approval of the water main design. 5. DOC agrees to permit such access to the Wildwood Correctional Complex as is necessary for construction of the Project, subject to its security concerns. 6. DOT&PF agrees to provide invoice review and approval during construction. In its discretion, DOT&PF may also perform an audit of the Project at any time during the life of the Project, and at any time within three years of its completion. Construction of the Project is subject to and is conditioned upon DOT&PF invoice review and approval, and in DOT&PF's discretion and at its direction an audit of the Project. DOT&PF is not obligated to bear any other responsibilities related to the Project. 7. The City agrees to make Project-related records concerning all reimbursable costs which it incurs for labor, services, materials, and equipment available to DOT&PF for its review and approval. Reimbursement to the City shall be conditioned upon its submission of certification of amounts expended and vouchers indicating payments of expenditures. 8. The City further agrees to maintain all files concerning Project construction for a period of three years following Project completion. It further agrees to permit an audit of the Project by DOT&PF at any time during the life of the Project, and at any time within three years of its completion. If DOT&PF directs it to do so, the City further agrees to provide an independent third-party audit of the Project at any time during the life of the Project, and at any time Page 4 of 10 within three years after its completion, and to provide the audit report to DOT&PF. 9. The City agrees that construction of the Project will be completed during the 2007 construction season. 10. The City will be compensated in an amount of $10,000 for the completion and approval by DOC of the construction documents, $10,000 at the time that a Notice to Proceed with Construction is issued and $20,000 at Project Substantial Completion. If any of the afore mentioned milestones are not reached for any reason, the City of Kenai will be compensated on a Time and Material bases for all Project related expenses incurred since the last milestone. However, in no case shall the total compensation for these tasks exceed $40,000. Ownership, Maintenance, and Operation of Completed Water Main Upon completion of the Project, the City will own, operate, and maintain the water main constructed during the Project in its entirety, with the exception of that portion of the water main located within the boundaries of the Wildwood Correctional Complex. DOC will own and maintain that portion of the water main located within the Wildwood Correctional Complex, including the meter pit, meter, and strainer. DOT&PF will have no ownership interest in the water main, and will bear no responsibility for operation or maintenance of the water main. Indemnification 10. The City agrees to release the State of Alaska from all liability and to Page 5 of 10 indemnify, defend, and hold the State of Alaska, its officers, agents, and employees harmless from and against any and all liability, action, claim, suit, loss, property damage, personal injury, penalty, or expense of whatever kind which may be incurred by reason of the City's performance or failure to perform any obligations associated with this Agreement. Permits 11. The City agrees to coordinate all regulatory agency reviews and shall obtain all necessary written approvals from regulatory agencies. Dispute Resolution 12. A. If a dispute arises under this Agreement between any of the parties, notice shall be provided by the aggrieved party to each of the other parties. If the parties cannot resolve the matter within 90 days after notice is given, the aggrieved party may request that the dispute be resolved by arbitration. B. An arbitrator or arbitrators shall be selected in a fashion agreed upon by the parties. To the extent that the parties are unable to agree upon the procedure for the selection of an arbitrator or arbitrators, the procedure set forth at AS 09.43.380, a provision in the Revised Uniform Arbitration Act, shall govern. C. Except as otherwise reflected in this Agreement, arbitration under this Agreement is subject to the Revised Uniform Arbitration Act, AS 09.43.310 - 180. Severability of Agreement's Provisions Page 6 of 10 13. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, the remainder of this Agreement shall remain in full effect. Aareement Pertains Only to Parties 14. No provision in this Agreement is intended to grant, nor may it be construed as granting, any benefit or right to any person or entity that is not a party to this Agreement. Assignment; Successors in Interest 15. While this agreement is in effect, no rights or obligations granted and assumed under this agreement may be assigned, delegated, or otherwise transferred except upon prior written notice to and approval by the other parties hereto. Any attempted assignment, delegation, or other such transfer of rights or obligations shall be voidable by any other party. This Agreement and all of the covenants, provisions, and conditions contained herein shall inure to the benefit of and bind the parties and their successors. Governing Law 16. This Agreement shall be interpreted and construed in accordance with, and governed and enforced in all respects by, the laws of the State of Alaska. Entire Aareement of the Parties; Amendment Requirements 17. This Agreement is the entire agreement between all of the three parties hereto with regard to the subject matter hereof. All prior Page7of10 communications of the parties concerning the subject matter of this three-party Agreement are merged into this Agreement. This Agreement may be amended only by a written amendment signed by all of the parties or their successors. Effective Date of Aareement 18. This Agreement will become effective only when it has been signed by all of the parties hereto. It will become effective on the date on which the last of the three parties signs the Agreement. ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES DATED: By: STEVEN R. HORN, P.E. Director Construction and Operations Central Region STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) This is to certify that on this day of .2007, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Steven R. Horn, P.E., Director of Construction and Operations for the Central Region of the Alaska Department of Transportation and Public Facilities, known to me to be the individual named in and who executed the foregoing document, and who on oath acknowledged to me that the foregoing document is the free and voluntary act of the State for the purposes set forth therein, and who on oath acknowledged to me that he was authorized to execute the foregoing document. Notary Public in and for Alaska My Commission expires: Page8of10 ALASKA DEPARTMENT OF CORRECTIONS DATED: By; STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) SHARLENE GRIFFIN Director Division of Administrative Services This is to certify that on this day of , 2007, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Sharlene Griffin, Director of the Division of Administrative Services for the Alaska Department of Corrections, known to me to be the individual named in and who executed the foregoing document, and who on oath acknowledged to me that the foregoing document is the free and voluntary act of the State for the purposes set forth therein, and who on oath acknowledged to me that she was authorized to execute the foregoing document. Notary Public in and for Alaska My Commission expires: DATED: STATE OF ALASKA THIRD JUDICIAL DISTRICT CITY OF KENAI By: RICK KOCH City Manager ss. Page 9 of 10 This is to certify that on this day of , 2007, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Richard Koch, City Manager for the City of Kenai, an Alaska Municipal Corporation, known to me to be the individual named in and who executed the foregoing document, and who on oath acknowledged to me that the foregoing document is the free and voluntary act of the City of Kenai for the purposes set forth therein, and who on oath acknowledged to me that he was authorized to execute the foregoing document. Notary Public in and for Alaska My Commission expires: Page 10 of 10 r ~i AGENDA KENAI CITY COUNCIL -REGULAR MEETING FEBRUARY 7, 2007 7:00 P.M. KENAI CITY COUNC%L CHAMBERS http: / /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 on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Scott Hattenburg & Lori Dilley, Hattenburg, Dilley & Linnell -- Presentation of Arsenic Groundwater Study. 2. Casey Reynolds, Economic Development Planner, City of Wasilla -- Proposed Liquor License Legislation YTEM 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. 2204-2007 -- Creating the PRISM Special Revenue Fund and Increasing Estimated Revenues and Appropriations to Fund Operations for FY2007. 2. Ordinance No. 2205-2007 -- Amending KMC 7.15.050 to Add Subsection (g) Allowing Emergency Purchasing Without Competitive Bidding. 3. Ordinance No. 2206-2007 -- Amending KMC 13.30.010 to Reflect the Renumbering of the Traffic Violation of Negligent Driving in the Alaska Statutes. 4. Ordinance No. 2207-2007 -- Amending the Official Kenai Zoning Map by Rezoning Tract C, Gusty Subdivision No. 2 and 1Yact B, Shadura Subdivision, From General Commercial (CG) to Central Commercial (CC). 5. Ordinance No. 2208-2007 -- Amending KMC 14.20.250, Off-Street Parking and Loading Requirements. 6. Ordinance No. 2209-2007 -- Amending KMC 14.25 to Include Four or More Dwellings in the Landscaping/Site Plan Requirements of the Kenai Municipal Code. 7. Ordinance No. 2210-2007 -- Increasing Estimated Revenues and Appropriations by $88,450 in the Airport Fund to Fund PRISM Operations and Replenish the Contingency Accounts. 8. Ordinance No. 2211-2007 -- Authorizing the Sale of Approximately 38.224 Acres at Tract 1, Baron Park, 2005 Replat in the City of Kenai, Alaska, to wal-Mart, Inc. and Setting Forth the Price and Other Terms and Conditions of Sale. 9. Resolution No. 2007-O1 -- Awarding a Contract to Holiday Companies for Furnishing and Dispensing Unleaded and Diesel Fuel. 10. Resolution No. 2007-02 -- Awarding the bid to Big G Electric & Engineering, Inc. for Kenai Senior Center Light Replacement 2007 for the Total Amount of $36,965.31. 11. Resolution No. 2007-03 -- Transferring $25,000 in the General Fund for Shop Department Operating Supplies. 12. *Liquor License Renewals -- • Peninsula Oilers/Recreational Site -- License #846 • BPO Elks Lodge #2425/Club -- License #368 • 2 Go Mart/Package Store -- License #4544 • Three Bears/Package Store -- License #4118 YTEM F: MINUTES 1. *Regular Meeting of January 17, 2007. ITEM G: ITEM H: 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2212-2007 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a Library Grant. 4. *Ordinance No. 2213-2007 -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund to Purchase a Dip Net Pay Shack. 5. *Ordinance No. 2214-2007 -- Increasing Estimated Revenues and Appropriations by $39,000 in the General Fund Shop Department to Rebuild Loader. 6. Approval -- Consents to Subleases and Amendment to Lease/Lot 7, Etolin Subdivision, Second Addition to DEHR-JV Company. Discussion -- Zoning Powers/Restricting Access to the Kenai River. 8. Discussion -- Schedule Work Session/Kenai Municipal Airport Supplemental Planning Assessment, Phase 2 Report. ITEM I: COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Corrunission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini-Grant Steering Committee ITEM J: REPORT OF THE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: 1. Citizens (five minutes) 2. Council -- None Scheduled ITEM M: KENAI CITY COUNCIL -REGULAR MEETING FEBRUARY 7, aoo~ z:oo P.M. KENAI CITY COUNCIL CHAMBERS http: / /www.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL The City Clerk took roll. Present were: Linda Swarner _Bar~r Eldridge Rick Ross Robert Molloy ~ Mike Boyle Pat Porter, Mayor Joe Moore, Vice Mayor A quorum was present. Also present: Adam DeMello, Student Representative A-3. AGENDA APPROVAL MOTION: Council Member Moore MOVED for approval of the agenda and requested UNANIMOUS CONSENT. Council Member Eldridge SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: Council Member Moore MOVED to approve the consent agenda as presented and Council Member Eldridge SECONDED the motion. MOTION TO DIVIDE THE QUESTYON: KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 2 Council Member Molloy MOVED to divide the question by considering the approval of E-12, Liquor License Renewals, and then the approval of the remaining consent agenda items. There were no objections. SO ORDERED. MOTION: First question: Approval of E-12, Liquor License Renewals. Councff Member Molloy stated a conflict of interest and requested to abstain from voting as some of the businesses were his clients. Mayor Porter allowed the abstenfion. VOTE ON APPROVAL. OF LIQUOR LICENSES: *Student Representative DeMeilo: Yes Swarner Yes Eldridge Yes Ross Yes Molloy Abstain Boyle Yes ~ Porter ~ Yes Moore Yes MOTION PASSED UNANIMOUSLY. MOTION: Second question: Approve the remaining consent agenda items. VOTE ON REMAINING CONSENT AGENDA ITEMS: *Student Representative DeMello: Yes Swarner Yes Eldridge Yes Ross Yes Molloy Yes Boyle Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. ITEM B: SCHEDULED PUBLYC COMMENTS (10 minutes) B-I. Scott Hattenburg & Lori Dilley, Hattenburg, Dilley & Linnell -- Presentation of Arsenic Groundwater Study. KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 3 Lorre Dilley, Hattenburg, Dilley & Linnell gave a summary of the Arsenic Groundwater Study, Fl'nal Draft Report which was included in the packet and distributed a copy of a summary report to the council. Dilley noted: • Arsenic concentrations appear to be lower in shallower, younger water; • Wells 1 and 3 have multiple clay layers compared to Well 2; • There are three potential areas (Eagle Rock, Third Avenue, and Golf Course} that are favorable for future shallow water wells; • Quantity for shallow wells in drier years is a concern; • New chlorination byproduct treatment rules suggest that in the future, a treatment plant will be needed; A brief discussion followed during which concern was expressed related to impacts to other wells in the areas of Eagle Rock and Third Avenue if wells are drilled in those areas; it was noted a request for an extension related to arsenic levels was submitted to Alaska Department of Environmental Conservation; and, a copy of the information would be included in the next council meeting packet as information. B-12. Casey Reynolds, Economic Development Planner, City of Wasilla -- Proposed Liquor License Legislation Reynolds referred to a draft letter from the Wasilla Mayor included in the packet and relating to legislation the City of Wasilla has requested to be drafted to amend the State liquor license law in order to allow transfer of unused liquor licenses between a borough with a population of 40,000 or more and cities within that borough. ITEM_C: UNSCHEDULED PiTBLIC_C_OMMENTS (3 minutes) Mya Renken, Director, Kenai Convention & Visitors Bureau -- Renken distributed the 2007 Visitors Guide and encouraged council to complete the strategic planning questionnaire previously distributed to them. Janice Houta, 700 Maple Drive, Kenai -- Read into the record her letter supporting the Wal-Mart development. YTEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) E-I. Ordanance No. 2204-2007 -- Creating the PRISM Special Revenue Fund and Increasing Estimated Revenues and Appropriations to Fund Operations for FY2007. MOTION: KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 4 Council Member Moore MOVED to adopt Ordinance No. 2204-2007 and Council Member Swarner SECONDED the motion. There were no public comments. City Manager. Koch reported a state representative from PRISM would be making a presentation in the near future; repairs at the facility will cost approximately $20,000; and, within the next two weeks he believed the agreement would be executed. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. E-2. Ordinance No. 2205-2007 -- Amending KMC 7.15.050 to Add Subsection (g) Allowing Emergency Purchasing Without Competitive Bidding. MOTION: Council Member Eldridge MOVED for the adoption of Ordinance No. 2205-2007 and Council Member Swarner SECONDED the motion. There were no public or council comments. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. E-3. Ordinance No. 2206-2007 -- Amending KMC 13.30.010 to Reflect the Renumbering of the Traffic Violation of Negligent Driving in the Alaska Statutes. KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 5 MOTION: Council Member Molloy MOVED for the adoption of Ordinance No. 2206-2007 and Council Member Eldridge SECONDED the motion. There were no public or council comments. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. E-4. Ordinance No. 2207-2007 -- Amending the Official Kenai Zoning Map by Rezoning Tract C, Gusty Subdivision No. 2 and Tract B, Shadura Subdivision, From General Commercial (CG) to Central Commercial (CC). MOTION: Council Member Ross MOVED for the adoption of Ordinance No. 2207-2007 and Council Member Molloy SECONDED the motion. There were no public comments. Council Member Ross reported the Planning & Zoning Commission reviewed the rezone and had no objections, and the rezone would remove a split zone on the property. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. E-5. Ordinance No. 2208-2007 -- Amending KMC 14.20.250, Off-Street Parking and Loading Requirements. KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 6 MOTION: Council Member Ross MOVED for adoption of Ordinance no. 2208-2007 and Council Member Eldridge SECONDED the motion. There were no public comments. Ross reported administration had requested the amendments to simplify the off-street parking and loading requirements was made by administration and the Commission had no objections. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. E-6. Ordinance No. 2209-2007 -- Amending KMC 14.25 to Include Four or More Dwellings in the Landscaping/Site Plan Requirements of the Kenai Municipal Code. MOTION: Council Member Molloy MOVED for adoption of Ordinance No. 2209-2007 and Council Member Eldridge SECONDED the motion. There were no public comments. Ross reported the Planning & Zoning Commission reviewed the amendments and had no objections. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldridge Yes Ross Yes Molloy ( Yes ~ Boyle ( Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 7 E-7. Ordinance No. 2210-2007 -- Increasing Estimated Revenues and Appropriations by $88,450 in the Airport Fund to Fund PRISM Operations and Replenish the Contingency Accounts. MOTION: Council Member Molloy MOVED for adoption of Ordinance No. 2210-2007 and Council Member Eldridge SECONDED the motion. There were no public comments. Koch reported the ordinance could cover three months of the year the city would be managing the facility and leftover funds would be used for repairs of the facility which had been discussed earlier. