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2013-06-19 Council Packet
COUNCIL PACKET DISTRIBUTION MAKE 17 PACKETS Council Meeting Date: 1 Mayor Council - 3 packets Clerk T City Manager City Attorney > Finance Library Fire De artment _Cunningham Kebschull Student Re Hall Binder �C Schmidt ¢ KSRM Mellish iJ r �_A3 ELECTRONIC COPY NOTICE p( Send out notice to Council and All with link to Council Packet DELIVER Council and Student Rep packets to Police Department Dispatch Desk. KSRM, Mellish & Schmidt pick up their packets in the Clerk's Office. JUNE 19, 2013 REGULAR COUNCIL MEETING REQUESTED ADDITIONS TO THE AGENDA ADD TO: REQUESTED BY: New Business as Item G.9 (on consent agenda): • *Introduction of Ordinance 2711 -2013: Appropriating $370,590 in the Airport Fund and City Shop Construction Capital Project Fund, All for the New City Shop Construction Project. Item D.2 Ordinance No. 2706 -2013: City Manager • Substitute Ordinance 2706 -2013 REQUESTED ADDITIONS TO THE PACKET ADD TO: Items D.1 Ordinance No. 2704 -2013: • Appendix IV and Proposed Substitute Appendix IV Items D.7- D.11 Resolutions 2013 -39 through 2013 -43: • Information Items on Charter Revision Commissions • Correspondence from Carol Freas City Manager REQUESTED BY: City Clerk Molloy City Clerk Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2711 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING $370,590 IN THE AIRPORT FUND AND CITY SHOP CONSTRUCTION CAPITAL PROJECT FUND, ALL FOR THE NEW CITY SHOP CONSTRUCTION PROJECT. WHEREAS, the City is in the process of constructing a new City Shop and maintenance facility for the maintenance of all City vehicle and equipment including the equipment of the Kenai Municipal Airport; and WHEREAS, Federal Aviation Administration (FAA) regulations allow FAA participation in the construction costs of facilities that will be used for maintenance of airport related equipment; and WHEREAS, the FAA participation is determined by a formula using the square footage required for maintenance of the largest piece of airport equipment to be serviced; and WHEREAS, upon approval of the project by the FAA and using the FAA's funding formula the City's Shop Construction project is eligible for FAA participation of $347,428, the accompanying State of Alaska matching funds of $11,581, and will require local contribution from the Airport of $11,581; and WHEREAS, participation by the FAA, State of Alaska, and the Kenai Municipal Airport in the construction costs of the new City shop is appropriate given the maintenance activity performed on airport equipment by the City Shop and is in the best interest of the City, its citizens, and the Kenai Municipal Airport; and, WHEREAS, upon approval of the project and issuance of a grant by the FAA and the State of Alaska $359,009 will be refunded to the Airport. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form. That this is a non -code ordinance. Section 2. That estimated revenues and appropriations be increased as follows: Airport Fund Increase Estimated Revenues: Appropriation of Fund Balance $370.590 Increase Appropriations: Transfer to City Shop Construction Capital Project Fund $ 70 590 Ordinance 2711 -2013 Page 2 of 2 City Shop Construction Capital Proiect Fund Increase Estimated Revenues: Transfer From Airport Fund $370.590 Increase Appropriations: City Shop Construction $370.590 Section 3. That pursuant to KMC 1.15.0700 this Ordinance shall take effect immediately upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of July, 2013. ATTEST: Sandra Modigh, City Clerk Approved by Finance: 7 PAT PORTER, MAYOR Introduced: June 19, 2013 Enacted: July 3, 2013 Effective: July 3, 2013 New Text Underlined; [DELETED TEXT BRACKETED] �I V'il�aye with a Past, C# witti a Future" MEMO: 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 hd Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 1 1111 1 1992 TO: City Council FROM: Rick Koch, City Manager DATE: June 19, 2013 SUBJECT: Ordinance No. 2711 -2013 The purpose of this correspondence is to respectfully request that a lay -down for the above referenced ordinance for introduction be added to your agenda. By introducing this ordinance at this meeting, the award of the contract for construction of the City's new shop will be able to be considered at the next City Council meeting. Administration believed that FAA share of project funding would have been available by this time. This ordinance will allow the City to move to accelerate by two weeks the construction contract award. Given the scope of this project, the erection of the building will take place in the fall /winter time frame and two weeks of tenting and heating is potentially an expensive undertaking. Thank you for your attention in this matter. If you have any questions, please contact me at your convenience. Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2706 -2013 (SUBSTITUTE) AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING GRANTS IN THE AMOUNT OF $461,540 FROM THE FEDERAL AVIATION ADMINISTRATION AND $15,384 FROM THE STATE OF ALASKA IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND AND APPROPRIATING $15,385 IN THE AIRPORT AND AIRPORT IMPROVEMETNS CAPITAL PROJECT FUND, ALL FOR THE OBSTRUCTION TREE REMOVAL PROJECT. WHEREAS, the City received a letter of correction from the Federal Aviation Administration (FAA) indicating trees on the southwest side of runway 1L /19R penetrate the imaginary surfaces of Federal Aviation Regulations Part 77 and a potential hazard to aviation and should be identified and removed; and WHEREAS, under the provisions of Part 77, along with federal grant obligations, the City of Kenai, as Airport owner, must take appropriate action to assure that the airspace required to protect instrument and visual operations to the Airport will be adequately cleared and protected; and WHEREAS, the City has been given a correction date of September 30, 2013; and WHEREAS, the City conducted an Environmental Assessment in accordance with the National Environmental Policy Act (NEPA) and FAA environmental guidelines that included significant public involvement; and WHEREAS, the FAA has indicated that the entire project estimated at $492,309 will be eligible for reimbursement (93.75% FAA and 6.25% split between the State of Alaska Department of Transportation and the City of Kenai). NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept grants from the Federal Aviation Administration and the State of Alaska in the amounts of $461,540 and $15,384 from the State of Alaska and $15,385 from the Kenai Municipal Airport's Obstruction Tree Removal Project and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. Ordinance 2706 -2013 Page 2 of 2 Section 3. That estimated revenues and appropriations be increased as follows: Air-port Fund Increase Estimated Revenues: Appropriation of Fund Balance $15,385 Increase Appropriations: Transfer to Airport Improvement Capital Project Fund 5 38 Airport Improvement Capital Project Fund Increase Estimated Revenues: Federal Grants $461,540 State Grants 15,384 Transfer From Airport Fund 15,385 492 3 Increase Appropriations: Obstruction Tree Removal Construction $49 Section 4. That pursuant to KMC 1.15.070(f this Ordinance shall take effect immediately upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: June 5, 2013 Enacted: June 19, 2013 Effective: June 19, 2013 New Text Underlined; [DELETED TEXT BRACKETED] nai Municipal Airport Memo "Serv(nW- tJ%e.GreatP,rKe iw+ Pentn&ula:' 305 N. WILLOW ST. SURE 200 K BW ALASKA 99811 TELEPHONE 907,293 -7951 FAX 907,2833737 To: Rick R. Koch - City Manager From: Mary Bondurant - Airport Manager Date: June 19, 2013 Subject: Amendment to Ordinance 2706 -2013 - Obstruction Tree Removal Project The purpose of this memo is to amend Ordinance 2706 -2103 introduced at the June 5, 2013 meeting. This ordinance appropriates anticipated grants from the Federal Aviation Administration and the State of Alaska with matching dollars appropriated from the Airport Improvement Capital Project fund for the Obstruction Tree Removal Project. The proposed substitute ordinance amends only the dollar amounts being accepted and appropriated. As explained in the memo of May 29" attached to the ordinance, the project costs were estimated in the original ordinance to keep the project moving forward in a timely order. The project cannot be started after July 15, 2013 and has a completion date of September 30, 2013. If you have any questions, please contact me. Cc: Terry Eubank — Finance Manager www.kenai.airport.com KMC 13.20.040 - 20 MILE PER HOUR SPEED ZONE AREA KENAI SPUR HWy Appendix IV Ordinance No. 2704 - 2013 KMC 13.20.040 - 20 MILE PER HOUR SPEED ZONE AREA Substitute Appendix IV Ordinance No. 2704 -2013 NATIONAL LEAGUE of CITIES Municipal Charters A municipal charter is the basic document that defines the organization, powers, functions and essential procedures of the city government. It is comparable to the Constitution of the United States or a state's constitution. The charter is, therefore, the most important legal document of any city. Charters are granted either directly by a state legislature by way of local legislation, or indirectly under a general municipal corporation law following a referendum vote of the proposal by the affected population. The state municipal leagues can provide information about the form of charter provided in each of the state constitutions. Charter Revision Occasionally, a city will seek to revise its charter. There are several reasons to do so, since the charter affects everything the city government does. It provides the basis for most municipal regulatory functions and for the delivery of municipal services. The process varies, but in New York State, for example, there are three ways to revise a municipal charter: 1) Charter Commission. Acharter commission must be established, and may be done by any of the following three procedures: A) The city's legislative body may establish a charter commission, or it may submit to the city voters the question of whether or not there shall be a charter commission. The council must indicate the number of members on the commission and whether the members shall be elected or appointed. B) The mayor of a city may create a charter commission by appointing no fewer than nine members. The commission is established upon filing the mayor's certificate of appointment with the city clerk, which must also name the chairman, vice chairman, and secretary. C) The establishment of a commission by voterinitiative requires either 45,000 signatures or the number of signatures equal to 15 percent of the votes cast within the city for the state's governor in the last gubernatorial election, whichever is less. The legislative body is then required to submit the matter to a referendum. After a charter commission has been created, it must review the entire charter and prepare a draft of proposed revisions. The proposed amendments are to be completed and filed with the city clerk in time for submission to the voters at the next general or a special election. 2) Initiative and Referendum. The city's voters must sign a petition for a new charter or charter amendments. The number of signatures required on the petition must equal 30,000 or at least 10 percent of the votes cast for the state's governor in the last gubernatorial election, whichever is less. The petition is then filed with the city clerk and submitted for judicial review. If the proposed changes require a referendum, the legislative body may submit the proposal to the voters at the next general election. 3) Direct Legislative Action. A city charter can be revised by direct action of the legislative body under its local law power. Source James A. Coon. "Revising City Charters in New York State, Local Government Technical Series." Albany, NY: New York State Department of State, Division of Local Government Services, June 1998. ® 2013 National League of Cities 11301 Pennsylvania Avenue NW Suite 550, Washington, DC 20004 +Yob. Sc rl �naEi ^s 5 s s Pl.iy VeuTupe Noms Grui' Morr> - SignJn C;0081C city charter revision commission Search Page 2 of about I inn . ow results IWeb CC' y of Utica NY Charter Revision Commission gCode360 Images ecode360.com /14003675 - Cached There shall be established 6 the Common Council of the City ttY of Utica a Charter Revision Videos Commission pursuant to the provisions. and amendments if any, of the ... News IPDF7 City Charter Revision - Pratt Center for Community Development Shopping praltcenter. nel/ slles /default1files/ ... /PratiCenter CharterBrief_0 pit[ - Cached City Charter Revision. Where Land Use Fits In, Mayor Bloomberg has announced the More appointment of a City Charter revision commission, conducting a wide-. City Charter Revision I Pratt Center Show search tools pralteenter.net/city- charter - revision- Cached - Similar As the New York City Charter Revision Commission meets to rewrite the document that governs New York City, the Pratt Center has been the city's leading .,. City Charter Revision I CHPC New York ww ..chpcnyorg/ our- pmjectstcity- chartenrevlsion /- Cached Following Mayor Bloomberg's announcement that a new City Charter Revision Commission had been appointed in March 2010, we formed a Charter Revision ... Hartford Charter Revision Commission 2012-2013 hartfordeharter. blegspotcomi- Cached Jun 7, 2013... Final product of the Charter Revision Commission. After conferring with the Court of Common Council and discussing their thoughts on our... COJ net Charter Revision Commission City of Jacksonville ,wj,netichy- council/ charter - revision- commisslon.aspx- Cached Charter Revision Commission. Chapter 17, Municipal Ordinance Code The Commission shall make recommendations to the Council and the member of the ... IPaFJ Revlsino City Charters - New York State Department of State w dos.ny.gov/ig/pubrcations/Revislng_City_Charters.pdf- Cached ways to revise a city charter: by charter commission, by initiative and referendum or by direct legislative action. Revision by Charter Commission. A charter... Cif of Marguehe MI - gity Charter Commission www.mgtctyorg /commission charter. html - Cached May 7, 2013 _. The action was preceded by the City Commission appointment of a ten member City Charter Review Working Group (Group) In July of 2011. IPOFJ REPORT OF THE 2002 CHARTER REVISION COMMISSION w . cllyofnewhevencom/.,. /NEW%20HAVEN %20CHARTER.06. PUBLIC% 20HEARING %20TRANSMITTAL.2%20MAY%202013. pdf - Cached Apr 30, 2013 ... NEW HAVEN CHARTER REVISION COMMISSION. THE PROPOSED THE CITY CLERK AND BOARD OF ALDERMEN. Approved April 30... City Charter Commission I Departments and Agencies I City of wvw. detroitmi .gw /..Xilychartercommlaslon aspx -Cached - Similar The Charter Commission is an elected body of nine residents tasked with tlreeing proposed revisions to the City of Detroit Chatter. The Commission has a... < G o SIC > Previous 1 2 3 4 5 6 7 6 9 10 11 Next Advanced search Search Help Send feedback Google Home Advertising Programs Business Solutions Privacy 8 Terms About Google rw... Ia „H...... IT",•rsu Ino-.., I Eewls IJc4i C, I; IC"mrds In ..... m I<a,.H COpyrght1 2012-2013 gauns for Handieter scowls. An aghn Reserved. - Citizens for I -y r I n..arY MenL:heater Schools Citizens for Excellence in educatlon. The keyto Manchester's future. Manchester Schools NOAE Op%N,IISSIOp THE tali(. NEWS EVENTS • JOIN f.inllAC15 ppIJATE News R: EVENTS a�-�jjJ11E © a ® PLAoxm EVENS VOTE YES ON SEPTEMBER 11TH TO CREATE A CHARTER COMMISSION I1 FOR OUR CITYI NEWS Amrcuss IF PROPERTY OWNERS HAVE THEIR PROPERTY RE- ASSESSED EVERY 10 YEARS, SHOULDN'T WHAT'S NEXT? Ras REtounts MANCHESTER'S MUNICIPAL GOVERNMENT BE RE- ASSESSED AT LEAST EVERY 10 YEARS! . . ...... .....__...._..........._ .._. EOUGTION ARTICLES 6ai /ot Quest/om Shall a Charter Commission be estabtshed Ion the purpose o /reels /nq the MANCHESTER SCHOOL Distant, "CURRICULUM munitlAal charter or establishing a new monfcoal charter] AUDIT" - - - -- TO BE RELEASED JUNE 19THI What is a Charter Commission? .._..._ .. ....... .... .... ...... . ... _............. •L _ r The City Charter sets the Structure and procedures that form the basis of our mun!c!pal government, Learn more > Inducing elections, departments, budgetary procedures, etc. At least every 10 years, the voters have the opportunity to vote on whether to elect a Charter Commission, A Charter Commission Is a group 9 elected Individuals who would, Over the course of 9 months, review the City Charter and then In 56�of Me following fall election, would Out before the voters a new or revised charter for approval. If the proposed new charter Is voted down, then Ne current charter would remain. Voting YES on JOIN September 11th for a Charter Commission only commits the city to a review of how the City's charter CMS NOW! 11 [an more Qn¢Riv¢y adOQSeOdI n¢QdS, OO[ LO a0y ape!RE Caage. WHETHER YOU CARE ABOUT Why VOIe YES? OR OVRCHILORPE _ PLEASE TAM MOMENT Voting "yes' on the municipal question would allow fora charter commission to be elected in the TYRCITY YOUR PROPERTY VALVE, ]OIN''- TO DONATE HOW the November 6lh elecion. The commission's job would than be to review [he city charter Including, ..- --- °---- °-- ----- •�- - - - - ....... _ -... _ ". - -- ... among other things, how Me School VISIACt Is structured and how tax money is appropriated. This is A group is more powerful 100% goes to the CMS an OPPORTUNITY that could lead to a change In the way our schools are funded. Please vote YES) than a single voical l mission- Donate Click to Join Howl ®© WxI SUPPORT OUR SPONSORS! ....._ ............. ... PLEASE CONSIDER PATRONIZING OUR BUSINESS SPONSORS! ..._-........ ..- ........ ._ ..... ......._...... Our sponsors are committed to the children of the Manchester School District and to the future of the city! Click to view Sponsors rw... Ia „H...... IT",•rsu Ino-.., I Eewls IJc4i C, I; IC"mrds In ..... m I<a,.H COpyrght1 2012-2013 gauns for Handieter scowls. An aghn Reserved. - Citizens for I -y r I n..arY MenL:heater Schools Welcome to the City of Manchester, NN Official Web Site Site Navigation E. Hhane Emergency Center F, Leisure and Entertainment Di City Calendars u; e- Semces L Transportation b'. Mayor and Apemen in Departmental Expenditures C Departments L+' Abport it', Assessors Bl Cemeteries O City Clerk Departmental Expenditure; City Clerk Announcemmas City Clerk Calendar City Clerk FAQ Contact CRY Clerk About Our GOyemment Ma lug Minutes and Agencies Boards and Commissions G City Charter R; CodeorOrdlnances u, Munldpal Archives and Be ords Landord Agent Form I.: Incenses and Permits F Vital Records and Genealogy r Vote Registration and Elections U Economic Development L -1 EnNronmental Rohction it Finance i +l Mre Ito Neagh I+. Human Resources la. JMOrmatbn Sytlems I? Library IT Parking d Parks and Recreation Cl Planning and Comm Dery N Pollee Public Work; b'. Highway I +; Fadi IA Fleet Management L + +; Purchasing (il Senior Serikes !b Solicitor Iti Tax CWKtor ffl Water Works Itl Welfare Itl Youth Services •; Adopt- A -51te Iti Recycle Manchester Ll Sustalmabhlty, Manchester Maps City Ordinances Contact Us G C14View Din atlons Register Lagin City perk Announcements e The Manchester Charter Commission has submitted their Preliminary Report Thursday, Ault 25, 2013 Tire CRy of ManclC #B'Charte Commission M1as fAed I[s preliminary reportof wgges[M Margu [b Ne Cry Charter The mpprt was submitted to the City Carl, on April 25, 2013, and will be knvardel to Ne Sece[ary Of state, Department of Aawenue AEminioatipn and Manney General for their review. Below Is a summery of Vie dMigu being suggested: inoease the rvvmber a temp that an anointed Imul w commisvon member can save fmm two threeyear Nnns to four thrsyear firms Change the mayor%Salary From $60,000 to $100,000, effective January 1, 2019 Make MefomNSSianer of Welfare posltbn an appointed delarbrcnt head acallon rather Nan eJeUed ■ Conrad csnnia of Interest procedure for member of boards, comm6slon; and addhodaas ■ Increase the number of election ImsOSgs from three tic eight, 30 days Wore bath a primary and general municipal elect ■ Institute Fines of $100 for the first day and $10 for each additional day if Financial chiclasure reports are net net 11 Set Vie a:ddo ark stipend at $9,000 and Vie school lwad aboard at $7,000 and eliminate mr, ellgidlily to serve benents Nlobed to full time amployres ■ To Be ass sand date or hold dMive omce, a Person must be a ruder[ of the city for at leaf are year ■ Remove Me provision Nat allows Vie budget approval praccato control out to Mum 30N; the budget must be completed by Me second Tuesday In June A compete prdimmor, report can be, routs b=.. Conies are also available at Me City Oak's W[i Annual Rabies and Microchip Clinic on Saturday, March 23, 2013 Morday, Ma din 00 2013 The City Clerks Office will beldntng Vie Friends M Me Manchester Animal shelter at Me Annual Rabies Is Microchip Cimic on Saturday, March 23, 2013, frown MOM am. to 2:00 p.m. The dank WHO be held at Me Veterinary emergenry, Center located at 336 Abby Run! in rdamhee, Min us to ronva ienby renew your 2013 dog Incense wo, We City d Manchester and wecardi discounted rates an ables and distemper, Immunizations For SIMW or a mkadmi, for your favorite pooh for any $25.01 Official Election Results for Special Non - Partisan Municipal Election Wedwesday, November 07, 2012 Maid mutts are now realbote for the Special Non- Parrisan Municipal aeYlon to dot nine rgrresenra0ves for the CRY Charter Comndeadin and m nit the vacanry, In Me cam of Ward 11 Alderman. Vidal results For the Slate General F9KBan will be available from the Saraery of State upon catlFlcaton. Official Election Results WHbwsday, September 12, W12 OfFioal section returns are now, Moderns for the Special NomPartuan Municipal Ebtion he'd on September 11, 2012. As Founded by City Clrerte, municipal esters M NI twelve wards were wiled; "Shall a Charter CommussM be established For the purpose of amsing the mookmal iodation or estatlbhVg a rev momkipal chars l7" The City Ca rl wAl row rt adest Nat Me ncard of Mayor and Aldermen set a date and 6. or a Special MuNCipal Elec on to sect nine ManMester residents to serve on this Charter CanmiMion. Datalls regarding doe spe a elation and the process to Ole a Declaration of Candidacy form will be available on September 19, 2012 by mating our webslts or calling the office at6246955. Votes In Wand 11 also seleRed two candidates morn a frets of four to appear on a specHt general section belbt. The candidate recewing the most vote, will fill the current yamocy and Mmainder of the term for Ward 11 aderman Voter Identification Requirements in Manchester FdtleB July 27, 2012 Explore your city... austintexaskgov file, offirial rvebsile of the City of Austin Department w Communications n Programs a 2012 Charter Revision DepanmentHome 2016hehr%re6istncfset Involved 2012 CHARTER REVISION The 2012 Charter Revision Committee recommended charter revisions to the Austin City Council in March 2012. Yew the Final Report to City Council. Committee The members are representative of the community and residents of Austin during the charter revision process. The committee will seek public input from the community and civic organizations during this process. Those wanting to participate are encouraged to attend one of the committee meetings where they will have an opportunity to address the committee, participate on the online forum or call the committee hotline. This website has links and resources that will help to ensure the process Is accessible to all parties wanting to participate. Charter Resolutions The Committee purpose is to make recommendations to the City Council regarding proposed City Charter amendment language in Resolution Nos. 20100624 -078, 20110428 -04v and 20110623 ( "� 1. Make recommendations regarding the proposed maps presented to Council and any maps presented to the Committee in compliance with the districting criteria and guidelines In Resolution Nos. 20110526 -024 and 20110526 -025. See Resolution No. 20110804 -028 for additional information regarding the Committee. View the entire City of Austin Charter and City Code, RECENT NEWS • February 1, 2012 Charter Revision Committee slates final meeting • January 19, 2012 2012 Charter Revision Committee meets tonight • January 3, 2012 2012 Charter Revision Committee meets Thursday to discuss City Council seats • December 5, 2011 2012 Charter Revision Committee meets Thursday at City Hall • November 28, 2011 2012 Charter Revision Committee meets Thursday at Carver Library View More News Share ® L U 9 TOP CONTENT ;r Channe16 � Frequently Asked Questions u Community Registry �+ 2013 Election Resources u Austin Holiday Events NN ES OTA The most livable city in America Improving the govemmentof Saint Paul by studying and analyzing Issues and concems of the City Educating citizens about the Charter and encouraging involvement in the Commission's work Serving as a resource and providing oversight in solving problems that are deemed unsolvable by the City Council or inappropriate for the Council to address Hearing petitions regarding the CharWhom the public and the City Council Keeping the Charter current by reviewing the provisions and language to keep it up- to4ate and coordinated with Slate laws Be an Active Citizenl Saint Paul residents who are at least 18 years old may apply to serve on the Commission Meetings are normally scheduled for the 3rd Monday of the month. Redistricting The Charter Commission is responsible for the redistricting of city council ward boundaries. The new ward boundaries were approved in 2011, but due to changes in legislative lines the proposed boundades will be considered at a meeting on Monday, March 12, 2012, at 4;30 PM in Room 220 of City HaIL QUICK' Charter Commissicn AppiirsG.0 Charter Comm issme Members Charter Commission Ageraw and Minutes Hone I Ccm.zl I Tmnsam I Bile Map I Aboesibility I pisabllnv Access I Polidesa Praclices I Courrktht tvahce I Paemilby Ci,4P1i, You are here. JAM> 0ovemmet> ON Council > Charter Commission Charter Commission as rr.: e.::. .. Meetings , Vioeos, Aeantlss, 8 Select Language Minutes City saMfGS Gukm PMVere i by tai Sk Translate Charter Commission SaMCea ward Map Home Rule Charter warn offices Saint Paul's most basic rules for governance era found In the Home Rule Charter. The Charter defines the roles of the City Council and Mayor along with defining the City's general authority to finance and tax for public services. Voters approved this Charter in Servmc Requev n� 1972' Emplolrnent The Lecislatrve and Administrative Codes set out in specific detail how the City will provide services and the responsibilities of citizens. The C!ty Council adopts these E- SuhamyYn^ Codes by ordinance. Eapanot , Hmoob `� • Somali • {p Mission The Charter Commission is responsible for. Improving the govemmentof Saint Paul by studying and analyzing Issues and concems of the City Educating citizens about the Charter and encouraging involvement in the Commission's work Serving as a resource and providing oversight in solving problems that are deemed unsolvable by the City Council or inappropriate for the Council to address Hearing petitions regarding the CharWhom the public and the City Council Keeping the Charter current by reviewing the provisions and language to keep it up- to4ate and coordinated with Slate laws Be an Active Citizenl Saint Paul residents who are at least 18 years old may apply to serve on the Commission Meetings are normally scheduled for the 3rd Monday of the month. Redistricting The Charter Commission is responsible for the redistricting of city council ward boundaries. The new ward boundaries were approved in 2011, but due to changes in legislative lines the proposed boundades will be considered at a meeting on Monday, March 12, 2012, at 4;30 PM in Room 220 of City HaIL QUICK' Charter Commissicn AppiirsG.0 Charter Comm issme Members Charter Commission Ageraw and Minutes Hone I Ccm.zl I Tmnsam I Bile Map I Aboesibility I pisabllnv Access I Polidesa Praclices I Courrktht tvahce I Paemilby Ci,4P1i, I Audio Recording Works with the City Attorney's Office; receives and initiates complaints of violations of the City's Code of Ethics; hears and investigates violations and transmits findings to the appropriate authority or City officer; renders advisory opinions or Interpretations with respect to applications of the Code; proposes revisions to the Code to ensure Its continuing pertinence and effectiveness. Board members are recommended by a panel consisting of at least two city managers rotated from cities in San Diego County, excluding Chula Vista. Meets on the 3rd Wednesday of the month at 5:15 p.m., City Hall Complex, 276 4th Ave., Bldg A, Conference Room C -101. I Learn more Works with the Library Director; represents the needs of the community and advises the City Council on Issues pertinent to the City's libraries; reviews library policies; provides feedback on library activities and plans. Meets on the 3rd Wednesday of the month at 4:00 p.m., Civic Center Branch Library, 365 F 6t. Conference Room. I Audio Recam'dino I website I1EW Constitutes a forum for Citywide discussion, research and analysis of matters relating to current or proposed provisions of the City Charter and amendments; helps coordinate citizen and staff ideas with regard to potential Charterchanges; formulates specific language for proposed Charter changes in a form appropriate for placement on the ballot; prepares and submits proposed ballot arguments in favor or against proposed Charter changes. Meets at the call of the Chair or majority vote of commission, Chula Vista Police Department, Community Room, 315 4th Ave. .: (This Commission is currently inactive) Works with the Library; creates a forum for Citywide discussion, research, and analysis of critical issues of child care; promotes the creation of affordable, quality child care for all children; advises Staff on appropriate procedures and fees to Increase the number of child care spaces available In the City; addresses child care legislation Issues. instrumental in development and continued support of Youth Policy Advocate Position. Works with the Human Resources Department; holds public hearings and provides recommendations to the City Council regarding the adoption, amendment, or repeal of civil service rules and regulations not in conflict with the City Charter; hears appeals of 11 0 Office of the City Clerk City Clark Boards /Commissions Boards and Commissions Boards/Commissions Ust Board of Appeals and Advisors Board/Commesion Vacancies eals and Advisors I Click e Board/Commission General Works with the Planning and Building Department to address issues pertaining to building Rules construction; investigates and advises on the suitability of alternate materials, types of construction and Interpretation of the adopted Uniform Code; conducts public hearings and recommends to the City Council the passage of new legislation concerning construction; Applications hears appeals relating to determinations by the Fire Chief or Director of Planning and Historic Preservation Building pursuant to adopted Uniform Codes. Commission Application All other Boards & Meets on the 2nd Monday of the month at 5:15 p.m., City Hall Complex, 276 4th Commissions Application Ave., Bldg B, Conference Room 137. I Audio Recording Works with the City Attorney's Office; receives and initiates complaints of violations of the City's Code of Ethics; hears and investigates violations and transmits findings to the appropriate authority or City officer; renders advisory opinions or Interpretations with respect to applications of the Code; proposes revisions to the Code to ensure Its continuing pertinence and effectiveness. Board members are recommended by a panel consisting of at least two city managers rotated from cities in San Diego County, excluding Chula Vista. Meets on the 3rd Wednesday of the month at 5:15 p.m., City Hall Complex, 276 4th Ave., Bldg A, Conference Room C -101. I Learn more Works with the Library Director; represents the needs of the community and advises the City Council on Issues pertinent to the City's libraries; reviews library policies; provides feedback on library activities and plans. Meets on the 3rd Wednesday of the month at 4:00 p.m., Civic Center Branch Library, 365 F 6t. Conference Room. I Audio Recam'dino I website I1EW Constitutes a forum for Citywide discussion, research and analysis of matters relating to current or proposed provisions of the City Charter and amendments; helps coordinate citizen and staff ideas with regard to potential Charterchanges; formulates specific language for proposed Charter changes in a form appropriate for placement on the ballot; prepares and submits proposed ballot arguments in favor or against proposed Charter changes. Meets at the call of the Chair or majority vote of commission, Chula Vista Police Department, Community Room, 315 4th Ave. .: (This Commission is currently inactive) Works with the Library; creates a forum for Citywide discussion, research, and analysis of critical issues of child care; promotes the creation of affordable, quality child care for all children; advises Staff on appropriate procedures and fees to Increase the number of child care spaces available In the City; addresses child care legislation Issues. instrumental in development and continued support of Youth Policy Advocate Position. Works with the Human Resources Department; holds public hearings and provides recommendations to the City Council regarding the adoption, amendment, or repeal of civil service rules and regulations not in conflict with the City Charter; hears appeals of Sandra Modigh From: clfreas @acsalaska.net Sent: Wednesday, June 19, 2013 11:10 AM To: Sandra Modigh Subject: Resolution Nos. 2013 -39, 2013 -40, 2013 -41, 2013 -42, and 2013 -43 Sandra, Please include this email as an addition to tonight's packet with regard to the above - referenced Resolutions. Thanks! Mayor and Council Members, I am unable to attend the council meeting this evening, but wanted to provide my concerns and thoughts with regard to Resolution Nos. 2013 -39, 2013 -40, 2013 -41, 2013 -42, and 2013 -43. Concerns include, but are not limited to: - -Lack of background information to identify and explain the sponsor's notion for bringing the issues forward at this time when the Charter has held (with few amendments) since the City's incorporation in 1963. (Council directed memoranda be attached to proposed ordinances and resolutions to educate it and the public prior to public hearings.) -- Updating references to "councilmen /councilman, man and men" is needed throughout the Charter. In the proposed resolutions, these gender - neutral amendments are not consistent throughout. Some of my thoughts include: -- Home Rule is defined as "The right to local self - government including the powers to regulate for the protection of the public health, safety, morals, and welfare; to license, to tax; and to incur debt." (West's Encyclopedia of American Law, Edition 2.) In Alaska, there are 145 city governments and of them, only 12 are home rule (the option of home rule became available at the time of statehood in 1959). -- The Kenai City Charter is the city's constitution. We recognize it could do with review and perhaps amending throughout. However, with no bases provided to identify need for immediate attention or consideration for amending, defeat Resolution Nos. 2013 -39, 2013 -40, 2013 -41, 2013 -42, or 2013 -43. - -Use the constructive discussion that will certainly come from Council's consideration of the resolutions and establish a Charter Review Commission. In doing so, the City's government will improve through studying and analyzing issues and concerns; the citizens will be educated about the Charter; the public will be encouraged to be involved in the Commission's work; and, by reviewing provisions and language, the City of Kenai Charter will be brought current. Thank you. Carol L. Freas 609 Maple Drive Kenai, AK 99611 NOTICE OF PUBLIC HEARING JUNE 19, 2013 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai will conduct a public hearing on the following Ordinance(s) and /or Resolution(s) on the above -noted meeting date. 1. Ordinance No. 2704 -2013 — Amending KMC 13.40.040 to Provide for a Seasonal Speed Limit of Twenty (20) Miles Per Hour While Driving Motorized Vehicles on a Certain Portion of the North Shore Public Beach. 