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Molloy Yes Boyle _ Yes Porter Yes ~ Moore Yes T ~ ~ ', MOTION PASSED UNANIMOUSLY. E-8. Ordinance No. 2211-2007 -- Authorizing the Sale of Approximately 38.224 Acres at Tract 1, Baron Park, 2005 Replat in the City of Kenai, Alaska, to Wal-Mart, Inc. and Setting Forth the Price and Other Terms and Conditions of Sale. MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2211-2007 and Council Member Moore SECONDED the motion. Rick Baldwin, 3080 Kfm-n-Ang Caurt, Kenai -- Baldwin noted he was speaking in the capacity as the Chair of the KEDS group and spoke in support of the land sale ordinance. MOTION TO AMEND: Council Member Swamer MOVED to amend the ordinance to read Ordinance No. 2211-2007 and requested UNANIMOUS CONSENT. Council Member Eldridge SECONDED the motion. There were no objections. SO ORDERED. Discussion followed related to the main amended motion. Comments included: KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 8 • Administration did a very good job in preparing the agreement, with the inclusion of protections, completion of construction, etc. • Suggestion the agreement be a long-term lease in order for the city to maintain control of the property if Wal-Mart would decide to leave the area or lease with an option to purchase (with certainty of purchase price). • Concern expressed changing the agreement would be a deal breaker and a new appraisal would be required. • Concern the 30-day timeline and purchase right in Section 34 is not long enough. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo No Bo le No Porter Yes Moore Yes ~ MOTION PASSED. E-9. Resolution No. 2007-O1 -- Awarding a Contract to Holiday Companies for Furnishing and Dispensing Unleaded and Diesel Fuel. MOTION: Council Member Moore MOVED for approval of Resolution No. 2007-01. Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public comments. It was noted, it was specified in the specifications the city would not be paying any taxes on the fuel. VOTE: There were no objections. SO ORDERED. E-10. Resolution No. 2007-02 -- Awarding the bid to Big G Electric & Engineering, Inc. for Kenai Senior Center Light Replacement 2007 for the Total Amount of $36,965.31. MOTION: Council Member Molloy MOVED for approval of Resolution No. 2007-02 and Council Member Eldridge SECONDED the motion. KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 9 There were no public or council comments. VOTE: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore (Yes MOTION PASSED UNANIMOUSLY. E-11. Resolution No. 2007-03 -- Transferring $25,000 in the General Fund for Shop Department Operating Supplies. MOTION: Council Member Molloy MOVED for approval of Resolution No. 2007-03. Council Member Moore SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or councll comments. VOTE: There were no objections. SO ORDERED. E-12. Liquor License Renewals -- • Peninsula Oilers/Recreational Site -- License #846 • BPO Elks Lodge #2425/Club -- License #368 • 2 Go Mart/Package Store -- License #4544 • Three Bears/Package Store -- License #4118 Approved by consent agenda (with abstention of Council Member Molloy). ITEM F: MINUTES F-1. Regular Meeting of January 17, 2007 -- Approved by consent agenda. ITEM G: UNFINISHED BUSYNESS -- None. ITEM H: NEW BUSINESS KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 10 H-1. Bills to tae Ratified MOTION: Council Member Moore MOVED to ratify the bills. Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. H-2. Approval of Purchase Orders Exceeding $15,000 MOTION: Council Member Molloy MOVED to approve the purchase orders exceeding $15,000. Councff Member Moore SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. H-3. Ordinance No. 2212-2007 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a Library Grant. Introduced by consent agenda. H-4. Ordinance No. 2213-2007 -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund to Purchase a Dip Net Pay Shack. Introduced by consent agenda. H-5. Ordinance No. 2214-2007 -- Increasing Estimated Revenues and Appropriations by $39,000 in the General Fund Shop Department to Rebuild Loader. Introduced by consent agenda. H-6. Approval -- Consents to Subleases and Amendment to Lease/Lot 7, Etolin Subdivision, Second Addition to DEHR-JV Company. MOTION: Council Member Molloy MOVED to approve the Consents to Subleases and Amendment to Lease and Council Member Boyle SECONDED the motion. MOTION TO AMEND: KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE i l Council Member Moore MOVED to amend the motion by adding "contingent upon payment of property taxes at closing." Council Member Eldridge SECONDED the motion. VOTE ON AMENDMENT: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Mollo Yes Bo le Yes Porter Yes Moore Yes MOTION PASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: *Student Representative DeMello: Yes Swarner Yes Eldrid e Yes Ross Yes Molloy Yes Bo le Yes Porter Yes Moore ~ Yes ~ j ~ ( ~ MOTION PASSED UNANIMOUSLY. H-?. Discussion -- Zoning Powers/Restricting Access to the Kenai River. A brief discussion took place during which comments included: • Suggestion to hold a work session to discuss the city's options and ramifications with the inclusion of representatives from the Borough and City of Soldotna. • Suggestion to schedule a work session first with city representatives and council. Schedule a second work session with City of Kenai and Soldotna representatives and Borough representatives. A work session was scheduled to be held on Wednesday, February 21, 2007 in the Council Chambers and beginning at 5:00 p.m. H-8. Discussion -- Schedule Work Session/Kenai Municipal Airport Supplemental Planning Assessment, Phase 2 Report. It was suggested the Airport Commission be consulted if they would prefer holding a joint work session on March 7 or March 8. KENAI CITY COUNCIL MEE'T`ING FEBRUARY 7, 2007 PAGE 12 YTEM I: COMMYSSION/COMMITTEE REPORTS I-I. Council on Aging -- Council Member Boyle reviewed items discussed at the February 1 meeting. Y-2. Airport Commission -- Council Member Molloy reported the next meeting would be held on Thursday, February 8, 2007. Y-3. harbor Commission -- Mayor Porter appointed Council Member Boyle as the council liaison to the Harbor Cormmission. I-4. Library Commission -- Council Member Swarner reported the Kenai Community Library had won a Public Library Association award which would be presented to the director in June. Swarner also reported the next meeting would be held on February 13, 2007. I-5. Pazks & Recreation Commission -- Council Member Moore reported the Commission met in a joint work session with members of the Beautification Committee to discuss the possible combining of the two groups. Referring to the memorandum included in the packet, he noted the groups felt their responsibilities different enough to continue as two separate entities. He noted, the groups requested more information flow between them. It was also reported, a quorum was not available for the regularly scheduled Parks & Recreation Commission meeting of February 1, 2007. I-6. Planning & Zoning Commission -- Council Member Ross gave a summary of actions taken at the January 24, 2007 council meeting and noted the minutes were included in the packet. I-7. Miscellaneous Commissions and Committees Y-7a. Beautification Committee -- Council Member Swarner reported a letter had been included in the packet for the Beautification/Parks & Recreation Commission work session which suggested the Beautification Corrunittee be more involved in the overall planning of the city. It was requested the Committee receive copies of landscape/site plans as informational items in their packets. I-7b. Alaska Municipal League Report -- Swarner reported she would be participating in a land use teleconference and requested continents from council be forwarded to her. I-7c. Mini-Grant Steering Committee -- Referring to the meeting summary included in the packet, Mayor Porter reported the Committee met on January 30 and reviewed two applications and approved both; requested council's concurrence with KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE I3 the application approvals; and, noted amendments to the grant application package would be presented to council for consideration at its next meeting. MOTYON: Council Member Swarner MOVED to approve the two mini-grants as outlined in the meeting summary and requested UNANYMOUS CONSENT. Council Member Eldridge SECONDED the motion. There were no objections. SO ORDERED. ITEM J: REPORT OF THE MAYOR -- Mayor Porter reported the following items: • She attended the Alaska Conference of Mayors meeting in Juneau and while there met with area legislators and discussed issues related to the city. • Suggested sending a letter to the legislators to encourage their support for revenue sharing money and to state she was not interested in increasing the senior citizen property tax exemption. • She gave a presentation related to the health of the city to the Kenai Chamber of Commerce. • She participated in the planning and attended the Governor's Inaugural Ball, which was very successful. • CityLink Russian delegates will visit the area during the week of February 12 and a dinner for the delegates is planned for February 15. ITEM K: K-1. City Manager -- City Manager Koch reported the following: • He will travel to Juneau the last part of February. • The Corps of Engineers 404 permit package was completed by Wal-Mart representatives and will submit it to the Corps. • The traffic impact analysis was approved and accepted by the State. • Senator Murkowski will be in Kenai on February 19. • He will check whether there is additional information related to the Department of Natural Resources regulations prior to the February 21 work session. • KCHS hockey team won the Region III Hockey Tournament. K-2. Attorney -- No report. K-3. City Clerk -- No report. ITEM L: L-1. Citizens (fave minutes) -- None. KENAI CITY COUNCIL MEETING FEBRUARY 7, 2007 PAGE 14 L-2. Council Ross -- No comments. DeMello -- Noted the following: • KCHS hockey team won the Region III Hockey Tournament. • Anew flag and Kardinal suit was purchased for the high school. • The students will be holding a dance for senior citizens at the Senior Center in February. • Requested a donation for placement of a city advertisemerit in the basketball regions tournament program. It was noted, an ad had already Ueen purchased. Eldridge -- Congratulated Porter and Koch on the planning for the inaugural ball and stated he was pleased the Wal-Mart project was moving forward. Swarner -- Noted the following: • She will be going to Washington, DC and meeting with representatives from the congressional offices in February. She requested packets of information related to the bluff erosion project to distribute. • Suggested the council consider development of an ethics code: ,City Clerk Freas and City Attorney Graves were requested to research the issue and provide an ordinance for consideration. • Suggested the liquor license issue be forwarded to the KEDS group to review. Moose -- Noted the following: • Agreed the liquor license issue should be forwarded to KEDS to research and comment. • Because it was noted, the well drilled in Section 36 was found to have unacceptable water, asked how the new soccer fields would be irrigated. Koch answered, the main along the highway would be used. Boyle -- Reported the Workforce Development Center would be holding an open house on February 17 from 10-2:00 p.m. Molloy -- Thanked administration for the fire Department report and thanked Clerk Freas for the assistance with the parliamentary procedure for dividing the question and placing the e-packet on the city webpage. -- None Scheduled ITEM M: ADJOURNMENT KENAI CITY COUNCIL MEETING FEBRUARY 7, 200'7 PAGE 15 There being no further business before the Council, the meeting adjourned at approximately 9:18 p.m. Minutes submitted by: Carol L. Freas, City Clerk *The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast prior to the official council note and shall not affect the outcome of a vote. Advisory cotes shall be recorded in the minutes. Student representatives may not move or second items during a council meeting. ~-i Z H to M ~ W M n Oh cr my O tp ~ .- H Z ° U W F- ~ h- ~ -1 m '~ ~ F F- 4 5 ~ ~ F-- Z w K 4 O O O a ~ ~ ~ a 0 r= a U U. J U Z W O ® w ~ ~ O N .= N ~ ~ ~ Q a ~ m o ~ ~ v ~ ~ w w W ~ } ~ ~ z ~ W ~ ~ a m W Ci ~' 0 o U1 c~ U. ~ ~ K Z U ~ ~ F- W .cd W L _.....W Q J Z ~ O ~ O ? W W ~ O W Q Z i .~ C W z O w 6 D O O O M M V (O ~!> 4Ii try 0 0 0 0 0 0 0 0 0 u~ o 0 r o u~ m o of rn o rn T r O 4 N O N _ O a ~ ~ N `~ r a I- F- t- ~ ~ K W W W F ~ ~ c~ t~ ~ > ~" W W W ~ GG LC W Z Z a o 0 ~ g a a Z ~ O O Q N a O 0. ~ Q M V' M Q H ~ d Z ~ ~ O O ~ Q f~0 M Z ~ ~ _ Z Q. a Q. ~ O Q GY K (~ d 'C Q LL u. Q r ~ w ~ > p o ~ a a ~ ~ ~ Q 411 ~ ~ M J a vs a: ~ U 2 O U W Z h. ¢ 2 o c~ U w z z _ T N O Z~ O o K Q' Q~ D J a Q U ~ Z O U ~ O~ W W~ W W ~ r W A [K F- Q O U e» ~" U 0.' ~ W O 4 u: ~' ~ ~ z Z N O "~ W X X } W W ~ LL ~ z p • J w ~ O w n. w ~ ~ ~ a U > z _ > N-z a o z o ~; Q a Q r N ~ f" Z Z Q Q +g Z ~ ~ ~ ~ ~ O d a d a ~ J `,t" lot ~ ~ a a o _ ~ d J ~ U Z a d ~ w a o w 0 Z n. o 4 w 0 w z QO ~ ` N ~ W ~ L } 0 ° ~ a ® ~ . o ° ~ w w z w ~ w o ~r ~a u~ LLI O ti: Q W ~ W ~ Z p w z z w ~ ~ J Z ~ = O ~ d ~ O W ~! ~ a v > w Y ~o 4Q 00. vi J F ~ O V- {+- o Z o a o O °o c~'o M w H w J Q ~ „~'"5 0 ~ ~ yr d ~_ ud] Q w w F- W ~ d ~ s~ f3 0 a ~ Z K O w d O ~U w o 0 x U d C~ Re~lixd N-a ~- 3 Suggested by; Admmistranon CITY OF KENAI ORDINANCE NO. 2215-2007 AN ORDINANCE QF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,212 IN THE GENERAL FUND FOR A LIBRARY GRANT. WHEREAS, the State of Alaska has provided a Netlender Reimbursement grant in the amount of $1,212; and, WHEREAS, the grant will be used to purchase books. 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: State Grants $1,212 Increase Appropriations: Library -Books $1 212 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of March, 2007. PAT PORTER, MAYOR ATTEST: Carol L. Freers, City Clerk Approved by Finance:_~ (02/ 13/2007) hl Introduced: February 21, 2007 Adopted: March 7, 2007 Effective: March 7, 2007 ~\ __ -,_ -. =:.i. .~_ "V'fla e with a Past, Gi wit~t L 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 !Fax: (907) 283-3014 www.ci.kenai.ak.us ~~ thcu~af // KENAI~ SKA MEMORANDUM TO: Mayor/Council Members FROM: Carol L. Freas, City Cler DATE: February 14, 2007 RE: C%TY OF IfENA7 MINI-GRANT FORM AMENDMENTS At its January 30, 2007 meeting, the Mini-Grant Steering Committee suggested a change be made to the grant application forms to indicate a fifty percent (50%j payment of the total funds be forwarded for a project's start-up costs and the remaining fifty percent upon completion of the project and completion forms. This would amend the current ninety percent initial award of funding for projects and remaining ten percent upon completion of the. project. The attached Mini-Grant application package indicates the requested amendments. Does Council approve the amendments to the attached. City of Kenai Mini-Grant application package? i $ i 5 }# °~ City ® ai Mini- rant Overview/Procedures Purpose: Together We Can! Provides funding in the form of mini-grants for residents, school programs and organizations to use for projects that will have an immediate, positive, and long-lasting effect for their neighborhoods [AND] in the City of Kenai. Mini-grants are intended to provide start-up funding for small innovative projects within the City of Kenai. Our goal is for families, neighbors and all members of Kenai to work together to build healthier neighborhoods, help kids succeed in school and improve the quality of life for all residents. Who may apply: Youth, neighborhood groups, organizations, and individuals who have a desire to improve the quality of life in their community. How to apply: Complete a Together We Can! Mini-Grant application. Applications may be submitted for review by September 15, January 15, and May 15 of each year. If September 15, January 15, and May 15 are not regular City workdays, the submittal date shall be extended to the close of business of the next regular City workday. Types of Proiects: Only new or expanded projects will be considered. Selection: Grant recipients will be chosen by the Steering Committee, appointed by the Kenai City Council. The Steering Committee will include the Mayor, Kenai Economic Development member, one representative each from Kenai Central High School and the Kenai Chamber of Commerce. Funding: The City of Kenai may provide funds in its annual Legislative Budget for distribution. The maximum grant amount the Committee may award is $500. Grants larger than $500 must be approved by the Kenai City Council. Awards for funding are granted to prior-approved projects only. Proiect Completion: Upon completion of the project, a report must be filed with the Together We Can! Steering Committee and the report will be submitted to the Kenai City Council explaining how the funds were spent and the outcome of the project. KENIII. ALASKA Revised 8/ 16/06 U Procedures: Applications are submitted to the City of Kenai Together We Can! Steering Committee for review through the Kenai City Clerk. (Students' applications must be signed/approved by a teacher.) Upon approval of application and execution of Letter of Agreement, fifty percent (50%) [90%] of the grant funds will be issued through the Kenai Finance Department. A report will be given to the City Council of awarded projects. A written report must be submitted to the Steering Committee within thirty (30) days of completion of the project. Council will present a proclamation upon receipt of the completed project and financial reports. Awards: Projects most likely to receive funding are those that will benefit the community/neighborhoods the most. This includes projects that create the most visible and lasting change. Revised 8/16/06 Y # _ M ~" „' cge: k ~~ ~' ~ ~ City of Kenai Mini-Grant Application Grant NUIllber' Date ReCeiVed: Applicant: Date: Applicant Address: Phone: Email Address: Contact Person: Phone: Project Title: Project Start/End Dates: Total Project Cost: Amount Requested: Please check: ~ 501(c)(3) Non-profit Organisation EIN# (New grantees should attach a copy of their IRS Letter of Determination.) ^ Society/Group* ^ Individuai* *There may be a tax liability for grant awards to non- exempt entities. Provide a brief description of your organization, society, group, or entity. As an individual applicant, describe your involvement in the community and your experience/expertise as it relates to this project. (Attach separate sheet, if necessary.) Revised 8/ 16/06 2. Describe the project for which you are requesting funding. Include a project timeline and an explanation of how the project will benefit the community. (Attach separate sheet, if necessary.) 3 4. Please complete a simple budget for this project. Grants over $500 must be approved by the Kenai City Council. ITEM COST STORE OR SUPPLIER* (Material or service needed to (Estimated cost of the items.) (Where you will purchase this item Total grant request: *The City requests material bought with City grant funds be purchased within the City of Kenai, if possible. How will you know if your project is successful? 5. Have you received a City of Kenai Mini-Grant before? If yes, most current award: Project title: Project dates: Amount of grant: Yes ~ No Revised 8/16/06 Did you comply with the Letter of Agreement? ~ Yes ^ No (If no, attach a current status of your project.) I certify the information contained in this application, including all attachments and support material, is true and correct. I understand the grant funds, if granted, will be used only for the project or purpose described in this application. I understand fib percent (50%) (NINETY PERCENT (90%)] of the funds approved will be provided in advance. The balance will be paid at the completion of the project and report filed with the steering committee. Signatory must be an authorized officer for an organization. Student applications must also be signed/approved by a teacher. Applicant Signature: _ Name Printed Title: Approval (Teacher) Signature: Name Printed: Title: Date: (if applicable) (if applicable) Revised 8/ 16/06 z ~~ 3 ~ tt 43 ~ G K ~y v~tt'' .a4v""' ~ ~ R ~ ~ ~ ~ ~ ~, FUNDYNG RECIPIENT NAME: PROJECT NAME: DATE OF FUNDYNG: City of Kenai Mlnl-Grant Letter of Agreement Grant Number: Date Received: The City of Kenai is pleased to awazd fundang ffor a mini-grant in the amount of $ Payment of f fty percent (50%I (90%) of the total will be made upon receipt of this signed Letter of Agreement. Recipient agrees to the following: 1, To use mini-grant funds only for the project or purpose describedsn the mini-grant application. 2. To submit aMini-Grant Report Form within thirty (30) days of completion of the project. 3. To comply with the terms and conditions of the mini-grant award. 4. To submit expense recefpts using the Mini-Grant Report From for purchases made with mini-grant funds. Additional Terms and Conditions: 5. 6. RECIPIENT CITY OF KENAI (print) _ Date: Date: -~~ sr~,~ ,. ~~ ~ a a ~, ~, City of Kenai 1Viini-Grant Report Form (Due within 30 days of project completion.) Grant Number: Date Received• Name of Group/Individual: Contact Name: Mailing Address: Phone: Email: 1. Describe the completed project. Attach photo and documentation. 2. How did you use the grant funds? 3. How successful was your project? 4. Who assisted with your project? Statement: Following submittal of the brief written report and all expense receipts being turned in to the city off Kenai's Mini-Grant Steering Committee, the final grant (fifty percent, 50%) [(ten percent, 10%)] will be paid. Signature: (Print): _ Date: __ Return this form/receipts to: Kenai City Clerk 210 Fidalgo Avenue Kenai, AK 99611-7794 .,.~ ~ ttie~;ry f KENA\~~ SKA u-5 RENTAL AGREEMENT FOR OFFICE SPACE This rental agreement, made on the date of its latest execution, is between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, AK 99611 (hereinafter "City"), and CHEVRON NORTH AMERICA EXPLORATION AND PRODUCTION., a division of Chevron U.S.A. Inc., a Pennsylvania corporation_(hereinafter "Chevron"). In consideration of the mutual covenants and promises contained herein, the City rents to Chevron certain space in an office building in or near Kenai, Alaska, described as the Alaska Regional Aircraft Fire Training Center living quarters consisting of approximately 650 square feet, upon the following terms and conditions. 1. Term: The term of this rental begins on February 26, 2007 and continues until February 28, 2009. The parties may by mutual consent agree upon two extensions of two years each with the terms and conditions, including rent, to be also mutually agreed upon. 2. Rent: Rent is $937.50 per month (based on a rate of $1.50 per square foot) and is due on the first day of each month and must be received by the City on or before that date, unless otherwise agreed in writing by the parties. If Chevron does not take possession on the 1S` of the month, Che rent shall be pro-rated for the month. A $25.00 late fee will be charged if rent is paid on or after the fifth of the month. 3. Additional rent: The City and Chevron specifically agree that rent includes uniform periodic rent, the $25.00 late charge and any unpaid portion of Che deposit. RENTAL AGREEMENT FOR OFFICE SPACE Page 1 of 11 4. 5. 6. Property taxes: Chevron shall pay prior to delinquency all personal property taxes payable with respect to all property of Chevron's located in the premises and shall provide promptly upon request of the City written proof of such payment. Utilities: Chevron shall be responsible for solid waste (garbage) removal and janitorial services for the premises. The City shall be responsible for normal electrical service for a commercial administrative office setting, snow removal, grounds maintenance and water and sewer services. Maintenance: a. Chevron acknowledges that the office space rented hereunder is in working order and repair, unless otherwise indicated herein. Chevron shall at all times arrange for maintaining and repairing the premises and all equipment, machinery, appliances, furniture and furnishings therein in clean and safe working condition and shall surrender the same, at termination hereof, in as good condition as received, normal. wear and tear excepted. 7 8 b. The City is responsible for major maintenance and repair. a Chevron is responsible for repair/replacement of any damage to the premises above normal wear and tear. Chevron shall have no right to alter, improve or demolish any portion of the premises without the express prior written consent of the City which may not be unreasonably withheld. Purpose: The premises shall be used and occupied by Chevron as business office space and for no other purpose. RENTAL AGREEMENT POR OFFICE SPACB Page 2 of 11 9. Fixtures: Except as is provided below, all additions, fixtures and improvements made or placed by Chevron to or on premises shall immediately become and be the property of landlord and shall remain on and be surrendered with premises as part thereof at expiration of the term, by lapse of time or otherwise; and Chevron will not make any alterations in or additions to premises without written consent of the City being obtained. 10. Trade fixtures: Chevron may install or cause to be installed such equipment and trade and other fixtures as are reasonably necessary for the operation of its business. Such equipment, trade fixtures and other fixtures shall remain personal property, and title thereto shall continue in the owner thereof, regardless of the manner in which same may be attached or affixed to the premises. At termination of the rental agreement, Chevron shall, unless otherwise agreed by the City, remove all equipment and trade fixtures installed by Chevron, provided that the premises are returned to their original condition, less normal wear and tear. 11. Rules and Regulations: The rules and regulations in regard to the building in which space is rented together with such other reasonable rules and regulations as may from time to time hereafter be promulgated by the City shall, during continuance of this rental agreement, be in all things observed and performed by Chevron, and Chevron's agents and servants. 12. Ordinances and statutes: Chevron shall comply with all statutes, ordinances and requirements of all municipal, state and federal authorities now in force, or which may hereafter be in force, pertaining to the use of the premises. RENTAL AGREEMENT FOR OFFICE SPACE Page 3 of 11 13. Indemnification: The City shall not be liable for any damage or injury to Chevron, or any other person, or to any property, occurring on the premises, or any part thereof, or in common areas thereof, unless such damage is the proximate result of the negligence or unlawful act of the City, its agents, or its employees. Chevron agrees to hold the City harmless from any such claims for damages no matter how caused, except for injury or damages for which the City is legally responsible. 14. Insurance: a. Chevron, at the Chevron's expense, shall maintain business liability and premises damage insurance with a single combined liability limit of $1,000,000.00, and a premises damage limit of not less than $1,000,000.00, insuring against all liability of Chevron, its officers, agents, employees, guests, invitees and authorized representatives, arising out of and in connection with Chevron's use or occupancy of the premises. b. The business liability and premises damage insurance acquired by Chevron under this paragraph shall also cover the contractual indemnity obligations of Chevron under paragraph 13 above. The policy shall name the City, any person, firms or corporations designated by the City, and Chevron as "additional insured" and sha1.1 contain a clause that the insurer will not cancel or change the insurance without first giving the City Chirty (30) days prior written notice. The insurance shall be with an insurance company qualified to do business in the State of Alaska with a financial rating of at least "A-" as rated in current Best's Insurance Reports, and a copy of the policy be delivered to the City within twenty (20) days of Chevron's execution of this agreement RENTAL AGREEMENT FOR OFFICE SPACE Page 4 of 11 and a renewal of such policy or replacement thereof at least twenty (20) days prior to the termination of the coverage of such policy. c. Chevron's Fire Insurance: Chevron, at Chevron's expense, shall maintain on all of its personal property, Chevron's imprrovements and alterations, in on or about the premises, a policy of fire and extended coverage insurance, to the extent of at least one hundred percent (100%) of their replacement value. The proceeds of any such policy shall be used by Chevron for replacement of such personal property and the restoration of Chevron's improvements or alterations. d. City's Fire Insurance: The City may, at its election, maintain on the building a policy of fire and extended coverage insurance with vandalism and malicious mischief endorsements, of the type commonly referred to as an "ali risk" policy to the extent of one hundred percent (100%) of full replacement value which may afford coverage for flood, earthquake, sprinkler leakage, or explosion of steam and pressure boilers, as the City may elect. The policy shall provide that any proceeds shall be made payable solely to the City. Chevron shall not use the premises for any purpose, nor do any acC in the premises, which will increase the existing rate of insurance on dle building or cause the cancellation of any insurance policy covering the building, or any part thereof: Chevron shall, at Chevron's expense, comply with any and all requirements pertaining to the premises of any insurance, organization or company, necessary for the maintenance of fire and extended coverage insurance covering the building. RENTAL AGREEMENT FOR OFFICE SPACE Page 5 of 11 e. All policies provided under this section shall provide a waiver of subrogation against the City. f. Notwithstanding Che foregoing, Chevron may satisfy all obligations to obtain insurance through its policy of self-insurance or aself-administered claims program so long as Chevron has a net equity of at least $100 Million. If Chevron elects to self-insure hereunder, its duties, such waiving subrogation rights, will be the same as if actual insurance had been obtained. I5. Personal Property: All personal property of Chevron on the premises shall be at the risk of Chevron only, and the City shall not be liable for any damage thereto. Chevron agrees to arrange for such insurance coverage to its personal property as it deems suitable. 16. Force Majeure: the City shall not be liable for any stoppage of either water, Chevron, lighting, janitor or of any part of mechanical plant of building, not directly due to lack of ordinary care by The City, or arising from riot, strikes, unavoidable accident or casualty, or other like or unlike causes beyond control of the City, or for any stoppage thereof for needful repairs or for improvements, provided the City uses reasonable diligence to resume such service. 17. Anti-assignment: Except in the case where Chevron may wish to assign this Lease or sublet to a Chevron corporate affiliate with Chevron remaining primarily obligated under the Lease, no assignment or sub-rental shall be created hereunder without the express prior written consent of the City, which may not be unreasonably withheld. 18. Destruction: If during continuance of this rental. agreement, premises shall be so injured by fire or other casualty as to be rendered untenable, then, and if such injury be RENTAL AGREEMENT FOR OFFICE SPACE Page 6 of 11 not promptly repaired by the City, it shall be optional with either party hereto to cancel this Agreement by notice in writing to the other party given within 15 days after election of the City not to repair, and in case of such cancellation rent which has become due to date of such fire or casualty shall be paid. Tf the City repairs such injury, rent, or a just and proportionate part thereof, according to nature and extent of injury, shall be rebated until premises have been repaired by the City. 19. Non-waiver: Any failure of Chevron to comply with any one of terms or conditions of this rental agreement or rules and regulations of the City, shall make the whole amount of rent due, and the City, its successors or assigns, may proceed to collect same. Tt is further understood and agreed that the City's remedies hereunder ai-e cumulative and that the City's exercise of any right or remedy due to a default or breach by Chevron shall not be deemed a waiver of, or alter, affect or prejudice any other right or remedy which the City may have under this rental agreement or by law. Neither the acceptance of rent nor any other acts or omission of the City at any time or times after the termination of this rental agreement or of Chevron's rights hereunder shall (1) operate as a waiver of any past or future violation, breach or failure to keep or perform any covenant, agreement, term or condition hereof or to deprive the City of its right to cancel or forfeit this rental agreement, upon the written notice provided for herein, at any time that cause for cancellation of forfeiture may exist, or (2) be construed so as at any future time to estop landlord from promptly exercising any other option, right or remedy that it may have under any term or provision of this rental agreement. RENTAL AGREEMENT FOR OFFICE SPACE Page 7 of 11 20. Default: If Chevron shall fail to pay rent when due, or perform any term or condition hereof, after not less than ten (l0) days' written notice to quit given in the manner required by law, the City, at his option, may terminate all rights of Chevron hereunder, unless Chevron within said time, shall cure such default. In the event of a default by Chevron, the City may elect to: (i) continue the rental agreement in effect and enforce all his rights and remedies hereunder, including the right to recover the rent as it becomes due, or (ii) at any time, terminate all of Chevron's rights of possession hereunder and recover from Chevron all damages it may incur by reason of the breach of the rental agreement, including the cost of recovering the premises, and including the worth at Che time of such termination, or at the time of an award if suit be instituted to enforce this provision, of the amount by which the unpaid rent for the balance of the term exceeds the amount of such rental loss which the Chevron proves could be reasonably avoided. 21. Attorney's Fees: In the event of suit brought on this rental agreement to enforce the rights of either party, including a suit to recover possession of the premises, Che prevailing party shall be entitled to recover its reasonable attorney's fees and court costs from the other party. 22. Binding Effect: Each and every one of the agreements herein contained shall extend to and be binding on the respective successors, heirs, administrators and assigns of the parties hereto. 23. Pets: No pets (except service animals such as seeing eye dogs) may be brought into the. office space rented hereunder without the prior written consent of the City. RENTAL AGREEMENT FOR OFFICE SPACE Page 8 of 11 24. Entry and Inspection: Chevron shall permit Che City or the City's agent(s) to enter the premises at reasonable times and upon reasonable notice for the purpose of making necessary or convenient repairs, or to show the premises to prospective tenants, purchasers or mortgagees. 25. Quiet Enjoyment: Chevron upon fully complying with and promptly petforming all of the items, covenants and conditions of this rental agreement on its part to be performed, shall have and quietly enjoy the rented premises for the terms set forth herein, if its performance of such terms, covenants and conditions continues for such period. 26. Entire Agreement: This rental agreement sets forth the entire agreement of the City and Chevron concerning the rented premises, and there are no other agreements or understanding, oral or written, between the City and Chevron concerning the rented premises. Any subsequent modification or amendment of this rental agreement shall be binding upon the City and Chevron only if reduced to writing and signed by them. 27. Notice: Any notice which either party may or is required to give may be given by mailing the same, postage prepaid, to Chevron aC the premises or to the City at the address shown below or at such other places as may be designated by the parties from time to time. 28. Conflicts of Interest: Neither the City or its employees or agents shall give to or receive from Chevron or its employees or agents any gift, favor or entertainment of significant value in connection with this Lease. Authorized representatives of Chevron may examine the records of the City relevant to the Lease and the intent of this clause for the sole purpose of determining compliance herewith. RENTAL AGREEMENT FOR OFFICE SPACE Page 9 of 11 IN WITNESS WHEREOr, the parties hereto have executed this rental agreement the day and year set forth below. CITY OF KENAI By: Rick R. Koch City Manager CHEVRON NORTH AMERICA EXPLORATION AND PRODUCTION, a division of Chevron U.S.A. Inc., a Pennsylvania corporation By: Approved as to form: Cary R. Graves, City Attorney RENTAL AGREEMENT FOR OFFICE SPACE Page 10 of 11 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT. ) THIS IS TO CERTIFY that on this day of 2006, RICK R KOCH, Kenai City Manager, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City, Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2006, CHEVRON., being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: RENTAL AGREEMENT FOR OFFICE SPACE Page 11 of 11 .~ ~ - ~e°t t~iecG'~of'/ KENAI~ SKA "V'fla e wit~t a Past, Gi wit~i a -~p .~ ~' 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 (FAX: 907-283-3014 !~I~~i 7992 MEMO: TO: City Council /l~j FROM: Rick Koch, City Manager ~ ~ DATE: February 13, 2007 SUBJECT: Vintage Pointe Housing Rental Rates The purpose of this correspondence is to provide information to you regarding the administration's intent to increase the rental rates at Vintage Pointe as a component of the proposed FY 08 budget. By submitting this information to you at this time it is our intent to accomplish the following: 1. Determine the mood of the Council regarding this increase. 2. Provide as much notice as possible to the tenants at Vintage Pointe. 