2. Ordinance No. 2706 -2013 — Accepting and Appropriating Grants in the Amount of $375,000 from the Federal Aviation Administration and $12,500 from the State of Alaska in the Airport Improvement Capital Project Fund and Appropriating $12,500 in the Airport and Airport Improvements Capital Project Fund, All for the Obstruction Tree Removal Project. 3. Ordinance No. 2707 -2013 — Accepting and Appropriating a Grant in the Amount of $90,000 from the State of Alaska for the Public Safety Capital Project Fund. 4. Ordinance No. 2708 -2013 — Accepting and Appropriating a Grant in the Amount of $2,500,000 from the State of Alaska for the Water and Sewer Capital Project Fund. 5. Ordinance No. 2709 -2013 — Accepting and Appropriating a Grant in the Amount of $110,000 from the State of Alaska for the Public Safety Capital Project Fund. 6. Ordinance No. 2710 -2013 — Accepting and Appropriating a Grant in the Amount of $150,000 from the State of Alaska for the Personal Use Fishery Capital Project Fund. 7. Resolution No. 2013 -39 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Repealing Section 9 -4, Pardons, Paroles and Communications, of the Charter of the City of Kenai to Remove the Power of the Mayor to Pardon or Parole Persons Convicted of Violating City Charter or Ordinance and to Commute Sentences. 8. Resolution No. 2013 -40 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2 -14. Ordinances: Adoption by Reference, of the Charter of the City of Kenai to Remove References to Milk and Milk Products. 9. Resolution No. 2013 -41 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Article 10, Elections, of the Charter of the City of Kenai to Provide Designated Seats for Each Council Position and Allow Qualified Voters to Vote in an Election for a Candidate for Each Seat. 10. Resolution No. 2013 -42 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2 -6. Council: Meetings, of the Charter of the City of Kenai to Allow for a Reduced Number of Required Council Meetings and Provide a Means to Cancel Council Meetings. 11. Resolution No. 2013 -43 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 10 -3. Filing, to Remove the Requirement that Candidates for Mayor and Council Provide a Petition Signed by Twenty or More Registered Voters. 12. Resolution No. 2013 -44 -- Authorizing the City Manager to Renew the City's Insurance Coverage with Alaska Public Entity Insurance (APEI) to Commence July 1, 2013 and End June 30, 2014. 13. Resolution No. 2013 -45 — Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes Adopted During the Fy2014 Budget Process to Increase Monthly Rental Rates at Vintage Pointe, for New Rental Agreements and Make Housekeeping Changes. 14. Resolution No. 2013 -46 — Awarding a Contract to CPD ALASKA, LLC, for Furnishing and Delivering of Diesel Fuel. 15. Resolution No. 2013 -47 — Approving the Purchase of Two Police Vehicles Through State of Alaska Equipment Fleet Contract Pricing at a Total Cost of $57,666. The public hearing will commence at 7:00 p.m., or as soon thereafter as business permits, in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611. All interested persons are invited to attend the meeting and participate in the public discussion. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. Copies of the ordinances and /or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances and /or resolutions may be amended by the Council prior to adoption without further public notice. Corene Hall, CMC, Deputy City Clerk Posted: June 14, 2013 �� t AGENDA KENAI CITY COUNCIL — REGULAR MEETING JUNE 19, 2013 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http: / /www.ci.kenai.ak.us A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) `AII items listed with an asterisk (') are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker,- thirty (30) minutes aggregated) Ordinance No. 2704 -2013 — Amending KMC 13.40.040 to Provide for a Seasonal Speed Limit of Twenty (20) Miles Per Hour While Driving Motorized Vehicles on a Certain Portion of the North Shore Public Beach .... ............................... Pg 5 [Clerk's Note: Ordinance No. 2704 -2013 was postponed from the June 5, 2013 Council Meeting and the motion to enact is on the floor.] 2. Ordinance No. 2706 -2013 — Accepting and Appropriating Grants in the Amount of $375,000 from the Federal Aviation Administration and $12,500 from the State of Alaska in the Airport Improvement Capital Project Fund and Appropriating $12,500 in the Airport and Airport Improvements Capital Project Fund, All for the Obstruction Tree Removal Project ............................................. ............................... Pg 13 3. Ordinance No. 2707 -2013 — Accepting and Appropriating a Grant in the Amount of $90,000 from the State of Alaska for the Public Safety Capital Project Fund........ Pg 17 4. Ordinance No. 2708 -2013 — Accepting and Appropriating a Grant in the Amount of $2,500,000 from the State of Alaska for the Water and Sewer Capital Project Fund.......................................................................................... ............................... Pg 21 5. Ordinance No. 2709 -2013 — Accepting and Appropriating a Grant in the Amount of $110,000 from the State of Alaska for the Public Safety Capital Project Fund...... Pg 25 Ordinance No. 2710 -2013 — Accepting and Appropriating a Grant in the Amount of $150,000 from the State of Alaska for the Personal Use Fishery Capital Project Fund......................................................................................... ............................... Pg 29 7. Resolution No. 2013 -39 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Repealing Section 9- 4, Pardons, Paroles and Communications, of the Charter of the City of Kenai to Remove the Power of the Mayor to Pardon or Parole Persons Convicted of Violating City Charter or Ordinance and to Commute Sentences ............................. Pg 33 8. Resolution No. 2013 -40 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2- 14. Ordinances: Adoption by Reference, of the Charter of the City of Kenai to Remove References to Milk and Milk Products ......................... ............................... Pg 35 9. Resolution No. 2013 -41 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Article 10, Elections, of the Charter of the City of Kenai to Provide Designated Seats for Each Council Position and Allow Qualified Voters to Vote in an Election for a Candidate for Each Seat ........................................................... ............................... Pg 37 10. Resolution No. 2013 -42 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2- 6. Council: Meetings, of the Charter of the City of Kenai to Allow for a Reduced Number of Required Council Meetings and Provide a Means to Cancel Council Meetings................................................................................... ............................... Pg 41 11. Resolution No. 2013 -43 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 10 -3. Filing, to Remove the Requirement that Candidates for Mayor and Council Provide a Petition Signed by Twenty or More Registered Voters .............................. Pg 43 12. Resolution No. 2013 -44 -- Authorizing Insurance Coverage with Alaska Public July 1, 2013 and End June 30, 2014...... the City Manager to Renew the City's Entity Insurance (APE[) to Commence .................................. ............................... Pg 45 13. Resolution No. 2013 -45 — Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes Adopted During the Fy2014 Budget Process to Increase Monthly Rental Rates at Vintage Pointe, for New Rental Agreements and Make Housekeeping Changes ............. ............................... Pg 49 14. Resolution No. 2013 -46 — Awarding a Contract to CPD ALASKA, LLC, for Furnishing and Delivering of Diesel Fuel .. ............. Pq 53 City of Kenai Council Meeting Agenda Page 2 of 4 June 19, 2013 15. Resolution No. 2013 -47 — Approving the Purchase of Two Police Vehicles Through State of Alaska Equipment Fleet Contract Pricing at a Total Cost of $57, 666 ..................................................................................... ............................... Pg 57 E. MINUTES 1. *Regular Meeting of June 5, 2013 ........................................... ............................... Pg 59 F. UNFINISHED BUSINESS G. NEW BUSINESS 1. Action /Approval — Bills to be Ratified ................................... ............................... Pg 73 2. Action /Approval — Purchase Orders Exceeding $15, 000 ...... ............................... Pg 75 3. *Action /Approval — First Extension to Agreement for Janitorial Services at the Kenai Visitors and Cultural Center between the City of Kenai and Integrity Janitorial, LLC ........................................................................ ............................... Pg 77 4. *Action /Approval — First Extension to Agreement for Janitorial Services at City Hall between the City of Kenai and Integrity Janitorial, LLC ....... ............................... Pg 77 5. *Action /Approval — First Extension to Agreement for Janitorial Services at the Kenai Police Department between the City of Kenai and Integrity Janitorial, LLC.... Pg 83 6. *Action /Approval — First Extension to Agreement for Janitorial Services at the Kenai Community Library between the City of Kenai and Cleanway Janitorial Services..................................................................................... .............................Pg 87 7. *Action /Approval — First Extension to Agreement for Janitorial Services at the Kenai Municipal Airport between the City of Kenai and Integrity Janitorial, LLC ......Pg 91 8. Action /Approval -- Consent to Sublease and Sale Agreement between the City of Kenai, MITAK, LLC and Pink Coyote Limited for Lot 1 and Lot 1 -A Aleyeska Subdivision................................................................................. .............................Pg 95 H. COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission .............................. 5. Parks and Recreation Commission 6. Planning and Zoning Commission........ 7. Beautification Committee 8. Mini -Grant Steering Committee............ ...................................... .............................Pg 135 ...................................... .............................Pg 139 ..................................... .............................Pg 147 I. REPORT OF THE MAYOR City of Kenai Council Meeting Agenda Page 3 of 4 June 19, 2013 J. ADMINISTRATION REPORTS 1. City Manager .............................................................................. .............................Pg 149 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION — None. M. PENDING ITEMS — None N. ADJOURNMENT INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review ........................Pg 159 2. 2013 Alaska Gaming Permit Application for Loyal Order of Moose Lodge 1942. ..... Pg 161 The agenda and supporting documents are posted on the City's website at www.ci.kenai.ak.us . Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907 - 283 -7535 ext 231. City of Kenai Council Meeting Agenda Page 4 of 4 June 19, 2013 Suggested by: Council Member Boyle CITY OF KENAI ORDINANCE NO. 2704 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 13.40.040 TO PROVIDE FOR A SEASONAL SPEED LIMIT OF TWENTY (20) MILES PER HOUR WHILE DRIVING MOTORIZED VEHICLES ON A CERTAIN PORTION OF THE NORTH SHORE PUBLIC BEACH. WHEREAS, the City of Kenai is the owner of significant areas of public beaches within City limits, including the North Shore public beach; and, WHEREAS, the City of Kenai enforces its laws on beaches within the City; and, WHEREAS, certain parts of the North Shore beach are heavily used on a seasonal basis by a wide range of recreational, personal use and commercial users; and, WHEREAS, use of motorized vehicles travelling in excess of twenty (20) miles per hour on certain parts of the North Shore beach can be hazardous due to large crowds present and the variety of activity occurring; and, WHEREAS, it is in the best interest of the citizens of the City of Kenai to enact a speed limit of twenty (20) miles per hour for motorized vehicles on the most heavily used portion of the North Shore beach within the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form: That this is a Code ordinance Section 2. Amendment of Section 13.40.040 of the Kenai Municipal Code: That the Kenai Municipal Code, Section 13.40.040, Speed limits, is hereby amended as shown on Appendix IV attached hereto and as follows: 13.40.040 Speed limits. The speed limit shall be ten (10) [MPH] miles per hour while [RIDING] operating a motor vehicle in a right -of -way of a residential or business area, a parking lot, as authorized in 13.40.020(c), or in close proximity of another person(s). Between April 1st and September 30th each year, the speed limit shall be twenty 20 miles per hour while driving on public beaches as shown on Appendix IV of this chapter. Section 3. Severability: If any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or New Text Underlined; DELETED TEXT 5 of 162 Ordinance No. 2704 -2013 Page 2 of 2 application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: Pursuant to KMC 1.15.070(f), this ordinance shall take effect one month after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5 day of June, 2013. ATTEST: Sandra Modigh, City Clerk PAT PORTER, MAYOR Introduced: May 15, 2013 Adopted: June 5, 2013 Effective: July 5, 2013 New Text Underlined; (DELETED TEXT BRACKETED] Me SUN KMC 13.20.040 - 20 MILE PER HOUR SPEED ZONE AREA Appendix IV Ordinance No. 2704 -2013 7 of 162 "Villa9e with a Past, City with a Future MEMO: 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 tlll'I 1992 TO: City Council FROM: Rick Koch, City Manager DATE: May 29, 2013 SUBJECT: Ordinance 2704 -2013, Seasonal Speed Limit on the North Beach The purpose of this correspondence is to provide information, and to recommend against Council adoption of the above referenced ordinance. will address two issues germane to the discussion regarding this ordinance; first, what is the need for this legislation, and second, what is the effect on City resources in enforcing an ordinance limiting the speed limit to 20 miles per hour on the North Beach. During the past year, the Kenai Police Department received eleven complaints relating to vehicle use on the North Beach. Ten of these complaints were from the same individual. As City Manager I would estimate that I received approximately two -dozen phone calls in which the caller complained about vehicle use on the North Beach. All of the calls I received were from the same individual who lodged ten of the eleven complaints with the Police Department. In the seven years I have served as City Manager I have not received a single complaint from an individual who said they were on the North Beach and felt endangered by a vehicle because of proximity or speed. Twenty miles per hour is the same limitation as provided for in school zones when children are present. Many of our citizens enjoy driving on the North Beach at a greater rate of speed than that limitation. If the issue is excessive speed while in proximity to other individuals on the beach there is already a provision in code that defines the allowance in that circumstance. KMC 13.40.040 stipulates a ten mile per hour speed limit when in close proximity of another person(s). If the issue is excessive noise, again there is already a provision in code, 8of162 KMC13.40.020(e), that provides for enforcement. Enforcement of a 20 mile per hour speed limit in an area that cannot be regularly patrolled by Police Officers is problematic. If a speed limit is placed on the North Beach and not actively enforced the City will be accused of not enforcing its ordinances. Given the nature of attempting to enforce a speed limit on the North Beach it would be necessary to maintain a presence on the beach by individuals trained in the use of radar. If the City chose to effectively enforce a speed limit from April 1St through September 30th on the North Beach it would require additional personnel and resources. I estimate the cost of these to be $20,000 to $40,000, depending on hours of enforcement. Additionally, roughly one -half of the area shown in Appendix IV to this ordinance is already off - limits to motorized traffic and would be in conflict with KMC 13.30.080. Please find attached a memorandum from the Chief of Police on this issue. Thank you for your attention in this matter. If you have any questions, please contact me at your convenience. 9 of 162 j "Vill49e with a Past, C# with a Future" - 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 a#-ftlQ Telephone: 907 -283 -7535 / FAX: 907 - 283 -3014 1I 199] Me cfiy °f KEN U SKA MEMO: TO: Rick Koch — City Manager FROM: Gus Sandahl — Police Chief DATE: 5/28113 SUBJECT: Ordinance 2704-2013 1 am providing some background information as the Council considers Ordinance 2704- 2013, which proposes to provide a seasonal speed limit of 20 mph on the North Beach, KMC 13.40.040 specifically addresses speed limits of off -road vehicles and states the following: The speed limit shall be ten (10) mph while riding in a right -of -way of a residential or business area, a parking lot, or as authorized in KMC 13.40.020(c), or in close proximity of another person(s). In 2012, there were 11 off -road vehicle complaints relating to the North Beach. Ten (10) of these 11 complaints were made by the same complainant. Of these 10 complaints, none of them resulted in enforcement action because responding officers were unable to substantiate any violation; or they were unable to find the alleged violator; or they were simply unable to respond due to higher priorities. 2012 tied with 2010 for the lowest number of off -road vehicle complaints in the City since 2006. In 2012, the Kenai Police Department investigated 160 motor vehicle crashes. None of those crashes involved off -road vehicles on the North Beach. There was one minor accident in the North Beach parking area that was reported, but not investigated. This involved a vehicle backing into another vehicle during the dipnet fishery. TEOs are on the North Beach regularly from May to August, and I think that has helped deter off -road vehicle complaints. TEOs do not receive radar operator training, nor should they. Speed enforcement is more complex (as is the subsequent court testimony) than the violations that TEOs typically deal with. Police officers receive a minimum of three full days of training before they are able to start speed enforcement in the field. 10 of 162 In 2012, Kenai Police Officers handled 8,297 calls for service, a significant spike over preceding years. I do not consider the North Beach a speed problem area that needs additional attention from police officers; as I think it receives more than adequate attention from our TEOs throughout the summer. Without additional police officer resources, it would be unreasonable for the Police Department to divert any current patrol resources to speed enforcement for a posted speed limit on the North Beach. I feel the Kenai Police Department is able to adequately address off -road vehicle issues with how the KMC is currently written. Given the above information, the Police Dept. recommendation is to not amend the existing code. 11 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 12 of 162 Suggested by: Administration CITY OF KENAI [ANCE NO. 2706 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING GRANTS IN THE AMOUNT OF $375,000 FROM THE FEDERAL AVIATION ADMINISTRATION AND $12,500 FROM THE STATE OF ALASKA IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND AND APPROPRIATING $12,500 IN THE AIRPORT AND AIRPORT IMPROVEMETNS CAPITAL PROJECT FUND, ALL FOR THE OBSTRUCTION TREE REMOVAL PROJECT. WHEREAS, the City received a letter of correction from the Federal Aviation Administration (FAA) indicating trees on the southwest side of runway 1L /19R penetrate the imaginary surfaces of Federal Aviation Regulations Part 77 and a potential hazard to aviation and should be identified and removed; and WHEREAS, under the provisions of Part 77, along with federal grant obligations, the City of Kenai, as Airport owner, must take appropriate action to assure that the airspace required to protect instrument and visual operations to the Airport will be adequately cleared and protected; and WHEREAS, the City has been given a correction date of September 30, 2013; and WHEREAS, the City conducted an Environmental Assessment in accordance with the National Environmental Policy Act (NEPA) and FAA environmental guidelines that included significant public involvement; and WHEREAS, the FAA has indicated that the entire project estimated at $ 400,000 will be eligible for reimbursement (93.75% FAA and 6.25% split between the State of Alaska Department of Transportation and the City of Kenai). NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept grants from the Federal Aviation Administration and the State of Alaska in the amounts of $375,000 and $12,500 respectively for the Kenai Municipal Airport's Obstruction Tree Removal Project and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. 13 of 162 Ordinance 2706 -2013 Page 2 of 2 Section 3. That estimated revenues and appropriations be increased as follows: Airport Fund Increase Estimated Revenues: Appropriation of Fund Balance $12.500 Increase Appropriations: Transfer to Airport Improvement Capital Project Fund $12.500 Airport Improvement Capital Proiect Fund Increase Estimated Revenues: Federal Grants $375,000 State Grants 12,500 Transfer From Airport Fund 12,500 $im= Increase Appropriations: Obstruction Tree Removal Construction $400.000 Section 4. That pursuant to KMC 1.15.0700 this Ordinance shall take effect immediately upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. ATTEST: Sandra Modigh, City Clerk Approved by Finance: New Text Underlined: PAT PORTER, MAYOR Introduced: June 5, 2013 Enacted: June 19, 2013 Effective: June 19, 2013 TEXT BRACKETED 14 of 162 305 N. YYILLOWST. SURE 2DO KIPM&ALASKA88611 � ��� FAX 907-2833M Municipal Alrporrt Memo To: Rick R. Koch - City Manager From: Mary Bondurant - Airport Manager Date: May 29, 2013 Subject: Fund Appropriation — Obstruction Tree Removal Project The FAA issued a Letter of Correction to the Kenai Municipal Airport to remove tree obstructions that penetrate the Part 77 surfaces and present a potential hazard to aviation. The letter gave the City a correction date of September 30, 2013. In order to keep the project moving forward in a timely order, an ordinance appropriating funds should be included in the June 5, 2013 Council packet. Since the bid opening is not until May 29, 2013, the ordinance will have an estimated project cost. After the bid opening and verification of the successful bidder, a grant application with the actual project costs will be sent to the FAA for consideration. Upon receipt of the FAA grant offer, a substitute ordinance will be included in the June 19, 2013 Council packet for Council approval. The Obstruction Tree Removal Project is scheduled to begin after July 15, 2013 If you have any questions, please contact me. Cc: Terry Eubank — Finance Manager w kaw.kenai.airport.com 15 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 16 of 162 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2707 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT IN THE AMOUNT OF $90,000 FROM THE STATE OF ALASKA FOR THE PUBLIC SAFETY CAPITAL PROJECT FUND. WHEREAS, Senate Bill 18 authorized a grant for the City in the amount of $90,000 for the purchase of a new firefighting rescue boat; and, WHEREAS, Senate Bill 18 was signed by Governor Parnell on May 22, 2013 and funding becomes available July 1, 2013; and, WHEREAS, these grant funds will be used for the purchase of a new firefighting /rescue boat and related appurtenances to replace the City's aging boat to provide continued water rescue capabilities for the department in the Kenai River and its mouth in Cook Inlet; and, WHEREAS, acceptance of this grant is in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a grant from the State of Alaska in the amount of $90,000 for purchase of a new firefighting /rescue boat and related appurtenances and is authorized to execute a grant agreement and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Public Safety Capital Proiect Fund Increase Estimated Revenues: State Grants $90.000 Increase Appropriations: Firefighting Rescue Boat Machinery & Equipment $ 000 Section 4. That pursuant to KMC 1.15.0700 this Ordinance shall take effect on July 1, 2013. 17 of 162 Ordinance 2707 -2013 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: June 5, 2013 Enacted: June 19, 2013 Effective: July 1, 2013 New Text Underlined; (DELETED TEXT BRACKETED] 18 of 162 4 9 ym W - V �kTo: Rick Koch, City Manager "!i'i�aye with a Past, C# with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 71 From: Terry Eubank, Finance Director Date: May 29, 2013 Re: Ordinance 2707 -2013 The purpose of this memo is to provide supporting information for Ordinance 2707 -2013. Ordinance 2707 -2013 will appropriate grant funds received fi-om the State of Alaska for the purchase of a fire /rescue boat for the Kenai Fire Department. The City operates a Federal Aviation Administration designated Part 139 Airport with over twenty regularly scheduled passenger flights per day. The airport's southern approach is over Cook Inlet and the mouth of the Kenai River creating the need for water rescue capabilities. The department must also respond to sunk or swamped marine vessels operating in the Kenai River and Cook Inlet near the River's mouth. This funding will replace the department's existing aging rescue boat that is in need of approximately $40,000 in repairs and requires approximately $7,500 in annual maintenance due predominately to its age. 19 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 20 of 162 Suggested by: Administration CITY OF KENAI rANCE NO. 2708 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT IN THE AMOUNT OF $2,500,000 FROM THE STATE OF ALASKA FOR THE WATER AND SEWER CAPITAL PROJECT FUND. WHEREAS, SB 18 granted the City $2,500,000 for construction of a new water storage reservoir; and, WHEREAS, SB18 was signed by Governor Parnell on May 22, 2013 and funding becomes available July 1, 2013; and, WHEREAS, the continued reliable operation of the City's water production and distribution system is contingent upon construction of a new water storage reservoir that will meet the existing and future water storage requirements of the City, provide system redundancy, and provide alternate storage during major maintenance to the City's existing 3- million gallon reservoir; and, WHEREAS, acceptance of this grant is in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA. Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a grant from the State of Alaska in the amount of $2,500,000 for construction of a new water storage reservoir and is authorized to execute a grant agreement and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Water and Sewer Capital Project Fund Increase Estimated Revenues: State Grants $2.500.000 Increase Appropriations: New Water Storage Facility Construction Construction $ .SOOA00 Section 4. That pursuant to KMC 1.15.070(1) this Ordinance shall take effect on July 1, 2013. 21 of 162 Ordinance 2708 -2013 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance: —1. /Ilpt- Introduced: June 5, 2013 Adopted: June 19, 2013 Effective: July 1, 2013 New Text Underlmed; IDELETED TEXT BRACKETED] 22 of 162 lU "'Villaye with a Past, C# with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager 7,L From: Terry Eubank, Finance Director Date: May 29, 2013 Re: Ordinance 2708 -2013 The purpose of this memo is to provide supporting information for Ordinance 2708 -2013. Ordinance 2708 -2013 will appropriate grant funds received from the State of Alaska for the construction of a new water storage facility for the City's Water and Sewer Utility. The City's existing 3- million gallon reservoir was constructed in 1978 and has been in continuous service for 34 years. The reservoir has performed in an exemplary manner, providing adequate storage to meet domestic, industrial, and fire protection needs for the community. In 2011, the City hired a consultant to perform a condition survey of the existing reservoir who determined, "the interior coating system shows signs of extensive coating failure after its years of service. The roof coating has failed over 30% of the surface and the shell coating has blisters on 85% of the shell surfaces. The wall blisters are beginning to crack and cause large scale underfilm corrosion and delamination. There is no serious metal loss at this time but the tank will probably need to be repainted in 1 -3 years." Construction of a new water storage reservoir will provide for the continued reliable operation of the City's water production and distribution system, will meet the existing and future water storage requirements of the City, provide system redundancy, and provide alternate storage during major maintenance to the City's existing 3- million gallon reservoir. 23 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK pzno MUM Suggested by: Administration CITY OF KENAI NO. 2709 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT IN THE AMOUNT OF $110,000 FROM THE STATE OF ALASKA FOR THE PUBLIC SAFETY CAPITAL PROJECT FUND. WHEREAS, SB18 granted the City $110,000 for improvements at the Kenai Public Safety Building; and, WHEREAS, SB18 was signed by Governor Parnell on May 22, 2013 and becomes available July 1, 2013; and, WHEREAS, these grant funds will be used for building and infrastructure improvements at the Kenai Public Safety Building; and, WHEREAS, acceptance of this grant is in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a grant from the State of Alaska in the amount of $110,000 for Public Safety Building improvements and is authorized to execute a grant agreement and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Public Safety Capital Proicct Fund Increase Estimated Revenues: State Grants $ 10 000 Increase Appropriations: Buildings $I 1Q,000 Section 4. That pursuant to KMC 1.15.070(fl this Ordinance shall take effect on July 1, 2013. 25 of 162 Ordinance 2709 -2013 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance: Introduced: June 5, 2013 Adopted: June 19, 2013 Effective: July 1, 2013 New Tex[ Underlined; DELETED TEXT 26 of 162 V "Villaye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 I,V \ To: Rick Koch, City Manager 7'�From: Terry Eubank, Finance Director Date: May 29, 2013 Re: Ordinance 2709 -2013 The purpose of this memo is to provide supporting information for Ordinance 2709 -2013. Ordinance 2709 -2013 will appropriate grant funds received from the State of Alaska for the improvements at the Kenai Public Safety Building. The Kenai Public Safely Building houses the City's Police, Fire, and Communications (911 Dispatch) departments. These grant funds will be used for building and infrastructure improvements at the Kenai Public Safety Building. 27 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 28 of 162 Suggested by: Administration CITY OF KENAI NO. 2710 -2013 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT IN THE AMOUNT OF $150,000 FROM THE STATE OF ALASKA FOR THE PERSONAL USE FISHERY CAPITAL PROJECT FUND. WHEREAS, Senate Bill 18 authorized a grant for the City in the amount of $150,000 for Personal Use Fishery improvements; and, WHEREAS, Senate Bill 18 was signed by Governor Parnell on May 22, 2013 and funding become available July 1, 2013; and, WHEREAS, these grant funds will be used for the reconstruction of Meeks Trail which was damaged during fall 2012 rains and to purchase equipment and make improvements needed for management of City property during the annual Personal Use Fishery at the mouth of the Kenai River; and, WHEREAS, acceptance of this grant is in the best interest of the City and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a grant from the State of Alaska in the amount of $150,000 for Personal Use Fishery improvements and is authorized to execute a grant agreement and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Personal Use Fishery Capital Project Fund Increase Estimated Revenues: State Grants $1 Increase Appropriations: Meeks Trail Reconstruction Construction $ 70,000 Other Personal Use Fishery Needs Machinery & Equipment 80,000 $150.000 Section 4. That pursuant to KMC 1.15.070(o this Ordinance shall take effect on July 1, 2013. 29 of 162 Ordinance 2710 -2013 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance: �"'L Introduced: June 5, 2013 Enacted: June 19, 2013 Effective: July 1, 2013 New Text Underlined; DELETED TEXT BRACKETED] 30 of 162 "lV llaye with a Past, C# with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 -283 -7535 ext 221 / FAX: 907 - 283 -3014 The purpose of this memo is to provide supporting information for Ordinance 2710 -2013. Ordinance 2710 -2013 will appropriate grant funds received from the State of Alaska for Personal Use Fishery improvements. The Ordinance will provide funding for the reconstruction of Meeks Trail that was significantly damaged during the fall 2012 rains and for other capital improvements and equipment to assist the City in management and protection of City assets during the annual State of Alaska Personal Use Fishery. 31 of 162 V To: Rick Koch, City Manager From: / Terry Eubank, Finance Director Date: May 29, 2013 Re: Ordinance 2710 -2013 The purpose of this memo is to provide supporting information for Ordinance 2710 -2013. Ordinance 2710 -2013 will appropriate grant funds received from the State of Alaska for Personal Use Fishery improvements. The Ordinance will provide funding for the reconstruction of Meeks Trail that was significantly damaged during the fall 2012 rains and for other capital improvements and equipment to assist the City in management and protection of City assets during the annual State of Alaska Personal Use Fishery. 31 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 32 of 162 CITY OF KENAI RESOLUTION NO. 2013 -39 Suggested by: Mayor A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO. THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT THE REGULAR ELECTION OF OCTOBER 1, 2013, THE QUESTION OF REPEALING SECTION 9 -4, PARDONS, PAROLES AND COMMUNICATIONS, OF THE CHARTER OF THE CITY OF KENAI TO REMOVE THE POWER OF THE MAYOR TO PARDON OR PAROLE PERSONS CONVICTED OF VIOLATING CITY CHARTER OR ORDINANCE AND TO COMMUTE SENTENCES. WHEREAS, Section 9 - 4 Pardons, Paroles, and Communications, of the Kenai City Charter provides the Mayor the power to pardon or to parole any person convicted of a violation of the City Charter or ordinances, and to commute sentences subject to regulation of the Council; and, WHEREAS, the Council has not regulated the power of the Mayor to pardon, parole or commute sentences for violations of City Charter or Code and it appears the Mayor has only once, in 1970, issued a pardon, and there are no other records of paroles or commuted sentences; and, WHEREAS, the apparent lack of the exercise of power by City Mayor's in the last forty years to issue pardons, paroles or commute sentences demonstrates that whatever need was contemplated by the founders of the City's Charter no longer exists; and, WHEREAS, bestowing the power to pardon, parole and commute sentences on one person may unnecessarily infringe on due process, create inequitable remedies, allow for the possibility of favoritism and short- circuit the administrative and judicial systems of our local and state government designed to uphold justice in a fair and equitable manner. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1: That the following proposition shall be submitted to the qualified voters of the City of Kenai at the October 1, 2013 regular election in substantially the same form as set out hereafter: PROPOSITION No. X Pardons, Paroles, and Communications. Shall Section 9 - 4. Pardons, Paroles, and Communications, of the Charter of the City of Kenai that reads as follows be repealed in its entirety: New Text Underlined; ]DELETED TEXT BRACKETED] 33 of 162 Resolution No. 2013 -39 Page 2 of 2 The Mayor shall have power to pardon or to parole any person convicted of a violation of this Charter or of any ordinance, and to commute sentences therefore. The Council, by ordinance, shall have power to regulate and to limit the power granted by this section, and to provide that the Mayor may grant a pardon, parole, or commutation in any or all cases only upon recommendation or with approval of the Council or of a board created by ordinance. PROPOSITION YES [A Yes vote will repeal the Section of City Charter described above] NO [A No vote will retain the Section in Charter described above] PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] 34 of 162 CITY OF KENAI NO. 2013 -40 Suggested by: Mayor A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT THE REGULAR ELECTION OF OCTOBER 1, 2013, THE QUESTION OF AMENDING SECTION 2 -14. ORDINANCES: ADOPTION BY REFERENCE, OF THE CHARTER OF THE CITY OF KENAI TO REMOVE REFERENCES TO MILK AND MILK PRODUCTS. WHEREAS, Section 2 - 14 Ordinances: Adoption by Reference; of the Kenai City Charter allows for the Council to adopt certain codes, ordinances, standards and regulations by reference regarding building, plumbing, electrical installation, milk and milk products and other matters; and, WHEREAS, the Council does not, and will not in the foreseeable future, regulate milk and milk products; and, WHEREAS, it is in the best interest of the City to remove references from the City Charter that are not applicable. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1: That the following proposition shall be submitted to the qualified voters of the City of Kenai at the October 1, 2013 regular election in substantially the same form as set out hereafter: PROPOSITION No. X Ordinances: Adoption by Reference Shall Section 2 - 14, Ordinances: Adoption by Reference, of the Charter of the City of Kenai be amended to remove milk and milk products from the list of subjects such as building, plumbing and electrical installations, the Council specifically regulates. PROPOSITION YES [A Yes vote will amend the City Charter as described above] NO (A No vote will defeat the amendment described above] New Text Underlined; ]DELETED TEXT BRACKETED] 35 of 162 Resolution No. 2013 -40 Page 2 of 2 Section 2: That following the October 1, 2013 regular election, if the voters approve the proposition in substantially the same form as set out above, the following charter amendments would become effective: Section 2 - 14. Ordinances: Adoption by Reference The Council by ordinance may adopt by reference codes, ordinances, standards, and regulations relating to building, plumbing, electrical installations, [MILK AND MILK PRODUCTS,] and other matters which it has power to regulate otherwise. Such code, ordinance, standard, or regulation so adopted need not be enrolled in the book of ordinances; but a copy shall be kept in the office of the City Clerk and be open to public inspection. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] 36 of 162 CITY OF KENAI RESOLUTION NO. 2013 -41 Suggested by: Mayor A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT THE REGULAR ELECTION OF OCTOBER 1, 2013, THE QUESTION OF AMENDING ARTICLE 10, ELECTIONS, OF THE CHARTER OF THE CITY OF KENAI TO PROVIDE DESIGNATED SEATS FOR EACH COUNCIL POSITION AND ALLOW QUALIFIED VOTERS TO VOTE IN AN ELECTION FOR A CANDIDATE FOR EACH SEAT. WHEREAS, Article 10 Elections, of the Charter of the City of Kenai provides for council members to be elected at large without designated seats; and, WHEREAS, under the current process, in addition to voting for a candidate for mayor, each voter is entitled to vote for two candidates for council from the pool of candidates, or write in a person whose name does not appear on the ballot; and, WHEREAS, this process entails that essentially all candidates for council are running against each other; and, WHEREAS, changing to a system where each council position has a designated seat and allowing voters to vote for one candidate for each seat may encourage more candidates to run because candidates can choose a seat to run for and avoid running against certain other candidates running for different seats. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1: That the following proposition shall be submitted to the qualified voters of the City of Kenai at the October 1, 2013 regular election in substantially the same form as set out hereafter: PROPOSITION No. X Elections Shall Title 10, Elections, of the Charter of the City of Kenai be amended to provide for designated seats for each council member position and allow qualified voters to vote for one candidate for each seat up for election, as opposed to the current process in which all candidates run against each other for the available council positions and qualified voters may vote for up to two candidates. New Text Underlined; [DELETED TEXT BRACKETED] 37 of 162 Resolution No. 2013 -41 Page 2 of 3 PROPOSITION YES [A Yes vote will amend the City's Charter as described above) NO [A No vote will defeat the amendment described above] Section 2: That following the October 1, 2013 regular election, if the voters approve the proposition in substantially the same form as set out above, the following charter amendments would become effective: Section 10 -2. Three -Year terms - Election at large- Nonpartisan Elections. (a) At the regular election in 1965, and at the regular election held every three years thereafter, a mayor shall be elected. At every regular election after this Charter goes into effect, two councilmen shall be elected. (b) The Mayor and the other councilmen shall be elected for overlapping terms of three years, and shall serve thereafter until their respective successors are elected and qualify; provided that, if only one councilman is elected and qualifies in any year (because of failure of other candidates to file or for other cause), then lots shall be cast in a meeting of the Council and under its direction to determine which of the two councilmen whose terms are about to expire shall continue to serve; and provided further that, if (because of a vacancy) there is only one councilman whose term is about to expire, he shall continue to serve in such case. (c) The terms of office of the mayor and other councilmen shall begin at the time prescribed for the second regular Council Meeting after their election. If the mayor -elect or a councilman -elect fails to qualify within one month after the beginning of his term, his election shall be void, and the Council shall fill the vacancy. (d) The mayor and other councilmen shall be elected at large, with council members elected to a seat designated as A, B, C, D, E or F, by the qualified voters of the entire City, by secret ballot. The election shall be nonpartisan, and no party designation or emblem shall be placed on the ballot. Section 10 -3. Filing. Any qualified person may have his or her name placed on the ballot for the election as a candidate for mayor or councilman for a council seat by filing, with the City Clerk at times and pursuant to procedures provided by ordinance, a sworn statement of his candidacy provided that such sworn statement shall be accompanied by a nominating petition signed by 20 or more registered qualified city voters. New Text Underlined; DELETED TEXT BRACKETED] 38 of 162 Resolution No. 2013 -41 Page 3 of 3 Section 10 -4. Voting - Who Elected. (a) Every qualified voter of the City shall be entitled to vote for one candidate for mayor and for one candidate for each council seat ITWO CANDIDATES FOR COUNCILMAN. ON THE BALLOTS BETWEEN THE TITLE OF THE OFFICE AND THE NAMES OF THE CANDIDATES, SHALL BE PLACED THE INSTRUCTION "VOTE FOR ONE" OR "VOTE FOR TWO," AS THE CASE MAY BE. ]A voter may also write in the name of, and vote for, a person whose name does not appear on the ballot for any desienated council seat or for mayor. (b) The candidate for mayor receiving the greatest number of votes shall be elected. The [TWO] candidate[S] for each council[MAN] seat receiving the greatest number of votes shall be elected. In case of failure to elect because of a tie, the election shall be determined fairly by lot from among the candidates tying, in a meeting of the Council and under its direction. Section 10 -5. Filling Vacancies at Elections, etc. When a mayor and /or councilman or councilmen are being elected to fill a vacancy or vacancies for the unexpired term or terms, the provisions of this Charter shall apply as in the election of a mayor and /or councilmen for regular terms, insofar as applicable. The phrases "for one -year term," "For two -year term," and /or "For three -year term," as the case may be, shall be placed after the titles of the offices on the ballot as necessary to identify the places on the Council being filled at such election. [THE INSTRUCTION "VOTE FOR ONE" OR "VOTE FOR TWO" SHALL BE PLACED ABOVE THE NAMES OF THE CANDIDATES, DEPENDING ON WHETHER ONE OR TWO ARE TO BE ELECTED IN THE CATEGORY.] PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] 39 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 40 of 162 CITY OF KENAI RESOLUTION NO. 2013 -42 Suggested by: Mayor A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT THE REGULAR ELECTION OF OCTOBER 1, 2013, THE QUESTION OF AMENDING SECTION 2 -6. COUNCIL: MEETINGS, OF THE CHARTER OF THE CITY OF KENAI TO ALLOW FOR A REDUCED NUMBER OF REQUIRED COUNCIL MEETINGS AND PROVIDE A MEANS TO CANCEL COUNCIL MEETINGS. WHEREAS, Section 2 - 6. Council: Meetings, of the Kenai City Charter requires the Council to hold at least two regular meetings every month without exception; and, WHEREAS, there are times when it is not necessary to hold two regular meetings each month or when such a schedule would greatly inconvenience council members, administrative staff and the public due to holidays and seasonal activities; and, WHEREAS, there are also times due to a lack of quorum or an emergency that necessitate canceling a regular meeting; and, WHEREAS, it is in the best interest of the City to provide for a process to cancel a limited number of regular meetings when such meetings are unnecessary, an emergency is present, there is a lack of quorum or some other reason justifies cancelation. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1: That the following proposition shall be submitted to the qualified voters of the City of Kenai at the October 1, 2013 regular election in substantially the same form as set out hereafter: PROPOSITION NO. X Council: Meetings. Shall Section 2 - 6, Council: Meetings, of the Charter of the City of Kenai be amended to allow for cancellation of meetings by the Mayor due to lack of a quorum or for an emergency, or by a majority of council members for any reason as long as at least twenty (20) regular meeting are held each calendar year and at least one each month, along with other minor housekeeping amendments. New Text Underlined; IDELETED TEXT BRACKETED 41 of 162 Resolution No. 2013 -42 Page 2 of 2 PROPOSITION YES [A Yes vote will amend the City Charter as described above] NO [A No vote will defeat the amendment described above] Section 2: That following the October 1, 2013 regular election, if the voters approve the proposition in substantially the same form as set out above, the following charter amendments would become effective: Section 2 - 6. Councii: Meetings, of the Charter of the City of Kenai The Council shall hold at least two regular meetings every month unless canceled as provided in this section. Regular meetings shall be held at such times as [IT] may prescribe by ordinance, resolution, or rules of the Council. The Mayor or any four council[MEN] members may call special meetings. All meetings of the Council shall be open to the public, and the journal of its proceedings shall be open to public inspection; but committees of the Council, including the committee of the whole, may hold private meetings; provided that all actions of the Council shall be taken at public meetings. A meeting may be meetings are held each calendar year and at least one each month. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk New Text Underlined; ]DELETED TEXT BRACKETED] 42 of 162 CITY OF KENAI RESOLUTION NO. 2013 -43 Suggested by: Mayor A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT THE REGULAR ELECTION OF OCTOBER 1, 2013, THE QUESTION OF AMENDING SECTION 10 -3. FILING, TO REMOVE THE REQUIREMENT THAT CANDIDATES FOR MAYOR AND COUNCIL PROVIDE A PETITION SIGNED BY TWENTY OR MORE REGISTERED VOTERS. WHEREAS, City Charter Section 10 -3. Filing, requires that a candidate for mayor or council submit a petition signed by twenty (20) or more registered qualified City voters; and, WHEREAS, it is in the City's best interest to eliminate the petition requirement for candidacy as requiring a candidate to submit a petition with signatures of twenty (20) or more voters merely presents an inconvenience to candidates and creates administrative work for the City without any real benefit to the public. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1: That the following proposition shall be submitted to the qualified voters of the City of Kenai at the October 1, 2013 regular election in substantially the same form as set out hereafter: PROPOSITION No. X Filing Shall Section 10 -3, Filing, of the Charter of the City of Kenai be amended to eliminate the requirement that person running for Mayor or City Council submit a nominating petition signed by 20 or more registered City Voters. PROPOSITION YES [A Yes vote will amend the City Charter as described above] NO [A No vote will defeat the amendment described above] New Text Underlined; (DELETED TEXT BRACKETED) 43 of 162 Resolution No. 2013 -43 Page 2 of 2 Section 2: That following the October 1, 2013 regular election, if the voters approve the proposition in substantially the same form as set out above, the following charter amendments would become effective: Section 10 -3. Filing, of the Charter of the City of Kenai Any qualified person may have his or her name placed on the ballot for the election as a candidate for mayor or councilman by filing, with the City Clerk at times and pursuant to procedures provided by ordinance, a sworn statement of his candidacy ];PROVIDED THAT SUCH SWORN STATEMENT SHALL BE ACCOMPANIED BY A NOMINATING PETITION SIGNED BY 20 OR MORE REGISTERED QUALIFIED CITY VOTERS]. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013, PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] 44 of 162 e► t Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2013 -44 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO RENEW THE CITYS INSURANCE COVERAGE WITH ALASKA PUBLIC ENTITY INSURANCE (APEI) TO COMMENCE JULY 12013 AND END JUNE 30, 2014. WHEREAS, the City has been a member of APEI since July 1, 2000 receiving competitive rates and quality insurance coverage for the City; and, WHEREAS, the City entered into a three year commitment with APEI for insurance coverage commencing July 1, 2011 and ending 2014; and, WHEREAS, the three year commitment with APEI entitles the City to a 3 %, $18,835.00 for FY14, discount on renewal premiums; and, WHEREAS, as a long -term member of APEI the City receives annual premium renewal credits based upon APEI's prescribed member dividend program. The City's FY14 member dividend is $50,071.84 and is based upon the City's longevity with APEI and the City's excellent insurance loss history; and, WHEREAS, in addition to receiving a member dividend the City will also receive a premium credit of $50,793 for its loss control programs; and, WHEREAS, the APEI, three -year commitment allows the City to terminate the agreement should the City's net premium increase by more than 10% in any single year; and, WHEREAS, the 2013 renewal is $63,646.15 higher than 2012 premiums, a 20.6% increase, $48,817.49, 15.8 %, of the increase is related to workers compensation and is due to new medical fees schedules adopted by the State in 2012; and, WHEREAS, the remaining increase of $14,828.66, 4.8 %, is related to property and liability premiums and is a result of new facilities such as the water treatment facility and hardening of the insurance market; and, WHEREAS, based upon the high quality coverage, competitive premiums and credits totaling $119,699.84 for FY 14 it is in the City's best interest to retain coverage with APEI for the City's insurance needs. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the Council authorizes the City Manager to renew its coverage with APEI continuing the three year commitment for coverage which commenced July 1, 2011 and ends June 30, 2014. 45 of 162 Resolution 2013 -44 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. ATTEST: Sandra Modigh, City Clerk, Approved by Finance: PAT PORTER, MAYOR 46 of 162 LW "I/'1111ye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: June 10, 2013 Re: Resolution No. 2013 -44 Annual Insurance Renewal. Each year the City goes through a process of renewing its insurance coverage's. The City has purchased its coverage for Alaska Public Entity Insurance (APEI) since July 1, 2000 and has always received quality insurance at competitive rates. As an insurance pool, APEI provides insurance coverage to its members. APEI has implemented a premium credit program to return excess equity to its members. Excess equity is created when insurance premiums are in excess of actual claims. APEI has determined its retained earnings are in excess of its needs and has instituted a rebate program to its members. The program rewards members for longevity with APEI and for a positive loss history. The credit is only available to entities that renew their coverage with APEI. The FY14 City credit will be $50,071.84 upon renewal. APEI provides a premium credit for active safety programs of its insured. The credit is for up to a 4.0% of the City's property insurance premium, 15% of the City's liability insurance premium, and 15% of the City's workers compensation premium, all credits are net of APEI's premiums for reinsurance. Reinsurance is coverage provided by other insurance companies for liability in excess of APEI self - retention. The City received the maximum property credit of 4% or $730.19, the maximum liability credit of 15% or $9,477.77 and the maximum workers compensation credit of 15% or $40,585.04. The loss control credit requires the City to establish and operate a safety committee and provide safety training for its employees. The City will receive the maximum credit in all lines of insurance for FY14 for its program. The credit equals $50,793.00 for FY14 and is reflective of the City's active safety committee and more than 5,000 hours of safety related training taken by City personnel in FYI 3. APEI also provides a 3% longevity premium credit to members who enter into a three year commitment for coverage with APEI. The FY14 longevity credit offered to the City is $18,835. The three -year agreement required to receive the credit allows the City to terminate the agreement at any time should the net premium for coverage increase by more than 10% from one fiscal year to the next. The FY14 increased 20.6 %, $63,646.15 over FY13 premiums. $48,817.49, 15.8 %, of the increase is related to workers compensation and is due to new medical fees schedules adopted by the State in 2012. The remaining increase of $14,828.66, 4.8 %, is 47 of 162 related to property and liability premiums and is a result of new facilities such as the water treatment facility and hardening of the insurance market. Based upon the quality coverage, competitive rates, excellent service, and $119,699.84 in credits offered to the City for renewing it coverage, I recommend renewing coverage with APEI. 48 of 162 MA Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2013 -45 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES ADOPTED DURING THE FY2014 BUDGET PROCESS TO INCREASE MONTHLY RENTAL RATES AT VINTAGE POINTE FOR NEW RENTAL AGREEMENTS AND MAKE HOUSEKEEPING CHANGES. WHEREAS, as part of the FY2014 Budget process rental rates for units in Vintage Pointe were budgeted to increase; and, WHEREAS, rents are to increase on July 1, 2013 by $50 per month for units that are presently occupied, and the Comprehensive Schedule of Rates, Charges, and Fees has already been amended to reflect that change; and, WHEREAS, it is necessary to make minor corrections to the amended rental rates for presently occupied units, by adding one apartment class and correcting an apartment size; and, WHEREAS, units that become vacant on or after June 30, 2013 were intended to increase to market rental rates, including a CPI adjustment, and the Comprehensive Schedule of Rates, Charges, and Fees has not yet been amended to reflect that change. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, to amend the City's Comprehensive Schedule of Rates, Charges and Fees "Vintage Point Rents" section to: VINTAGE POINTE RENTS FOR UNITS WITH RENTAL AGREEMENTS DATED BEFORE TO JUNE 30, 2013 1 -A apartment =586 Sq. Ft. Ocean Side (881 $ 764.00 1 -A apartment =586 Sq. Ft. Street Side (51 $ 727.28 [1 -B apartment =637 Sq. Ft. Ocean Side $ 739.52] 1 -B apartment =637 Sq. Ft. Ocean Side (4) $ 776.24 1 -B apartment= 63[6]7 Sq. Ft. Street Side (66) $ 739.52 1 -C apartment =682 Sq. Ft. Ocean Side 14) $ 788.48 1 -C apartment =682 Sq. Ft. Street Side ]4) $ 751.76 (1 -C apartment =682 Sq. Ft. Ocean Side $ 776.24] 2 -A apartment =826 Sq. Ft. Ocean Side (3) $ 837.44 2 -A apartment =826 Sq. Ft. Street Side ]1) $ 800.72 2 -B apartment =876 Sq. Ft. Ocean Side (2J $ 849.68 2 -B apartment =876 Sq. Ft. Street Side (2) $ 812.96 New Text Underlined; (DELETED TEXT BRACKETED) 49 of 162 Resolution No. 2013 -45 Page 2 of 2 2 -C apartment-789 Sq. Ft. Ocean Side M $ 825.20 Monthly Automatic ACH Payment Fee $ - Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. FOR UNITS WITH RENTAL AGREEMENTS DATED AFTER JUNE 30, 2013 1 -A apartment =586 Sa. Ft. Ocean Side (8) $810.90 1 -A apartment =586 Sq. Ft. Street Side 151 $765.0 0 1 -B apartment =637 Sq. Ft. Ocean Side (41 $826.20 1 -B apartment =637 Sq. Ft. Street Side (61 $780.30 1 -C apartment =682 So. Ft. Ocean Side 141 $846.60 1 -C apartment =682 Sg. Ft. Street Side (4) $800.70 2 -A apartment =826 So. Ft. Ocean Side (3) $928.80 2 -A apartment =826 Sa. Ft. Street Side (1) $877.20 2 -13 apartment =876 So. Ft. Ocean Side (2) $943.50 2 -13 apartment =876 So. Ft. Street Side (2) $892.50 2 -C apartment =789 So. Ft. Ocean Side 1 918.00 Monthly Automatic ACH Payment Fee BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this Resolution shall be effective on July 1, 2013. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance: /!L'�j New Text Underlined; [DELETED TEXT 50 of 162 u " "V �laye with a Past, C# wdh a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 111111 1997 MEMO: TO: City Council FROM: Rick Koch, City Manager DATE: June 13, 2013 SUBJECT: Resolution 2013 -45 The purpose of this correspondence is to provide information and request Council adoption of the above referenced Resolution. The effect of this Resolution is to provide the basis to establish Vintage Pointe rents consistent with market rates for new rentals after June 30, 2013. This is consistent with, and part of the analysis which was presented to Council in a document dated March 28, 2013, and on which the adopted budget was predicated. Additionally there are minor housekeeping clarifications to the adopted fee schedule which increases rents on existing rentals by $50 each month in FY2014. If you have any questions, please contact me at your earliest convenience. 51 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 52 of 162 Suggested by: Administration thuyoj CITY OF KENAI KENAI, SKA RESOLUTION NO. 2013 -46 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT TO CPD ALASKA LLC FOR FURNISHING AND DELIVERING DIESEL FUEL WHEREAS, the following bids were received on June 11, 2013: Bidder I Price Per Gallon CPD Alaska LLC 1$3.762 Harbor Enterprises, Inc., d b a Alaska Oil Sales 1$3.811 ; and, WHEREAS, CPD Alaska LLC bid for diesel fuel is the lowest responsible bid and award to this bidder would be in the best interest of the City; and, WHEREAS, the recommendation from the City Administration is to award a contract to CPD Alaska LLC for furnishing and delivering diesel fuel; and, WHEREAS, the Bidder's invoiced price per gallon for diesel fuel will adjusted based on the Oil Price Information Service (OPIS) Reports; and, WHEREAS, the term of the contract will be from July 1, 2013 to June 30, 2016. The contract term may be extended upon mutual agreement of the parties for two additional one year periods. The contract will not be extended beyond June 30, 2018; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract is awarded to CPD Alaska LLC for furnishing and delivering diesel fuel to various locations in the City. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR 53 of 162 "Vllaye with a Past, Ci with a Future' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 the gyof zl MEMORANDUM KENA SKA TO: Rick Koch, City Manager FROM: Sean Wedemeyer, Public Works Director Smv DATE: June 12, 2013 SUBJECT: AWARD OF BID; FUEL FURNISH AND DELIVER 2013 Rick, The following sealed bids were received at City Hall at 2:15PM on June 11, 2013 for the subject project: FUEL FURNISH AND DELIVER 2013 Bidder I Price Per Gallon CPD Alaska LLC 1$3.762 Harbor Enterprises, Inc., d /b /a Alaska Oil Sales 1 $ 3.811 The scope of this contract includes furnishing and delivering Ultra -Low Sulfur Non - Highway Diesel No. 1 Fuel to City emergency generators and the Airport Operations Fuel Tank. The successful Bidder must subscribe to the Oil Price Information Service (OPIS.) The OPIS report submitted with the bid and used to establish the base price for future $ /gallon adjustment dated June 10th, 2013 was 3.71. The OPIS report used to adjust invoices shall be from the day immediately prior to the invoice date. The per gallon bid price will be adjusted for each invoice based on the percentage the Anchorage OPIS UBD RACK AVG (Unbranded Rack Average) changed. The adjusted price per gallon shall be rounded to the nearest $0.001. EXAMPLE Bid Price $3.762 /gallon OPIS UBD RACK AVG on June 10th, 2013 = 3.71 OPIS UBD RACK AVG on August 20 for Invoice Dated August 21 = 3.75 Adjusted Invoice $ /gallon = $3.762 x 3.75 / 3.71 = $3.803 /gallon CPD Alaska LLC (Crowley Petroleum Distribution) is the lowest responsible 54 of 162 bidder. The term of the contract will be from July 1, 2013 to June 30, 2016. The contract term may be extended upon mutual agreement of the parties for two additional one year periods. The contract will not be extended beyond June 30, 2018. I recommend City Council approve Resolution 2013 -46 to award this contract to CPD Alaska LLC. 55 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 56 of 162 / f Suggested by: Administration CITY OF KENAI LENM ALASKA �v� RESOLUTION NO. 2013 -47 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE PURCHASE OF TWO POLICE VEHICLES THROUGH STATE OF ALASKA EQUIPMENT FLEET CONTRACT PRICING AT A TOTAL COST OF $57,666. WHEREAS, two Police cruisers were included in the approved FY14 Police budget; and, WHEREAS, Kendall Ford in Wasilla is awarded the State of Alaska equipment fleet contract for the purchase of Ford Police Interceptors; and, WHEREAS, the Police Department requests to order /purchase two Police Ford Interceptor SUVs no earlier than July 1, 2013, at a total cost of $57,666; and, WHEREAS, KMC 7.15.050(f) allows the City of Kenai to purchase equipment without giving an opportunity for competitive bidding if the equipment is purchasable under the contract of another governmental agency in which contract the City is authorized to participate; and, WHEREAS, in past years, the City of Kenai has purchased police vehicles through the State of Alaska equipment fleet contract. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that effective July 1, 2013, the Police Department is authorized to purchase two Ford Police Interceptors (priced at $28,833 each) from Kendall Ford through State of Alaska equipment fleet contract pricing. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of June, 2013. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR 57 of 162 "Villaye with a Past, C# with a Future" Kenai Police Department ""O'd 107 S. Willow St., Kenai, Alaska 99611 IF Telephone: 907 - 283 -7879 / FAX: 907- 283 -2267 1991 MEMO: TO: Rick Koch — City Manager FROM: Gus Sandahl — Police Chief DATE: 6/12113 SUBJECT: Purchase of Police Vehicles Two police cruisers are budgeted for FY 14. The State of Alaska has awarded the State equipment fleet contract for Ford Police Interceptors to Kendall Ford in Wasilla. In past years, the City of Kenai has purchased police vehicles through State of Alaska fleet pricing, to help ensure the City pays the lowest available cost for this equipment. The State of Alaska Contract Fleet Award is an inherently competitive process, allowing for Ford dealerships across the State to bid on Police Interceptors. Per KMC 7.15.050(1) equipment may be purchased without giving an opportunity for competitive bidding if the equipment is purchasable under the contract of another governmental agency in which contract the City is authorized to participate. 1 am requesting that the City of Kenai purchase two, 2014 Ford Police Interceptor SUVs under the State of Alaska equipment fleet contract. The Kendall Ford price for the Police hrterceptor SUV, per State of Alaska fleet contract award, is $28,883. This price includes the road ready package and reverse sensing. The total cost for two Interceptors is $57,666. After approval, the Kenai Police Department intends to order the two vehicles on Monday, July 1, 2013. 58 of 162 KENAI CITY COUNCIL — REGULAR MEETING JUNE 5, 2013 — 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 hftp://www.ci.kenai.ak.us VICE MAYOR RYAN MARQUIS, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on June 5, 2013, in City Hall Council Chambers, Kenai, AK. Vice Mayor Marquis called the meeting to order at 7:00 p.m. 1. Pledge of Allegiance Vice Mayor Marquis led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Pat Porter, Mayor (telephonic) Mike Boyle Tim Navarre Brian Gabriel comprising a quorum of the Council. Also in attendance were: Rick Koch, City Manager Sandra Modigh, City Clerk Scott Bloom, City Attorney Corene Hall, Deputy City Clerk 3. Agenda Approval Ryan Marquis, Vice Mayor Robert Molloy Terry Bookey Vice Mayor Marquis requested the following additions to the packet: ADD TO: D -1: Ordinance No. 2656.2012 • Ordinance as amended at March 6 Council Meeting D -3: Ordinance No. 2704 -2013 0 2009 Memorandum by City Manager and Exhibit A • Email correspondence from the police department regarding ATV use on the North and South Beach D -5: Resolution No. 2013 -36 • Correspondence from Kathleen Martin, d /b /a KEE Construction, LLC 59 of 162 MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Bookey SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Bookey MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. Vice Mayor Marquis opened the floor for public comment, there being none public comment was closed. VOTE: There being no objections, SO ORDERED. 'All items listed with an asterisk ( ") are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS — None. C. UNSCHEDULED PUBLIC COMMENTS — None. D. PUBLIC HEARINGS 1. Ordinance No. 2656 -2012 — Amending the Kenai Municipal Code Section 3.10.070, Livestock Within the City Limits, to Exclude from the Definition of "Livestock" a Limited Number of Chicken Hens to Allow for the Keeping of a Small Number of Chicken Hens in the City and Amending Setback Requirements for Chicken Containment Structures [Clerk's Note: At its March 6, 2013 meeting, Council postponed Ordinance No. 2656 -2012 for 90 days and the ordinance was referred to administration. Motion to enact is on the floor.] Substitute Ordinance No. 2656 -2012 — Amending the Kenai Municipal Code Section (KMC) 3.10.070 Livestock within the City Limits, and KMC 3.05.100 Fees and Repealing and Reenacting KMC Chapter 3.15 Licensed Facilities, to Allow for Twelve (12) Chicken Hens or Less to be Kept on Certain Parcels within the City of Kenai that are Less than Forty Thousand (40,000) Square Feet in Size Pursuant to a License Issued by the Animal Control Office and Making other Housekeeping Changes to KMC 3.10.070 and Chapter 3.15. City of Kenai Council Meeting Minutes Page 2 of 14 June 5, 2013 60 of 162 MOTION: Council Member Bookey MOVED to amend Ordinance No. 2656 -2012 by substitution. Motion failed for lack of a second. Council Members Porter, Gabriel and Navarre spoke against the ordinance. Council Members Boyle and Molloy spoke in favor of the ordinance. MOTION TO POSTPONE: Council Member Boyle MOVED to postpone Ordinance No. 2656 -2012 to the second meeting in July and Council Member Molloy SECONDED the motion. VOTE ON POSTPONEMENT: YEA: Boyle, Marquis, Molloy NAY: Porter, Bookey, Gabriel, Navarre POSTPONEMENT FAILED. MOTION TO AMEND: Council Member Molloy MOVED to amend Ordinance No, 2656 -2012 by deleting "when possible" from section (g) and Council Member Boyle SECONDED the motion. Council took a brief at ease. VOTE ON AMENDMENT: YEA: Porter, Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre NAY: AMENDMENT PASSED UNANIMOUSLY. MOTION TO AMEND: Council Member Bookey MOVED to amend Ordinance No. 2656 -2012 by striking "more than 12" in (b)14; moving (g) to (i) and adding (h) as follows: (a) Comply with the provisions of this title, any and all applicable City, Borough, or State law or regulation and the terms, conditions, and limitations of any license issued hereunder. (b) Provide shelter adequate to preserve the health of the animals kept. (c) Maintain the chicken coop and chicken run in a sanitary condition. (d) Provide for the adequate care and feeding of animals kept. (e) Design and equip the chicken coop and chicken run so as to keep all animals on the premises and contained within a chicken coop and chicken run. (f) Keep only chicken hens for the purpose of egg production. (g) Keep no more than twelve (12) chickens on a parcel thirty thousand (30,000) square feet, no more than eight (8) chickens on a parcel between twenty thousand amity of Kenai Council Meeting Minutes June 5, 2013 61 of 162 (20,000) square feet and less than thirty thousand (30,000) square feet, no more than six (6) chickens on a parcel between ten thousand (10,000) square feet and less than twenty thousand (20,000) square feet, and no more than four (4) chickens on a parcel between eight thousand five hundred (8,500) square feet and less than ten thousand (10,000) square feet. No chickens may be kept on a parcel less than eight thousand five hundred (8,500) square feet. (h) Maintain the chickens and associated structures in such a manner that does not constitute a nuisance to owners or occupiers of land in its vicinity. Council Member Molloy SECONDED the motion. MOTION TO AMEND THE AMENDMENT: Council Member Boyle MOVED to amend the amendment by striking (g) and inserting "Keep six (6) chickens on any parcel up to 10,000 square feet and for every 2,000 additional square feet, one (1) additional chicken up to no more than twelve (12) chickens total." Council Member Molloy SECONDED the motion. Council took a brief at ease. VOTE ON AMENDMENT TO AMENDMENT: YEA: Boyle, Molloy NAY: Porter, Bookey, Gabriel, Marquis, Navarre AMENDMENT FAILED. MOTION TO AMEND: Council Member Molloy MOVED to amend Ordinance No. 2656 -2012 by amending 3.15.060(a) as follows: "Comply with the provisions of this title, any and all applicable City, Borough, or State law or regulation." Council Member Molloy SECONDED the motion. VOTE ON AMENDMENT: YEA: Porter, Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre NAY: AMENDMENT PASSED UNANIMOUSLY. VOTE ON ORIGINAL AMENDMENT: YEA: Bookey, Boyle, Gabriel, Marquis, Molloy NAY: Porter, Navarre AMENDMENT PASSED. Council took a brief at ease. MOTION TO POSTPONE: City of Kenai Council Meeting Minutes Page 4 of 14 June 5, 2013 62 of 162 Council Member Bookey MOVED to postpone Ordinance No. 2656 -2012 to the second meeting in August and Council Member Boyle SECONDED the motion. VOTE ON POSTPONEMENT: YEA: Bookey, Boyle, Molloy NAY: Porter, Gabriel, Marquis, Navarre POSTPONEMENT FAILED. VOTE ON ORDINANCE AS AMENDED: YEA: Bookey, Boyle, Molloy NAY: Porter, Gabriel, Marquis, Navarre MOTION FAILED. 