3. By informing the tenants in advance of the proposed rent increases they have the ability to discuss this matter with the City Council.. At present the rents charged at Vintage Pointe are significantly below the market (15%- 18%) for comparable senior housing, or at Least $ 100 per month. The last rent increase was in 2005, and we have absorbed a substantial (30%) increase in the natural gas utility since that time. It is my recommendation that the rents be increased by $ 50 in FY 2008 and an additional $ 50 in FY 2009. This will result in the rents at Vintage Pointe being priced somewhat below the comparable market, but within a reasonable range. Each of these proposed rent increases would generate $ 23,400 in additional revenues. Thank you for your attention in this matter. Should you have any questions please contact me at your convenience. MEMORANDUM TO: Rick Koch, City Manager Larry Semmens, Finance Director FROM: Rachael Craig, Senior Center Director DATE: February 7, 2007 REFERENCE: Vintage Pointe Housing Rental Rates Over the past five years there have been six housing complexes for seniors to choose for apartment living. Five of the housing complex rental rates are based upon a percentage of a person's income. Until recently Vintage Pointe Manor has been the only senior housing facility that does not base the rental rate on income. Our rental rates have stayed below the average Kenai Peninsula Borough rental market rate, while utilities and maintenance costs have increased substantially. As you well know, there has been a 30% increase in natural gas costs alone. As I have studied rental rates this year, I have compared Vintage Point Manor with newly constructed senior apartment complexes in the surrounding area. Seniors 55 years of age and older qualify for these apartments. Sterling Senior Center has built a 10 unit apartment complex, "Moose River Manor." None of these apartment rates are based on income. A one- bedroom, 767 square foot rental unit in this complex rents for $675 plus electricity and atwo-bedroom 954 square foot apartment rents for $750. Sterling Senior Center has secured financing to build an additional 10 more senior independent housing units with garages. They have a waiting list of 20. Nikiski Senior Center has completed "Nikiski Senior Shore" an 8 unit independent housing facility. The apartments are not subsidized. Aone-bedroom, 776 square foot apartment rents for $675 and the two-bedroom, 949 square foot apartment rents for $775 plus electricity. Each apartment has a garage. Cooper Landing Seniors, Inc. has built "Eagle's View" in Snug Harbor Senior Housing. This 6-plex unit is currently filled, with another 6-plex to be built in the spring. Each unit has an oversized heated garage. The one bedroom. apartment rents for $780 and the two-bedroom apartment rents for $895 this includes everything but the phone. They have a waif list but were unable to give me a number of how many were on the list at the time I called. The new 2006 AHFC rental market survey reflects the average rental rate in the Kenai Peninsula Borough to be $752. An average one-bedroom apartment rents for $647 and an average 2-bedroom apartment $892. Both include some utilities. The trend is to have senior housing a part of a senior campus within the local community. The state is pushing for "Aging in Place" and to help seniors stay within their commmuty. As I analyze Vintage Pointe Manor, I observe the following: • The average age of our residents living at Vintage Pointe is 82 years old. We have 35 singles (30 single women and 5 single men) and 5 couples (including the caretaker). • Our secured building has a caretaker that lives on the premises 24/7, provides office hours from 10:00a.m. until 2:OOp.m. and available for emergencies if needed 24 hours daily (this does not mean health emergencies). • Rates vary depending upon the size of apartment. Our average one bedroom apartment is 627 square feet and our average 1 y2 bedroom is 826 square feet, two- bedroom is 839 square feet. • The rental rates include everything but electricity and phone. Our average 1 bedroom apartment currently rents for $556 and our average 1 % and 2 bedroom rents for $662. • The average rates charged for apartments at Vintage Pointe Manor are $144 to $166 less than the average rates charged at the senior apartments in our area. • Our residents can make use of "common areas" on each of the floors for their own personal use. First floor has a solarium, an inside sitting area and porch area overlooking the river, second floor has a full kitchen with dining/living room area overlooking the river, an exercise and beauty shop area, and third floor has a "card room" besides an area for sitting and visiting area overlooking the Kenai River. • Our building is maintained with utmost care. • Our current waiting list is 139. When an apartment comes available we always find someone on the list ready to move in. We never have had to advertise acid seniors on the list, not wanting to move into our facility when an apartment becomes available, request to be placed at the bottom of the list. • Residents believe it is an advantage living in a secured building and being comlected to the senior center with the opportunity to participate in the activities and meal program. • Residents enjoy living at Vintage Pointe Manor. Many state the only draw back our facility has is no garage and not enough two-bedroom apartments. With the above survey and increase in utility costs over the last two years, I recommend raising our rental rates $100.00 per month. This will be a challenge for many of our current residents. Seniors have chosen to live in our facility because of the wonderful amenities, including closeness of the senior center and thus have balanced their ability to pay Vintage Pointe rental rates vs. lower-income housing. If we do raise the rental rates, I am somewhat apprehensive of the possibility of losing some of our senior tenants who might not be able to afford the increase in rents. The simple reality is the City of Kenai is collecting rents well below the average rates for this area, while utilities and building maintenance costs are increasing at a startling rate. As a fiscally responsible provider of secure senior housing, the facts do justify raising our rental fees for our aging and growing senior population. ... ;~~_ ~~ ~e d `. E&e c[ty o f I(ENA1~ SKA r/V a!!Gt'gC LUlti1 Q Past, GG 1.1, N J ~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 /FAX: 907-283-3014 MEMO: TO: City Council ,,~ FROM: Rick Koch, City Manager DATE: February 13, 2007 SUBJECT: Public Opinion Poll The purpose of this correspondence is to discuss and receive direction from the Council regarding a public opinion poll. Attached please find eight questions for your review. T think we want to keep it at 10 questions or less. The cost is $ 10-$15 per respondent. For the City of Kenai to have a poll conducted with a +/- 6% maa~gin of error, 267 respondents would need to be polled. If you use the high estimate of $ 15 per respondent, it results in a cost of $ 4,005. So I would propose a budget of $ 5,000 for the poll. 1~~~~.1 7992 Possible Questions for Community Research Poll. Are you a resident of the City of Kenai? No-terminate interview. Are you at least 18 years of age, No -terminate interview. 2. Do you support a project to halt bluff erosion in Kenai? Support Strongly Somewhat Support Neutral Somewhat Oppose Oppose Strongly A project to halt the erosion of the bluff in Kenai is estimated to cost $ 10 million - $ 12 million. A $ 2 million general obligation bond would increase property tax by $ 34 per $ 100,000 of assessed value. Would you support a bond proposition in the amount of $ 2 million to support the project, if the proceeds of the bond sale could only be expended when the remainder of the project funding has been secured from other sources? 4. Do you support a project to expand the City of Kenai Public Library? Support Strongly Somewhat Support Neutral Somewhat Oppose Oppose Strongly 5. An expansion of the Kenai City Library is estimated to cost $ 5 million. A $ 2 million general obligation bond would increase property tax by $ 34 per $ 100,000 of assessed value. Would you support a bond proposition in the amount of $ 2 million to support the project, if the proceeds of the bond sale could only be expended when the remainder of the project funding has been secured from other sources? 6. The city is in the process of developing commercial and residential subdivision development standards. Do you favor requiring paved streets in new residential subdivisions? 7. Do you support paving gravel-surfaced roadways throughout the City of Kenai? Support Strongly Somewhat Support Neutral Somewhat Oppose Oppose Strongly 8. There are a number ofgravel-surfaced roadways throughout the City. A $ 2 million general obligation bond would increase property tax by $ 34 per $ 100,000 of assessed value. Would you support a bond proposition in the amount of $ 2 million to fund projects to pave some of these roadways? iEmmmIIIl ll~IIl~ll~t0 ~ IImff®mmma4ii®sa II@~mnl TO: Mayor, City Council Members, City Manager & Administration FROM: Bob Molloy „~! ti_ DATE: 02J15/07 ~2/ SUBJECT: Borne Comrne~ts By Library Commissioners & Friends I received several comments on the proposed question on the Library for the scientific telephone poll, Commissioner Carol Brenckle: "The question as it appears in the "newest" draft is certainly an improvement. I notice that the proposed question omits any reference to a "new" library. I still believe it is important to ascertain "the will of the people"! Do the residents of Kenai want a "new" library or do they support an "expansion" of the existing library? The question as it is written is unduly restrictive." Tom Walker Friends of the Librarv: He would like the question to address a couple of the reasons that we are looking for expansion; specifically that the building is not fully handicapped accessible and ADA compliant and that we do not have a dedicated space for children's programs nor a quiet space since our conference room does double duty as a program space. Another Friend of the Library: The question is getting too complicated. 2 separate questions, one asking about a new facility and one about an expansion, are too much for a telephone poll. I support a single question like this one: "Would you support a bond proposition in the amount of $2 million to support a new or expanded Kenai Community Library if the proceeds of the bond sale would only be expended when the remainder of the project funding has been secured from other funding sources?" Commissioner Kathy Heuss: "If appropriate, I would tike to see a question regarding a dedicated sales tax for a project, with the sales tax having a specific time (i.e. four years). It might read something like this: "Would you support a dedicated time-specific sales tax to fund a capital project?" I realize that this may not even be an option, but I think it is worth exploring." Commissioner Peters: 'The library question looks fine to me." The above comments are for your -1- '°l/ilfa e witti a Past, Gi wig .~ ,~, ~~ Ate, 210 Fidalgo Avenue, Kenai, Alaska 9961 ~i-i iy4 ~~ „ --' Telephone: 907-283-7535 /FAX: 907-283-3014 l'I~fl -_ _...=_. 7992 fhe ee~af KENA~ SKA MEMO: TO: City Council FROM: Rick Koch, City Manager DATE: February 14, 2007 SUBJECT: Expansion of Kenai Municipal Cemetery The purpose of this correspondence is to discuss the above referenced subject and request direction from the Council. Attached please f nd an aerial photograph showhlg U.S. Survey 4969, an 11.29 acre parcel that is owned by the City. The existing cemetery utilizes approximately 3.49 acres of this parcel. As you can see, the approximately 7.80 acres that is not being used for cemetery purposes contains an airport navigation aid, is maintained as a runway clear-area, and contains a drainage swa]e serving the south portion of the airport reserve. As a point of reference, north is to the top of the attached aerial photograph. The Parks & Recreation Commission has discussed the expansion of the existing cemetery and creation of a new cemetery. Their recommendation is for the City to pursue a new cemetery located to the west of the existing cemetery. They have specifically identified three lots presently owned by the Airport Lands System. These lots are depicted on the attaclnnent as being bordered by a blue-fine and the number 1.25 showing the acreage of each lot. These lots fall within the airport reserve, and the runway protection zone (RPZ) and will very likely never be permitted to support substantial development. The lots could however, be used for a new cemetery. These lots are undeveloped and separated from First Avenue and Floatplane Basin Road vertically (+/- 20'), providing visual separation from the roadways. Members of the Council have expressed interest in expanding the cemetery to the east. I believe the airport would oppose expansion hz this direction. This is an area that also exhibits significant snow drifting. Administration recommends pursuing a property exchange with the airport lands system. The portion of U.S. Survey 4969 that is not presently in cemetery use, in reality cannot be used for any future purpose, and only has value to the airport. The three lots owned by the airport lands system have little or no value to the airporC for development. If Council agrees with the administration's recommendation we will pursue a land exchange with the airport. Kenai Cemetery Parcel U.S. Survey 4969 KENAI AIRPORT COMMIS FEBRUARY 8,2007 KENAI CITY COUNCIL CH2i 7:00 P.M. AGENDA ITEM 1: CALL TO ORDER AND ROLL CALL YTEM 2: ELECTION OF CHAIR AND VICE-CHAIR ITEM 3: AGENDA APPROVAL I-~ ITEM 4: APPROVAL OF MEETING SUMMARY -- November 9, 2006 ITEM 5: PERSONS SCHEDULED TO BE HEARD ITEM 6: OLD BUSINESS ITEM 7: NEW BUSINESS a. Recommendation -- Suggested Amendments to Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. b. Discussion -- Minimum Standards for Airports c. Discussion -- Kenai Municipal Airport Supplemental Planning Assessment, Phase 2 Report. YTEM S: REPORT a. Commission Chair b. Airport Manager a City CouncIl Liaison ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION YTEMS a. Kenai City Council Meeting Action Agendas for January 3 and 17, 2007. b. 12/06 & 1/07 Kenai Municipal Airport Enplanement Report. ITEM 12: ADJOURNMENT KENA% AIRPORT COMMISSION FEBRUARY 8, 2007 KENAi CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER & ROLL CALL Chair Knackstedt called the meeting to order at approximately 7:07 p.m. Roll was confirmed as follows: Members present: C. Versaw, L. Porter, J. Bielefeld, E. Mayer, H. Knaekstedt, J. Zirul Members absent: D. Haralson Other present: Council Member Molloy, Airport Administrative Assistant Bondurant ITEM 2: ELECTION OF CHAIR AND VICE-CHAIR MOTION: Member Versaw MOVED to nominate Henry Knackstedt as Chair and Member Bielefeld SECONDED the motion. There were no objections. SO ORDERED. MOTION: Member Knackstedt MOVED to nominate Jim Bielefeld as Vice Chair and Member Versaw SECONDED the motion. There were no objections. SO ORDERED. YTEM 3: AGENDA APPROVAL MOTION: Commissioner Porter MOVED to approve the agenda as presented and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: APPROVAL OF MEETING SUMMARY -- November 9, 2006 MOTION: Commissioner Bielefeld MOVED to approve the November 9, 2006 meeting summary and Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. ITEM 5: PERSONS SCHEDULED TO BE HEARD -- None ITEM 6: OLD BUSINESS -- None YTEM 7: NEW Y3USYNESS 7-a. Recommendation -- Suggested Amendments to Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. Commission believed the current policy worked well and wished it remain as currently written. MOTION: Member Versaw MOVED to keep policy as currently written and Member Mayer SECONDED the motion. There were no objections. SO ORDERED. 7-b. Discussion -- Minimum Standards for Airports Commission questions included: • Was this asub-regulation to the regulations? • How does this relate to City Code? • Does the airport need this? • Are there certain things needed that are airport specific? MOTION: Commissioner Zirul MOVED the Commission review all the material and the Advisory Circular and bring findings back to the next meeting and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. 7-c. Discussion -- Kenai Municipal Airport Supplemental Planning Assessment, Phase 2 Report. It was noted City Manager Koch supplied a report to the City Council. on the status of the Supplemental Planning Assessment. The Commission wished to know the rationale for the five recommendations not accepted by Administration for implementation. Council Member Molloy indicated Council wanted to meet in a joint work session with the Commission to discuss the supplemental plan and suggested either March 7 or 8. Due to absences on March 8~~, the Commission recommended upon meeting April 12tH. MOTION: Commissioner Bielefeld MOVED to request a report from Administration as to why the five recommendations were not accepted by Administration for implementation, which would be discussed at April's meeting in conjunction with a Council work session and Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. ITEM 8: REPORT AIRPORT COMMISSION MEETING FEBRUARY 8, 2007 PAGE 2 8-a. Commission Chair -- Knackstedt visited the new cafe and said things appear to be going well and relayed concerns the short-term parking lot was confusing. 8-b. Airport Manager -- Bondurant handed out a map showing current taxiway signage and asked Commission to review the map before the next meeting in preparation for recommendations on renaming the taxiways. Knackstedt noted it would be helpful if representatives from Wince-Corthell-Bryson and FAA could attend the meeting. 8-c. City Council Liaison -- Council Member Molloy reported on issues concerning the airport discussed at the February 7, 2007 Council meeting. ITEM 9: ITEM 10: ITEM 11: 11-a. 11-b. ITEM 12: MOTION: COMMISSIONER COMMENTS AND QUESTIONS -- None PERSONS NOT SCHEDULED TO BE HEARD -- None INFORMATION ITEMS Kenai City Council Meeting Action Agendas for January 3 and 17, 2007. 12/06 & 1/07 Kenai Municipal Airport Enplanernent Report. ADJOURNMENT Member Versaw MOVED to adjourn and Member Bielefeld SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting adjourned at approximately 8:40 p.m. Meeting summary prepared and submitted by Jenifer C. Lockwood, Deputy City Clerk AIRPORT COMMISSION MEETING FEBRUARY 8, 2007 PAGE 3 ~>~~~~ M1~M® II:m~r®~~m~~lfl®~l IItrc~mm TO: Mayor, City Council Members, City Manager & Administration FROM: Bob Molloy 2~i~ DATE: 02/09/07 ~~``~~'' SUBJECT: Airport Commission's Recommendations on proposed Joint Work Session At its 02/08/07 meeting, the Arport Commission discussed Council 02/07/07 Agenda Item H-8, Schedule Work Session/Kenai Municipal Airport Suppemental Planning Assessment, Phase 2 Report. After discussion, the Airport Coirunission's recommmendations are: 1. The Airport Commission would like to have the joust work session be scheduled for the Airport Commission's Thursday, April 12, 2007 meeting at 7:00 PM in Cotmcil chambers, with this discussion to be the only business item on the Commission's agenda for that meeting. Comxnissioner Zirul would like to participate in the joint work session but is out of state dtuing the week of the March 7, 2007 Council meeting that Council had been considering for the joint work session. 2. It will facilitate discussion if the City Administration provides a memo with rationales and discussion concerning the five consultant's (5) recommendations that Administration has determined not to implement, with the memo to be provided to Council and the Airport Commission sufficiently in advance of the joint work session for adequate time for consideration. 1- KENAY HARBOR COMMISSYON MEETYNG FEBRUARY 12, 2007 CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA YTEM 1: CALL TO ORDER 8c ROLL CALL ITEM 2: ELECTION OF CHAIR AND VICE-CHAIR ITEM 3: AGENDA APPROVAL ITEM 4: APPROVAL OF MEETING SUMMARY -- a. October 9, 2006 b. December 11, 2006 c. January 8, 2007 ITEM 5: PERSONS SCHEDULED TO BE HEARD ITEM 6: OLD BUSINESS YTEM 7: NEW BUSINESS a. Discussion -- Kenai River • Impaired Waterbody Designation • Water Quality Monitoring Studies/Potential Fecal Coliform Pollution b. Discussion -- Meeting Schedule c. Discussion -- Budget ITEM 8: REPORTS a. Public Works Manager b. Dock Foreman c. City Council Liaison STEM 9: COMMYSSIONER COMMENTS/QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM I1: INFORMATION a. Kenai City Council Action Agendas of January 3 and 17, 2006. b. Parks & Recreation Department Organizational Chart ITEM 12: ADJOURNMENT KENAI HARBOR COMMYSSYON MEETING FEBRUARY 12,2007 CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR TOM THOMPSON, PRESIDING YTEM 1: CALL TO ORDER & ROLL CALL Chair Thompson called the meeting to order at approximately 7:05 p.m. The roll was confirmed as follows: Commissioners present: G. Foster, S. Romain, and'T. Thompson Commissioners absent: B. Osborn, R. Canady Others present: Council Member M. Boyle and Parks & Recreation Director B. Frates Due to the lack of meeting a quorum, the meeting was closed. %TEM 2: ELECTION OF CHAIR AND VICE-CHAIR ITEM 3: AGENDA APPROVAL ITEM 4: APPROVAL OF MEETING SUMMARY -- a. October 9, 2006 b. December 11, 2006 c. January 8, 2007 ITEM 5: PERSONS SCHEDULED TO BE FIEARD ITEM 6: OLD BUSINESS ITEM 7: NEW BUSINESS a. Discussion -- Kenai River • Impaired Waterbody Designation • Water Quality Monitoring Studies/Potential Fecal Coliform Pollution b. Discussion -- Meeting Schedule c. Discussion -- Budget ITEM 8: REPORTS a. Public Works Manager b. Dock Foreman c. City Council Liaison ITEM 9: COMMISSIONER COMMENTS/QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD YTEM 11: a. Kenai City Council Action Agendas of January 3 and 17, 2006. b. Parks & Recreation Department Organizational Chart ITEM 12: ADJOURNMENT Due to the lack of quorum, the meeting was closed at approximately 7:10 p.m. Meeting summary prepared and submitted by: Carol L. Freas, City Clerk HARBOR COMMISSION MEETING FEBRUARY 12, 200'7 PAGE 2 I-~ KENAI LIBRARY COMMISSION KENAI COUNCIL CHAMBERS FEBRUARY 13, 2007 7:00 P.M. AGENDA YTEM 1: CALL TO ORDER 8c ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY -- January 9, 2007 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion -- Proposed Library Expansion/Letters of Support Campaign ITEM 6: NEW BUSINESS a. Discussion -- Meeting Schedule b. Discussion -- Fourth of July Parade YTEM 7: REPORTS a. Director b. Friends of the Library c. City Council Liaison ITEM 8: COMMISSION COMIIHNTS/QUESTIONS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION a. Kenai City Council Action Agendas of January 3 and 17, 2007. ITEM 12: ADJOURNMENT KENAI LIBRARY COMMISSION KENAI COUNCIL CHAMBERS FEBRUARY 13, 200? 7:00 P.M. CHAIR BOB PETERS, PRESYDING MEETING SUMMARY ITEM I: CALL TO ORDER 8c ROLL CALL Chair Peters called the meeting to order at approximately 7:02 p.m. Roll was confirmed as follows: Commissioners present: K. Heus, E. DeForest, B. Peters, C. Brenckle Commissioners absent: R. Gilman, E. Bryson, and C. Cook Others present: Council Member R. Molloy, Director M. Joiner A quorum was present. ITEM 2: AGENDA APPROVAL Council Member Molloy requested a discussion be added as Item 5-b, Possible Questions for Community Research Poll. MOTION: Coxrunissioner Brenckie MOVED to approve the agenda with the addition of Item 5-b as requested. Commissioner Heus SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUNIMARY -- January 9, 2007 MOTION: Commissioner Heus MOVED to approve the meeting summary as presented and Commissioner Brenckle SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None. ITEM 5: OLD BUSINESS 5-a. Discussion -- Proposed Library Expansion/Letters of Support Campaign Discussion took place related to the following issues: • Heus letter included in the packet suggesting a new 20,000 square foot building be built which would be comparable in cost of an addition and renovation of the existing library. It was noted, councll was not receptive to new site construction. • Letter of support campaign was discussed briefly and the Commission may consider a campaign. 5-b. Discussion -- Public Opinion Poll Questions The Commission reviewed draft questions provided by Council Member Molloy. Members were requested to forward additional questions to him to include in the February 21, 2007 council meeting packet who would review the questions and consider whether to include them in the poll. Some suggestions made were: • Include the mil equivalent in Question 3. • Add an alternative question related to dedicated sales tax. • Break the question into parts, asking whether preference would be for a new library or expansion. ITEM 6: NEW BUSINESS 6-a. Discussion -- Meeting Schedule Commission reviewed the existing policy and requested no changes. 6-b. Discussion -- Fourth of July Parade Director Joiner reported she was soliciting support and volunteers to participate in a book cart drill team for the parade. ITEM 7: REPORTS 7-a. Director -- Director Joiner reviewed a written report distributed to the members. 7-b. Friends of the Library -- Commissioner Heus reported on the "Friends" activities, i.e. membership drive, annual letter, membership to Kenai Chamber of Commerce, etc. 7-c. City Council Liaison -- Council Member Molloy commended the director and staff for receiving the Public Library Association award and reviewed actions taken by Council at its February 7 meeting. ITEM 8: Heus -- Thanked Molloy for attending and distributing the poll questions for review. Brenckle -- Was very excited about the award received. Peters -- Thanked Molloy for attending for Council Member Swarner. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD LIBRARY COMMISSION MEETING FEBRUARY 13, 2007 PAGE 2 Thoxaas Walker -- Suggested the poll question explain the purpose of the poll. ITEM 10: INFORMATION 10-a. Kenai City Council Action Agendas of January 3 and 17, 2007. ITEM 11: ADJOURNMENT MOTION: Commissioner Brenckle MOVED to adjourn and Commissioner Heus SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting adjourned at approximately 8:44 p.m. Meeting summary prepared and submitted by: Carol L. Freas, City Clerk LIBRARY COMMISSION MEETING FEBRUARY 13, 2007 PAGE 3 I-b CITY OF KENAI PLANNING & ZONING COMMISSION AGENDA CITY COUNCIL CHAMBERS February 14, 2007 - 7:00 p.m. 1. CALL TO ORDER: a. Roll Call b. Agenda Approval. c. Excused Absences d. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal. sequence on the agenda as part of the General Orders. 2. *APPROVAL OF MINUTES: a. *January 24, 2007 3. SCHEDULED PUBLIC COMMENT: 4. CONSIDERATION OF PLATS: 5. PUBLIC HEARINGS: a. PZ07-08 - An application to rezone multiple parcels in the City of Kenai to the Central Mixed Use zone. The area includes parcels currently zoned General Commercial, Central Commercial, Light Industrial and Suburban Residential. The area is north and south of the Kenai Spur Highway and includes properties between Bridge Access Road and Upland Street and properties along Main Street Loop, North Willow Street and Airport Way. A map of the area is available at City Hall or on the City's web page at http://www.ci.kenai.ak.us. Application submitted by the City of Kenai's Planning and Zoning Commission. 6. OLD BUSINESS: a. PZ07-OS -Preliminary plat for Williams Subdivision & ROW Easement Vacation (A resubdivision of Government Lot 94 located within the SE'/a Section 34, T6N, R11W, S.M.). Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. (Postponed from 1/24/07.) 7. NEW BUSINESS: a. *PZ07-09 -Application for a home occupation permit for a daycare for the property known as Lot 7, Block 2 Bush Lanes Subdivision (1228 Lilac Lane), Kenai, Alaska. Application submitted by Tammy Christin, 1228 Lilac Lane, Kenai, Alaska. 8. PENDING ITEMS: 9. REPORTS: a. City Council b. Borough Planning c. Administration 10. PERSONS PRESENT NOT SCHEDULED: 11. INFORMATION ITEMS: a. LandscapeJSite Plan - Lowe's b. Zoning Bulletin (1/15/07) c. Extraction of Natural Resources Annual Report d. 2006 Code Enforcement Suimnary 12. COMMISSION COMMENTS & QUESTIONS: 13. ADJOURNMENT: CITY OF KENAI PLANNING & ZON%NG COMMISSEON FEBRUARY 14, .2007 7:00 P.M. KENA% CITY COUNCIL CHAMBERS CHAIRMAN JEFF TWAIT, PRES%DYN~ MINUTES ITEM 1: CALL TO ORDER Chairman Twait called the meeting to order at 7:00 p.m. 1-a. Roll Call The roll was taken by Contract Secretary Roper and confirmed as follows Commissioners present: T. Lewis, J. Jenckes, R. Fullinck, S. Romain, R. Wells, J. Twait, P. Bryson Others present: Council Member R. Ross, City Planner M. KebschuII, Contract Secretary B. Roper A quorum was present. 1-b. Agenda Approval Chairman Twait noted a correction to the agenda, Item 2-a, the date should be January 24, 2007. MOTION: Commissioner Fullinck MOVED to approve the agenda with the noted correction. Commissioner Lewis SECONDED the motion. There were no objections. SO ORDERED. 1-c. Consent Agenda MOTION: Commissioner Jenckes MOVED to approve the consent agenda and Commissioner Wells SECONDED the motion. There were no objections. SO ORDERED. %TEM 2: APPROVAL OF MINUTES -- January 24, 2007 Approved by consent agenda. ITEM 3: SCHEDULED PUBLIC COMMENT -- None ITEM 4: CONSIDERATION OF PLATS -- None ITEM 5: PUBLYC HEARINGS 5-a. PZ07-OS - An application to rezone multiple parcels in the City of Kenai to the Central Mixed Use zone. The area includes parcels currently zoned General Commercial, Central Commercial, Light Industrial and Suburban Residential. The area is north and south of the Kenai Spur Highway and includes properties between Bridge Access Road and Upland Street and properties along Main Street Loop, North Willow Street and Airport Way. A map of the area is available at City Hall or on the City's web page at http://www.ci.kenai.ak.us. Application submitted by the City of Kenai's Planning and Zoning Commission. City Planner Kebschull noted the following: • The proposed rezone is a culmination of approximately two years of meetings for the Commission. • It is an application by the Commission to rezone a large area in the central downtown area to Central Mixed Use. • The zone was developed at the recommendation of the Commission after several work sessions and after reviewing the goals of the Comprehensive Plan. • The proposed rezone meets the criteria of the code for an amendment to the official zoning map. • The proposed rezone encompasses an area containing 329 parcels and approximately 241.47 acres. • Notices were sent to all properly owners in the proposed area and there was minimal comment regarding the rezone; those who responded were comfortable with the change. • Staff recornrnended approval. Twait read the rules pertaining to public comment then opened the public hearing. John J. Williams, P.O. Bos 459, Kenai, Alaska 99611 -- Williams noted he owns property in the Old Town area asked if the new zone would allow the same use on his property, i.e., office space, small business and light retail? City Planner Kebschull indicated that it would not be affected. Williams also asked if the lot size would be a hindrance if one wanted to build in the future? Kebschull responded that if one wanted to build, the lot would be considered non-conforming but could be built on if the setbacks were met and a site plan provided. Kebschull added, if those items could not be met, the applicant could apply for a variance. It was clarified the fire safety requirements remained in place. Rita Smagge, Kenaitze Yndian Tribe, Kenai, Alaska -- Ms. Smagge stated she was representing the Kenaitze Indian Tribe and indicated they had property in the Old Town area. It was determined the property was not affected by the rezone. The public comment portion of the meeting was closed. PLANNING & ZONING COMMISSION MEETING FEBRUARY 14, 2007 PAGE 2 MOTION: Coxmnfssioner Romain MOVED to approve PZ07-08 and Commissioner Jenckes SECONDED the motion. VOTE: Lewis Yes Jenckes Yes Fullinck Yes Romain Yes Wells Yes Twait Yes B son Yes MOTION PASSED UNANIMOUSLY. ITEM 6: OLD BUSINESS 6-a. PZ07-05 -Preliminary plat for Williams Subdivision & ROW Easement Vacation (A resubdivision of Government Lot 94 located within the SE ~/4 Section 34, T6N, R11W, S.M.) Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. (Postponed from 1 /24/07.) Kebschull referred to the staff report included in the packet and noted the following: • This item was postponed from the January 24U~ meeting at the request of the property owner. • Administration believed the plat was formalizing a vacation that was approved in 2005. The applicant's surveyor advised that was not the case and the vacation process was started again. • In 2005, the 33-foot right of way easement vacation was approved but the City required a 15-foot utility easement; the utility easement was being retained to support a future expansion of the City's water system; the water system was constructed on a grid system for future expansion; and, the system allows for an expansion from Highbush Lane to Baker Street in the area of the proposed; vacation. • Since the vacation was again being initiated, the Commission's comments would be forwarded to the Borough who will approve or deny the vacation. If the request is approved by the Borough Planning Cormmission, the City Councff would have thirty days to veto the decision. • Administration's recommendation to Council would be to deny the vacation if the 15-foot easement would not be dedicated. Chairman Twait opened the meeting for public comment. John J. Williams, P.O. Box 459, Kenai, Alaska -- Williams noted the following:: • He believed it would be too costly to install a water system in that area do to the contours of the land and the easement then. unnecessary. • He requested the Commission review the issue from his perspective and withdraw the 15-foot utilityeasement requirement and then return the plat to the Borough for total vacation. .PLANNING & ZONING COMMISSION MEETING FEBRUARY 14, 2007 PAGE 3 • The easement would not cause an economic issue, however the city had encroached on the easement. The public hearing portion of the meeting was closed. Commissioner Bryson explained he will be voting on this issue at the Borough level and therefore, would abstain from voting at the city level. Discussion following related to the request for vacation of the 15-foot utility easement with comments including: • Kebschull provided a photo which indicated the grid and how the water line would be placed if there was ever a need. • Kebschull indicated this was an unusual situation as normally the vacation would go to the Borough first and if it approved, would then be forwarded to the City Council for consideration. • Williams agreed and noted he would discuss the process with his surveyor. AMENDMENT TO MAIN MOTION: Cormmissioner Lewis MOVED to amend the main motion by including staff recommendations that the plat must be corrected to show the 15-foot utility easement along the south property line. Commnissioner Jenckes SECONDED the motion. VOTE ON AMENDED MOTION: Lewis Yes Jenckes Yes Fullinck Yes Romain Yes Wells Yes Twait Yes B son Abstain MOTION PASSED UNANIMOUSLY. VOTE ON MAIN AMENDED MOTION: Lewis Yes Jenckes No Fullinck Yes Romain No Wells No Twait Yes B son Abstain MOT%ON FAILED. ITEM ?: NEW BUSINESS 7-a. PZ07-09 -Application for a home occupation perrnit for a daycare for the property known as Lot 7, Block 2 Bush Lanes Subdivision (1228 Lilac Lane), Kenai, Alaska. Application submitted by Tammy Christin, 1228 Lilac Lane, Kenai, Alaska. PLANNING & ZONING COMMISSION MEETING FEBRUARY 14, 2007 PAGE 4 Approved by consent agenda ITEM 8: PENDING ITEMS -- None ITEM 9: CODE ENFORCEMENT -- None ITEM 10: REPORTS 10-a. City Council -- Council Member Ross reviewed the acfion agenda of the February 7, 2007 City Council meeting. 10-b. Borough Planning -- Bryson provided a report based on actions taken at the Borough's February 12, 2007 Planning meeting. 10-c. Administration -- City Planner Kebschull reported the following: • Planning & Zoning training was being made available for Commissioners and requested anyone interested contact her. Commissioners Lewis and Fullinck advised they would attend and Commissioners Wells and Romain stated they would contact Kebschull with their decision. • The home occupation approved by consent agenda will come before the Commission for a Conditional Use Permit at the next meeting. ITEM 11: PERSONS PRESENT NOT SCHEDULED -- None ITEM 12: INFORMATION ITEMS 12-a. Landscape/Site Plan - Lowe's 12-b. Zoning Bulletin (1/15/07) 12-c. Extraction of Natural Resources AnntYal Report 12-d. 2006 Code Enforcement Summary YTEM 12: COMMISSION COMMENTS & QUESTIONS Commissioner Jenckes resigned his seat on the Commission, effective immediately. Commissioner Wells stated he discussed a junk ordinance with Mayor Porter and would like to have the email he received from staff provided to the Commission for their review. City Planner Kebschull noted she would forward the email and documentation, however, the ordinance did not affect Title 14. She also explained, although the Commission has no authority outside of Title 14, Council could request through administration the Coirunission review and comment. Kebschull was requested to include the issue as a discussion item on the next meeting agenda. ITEM 13: ADJOURNMENT PLANNING & ZONING COMMISSION MEETING FEBRUARY 14, 2007 PAGE 5 MOTION: Commissioner Fullinck MOVED to adjourn and Commissioner Lewis SECONDED the motion. There were no objections. SO ORI3ERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:15 p.m. Minutes transcribed and prepared by: Barbara Roper, Contract Secretary PLANNING & ZONING COMMISSION MEETING FEBRUARY 14, 2007 PAGE 6 I-b James R Jenekes 616 Maple Dr. Kenai, AK 99611 907-283-5244 Carol L. Preas Kenai City Clerk 210 Fidalgo Avenue Kenai, Alaska. 996].1 907-283-7535 Dear Carol, ~_w ...~ r ~~ FEB f 5 2001 ___--~---~_m _...