2. Ordinance No. 2703 -2013 — Increasing Estimated Revenues and Appropriations by $512.45 in the General Fund - Police Department for State Traffic Grant Overtime Reimbursement. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2703 -2013 Increasing Estimated Revenues and Appropriations by $512.45 in the General Fund - Police Department for State Traffic Grant Overtime Reimbursement. Council Member Bookey SECONDED the motion. MOTION TO AMEND: Council Member Molloy MOVED to amend Ordinance No. 2703 -2013 by striking "$512.45" in the title, third whereas and under General Fund and inserting "$1333.75'; and by striking "to March" and inserting "through Memorial Day Weekend" in the third whereas. Council Member Bookey SECONDED the motion. VOTE ON AMENDMENT: YEA: Porter, Bookey, Boyle, Gabriel, Marquis, Molloy, Navarre NAY: AMENDMENT PASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: YEA: Porter, Bookey, Boyle, Gabriel, Molloy, Marquis, Navarre NAY: PASSED UNANIMOUSLY. Jty of Kenai Council Meeting Minutes Page 5 of 14 June 5, 2013 63 of 162 3. Ordinance No. 2704-2013 — Amending KMC 13.40.040 to Provide for a Seasonal Speed Limit of Twenty (20) Miles Per Hour While Driving Motorized Vehicles on a Certain Portion of the North Shore Public Beach. MOTION: Council Member Boyle MOVED to enact Ordinance No. 2704 -2013 Amending KMC 13.40.040 to Provide for a Seasonal Speed Limit of Twenty (20) Miles Per Hour While Driving Motorized Vehicles on a Certain Portion of the North Shore Public Beach. Council Member Molloy SECONDED the motion. Vice Mayor Marquis opened the meeting to public comment. Sue Carter, 1505 Toyon Way — Ms. Carter spoke concerning safety of children on the beach. There being no one else wishing to speak, the public hearing was closed. City Manager Koch reported there would be a sign posted on the beach regarding speed limits. MOTION TO POSTPONE: Council Member Molloy MOVED to postpone Ordinance No. 2704 -2013 to the June 19 meeting and Mayor Porter SECONDED the motion. VOTE ON POSTPONEMENT: YEA: Porter, Boyle, Gabriel, Molloy, Marquis, Navarre NAY: Bookey POSTPONEMENT PASSED. 4. Ordinance No. 2705 -2013 — Increasing Estimated Revenues and Appropriations by $2,343.04 in the General Fund — Police Department for Justice Assistance Grant Overtime Reimbursement. MOTION: Council Member Bookey MOVED to enact Ordinance No. 2705 -2013 Increasing Estimated Revenues and Appropriations by $2,343.04 in the General Fund — Police Department for Justice Assistance Grant Overtime Reimbursement. Council Member Gabriel SECONDED the motion. Vice Mayor Marquis opened the floor for public comment, there being none public comment was closed. VOTE: YEA: Porter, Boyle, Bookey, Gabriel, Molloy, Marquis, Navarre City of Kenai Council Meeting Minutes Page 6 of 14 June 5, 2013 64 of 162 NAY MOTION PASSED UNANIMOUSLY. 5. Resolution No. 2013 -36 — Granting Public Water and Sewer System Exceptions to KMC 14.10.080, Minimum Improvements, for Kee's Tern Subdivision Pursuant to KMC 14.10.090, Variations and Exceptions. Council Member Molloy MOVED to adopt Resolution No. 2013 -36 Granting Public Water and Sewer System Exceptions to KMC 14.10.080, Minimum Improvements, for Kee's Tem Subdivision Pursuant to KMC 14.10.090, Variations and Exceptions and Council Member Gabriel SECONDED the motion. Vice Mayor Marquis opened the floor for public comment. Kathleen Martin, Applicant— Ms. Martin spoke regarding road building variance. Ed Martin, Applicant — Mr. Martin spoke regarding road building variance. City Attorney Bloom reported an application for a variance would require a public hearing and proper notification. There being no one else wishing to speak, the public hearing was closed. MOTION TO AMEND: Council Member Navarre MOVED to amend Resolution No. 2013 -36 by adding "Section 3. Councils action to provide for a waiver for the request for public water and sewer shall be revoked if the subdivision or individual phases of the subdivision are not complete and accepted by the City within ten (10) years of this action." Council Member Bookey SECONDED the motion. VOTE ON AMENDMENT: YEA: Porter, Bookey, Boyle, Gabriel, Molloy, Marquis, Navarre NAY: AMENDMENT PASSED UNANIMOUSLY. VOTE ON MAIN MOTION AS AMENDED: YEA: Porter, Bookey, Boyle, Gabriel, Molloy, Marquis, Navarre NAY: MOTION PASSED UNANIMOUSLY. 6. Resolution No. 2013 -37 — Awarding a Contract for the Construction of Meeks Trail Repair to Peninsula Construction for an Estimated Total Cost of $67,380. Ay of Kenai Council Meeting Minutes Page 7 of 14 June 5, 2013 65 of 162 MOTION: Council Member Bookey MOVED to adopt Resolution No. 2013 -37 Awarding a Contract for the Construction of Meeks Trail Repair to Peninsula Construction for an Estimated Total Cost of $67,380 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Vice Mayor Marquis opened the floor for public comment, there being none public comment was closed. VOTE: There being no objections, SO ORDERED. E. MINUTES 1. *Regular Meeting of May 15, 2013 Approved by consent agenda. F. UNFINISHED BUSINESS — None. G. NEW BUSINESS 1. Action /Approval — Bills to be Ratified MOTION: Council Member Bookey MOVED to ratify the bills and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. VOTE: There being no objections, SO ORDERED. 2. Action /Approval — Purchase Orders Exceeding $15,000. MOTION: Council Member Bookey MOVED to approve purchase orders exceeding $15,000 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. VOTE: There being no objections, SO ORDERED. 3. Action/Approval — Recommendations to Mayor Navarre for Appointment to the Kenai Peninsula Borough Planning and Zoning Commission. MOTION: Council Member Bookey MOVED to recommend Commissioner Phil Bryson be appointed to the Kenai Peninsula Borough Planning and Zoning Commission and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion. City of Kenai Council Meeting Minutes Page 8 of 14 June 5, 2013 66 of 162 VOTE: There being no objections, SO ORDERED. 4. Action /Approval — Appointment to the Personnel Arbitration Board. MOTION: Council Member Molloy MOVED to appoint Carol Freas to the Personnel Arbitration Board. Council Member Boyle SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There being no objections, SO ORDERED. 5. Action /Approval — Collateral Assignment of Lease and Consent to Assignment of Lease for Security Purposes by the City of Kenai to Arctic Barnabas Ministries, Inc. for Lot 5, Block 5, General Aviation Apron Subdivision No. One in the Kenai Recording District, Third Judicial District, State of Alaska. MOTION: Council Member Gabriel MOVED to approve Collateral Assignment of Lease and Consent to Assignment of Lease for Security Purposes by the City of Kenai to Arctic Bamabas Ministries, Inc. for Lot 5, Block 5, General Aviation Apron Subdivision No. One in the Kenai Recording District, Third Judicial District, State of Alaska. Council Member Bookey SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There being no objections, SO ORDERED. 6. Action /Approval — Approving Acceptance of a Public Access Easement and Parking Area from Kenai Landing, Inc. MOTION: Council Member Molloy MOVED to approve Acceptance of a Public Access Easement and Parking Area from Kenai Landing, Inc. Council Member Navarre SECONDED the motion. Vice Mayor Marquis opened the meeting to public comment. Michael Dye, Box 1558, Homer — Mr. Dye thanked Administration for their work on this document. City Attorney Bloom noted there could be some small changes before the final approval. MOTION TO AMEND: Council Member Molloy MOVED to approve the acceptance in form substantially similar to the document with non material changes approved by the City Attorney, Council Member Gabriel SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON AMENDMENT: There being no objections, SO ORDERED. :ity of Kenai Council Meeting Minutes Page 9 of 14 June 5, 2013 67 of 162 VOTE ON MAIN MOTION AS AMENDED: There being no objections, SO ORDERED. 7. Action /Approval - Approving the Second Amendment to the Terminal Area Lease with Alaska Realty Group, Inc for Space No. 21. MOTION: Council Member Bookey MOVED to approve the Second Amendment to the Terminal Area Lease with Alaska Realty Group, Inc for Space No. 21 and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. VOTE: There being no objections. SO ORDERED. 8. Action /Approval - Approving the First Amendment to the Terminal Area Lease with Alaska Realty Group, Inc for Space No 9. MOTION: Council Member Bookey MOVED to approve the First Amendment to the Terminal Area Lease with Alaska Realty Group, Inc for Space No 9 and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. VOTE: There being no objections. SO ORDERED. 9. Action /Approval - Renewal of Special Use Permit to Reddi Towing & Salvage, LLC for Lot 4, Block 5, Cook Inlet Industrial Park. MOTION: Council Member Bookey MOVED to approve the Renewal of Special Use Permit to Reddi Towing & Salvage, LLC for Lot 4, Block 5, Cook Inlet Industrial Park and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. VOTE: There being no objections. SO ORDERED. 10. Action /Approval - Amending the Kenai City Council Policy Commission, Committee, Board and Council on Aging Meeting and Work Sessions by Reducing the Library Commission's Meeting Schedule to Quarterly. MOTION: Council Member Molloy MOVED to approve Amending the Kenai City Council Policy Commission, Committee, Board and Council on Aging Meeting and Work Sessions by Reducing the Library Commission's Meeting Schedule to Quarterly and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. VOTE: There being no objections. SO ORDERED. 11. Action /Approval - Approval of Restaurant Designation Permit for Jennifer Lee, d /b /a New Peking Chinese Restaurant. City of Kenai Council Meeting Minutes Page 10 of 14 June 5, 2013 68 of 162 MOTION: Council Member Bookey MOVED to direct the City Clerk to advise the Alcohol Beverage Control Board the Council has no objection to their Approval of Restaurant Designation Permit for Jennifer Lee, d /b /a New Peking Chinese Restaurant and requested UNANIMOUS CONSENT. Council Member Navarre SECONDED the motion. VOTE: There being no objections. SO ORDERED. 12. Discussion — Schedule Evaluations for the City Clerk, City Attorney and City Manager. The evaluations for the City Attorney and City Clerk were set for June 24 at 6:00 p.m. The evaluation for the City Manager was set for June 26 at 6:00 p.m. 13. *Ordinance No. 2706 -2013 — Accepting and Appropriating Grants in the Amount of $375,000 from the Federal Aviation Administration and $12,500 from the State of Alaska in the Airport Improvement Capital Project Fund and Appropriating $12,500 in the Airport and Airport Improvements Capital Project Fund, All for the Obstruction Tree Removal Project. Ordinance No. 2706 -2013 was introduced by consent agenda and public hearing scheduled on June 19, 2013. 14. *Ordinance No. 2707 -2013 — Accepting and Appropriating a Grant in the Amount of $90,000 from the State of Alaska for the Public Safety Capital Project Fund. Ordinance No. 2707 -2013 was introduced by consent agenda and public hearing scheduled on June 19, 2013. 15. *Ordinance No. 2708 -2013 — Accepting and Appropriating a Grant in the Amount of $2,500,000 from the State of Alaska for the Water and Sewer Capital Project Fund. Ordinance No. 2708 -2013 was introduced by consent agenda and public hearing scheduled on June 19, 2013. 16. *Ordinance No. 2709 -2013 — Accepting and Appropriating a Grant in the Amount of $110,000 from the State of Alaska for the Public Safety Capital Project Fund. Ordinance No. 2709 -2013 was introduced by consent agenda and public hearing scheduled on June 19, 2013. 17. *Ordinance No. 2710 -2013 — Accepting and Appropriating a Grant in the Amount of $150,000 from the State of Alaska for the Personal Use Fishery Capital Project Fund. :ity of Kenai council Meeting Minutes Page 11 of 14 June 5, 2013 69 of 162 Ordinance No. 2710 -2013 was introduced by consent agenda and public hearing scheduled on June 19, 2013. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging — Vice Mayor Marquis noted the next meeting would be June 13, 2013. 2. Airport Commission — Council Member Gabriel reported on the June 7 Peninsula Air Fair, the June 7 Open House for Lake and Peninsula Air from 11:00 to 2:00; and the June 13 work session at 6:00 p.m. prior to their regular meeting. 3. Harbor Commission — Council Member Molloy noted the June meeting had been cancelled. 4. Library Commission — Council Member Boyle reviewed the June 4 meeting, noting there would not be a Friends of the Library book sale this summer. 5. Parks and Recreation Commission — Council Member Bookey had no report. 6. Planning and Zoning Commission — Council Member Navarre noted the next meeting would be June 12. 7. Beautification Committee — Mayor Porter noted the meeting summary was in the packet. 8. Mini -Grant Steering Committee — Mayor Porter noted the next meeting would be June 7. 1. REPORT OF THE MAYOR Mayor Porter reported the following: • Council Members were invited to tour the Pebble Mine and to contact her if they were interested in attending. • Courtney Stroh would be the new Student Representative to the Council. • Spoke at the Torch Run. • Attended Kenai Central High School graduation. • Attended Mike Seaman's funeral service. • Attended the Memorial Day service. • Coffee with the Mayor was centered on the Beaver Loop neighborhood. • Vice Mayor Marquis threw out the first ball of the season for Little League in her place. J. ADMINISTRATION REPORTS 1. City Manager — Koch reported the following: City of Kenai Council Meeting Minutes Page 12 of 14 June 5, 2013 1 • AI[:3!0A • The Kenai Central High School turf field would be installed this week. • Jim Cockrell was appointed to Fish and Wildlife Protection and wanted to speak to administration regarding the personal use fishery. • He would be speaking with Senator Begich regarding Bluff Erosion. • Bike Trails were repaved. • The City had been deluged with building permits. 2. City Attorney — Bloom reported he attended the Alaska Bar Association conference in Juneau; he would be out of the office the first week of July; and, there would be no need for an Executive Session regarding the Referendum Petition to Repeal Ordinance No. 2681 -2013. 3. City Clerk — Modigh reported the Referendum Petition was certified sufficient and would be on the October 2 ballot; and, she would be out of the office June 6 through 17, Deputy City Clerk Hall would be Acting Clerk. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments — None. 2. Council Comments Council Member Navarre reported he had been watching the addition of the turf field Council Member Gabriel reported he attended the Memorial Day service and thanked Airport Manager Bondurant for the Peninsula Air Fair T -shirt. Council Member Bookey thanked the Parks and Recreation Department for their work in beautifying the city. L. EXECUTIVE SESSION — Matters which by Law, Municipal Charter, or Ordinance are Required to be Confidential [AS 44.62.310 (c)(3)) — Attorney / Client Privilege Regarding Lashbrook Board of Adjustment Appeal and Referendum Petition to Repeal Ordinance No. 2681 -2013. MOTION: Council Member Molloy MOVED to convene in an Executive Session — Matters which by Law, Municipal Charter, or Ordinance are Required to be Confidential [AS 44.62.310 (c)(3)] — Attorney / Client Privilege Regarding Lashbrook Board of Adjustment Appeal and requested the attendance of the City Attorney. Council Member Bookey SECONDED the motion. VOTE: YEA: Molloy, Marquis, Boyle, Navarre, Porter, Bookey, Gabriel NAY: PASSED UNANIMOUSLY. amity of Kenai Council Meeting Minutes Page 13 of 14 June 5, 2013 71 of 162 BREAK: 10:23 P.M. BACK TO ORDER: 11:44 P.M. Council Member Molloy reported the council met in Executive Session and gave direction to the City Attorney. M. PENDING ITEMS — None N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 11:45 p.m. Minutes prepared and submitted by: Coterie Hall, Deputy City Clerk City of Kenai Council Meeting Minutes Page 14 of 14 June 5, 2013 72 of 162 z O F U LL F Q J U z O U w W W Z m xo U r w o° z o � o .. o u. N O r Z LU F w ai g z J LLI U z QO d U 0 c m m � W 0 fV n O m w W J a a 7 C7 fn W U W_ Z F- f a- 0 El) a o M 0 a w O wLLJ y R � H � 4 J W w LL _U CO li J W J W O w W U 0 3 Q 73 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 74 of 162 J O Ix IL a Q _J V a O U O W W Z 2 U_ S O � O G C N O O pj W Z w 7 W � O a co O lz 0 W Z w w O W W W g Q J S z U Z � O O 2 U 0 0 ro 0 w c� Z O F U F U Z O U Y K Q a J _Q z Z_ z w Y 2 O Z W I— W Z_ Q g a Z) Q Z Cl) z w F 4 W O O 4 75 of 162 n0 uj J a U co rL 76 of 162 O o °o 0o N N � utOi o <n of n w w w W p > Z _U > w W y aJ w w Ja J a m Z Q 7c z O C9 2 O C9 w D O w LL Ir Q w R a o O w w a O w W F Z z w p U tr a a Oa LLJ Ir cc w w o ui o > a 3 z z w w w ' Q w a Z N U Q w _U >w L J > w N ( J Z O U) w w co yN Z Q U w U 1 lwi F 0 U W 7 U 1 a� w N w = U Wv Z V e y V LL pU LL I}L LL LL ! M O N O Z O Q w i W 2 U � w W I � LL O U O 8 0 m J Lu d J ui W m2 w J Q W Z J U 0: O po Q O i7 of z j3 p p O W w N Z M > J U > Y> 7 C9 m Z 76 of 162 u MEMO* "village with a Past, Gc�l with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 / FAX: (907) 283 -3014 www dkenai.ak.us rTO: Rick Koch, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: June 11, 2013 SUBJECT: FY14 Janitorial Services — City Hall & Visitor Center Kenai t t111Br 2011 On June 29, 2012, after a competitive bidding process, the City of Kenai entered into an Agreement for Services with Integrity Janitorial, LLC for janitorial and maintenance services for the Kenai Visitors and Cultural Center and City Hall. Paragraph 2 of the Agreement(s) allows for two successive one -year terms by mutual written consent of the parties. On May 1, 2013, Integrity Janitorial requested to extend the contract for one year at the same rate per month for both facilities. The City Attorney has reviewed the attached First Extension to Agreement for Services for the Visitor Center and City Hall and has no objection as to form. If Council approves the extensions, they may be executed by the parties. Attachment 77 of 162 FIRST EXTENSION TO AGREEMENT FOR SERVICES VISITOR CENTER JANITORIAL SERVICES THIS Extension to Agreement for Services is made as of the day of 2013, by and between the CITY OF KENAI (Owner), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and INTEGRITY JANITORIAL, LLC (Contractor), whose address is PO Box 3283, Kenai, Alaska 99611. WITNESSETH WHEREAS, on June 29, 2012, the City of Kenai entered into a contract with Integrity Janitorial, LLC for janitorial and maintenance services for the Kenai Visitors and Cultural Center (Facility); and, WHEREAS, paragraph 2 of the Agreement allows for two (2) successive one -year terms by mutual written consent of Owner and Contractor; and, WHEREAS, on May 1, 2013, Integrity Janitorial LLC requested to extend the Contact for one (1) year; and, WHEREAS, the City is satisfied with the performance of Integrity Janitorial LLC's services and is agreeable to a contract extension for a period of one (1) year. NOW THEREFORE, the parties agree as follows: 1. That pursuant to Paragraph 2 of the Contract, the terns of the Agreement for Services is extended from June 30, 2013 to June 30, 2014. 2. Except as expressly modified or stated herein, all other terns and conditions of the Contract remain in full force and effect. First Extension to Agreement for Services Integrity Janitorial, LLC CITY OF KENAI By: Rick R. Koch Its: City Manager INTEGRITY JANITORIAL, LLC By: / "� e9 Name: >,� s 1. ✓l,.Te Its: y^c.<r�E .r 78 of 162 Page I of 2 t Approved as to form: Scott Bloom City Attorney State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this _ day of , 2013, by Rick R. Koch, City Manager for the City of Kenai. Notary Public of Alaska My Commission Expires: State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this day of � C`� _, 2013, by M 1Ail� tC� (Name), F&Q ?I l (Title) for INTEGRITY JANITORIAL, LLC. ,tSLltfttfPiiP'�fv. ///^' ®ir Notary Public of Alaska ' " s My Commission Expires: zz 4 \� OM- First First Extension to Agreement for Services Integrity Janitorial, LLC 79 of 162 Page 2 of 2 FIRST EXTENSION TO AGREEMENT FOR SERVICES CITY HALL JANITORIAL SERVICES THIS Extension to Agreement for Services is made as of the day of , 2013, by and between the CITY OF KENAI (Owner), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and INTEGRITY JANITORIAL, LLC (Contractor), whose address is PO Box 3283, Kenai, Alaska 99611. WITNESSETH WHEREAS, on June 29, 2012, the City of Kenai entered into a contract with Integrity Janitorial, LLC for janitorial and maintenance services for Kenai City Hall (Facility); and, WHEREAS, paragraph 2 of the Agreement allows for two (2) successive one -year terms by mutual written consent of Owner and Contractor; and, WHEREAS, on May 1, 2013, Integrity Janitorial LLC requested to extend the Contact for one (1) year; and, WHEREAS, the City is satisfied with the performance of Integrity Janitorial LLC's services and is agreeable to a contract extension for a period of one (1) year. NOW THEREFORE, the parties agree as follows: 1. That pursuant to Paragraph 2 of the Contract, the term of the Agreement for Services is extended from June 30, 2013 to June 30, 2014. 2. Except as expressly modified or stated herein, all other terms and conditions of the Contract remain in full force and effect. First Extension to Agreement for Services Integrity Janitorial, LLC CITY OF KENAI By: Rick R. Koch Its: City Manager INTEGRITY JANITORIAL, LLC By: t" �_ Name: 7u L, < Le v.7! -2, Its: pis. l 80 of 162 Page 1 of 2 Approved as to form: Scott Bloom City Attorney State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this _ day of 2013, by Rick R. Koch, City Manager for the City of Kenai. Notary Public of Alaska My Commission Expires: State of Alaska ) ) ss Third Judicial District ) The fore oin i,In^-strumerit yeas acknowledged before me this �1— day of lm�( , 2013, by "M tNMI e (Name), �' � ,I r (Title) for INTEGRITY JANITORIAL, LLC. Ss First Extension to Agreement for Services Integrity Janitorial, LLC 81 of 162 Notary Public of Alaska My Commission Expires: 111 Page 2 of 2 THIS PAGE IS INTENTIONALLY LEFT BLANK 82 of 162 "'V'llaye with a Past, C# with a Future Kenai Police Department N 107 S. Willow St., Kenai, Alaska 99611 "If Telephone: 907 - 283 -7879 / FAX: 907 - 283 -2267 19, Elie cav of TO: Rick Koch - City Manager FROM: Gus Sandahl — Police Chief DATE: June 12, 2013 SUBJECT: FY14 Janitorial Services — Kenai Police Department On June 29, 2012, after a competitive bidding process, the City of Kenai entered into an Agreement for Services with Integrity Janitorial, LLC for janitorial services at the Kenai Police Department. Paragraph 2 of the Agreement(s) allows for two successive one -year terms by mutual written consent of the parties. On May 14, 2013, Integrity Janitorial agreed to extend the contract for one year. Integrity Janitorial has agreed to provide FY14 janitorial services at the same cost. The City Attorney has reviewed the attached First Extension to Agreement for Services for the Kenai Police Department and has no objection as to form. If Council approves the extension, it may be executed by the parties. 83 of 162 FIRST EXTENSION TO AGREEMENT FOR SERVICES KENAI POLICE DEPARTMENT JANITORIAL SERVICES THIS Extension to Agreement for Services is made as of the day of 2013, by and between the CITY OF KENAI (Owner), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 94611, and INTEGRITY JANITORIAL. LLC (Contractor); whose address is PO Box 3283, Kenai, Alaska 99611. WITNESSETH WHEREAS, on June 29, 2012, the City of Kenai entered into a contract with Integrity Janitorial, LLC for janitorial and maintenance services for the Kenai Police Department (Facility); and, WHEREAS, paragraph 2 of the Agreement allows for two (2) successive one -year terms by mutual written consent of Owner and Contractor, and, WHEREAS, on May 14, 2013, Integrity Janitorial LLC agreed to extend the Contract for one (1) year, and, V�gIEREAS, the City is satisfied with the performance of Integrity Janitorial LLC's services and is agreeable to a contract extension for a period of one (1) year. NOW THEREFORE, the parties agree as follows: 1. That pursuant to Paragraph 2 of the Contract, the tern of the Agreement for Services is extended from June 30, 2013 to June 30, 2014. 2. Except as expressly modified or stated herein, all other terms and conditions of the Contract (as amended) remain in full force and effect. CITY OF KENAI By: Rick R. Koch Its: City Manager INTEGRITY JANITORIAL LLC B)' 7 z ,_, Vii. 6� Name: 'Tl c, r o s It o9 yL, Tv Its: "r First Amendment to Agreement for Sen ices Integrit} Janitorial, LLC 84 of 162 Page 1 of 2 Approved as orm: Scott Bloom City Attorney State of Alaska ) ) ss Third Judicial District ) The foregoing instrument was acknowledged before me this _ day of 2013 by Rick R. Koch, City Manager for the City of Kenai. Notary public of Alaska My Commission Expires: State of Alaska } ss Third Judicial District ) The fore o g instrumea was acknowledged before me th' / day of �A� , 2013, by 4�mt - - (Name), 4t 7 (Title) for First Amendment to Agreement for Services Integrity Janitorial, LLC 85 of 162 Notary Public of Alaska My Commission Expires: Page 2 of 2 THIS PAGE IS INTENTIONALLY LEFT BLANK 86 of 162 "Villaye with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907- 283 -7535 / FAX: 907 - 283 -3014 I'Illi 1992 MEMO: TO: Rick Koch �U FROM: Mary Jo Joiner DATE: 11 June 2013 SUBJECT: Janitorial Extension and Amendment On June 22, 2012, after a competitive bidding process, the City of Kenai entered into an Agreement for Services with Carreon Eduviges D /B /A Cleanway Janitorial Services for janitorial and maintenance services for the Kenai Community Library. Paragraph 2 of the Agreement(s) allows for two successive one -year terms by mutual written consent of the parties. On May 8, 2013, Carreon Eduviges D /B /A Cleanway Janitorial Services requested to extend the contract for one year at the higher rate per month for the library. Over the course of the last year they found that cleaning required approximately 1 hour per day more than they had anticipated. The City Manager met with Mr. Eduviges and approved an increase to $3,900 /month from $3,187 /month. This comes to a total annual cost of $47,800 which includes $1,000 for call out service. The City Attorney has reviewed the attached First Extension to Agreement for Services for the Library and has no objection as to form. If Council approves the extensions, they may be executed by the parties. 87 of 162 FIRST EXTENSION AND AMENDMENT TO AGREEMENT FOR SERVICES KENAI COMMUNITY LIBRARY JANITORIAL SERVICES THIS Extension and Amendment to Agreement for Services is made as of the day of 2013, by and between the CITY OF KENAI (Owner), a municipal corporation whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611, and CARREON EDUVIGES DB /A CLEANWAY JANITORIAL SERVICES (Contractor), whose address is 1105 Colonial Drive, Kenai, Alaska 99611. WITNESSETH WHEREAS, on July 1, 2012, the City of Kenai entered into a contract with CARREON EDUVIGES DB /A CLEANWAY JANITORIAL SERVICES for janitorial and maintenance services for Kenai Community Library (Facility); and, WHEREAS, paragraph 2 of the Agreement allows for two (2) successive one -year extensions by mutual written consent of Owner and Contractor; and, WHEREAS, on May 8, 2013, CARREON EDUVIGES D /B /A CLEANWAY JANITORIAL SERVICES requested to extend the Contact for one (1) year; and, WHEREAS, the Owner is satisfied with the performance of CARREON EDUVIGES DB /A CLEANWAY JANITORIAL SERVICES and is agreeable to a contract extension for a period of one (1) year; and, WHEREAS, Contractor has requested an increase in compensation for the extended term due to the extent of the services provided, and the Owner agrees that additional compensation is warranted, NOW THEREFORE, the parties agree as follows: That pursuant to Paragraph 2 of the Contract, the term of the Agreement for Services is extended from June 30, 2013 to June 30, 2014. 2. That pursuant to Paragraph 19 of the Contract, Paragraph 4 is amended to reflect a rate of $3.900.00 per month. 3. Except as expressly modified or stated herein, all other terms and conditions of the Contract remain in full force and effect. First Extension and Amendment to Agreement for Services Carreon Eduviges D /B /A Cleanway Janitorial Services Page I of 2 88 of 162 CITY OF KENAI By Rick R. Koch Its: City Manager STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) CARREON EDUVIGES DB /A CLEANWAY JANITORIAL SERVICES By: _ Name: Its: The foregoing instrument was acknowledged before me this day of , 2013, by Rick Koch, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public in and for Alaska My Commission expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _ day of , 2013, by (Name), (Title) for CARREON EDUVIGES DB /A CLEANWAY JANITORIAL SERVICES. Notary Public in ,and for Alaska My Commission expires: Approved as to form: Scott M. Bloom City Attorney First Extension and Amendment to Agreement for Services Carreon Eduviges DB /A Cleanway Janitorial Services 89 of 162 Page 2 of 2 THIS PAGE IS INTENTIONALLY LEFT BLANK 90 of 162 "S&VaAWd1&Qr aaP'rKema, Pe;vuvljula:' L2T305 N, WILLOW ST. SUnE200 10BM ALAWA 99&11 unicipal Airport TELEPHONE 9074 283.7951 FAX 9072833737 Memo To: Rick Koch -City Manager From: Mary L. Bondurant - Airport Manager Date: June 11, 2013 Subject: First extension janitorial services, Kenai airport On June 29, 2012 the City of Kenai entered into an Agreement for Services with Integrity Janitorial, LLC for janitorial services at the Airport. The Agreement allows for two successive one -year terms by mutual written consent of the parties. Integrity Janitorial, LLC has requested to extend for one -year under the same terms and conditions. The Airport recommends approval of the attached First Extension to Agreement for Services. If Council approves the extension, it may be executed by the parties. Please contact me if you have any questions. Attachment www.ci. ken ai. ak. us. 91 of 162 FIRST EXTENSION TO AGREEMENT FOR SERVICES AIRPORT JANITORIAL SERVICES THIS Extension to Agreement for Services is made as of the day of , 2013, by and between the KENAI MUNICIPAL AIRPORT (Owner), whose address is 305 N. Willow Street, Kenai, Alaska 99611, and INTEGRITY JANITORIAL, LLC (Contractor), whose address is PO Box 3283, Kenai, Alaska 99611. WITNESSETH WHEREAS, on June 29, 2012, the Kenai Municipal Airport entered into a contract with Integrity Janitorial, LLC for janitorial and maintenance services for Kenai Municipal Airport (Facility); and, WHEREAS, paragraph 2 of the Agreement allows for two (2) successive one -year extensions by mutual written consent of Owner and Contractor; and, WHEREAS, on May 17, 2013, Integrity Janitorial LLC requested to extend the Contact for one (1) year; and, WHEREAS, the Owner is satisfied with the performance of Integrity Janitorial LLC's services and is agreeable to a contract extension for a period of one (1) year. NOW THEREFORE, the parties agree as follows: 1. That pursuant to Paragraph 2 of the Contract, the term of the Agreement for Services is extended from June 30, 2013 to June 30, 2014. 2. Except as expressly modified or stated herein, all other terms and conditions of the Contract remain in full force and effect. CITY OF KENAII INTEGRITY JANITORIAL, LLC C Rick R. Koch Its: City Manager By: _ Name: Its: First Extension to Agreement for Services Integrity Janitorial, LLC Page 1 of 2 92 of 162 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of , 2013, by Rick Koch, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was , 2013, by (Title) for INTEGRITY JANITORIAL, LLC. Approved as to.form: Scott M. Bloom City Attorney First Extension to Agreement for Services Integrity Janitorial, LLC Notary Public in and for Alaska My Commission expires: acknowledged before me this (Name), Notary Public in and for Alaska My Commission expires: 93 of 162 day of Page 2 of 2 THIS PAGE IS INTENTIONALLY LEFT BLANK 94 of 162 M "Villa ye with a Past, C# with a Future"' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 / FAX: (907) 283 -3014 www.ci.kenai.ak.us MEMO* TO: Rick Koch, City Manager l FROM: Christine Cunningham, Assistant to City Manager i'`'"' DATE: June 3, 2013 Kenai Fred Ylneka W t'If�f 2011 SUBJECT: Consent to Sublease and Sale Agreement between the City of Kenai, MITAK, LLC and Pink Coyote Limited for Lot 1 and Lot 1 -A Aleyeska Subdivision MITAK, LLC has requested the City's approval of the attached Sublease and Sale Agreement for the above referenced properties. MITAK, LLC has leased the referenced Airport properties since 2005 for use "In Accordance with Zoning Code" and "Parking Area in Back of Motel." The original leases were entered into in 1968 for a term of 55 years and expire in 2022. The Katmai Motel operated on the premises until the properties were sold in 2005, and Main Street Tap & Grill currently operates a motel and restaurant. Paragraph 4 of the Lease for both parcels requires the City's written consent to sublet or assign the Lease. The referenced Consent to Sublease is not an Assignment of the Lease. Should the Lessee wish to Assign its Lease to the Sublessee, a separate Assignment of Lease would require the City Council's consent. MITAK, LLC is in compliance with both the City and the Borough and the City Attorney has reviewed the attached documents as to form. If the Kenai City Council approves the attached Consent to Sublease and Sale Agreement can be executed by the parties. cc: Lindsay Olsen, MITAK, LLC Attachments 95 of 162 Consent to Sublease between MITAK, LLC and Pink Coyote Limited TR. A -2 / 7 \ / �0 8 o 9 4 Mq�ti s 1 S T�FFT 2 TR. D RFp�sT `0010 3 Ro KENAI SPUR- 2 LEASE P OPEI 1 of o zo TR. c F 14 h R 15 Q $ A TS AL 2 132) no �o Subj 1 2 �' s (3) s 3 co n co 4 � � ne m 5 W a J Nil G,P O �L 4 �'P FRONTAGE RD 96 of 162 LPG e ^" UNSUBDIVIDED REMAINDER NO. 5 TR. 1 -B *3 38 , CITY OF KENAI CONSENT TO SUBLEASE The Sublease Agreement (Sublease and Sale Agreement No. 172164) for a portion of the premises under that certain Original Lease recorded on at Book 31, Pages 20 — 24 on April 29, 1968, in the Kenai Recording District, Third Judicial District, State of Alaska between MITAK, LLC (Lessee) whose address is 5200 West 94th, Prairie Village, KS 66207 and Pink Coyote Limited,(Sublessee) whose address is , covering the following- described property: Lot 1, Aleyeska Subdivision Part 3 according to Plat No. 1531 and Lot 1 -A, Aleyeska Subdivision , Part 3, according to Plat K -1531 Is hereby ACKNOWLEDGED AND CONSENTED TO, subject to the same terms and conditions as contained in the original lease described above, and further subject to the condition that any sale or further transfer of any interest in the above described leases is specifically subject to further and separate approval by the City of Kenai. (This consent only applies to the sublease and not sale of the above decribed property.) This Consent is given by the City of Kenai without waiving any right or action, or releasing the Assignor from any liability or responsibility under the aforementioned Lease, and does not relieve the Assignee from the condition requiring the City's approval for any subsequent sublease or assignment. Dated this day of 2013. Rick R. Koch City Manager 97 of 162 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2013, RICK R. KOCH, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: 98 of 162 172164 Sublease and Sale Agreement between MITAK, LLC (Landlord) ff Me Pink Coyote Limited (Tenant) 99 of 162 Table of Contents 1. Special Definitions and Provisions A. Special Definitions ................................................................. ............................... 