__.....5 f `~ 9 r ~ ~~~~rj'~ February 14, 2007 Pm sorry to tell you that I must resign my position wiT1i the Planning and Zoning Commission. Pressing family matters make it difficult for me to continue with U1e commission at this time. I would like my resignation to be effective at the end of the regularly scheduled commission meeting on the 14th of Iebruary 2007. Sincerely, ~/ MEMORANDUM To: Rick Koch, City Manager From: Rachael S. Craig, Senior Center Director Date: February 5, 2007 Subject: January Monthly Report Total number of days rented in January 2006: 2 Total January Meal Count 2007 Served: Total Congregate Meals Served: 1,365 Total Home Meals Served: 1,651 Total Non-Seniors: 13 Total January Meal Count 2006 Served: '1'otai Congregate Meals Served: 1,228 Total Home Meals Served: 1,469 Total Non-Senior Meals: 10 2°d Quarter ending December 2006: Assisted Transportation 26 Consumers 1 New Client Unassisted Transportation 51 Consumers 3 New Clients Congregate Meals 331 Consumers 13 New Clients Home Del. Meals 36 Consumers 3 New Clients Info. & Assist. 1,352 Consumers 16 Clients Outreach 16 Consumers We had a total of 827 volu nteer hours for the mo nth of January. K-I 959 Units of service 1,258 Units of service 3,394 Meals 2,118 Meals 3,104 Hours 16 Hours 25 seniors participated in a Mission at the Challenger Center. Everyone had a great time and are looking for the next launch to the moon! We are partnering with the hospital to present health seminars at the center. The first seminar was on Healthy Aging. Ryan Smith, CEO also came and presented a power point concerning the new addition to the hospital. ~nai Police part Memorandum To: hick Koch, City Manager From: Chuck Kopp, Chief of Police ~~_ Date: 2/14/2007 Re: January 2007 Report ACTIVITY SUMMARY The Police Department responded to 552 calls for service, and the Communications Department answered 71 9-1-1 calls. Officers wrote 345 reports, and investigated 22 motor vehicle crashes, 4 of which involved injuries to vehicle occupants. Traffic enforcement contacts resulted in 15 arrests for alcohol and drug related offenses, 15 arrests for driver's license and insurance violations, 74 traffic citations, and 118 warnings. Crime investigation and warrant service resulted in an additional 27 arrests. TRAINING Officer George attended a State D.A.R.E. Presidents conference in Tennessee. Sergeant Sandahl attended Police Athletic League (PAL) training with Kenai Peninsula Boys and Girls Club administrative staff. Boys and Girls Club is working with the department to start a local PAL program to provide positive alternatives for at-risk youth. Lieutenant Wannamaker attended a Department of Homeland Security Facilities Threat/Risk Assessment seminar at PRISM. Officers Johnson, Sjogren and Hershberger attended a 1-day child safety seat seminar. Officer Langseth delivered a presentation to Kenai Peninsula Borough School District administrative staff on Internet safety for children. ADMINISTRATIVE Chief Kopp and Officer Turnage appealed to Chevron USA philanthropy board for Police Canine Program funds. Chevron USA agreed to provide program startup costs of $15,000.00. The police canine will be named "Chevron". Chief Kopp and staff are working on the Police/Communications/Animal Control Annual Report for 2006. • Page 1 ANIMAL CONTROL INTAKE REPORT JANUARY 2007 INTAKE DISPOSITION STRAY: 68 ADOPTED: 46 Dogs 43 Dogs 30 Cats 24 Cats 16 Other Animals 1 Other Animals: 0 RELEASED BY OWNER: 71 CLAIMED: 7 Dogs 42 Dogs 7 Cats 29 Cats 0 Other Animals 0 Other Animals 0 D.O.A.: 11 EUTHANIZED: $5 Dogs 10 Dogs 48 Cats 0 Cats 37 Other Animals 1 Other 0 TOTAL ANIMALS 150 WILDLIFE RELEASE 1 BORO ANIMALS 60 TOTAL DOGS 95 TOTAL CATS 53 TOTAL OTHER ANIMALS 2 Field Investigations 57 Volunteer hours 132.5 Total phane calls 732 I£enai Community Library Monthly Report February 2007 2(2/07 KENAI COMMUNITY LIBRARY WINS AWARD Thrilling newsl The Kenai Community Library has justwon the Public Library Association's EBSGO Excellence in Srnall andlar Rura( Public Library Service Award for 20Q7. The award recognizes a public library serving a population of 10,000 ar less that demonstrates excellence of service to its community by any of tha following measures: 1) uniqueness of service or program, 2) impart of programiserviae upon community, ar 3) how the service/program wiA affect the future of the library and its community. PLA and ttre award sponsors vdll recognize the Kenai Cornmunity Library (and other award winners) on June 25 at the 20D7 ALA Arrrruai Canferenae irx Washington, DC. Congratulations to Library D'orectar Mary Ja Joiner and to the library's staff, library board and the community of Kenai! http://www.pla. org/ala/pla/plaawards/awardwi nners. htm From the Friday Bulletin published by the Alaska State Library January Circulation Figures Adult Fiction 1921 Internet Access 980 Adult Non-Fiction 1559 Music 194 Periodicals 40 Puzzles 4 Juvenile Fiction 449 Videos 961 Juvenile Non-Fiction 244 DVDs 1500 Easy Fiction 1316 Audio books 268 Easy Non-Fiction 263 Miscellaneous 27 Interlibrary Loan 35 Computer Programs 48 Totat Print 5,827 Total Non-Print 3,982 Total Circulation 9,809 Internet Express Use 916 Total Catalog Searches 7,468 Library Patronage....... 7,827 Persons j N '..~ .~ z W d ,~ ~ d. ® /_ U Z B, y® W 1 v ~ ~ o a > •o ' m ~ a ~ am' R O O 1~ O r y a \ O O O N c C® ltA h O O L S O M y ~ O) ~7 Um u7 m u7 m ~°o~w ao Q<e K~I I 0. i ~ H o o a v r ~ I 3 O ~ ~ O O i N ~ N 1o w ro t~ W N N y T C m 'o ~ ( ~ E j n` ~ ~ ~ ~ '® J ~ ~ W R > > d N G a C7 Q ~ d a U 2 [0 ~ a o i R >. .C ~ ^] oi$ 16 ~~ ~ N a I Q ~ L C~ 'C O ~ i V d d o m o y Z . ~ r ~ U~ N U N -i ' ~ '070. x 2i o ~ ~ y c V N W O 0 U ~ m Y -J ~ ~ E ~ Q i A ~ a a O o O `p N a N Q y ~ ~ ~ C /a~ N V V V N ~ C ,aa V' O (O O O N E O E ~ E ~E O rE Q (D m E .- O. M ~. M a ~ a N O. m O to O O. m N ~- N ~ N M N M N O r r O O O ,a. ~ a E N 6. Q Q 4 v _ o ir7 E dm Z NN Z Z Z Nm i+7 m m y o N (O 0 0 0 r C ~ R N V' ~ ~ m ~ - O N ~t ~ N . N r c0 0. V ~O W ~ ~ N M T O) w c y ~ s ~ D) N 01 (n m $i C J C ~ ~O G ~ J _C ~ y W C ^ mo n ~ p o ~ y o » ~ d 1 o Y . a I a Ea ° ~ N I LLN m ~ <t a ~' O N m U ~ <n ~, ~ (n C C a T j m = (6 U` ~ '6 c ~ N U O ( ~ ¢ ~ ~ I m E m m ' w c m o:. ~ ~ ` +., V ' o E ~a asp ~ ~ ~ ~ rn ~° 2 i p ' ',. a N y LL U 6 J m- O ~ '~.. O a d N ~ m 3~ {- m r C m f m N N 0.~ C V C ' ' LL^ y d~ a N G~ O ~ N N N O p N ~, 0. Kea as ~-~ oU N w YK YU Nn.~ a Municipal Airpart Airport Restaurant: The Kenai Cafe has been open in the Terminal for over a month now and business continues to be good. Owners, Sherry and Teea McBride, have created new decorafions and have plans for more changes in the near future including prepackaged salads and sandv~iches for passengers in a hurry. The Building Maintenance and Airport staff continues to work with the new owners to acxommodate their ideas for configuration and equipment. A new steam table has been ordered as the existing unit was not serviceable; the cost was less that $1,000. The McBride's are also making significant investrnents in improvements to the facility. Customers may dine in or carry out. Their telephone is 283-&172. Also, deliveries to local businesses will be available in the near future. Runway Improvement Project: The contractors and engineers are gearing up to start Phase II of the Runway Improvement project. An addrbonal 3.5 million in grantfunds has been requested from FAA, in addition to the 8.4 already committed. The exact amount of additional funding should be known in early March. Runway work will begin as soon as weather allows -probably early May. Letters v~ill be going to all the air carriers as soon as the contractor releases a new schedule. Runway work v~ill not curtail commercial traffic, however, some training flights and the airfairvvill be scaled back to accommodate construction. The Teminal ramp will not be affected and the current fleet mix will be easily accommodated on the recently completed full-length parallel taxiway. The float plane basin is scheduled to reopen in the spring and float equipped aircraft should not be impacted by this summer's construction. 2007 Air Fair Committee: The next air fair meeting is scheduled for Wednesday, February 21, at the Kenai Airport Operations Building at 5:15pm. Anyone interested in assisting in the planning process is encouraged to attend. Airport Triangle Landscaping: Susan Jordan at Fireweed Herb Garden has generously devoted her time and expertise to researching plants and flowers that might improve the appearance of the KENAI lettering on the hill in front of the Terminal. Ms. Jordan has recommended a variety of Verbena that is well suited to the damp and windy conditions prevalent in this area and we are arranging to replace the soil and widen the individual letters for a better growing base. We hope that new soil and a plant better suited to this area will greatly improve the looks of this planting. "~'i~,~a~e wi~ilt a Past Gi~ wa'$~t a Fr~ture„ 210 Fidalgo Avenue, Kenai, Alaska 996 1 1-7794 ~~~ Telephone: 907-283-3692 /FAX: 907-283-3693 ,,~~ ttieu~of KENA~ SKA MEMORANDUM To: Rick Koch, City Manager From: Robert 7. Frates, Parks & Recreation Director Date: February 16, 2007 RE: Mid-month Report There was a total of 101.75 hrs ice booked for the month of January; this compares to a total of 85.75 last year during this time. The Peninsula Winter Games Hockey Tournament provided a big boost with a large portion of the games played at the rink. The motion detector sensors that control the shack heaters and lights are slowly coming bank on line after a major power outage last week The coin-operated box controlling lights has been vandalized for a second time and after hour skating eliminated until further notice. Director Frates will be renewing his pesticide certification; class is scheduled for Tuesday, February 20`n Plans continue to unfold for the Chamber's 2"d Annual Kenai Winter Family Snowmachine Rally scheduled for Saturday, March 10`h. Snow conditions are looking a bit more favorable than last year and this year's event should be bigger and better. The Parks Groundskeeper has been busy grooming ski trails along with performing routine activities including recycling, trash pick up and hauling, inspections, etc. A few burials have occurred at the cemetery in recent months as well. Andy also tearned up with the Sheet Department for the removal of pole decorations. Several overhead lights at the riirlc were also changed out and other maintenance items performed while the bucket Truck was on site. Several hours were spent at the rink in January in attempt to provide better drainage away from the building. Melting of snow during the warm spell led to some water inside the rink. Crews need to come in this summer and dig a ditch and slightly change elevation so melting snow drains away from building. {V~tla9'e WLtti a Past, Gt~ VVH~ti 210 FidalgoAvenue, Kenai, Alaska 99t~~9-//54 Telephone: (907) 283-7535 /Fax: (907) 283-3014 www.ci.kenai.ak.us .~ KENA1~ SKA MEM®RLIN~UM TO: Kenai City Council IiROM:G~~ Cary R. Graves, City Attorney DATE: February I6, 2007 RE: Code of Ethics During the last meeting, Councilor Swarner asked me to draft a code of ethics. Attached is a draft code of ethics It would apply to council members, commissioners and city employees. Please let me know if you have any comments, concerns or suggestions. Suggested by: Councilor Swarner CITY OF KENAI ORDINANCE NO. AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ESTABLISHING A NEW ETHICS CODE FOR ELECTED AND APPOINTED OFFICIALS AND CITY EMPLOYEES BY REPEALING THE EXISITING KMC 1.85.060 AND ENACTING KMC 1.95 ENTITLED "CODE OF ETHICS". WHEREAS, KMC 1.85.060 (Conflicts of interest prohibited) currently regulates conduct of elected and appointed officials and city employees; and WHEREAS, properly functioning municipal government requires ethical behavior by public officials and employees; and WHEREAS, reasonable standards of conduct are needed for elected and appointed public officials and city employees in order to maintain the public's trust in municipal government; and WHEREAS, the current conflict of interest rules need to be replaced by a more comprehensive set of guidelines for council and commission members and city employees; and WHEREAS, it is in the best interest of the City of Kenai to repeal KMC 1.85.060 (Conflicts of interest prohibited) and replace it with KMC 1.95 (Code of ethics). NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that: Section l: KMC 1.85.060 is repealed; and Section 2: KMC 1.95 as shown in Attachment A is hereby enacted. Section 3: KMC 23.30.100 (Outside employment) is amended as follows: No full time employee shall accept outside employment whether part-time, temporary, or permanent that could reasonably interfere, conflict or negatively reflect on the City. It is the individual employee's responsibility to ensure compliance with this section. Approval of the individual's department head, or the City Manager for department heads, is required before acceptance of outside employment. If the employee is the City Manager City Clerk or City Attorney, approval shall be requested from the City Council. Section 4: KMC 23.35.020 (Causes for warning, suspension or dismsssal) is amending by adding the following: (1'71 Violation of the city's ethics code as contained in KMC 1.95. PASSED BY THE COtTNCIL OF THE CITY OF KENAI, ALASKA, this _ day of 2007. Pat Porter, Mayor A'T`TEST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: TITLE 1 AGENCIES OFFICERS ANll F.MPLOYF.ES Chapter 1.95 CODE OF ETHICS Sections: 1.95.010 1.95.020 1.95.030 1.95.040 1.95.050 1.95.060 1.95.070 1.95.080 1.95A90 1.95>1t10 1.95.110 1x95.120 ` 1.95.130 1.95.140 1.95.150 1.95.160 1.95.1.70 Declaration of policy. , Scope of code. Prohibited acts. Improper gifts. Imp~oper,use or disetosure of informafion. Improper influence in grafts, contracts, or teases. °Ci~y_Attorney advisory op"iicions. Restrictions on employment after leaving city service. Restriction on obtaining surplus city property. Aiding a violation prohibited. Declaration of,potential violations by public employees. Violations; municipal officers and public employees. Conflict of Interest elected and appointed city officials. Violations; elected and appointed municipal officers Definitions. Conformity to law. Distribution of Code of Ethics. Chapter 1.95 1.95.010 Dec-aration of policy. (a) The city council declares that public employment is a public trust that should be free from the danger of conflict of interest. It is declared that high ethical standards among public employees are essential to the conduct of city government. It is further declared that holding public employment is a public trust and that, as one safeguard of that trust, the people require public employees to adhere to a code of ethics. (b) The purposes of this ordinance are: (I) to set reasonable standards for elected municipal officers and city employees. (2) to discourage public employees from acting upon a private o~ business interest in the performance of a public duty; (3) to assure that municipal officers in their official acts are free of the influence of undisclosed private or business ii~erests; (4) to develop public confidence in persons seeking ar holding public employment or municipal office. (5) to establish standards of ethical conduct for municipal officers and public employees that distinguish between'those inconsequential conflicts which are unavoidable in a free society and those which are sul5stantial and material. 1.95.020 Scope of code. (a) The city cowlcil holds that any effort by a municipal officef or public employee which is intended to unduly benefit his/her personal orfinancial interes!'through his/her official action is a violation of the public trust. As long as it does not interfere with the full and faithful discharge of an employee's public duties and responsibilities, this ordinance does not prevent an employeefiom following other independent pursuits. (b) There is no violation of this code of ethics if, as to a specific matter, a municipal officer or public emp~ayee's: (1) personal of financial interest in the matter is insignificant; or of a type that is possessed generally by the public car a large class of persons to which the public officer belon_ gs;' (2) action or influence would have an insignificant or conjectural effect on the matter; or (3) action consists iof voting in favor of introduction of an ordinance. (c) 1'he city, shall be guided by this section when issuing opinions and reaching decisions:': 1.95.030 Prohibited acts. A municipal offioer or other public employee may not: (a) use or attempt#o use his/her office or position for the purpose of obtaining personal financial gain or financial gain for himself/herself, for an immediate family member, or for a business in which the officer or employee is associated or owns stock; (b) intentionally secure or grant unwarranted benefits or treatment for any person; (c) use or attempt to use lus/her office or position to seek other employment, business or contracts; (d) accept, receive, or solicit compensation for the performance of official duties or responsibilities from a person other than the city; Chapter 1.95 (e) use city property, city equipment or other city facilities without authorization to benefit her/her financial or personal interests; (~ take or withhold official action in order to affect a matter in which the public off cer or employee has a substantial personal or substantial financial interest; (g) attempt to benefit a personal or financial interest through coercion of a subordinate 1.95.040 Improper gifts. A municipal officer or public employee may not solicit, accept, receive, directly or indirectly, a gift, or a promise to give, whether in the form of money;service, loan, travel, entertainment, hospitality, employment, or any other form, that benefits the personal or financial interest of the officer, employee or his/her immediate family unz~er circumstances in which it could reasonably be inferred that the gift is intended to influence the performance of official duties, actions, or judgment, or is intended as a reward for auy official action by other officer or employee. Payment of meal expenses in conjunction with occasional businessmeetings or occasional social gatherings shall not be considered agift under this ordinance. Gifts with an apparent value of fifty dollars or more given by anyone other than an immediate family member who has, during the preceding year, done business with the officer or employee in`his/her official capacity shall be rebuttably presumed to have been given €or the purpose of influencing the performance of official duties, actions of judgment or as a reward for official action taken by the officer or employee. A municipal officerbr public employee who:receives a gift which is subject to the presumption set forth in the precedingsentence or which is prohibited by this section shall within thirty days from the receipt of the gfk report to ~iis immediate supervisor the name of the giver, a description of the gift, the relationship of the~giver, and any facts which rebut the presumption. In the eben the recipient~of the gift is,an elected official such repoi~ shall be filed with the city clerk. A designated supervisor or councilmember may request guidance from the city attorney aanceruing whether acceptance of a particular gift is prohibited. The restrictions relating to gifts imposed by this section o not apply to a campaign contribution to a candidate for elective office ifthE contribution complies with laws and regulations governing elections and ~ampaigti disclosure. 