1 B. General Definitions ................................................................ ............................... 3 2. Grant ............................................................................................... ..............................3 3. Sale of Liquor Inventory ............................................................... ............................... 3 4. Possession ....................................................................................... ..............................3 Sublease and Sale Agreement -i- 100 of 162 14591 -001:102512 A. In General ............................................................................... ............................... 3 B. Initial Personal Property Report ............................................. ............................... 4 C. "AS IS, WITH ALL FAULT" Condition ............................... ............................... 4 5. Rent ............................................................................................... ............................... A. Initial Free Rent ...................................................................... ............................... 4 4 B. Annual Percentage Rent ......................................................... ............................... 4 C. Payment of Rent ..................................................................... 6 ............................... D. Additional Rent — Prune Lease Rent ...................................... ............................... 6 E. Additional Rent — Taxes ......................................................... ............................... 7 F. Additional Rent — Liquor License ........................................... ............................... 8 G. Rent .......................................................................................... ..............................8 6. Prime Lease ................................................................................... ............................... 9 7. Use; Compliance with Laws ......................................................... ............................... 9 A. Use and Restrictions on Use ................................................... ............................... 9 B. Compliance with Laws ......................................................... ............................... 10 8. Utilities and Services ................................................................... ............................... 10 9. Repairs and Alterations ............................................................... ............................... 10 A. Landlord's Repair Obligations ............................................. ............................... 10 B. Tenant's Repair Obligations ................................................. ............................... 10 C. Repairs .................................................................................... .............................11 D. Tenant Alterations ................................................................ ............................... 12 10. Signs ............................................................................................ ............................... 12 11. Entry by Landlord ....................................................................... ............................... 12 12. Representations ........................................................................... ............................... 13 A. By Tenant ............................................................................. ............................... 13 B. By Landlord .......................................................................... ............................... 13 13. Quiet Enjoyment .................... ............................... 14. Liens and Creditor Cl aims ........................................................... ............................... 14 A. Liens ..................................................................................... ............................... 14 B. Creditor Claims .................................................................... ............................... 14 15. Indemnity and Waiver of Claims ................................................ ............................... 14 A. General Indemnity by Tenant ............................................... ............................... 14 B. Hazardous Substances .......................................................... ............................... 15 C. General Indemnity by Landlord ........................................... ............................... 15 D. Waiver of Claims .................................................................. ............................... 16 Sublease and Sale Agreement -i- 100 of 162 14591 -001:102512 16. Insurance ..................................................................................... ............................... 16 A. In General ............................................................................. ............................... 16 B. Changes in Insurance Limits ................................................ ............................... 17 C. Increases in Insurance Rates ................................................. ............................... 17 D. Waiver of Subrogation ......................................................... ............................... 17 17. Casualty Damage ......................................................................... ............................... 18 A. Damage to Premises and Reconstruction ............................. ............................... 18 B. Termination of Agreement ..................................................... .............................18 18. Condemnation ............................................................................. ............................... 19 19. Anti- Terrorism Representation and Warranty ............................ ............................... 19 20. Assignment and Subletting .......................................................... ............................... 19 A. In General, by Tenant ........................................................... ............................... 19 B. In General, by Landlord ....................................................... ............................... 20 21. Satisfaction of Conditions ........................................................... ............................... 20 A. ABC Board Approval ........................................................... ............................... 20 B. City of Kenai Approval ........................................................ ............................... 20 C. Communications regarding Conditions to Commencement Date ....................... 20 D. Termination for Failure of Conditions ................................. ............................... 20 22. Guarantee by Tenant Principals .................................................. ............................... 20 23. Option to Purchase ...................................................................... ............................... 21 A. Grant of Option to Purchase ................................................. ............................... 21 B. Election to Exercise Option .................................................. ............................... 21 C. Purchase Price ...................................................................... ............................... 21 D. Closing of Option ................................................................... .............................21 E. Payment of Purchase Price and Accrued Rent ..................... ............................... 22 F. Effect of Agreement ............................................................. ............................... 22 G. Conveyance of Interest ......................................................... ............................... 22 H. No Assignment ..................................................................... ............................... 23 24. Events of Defaul t ......................................................................... ............................... 23 25. Remedies ..................................................................................... ............................... 24 A. Landlord Remedies ............................................................... ............................... 24 B. Landlord's Right to Cure ...................................................... ............................... 24 C. Miscellaneous Provisions Respecting Remedies ................. ............................... 25 26. No Waiver ................................................................................... ............................... 25 27. Surrender of Premises and Return of Liquor License ................. ............................... 25 A. Condition ................................................................................ .............................25 B. Liquor License ...................................................................... ............................... 25 C. Abandoned Property ............................................................. ............................... 26 28. Holding Over ............................................................................... ............................... 26 29. Landlord Mortgages; Estoppel Certificate .................................. ............................... 27 A. Mortgages ............................................................................. ............................... 27 B. Protections of Tenant ............................................................ ............................... 27 C. Rights of Mortgagees To Cure Defaults .............................. ............................... 27 -ii- Sublease and Sale Agreement 14591 - 001:102512 101 of 162 D. Estoppel Certificates ............................................................. ............................... 27 30. Notice .......................................................................................... ............................... 28 31. Miscell aneous ................................................................................ .............................28 A. Interpretation, Generally ...................................................... ............................... 28 B. Interest .................................................................................. ............................... 28 C. Attorneys' Fees ..................................................................... ............................... 29 D. Recordation ............................................................................. .............................29 E. Governing Law and Venue ................................................... ............................... 29 F. Waiver of Trial by Jury ........................................................ ............................... 29 G. Time of Essence ................................................................... ............................... 29 H. Further Assurances ................................................................. .............................29 I. Force Majeure ....................................................................... ............................... 29 J. Captions, References ............................................................ ............................... 30 K. Relationship of Parties .......................................................... ............................... 30 L. Negotiations ............................................................................ .............................30 M. Expiration or Termination of Term ...................................... ............................... 30 N. Signatures of Both Parties Required .................................... ............................... 30 O. Amendment .......................................................................... ............................... 31 P. Final, Complete Agreement ................................................. ............................... 31 32. Index of Defined Terms .............................................................. ............................... 31 Sublease and Sale Agreement - iii - 102 of 162 14591 -001:102512 LEASE AND SALE AGREEMENT This Sublease and Sale Agreement (the "Agreement ") is made and entered into by and between MITAK, LLC, a Kansas limited liability company ( "Landlord ") and Pink Coyote Limited, an Alaska corporation ( "Tenant "). 1. Special Definitions and Provisions Unless the context clearly indicates otherwise, the following terms shall have the following meanings (and derivatives of such terms shall have similar derivative meanings). Other definitions applicable to this Agreement are set forth in other sections of this Agreement. All definitions are indexed in Section 32. A. Special Definitions "Commencement Date" means the day after the following conditions have been satisfied: • The Alaska Alcohol Beverage Control Board has approved transfer of the Liquor License to Tenant; • The City of Kenai has approved sublease by Landlord to Tenant under the Prime Lease, in form and content acceptable to Landlord and Tenant; and • Tenant has provided to Landlord adequate proof of insurance in place as required by Section 16. • Tenant has provided to Landlord guarantees by Tenant's principals as required by Section 22. "Liquor Inventory" means all alcohol on the Premises as of the Commencement Date, the sale of which is subject to regulation by the Alaska Alcohol Beverage Control Board. "Liquor License" means Landlord's Beverage Dispensary- Tourism license #4555 issued by the Alaska Alcohol Beverage Control Board. After the Liquor License has been transferred to Tenant, it means the liquor license transferred to and issued to Tenant. Sublease and Sale Agreement 103 of 162 14591-001:102512 "Notice Addresses" means: To Tenant: Pink Coyote Limited 230 N. Willow Street Kenai, Alaska 99611 Fax: e -mail: To Landlord: MITAK, LLC 5200 W. 94th Terrace Prairie Village, KS 66207 Fax: 913-648-2117 e -mail: lolsen @mitckc.com "Permitted Use" means any legal use related to operating as a hotel, motel, restaurant and bar. "Personal Property" means the furnishings (such as beds, drapes, desks, televisions, etc.), equipment (such as stoves and ovens, kitchen equipment, office equipment, telephones, water heaters, shovels, etc.) and inventory and supplies (such as deicing chemicals, laundry detergent, guest bathroom supplies, etc.) located at the Premises and used in connection with operation of the Premises as a hotel, restaurant and bar. "Premises" means all of Landlord's leasehold interest under the Prime Lease in the hotel, restaurant and bar and parking facilities on the real property legally described as Lots 1 and 1 -A, Aleyeska Subdivision, Part 3, according to Plat K -1531, Kenai Recording District, Alaska, with an address of 10800 Kenai Spur Highway, Kenai, Alaska (the "Real Property "), and other improvements currently located on the Real Property, together with any ownership interest Landlord may have in such improvements. "Prime Lease" means, collectively, that Lease between the City of Kenai and Del Alsop dated May 5, 1967, and recorded at book 31, page 20, Kenai Recording District, respecting Lot 1 of the Real Property, and that Lease between the City of Kenai and Calvin Martin and Marian J. Martin dated March 1, 1968, and recorded at book 31, page 27, Kenai Recording District, respecting Lot 1 -A of the Real Property; the leasehold interests of which have been assigned to various lessees and are presently held by Landlord. "Term" means a period commencing on the Commencement Date and ending the following June 30 (the "Termination Date "). Unless Tenant is in material default as of the Termination Date, the Term and Termination Date shall automatically extend each year -2- Sublease and Sale Agreement 104 of 162 14591 -001:102512 for an additional one -year tern ending on June 30 unless Tenant gives Landlord Notice at least 30 days before the extended term otherwise would commence. Notwithstanding the preceding sentences, unless the Term is terminated earlier, the Term shall terminate June 30, 2022. B. General Definitions An "Affiliate" under the terms of this lease is either a Director of the Tenant corporation or a person specifically authorized by the Board of Directors to act on behalf of the corporation. "Business Day(s)" are Monday through Friday of each week, exclusive of New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day ( "Holidays "). "Law(s)" means all applicable statutes, codes, ordinances, orders, rules and regulations of any federal, state, municipal or governmental entity. 2. Grant Landlord subleases the Premises and Personal Property to Tenant and Tenant subleases the Premises and Personal Property from Landlord for the Term. In connection with Tenant's use of the Premises, Tenant may use the Personal Property. 3. Sale of Liquor Inventory As of the Commencement Date, Landlord shall sell to Tenant and Tenant shall purchase from Landlord all Liquor Inventory then existing, if any. Within 10 days after the Commencement Date Tenant shall provide an inventory of all Liquor Inventory, and within 30 days after the Commencement Date Tenant shall pay Landlord the value of the Liquor Inventory. Liquor Inventory shall be valued based on the delivered wholesale price by Tenant's alcohol distributor as of or within 30 days after the Commencement Date. Partial containers shall be valued at one -third the value of an unopened bottle without regard to actual volume present. There is no discount for obsolete or unusable Liquor Inventory. 4. Possession A. In General Tenant shall take possession of the Premises on the Commencement Date. -3- Sublease and Sale Agreement 105 of 162 14591 {001 102512 B. Initial Personal Property Report Attached as Exhibit A is a statement of all Personal Property at the Premises as of the Commencement Date. C. f°AS IS, WITH ALL FAULT" Condition By taking possession of the Premises, Tenant accepts the Premises and Personal Property in their "AS IS, WITH ALL FAULT" condition and agrees that the Premises and Personal Property are in good order and satisfactory condition. Except as specifically set forth in this Agreement, there are no representations or warranties by Landlord regarding the condition of the Premises and Personal Property. Landlord specifically disclaims any warranty or representation, either express or implied, respecting the Premises or Personal Property, including any warranty of MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE or ABSENCE OF INFRINGEMENT. There is no warranty that the Personal Property will be fit for a particular purpose. 5. Rent A. Initial Free Rent Tenant has no obligation to pay Landlord rent for the period from the Commencement Date until the previous repair expenditures made by the Tenant have been recouped (such repairs listed and agreed to by the parties in a separate document entitled "Previous Repair Expenditures" which is hereby incorporated by reference), but Tenant shall pay the additional rent in accordance with Sections 5.1), 5.E and 5T and the other amounts provided by this Agreement. B. Annual Percentage Rent (1) Percentage Rent. By October 31 of each calendar year, Tenant shall pay as "Percentage Rent' an amount equal to 3% of the Gross Revenues resulting from business conducted in, on, or from the Premises during the preceding October 1- September 30 period (the "Rent Year "). If the Term ends other than on October 1, Percentage Rent shall be payable within 30 days after the end of the Tenn for the period from the preceding October 1 to the last day of the Tenn, which shall be the "Rent Year" for the final period. (2) Affiliates. Tenant may not permit any Affiliate to conduct any business in, on, or from the Premises unless Tenant notifies Landlord and all revenues of the Affiliate resulting from business conducted in, on, or from the Premises by the Affiliate are included as Gross Revenues of Tenant. (3) Monthly Reporting. Within 30 days after the end of each month, Tenant shall deliver to Landlord a statement certified by Tenant satisfactory to Landlord -4- Sublease and Sale Agreement 14591 -001:102512 106 of 162 setting forth the Gross Revenues resulting from business conducted in, on, or from the Premises during the previous month. Tenant promptly shall provide such additional information as Landlord may reasonably request that may be necessary to evaluate Tenant's report. (4) Annual Reporting. At the time the Percentage Rent is paid or is due, Tenant shall deliver to Landlord a statement certified by Tenant satisfactory to Landlord setting forth the Gross Revenues resulting from business conducted in, on, or from the Premises during the previous Rent Year, certified by an independent certified public accountant satisfactory to Landlord. Tenant promptly shall provide such additional information as Landlord may reasonably request that may be necessary to evaluate Tenant's report. (5) Gross Revenues. "Gross Revenues" shall include as of the date of the transaction (i) the sale price of all merchandise sold, including gift and merchandise certificates, (ii) charges for all services performed and business conducted and all other receipts from the business performed by Tenant or any other person or entity in, upon or from any part of the Premises, whether for cash or credit; (iii) room rental; (iv) banquet, food and beverage sales; (v) mail or telephone orders received or filled at the Premises; (vi) deposits not refunded to a purchaser; (v) orders taken, although such orders may be filled elsewhere; and (vii) all sales upon installment, credit, or layaway which shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payment. The following amounts shall be deducted from Gross Revenues: (i) refunds and allowances to customers respecting merchandise sold or services performed in, upon or from any part of the Premises; (ii) the amount paid by Tenant to any government for any sales or excise tax imposed in any specific amount or determined by the amount of retail sales or charges for services made upon the Premises, provided that no deduction shall be allowed on account of income taxes, gross receipts taxes, or other similar taxes; (iii) any returns to shippers and manufacturers; and (iv) the value of any exchange or transfer of merchandise between stores of Tenant where such exchange or transfer is made solely for the convenient operation of Tenant's business and not for the purpose of consummating a sale made in, upon, or from the Premises. No deduction shall be allowed for any uncollected or uncollectible credit account. (6) Books and Records: Audit. Tenant shall record all revenues in accordance with generally accepted accounting practices and retain copies of all sales tax reports, original source documents related to cash receipts and charges or credit transactions, such as register tapes and customer receipts, and bank statements, which shall be made available to Landlord upon demand. Tenant agrees to preserve its records for at least three (3) years from the end of each Rent Year. Landlord, its auditor, or other designated representative shall have the right to audit all pertinent books and records of Tenant for the purpose of verifying Tenant's Gross Revenues. Landlord may upon 10 -5- Sublease and Sale Agreement 107 of 162 14591.001:102512 days' prior written notice to Tenant to conduct an audit of Tenant's Gross Revenues. If Tenant is delinquent in famishing to Landlord its report of Gross Revenues or any information requested by Landlord, then all expenses of the audit shall be borne by Tenant and payable upon demand. In all other circumstances, all expenses of the audit by Landlord shall be home by Landlord unless the audit establishes that the Percentage Rent actually paid by Tenant for the Rent Year was less than 95% of the Percentage Rent that should have been paid with respect to the Gross Revenues for the Rent Year, in which case all expenses of the audit shall be borne by Tenant and payable upon demand. If it is determined as a result of the audit that there has been a deficiency in the payment of Percentage Rent, then such deficiency shall become immediately due and payable with interest from the date the Percentage Rent should have been paid. Tenant shall require any subtenants, licensees, and concessionaires to furnish similar statements of Gross Revenues and permit similar audits by Landlord, which shall be included in Tenant's Gross Revenues for purposes of calculating Percentage Rent. The acceptance by Landlord of payments of annual Percentage Rent shall be without prejudice to Landlord's right to examine and audit Tenant's books and records of its Gross Revenues and inventories of merchandise at the Premises in order to verify the amount of Gross Revenues made in or from the Premises. C. Payment of Rent Tenant shall pay Landlord the Percentage Rent without any setoff or deduction. Tenant shall pay and be liable for all rental, sales and use taxes (but excluding income taxes), if any, imposed upon or measured by Percentage Rent under applicable Law. Percentage Rent shall be due and payable without notice or demand. All payments of Percentage Rent shall be by good and sufficient check or by other means (such as automatic debit or electronic transfer) acceptable to Landlord. If Tenant fails to pay any installment of Percentage Rent when due, Tenant shall pay Landlord an administration fee equal to 5% of the past due Percentage Rent. Landlord's acceptance of less than the correct amount of Percentage Rent shall not be considered a waiver of the correct amount of Percentage Rent due. No endorsement or statement on a check or letter accompanying a check or payment shall be considered an accord and satisfaction, and either party may accept the check or payment without prejudice to that party's right to recover the balance or pursue other available remedies. Tenant's covenant to pay Rent is independent of every other covenant in this Agreement. D. Additional Rent — Prime Lease Rent Tenant shall pay as additional rent all rent payable by Landlord under the Prime Lease. The rent shall be paid as and when it is due under the Prime Lease. If requested by Landlord, Tenant shall furnish to Landlord within 10 days satisfactory proof evidencing the payment. -6- Sublease and Sale Agreement 14591 - 001:102512 e :. -M E. Additional Rent — Taxes (1) Payment of Tenant Taxes. Tenant shall pay as additional rent all taxes based on Tenant's business; all taxes based on any property of Tenant, real or personal, which shall at any time be in the Premises, including Tenant's installations, additions, improvements, fixtures, and personal property; and pay or reimburse Landlord for, at the election of Landlord, any gross receipts, rental, sales or use tax, transaction privilege tax or other excise tax or assessment now or hereafter levied or assessed upon or against Tenant's or Landlord's interest in this Agreement or the rents. (2) Payment of Real Estate Taxes (a) Tenant shall pay as additional rent, before any fine, penalty, interest or cost is added for late or nonpayment, all real estate taxes and other ad valorem taxes on tangible property assessments, water rates and charges and other governmental charges, general and special, ordinary and extraordinary, unforeseen as well as foreseen, of any kind and nature whatsoever, including but not limited to assessments for public improvements or benefits (all of which taxes, and contributions in lieu of taxes, assessments, water rates or charges, levies and other governmental charges levied or assessed against Landlord, Tenant, or the Land or Premises are referred to as "Real Estate Taxes "), which are assessed, levied, imposed or become a lien upon the Premises or become payable during the Tenn. (b) If by law Real Estate Taxes is payable, or may at the option of the taxpayer be paid, in installments (whether or not interest shall accrue on the unpaid balance of such Real Estate Taxes), Tenant may pay the same (and any accrued interest on the unpaid balance of such Real Estate Taxes) in the amount of such installments as they become due and before any fine, penalty, interest or cost is added for the late or nonpayment of any such installment and interest. Any Real Estate Taxes relating to a fiscal period of the taxing authority, a part of which period is included within the Term of this Agreement and a part of which is included in a period of time after the termination of the Term of this Agreement, shall (whether or not such Real Estate Taxes shall be assessed, levied, imposed or become a lien upon the Premises or shall become payable during the Term of this Agreement) be adjusted as between Landlord and Tenant as of the termination of the Term, so that Landlord shall pay that proportion of such Real Estate Taxes attributable to the fiscal period after the termination of the Term and Tenant shall pay that proportion of such Real Estate Taxes attributable to the fiscal period before the termination of the Term. (3) Tax on Rents. If at any time during the Term a tax or excise on rents, income or other tax however described (herein called "Rent Tax ") is levied or assessed against Landlord on account of the rents or the interest of Landlord under this Agreement, Tenant shall reimburse Landlord. -7- Sublease and Sale Agreement 14591 -001:102512 109 of 162 (4) Proof of Payment. Tenant shall furnish to Landlord within 30 days after the date whenever any Real Estate Taxes is payable by Tenant, official receipts of the appropriate taxing authority or other proof satisfactory to Landlord evidencing the payment. If Landlord paid any Real Estate Taxes it shall promptly provide Tenant with a copy of each receipt. (5) Right to Contest Real Estate Taxes. Tenant shall have the right to contest the amount or validity of any Real Estate Taxes upon the Premises or any part thereof by appropriate legal proceedings, but this shall not be construed in any way as modifying Tenant's covenant to pay such Real Estate Taxes at the time and in the manner as in this Article provided, unless (a) the legal proceedings operate to prevent the collection of the Real Estate Taxes so contested and the sale of the Premises or any part to satisfy the same, and (b) Tenant (unless said Real Estate Taxes have been paid in full under protest) deposits with Landlord an amount, with such subsequent additions as may be necessary, sufficient to pay such Real Estate Taxes, together with all estimated interest and penalties, and all charges that may be assessed in any legal proceedings against or may become a charge on the Premises or any part thereof. Landlord shall cooperate reasonably with Tenant in any such contest but without expense to Landlord. If Tenant shall not be in default under this Agreement, Tenant shall be entitled to any refund of any Real Estate Taxes and penalties or interest which have been paid by or on behalf of Tenant and which relate to the Premises or which have been paid by Landlord and for which Landlord has been fully reimbursed. (6) Tax Bills Prima Facie Evidence. The certificate or bill issued by the appropriate official designated by law to make or issue the same or to receive payment of any Real Estate Taxes indicating the nonpayment of any Real Estate Taxes or any forfeiture, tax sale or tax foreclosure, shall be prima facie evidence that the Real Estate Taxes is due and unpaid at the time of the issuance of such certificate or bill or that the property involved has been forfeited or sold for taxes as the case may be. F. Additional Rent — Liquor License Upon execution of this Agreement, Tenant shall pay Landlord $5,450 to reimburse Landlord for the cost incurred by Landlord to renew the Liquor License. Not later November 30 each year, Tenant shall provide to Landlord adequate evidence that Tenant has filed the necessary application and paid the appropriate fees to renew the Liquor License for the following calendar year. G. Rent For purposes of this Agreement, Percentage Rent, Additional Rent and any other sums due, including, but not limited to, late charges and interest, from Tenant to Landlord under the terms of this Agreement, shall be called "Rent." -8- Sublease and Sale Agreement 110 of 162 145914001:102512 6. Prime Lease This Agreement is and shall remain in all respects subject and subordinate to the Prime Lease. Tenant acknowledges that it has received a copy of the Prime Lease. Notwithstanding anything to the contrary in this Agreement, Tenant shall occupy and use the Premises in accordance with the terms of the Prime Lease and shall not do or suffer to be done any act, or omit to do any act, which might result in a violation of or default under the Prime Lease or render Landlord liable for any cost or expense under the Prime Lease. Except as may be provided in this Agreement to the contrary, the terms and conditions of the Prime Lease are incorporated into this Agreement. If this Agreement contains a more restrictive provision than does the Prime Lease, then the more restrictive provision of this Agreement shall control as between Landlord and Tenant. The rights of Landlord against Tenant under this Agreement shall correspond, insofar as may be applicable, to the rights of the City of Kenai against Landlord under the Prime Lease. Notwithstanding this section, Landlord shall have exclusive authority to communicate with the City of Kenai and to negotiate and agree to rental rates respecting the Prime Lease. Tenant, within 5 days after receipt, shall provide Landlord with copies of any notices it receives regarding violation or alleged violation of the Prime Lease. Tenant's insurance to be maintained under Section 16 also shall name the City of Kenai as an additional insured if required by the Prime Lease. Tenant hereby agrees timely to perform and be bound by all of the obligations of Landlord under the Prime Lease arising or occurring during the Term, except as modified by this Agreement, and to fully and faithfully observe, perform and comply with each and every term, covenant, and condition of the Prime Lease to be observed, performed and complied with by Landlord arising or occurring during the Term. Provided that Tenant duly performs its obligations under this Agreement, Landlord shall timely apply for extensions under the Prime Lease to cover any extension of this Agreement. This Agreement shall terminate automatically if the Prime Lease terminates. 7. Use; Compliance with Laws A. Use and Restrictions on Use The Premises and Personal Property shall be used only for the Permitted Use and for no other use whatsoever. Tenant shall not use or permit the use of the Premises or Personal Property for any purpose that (a) is illegal or dangerous to persons or property, (b) creates a nuisance or interferes with the operation or reputation of the Premises, or (c) invalidates any policies of insurance carried on the Premises or increases the rate of insurance on the Premises or on the Premises. Tenant shall not in any manner deface or injure the Premises or any part or overload the floors of the Premises. -9- Sublease and Sale Agreement 111 of 162 14591 -001:102512 B. Compliance with Laws Tenant shall at its expense comply with all Laws, including the Americans with Disabilities Act, regarding the operation of Tenant's business and the use, condition, configuration and occupancy of the Premises. Tenant, within 10 days after receipt, shall provide Landlord with copies of any notices it receives regarding violation or alleged violation of any Laws. 8. Utilities and Services Tenant shall be solely responsible for obtaining and paying for all utilities and services to and for the Premises, including without limitation electric, gas, sewer, water, refuse, janitorial, snow removal, landscaping and grounds maintenance, telephone, cable and internet. 9. Repairs and Alterations A. Landlord's Repair Obligations By the Commencement Date, Landlord shall repair the fire alarm system and the walk -in cooler and freezer so that they are in good, useable condition. Except as provided in the preceding sentence, Landlord shall have no obligation to maintain or repair the Premises or Personal Property. Landlord may, in its discretion, perform any maintenance and repairs to the Premises or Personal Property that Landlord deems appropriate. Notwithstanding the foregoing, if a repair is necessitated by conduct of Tenant outside the normal and reasonable use of the Premises or Personal Property, Tenant shall pay the reasonable cost of the repairs to Landlord within 15 days after receipt of an invoice, together with an administrative charge in an amount equal to 15% of the cost of the repairs. Except in the case of emergency repairs, Landlord shall provide Notice at least 10 days before commencing repairs describing the repairs to be undertaken, and listing the contractors and subcontractors who will be on site. B. Tenant's Repair Obligations (1) Except to the extent Landlord has specifically agreed to repair the fire alarm system and walk -in cooler and freezer in Section 9.A, Tenant shall, at its sole cost and expense, promptly perform all maintenance and repairs to the Premises and Personal Property necessary or appropriate to keep the Premises and Personal Property in compliance with the Prime Lease, in compliance with applicable Laws, in as good order, condition and repair, and in as good a condition as they existed at the Commencement Date, reasonable wear and tear excepted. Tenant also shall replace Personal Property and supplies that are consumed by Tenant in the course of operating the Premises in accordance with this Agreement. Tenant's repair obligations include, without limitation, maintenance and repairs to: (1) structural, roof, mechanical (including HVAC), electrical, -10- Sublease and Sale Agreement 14591 -001:102512 112 of 162 plumbing, fire/life safety systems, elevators (if present) and other building systems or components; (2) floor and wall covering; (3) interior partitions; (4) doors and windows, both interior and exterior, (5) electronic, telephone and data cabling and related equipment and the security system; (6) parking facilities; (7) lights, bulbs, ballasts, and starters used in the Premises; (8) landscaping and grounds; and (9) alterations performed by Tenant, including related HVAC balancing. All work shall be performed in accordance with the rules and procedures described in Section 9.1). Upon Landlord's reasonable request, Tenant shall provide or permit inspection of Tenant's records regarding such repairs. If Tenant fails to make repairs in a timely manner given the nature of the repair, mobilization and availability of contractors, insurance adjustment, and other reasonable factors, after 15 days' Notice (unless there is there is an emergency, in which case Notice shall not be required), Landlord may make the repairs, and Tenant shall pay the reasonable cost of the repairs to Landlord within 15 days after receipt of an invoice, together with an administrative charge in an amount equal to 15% of the cost of the repairs. (2) Tenant acknowledges that it is assuming significant responsibility to maintain and repair the Premises and Personal Property. Prior to the execution of this Agreement, Tenant has inspected the Premises and Personal Property to the extent Tenant considered appropriate and made its, his and her own evaluation as to the prospective need to maintain and repair the Premises and Personal Property. Landlord has not made and does not make any representation or warranty regarding the physical condition of the Premises or Personal Property. Unless otherwise noted on Exhibit A, Tenant acknowledges that all Personal Property listed on Exhibit A is present and is in good, useable condition. (3) Due to the age of the building, and notwithstanding the previous responsibilities outlined in this section, Tenant and Landlord agree that any Necessary Major Repairs will be split amongst the Landlord and Tenant. "Necessary Major Repairs" shall consist of single- instance repairs in excess of $10,000 that are necessary for the Tenant to maintain its obligations under Section 9(B) above. Should any Necessary Major Repairs be performed within 5 years of Tenant either (a) electing its option to purchase in Section 23, or (b) outright purchasing the building from the Landlord, Tenant will reimburse Landlord for Landlord's previous expenditure on those Necessary Major Repairs. C. Repairs As used in Section 9, "repair" shall include without limitation all work required (a) to preserve the condition of the Premises (e.g., periodic fire sprinkler inspections, if any), (b) subject to Section 7.13, to upgrade or maintain the Premises to comply with applicable Laws and recommendations by manufacturers or major maintenance vendors (e.g., scheduled upgrade of HVAC controls, if any), and (c) to put the Premises in at least as good physical condition and functional usefulness as it was on the Commencement Date, -11- Sublease and Sale Agreement 113 of 162 14591-0017102512 consistent with applicable codes. " Repair" includes without limitation replacement, reconstruction and capital improvement. The decision as to whether to repair, reconstruct or replace an item shall be in the discretion of the party with the obligation to repair, provided the decision is commercially reasonable. For example, if an HVAC motor burns out, Tenant may elect to replace it with a rebuilt motor having an expected service life of five years rather than replace it with a new motor having an expected service life of twenty years even if an owner - occupier of the Premises would replace it with a new motor. Tenant shall receive no compensation or credit for replacements, reconstructions or capital improvements made to the Premises and, provided that Tenant performs its responsibilities to maintain the Premises in accordance with Section 9.13, Tenant shall have no liability for depreciation or reasonable wear and tear of the Premises existing as of the Termination Date or repairs required after the Termination Date. D. Tenant Alterations Tenant may make alterations, additions, upgrades or improvements to the Premises exceeding $5,000 only with the prior written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion. Tenant shall notify Landlord of any alterations, additions, upgrades or improvements made without obtaining Landlord's consent. 10. Signs Tenant, at Tenant's expense and with Landlord's consent, which shall not be unreasonably withheld, may erect and alter reasonable signage for Tenant's business. Landlord reserves the right to display signs at the Premises in connection with commercially reasonable efforts to market the Premises for sale or lease. 11. Entry by Landlord Landlord, upon reasonable prior Notice, may enter the Premises to repair and maintain such facilities and to investigate and plan alterations to the Premises after the Term, without such use constituting constructive eviction or entitle Tenant to an abatement or reduction of Rent. Landlord, its agents, contractors and representatives may enter the Premises to inspect or show the Premises, to clean and make repairs, alterations or additions to the Premises, and to conduct or facilitate repairs, alterations or additions to any portion of the Premises. Except in emergencies, Landlord shall provide Tenant with reasonable prior Notice of entry into the Premises, which may be given orally. If reasonably necessary for the protection and safety of Tenant and its employees and customers, Landlord shall have the right to temporarily close all or a portion of the Premises to perform repairs, alterations and additions. However, except in emergencies, Landlord will not close the Premises if the work can reasonably be completed on days that are not Business Days. Entry by Landlord shall not constitute constructive eviction or entitle Tenant to an abatement or reduction of Rent. Sublease and Sale Agreement -12_ 114 of 162 14591 - 001:102512 12. Representations A. By Tenant Tenant covenants, warrants and represents that: (1) Each individual executing, attesting and/or delivering this Agreement on behalf of Tenant is authorized to do so; (2) this Agreement is binding upon Tenant; (3) this Agreement constitutes Tenant's legal, valid and binding obligation, enforceable against the Tenant in accordance with its terms; (4) there are no actions, suits, investigations, hearings or proceedings pending or threatened against or affecting Tenant before any court, arbitrator, legislative body or governmental agency; (5) Tenant has not employed any broker, agent or finder, or incurred any liability for any brokerage fees, agents' commissions or finders' fees in connection with the transactions contemplated in this Agreement; and (6) Annalea Lott and Judilee Forrest are the sole shareholders, directors and officers of Tenant. B. By Landlord Landlord covenants, warrants and represents that: (1) Each individual executing, attesting and/or delivering this Agreement on behalf of Landlord is authorized to do so on behalf of Landlord; (2) this Agreement is binding upon Landlord; (3) this Agreement constitutes Landlord's legal, valid and binding obligation, enforceable against the Landlord in accordance with its terms; (4) there are no actions, suits, investigations, hearings or proceedings pending or threatened against or affecting Landlord before any court, arbitrator, legislative body or governmental agency; (5) Landlord is duly organized and legally existing in the state of its organization and is qualified to do business in Alaska; (6) Landlord's managers have duly authorized Landlord to enter into this Agreement; and (7) Landlord has not employed any broker, agent or finder, or incurred any liability for any brokerage fees, agents' commissions or finders' fees in connection with the transactions contemplated in this Agreement. 13. Quiet Enjoyment Tenant shall, and may peacefully have, hold and enjoy the Premises, subject to the terms of this Agreement, provided Tenant pays the Rent and substantially performs all of its covenants and agreements. This covenant and all other covenants of Landlord shall be binding upon Landlord and its successors only during its or their respective periods of ownership of the Premises, and shall not be a personal covenant of Landlord or the Landlord Related Parties. Sublease and Sale Agreement - 13 - 115 of 162 14591 - 001:102512 14. Liens and Creditor Claims A. Liens Tenant shall not permit mechanic's or other liens to be placed upon the Premises or Personal Property, or Tenant's leasehold interest, in connection with any work or service done or purportedly done by or for benefit of Tenant. If a lien is so placed, Tenant shall, within 10 days of Notice from Landlord of the filing of the lien, fully discharge the lien by settling the claim which resulted in the lien or by bonding or insuring over the lien in the manner prescribed by the applicable lien Law. If Tenant fails to discharge the lien, then, in addition to any other right or remedy of Landlord, Landlord, upon 10 days written notice may bond or insure over the lien or otherwise discharge the lien. Tenant shall reimburse Landlord for any amount paid by Landlord to bond or insure over the lien or discharge the lien, including, without limitation, reasonable attorneys' fees (if and to the extent permitted by Law) within 15 days after receipt of an invoice from Landlord. B. Creditor Claims If requested by Landlord, within 30 days after the end of each month Tenant shall deliver to Landlord a statement certified by Tenant satisfactory to Landlord setting forth all debts and taxes arising from the conduct of the business licensed by the Alaska Alcohol Beverage Control Board, and Tenant's plan to satisfy such debts and taxes. Tenant promptly shall provide such additional information as Landlord may reasonably request that may be necessary to evaluate Tenant's report. Tenant shall not permit such debts and taxes to exceed $2,500. 15. Indemnity and Waiver of Claims A. General Indemnity by Tenant Except to the extent caused by the negligence or willful misconduct of the indemnified person, Tenant shall indemnify, defend and hold Landlord, its managers, members, employees, Mortgagee(s) and agents ( "Landlord Related Parties ") harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable attorneys' fees and other professional fees (if and to the extent permitted by Law), which may be imposed upon, incurred by or asserted against Landlord or any of the Landlord Related Parties and arising out of or in connection with any damage or injury occurring in the Premises, relating to the Personal Property, or any acts, errors or omissions (including violations of Law) of Tenant, or any of Tenant's transferees, contractors or licensees. -14- Sublease and Sale Agreement 116 of 162 14591 A01:102512 B. Hazardous Substances Tenant shall not bring, leave, store, use, generate, transport, produce or release any Hazardous Substances in, on or about the Premises without Landlord's express written consent; provided, however, that Tenant may store, use, transport and distribute small, reasonable amounts of consumer -grade office and cleaning supplies and similar products in connection with the conduct of its business at the Premises. All Hazardous Substances shall be used and stored in compliance with all governmental regulations, manufacturer's directions, best business practices and Landlord's reasonable regulations. From time to time Landlord may inspect the Premises and Tenant's use for compliance with this Section, and impose specific use and reporting requirements to promote or assure compliance. Tenant shall indemnify, defend, and hold Landlord harmless from any claim, judgment, damage, penalty, fine, cost, liability, or loss (including diminution in value of the property, remediation expenses, investigation of site conditions, and legal and expert fees) which arise as a result of contamination of the Premises, or nearby land, air, or water by Hazardous Substances or the release or threatened release of Hazardous Substances at the Premises or nearby land, air, or water as a result of acts, errors or omissions by Tenant, or other persons for whom Tenant is responsible, unless caused by or resulting solely from the negligence of Landlord. Tenant shall immediately notify Landlord of any contamination of the Premises or nearby land, air, or water by Hazardous Substances, any release or threatened release of Hazardous Substances, or any notice from a governmental agency respecting contamination of or any release or threatened release of Hazardous Substances at the Premises or nearby land, air, or water, and conduct a thorough and complete remediation of the Premises and nearby land, air and water to remove all contamination pursuant to a remediation plan approved by Landlord, which approval shall not be unreasonably withheld. "Hazardous Substances" means any hazardous, radioactive, corrosive or toxic substance, material, or waste which is or may become regulated by a governmental authority, including petroleum products. C. General Indemnity by Landlord Except to the extent caused by the negligence or willful misconduct of the indemnified person, Landlord shall indemnify, defend and hold Tenant and its officers, directors, employees and agents ("Tenant Related Parties ") harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including, without limitation, reasonable attorney's fees and other professional fees (if and to the extent permitted by Law), which may be imposed upon, incurred by or asserted against Tenant and arising out of or in connection with the acts, errors or omissions (including violations of Law) of Landlord, the Landlord Related Parties or any of Landlord's contractors. -15- Sublease and Sale Agreement 117 of 162 14591-001;102512 D. Waiver of Claims Landlord and the Landlord Related Parties shall not be liable for, and Tenant waives, all claims for loss or damage to Tenant's business or loss, theft or damage to Tenant's property or the property of any person claiming by, through or under Tenant resulting from: (1) wind or weather; (2) the failure of any sprinkler, heating or air - conditioning equipment, any electric wiring or any gas, water or steam pipes; (3) the backing up of any sewer pipe or downspout; (4) the bursting, leaking or running of any tank, water closet, drain or other pipe; (5) water, snow or ice upon or coming through the roof, skylight, stairs, doorways, windows, walks or any other place upon or near the Premises; (6) any act or omission of any party other than Landlord or Landlord Related Parties; and (7) any causes not reasonably within the control of Landlord. Tenant shall insure itself against such losses under Section 16. 16. Insurance A. In General Tenant shall carry and maintain the following insurance ( "Tenant's Insurance "), at its sole cost and expense: (a) commercial general liability insurance applicable to the Premises and its appurtenances providing, on an occurrence basis, a minimum combined single limit of $1,000,000; (b) commercial casualty property insurance, including water damage and other risks commonly included in "all risk" coverage, in an amount of not less than the replacement cost of the Premises plus $100,000 to cover the Personal Property and all of Tenant's trade fixtures, equipment, furniture and other personal property within the Premises ("Tenant's Property "); (c) workers' compensation insurance as required by the state of Alaska and in amounts as may be required by applicable statute; and (d) employers liability coverage of at least $100,000 per occurrence. Casualty policies shall include coverage for all increases in the cost of construction or repair of the Premises caused by the enforcement of any Law regulating, prohibiting, or restricting the repair or reconstruction of the Premises and all costs of demolition of any undamaged portion of the Premises and the value of that undamaged portion and the replacement cost of the undamaged and damaged portion. Each policy of insurance shall be issued by an insurance company and in a form reasonably acceptable to Landlord. The commercial general liability insurance policy shall name Tenant as a named insured and the casualty insurance policy shall name Landlord as the primary named insured. All policies of Tenant's Insurance shall contain endorsements that the insurer(s) shall give Landlord at least 30 days' advance written Notice of any material change, cancellation, termination or lapse of insurance. Tenant shall provide Landlord with a certificate of insurance evidencing Tenant's Insurance prior to the Commencement Date. Sublease and Sale Agreement -16- 118 of 162 14591 -001:102512 B. Changes in Insurance Limits (1) At least 30 days before each extension of the Term, Landlord may Notify Tenant of increased commercial general liability limits to reflect limits generally carried by persons conducting operations similar to Tenant's operations at the Premises. (2) At least 30 days before each extension of the Term, Landlord may Notify Tenant of increased replacement cost of the Premises. If Tenant disagrees, Tenant and Landlord shall jointly hire a contractor or other expert to determine the replacement cost, and that person's opinion shall be the replacement cost until changed in connection with a later extension. If the expert's opinion of replacement cost is more than 10% more or less than replacement cost in Landlord's Notice, Landlord shall pay the cost of obtaining the expert's opinion. If the expert's opinion of replacement cost is not more than 10% more or less than replacement cost in Landlord's Notice, Tenant shall pay the cost of obtaining the expert's opinion. C. Increases in Insurance Rates Tenant shall not do or permit to be done any act or thing upon or about the Premises which will (1) result in the assertion of any defense by the insurer to any claim under, (2) invalidate, or (3) be in conflict with, the policies covering the Premises, and fixtures and property therein, or which would increase the rate of fire insurance applicable to the Premises to an amount higher than it otherwise would be; and Tenant shall neither do not permit to be done any act or thing, upon or about the Premises which shall or might subject Landlord to any liability or responsibility for injury to any person or persons or to property; but nothing in this Section shall prevent Tenant's use of the Premises for the purposes stated in this Agreement. D. Waiver of Subrogation Notwithstanding anything in this Agreement to the contrary, Tenant shall cause its insurance carriers to waive any and all rights of recovery, claim, action or causes of action against Landlord and its respective directors, officers, managers, employees, and agents, for any loss or damage that may occur to Tenant or any party claiming by, through or under Tenant, with respect to Tenant's Property, the Premises, any additions or improvements to the Premises, or any contents thereof, including all rights of recovery, claims, actions or causes of action arising out of the negligence of Landlord or any Landlord Related Parties, which loss or damage is (or would have been, had the insurance required by this Agreement been carried) covered by insurance. Tenant shall look solely to its insurance to cover such loss or damage, notwithstanding the negligence of Landlord or any Landlord Related Parties. - 17- Sublease and Sale Agreement 119 of 162 14591-001:102512 17. Casualty Damage A. Damage to Premises and Reconstruction If all or any part of the Premises is damaged by fire or other casualty, Tenant shall immediately notify Landlord in writing. Unless this Agreement is terminated pursuant to Section 17.13 and notwithstanding the allocation of repair obligations in Section 9, if all or any part of the Premises is damaged by fire or other casualty Tenant shall commence and proceed with reasonable diligence to repair and restore the Premises to its condition immediately before the fire or other casualty in accordance with a work plan approved by Landlord. Landlord shall not be liable for any loss or damage to Tenant's property or to the business of Tenant resulting in any way from the fire or other casualty or from the repair and restoration of the damage. B. Termination of Agreement (1) By Landlord. Landlord shall have the right to terminate this Agreement without fault if. (a) the Premises are damaged so that, in Landlord's reasonable judgment, substantial alteration or reconstruction of the Premises is required; or (b) Tenant is not permitted by Law to rebuild the Premises in substantially the same form as existed before the fire or casualty. Landlord shall exercise its right to terminate this Agreement by notifying Tenant in writing within 45 days after the date of the casualty. (2) By Landlord or Tenant. If all or any portion of the Premises is made untenantable by fire or other casualty, Tenant shall, with reasonable promptness, cause an architect or general contractor selected by Tenant and approved by Landlord to provide Landlord and Tenant with a written estimate of the amount of time required to substantially complete the repair and restoration of the Premises and make the Premises tenantable again, using standard working methods ( "Completion Estimate "). If (a) the Completion Estimate indicates that the Premises cannot be made tenantable within 90 days from the date the repair and restoration is started, or (b) any Mortgagee requires that the insurance proceeds be applied to the payment of the mortgage debt such that there are inadequate proceeds remaining to fund the repair and restoration, or (c) Landlord does not release to Tenant from the insurance proceeds sufficient funds to complete the repair and restoration of the Premises and make the Premises tenantable again, then either Landlord or Tenant shall have the right to terminate this Agreement without fault by giving written Notice to the other of such election within 10 days after receipt of the Completion Estimate. Tenant, however, shall not have the right to terminate this Agreement if the fire or casualty was caused by the negligence or intentional misconduct of Tenant or its Affiliates or transferees, contractors or licensees. Sublease and Sale Agreement 120 of 162 14591- 001:102512 18. Condemnation Either party may terminate this Agreement if all or any material part of the Premises is taken or condemned for any public or quasi- public use under Law, by eminent domain or private purchase in lieu thereof (a "Taking "). In order to exercise its right to terminate the Lease, Landlord or Tenant, as the case may be, must provide written Notice of termination to the other within 45 days after the terminating party first receives notice of the Taking. Any such termination shall be effective as of the date the physical taking of the Premises or the portion of the Premises or Property occurs. In addition, Rent for any portion of the Premises Taken shall be equitably abated during the unexpired Term of this Agreement effective when the physical taking of the portion of the Premises occurs. All compensation awarded for a Taking, or sale proceeds, shall be the property of Landlord, any right to receive compensation or proceeds being expressly waived by Tenant. However, Tenant may file a separate claim at its sole cost and expense for Tenant's Property and Tenant's reasonable relocation expenses, or other allowable damages. 19. Anti - Terrorism Representation and Warranty Landlord and Tenant each represent and warrant that neither they nor the officers and directors controlling Landlord and Tenant, respectively, are acting, directly or indirectly, for or on behalf of any person, group, entity, or nation named by the United States Treasury Department as a Specially Designated National and Blocked Person, or for or on behalf of any person, group, entity, or nation designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism; and that they are not engaged in this transaction directly or indirectly on behalf of, or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity or nation. Each party shall defend, indemnify, and hold harmless the other party from and against any and all claims, damages, losses, risks, liabilities and expenses (including reasonable attorneys' fees and costs) arising from or related to any breach of the foregoing representation and warranty. 20. Assignment and Subletting A. In General, by Tenant Tenant shall not assign, sublease, transfer or encumber any interest in this Agreement or allow any third party to use any portion of the Premises (collectively or individually, a "Transfer`) without the prior written consent of Landlord, which Landlord may grant or withhold in its sole discretion. Any attempted Transfer in violation of this Section shall, at Landlord's option, be void. Consent by Landlord to one or more Transfer(s) shall not operate as a waiver of Landlord's rights to approve any subsequent Transfers. In no event shall any Transfer release or relieve Tenant from any obligation under this Agreement. -19- Sublease and Sale Agreement 121 of 162 14591 -001:102512 B. In General, by Landlord Landlord shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under this Agreement and in the Premises, and upon such transfer Landlord shall be released from any further obligations under this Agreement, and Tenant agrees to look solely to the successor in interest of Landlord for the performance of such obligations. 21. Satisfaction of Conditions A. ABC Board Approval Landlord and Tenant shall promptly apply for transfer of the Liquor License by Landlord to Tenant. Each party shall promptly provide such information and execute such documents, and shall otherwise cooperate fully and use their best effort, as may be required to obtain approval of the transfer. Tenant shall pay any fees payable in connection with the transfer and obtaining approval of the transfer. B. City of Kenai Approval Landlord and Tenant shall promptly apply for approval by the City of Kenai to Landlord's sublease under the Prime Lease to Tenant as provided by this Agreement. Each party shall promptly provide such information and execute such documents, and shall otherwise cooperate fully and use their best effort, as may be required to obtain approval. Tenant shall pay any fees payable in connection with obtaining approval. C. Communications regarding Conditions to Commencement Date Each party shall keep the other informed of progress and developments in satisfying the conditions set forth in the definition of Commencement Date. D. Termination for Failure of Conditions If the conditions set forth in the definition of Commencement Date have not been satisfied by December 31, 2013, either party may terminate this Agreement upon 30 days' notice to the other. 22. Guarantee by Tenant Principals Within 30 days of execution of this Agreement, and before the Commencement Date, Tenant shall obtain the guarantees of Tenant's obligations under this Agreement by Annalea Lott and Judilee Forrest, in form and content acceptable to Landlord. If the guarantees are not timely provided, Landlord may terminate this Agreement without fault by giving Notice to Tenant. -20- Sublease and Sale Agreement 14;91 - 001102512 122 of 162 23. Option to Purchase A. Grant of Option to Purchase Tenant shall have the exclusive option to purchase (the "Purchase Option ") all, and only all of, the Premises and Personal Property, which Purchase Option may be exercised only and strictly in accordance with the terms of this Section 23. Except as provided in this Section 23, Tenant shall have no right or option to purchase or otherwise acquire the Premises. B. Election to Exercise Option Tenant shall exercise the Purchase Option by delivery of an unconditional Notice exercising the option to purchase the Premises (the "Option Notice "). The Option Notice may be delivered to Landlord no earlier than October 1, 2013. The date Tenant delivers its Option Notice shall be the "Purchase Option Election Date." Tenant shall pay an earnest money deposit of 5% of the Purchase Price to Landlord in conjunction with the Option Notice. If the Option Notice is not timely or duly delivered, the Purchase Option shall be null and void. In addition, the Purchase Option shall immediately terminate upon the earlier termination or the expiration of this Agreement. Tenant shall have no right to exercise the Purchase Option or close the purchase if at the time (i) Tenant is in material default or (ii) the Term has terminated or expired. C. Purchase Price If the closing occurs prior to October 1, 2015, the purchase price shall be an amount equal to the Percentage Rent for the Rent Year most recently completed before the closing, multiplied by 10. If the closing occurs on or after October 1, 2015, the purchase price shall be the average Percentage Rent for the three Rent Years most recently completed before the closing, multiplied by 10. D. Closing of Option The closing shall occur on a date and time (the "Purchase Option Closing Date "), and at such place, as the parties may mutually agree, provided, that, in no event shall the Purchase Option Closing Date be later than sixty (60) days after the Purchase Option Election Date or fifteen (15) days after the Purchase Price is determined, whichever is later, unless mutually agreed upon by the parties. Closing costs shall be equally shared between the parties. Subject to the terns of this Agreement, Rent shall be prorated between Landlord and Tenant as of the Purchase Option Closing Date. No portion of the Rent or other amounts payable under this Agreement (other than the earnest money deposit) shall apply toward the Purchase Price. -21- Sublease and Sale Agreement 123 of 162 14591 - 001:102512 E. Payment of Purchase Price and Accrued Rent (1) At the closing, Tenant shall pay the Percentage Rent and any Additional Rent accrued as of the closing. (2) At the closing, Tenant shall pay the Purchase Price, less the earnest money deposit, to Landlord in cash. (3) If as of the closing Tenant has purchased the reversionary interest of the City of Kenai under the Prime Lease and has financed that purchase with conventional bank financing, then upon Tenant's request at closing in lieu of payment in accordance with Section 23.E(2) Tenant shall pay Landlord an amount equal to 10% of the purchase price, less the earnest money deposit, and execute and deliver to Landlord Tenant's promissory note for the balance payable in equal monthly payments over 120 months including interest at the "prime rate" published in the Wall Street Journal plus two percentage points, but not less than 5.25% or more than 8.25 %. The promissory note shall be secured by a deed of trust, security agreement and other collateral interests requested by Landlord in the Premises, Personal Property and land, subordinate only to Tenant's loan to purchase the reversionary interest, and shall be guaranteed by Tenant's principals, all in form and substance acceptable to Landlord. F. Effect of Agreement During the period between the Purchase Option Election Date and the Purchase Option Closing Date, all terms and conditions of this Agreement, including, but not limited to, Tenant's various payment obligations, shall continue in full force and effect. Furthermore, if for any reason the Purchase Option Closing Date extends beyond the expiration of the Term, the terms and conditions of this Agreement shall continue in full force and effect until the Purchase Option Closing Date occurs or fails. The failure of the Purchase Option to close and the continuation of the Lease shall be without prejudice to Landlord's rights in the event of Tenant's default of its purchase obligation after exercising its Purchase Option, including without limitation the right to seek damages and/or specific performance. In addition, if at any time prior to closing an event of default occurs, Landlord shall have the option to waive such default and proceed to closing without adjustment to the Purchase Price or immediately terminate the Purchase Option by Notice to Tenant and retain Tenant's earnest money deposit. G. Conveyance of Interest Conveyance of Landlord's leasehold interest to the Premises at the closing of the Purchase Option shall be by statutory warranty deed, subject to all matters of record, excluding any matters arising out of or related to Landlord's financing, if any, and subject to any matters arising from Tenant's use and occupancy of the Property. Sale shall be "AS IS," with all faults, and Landlord shall not provide any representations or warranties Sublease and Sale Agreement -22- 124 of 162 14591 -001;102512 (express or implied) with respect to, and shall have no liability for, the condition of the Premises. At the closing of the sale, this Agreement shall terminate, except that any provisions which are designated as surviving termination, including all indemnity and defense provisions, and this Section, shall survive such termination and not merge into the deed to be delivered. H. No Assignment The Purchase Option may not be assigned or otherwise transferred by Tenant without the prior written consent of Landlord, which consent Landlord can withhold in its sole and absolute discretion, and any assignments in violation hereof shall be null and void and of no force or effect. 