1.95.050,;, Improper use or disclosure of information. (a) A current or former municipal,or public employee may not disclose or use information gained in the course af, or by reason of, the officer's or employee's official duties that could in any way result in the receipt of any substantial personal or substantial financial benefit for tli~ office~or employee or his/her immediate family member unless the information hasalso been disseminated to the public. (b) A current or former municipal officer or public employee may not disclose or use, without appropriate authorization, information acquired in the course of official duties that is confidential. 1.95.060 Improper influence in grants, contracts, or leases. (a) Unless otherwise excepted by this ordinance, a municipal officer or public employee, or immediate family member, may not attempt to acquire, receive, apply for, be a party to, or have a substantial personal or substantial financial interest in a city giant, contract, or Chapter 1.95 lease if the municipal officer or public employee may take or withhold official action that affects the award, execution, or achninistration of the city grant, contract, or lease; (b) The prohibition in (a) of this section does not apply to a city grant, contract, or lease competitively solicited unless the employee: (1) is employed by the department or division awarding the grant, contract, or lease, or is employed by the department or division for which the grant, contract, or lease is let; (2) takes official action with respect to the award, execution, or administration of the grant, contract, or lease. (c) A public employee shall report in writing to his/her designatedsup®tvisor any personal or financial interest held by the employee, or an immediate family member, in a city grant, contract, or lease that is awarded; executed, or administered by the department or division served by tie employee. 1.95.070 City Attorney Advisory Opinions. (a) Upon the written request of a municipal officer or public employee, the city attorney shall issue an advisory opinion interpreting Phis chapter. The requester shall supply any additional information requested by the city attorrJey in orderao issue the opinion. (b) The city attorney may offer oral advice if delay would cause substantial inconvenience or detriment to the requester. Withi~awo working days afEerproviding the oral advice, the city attorney shall provide a brief written statement summarizing its contents. (c) The city attorney may reconsider, revoke, oi:modify an advisory opinion at any time. 1.95.OA0 Restriction on employment after leaving city service. (a) A manager, assistant maxiager, department head, or city attorney who leaves city service may not, for a period of one year after leaning city employment, represent, advise, or assist a person for-compensation regarding a matter that was under consideration by the department in which:that employee served, and in which the employee participated personally and substantially through the exercise of official action. (b) Such person may not be employed for one year after leaving city service by any person, firm, orcorporation with whom the city conducted substantial business. For the purposes of this subsection;"`substantial business" means in excess of $100, 000 in any twelve consecutive month period in the preceding two years. (c) This section does not prohibit the city from contracting with a former employee to act on a matter on behalf of the city. (d) The manager,may waive application of this section after determining that the former public ernployee's actions under (a) or (b) above are not adverse to the public interest. -The waiver must be in writing and a copy must be provided to the city attorney f©r review and recommendation. In the event that the former public employee was a manager, city attorney, or city clerk such approval or disapproval shall be made by the city council. (e) A person who holds an appointed city office shall not be eligible for employment with the city, during their term of office, in the. department that the appointed commission advises or has jurisdiction over until one year has elapsed following the term of appointment. An exception may be made with the approval of the city council. Chapter 1.95 4 (f) A person who holds or has held an elective city office shall not be eligible for appointment to au office or for employment with the city until one year has elapsed following the term for which he was elected or appointed. An exception may be made with the approval of the city council. 1.95.090 Restriction on obtaining surplus city property. A municipal officer or a public employee is prohibited from bidding upon, or otherwise obtaining, any property which is unneeded or surplused by the city unless that employee can satisfactorily demonstrate to the manager, or city council, if the employee is a manger, city attorney, or city clerk, that no reasonable conclusion could be made that the,employee possessed knowledge about the property which would not be readily obtainable or observable to a member of the general public 1.95.100 Aiding a violation prohibited. It is a violation of this ordinance for a municipal officer or a public employee to knowingly aid another public employee in violation of this ordinance. Such aiding a violation will be considered misconduct on the part of such employee. 1.95.110 lleclaration of potential violations by public employees. (a) a municipal officer or a public employee who is involved in a matter that may result in violation of sections 1.95.040 1.95.100 shall: (1) refrain from taking any official actidn relating to the matter until a determination is made under this sectiozi; (2) immediately disclose the matter in writing to fhe designated supervisor. (b) a public employee's"manager shall make awritten determination whether an employee's involvement violates sections 1.95.040 - .100. If the supervisor determines that a violation could exist or will occur, the supervisor shall: (1) reassign duties to cure he employee's potential violation to the extent practicable; or (2) direct the divesfiti~e or removaFby the employee of the personal or financial interests thaf give rise to the potential violation. (c) ;The manager may request guidance~from the city attorney when determining whether a public employee is involved in a matter that may result in a violation of sections 1.95.040 - 100. 1.95.120 Violations; municipal officers and public employees. (a) If a munieipal~officer'(other than an elected or appointed municipal officer) or apublic employee has been found to have violated this chapter, the manager or the city council in the case of the"employee being a manager, city attorney, or city clerk; (1) shall order the employee in writing to stop engaging in any official action related to the violation; (2) may order divestiture, restitution, or forfeiture; (3) may take disciplinary action, including reprimand, demotion, suspension, or dismissal. This section does not prohibit the review of a disciplinary action in the manner prescribed as allowed in the Kenai Mmiicipal Code. Chapter 1.95 (b) If a former municipal officer (other than an elected or appointed municipal officer) or public employee has been determined to have violated this chapter, the manager, or city cotuicil in the case of the former employee being a manager, city attorney, or city clerk, shall: (I) issue a public statement of findings, conclusions, and recommendations; acid (2) request the city attorney to exercise all legal and equitable remedies available to the city to seek whatever relief is appropriate. (c) The above penalties shall not affect the right of the city to seek civil or contractual remedies against any such officer or employee and shall not lirnit prosecution or action under any other law or policy. 1.95.130 Conflict of interest; elected and appointed e~ty officials. (a) Except as provided herein an elected municipal officer may not participate in any official action in which the officer or a member of the officer's°immediate family has a substantial financial interest. Por purposes of this section participation shall not include discussing the matter with city officials or addressing the city council as a private citizen, but shall include voting and participating gin the debate as a~ouncil memo°er. (b) An elected or appointed municipal officer shall disclose any substantial financial interest in any matter before the council,; prior to debating or voting upon the matter. (c) After an elected or appointed officer has made known any substantialfinancial interest in any question to be voted upon by the courleil: (1) the officer shall ask to be excused from the debate agd vote on that matter, (2) the presiding officer shall rule on the fequest; (3) the decision of the presiding officer shall be final unless overridden by a majority vote of thecouncil. In the event tha~'the elected or appointed officer with a substantial financial interest is the presiding officer, The request shall be ruled upon by, a vote of the council. An officer may not participate in the matter if the presiding officer or eouncIl determines that the financial interest is substantial 1.95.110 Violations; elected and appointed municipal officers. (a) The city council shall have the •primary responsibility for enforcement of this chapter fox electedand appointed .municipal officers and shall ensiu•e that a determination of the validity pf a complaint is made within thirty days after receipt of the complaint. The time for making a determination may be extended for good cause shown. The city comlcil may cause a hearing to be convened to determine whether an elected or appointed municipal officerhas violated this chapter. The responding municipal official shall be provided with reasonable notice and an opportunity to present evidence and cross- examine witnesses. A hearing conducted and any determination made under the authority of this section are independent of any may be in addition to any prosecution in court under criminal procedures. (b) The city council may direct the city attorney to investigate or prosecute any violation of this chapter or may employ or appoint any qualified attorney to investigate or prosecute any violation or series of violations by one or more person of this chapter. Chapter 1.95 (c} Any person who believes that a violation of any portion of this chapter has occurred may file a complaint with the city attorney, city manager or the city council. However, nothing in this chapter shall be construed to prevent complainants from instituting direct legal actions through the appropriate judicial authority. (d) Upon a determination of a violation of this chapter after a hearing conducted pursuant Co KMC 1.95.140, the city council may impose as a sanction, penalty or remedy any or all of the following, as appropriate to the seriousness of the violation: (I) the city council may declare an elective officevacant only if the violation justifies declaration of a vacancy under AS 29.20.170 or 280. (2) The city council may remove a member of a board, corrimisspn, committee or task force, (3) the city council may issue a public reprimand to the municipal official, (4) the city council may revoke an committee or commission assignment from the official, (5) The city council may revoke or restrict the official's privilege t9 ravel at city expense on city business, (6) the city council may order the official to forfeit ormake restitution of any financial benefit the official received as a consequence of a violation of this chapter, (7) the city council may impose a civil fine of not more than $1,000, (8) the city council may direcYthe city administration to;pursue legal action to enforce any order of the city council>made under this seetion and/or to exercise any other legal and/or equitable remedies available to seek whatever relief is appropriate. 1.95150 Definitidns. Por the purposes cif this chapter the followitrg terms shall be defined as set forth herein. (a) "Child" includes a biological child, an adoprive child, and a stepchild. (b) "Self-employment" includes all activities or'acts, personal, professional, or corpor-ate, engaged in or caused to be engaged in, or following or engaging in a trade, profession, qr business, including receipts from advertising services, rental or;personal property, construction, processing, or manufacturing, and including fisheries businesses, fishermen;'liquor licenses, insurance businesses, mining, and coin-operated amusements and gaming machines, but excluding rental of real property,`galling or vocation, with the object of financial or pecuniary gain, proft or benefit,'~ither direct or indirect, and not exempting subactivites producing marketable coxnmo~lities or services used or consumed in the main business activity, each of which subactivities shall be considered business; the giving or supplying of seivices as an employee and the furnishing of property, services, substances, or things, by a person who does not represent to be regularly engaging in those transactions, does not constitute business under the meaning of this ordinance. (c) "Financial interest" means an expectation of or the receipt of a pecuniary or material benefit. An official or employee shall be deemed to have a financial interest in the affairs of: (1) members of her/her immediate family; Chapter 1.95 (2) a firm, partnership, or association of which such official or employee is a member or employee; (3) a corporationof which such official or employee is an officer, director, or employee; (4) a corporation atly stock of which or controlled directly or indirectly by such official or employee. (d) A substantial financial interest does not exist in: (1) an action relating to a person, fine, corporation or association in which an official or employee has an interest solely by reason of;empkoyment as an officer or employee thereof, if the remuneration of sdeh employment will not be directly affected as a result of such actionand~the duties of employment do not directly involve any matter)reiated to such action; (2) the stock of the corporation in which the official car employee has an interest is traded on public stock exchanges, or`iess than five percent of outstanding stock of the corporation is controlled directly or indirectly by such official or employee, or member ofthe immediate family, (3) the matter in which the pecuniary or material benefit~xpected or reoeived is such that it would not reasonably be expected to affect the actions or judgments of the officer off-employee concerned: (e) "Immediate family" of a public employee. means anyone related to the employee by blood, marriage, or adoption, or who lives in that person's h©usehold. (f) "Manager" means the city manager. (g) "Mother or father" includes a biological parent, an adoptive parent, and a stepparent. (h) "Municipal officer" or "officer" means mayor, council-member, commissioner or member of a eomrnittee or task force, city cterkand city attorney, or department head within the city. (i) "A personal interest" isan expectation by an officer or employee in his private capac~ly of a nonpecuniary or nonmaterial benefit or advantage which is not available to the gerieral public. (j} ~"Public employee" means any person employed by city govennnent whether full time or part time, temporarily ¢r permanently. (k) "Source of income" means the entity for which service is performed or which is otherwise :the origin o€payment; if the person whose income is being reported is another, the employer is the source of income. If the person is self=employed by means of a so1~ proprietorship, partnership, professional corporation, or a corporation in which the persons, the person's spouse or children, or a combination of them, hold a controlling interest, the source is the client or customer of the proprietorship, partnership, or corporation. (1) "Elected mwzicipal officers" means the mayor or council members. (m) "Appointed municipal officer" means a commissioner or member of a committee or task force. Chapter 1.95 1.95.].60 Conformity to law. If any section or provision of this ordinance is held to be contrary to law by a court of competent jurisdiction or by action of the Alaska State Legislature, that section or provision shall be deemed invalid. All other sections and provisions of the ordinance shall continue in full force and effect. 1.95.170 Distribution of Code of Ethics The city clerk shall cause a copy ofthis section to be distributed to every municipal official and employee of the city within thirty days after its enactment.. Each employee, official elected, appointed or engaged thereafter shall be furnished a copy bef~i'e entering upon the duties of his office or employment. Chapter 1.95 9 \_ ~~~;~~ ~. I J> riVl~lGi E L(Ilntf? ~ past, ~il Wl~Y1 ~ 9 ~' 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 /Fax: (907) 283-3014 www.ci.kenai.ak.us ~`~ lke c(ty o f ~~ KENAK~ SKIT MEMORANDUM TO: Mayor and Council Members FROM: Carol L. Freas, City Clerk DATE: February 16, 2007 RE: PLANNING & ZONIlVG COIYIlVIISSYONER TRAINING Attached is a memorandum from City Planner Marilyn Kebschull indicating the Alaska Chapter of American Planning Association is offering Planning Commissioner training - in Anchorage on March 2, 2007. There are several members of the City of Kenai Planning & Zoning Commission interested in attending. KMC 1.90.030(a) allows for reimbursement of board, commission or committee members in connection with service to the City only after approval by the Council. Does Council approve reimbursement of costs for Planning & Zoning Commission members wishing to attend Alaska Chapter of American Planning Association training in Anchorage on March 2, 200'7? j "Village wit~r a Past, Gc~ wit1~ a Futuv~e" ~~,~ ~,_ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 III Telephone: 907-283-7535 /FAX: 907-283-3014 1I 1992 tGre aty a f KENA~ SKA ^ TO: Carol Freas, City Clerk FROM: Marilyn Kebschull, Planning Administrator DATE: February 15, 2007 SUBJECT: Planning Commission Training The Alaska Chapter of APA is offering Planning Commissioner training in Anchorage on March 2nd. Attached is a copy of an email describing the training. In the past, Council has funded training for Commissioners. At this time, Commissioner Lewis and Fullinck have requested Council's approval to attend the training. Commissioner Wells and Romain are checking their schedules and may want to attend. The cost to the City would be travel to Anchorage, transportation to and from the airport, lunch, and tuition. The following is an estimate of cost per Commissioner: Airfare $170.00 Taxi $40.00 '. Lunch $10.00 Tuition $50.00 Total Cost $270.00 Please forward this information to Council and let us know if the training is approved. Page 1 of 1 Marilyn Kebschull From: Taylor, Suzanne [STaylor@ascg.com] ent: 12 February, 2007 11:40 AM Subject: Planning Commissioner Training Follow Up Flag: Follow up Flag Status: Flagged Planning Commissioner Training A good planning commissioner takes the future seriously, works hard, and is patient, and willing and able to make decisions. This training will provide an overview to help you understand the legal and policy framework for planning in Alaska's communities. It will also provide you with information on the powers and duties of the planning commission. The training will be based on the Alaska Planning Commission Handbook. This handbook was updated in 2003 by the Department of Community and Economic Development in cooperation with the Alaska Chapter of the American Planning Association. The training covers aspects associated with: 1. Comprehensive and other types of planning 2. Zoning and platting 3. How a planning commission operates 4. The authority and duties of the commission and standards for commission decision-making. The meeting will be held at the HDR 4th Floor Conference Room in Anchorage (Directions). from 8:30 a.m. to 4:30 p.m. on Friday March 2, 2007. The cost of the training is $50 for non-APA members and $25 for APA members. Space for the APA training is limited to 50. To register please go to ht(p;//www suryeymonkey ppm/s asp~u=9633232_67687 'more information, contact John McPherson at John McPherson@hdnnc ppm. or (907) 644-2013. Suzanne Taylor Secretary/Treasurer, APA Alaska Chapter Planner, ASCG Incorporated 907.339.6570 909.339.5328 fax 02/15!2007 INFORMATION ITEMS KENAI CITY COUNCYL MEETING FEBRUARY 21, 200? 