24. Events of Default Tenant shall be considered to be in default of this Agreement upon the occurrence of any of the following events of default: (1) Tenant's failure to pay when due all or any portion of the Rent ( "Monetary Default "). (2) Tenant's failure (other than a Monetary Default) to comply and perform with any term, provision or covenant of this Agreement, if the failure is not cured within 10 days after written Notice to Tenant. However, if Tenant's failure to comply cannot reasonably be cured within 10 days, Tenant shall be allowed additional time (not to exceed 20 days) as is reasonably necessary to cure the failure so long as: (a) Tenant commences to cure the failure within 10 days after receiving the Notice, and (b) Tenant diligently pursues a course of action that will cure the failure and bring Tenant back into compliance with the Lease. However, if Tenant's failure to comply creates a hazardous condition, the failure must be cured as quickly as is practicable upon Notice to Tenant. In addition, if Landlord provides Tenant with Notice of Tenant's failure to comply with any particular material term, provision or covenant of the Lease on two occasions during the Term, Tenant's subsequent violation of such term, provision or covenant shall, at Landlord's option, be an incurable event of default by Tenant. (3) Tenant's failure to comply with and perform any term, provision or covenant of the Prime Lease, if the failure is not cured by the earlier of 10 days after written Notice to Tenant by Landlord or the City of Kenai or 5 days before the cure period under the Prime Lease expires. (4) Tenant or any Affiliate becomes a debtor in bankruptcy or insolvent, makes a transfer in fraud of creditors or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts when due. (5) The Premises are taken by process or operation of Law. -23- Sublease and Sale Agreement 14591- 001:102512 125 of 162 (6) The abandonment or vacation of the Premises by Tenant or the failure of Tenant to carry on its business at the Premises for a period of 5 consecutive days. (7) Tenant does not take possession of the Premises. (8) Default by any principal of Tenant of the guarantee given for the benefit of Landlord. 25. Remedies A. Landlord Remedies Upon any default by Tenant, except as limited by this section Landlord shall have the right without Notice or demand (except as provided in Section 24) to pursue any of its rights and remedies at Law or in equity, including any one or more of the following remedies: (1) Terminate this Agreement, in which case Tenant shall immediately surrender the Premises to Landlord. If Tenant fails to surrender the Premises, Landlord may, in compliance with applicable Law and without prejudice to any other right or remedy, enter upon and take possession of the Premises and expel and remove Tenant, Tenant's Property and any party occupying all or any part of the Premises. (2) Recover losses and damages which Landlord may suffer as a result of Tenant's default, other than Rent. (3) Recover from Tenant as damages the sum of (a) all Rent accrued through the date of termination of this Agreement or Tenant's right to possession, and (b) all Rent that would accrue through the Termination Date. The parties acknowledge that in general Landlord has an obligation to mitigate damages. However, given the relatively short term of the Lease, it is unlikely that Landlord would be successful in reletting the Premises for the remaining term. The actual amount of damages relating to unpaid Rent therefore would be uncertain and difficult to determine. The parties desire to avoid dispute over damages relating to unpaid Rent and intend that recovery of the Rent for the Term be liquidated damages for Tenant's obligations under this Agreement to pay Rent. It does not, however, relieve Tenant of amounts it may be obligated to pay unrelated to Rent, such as for damage to the Premises, failure to repair and maintain the Premises, or under its indemnity obligations. B. Landlord's Right to Cure If Tenant defaults in the making of any payment or in the doing of any act to be made or done by Tenant, then Landlord may, but shall not be required to, make such payment or do such act. If Landlord elects to make such payment or do such act, all costs -24- Sublease and Sale Agreement 14591 - 001:102512 126 of 162 and expenses incurred by Landlord, plus 15% for Landlord's administrative cost, plus interest from the date paid by Landlord to the date of payment by Tenant, shall be immediately paid by Tenant to Landlord upon demand. The making of any payment or the taking of such action by Landlord shall not be considered as a cure of such default by Tenant or prevent Landlord from pursuing any remedy it is otherwise entitled to pursue in connection with such default. C. Miscellaneous Provisions Respecting Remedies Unless expressly provided in this Agreement, the repossession or re- entering of all or any part of the Premises shall not relieve Tenant of its liabilities and obligations under the Lease. No right or remedy of Landlord shall be exclusive of any other right or remedy. Each right and remedy shall be cumulative and in addition to any other right and remedy now or subsequently available to Landlord at Law or in equity. 26. No Waiver Either party's failure to declare a default immediately upon its occurrence, or delay in taking action for a default, shall not constitute a waiver of the default, nor shall it constitute an estoppel. Either party's failure to enforce its rights for a default shall not constitute a waiver of its rights regarding any subsequent default. Receipt by Landlord of Tenant's keys to the Premises shall not constitute an acceptance or surrender of the Premises. 27. Surrender of Premises and Return of Liquor License A. Condition At the expiration or earlier termination of this Agreement or Tenant's right of possession, Tenant shall remove Tenant's Property from the Premises, and quit and surrender to Landlord without charge the Premises and all Personal Property required to operate the business at the Premises (e.g., boilers, beds, televisions, furnishings and kitchen and bar equipment) whether or not acquired by Landlord or Tenant, broom clean and in as good order, condition and repair as at the Commencement Date or better, ordinary wear and tear and changes caused by Landlord excepted. Tenant is not required to surrender inventory and consumables, which shall be retained by Tenant. B. Liquor License At the expiration or earlier termination of this Agreement or Tenant's right of possession, at Landlord's request Tenant shall promptly and diligently execute all applications and take all actions reasonably requested by Landlord that may be necessary to transfer the Liquor License to Landlord or its designee and obtain the approval by the Alaska Alcohol Beverage Control Board to such transfer. Landlord shall be deemed Tenant's irrevocable agent for purposes of executing documents in Tenant's name to -25- Sublease and Sale Agreement 127 of 162 14591 M1:102512 obtain such approval. Tenant's obligation pursuant to this section shall be specifically enforceable by a court without posting of a bond. C. Abandoned Property If Tenant fails to remove any of Tenant's Property within 2 days after the termination of this Agreement or of Tenant's right to possession, Landlord, at Tenant's sole cost and expense, shall be entitled (but not obligated) to remove and store Tenant's Property. Landlord shall not be responsible for the value, preservation or safekeeping of Tenant's Property. Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred for Tenant's Property. In addition, if Tenant fails to remove Tenant's Property from the Premises or storage, as the case may be, within 15 days after written Notice, Landlord may deem all or any part of Tenant's Property to be abandoned, and title to Tenant's Property shall be deemed to be immediately vested in Landlord without compensation. 28. Holding Over If Tenant fails to surrender the Premises at the expiration or earlier termination of this Agreement, occupancy of the Premises after the termination or expiration shall be that of a tenancy at sufferance. Tenant's occupancy of the Premises during the holdover shall be subject to all the terms and provisions of this Agreement, including payment of Additional Rent, except that in lieu of paying annual Percentage Rent in accordance with Section 5.B Tenant shall pay Landlord as rent, on the first day of each month during the holdover, without reduction for partial months, an amount equal to 130% of the Average Monthly Percentage Rent for the Base Rent Year. For purposes of the preceding sentence, the "Base Rent Year" means the Rent Year most recently completed before the commencement of the holdover, not including a Rent Year that ended prematurely due to termination of the Term, and the "Average Monthly Percentage Rent" shall be calculated by dividing the annual Percentage Rent for the Base Rent Year by the number of months in the Base Rent Year. No holdover by Tenant or payment by Tenant after the expiration or early termination of this Agreement shall be construed to extend the Term or prevent Landlord from immediate recovery of possession of the Premises by summary proceedings or otherwise. In addition to the payment of the amounts provided above, if Landlord is unable to deliver possession of the Premises to a new tenant, or to perform improvements for a new tenant, as a result of Tenant's holdover and Tenant fails to vacate the Premises within 15 days after Landlord notifies Tenant of Landlord's inability to deliver possession, or perform improvements, Tenant shall be liable to Landlord for all damages, including, without limitation, consequential damages, that Landlord suffers from the holdover. _25_ Sublease and Sale Agreement 14591 - 001:102512 128 of 162 29. Landlord Mortgages; Estoppel Certificate A. Mortgages Tenant accepts this Agreement subject and subordinate to any mortgage(s), deed(s) of trust, ground lease(s) or other lien(s) now or subsequently arising upon the Premises, the Premises or the Real Property, and to renewals, modifications, refinancings and extensions thereof (collectively referred to as a "Mortgage;" the party having the benefit of a Mortgage is referred to as a "Mortgagee`). This clause shall be self - operative, but upon request from a Mortgagee, Tenant shall execute a commercially reasonable subordination agreement in favor of the Mortgagee. In lieu of having the Mortgage be superior to this Agreement, a Mortgagee shall have the right at any time to subordinate its Mortgage to this Agreement. If requested by a successor -in- interest to all or a part of Landlord's interest in the Lease, Tenant shall, without charge, attom to the successor -in- interest. B. Protections of Tenant Landlord shall timely pay its Mortgage obligations secured on the Premises and Real Property Taxes relating to the Premises. Landlord shall request that its Mortgagee, and use its reasonable best efforts to obtain its Mortgagee's agreement to, notify Tenant if Landlord becomes more than 30 days in arrears on its Mortgage. Tenant may pay and/or cure delinquent payment under the Mortgage or of Real Estate Taxes, with any such payment crediting to Rent. Landlord and Tenant shall use their reasonable best efforts to obtain a satisfactory attomment agreement with the Mortgagee limiting the present or any future Mortgagee from foreclosing this Agreement in the event of default under the Mortgage(s) by Landlord and full performance by Tenant under this Agreement. C. Rights of Mortgagees To Cure Defaults Tenant agrees to furnish simultaneously to any Mortgagee of which Tenant has Notice copies of any default or other notices delivered by Tenant to Landlord in connection with this Agreement, and no such notice shall be effective unless and until a copy of it is sent to each such Mortgagee. Each such Mortgagee shall have the right (but not the obligation) to cure any default by Landlord within the same time period afforded to Landlord to cure any such default, plus such additional period of time as may be reasonably necessary for such Mortgagee to cure such default, including (without limitation) any period necessary for such Mortgagee to obtain possession of the Property in order to cure such default. D. Estoppel Certificates Landlord and Tenant shall each, within 10 days after receipt of a written request from the other, execute and deliver an estoppel certificate to those parties as are -27- Sublease and Sale Agreement 14591 - 001:102512 129 of 162 reasonably requested by the other (including a Mortgagee or prospective purchaser). The estoppel certificate shall include a statement certifying that this Agreement is unmodified (except as identified in the estoppel certificate) and in full force and effect, describing the dates to which Rent and other charges have been paid, representing that, to such party's actual knowledge, there is no default (or staring the nature of the alleged default) and indicating other matters with respect to the Lease that may reasonably be requested. 30. Notice If a demand, request, approval, consent or notice (collectively referred to as a "Notice ") is or may be given to either party by the other, the Notice shall be in writing and delivered by hand or sent by registered or certified mail with return receipt requested, or sent by overnight or same day courier service at the party's respective Notice Address set forth in Section 1, except that if Tenant has vacated the Premises (or if the Notice Address for Tenant is other than the Premises, and Tenant has vacated such address) without providing Landlord a new Notice Address, Landlord may serve Notice in any manner described in this Section or in any other manner permitted by Law. Each Notice shall be deemed to have been received or given on the earlier to occur of actual delivery or the date on which delivery is refused, or, if Tenant has vacated the Premises or the other Notice Address of Tenant without providing a new Notice Address, 3 days after Notice is deposited in the U.S. mail or with a courier service in the manner described above. Either party may, at any time, change its Notice Address by giving the other party written Notice of the new address in the manner described in this Section. 31. Miscellaneous A. Interpretation, Generally If any tern or provision of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall not be affected, and each provision of this Agreement shall be valid and enforced to the fullest extent permitted by Law. The headings and titles to the Sections of this Agreement are for convenience only and shall have no effect on the interpretation of any part of the Lease. B. Interest Unless otherwise provided, any amount payable by one party to the other that has not been paid when due, or otherwise is unpaid, shall accrue interest at the prime rate published from time to time in the Wall Street Journal, plus five percentage points, but not more than the maximum rate permitted by Law. _28- Sublease and Sale Agreement 14591 - 001:102512 130 of 162 C. Attorneys' Fees If either party institutes a suit against the other for violation of or to enforce any covenant or condition of this Agreement, or if either party intervenes in any suit in which the other is a party to enforce or protect its interest or rights, the prevailing party shall be entitled to all of its costs and expenses, including, without limitation, reasonable attorneys' fees. D. Recordation Tenant shall not record this Agreement or any memorandum without Landlord's prior written consent. E. Governing Law and Venue This Agreement has been entered into and shall be governed by the laws of Alaska. Venue for any dispute arising out of this Agreement shall be exclusively in Kenai, Alaska. F. Waiver of Trial by Jury Landlord and Tenant hereby waive any right to trial by jury in any proceeding based upon a breach or enforcement of this Agreement. G. Time of Essence Time is of the essence in the performance by the parties of their respective obligations under this Agreement. H. Further Assurances Each party shall from time -to -time, at the reasonable request of the other party (a) execute and deliver or cause to be executed and delivered such additional documents and papers, and (b) take or cause to be taken such additional actions as may be reasonably required to effectively evidence and implement the transactions described in and contemplated by this Agreement. I. Force Majeure Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant, the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, civil disturbances and other causes beyond the reasonable control of the performing party ( "Force Majeure "). However, events of Force Majeure shall not extend any period of time for the payment of Rent or other sums -29- Sublease and Sale Agreement 131 of 162 19591 -001:102512 payable by either party or any period of time for the written exercise of a right by either ply, J. Captions, References Pronouns, of whatever gender, shall include natural persons and corporations and entities of every kind and character, and the singular shall include the plural wherever as may be appropriate. Section headings are for convenience of reference and shall not affect the construction or interpretation of this Agreement. Whenever the word "including" is used, it shall be construed to mean "including without limitation ". K. Relationship of Parties This Agreement shall create only the relationship of landlord and tenant between the parties, and not a partnership, joint venture or any other relationship. This Agreement and the covenants and conditions in this Agreement shall inure only to the benefit of and be binding only upon Landlord and Tenant and their permitted successors and assigns. There are no third party beneficiaries. L. Negotiations The parties represent and agree that the terms and provisions of this Agreement are the result of arm's length negotiations between the parties and that each party has had the benefit of counsel, to the extent it deemed appropriate. Therefore, this Agreement shall not be construed either for or against a particular party by reason of draftsmanship or otherwise. M. Expiration or Termination of Term The expiration or termination of the Term, whether by lapse of time or otherwise, shall not relieve either party of any obligations which accrued prior to or which may continue to accrue after the expiration or early termination of this Agreement, or which this Agreement contemplate will continue after the expiration or termination. Without limiting the scope of the prior sentence, Tenant's obligations under Sections 14, 15, 25, 27, 28 and 31 shall survive the expiration or termination of this Agreement. N. Signatures of Both Parties Required Landlord has delivered a copy of this Agreement to Tenant for Tenant's review only, and the delivery of it does not constitute an offer to Tenant or an option. This Agreement shall not be effective against any party until an original copy of this Agreement has been signed by such party. -30- Sublease and Sale Agreement 132 of 162 14591- 001. 102512 O. Amendment This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms and conditions of this Agreement may be waived, only by a written instrument signed by both parties. This Agreement may not be amended or modified by course of conduct. P. Final, Complete Agreement This Agreement and the attached exhibits referred in this Agreement are the final, complete agreement of the parties respecting lease and purchase of the Premises and Personal Property. All understandings and agreements previously made between the parties, including all lease proposals, letters of intent and other documents, are superseded by this Agreement. Neither party is relying upon any warranty, statement or representation not contained in this Agreement. 32. Index of Defined Terms The following terms are defined in this Agreement on the pages set forth below Affiliate 3 Percentage Rent 4 Agreement 1 Permitted Use 2 Average Monthly Percentage Rent 26 Personal Property 2 Base Rent Year 26 Premises 2 Business Day(s) 3 Prime Lease 2 Conunencement Date I Purchase Option 20 Completion Estimate 18 Purchase Option Closing Date 21 Force Majeure 29 Purchase Option Election Date 21 Gross Revenues 5 Real Esate Taxes 7 Hazardous Substances 15 Real Property 2 Holidays 3 Rent 8 Landlord 1 Rent Tax 7 Landlord Related Parties 14 Rent Year 4 Law(s) 3 Repair 1I Liquor Inventory 1 Taking 18 Liquor Licence 1 Tenant I Monetary Default 23 Tenant Related Parties 15 Mortgage 26 Tenant's Insurance 16 Mortgagee 26 Tenant's Property 16 Necessary Major Repairs 11 Term 2 Notice 28 Termination Date 2 Notice Addresses 2 Transfer 19 Option Notice 20 -31- Sublease and Sale Agreement 133 of 162 14591 -001:102512 Landlord Date: Tenant Date: � - -9/ " / -32- Sublease and Sale Agreement MITAK, LLC, a Kansas limited liability company By Lindsay Olsen, Manager Pink Coyote Limited, an Alaska corporatio By Annalea Lott, I, A..� r . li' g I 134 of 162 141q]iC 102512 M�' DATE: Hi — 13 CITY OF KENAI " 1111age with a past — City with a future. " BACKGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT COMMITTEES AND NAME: -1A C `' . OA k f ,4 JAN 9, 8 6ECT RETURN TO: KENAI CITY CLERK 210 FIDALGO AVENUE KENAI, AK 99611 283 -7535, EXT. 231 FAX: 283 -5068 Resident of the City of Kenai? Uas HOW long? Residence Address ISO 7—o 1V orl 4t)A- j Mailing Address P. a. aox 2-1 -2-. - 11e::�AJq i Home Telephone No. 0-2-93 42.7.), Home Fax No. Business Telephone No Business Fax No. Email Address: 5!'a rtP r Q 4s A[ps Kn. NeT- May we include your contact information on our web page? ALL If not all, what information may we include? G1145 EMPLOYER: NAME OF SPOUSE: Job Title Past organizational memberships: 4S `A-P oy e— SE- a of C ,VMITTEES OR COMMISSIONS IN WHICH YOU ARE INTERESTED: / Eli ,4 i h I g f2Aoe L-1 /I n'. ':11' _ 1 WHY DO YOU WANT TO,BE INVOLVED WITH THIS 5770.06 01" 7hA- Kr7vxr Z09,ee4Aq WHAT BACKGROUND, EXPERIENCE, OR CREDENTIALS DO YOU POSSESS TO BRING TO THE RDARn_ 135 of 162 FOR KENAI LIBRARY COMMISSION KENAI COUNCIL CHAMBERS JUNE 4, 2013 7:00 P.M. CHAIR KATHY EAST, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Chair East called the meeting to order at 7:04 p.m. Roll was confirmed as follows: Commissioners present: Chair K. East, H. Curtis, S. Mattero, S. Bodin, M. Niichel Commissioners absent: E. Bryson, K. Knackstedt (excused) Staff /Council Liaison present: Library Director M. Joiner, Council Member M. Boyle A quorum was present. 2. AGENDA APPROVAL MOTION: Commissioner Curtis MOVED to approve the agenda and Commissioner Niichel SECONDED the motion. There were no objections. SO ORDERED. 3. APPROVAL OF MEETING SUMMARY — April 2, 2013 MOTION: Commissioner Mattero MOVED to approve the meeting summary of April 2 and Commissioner Bodin SECONDED the motion. There were no objections. SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD — None. 5. UNFINISHED BUSINESS a. FY2014 Budget Update — Library Director Joiner reported the library budget went through as presented except the out of Kenai fee was removed by the City Council. b. Meeting Schedule — Joiner reported the City Clerk and City Attorney had not finished their work on the commissions and committees, but would be bringing forward a request to change the library's schedule. MOTION: Commissioner Mattero MOVED to request changing the meeting schedule to quarterly months of February, May, August, and November. Commissioner Curtis SECONDED the motion. There were no objections. SO ORDERED. 136 of 162 6. NEW BUSINESS a. Outside Agencies "Hosting" Programs at the Library Commissioner Niichel requested the Imagination Library host story times at the library. Joiner reviewed the policy for the meeting rooms and stated the request would require more space than the library had and the library was limited by its policy. REPORTS a. Library Director — Joiner reported the library would receive a -rate funding for intemet services and she and her assistant would be attending the American Library Association conference in Chicago. b. Commission Chair — East reported she was glad everyone was there and participating. C. City Council Liaison Boyle reported there were no items pertaining to the Library. 8. NEXT MEETING ATTENDANCE NOTIFICATION —July 2, 2013 Joiner reported she would be requesting the July meeting be cancelled. 9. COMMISSION COMMENTS/QUESTIONS — None. 10. PERSONS NOT SCHEDULED TO BE HEARD — None. 11. INFORMATION a. Library Director's May 2013 Report b. Memorandum Regarding Video Games C. Friends of the Library Memorandum 12, ADJOURNMENT MOTION: Commissioner Mattero MOVED to adjourn and Commissioner Bodin SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at 7:30 p.m. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk 137 of 162 LIBRARY COMMISSION MEETING JUNE 4, 2013 PAGE 2 THIS PAGE IS INTENTIONALLY LEFT BLANK 138 of 162 CITY OF KENAI PLANNING & ZONING COMMISSION JUNE 12, 2013 — 7:00 P.M. CITY COUNCIL CHAMBERS CHAIR JEFF TWAIT, PRESIDING MINUTES CALL TO ORDER Chair Twait called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Chair Twait led those assembled in the Pledge of Allegiance. b. Roll Call Roll was confirmed as follows: Commissioners present: Chair J. Twait, B. Shiflea, H. Knackstedt, J. Amass, K. Peterson Commissioners absent: P. Bryson, C. Smith (both excused) Staff /Council Liaison present: Acting Planner N. Carver, Planning Assistant W. Anderson, Deputy City Clerk C. Hall A quorum was present. c. Agenda Approval Commissioner Knackstedt requested removal of 5 -c: PZ13 -28: Rezone. MOTION: Commissioner Knackstedt MOVED to approve the agenda as amended and Commissioner Shiflea SECONDED the motion. There were no objections. SO ORDERED. d. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Arness SECONDED the motion. There were no objections. SO ORDERED. e. *Excused Absences • Commissioner Bryson • Commissioner Smith Approved by 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 139 of 162 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 —May 22, 2013 Approved by consent agenda. 3. SCHEDULED PUBLIC COMMENT — None. 4. CONSIDERATION OF PLATS — None. 5. PUBLIC HEARINGS a. PZ13 -26 — An application for a Conditional Use Permit for an Assisted Living Facility for the property known as Tract 36, Killen Estates Subdivision No. 1 (707 North Forest Drive). Application submitted by Clint Hall, P.O. Box 2829, Kenai, Alaska. Acting Planner Carver reviewed the staff report included in the packet, noting this was phase II and the following criteria needed to be met: 1. The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district. 2. The value of the adjoining property and neighborhood will not be significantly impaired. 3. The proposed use is in harmony with the Comprehensive Plan. 4. Public services and facilities are adequate to serve the proposed use. 5. The proposed use will not be harmful to the public safety, health or welfare. 6. Any and all specific conditions deemed necessary by the commission to fulfill the above mentioned conditions should be met by the applicant. These may include, but are not limited to measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Carver recommended approval with the following requirement: 1. Facility be licensed by the State of Alaska and managed in compliance with State licensing requirements. MOTION: Commissioner Knackstedt MOVED to approve PZ13 -26 an application for a Conditional Use Permit for an Assisted Living Facility for the property known as Tract 36, Killen Estates Subdivision No. 1 (707 North Forest Drive). Application submitted by Clint Hall, P.O. Box 2829, Kenai, Alaska. Commissioner Arness SECONDED the motion. PLANNING AND ZONING COMMISSION MEETING JUNE 12, 2013 PAGE 2 140 of 162 Twait read the rules of public hearing and opened the meeting to public comment. There being no one wishing to speak, the public hearing was closed. VOTE: YEA: Twait, Shiflea, Knackstedt, Arness, Peterson NAY: MOTION PASSED UNANIMOUSLY. Twait read the 15 day appeal process procedure. b. PZ13 -27 —An application for a Conditional Use Permit for a temporary storage building for the property known as Lot 1, Block 4, Cook Inlet Industrial Air Park Subdivision (200 Trading Bay Road). Application submitted by Al Hull for A & K Enterprises Alaska, LLC, 5691 Silverado Way Unit G, Anchorage, Alaska. Carver reviewed the staff report included in the packet, noting the applicant needed to meet the following criteria: 1. The use is consistent with the purpose of this chapter and the purposes and intent of the zoning district. 2. The value of the adjoining property and neighborhood will not be significantly impaired. 3. The proposed use is in harmony with the Comprehensive Plan. 4. Public services and facilities are adequate to serve the proposed use. 5. The proposed use will not be harmful to the public safety, health or welfare. 6. Any and all specific conditions deemed necessary by the commission to fulfill the above mentioned conditions should be met by the applicant. These may include, but are not limited to measures relative to access, screening, site development, building design, operation of the use and other similar aspects related to the proposed use. Carver recommended approval with the following requirement: 1. Site obscuring fence along Trading Bay Road and Granite Point Street. 2. Meet Building Code requirements for its size, use and method of construction. 3. Comply with ten -foot (10') zoning and building code setback requirements. MOTION: Commissioner Peterson MOVED to approve PZ13 -27 an application for a Conditional Use Permit for a temporary storage building for the property known as Lot 1, Block 4, Cook Inlet Industrial Air Park Subdivision (200 Trading Bay Road). Application submitted by AI Hull for A & PLANNING AND ZONING COMMISSION MEETING JUNE 12, 2013 PAGE 3 141 of 162 K Enterprises Alaska, LLC, 5691 Silverado Way Unit G, Anchorage, Alaska. Commissioner Arness SECONDED the motion. Twait read the rules of public hearing and opened the meeting to public comment. Jim Dawson, 38365 Riverwood, Applicant — Mr. Dawson offered to answer any questions the commissioners had. General discussion occurred regarding life expectancy, foundation, complaints from neighbors. There being no one else wishing to speak, the public hearing was closed. VOTE: YEA: Twait, Shiflea, Knackstedt, Arness, Peterson NAY: MOTION PASSED UNANIMOUSLY. Twait read the 15 day appeal process procedure. c. PZ13 -28 — An application to Rezone 3730 & 3740 Minchumina Ave. from Rural Residential (RR) to General Commercial (CG). Application submitted by Douglas & Brenda Cofer, 6223 C Kenai Spur Highway, Kenai, Alaska. [Clerk's note: PZ13 -28 was removed at the beginning of the meeting at the request of the applicant.] 6. UNFINISHED BUSINESS a. PZ13 -16 —A resolution of the Kenai Planning & Zoning Commission recommending the Council of the City of Kenai rename Tustumena Street. Postponed from April 10, 2013 & May 8, 2013. [Clerk's Note: The resolution was postponed from the May 8 meeting. The motion to approve is on the floor.] Carver reviewed the staff report included in the packet. MOTION TO AMEND: Commissioner Knackstedt MOVED to amend Resolution No. PZ13 -16 by striking "is in the process of renaming three" and inserting "has renamed two" in the second whereas. Commissioner Shiflea SECONDED the motion. PLANNING AND ZONING COMMISSION MEETING JUNE 12, 2013 PAGE 4 142 of 162 VOTE ON AMENDMENT: YEA: Twait, Shiflea, Knackstedt, Amass, Peterson NAY: AMENDMENT PASSED UNANIMOUSLY. MOTION TO AMEND: Commissioner Shiflea MOVED to amend Resolution No. PZ13 -16 by inserting the name "mudhen° under recommended official name in the fifth whereas. Commissioner Amess SECONDED the motion. VOTE ON AMENDMENT: YEA: Twait, Shiflea, Amass, Peterson NAY: Knackstedt AMENDMENT PASSED. VOTE ON MAIN MOTION AS AMENDED: YEA: Twait, Shiflea, Arness, Peterson NAY: Knackstedt AMENDMENT PASSED. 7. NEW BUSINESS a. Discussion /Recommendation — Lease Amendment — James H. Doyle dba Weaver Brothers, Inc., Tract A, Gusty Subdivision No. 3 — 410 Coral Street (KPB# 04327021) and Tract B, Gusty Subdivision No. 6 Amended — 420 Coral Street (KPB# 04327035). Carver reviewed the staff report included in the packet, noting this was a lease renewal, not a lease amendment. Commissioner Shiflea MOVED to approve the Lease Amendment —James H. Doyle dba Weaver Brothers, Inc., Tract A, Gusty Subdivision No. 3 — 410 Coral Street (KPB# 04327021) and Tract B, Gusty Subdivision No. 6 Amended — 420 Coral Street (KPB# 04327035). Commissioner Peterson SECONDED the motion. VOTE: PLANNING AND ZONING COMMISSION MEETING JUNE 12, 2013 PAGE 5 143 of 162 YEA: Twait, Shiflea, Knackstedt, Amass, Peterson NAY: MOTION PASSED UNANIMOUSLY. 8. PENDING ITEMS – None. 9. REPORTS a. City Council – No report. b. Borough Planning – No report. c. Administration – Carver introduced Willie Anderson as her Planning Assistant and noted a work session regarding rewriting subdivision codes would be scheduled for a future date. 10. PERSONS PRESENT NOT SCHEDULED Edie Handsaker, 612 Westwood – Ms. Handsaker inquired about the assisted living facility on North Forest regarding timeline. Twait noted this was Phase II, and Phases III and IV would be market driven. 11. INFORMATION ITEMS a. PZ13 -24 – Landscape /Site Plan – Dennis Merkes, Merkes Builders, LLC for Mark Halpin, 210 Main Street Loop Road, Kenai, Alaska. b. PZ13 -29 – Landscape /Site Plan – Charis Place Assisted Living Facility Phase 2 – Tract 36, Killen Estates Subdivision No. 1 (707 North Forest Drive). Application submitted by Clint Hall, P.O. Box 2829, Kenai, Alaska. 12. NEXT MEETING ATTENDANCE NOTIFICATION – June 26, 2013 a. Excused Absences • Commissioner Bryson • Commissioner Smith No other commissioners requested an excused absence from the June 26 meeting. 13. COMMISSION COMMENTS & QUESTIONS —None. PLANNING AND ZONING COMMISSION MEETING JUNE 12, 2013 PAGE 6 144 of 162 14. ADJOURNMENT There being no further business to come before the Commission, the meeting was adjourned at 7:30 p.m. Minutes prepared and submitted by: Corene Hall, CIVIC, Deputy City Clerk PLANNING AND ZONING COMMISSION MEETING JUNE 12, 2013 PAGE 7 145 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 146 of 162 MINI -GRANT STEERING COMMISSION CLERK'S CONFERENCE ROOM CITY HALL FRIDAY, JUNE 7, 2013 3 :00 P.M. MAYOR PAT PORTER, PRESIDING MEETING SUMMARY CALL TO ORDER & ROLL CALL Mayor Porter called the meeting to order at 3:01 p.m. Roll was confirmed as follows: Members present: Chair P. Porter, J. Beeson, J. Beech, P. Carty Members absent: T. Wisniewski (excused) A quorum was present. 2. AGENDA APPROVAL MOTION: Member Beeson MOVED to approve the agenda and Member Beech SECONDED the motion. There were no objections. SO ORDERED. 3. APPROVAL OF MEETING SUMMARY - April 25, 2013 MOTION: Member Beeson MOVED to approve the meeting summary of April 25, 2013 and Member Beech SECONDED the motion. There were no objections. SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD - None. 5. UNFINISHED BUSINESS- None. 6. NEW BUSINESS a. Review of Mini -Grant Applications for Award o Kenai Soil & Water Conservation District - Raising Local Food Awareness Among Central Peninsula Consumers MOTION: Member Carty MOVED to approve the application from Kenai Soil & Water Conservation District and Member Beeson SECONDED the motion. VOTE: YEA: Carty, Beech, Beeson, Porter NAY: 147 of 162 MOTION PASSED UNANIMOUSLY. Hannah Nusbaum — Tuition Fundraising MOTION: Member Beech MOVED to approve the application from Hannah Nusbaum and Member Beeson SECONDED the motion. General comments noted the applicant's program would not benefit the community. VOTE: YEA: NAY: Carty, Beech, Beeson, Porter MOTION FAILED. 7. ANNOUNCEMENTS — None. 8. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 3:15 P.M. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk MINI -GRANT STEERING COMMITTEE MEETING JUNE 7, 2013 PAGE 2 148 of 162 OW FINANCE DEPARTMENT MID -MONTH REPORT To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: June 11, 2013 Re: Monthly Report June 2013 With the passage of the FY14 Budget at the May 15th Council Meeting the department's focus has switched to closing of FY13 and completion of the City's Comprehensive Annual Financial Report. This process includes closing of the FY13 financial records, fiscal year end grant reporting and finally financial statement preparation. The annual audit is scheduled for the week of October Ph Much time has been spent preparing for conversion from a monthly payroll cycle to a biweekly payroll cycle for the City. This conversion will include a visit from the City's software provider, Caselle, early in July. Transition from AETNA to United Health Care as the City's employee health care provider is in full swing and conversion that is scheduled for July 1, 2013 is on track. The 2013 Personal Use Fishery is quickly approaching and we will be working with the Park's Department to train our seasonal help to work in the dipnet shacks. This training will include training on a newly developed cashiering system that will provide better cash controls and will allow customers to pay by credit card. The IT Manager has been very busy with deployment of the City's new Voice over internet protocol (VOIP) phone system. 149 of 162 - ^_ PUBLIC WORKS DIRECTOR • CAPITAL PROJECTS MANAGER ra h of JUNE 2013 MID -MONTH REPORT TO: Rick Koch, City Manager FROM: Sean Wedemeyer Public Works Director /Capital Projects Manager DATE: June 11, 2013 SUBJECT: Mid - Month Report; Public Works 1 Capital Projects Public Works: • Streets Operator 1 position filled by Allen Judd. • Lead Building Maintenance Technician position filled by Joseph Beverly. • Streets /Airport Operator 1 recruitment in progress. • Water Sewer Operator recruitment in progress. • Temporary Dock Worker recruitment in progress. • Fuel Furnish and Deliver recommended for award to Crowley. • APDES permit renewal application in progress. • Dock and ramp floats installed in May. • Public Service Announcement issued regarding Water Conservation. Status of Projects: • New Maintenance Shop Design — Award contingent upon FAA grant funds. • James Street / Scenic Overlook Paving — In closeout. • Municipal Park Improvements — In construction. • Kenai Industrial Park — In construction. • Water Treatment Facility — Closeout of punch list in progress. • Airport Way & Main Street Asphalt Upgrades — In closeout. • Central Heights Roadway Improvements — Anticipated start in late June / early July. • Vintage Point and Senior Center Siding — In design. Target bid advertisement mid June. • City Hall and Senior Center heated sidewalks — Consultant proposal anticipated mid June. • Police Dept. Parking Lot Improvements — Rebid mid June. • Citywide Asphalt and Concrete Improvements — Rebid mid June. • Dipnet Shack Permanent Power — In construction. • Public Safety Building Soffit Repair — Anticipated start in late June / early July. • Senior Center Solarium Ceiling Repair — Awarded. Waiting for construction schedule. • Senior Center Wallpaper — In closeout. • Lift Station Radio Testing — In progress. • Flight Service Station Upgrades — Design in progress. • Meeks Trail Repair — Construction scheduled July 1 -9. • Airport Tree Obstruction Removal — Bid opening May 29. Anticipate award July 3. • Kenai Airport Airfield Marking - Target bid advertisement early July. 150 of 162 KENAI SENIOR CENTER JUNE 2013 REPORT ttie cr o f} f KENAISKA To: Rick Koch, City Manager From: Rachael S. Craig, Senior Center Director Date: June 10, 2013 Total May Meal Count 2013 Served: Total Congregate Meals Served: 1,098 Total Home Meals Served: 2,600 Total May Meal Count 2012 Served: Total Congregate Meals Served: 1,102 Total Home Meals Served: 1,722 There were no rentals in the month of May. Volunteers provided 425 service hours. Administrative Assistant assisted 17 seniors with appointments concerning senior issues. Director presented senior center budget and program to United Way. With the warm weather, seniors are coming out for the wellness activities. We have aerobic exercises at 9a.m. Monday, Wednesday and Friday. Tai Chi meets two days a week 8 seniors have been participating. Zumba Dancing is being held twice a week in the middle of the afternoon. This class is an upbeat instruction for chair -bound or limited mobility participants. Wada Yoga has been held twice a week with 4 seniors present. Yoga class has drawn in the younger aged senior and the attendees have commented they are becoming more flexible and learning more about the importance of proper breathing techniques. Line Dancing is meeting three times a week at the rec. center. The conversational Spanish class is going strong. We have anywhere from 4 to 7 participants once a week being taught by volunteer Lateshia Tsosie. Mother's Day was celebrated by an "apron" parade, and the moms were served by the men at the noon luncheon. 61 seniors participated. Kenai Senior Center and Frontier Community Service partnered, received funding for the 9`h annual senior conference held on May 16 and 17`h. 80 people participated in the conference at the Sports Center. 10 seniors participated in the public forum at the senior center on the 15`h of May from 6 — 8p.m. Mary Sharp andRachel Kail were the presenters. This is the second time they have presented a Dementia workshop on the peninsula. Everyone that attended came away with great information and hands on material that could be implemented immediately. May 17, we held a "Back to 1953" Dance. Bull Don and the Moose Nuggets played music, 50 seniors enjoyed the evening with dancing, `potluck finger foods," and door prizes. Everyone is looking forward to the next quarterly dance! 151 of 162 {e. �� the 41of XZ KENO AL SKA FIRE DEPARTMENT MID -MONTH REPORT June 2013 We are finally working in the summer heat and taking on summer projects here at the Fire Department. The run volume for the year has been increasing and we are currently 4% ahead of last year at this time and we anticipate it to continue to grow over the coming weeks. It is this time of year when we start to think about Wild land fires. We continue to work closely with State Forestry as they monitor the current and potential weather conditions. As I write this, we are under a burn suspension. This happens every year about this time as the summer starts to take hold. We will continue to hand out permits but residents understand when it comes to burn suspensions. In preparation for the hot weather and the rising use of water by residents, we had finished our hydrant flows early this year and will look to go out again in the fall to complete the program. Last month we were asked to present to the 8th grade outdoor education class at the Kenai Middle School a CPR course. It is always a great opportunity to get back and work with kids and we hope they have a safe summer. At the end of May we completed the mandatory live burn training for our FAA certification for the airport. All employees are required to complete live fire training and operate the ARFF vehicles. We completed this training at the Beacon Training Center. The new Seasonal Enforcement Officers are on staff at the Police Department and part of their training is again CPR and AED training. Firefighter Pete Coots was asked to give this training to the recruits and did an outstanding job. Thanks to Pete for a job well done. We helped the State of Alaska Division of Homeland Security with their vulnerability assessment of some critical infrastructure within the City of Kenai. These surveys were completed painlessly and thanks to all the department heads in the City that worked with us for scheduling and access to their facilities. Battalion Chief Prior attended an advanced rope rescue class put on by Tesoro. This class will certify Trim as an instructor and will allow him to teach within the department these types of skills. We anticipate a busy summer with the warmer weather will come the tourists and weekend people from outlying areas. We are continuing to stay involved with Safe Kids and doing car seat checks at the Fire Station. Kenai Peninsula College is still sending students to our station for their Paramedic ride along program. 152 of 162 icipal June 2013 ' Airport Manager's Report Airport Improvement Program: Master Plan — The Phase II report containing Facilities Requirements, Alternatives, and Environmental Conditions is ready for review by the Technical Advisory Committee. The report will be reviewed on June 20th by the Committee. Tree Obstruction Clearing Proiect: The bid opening was on May 29th with one bidder. Work is scheduled to start after July 15th. Airfield Marking — Plans and specs are complete and the City's front -end bid documents are being prepared. The project will be advertised and bid with painting to start this summer. Wildlife Hazard Assessment - Waiting for final FAA review. After review the Wildlife Management Plan will be developed based on the assessment with the recommendations for habitat modification, management needs, and population management strategies to minimize wildlife hazards on the airport. In- house: Spring Clean Up — Crew is continuing with spring cleanup and beautification projects around the terminal. Security Vulnerability Assessment — On June 5 & 6th, The Airport Manager and Operations Supervisor spent several hours with Homeland Security personnel working with the Kenai Peninsula Borough to identify gaps in the current level of infrastructure protection and discuss methods for filling those gaps. This process is designed to protect a community's continuity of operations, critical assets, population, and visitors in the event of a catastrophic disaster. Annual FAA /Airport Minority & Advisory Conference- Airport Manager and Assistant will be attending the 29th AMAC conference June 8 - June 12 in San Diego. 2013 -006 153 of 162 KENAI COMMUNITY LIBRARY MID -MONTH REPORT \\ tke city a/ JUNE 2013 May Circulation Figures Adult Fiction 1,782 Internet Access 1,380 Adult Non- Fiction 1,558 Downloadable Audio 482 Young Adult Fiction 408 Video 0 Periodicals 220 Room Booking 138 Juvenile Fiction 737 Music 132 Juvenile Non - Fiction 328 DVDs 2,760 Easy Fiction 1,432 Audio books 267 Easy Non - Fiction 203 Miscellaneous 245 Interlibrary Loan 33 Computer Programs 1 Total Print 6,701 Total Non -Print 4,923 Total Circulation 11,624 In -House circulation 377 Library Door Count....... 8,450 Downloadable Audio 482 Freegal Music 150 Downloadable EBooks 390 Circulation of electronic material increased 32% over circulation of those items in May 2012. In May we had 3 volunteers who worked putting in a total of almost 51 hours. There were 12 Children's programs with 383 total in attendance and 9 adult programs with 37 participants. Kyrstin went to Head Start and read to 60 children. Four school groups came in with a total of 365 students. Inter Library Loan logged 27 orders with 37 items received, 46 returned and 44 items lent by our library to other institutions. We received notification that we will again receive reimbursement for E -Rate on our Internet service I was finally able to submit an updated Tier 1 application to the Rasmuson Foundation for a variety of items including furniture and computing items. We were considerably delayed on this when the OWL project continued to give us equipment that we were originally asking the Rasmuson Foundation to fund. One of our part -time (14hour /week) staff members is moving to Idaho. We recruited to fill her position and hired someone in mid -May. Library Cards Issued May ILL MAY Income 0 Fines $1,334.82 Xerox 182.50 Lost/Damaged 176.88 Test Proctoring Fee 120.00 Printing 437.00 Other 30.00 Total income $2,281.20 Library Cards Issued May ILL 7 Internet Only 0 Kasilof 8 Kenai 49 Nikiski 15 Non Resident 16 Soldotna 21 Sterling 5 Other Peninsula 20 Organization & Other 0 154 cif W 141 POLICE DEPARTMENT MID -MONTH REPORT May 2013 the KENAL ALASKA TO: Rick Koch — City Manager FROM: Gus Sandahl — Police Chief f 9 5 DATE: 6/12/13 SUBJECT: Police & Communications Department Activity — Month of May 2013 Police handled 725 calls for service (up from 693 in May 2012). The Communications Center received 253 emergency 9 -1 -1 calls (196 from cell phones). Officers made 73 arrests and wrote X64 reports. Traffic enforcement resulted in 239 warnings, 56 speeding tickets, 13 seatbelt tickets, 30 citations for equipment violations, and 46 citations for "other" traffic violations. There were 8 DUI arrests (3 felony). Police investigated 4 vehicle crashes. One of the crashes was DUI - related, and none of the crashes involved moose. On May 10, Sgt. McBride attended the annual law enforcement memorial service in Anchorage. On May 14, the Communications Supervisor attended a one day seminar on enhanced 911 technologies in Anchorage. On May 15, Dispatcher Stacey Day conducted 911 for Kids training for a local Girl Scout troop. During the week of May 20, several officers attended the state crime conference which was held in Soldotna this year. The conference provides a week of law enforcement training. In the schools, SRO Prins had a busy month of May. He handled several school - related calls for service; attended graduations at KCHS and KAHS; taught five alcohol classes for KCHS (utilizing alcohol impairment simulation goggles and a golf cart); taught bike safety classes at Mt. View / Kaleidoscope, and had two bike rodeo obstacle courses at Mt View / Kaleidoscope. He also made one Digital Media presentation for some parents of Mt View students. Finally, he attended a site council meeting at KCHS. SRO Prins enjoyed a busy school year and looks forward to returning to the schools this fall for his third year as School Resource Officer. The Kenai Police Department continued to maintain an elevated presence (in addition to SRO presence) in Kenai schools from January to May. 155 of 162 KENAL ALASKA ANIMAL CONTROL MID -MONTH REPORT May 2013 D.O.A. 12 6 EUTHANIZED 25 23 Dogs 2013 2012 Dogs 2013 2012 STRAY 57 59 ADOPTED 59 67 Dogs 39 35 Dogs 27 46 Cats 15 21 Cats 29 21 Other Species 3 3 Other Species 3 0 RELEASED BY OWNER 45 51 CLAIMED 17 18 Dogs 25 34 Dogs 16 14 Cats 20 17 Cats 1 2 Other Species 0 0 Other Species 0 2 D.O.A. 12 6 EUTHANIZED 25 23 Dogs 10 1 Dogs 21 9 Cats 2 4 Cats 4 14 Other Species 1 1 Other Species 0 0 TOTAL ANIMALS 114 116 Other Disposition 1 2 Known Borough Animals 43 53 Field Investigations 94 75 Total Dogs 74 70 Total Phone Calls 616 556 Total Cats 37 42 Kennel Permits 0 0 Total Other Species 3 4 Animal Control Citations 10 4 Community Involvement Projects: 20 cats and 6 dogs Transferred via ERA Aviation to no -kill shelters in Anchorage 6 cats Transferred to Petco via The Extended Life Sanctuary. 156 of 162 :..dl�F:��i . PARKS & RECREATION MID -MONTH REPORT June 2013 The first week of June marked the arrival of our temporary summer maintenance workers. The week comprised mostly of job introduction, training and prepping lawn areas for mowing. Most all other seasonal preparation to garden areas, parks, and ball fields were accomplished in May. The community gardens were expanded to a total of 31 gardens plots and 9 raised beds were added. To date we have a total of 25 plots sold and a few raised beds. Volunteer plant day occurred on Saturday, June 8th. A handful of volunteers assisted with the planting of beds in LH Memorial Park, Visitors Center, Re -Max bed, Fire Department, Airport Triangle, and miscellaneous planters along the Spur Hwy. Connie's Flowers have been wrapping up the planting of the circle planters. Boxes will go out the week of June 17th. The City is currently in a water conservation mode and will cause a delay in our fertilizing of turf areas until we get some moisture. Staff spent 3 days spraying for dandelions and will continue again when the wind speed is suitable. The carnival was a big success with no issues reported to the department. Golden Wheel Amusements made a sizable donation to the City for use of the Parkstrip. Below is a partial list of some maintenance accomplishments since first of June: • Installed new "Kids Don't Float" sign at Daubenspeck. • Clay bricks added to bullpens at Kenai Little League Fields; all ball fields leveled. • Street banners installed. • Sand & debris removed off turf areas. • New dahlia bed installed at the Airport Triangle. • White marble rock installed at the Airport Triangle. • Cleared remaining path for trails around Daubenspeck Park and removed several large stumps from last season's efforts. • Replaced drinking fountain at Parkstrip. • Installed speed limit signs on north beach. • Repaired fencing caused from winter ice on north beach. • Weed control applied in several gravel pathway areas, flowerbeds and fence lines. • Removed several tree protective cages. • Installed two memorial plaques at LH Memorial Park. 157 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 158 of 162 ) y 00 0 a 4 a ++ a a+ a a C4 , - - g < < § / ( ± ( U - il ; \ _ ( § q 2 \ 0 ) ) j / § W W } cL } \ \ \ \ « o m m(\ E}» S S m\ § @ q Z) / ) § LU $ j } m ® ( / ] ) f § § \ ƒ d § E m= 2$ 8» D% k d§ k ) ) R ) ? ® < § » < _\ § ) 9 < \ ) ) ) § } - @ \ { q } § / ) \ \ ƒ 9 ¢ 7 § \ ° ( CD § = / < §& [ 2 2_ § W m m m$} k 7 j /§)} m m§) § a£ o / ) § ° m m � ° o m < o & g 2 22 F � k § w 0 2 \ s $ a ) t [ / j .5E « - u ) m - » } / 6 G < _ § ( - m § o 2 3 8 w } \ = k » ( § ) w § U ; ! ! § < * o = ( a z ] < \ 159 of 162 THIS PAGE IS INTENTIONALLY LEFT BLANK 160 of 162 _ a Alaska f 2013 Gaming Permit Application ' Organization Information r Validation k 86 Date Stamp - " i.. 2 Federal EIN of our knowledge and belief, it Is true and complete. We understand that any false statement made on the application or any attachments If renewin ,enter gaming permit it Phone Number Primary Me er In Cha signature 76'7 . /- State Organization Name Webstte Address �. Printed re / %• rlffi,AIFT- ail' g Address I was taken. 41.7 4/ City State Zip Code Y %% t� �j II F�tt1R AK ntity Type (check one) Printed Name Organization Type (check one) for definitions see AS 05.15.690 and 15 AAC 160.995. P Corporation ❑ Charitable m Fraternal ❑ Police or fire department ❑ Partnership ❑ Civic or service ❑ Labor ❑ Political ❑ Association ❑ Dog mushers' association ❑ Municipality ❑ Religious ❑ Educational ❑ Nonprofit trade association ❑ Veterans ❑ Fishing derby association ❑ Outboard motor association ❑ IRA /Native Village fa.Yes ❑ No Does the organization have 26 or more members, as defined in your articles of ineerperatim or bylaws, who arc Alaska residents? Members in Charge of Games Members in charge must be natural persons and active members of the organization or employees of the municipality and designated by the organization. Members in charge may not be licensed as an operator, be a registered pull -tab vendor or an employee of a vendor for this organization. If more than one aftemate, attach a separate sheet. r ie . ,cumber _ AK 1.17=7 taken: ....I "WIM IV W -477r. — ;the atemate member Legal Questions These questions must be answered, If you answer Yes to either f question, see instructions. ❑Yes ® No Does any member of management or any person who Yes INN. Has any member of management or any person who is is responsible for gaining activities have a prohibited responsible for gaming activities ever been convicted of conflict of interest as defined by 15 AAC 160.9547 a felony, extortion, or a violation of a law or ordinance of this state, or anotherjuhsdiction, that is a crime Involving theft or dishonesty, or a violation of gambling laws? We declare, under penalty of unswom falsification, that we have examined this application, including any attachments, and that, to the bes of our knowledge and belief, it Is true and complete. We understand that any false statement made on the application or any attachments punishable by law. By our signatures below we, the primary member, the alternate member, and if applicable, the manager of games, agree t Mobile Number Primary Me er In Cha signature 76'7 . /- State Zip Code AK Printed re / ad the test? Permit 4 under which test Yes rI Nn I was taken. 41.7 4/ Legal Questions These questions must be answered, If you answer Yes to either f question, see instructions. ❑Yes ® No Does any member of management or any person who Yes INN. Has any member of management or any person who is is responsible for gaining activities have a prohibited responsible for gaming activities ever been convicted of conflict of interest as defined by 15 AAC 160.9547 a felony, extortion, or a violation of a law or ordinance of this state, or anotherjuhsdiction, that is a crime Involving theft or dishonesty, or a violation of gambling laws? We declare, under penalty of unswom falsification, that we have examined this application, including any attachments, and that, to the bes of our knowledge and belief, it Is true and complete. We understand that any false statement made on the application or any attachments punishable by law. By our signatures below we, the primary member, the alternate member, and if applicable, the manager of games, agree t allow the Department of Revenue to review any criminal history we may have, in accordance with 15 AAC 160.994. Primary Me er In Cha signature - Primed Name D .. Preside t O at O$kx ' ature (see instructions) Printed re / Date . Alter m I h e's na Printed Name 1, 1 Z_-11 / ? Manager of Games Signature 77 Printed Name Date 826 One copy of the completed application must be sent to the nearest municipality or borough. See instructions for mandatory attachments. Pay online with OTIS at www.tax.alaska.gov or make check payable to State of Alaska. New applicants must pay by check, Permit Fee The permit fee is based on the 2012 estimated nrnss rervmis Check the anormnale box ❑ New applicant $20 ❑ $0 - $20,000 $20 ❑ $20,001 - $100,000 $50 W $100,001 or more $100 Mail to: Alaska Department of Revenue, PO Box 110420, Juneau AK $9811 -0420 0405 -826 Rev 04/15/13 - page 1 161 of 162 2013 Alaska Gaming Permit Application Gamin�Pergliya�' -/ I anon Name ICJ'/ /.�zC l ONyx: ter'' 1124)o 5a Facility -Based Gamed' (self - directed) If more than two facilities, a ach a separate sheet. 826 Facility Namejrnpd9,`— Physic al Address City State Zi Code I / Z ' to i %dJrat d r2 r r AK . acilily Type ( eck one) Game Type (check all that apply) $Owned El Leased ❑Donated ❑Bingo FRafge arp Pull-tabs ❑ Animal classic (chicken)* ❑Animal classic (rat race)' ❑ Special draw raffle ID A/ Calcutta pool,- Facility Name Physical Address Cily State Zip Code 'iw , i, ''" asp 'r rw - ar" ' - r{j( AK ''(°� Facility Type (check one) Game Type (check all that apply) Owned ❑ Leased ❑ Donated Bingo ❑ Re Me i6 Pull -tabs ❑Animal classic (chicken)' El Animal classic ra rat mm )l ( ) E3 Special draw ralge " AK ❑ Calcutta pool" Area -Based Games If more than two areas. attach a sebarate sheet. 'restricted name Nee "sea in MmnRnna for mandafnm afranhmenh Area //n Game type (check all that apply) Classic/ ( a�6 E] Raffle ❑ Contest of skill ❑ Fish derby ❑ Dog musher' contest ❑ other (specify) Area Game type (check afl that apply) Classic) ❑ Rafle El Contest of skill ❑Fish derby ❑ Dog musher' contest ❑ Other (specify) mar ragwi Vr Vamv* Kequireo only Tor selr -0veaed pun-tabs and bingo. Manager First Name ~� MI L Man? .e W t Name ( I/q/vkoc.l4 Soclal Security Number Email Daytime Phone Number x .3 G( ef Home Mailing Address Mobile Phone 3r Z�ZvILArF /Z AC(I AK 1W-3030 City State Zip Coded Has the managerof games passed the test? Permit # under which test taken A/ / ! G *Yes 0 N 1 15-50 Vendor Information Attach 2012 vendor registration forms) and feels) for each vendor listed below. Bar or Liquo tore Name Physical Address City State Zip Code City Stale Zip Code AK City �'��, Bar or Liquor Store Name f 4wai Address City State Zip Code AK Bar or Liquor Store Name Physical Address City State Zip Code AK Bar or Liquor Store Name Physical Address State Zip Code AK Bar or Liquor Store Name Physical Address City Zip Code AK Operator Information Designate operator who will conduct activities on the organization's behall. Attach sioned ooeratina comractfs). If more than one onerator attach a senamte shave Operator # Operator Facility Name Game Type(s) Physical Address -- City Stale Zip Code Multiple - Beneficiary Permittee Information (MBP) �- Designate the MBP with which the organization has sinned a oartneminio or Joint venture aoraement. MBP Permit # am '_ Facility Name Game Type(s) (/1.' %i'. 1SS Physical Address City �'��, State Zip Code Dedicatie 826 n of Net Proceeds Describe in detail how the organization will use the net proceeds from ganlzg activities. q N• �r ✓I.r J1aPJ� /LirV„ l.. h: ;,;1 /L Q� ('�`l �, J r.. -0rN:I .' %7Si3 !• ✓ zJ f% iilrl aL j lrjyC/�,7 / ���:a %/s''it.'rkiJ` r)zf'�Lr�. (/1.' %i'. 1SS 162 of 162 0405 -826 Rev 04!15113 - page 2 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE JUNE 19, 2013 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and /or Resolution(s) at the above - referenced meeting. 1. Substitute Ordinance No. 2706 -2013 — Accepting and Appropriating Grants in the Amount of $461,540 from the Federal Aviation Administration and $15,384 from the State of Alaska in the Airport Improvement Capital Project Fund and Appropriating $15,385 in the Airport and Airport Improvements Capital Project Fund, All for the Obstruction Tree Removal Project. 2. Ordinance No. 2707 -2013 — Accepting and Appropriating a Grant in the Amount of $90,000 from the State of Alaska for the Public Safety Capital Project Fund. 3. Ordinance No. 2708 -2013 — Accepting and Appropriating a Grant in the Amount of $2,500,000 from the State of Alaska for the Water and Sewer Capital Project Fund. 4. Ordinance No. 2709 -2013 — Accepting and Appropriating a Grant in the Amount of $110,000 from the State of Alaska for the Public Safety Capital Project Fund. 5. Ordinance No. 2710 -2013 — Accepting and Appropriating a Grant in the Amount of $150,000 from the State of Alaska for the Personal Use Fishery Capital Project Fund. 6. Resolution No. 2013 -39 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Repealing Section 9 -4, Pardons, Paroles and Communications, of the Charter of the City of Kenai to Remove the Power of the Mayor to Pardon or Parole Persons Convicted of Violating City Charter or Ordinance and to Commute Sentences. 7. Resolution No. 2013 -40 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2 -14. Ordinances: Adoption by Reference, of the Charter of the City of Kenai to Remove References to Milk and Milk Products. 8. Resolution No. 2013 -44 -- Authorizing the City Manager to Renew the City's Insurance Coverage with Alaska Public Entity Insurance (APEI) to Commence July 1, 2013 and End June 30, 2014. 9. Resolution No. 2013 -45 — Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes Adopted During the Fy2014 Budget Process to Increase Monthly Rental Rates at Vintage Pointe, for New Rental Agreements and Make Housekeeping Changes. 10. Resolution No. 2013 -46 — Awarding a Contract to CPD ALASKA, LLC, for Furnishing and Delivering of Diesel Fuel. 11. Resolution No. 2013 -47 — Approving the Purchase of Two Police Vehicles Through State of Alaska Equipment Fleet Contract Pricing at a Total Cost of $57,666. Copies of the ordinances and /or resolutions are available in the Office of the Kenai City Clerk. Please be advised, subject to legal limitations, ordinances and /or resolutions may have been amended by the Council prior to adoption without further public notice. Sa ra odigh, C, City Clerk Pos : June 20, 2013 PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA ss: Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Council Agenda PO #99490 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: June 17, 2013 SUBSCRIBED AND SWORN to me before t s Q 17th ((�day of June 2013 l a �,k 11SC.V NOTARY PUBLIC in favor for the PUBLIC in favor for the State of Alaska. My. Commission expires 27- Aug -16 RUSS�l NOTARY PUBLIC Q y OF Ati REECEIVED ..''a 09 2013 Kenai City Clerk's Off c l 1:. AGENDA KENAI CITY COUNCIL— REGULAR MEETING JUNE 19, 2013 -7:00 P.M. KENAI CITY COUNCIL CHAMBERS A. CALL TO ORDER B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (Jul minutes aggregated) D. PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker; thirty (30) minutes aggregated) 1. Ordinance No. 2704 -2013 — Amending KMC 13.40.040 to Provide for a Seasonal Speed Limit of Twenty (20) Miles Per Hour While Driving Motorized Vehicles on a Certain Portion of the North Shore Public Beach. 2. Ordinance No. 2706 -2013 — Accepting and Appropriating Grants in the Amount of $375,000 from the Federal Aviation Administration and $12,500 from the State of Alaska in the Airport Improvement Capital Project Fund and Appropriating $12,500 in the Airport and Airport Improvements Capital Project Fund, All for the Obstruction Tree Removal Project, 3. Ordinance No. 2707 -2013 — Accepting and Appropriating a Grant in the Amount of $90,000 from the State of Alaska for the Public Safety Capital Project Fund. 4. Ordinance No. 2708 -2013 — Accepting and Appropriating a Grant in the Amount of $2,500,000 from the State of Alaska for the Water and Sewer Capital Project Fund. 5. Ordinance No. 2709 -2013 — Accepting and Appropriating a Grant in the Amount of $110,000 from the State of Alaska for the Public Safety Capital Project Fund. 6. Ordinance No. 2710 -2013 — Accepting and Appropriating a Grant in the Amount of $150,000 from the State of Alaska for the Personal Use Fishery Capital Project Fund. 7. Resolution No. 2013.39 — A Resolution of the Council of the City, of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Repealing Section 9-4, Pardons, Paroles and Communications, of the Charter of the City of Kenai to Remove the Power of the Mayor to Pardon or Parole Persons Convicted of Violating City Charter or Ordinance and to Commute Sentences. 8. Resolution No. 201340 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2 -14. Ordinances: Adoption by Reference, of the Charter of the City of Kenai to Remove References to Milk and Milk Products. 9. Resolution No. 2013 -41 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Article 10, Elections, of the Charter of the City of Kenai to Provide Designated Seats for Each Council Position and Allow Qualified Voters to Vote in an Election for a Candidate for Each Seat. 10. Resolution No. 2013 -42 — A Resolution of the Council of the City of Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 2 -6. Council: Meetings, of the Charter of the City of Kenai to Allow for a Reduced Number of Required Council Meetings and to Provide a Means to Cancel Council Meetings. 11. Resolution No. 2013.43 — A Resolution of the Council of the City of PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA ss: Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Council Agenda PO #99490 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: June 17, 2013 RUJIM, i SUBSCRIBED AND SWORN to me before s 17th (day of � June 2013 Al o K.l I�ARSC_Q V NOTARY PUBLIC in favor for the State of Alaska. My. Commission expires 27-Aug -16 Russ�l t4OTARy --+-+4— (n PUBLIC Q OF P-0 RECEIVED 0'j 2013 Kenai City Clerk's Office .�, AGENDA KENAI CITY COUNCIL- REGULAR MEETING 10y"'a JUNE 19,2013-7:00 P.M. KENAI CITY COUNCII, rN AMRroe Kenai, Alaska, Providing for the Submission to the Qualified Voters of the City of Kenai, at the Regular Election of October 1, 2013, the Question of Amending Section 10 -3. Filing, to Remove the Requirement that Candidates for Mayor and Council Provide a Petition Signed by Twenty or More Registered Voters. 12. Resolution No. 2013 -44 -- Authorizing the City Manager to Renew the City's Insurance Coverage with Alaska Public Entity Insurance (APEI) to Commence July 1, 2013 and End June 30, 2014. 13. Resolution No. 2013 -45 - Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes Adopted During the Fy20U Budget Process to Increase Monthly Rental Rates at Vintage Pointe, for New Rental Agreements and Make Housekeeping Changes. 14. Resolution No. 2013.46 - Awarding a Contact to CPD ALASKA, LLC, for Furnishing and Delivering of Diesel Fuel. 15. Resolution Veh Vehicles Through State of Alaska Equipment Purchase Fle t Contract Pricing at a Total Cost of $57,666. E. MINUTES 1. 'Regular Meeting of June 5, 2013 F. _UNFINISHED BUS-114-EMS G. NEW BUSINESS 1. Action/Approval - Bills to be Ratified 2. Action /Approval - Purchase Orders Exceeding $15,000 3. •ActionlApproval - First Extension to Agreement for Janitorial Services at the Kenai Visitors and Cultural Center between the City of Kenai and Integrity Janitorial, LLC. 4 Services Aatt City Hall between the City of Kenai and Janitorial Janitorial, LLC. 5 Services attpthe Kenai Police Department between the City of Kenai. and Integrity Janitorial, LLC. 6. •ActionlApproval - First Extension to Agreement for Janitorial Services at the Kenai Community Library between the City of Kenai and Cleanway Janitorial Services. 7. •ActionlApproval - Fiat Extension to Agreement for Janitorial Services at the Kenai Municipal Airport between the City of Kenai and Integrity Janitorial, LLC 6. ActionlApproval - Consent to Sublease and Sale Agreement between the City of Kenai, MITAK, LLC and Pink Coyote Limited for Lot 1 and Lot 1 -A Aleyeska Subdivision. H. COMMISSION /COMMITTEE REPORTS I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS K. AnnlnoNAL PUBLIC COMMENT 1. Citizens Comments (Limited t0 five (5J minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION - None M. PENDING ITEMS - None N. ADJOURNMENT The public is invited to attend and participate. Additional information is available through the City Clerk's office or by visiting our website at htW:1 / /wWW C II Sandra Modigh, CMC, City Clerk D7491211 Publish: 6/17/13