1. 2/21/2007 Purchase Orders Between $2,500 and $15,000 for council review. 2. 2/1/2007 Kenai Chamber of Commerce related to suggested projects for the Beautification Committee. 3. Peninsula Winter Games thank-you letter. 4. 2/ 15/2007 L. Semmens memorandum related to City of Kenai use of purchasing cards. 5. 2/2/2007 Public Library Association congratulatory letter related to award of EBSCO Excellence in Small and/or Rural Public Library Service Award to the Kenai Community Library. 6. 2/ 16/2007 L. Semmens memorandum related to utility rates and the General Fund budget. 7. 3/30/3007 Kenai Peninsula Borough Assembly Meeting Agenda. 'S w _J U Z d U O O 0 0 0 0 ui ® r,. 4 O N O i.. o N tf! ~ N Q ~ ~ 2 ~ L!J ®] W W k m u: O w ~ z ~w w Q ~ O C1. U 2 o tD a ~ o O O ~ ~ O N r N h iOC1 O N O o O m O W Q ~ Ki C ~ N M C' N W J f- F- {-~ ~ ~ N Z_ ~ Z_ ~ z ~ ~ U r a O z Fd' W Q fY a 4 K a 4 ~ a W to O (~') Z ~ w C7 ~ V o- w w w ~ a O 4 O (5: CC K 4 a] d F J w - wn. 4 0 ~ ~ ~ 4 4 z ,'~ W 4 z ~ W U Q u. ~ z Z ~ ~ ~ z ~ m ~ ~ nQ. w ~ Z Z N W ~ ~ X to a ~ u, ~ ~ z z ,a ~ J U U ~ O ~ ~ o ~ Q Z ? ~ a U 2 w ~ O ~ h- 2 m W z U ~ w7 H ~ J ~ a a = ~ v i ~ ~ ~ ~ z u a 0 ~ ° u a ~ ~ ~ w ~ a a Q w ~ ~ 4 4 p ~ r w z w j v i 2 ? z w Q z z ~ 4 ° z > ~ a u "i s d o a t ~~ r~ 402 O~ Chamber c-f Comrnerce February 1,2007 Bob Frates, Director Kenai Parks & Recreation Department 410 North Willow Street Kenai, Alaska 99611 Dear Bob: The KEDS Old Town Committee has been meeting and we have several recommen- dations we would like to make to the Beautification Committee regarding Old Town. • First we would like to seethe sidewalks replaced, fixed and cleaned up. • We would like to see the wooden planters that are scattered around town placed around Old Town and. painted a nice gray stain to compliment Old Towri. • We have aided in the sale of benches from Metal Magic and look for those to be placed in Old Town this spring along with more benches as we en- courage people to purchase them. • We aze looking at having the historic signs in Old Town replaced; we will work with the City on the project. • Businesses in Old Town are prepared to build rock. gardens this summer and we ask the City to bring in two loads of rock that can be used to build rock gardens. • We also would like to see planters hanging from the light posts in the area surrounding the church in Old Town; the light posts already have the appa- ratus necessary for hanging. • The Old Town committee will be meeting and we will map where we would like to see benches, flower boxes, and even some garbage cans in Old Town. We will provide tlils to you in the near future. Sincerely, Janie Odgers Executive Director CC: Mayor Pat Porter, City Manager Rick Koch. Kenai, r+iaana 7~oii phone: 907-283-7989 fax: 283-7183 email: info@kenaichamber.org www. kenaichamber.org 2007 President Jason Carroll 1st National Bank Past President Dr. Dennis Swarner, Kenai Vision Center Vice President Steve Hansen, Tesoro Secretary Treasurer Amanda Feagin, Dunkin & Bush 2007 Directors Mdlt Allen, Udelhoven PennyFurnlsh, Stewart Title Scott Griffith, XTO Energy GeneRaybung, SBS Durainey Rawls, Durainey Cranes Janie Odgers, Executive Director %uren Craig, Assistant 8 907-283-7989 Fax:907-283-7183 email: info@kenaidham ber. org www. kenaichamber.org ri 402 Overland Kenai, Alaska 99611 ?~3 Peninsula Winter Games P.O. Box 2655 Soldotna, AK 99669 (907)262-7394 (907)262-5229 Dear PWG Sponsor and Volunteers, We just wanted to take a moment to thank you for your support of the 31"Annual Peninsula Winter Games. Thanks to your time and contribution this year's event was a huge success! The games have been around for a long time, but this year's was by far the best ever! Hundreds of athletes, coaches and families throughout Alaska participated in the games, which is a direct result of your generosity as a sponsor and volunteer. Action packed hockey and native youth Olympics were both very well attended by participants from throughout the state. We had 25 ice carvings throughout Kenai and Soldotna and more participants at the kid's carnival that ever before. These events brought hundreds of out of town visitors to our area. It was a very exciting and eventful weekend, and how about those fireworks, they were awesome! We appreciate your generosity and the countless number of volunteers that made this event so successful! You are a key contributor to the success of any event on the Kenai Peninsula and once again that generous community spirit has led to a successful event. Again, vve appreciate your support and we look forward to working with you again next year. Barb Blakeley Peninsula Winter Games Board President Shanon, Teresa & Cassie I<PTMC Team (907) 262-5229 Peninsula Winter Games, PO Box 2655, Soldotna Alaska 99669 --.~" -..._ .~ F R F ~~ F m .ate-..~~ ~-~ MEMORANDUM To: Rick Koch, City Manager From: Larry Semmens, Finance Director Date: February 15, 2007 Subject: Purchasing Cards For many years I have been considering use of purchasing cards for the City. Recently I was made aware of the fact that our bank has a purchasing card program that will not increase our banking services cost. It works like a credit card, so the costs are carried by the vendor rather than the card user. Since the City does not get a discount for cash purchasing, it is my recommendation that we use purchasing cards where appropriate. Purchasing cards provide a greater level of control for the City in purchasing. Individual cards can be limited as to amount and type of business where it can be used. Purchasing information is available the day following a purchase, which is generally much quicker than our current method. We will significantly reduce the number of checks written. I am planning to initiate this program in the next couple months unless you direct against it. P u b l i c Library A s s o c i a k i o n A tlivivion of the Allieriesn Librvry 9ssroiution February 2, 2007 Kenai Community Library Attn: Mary Jo Joiner 163 Main Street Loop Kenai, AK 99611 Dear Ms. Joiner: Ind 5 On behalf of the Public Library Association Awards Committee, the Board of Directors. and the award sponsor, EBSCO Information Services, I would like to express my congratulations on your winning application on behalf of the Kenai Community Library for the EBSCO Excellence in Small and/or Rural Public Library Service Award. PLA will recognize all award winners at the PLA President's Program featuring Elizabeth Edwards to be held during the American Library Association's 2007 Annual Conference in Washington, DC. The program will take place on the evening of Monday, June 25, 2007 and will be followed by a reception. We invite you, or a designee, to attend the official presentation of your award. Please RSVP to Angela Thullen at athullen@ala.org or (800) 545-2433 ext.5023 by Friday, March 9, 2007 with the name of any attendees so we can plan to introduce them as part of the program. The award sponsor will make a brief presentation, at which time you will have the opportunity to make a few brief remarks. Please be sure to thank the sponsor, and keep your remarks to no more than three minutes. Congratulations once again on your winning effort. Your hard work and the work of your institution truly deserve this special recognition. Sincerely, (~VvJ~A/V ` I~ `at/I.CA Susan Hildreth President, 2006-2007 Public Library Association SQ E. Huron Chicago IL b06]'1 I-800-54~-2433 exY. 5F'LA fax 3T2-280-7029 pLe(n)ata.org www.pla.org (a~yorrr til7rary'"~ JJ't~p-V MEMORANDUM To: Rick Koch, City Manager Prom: Larry Semmens, Finance Director Date: February 16, 2007 Subject: Utility Budgets Utility rates have increased dramatically this year and I expect significant budget shortfalls as a result. I could estimate the shortfall based on billings through January, but I think it will be better to wait one more month. At this time I am expecting the increase in the General Fund to exceed $100,000, which represents about a 30% budget shortfall. Water and Sewer and Airport utilities appear to be about $60,000 short each. I am planning to write an appropriation ordinance for the March 21 meeting, a backup memo will be att ched. Kenai Peninsula Borough Assembly Agenda February 20, 2007 - 7:00 p.m. Regular Meeting Borough Assembly Chambers, Soldotna, Alaska Ron Long Assembly President Seat 6 -East Peninsula Terrn Expires 2009 Margaret Gilman Assembly Vice Presfdervt Seat 2 -Kenai Term Expires 2008 Paul Ftischer Assernbly Member Seat 7 - Cenh~aL Term Expires 20D7 Deborah Germano Assembly Member Seat 8 -Homer Tern4 Expires 20(18 y Knopp ,5embly Member Seat I - Kalifornsky Tern¢ Expires 2009 Milli Martin Assembly Member Seat 9 -South Peninsula Term Expires 2009 Grace Merkes Assembly Member Seat S-Sterling/Furvny River Term Expires 2008 Pete Sprague Assembly Member Seat 4 - Sotdohra Term Expires 2007 Gary Superman Assembly Member Seat 3 - Nilziski Term Expires 2007 A. CALL TO ORDER B. PLEDGE OF ALLEGIANCE C. INVOCATION D. ROLL CALL E. COMMITTEE REPORTS F. APPROVAL OF AGENDA AND CONSENT AGENDA (ALI items listed with an asterisk (°) arc considered to be routine and non-controversial by the Assembly and will be approved by one motion. There wilt be no separate discussion of these items unless an Assembly Member so requests, in whioh case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. G. APPROVAL OF MINUTES * 1. Febnzary 6, 2007 Regular Assembly Meeting Minutes H. COMMENDING RESOLUTIONS AND PROCLAMATIONS I. PRESENTATIONS WPI'H PRIOR NOTICE (Limit w 20 minutes total) Red Smith, "Enforcement of Alaska's Constitution" (5 minutes) J. PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (3 minutes per speaker; 20 minutes aggegate) K. REPORTS OF COMMISSIONS AND COUNCILS February 20, 2007 Page I of 5 L. MAYOR'S REPORT 1. Assembly Requests/Responses a. Waiver of Administrative Fees fox Grants b. Firefighting Grants 2. Agreements and Contracts a. Approval of contract with ABC Towing/Car Killer for Junk Vehicle/Scrap Recycling at the Central PeninsulaLandfill and Homer Baling Facility b. Approval of contract with Federal Signal Corporation for installation of the All Hazard Alert Broadcast System for coastal areas of the Borough c. Approval of sole source contract with ASAP Software for purchase of an Enterprise Licensing Agreement for Microsoft Office Pro Software d. Approval of contract with Taylor Made Ambulances for Certified Aid/Medic Unit 3. Other a. Memorandum from Mayor John Williams regarding Proposed Grant Policies b. Budget Revisions and Revenue-ExpenditureReports-January2007 c. Investment Portfolio Report -December 31, 2006 d. Memorandum from Bonnie Golden, KPB Grants Manager regarding Borough Grant Reports • Central Area Rural Transit System (CARTS) • Kenai Peninsula Tourism Marketing Council (KPTMC) M. ITEMS NOT COMPLETED FROM PRIOR AGENDA -None February 20, 2007 Page 2 of 5 N. PUBLIC HEARINGS ON ORDINANCES (Testimony limited to 3 minutes per speaker) Ordinance 2007-03 (Mayor) Substitute: Amending Chapter 21.20 Regarding Board of Adjustment Proceedings (Mayor) (Referred to Policies and Procedures Committee) 2. Ordinance 2006-19-39: Accepting and Appropriating a Grant from the Denali Commission in the Amount of $40,000 for Recycle Equipment (Mayor) (Referred to Finance Committee) Ordinance 2006-19-40: Appropriating $39,500 to the Assembly Elections Budget to Cover Anticipated Costs of the May 8, 2007, Special By-Mail Election and Authorizing the Purchase of Election Supplies, Materials and Services (Long @ Request of the Borough Clerk) (Referred to Finance Committee) O. UNFINISHED BUSINESS -None. P. NEW BUSINESS 1. Bid Awards *a. Resolution 2007-015: Authorizing Award of a Contract for Banking Services (Mayor) (Referred to Finance Committee) 2. Resolutions *a. Resolution 2007-014: Approving Board Bylaws for the South Kenai Peninsula Hospital Service Area Board (Mayor @ Request of South Kenai Peninsula Hospital Service Area Board (Referred to Policies and Procedures Committee) Ordinances *a. Ordinance 2006-19-43: Appropriating $216,000 from the Equipment Replacement Fund for the Purchase of Nine Vehicles for a Motor Pooi (Mayor) (Hearing on 04!03/07) (Referred to Finance Committee) *b. Ordinance 2006-19-44:Appropriating $2,588,000 in General Obligation Bond Proceeds to the Bond Funded Capital Project Fund for School Capital Improvement Projects (Mayor) (Hearing on 04/03/07) (Referred to Finance Committee) February 20; ?007 Page 3 of 5 *c. Ordinance 2006-19-45: Appropriating $102,000 of biterest Income to Fund the Purchase ofBorough-Wide Emergency Communications Equipment (Mayor) (Hearing on 04/03/07) (Referred to Finance Committee) *d. Ordinance 2006-19-46: Appropriating $28,000 for Replacement of the Surge Tank and Sand Filter Systems at the Nikiski Pool (Mayor) (Hearing on 04/03/07) (Referred to Finance Committee) *e. Ordinance 2007-07: Amending KPB 5.18.100 to Set the Sales Tax Rate at 3 Percent Effective July 1, 2007 (Mayor) (Hearing on 04/03/07) (Referred to Finance Committee) *f. Ordinance 2007-08: Amending KPB 5.12.105 to Limit the Senior Citizens and Disabled Veterans Property Tax Exemption to $300,000 in Property Value, Requiring That the Same Criteria Apply to Exemptions of Property Valued at less than and Greater than the Mandatory Exemption on $150,000 in Property Value, and Providing for an Exemption from Taxes in Hardship Cases (Mayor) (Hearing on 04/03/07) (Referred to Finance Committee) *g. Ordinance 2007-09: Authorizing aOne-Year Extension ofthe Option to Lease Ladd Landing between the Kenai Peninsula Borough and Richard D. Bass, William Herbert Hunt and William Herbert Hunt Trust Estate, or Assignee (Mayor) (Shortened Hearing on 03113/07) (Referred to Finance and Lands Committee) Q• R. S. T PUBLIC COMMENTS AND PUBLIC PRESENTATIONS (3 minutes per speaker) ASSEMBLY MEETING AND HEARDVG ANNOUNCEMENTS March 13, 2007 7:00 PM Regular Assembly Meeting Soldotna ASSEMBLY COMMENTS PENDING LEGISLATION' (This item lists legislation which will be addressed at a later date as Doted J Ordinance 2007-04: Authorizing the Lease of Land in the Cooper Landing Area to Cooper Landing Emergency Services, Inc. at Lcss than Fair Market Value (Mayor, Long) (Hearing on 03/13!07) (Refereed to Finance Committee) February 2Q 2007 Page 4 ofl5 2. Ordinance 2007-05: Authorizing fhe Negotiated Lease at Fair Market Value of Proposed Lot 1 GO Gas Pad Subdivision Containing 1.0 Acre More or Less to Marathon Oil Company for Expansion of an Existing Natural Gas Production Pad (Mayor) (Hearing on 03/13/07) (Referred to Finance Committee) 3. Ordinance 2007-06: Amending KPB 4.10.130 to Provide that Election Expenses Related to Special Elections for the Benefit of a Service Area be Borne by the Service Area (Kropp, Merkes) (Hearing on 03/13/07) (Referred to Policies and Procedures Committee) 4. Ordinance 2006-19-41: Appropriating $100,000 to Support Kenai Peninsula Borough Efforts to Obtain Equitable Funding from the State ofAlaska for the Kenai Peninsula Borough School District (Mayor) (Hearing on 03/13/07) (Referred to Finance Committee) Ordinance 2006-19-42: Appropriating $1,183,732 from the General Fund to Provide Supplemental Funding from Local Sources for School Purposes During Fiscal Year 2006-2007 (Mayor) (Hearing on 03/13107) (Referred to Finance Committee) U. INFORMATIONAL MATERIALS AND REPORTS V. NOTICE OF NEXT MEETING AND ADJOURNMENT The next meeting of the Kenai Peninsula Borough Assembly will be held on March 13, 2007, at 7:00 P.M. in the Borough Assembly Chambers, Soldotna, Alaska. This meeting will be broadcast on KDLL-FM 919 (Central Peninsula), KBBLAM 890 (South Peninsula), K201 AC7-FM 88. / (Gast Peninsula). Copies of agenda. items are available at the Borough Clerk's Office in Che Meeting Room just prim to the meehhg. For further irzformatian, p/ease call the Clerk's Office at 714-2160 or told free witAin the Borough at 1-800- 478-444], Ext. 2160. Visit our iae6site at www.bnrough.kenai.ak.us for copies of the agenda, meeting summaries, ordinances mvd resolutions. February 20, 2007 Page 5 oP 5 AGENDA `\\\NAI CITY COUNCIL -REGULAR MEETING i FEBRUARY 21, 2007 ?~ 7:00 P.M. KENAI CITY COUNCIL CHAMBERS xrwu,uasxa htto://www.ci.kenai.ak.us U ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. Tim Robertson, NUKA Research -- Emergency Operations Plan Review 2. Rusty Belanger, Acting State Fire Marshall --PRISM ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker) 1. Ordinance No. 2212-2007 -- Increasing Estimated Revenues and Appropriations by $1,000 in the General Fund for a Library Grant. 2. Ordinance No. 2213-2007 -- Increasing Estimated Revenues and Appropriations by $2,000 in the General Fund to Purchase a Dip Net Pay Shack. 3. Ordinance No. 2214-2007 -- Increasing Estimated Revenues and Appropriations by $39,000 in the General Fund Shop Department to Rebuild Loader. 4. Resolution No. 2007.04 -- Transferring $20,000 In the Airport Fund to Repair Props at PRISM. 5. Resolution No. 2007.05 -- Approving the Lease Form for Leases of Airport Land Outside of the Airport Reserve. 6. Resolution No. 2007-06 -- Approving the Lease Form for Leases of Airport Reserve Property. 7. Resolution No. 2007-07 -- Accepting the Donation of a Foam Pumper From ConocoPhillips Alaska, Inc. 8. Resolution No. 2007-08 -- Approving an Agreement Between the State of Alaska, Department of Transportation & Public Facilities, Department of Corrections, and the City of Kenai, Alaska, to Facilitate Construction of a Water Main to the Wildwood Correctional Complex, Project No. 50783 and Authorizing the City Manager to Execute the Agreement on Behalf of 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. 2215-2007 --Increasing Estimated Revenues and Appropriations by $1,212 in the General Fund for a Library Grant. 4. Approval -- Mini-Grant Application Amendments. 5. Approval -- Rental Agreement/Chevron North America Exploration and Production -- Alaska Regional Aircraft Fire Training Center. 6. Discussion -- Vintage Pointe Senior Housing/Raise of Rental Rates 7. Discussion -- Public Opinion Poll 8. Discussion -- Expansion of Kenai Municipal Cemetery 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 D427/211